Lotterie Nazionali has accepted a nine-year contract extension for the Italian Scratch & Win concession in Italy.
Lotterie Nazionali is a joint venture which is the exclusive manager of Scratch & Win in Italy and is owned 64 per cent by IGT subsidiary Lottomatica Holding, and directly and indirectly owned 20 per cent by Scientific Games Corporation and 16 per cent by Arianna 2001.
The acceptance follows a communication received from the Italian regulator Agenzia delle Dogane e dei Monopoli regarding the extension of the Italian Scratch & Win concession through September 30, 2028, in application of the Law Decree n. 148/2017 recently converted into law.
Lotterie Nazionali S.r.l. is required to pay an upfront fee of €800m in three instalments. The first instalment of €50m will be paid by December 15, 2017; payments of the second instalment of €300m and third instalment of €450m are expected to be made in April 2018 and October 2018, respectively. The payments are expected to be funded by the joint venture partners and pro-rated based on their respective ownership percentage. All other conditions will be the same as the original concession.
Scientific Games owns a 20 per cent interest in Lotterie Nazionali S.r.l., the world’s largest instant ticket lottery, and continues to serve as the primary instant game provider for the term of the extension.