A consortium led by International Game Technology (IGT) is expected to be awarded the next licence for the Italian Lotto concession.
The company announced Monday that the Judging Commission has completed its analysis and will propose LottoItalia as the winning bidder to the Agenzia delle Dogane e dei Monopoli (ADM).
Led by IGT, LottoItalia is a consortium comprising Allwyn, Arianna 2001 (an entity associated with the Federation of Italian Tobacconists) and Novomatic Italia, which currently runs the Lotto.
“The Italian Lotto concession is one of the world’s most important lottery contracts,” said IGT executive chair Marco Sala. “IGT and its predecessor companies have successfully managed the license for 30+ years through constant innovation and the introduction of cutting-edge technology.
“The award is very gratifying, and we are honored and excited to continue working with the ADM for nine more years.”
ADM is expected to make an official announcement of LottoItalia’s winning tender within the next 35 days, after LottoItalia edged out a rival bid from Flutter Entertainment’s Sisal, which operates Italy’s SuperEnalotto.
The consortium’s winning bid comprises a €2,230 million upfront license fee, payable in three instalments between the time of award and April 2026.
IGT currently expects the first two instalments of €500 million and €300 million to be made in 2025, with the balance made in 2026.
The nine-year license term runs until November 2034, with the concession rate collected from total wagers to be six per cent, alongside an additional eight per cent gross fee collected through the digital channel as a distributor fee.
“The €2,230 million investments in upfront fees reflect the significant value of the new license and IGT is confident that the investment will enhance our revenue and profit potential,” said IGT CEO Vince Sadusky. “The exciting innovation pipeline with fresh launches planned for commencement of the new license will drive Lotto wager growth.
“In addition, we plan to significantly grow our iLottery sales and leverage that momentum to expand into the Italian B2C iCasino, sports betting, and other digital gaming business.”
IGT will maintain operational control of the business, while Allwyn Entertainment will contribute a pro-rata 32.5 per cent share of license fees and capital expenditure.
The Italian Lotto and its associated games, 10eLotto and MillionDAY, generate annual ticket sales of over €8 billion, with around €15 billion paid in state contributions during the nine years of operation of the current concession.
“We’re thrilled to continue our strong partnership with IGT in Italy for another nine years,” said Allwyn CEO Robert Chvatal. “We’re pleased that Allwyn’s positive contribution to the consortium, including our proven track record of modernising and growing lotteries across Europe, will continue to support IGT’s exemplary stewardship of an important Italian national asset. We look forward to working together to grow the Italian Lotto, while developing innovative solutions to support responsible play.”
Shares in International Game Technology plc (NYSE:IGT) closed 1.62 per cent higher at $16.90 per share in New York Friday, and gained 3.55 per cent to $17.50 in pre-market.