Lotterie Nazionali, a consortium which includes International Game Technology (IGT) and Scientific Games, has been granted a nine-year extension to continue operating the Italian instant ticket Scratch & Win concession.

Lotterie Nazionali is the exclusive operator of Italy’s Scratch & Win, the world’s largest instant ticket lottery, and is 64 per cent owned by IGT subsidiary Lottomatica Holding.

Scientific Games directly and indirectly owns 20 per cent of the joint venture and continues to serve as the primary instant game provider for the term of the extension.

The contract extension follows approval from Italian regulator Agenzia delle Dogane e dei  Monopoli, with the new deal set to run through September 30th 2028.

Lotterie Nazionali will be required to pay an upfront fee of €800m in three instalments, the first of which is due next week (December 15th) in the amount of €50m. Payment of the second and third instalments of €300m and €450m are expected to be made in April and October of next year respectively.

The payments are to be funded by the joint venture partners based on their respective stake in the business.

Shares in International Game Technology plc (NYQ:IGT) closed in New York Monday unchanged at $27.75 per share, while shares in Scientific Games Corporation (NSQ:SGMS) closed down 0.56 per cent at $52.85 per share, having set a new 52-week high of $54.95 earlier in the day.

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