International Game Technology (IGT) has won the tender to continue operating the Italian lottery until November 2034. This victory extends a relationship of more than 30 years between IGT and the Italian national lottery.
A bid worth €2.23 billion
The LottoItalia consortium, led by IGT and including Allwyn, Arianna 2001 and Novomatic Italia, has submitted a bid of €2.23 billion to renew the contract. This amount will be paid in three instalments: two payments of €500 million and €300 million in 2025, followed by the remaining balance by April 2026.
Fierce competition
IGT faced intense competition from Novomatic and potentially Flutter Entertainment. Despite this, IGT’s experience and commitment to innovation enabled the company to retain this lucrative contract.
IGT CEO Vince Sadusky said the company had planned a $500 million investment in the Italian lottery as part of a wider €1 billion term loan. He stressed that this investment reflects the significant value of the new contract and should improve the company’s long-term revenues and profitability.
Digital expansion
IGT also plans to grow its online lottery (iLottery) sales and use this momentum to expand into B2C online casino, sports betting and other digital gambling activities in Italy.
Under the terms of the new contract, the operator will receive a 6% commission on total bets, as well as an 8% gross fee collected via digital channels for distribution.
Partnership with Allwyn
Consortium partner Allwyn will contribute 32.5% of the licence fee and capital expenditure. Allwyn CEO Robert Chvatal said he was delighted to continue the partnership with IGT in Italy for a further nine years. He said:
‘We’re pleased that Allwyn’s positive contribution to the consortium, including our proven track record of modernising and growing lotteries across Europe, will continue to support IGT’s exemplary stewardship of an important Italian national asset. We look forward to working together to grow the Italian Lotto, while developing innovative solutions to support responsible play.’
A strategic success
Marco Sala, IGT’s executive chairman, described the Italian lottery concession as one of the most important lottery contracts in the world.
He stated:
‘IGT and its predecessor companies have successfully managed the license for 30+ years through constant innovation and the introduction of cutting-edge technology.’