INTRALOT: DYNAMIC EXPANSION INTO THE ITALIAN BETTING MARKET
Within the context of an international tender to expand the Italian betting market, INTRALOT, through a subsidiary company, was rendered as the most important international sports betting house in Italy and the second most important overall amongst the companies that participated based on the characteristics of the tender. INTRALOT is already the largest sports betting company globally, with a total handle of 4.5 billion euros annually.
Specifically, INTRALOT acquired 33% of the 1,278 licenses for the large exclusive sports betting points of sale (“POS”) that were finally granted, or a total of 416 licenses. Moreover, the Company obtained access to a new type of network for Italy by acquiring 164 licenses for non-exclusive POS (corners or shop-in-shops), which according to the characteristics of the tender will have lower turnover compared to the exclusive POS. In addition, 9 licenses for exclusive horse race betting POS were acquired, a new product for the Company. Finally, licenses to distribute sports and horse racing through the Internet were also obtained. The duration of all licenses is 9 years and the total investment is estimated at 65 million euros.
The distribution of the licenses covers the whole country both geographically and population-wise, with special emphasis in areas which are considered to be significant potential markets.
For this project INTRALOT will invest in the country modern technology and know-how both on a retail and on Internet basis, which has proven to be very competitive and is expected to boost the games’ turnover. The project will be undertaken by INTRALOT’s subsidiary, which has been established for this purpose, in which INTRALOT participates with an 85% stake, while the remaining 15% is owned by an Italian company which already operates in the sports and horse race betting markets.
Commenting, Mr. Constantinos Antronopoulos, CEO of the INTRALOT Group said: “The expansion of the Italian betting market was very successful as this move will bring multiple benefits, such as significant revenues to the Italian State, healthy competition through official betting organizers, containment of illegal betting and an increase of jobs in the country. This significant achievement and the benefits that are expected to arise will inevitably attract the interest of other countries, both in Europe and elsewhere, towards this direction.”
The Italian sports betting market has a turnover of 2 billion euros, which is handled through a network of about 700 exclusive shops that exist today. Sports betting per capita spending is only 36 euros per annum in Italy, compared to 210 euros per capita of a developed market like Greece. Moreover, Italy has a ratio of 1 POS per 80,000 inhabitants at present, compared to Greece where this ratio is 1 POS per 2,000 inhabitants. The expansion of the POS network following the expansion of the market and the expected decrease of the taxation on the game are expected to contribute to the significant increase of the Italian betting market.
INTRALOT, a public company listed on the ASE, is a leading supplier of integrated gaming and transaction processing systems, innovative game content and value added services to state-licensed gaming organizations worldwide. Its broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations, its experience in sports games and its leading-edge technology give INTRALOT a competitive advantage which contributes directly to customers’ efficiency, profitability and growth. INTRALOT’s footprint straddles five continents with 37 subsidiaries, 8 business offices, over 3,600 people and revenues of € 523 million for 2005 and €700(?) for 2006.