INTRALOT ENTERS THE RUSSIAN BETTING MARKET - FURTHER STRENGTHENING ITS POSITION IN RUSSIA
INTRALOT Group announces the acquisition of a 33% stake in Kelicom, through its subsidiary INTRALOT Holdings International Ltd. Through this acquisition INTRALOT gains access to the strategic stake that the company holds in FAVORIT BOOKMAKERS’ OFFICE LLC (Favorit), one of the leading sports betting operators in Russia as well as to its extensive customer data base. Kelicom is Favorit’s majority shareholder holding a stake of 74.9%. INTRALOT has the option of increasing its shareholding in Kelicom to 100% and gaining control of Favorit. The acquisition is subject to the relative approvals from competent authorities, which are customary for such transactions.
Founded in December 2002, Favorit is one of the well-established betting companies in Russia and holds a five(5)-year license to run sports betting activities in the country. The license is granted by the Federal Tax Service and includes scheduled renewals. Favorit succeeded in extending its license last year following the introduction of stricter federal regulations in the betting business in Russia. It thus became one of only a handful of registered players on the country's betting market which is estimated to have a potential of over US$2 billion.
Currently, Favorit is active in 50 different regions of the Russian Federation and is planning to expand its network within the next months by strengthening its positions in existing regions, as well as entering new ones.
Mr. Constantinos Antonopoulos, INTRALOT Group CEO, stated: “Through this acquisition our already established presence in Russia will become even stronger. INTRALOT is now moving ahead and entering the emerging and highly promising Russian betting market under a new, tightly regulated regime that promotes competition among credible license holders one of which is Favorit.”
INTRALOT, a public listed company, is the leading supplier of integrated gaming and transaction processing systems, innovative game content and sports betting management, to state-licensed gaming organizations worldwide. It’s broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations and its leading-edge technology, give INTRALOT a competitive advantage which contributes directly to customers’ efficiency, profitability and growth. With presence in morethan 50 countries, with approximately 5.000 people and revenues of €903.6 million for 2009, INTRALOT has established its presence on all 5 continents.