The Greek state lotteries have found their ruler

Many investment hawks’ eyes have been scrutinizing Greece and its circumstances-imposed privatization of variegated assets. Now, there is one less jewel to strive for. As expected, the tendering procedure for the Greek state lotteries’ 12-year operating license was won by a consortium composed of OPAP Investment, Lottomatica Giochi e Partecipazioni, Intralot Lotteries, and Scientific Games Global Gaming. Today, the Greek privatization fund HRADF approved their second increased offer, amounting to €190m.

The amount is far from final, though; it is only an entry ticket, equal to the next three years’ expected profit. The consortium is to pay the Greek government 30% of its gross turnover from the lotteries, plus other payments, e.g., for special New-Year sweepstakes, or lump-sum contributions to a charity fund. HRADF expects the government to collect up to €1.5bn over the 12-year license period.

In 2010, the Greek state lotteries generated €80m net profit, but the 2011 and 2012 estimates are about €20m lower. The consortium certainly has an uphill struggle in front of them.

Nevertheless, their victory is good news for Czech investor Jiří Šmejc, whose Cyprus-based Emma Delta fund is among the favourites for the 1/3rd share of OPAP, the betting and lottery company earmarked for privatization.

Translated by Lingvus

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