IGT's Consortium Proposed to Secure Italy Lotto License Until 2034

IGT's Proposal for Italy Lotto License

International Game Technology PLC (IGT), identified on the NYSE as IGT, has recently made headlines with its announcement regarding the Italy Lotto License. This decision follows the completion of the Judging Commission's rigorous analysis of bids related to this coveted license, which is set to span until November 2034. In this consortium, IGT is joined by partners Allwyn, Arianna 2001, and Novomatic Italia, collectively known as LottoItalia. The group has submitted a formidable offer to the Agenzia delle Dogane e dei Monopoli (ADM), which is anticipated to announce the award within 35 days.

Marco Sala, the Executive Chair of IGT's Board, expressed enthusiasm about this achievement, stating, "The Italian Lotto concession is one of the world's most important lottery contracts. IGT and its predecessor companies have successfully managed the license for over 30 years, demonstrating our commitment to innovation and technology in this sector. We are honored to extend our partnership with ADM for another nine years."

The consortium's proposal features an upfront investment of €2,230 million in license fees, planned to be paid in three installments leading up to April 2026. According to CEO Vince Sadusky, IGT is confident that this strategic investment will enhance the potential for revenue and profitability moving forward. He also highlighted an exciting pipeline of innovations and new launches aimed at stimulating growth in Lotto wagering.

Additionally, IGT intends to increase its iLottery sales, utilizing this momentum to branch out into the Italian B2C iCasino sector, sports betting, and other aspects of digital gaming. The nine-year license ensures that operations will continue without interruption until November 2034, with a concession rate of 6% collected from total wagers and an 8% gross fee collected digitally.

Operational control will remain with IGT throughout the license term, with Allwyn Entertainment playing a significant role in contributing towards the consortium's license fees and capital expenses.

Financial Implications

The financial structure reveals that out of the total €2,230 million upfront fee, the first two installments of €500 million and €300 million are slated for 2025, with the remaining balance expected to be settled in 2026. This substantial commitment emphasizes the value recognition of the Italy Lotto License and the consortium's readiness to invest heavily into its potential.

As part of its communication strategy, IGT has planned a conference call for May 20 at 8:00 AM ET, allowing stakeholders an opportunity to engage. Participants are encouraged to register for this call to receive specific dial-in details.

About IGT

International Game Technology PLC is a recognized leader in the gaming sector, renowned for providing entertaining and responsible gaming experiences across a multitude of channels, including Lotteries, Gaming Machines, Sports Betting, and Digital platforms. Backed by substantial investments in innovation, a wealth of engaging content, and insights into player behavior, IGT is positioned to deliver unparalleled gaming experiences that drive growth. The firm has a presence built on solid relationships with governments and regulators in over 100 jurisdictions worldwide, with a workforce of approximately 11,000 personnel. For more insights into IGT's initiatives, visit www.igt.com.

Looking Ahead

Moving forward, IGT's consortium stands prepared to leverage the Italy Lotto License as a growth driving force, harnessing the synergy of its partnerships and paving the way for transformative contributions to the gaming landscape in Italy. The anticipated innovations aim to rejuvenate the sector further, maintaining IGT's status as a trailblazer in the gaming industry. Stakeholders are keenly awaiting ADM's decision in the coming weeks, which will shape the landscape of Italy's lottery system for the next generation.