Lottomatica to acquire leading Italian online betting firm

Toto Carovigno S.p.A., owner of the Totosì brand, is the leading Italian online betting company concessionaire for sports and horse race betting and the first operator to have offered the acceptance of sports bets both online and via telephone. Toto Carovigno, with 250,000 registered game accounts and 90,000 active customers, has 5% market share in 2007 of the total sports betting market and 17% of the online gaming segment.

Toto Carovigno S.p.A is the owner of 3 “historical” concessions (one horse race betting concession and two sports betting concessions) and of 16 point of sale activation rights (12 corners and 1 shop for the collection of sports betting, 2 corner and 1 shops for the collection of horse race betting) mainly located in high-potential venues in Southern Italy. Total wagers registered in 2007 totaled approximately 150 million euros.

The preliminary agreement signed by Lottomatica Scommesse requires due diligence as well as the possibility to terminate the agreement subject to the reimbursement of the 4.5 million euros deposit paid upon signing of the contract. If the firm chooses to complete the operation, the signing of the final agreement and the transfer of ownership of Toto Caravigno S.p.A. and the four corporate branches is subordinate to the approval of Antitrust. In order to transfer the horse race betting concession to Lottomatica must receive authorization from both AAMS and Ministry of Agriculture and Forestry.

The acquisition of Toto Carovigno S.p.A, financed by funds available, is an important step for the growth of Lottomatica in the sports betting sector. Lottomatica entered into the fast-growing sector in 2007 through its Better brand and acquired the second place with 15% of the market share in a few months.