IGT's Lottomatica enters into consortium to bid for Italian Lotto concession

The consortium members bring the strategic and operational expertise and financial resources to deliver an unparalleled solution to provide for the continued success of the Lotto game in Italy.

Under the terms of the consortium agreement, Lottomatica will serve as the principal operating partner to fulfill the requirements of the Lotto license. The consortium submitted its bid on March 16, 2016, in accordance with the submission deadline for the Lotto tender.

If the consortium is awarded the Lotto concession, a joint venture company will be established. Lottomatica will have 61.5% equity ownership and IGH, Arianna 2001, and Novomatic Italia will have 32.5%, 4%, and 2% share, respectively. Lottomatica will appoint a majority of the joint venture board and will enter into a contract with the joint venture to provide technology products and services for the Lotto.

If the parties are unable to reach agreement upon certain specified matters or if the joint venture's cash flow generated in the first year of operation falls below a pre-determined level, IGH may put its entire joint venture interest to Lottomatica and, in certain cases, Lottomatica may exercise a call option to acquire IGH's entire joint venture interest.