International Game Technology (IGT) has announced that a consortium led by its Lottomatica subsidiary has been provisionally awarded the concession for the Italian Lotto game by the country’s Agenzia delle Dogane e dei Monopoli regulatory body.
The concession, due to be finalised in the second quarter of this year, will run for a period of nine years.
The Lottomatica-led consortium bid €770 million ($870.2 million) in upfront concession payments, which are to be paid in three instalments from the award of the contract and April 2017.
IGT expects the first two instalments of €350 million and €250 million to be made before the end of the year.
In addition, the consortium will invest €130 million to upgrade technological infrastructure such as systems and terminals to support the Lotto game.
IGT expects approximately 25% of capital related to the infrastructure upgrades to occur in 2016 and the balance in 2017.
Members of the consortium will also contribute to both the upfront concession payments and capital investments on a pro rata basis.
Lottomatica’s rate will be set at 61.5%; IGH will pay 32.5%; Arianna 2001 4%; and Novomatic 2%.
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