Scientific Games Announces its Consortium Selected for the Greek State Lotteries' Concession
Wednesday, December 12, 2012 at 04:28PM NEW YORK, Dec. 12, 2012 -- Scientific Games Corporation (Nasdaq: SGMS) today announced that the Hellenic Republic Asset Development Fund declared the consortium in which Scientific Games Global Gaming S.a.R.l, a subsidiary of Scientific Games, is a participant, as the provisional successful bidder in the tender process for a 12-year concession for the exclusive rights to the production, operation, circulation, promotion and management of the Hellenic Lotteries in Greece.
The consortium is principally comprised of OPAP S.A. (ATH: OPAP), Scientific Games and Intralot (ATH: INLOT).
The concession will cover current and future instant lotteries which are conducted using physical tickets, as well as internet sales of physical tickets. Operations under the new concession are subject to various regulatory approvals, including Greek parliamentary approval.
Scientific Games will have a 16.5% equity interest in the consortium and will be responsible for the instant ticket marketing function, with a supply agreement providing for all instant ticket production and game design services. The consortium will pay an upfront payment of €190 million and will be responsible for a monthly fee equal to a percentage of the gross gaming revenues.
"Scientific Games is proud to be selected as part of the consortium that will manage the Greek government's traditional lotteries and re-launch the instant ticket product. We view Greece as an important jurisdiction and are confident that implementing the best practices we have successfully used with other lotteries around the world will result in significant incremental revenue for the Greek government. With some of the world's leading lottery companies working together in this initiative, our consortium is well positioned to help the Greek government succeed in its objectives of raising revenue for the Greek state while giving Greeks access to world class lottery products," said A. Lorne Weil, Chairman and Chief Executive Officer of Scientific Games.
In 2011, OPAP generated €4.4 billion in total lottery retail sales in Greece, representing approximately €386 in per capita sales, making it the third largest lottery in the world in terms of per capita sales based on data provided by La Fleur's. The instant ticket lottery has been inactive since 2003.