berbank of Russia OJCS and Russkoe Lotto CJSC concluded a sales agreement of a share in Sportloto. The result of the deal will be the formation of a Joint Enterprise (JE) based on the existing company Sportloto in order to implement the project for holding the Winter Games Lotteries. Sberbank of Russia will acquire 74.99% of the company’s shares and 25.01% of the company’s shares will belong to Russkoe Loto.
Russkoe Loto has the possibility of increasing the company share in the future. The formation of the JE is planned to be completed by the end of 2010 and the first Winter Games Lotteries will be launched within a few months.
Previously, the company Sportloto concluded a government contract for holding 2 All-Russian state lottery draws in real-time mode and 10 instant All-Russian state lotteries in normal-time mode in order to support the organisation and staging of the XXII Olympic Winter Games and the XI Paralympic Winter Games of 2014 in the city of Sochi.
The license agreement for the right to use logos of the XXII Olympic Winter Games and the XI Paralympic Winter Games of 2014 in the city of Sochi, subject to conclusion between Sportloto and the Autonomous Non-commercial Organisation “Sochi 2014 Organising Committee”, is currently being agreed by the parties and is expected to be signed in the near future.
The combining of forces of Sberbank, the largest Russian bank and one of the largest instant lottery sales agents and Russkoe Loto, the lottery market expert, will help to create a leading lottery operator in Russia.
This project has a high level of social significance. Substantial targeted allocations from holding the lotteries will be earmarked for the budget and license payments for the right to use Olympic logos will be sent to the Sochi 2014 organising committee in order to finance Olympic projects. Furthermore, the growth in the lottery market will lead to an increase in budget revenue from taxes.
Sberbank of Russia as the General Partner of the XXII Olympic Winter Games of 2014 in Sochi is demonstrating interest for Olympic projects. In February 2010, Sberbank launched its first Sochi 2014 credit card. Looking forward, the bank plans to also launch other products as part of its Olympic sponsorship. As part of this strategy the Bank made a decision to participate in the project for holding All-Russian state lotteries in support of the Olympic and Paralympic Games. We hope that the Winter Games Lotteries will realise their social significance and also serve as an impulse for bringing the lottery market up to a higher quality standard. Our analysis demonstrates that the market is at its very early stage of development and we hope that with the help of this project we will be able to come closer to the leading countries and increase Russia’s share in the global lottery market,” said Senior Vice President of Sberbank, Denis Bugrov.
“We believe that bringing in the best specialists of the lottery industry to create the product and using the facilities of Sberbank of Russa for the distribution of lottery tickets through its network, will make this project very promising,” said Anatoly Yaroshenko, Board Member of Russkoe Loto, in regard to the formation of the JE. “We hope that with expert management the resources of participating companies will allow us to relive the success of “Sportloto 80”.