International Game Technology (IGT) has announced that the Judging Commission has finalized its analysis of the economic and technical offers in the bid for the Italy Lotto License and will suggest the consortium LottoItalia to the Agenzia delle Dogane e dei Monopoli (“ADM”) as the official lottery operator in the country.
The consortium, led by IGT and comprised of Allwyn, Arianna 2001 and Novomatic, is expected to obtain the official Lotto License to operate in Italy that will be valid until November 2034, building on a successful collaboration that sees IGT managing the license for 30+ years.
Moreover, the consortium bid was comprised of a €2,230 million upfront license fee that is payable in three instalments between the date of the award and April 2026.
As per IGT, the company is expected to make the first two instalments of €500 million and €300 million in 2025, while the balance is expected to be made in 2026.
From here, the term of the license is nine years, which means that IGT will secure business until November 2034. The consortium is expected to get a six percent concession rate from the total wager, plus an additional eight percent gross fee via the digital channel as a distributor fee.
When it comes to duties and obligations, Allwyn Entertainment is committed to the consortium and contributes a pro-rata share of license fees and capital expenditure, whereas IGT maintains operational control over the business.
Marco Sala, IGT Executive Chair of the Board, commented on the development and highlighted the successful management of the Italian lotto license for the past 30 years:
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 30+ years through constant innovation and the introduction of cutting-edge technology. The award is very gratifying, and we are honoured and excited to continue working with the ADM for nine more years
Vince Sadusky, Chief Executive Officer of IGT, expressed excitement with the license extension deal and hinted at plans to “significantly grow” the company’s iLottery sales.
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. The exciting innovation pipeline with fresh launches planned for the 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 businesses.
