Operator News
Greece – Weil delighted with Hellenic Republic’s Scientific approach
By Phil - 1 August 2013
The Hellenic Republic Asset Development Fund has signed a 12-year concession agreement with the consortium in which Scientific Games Global Gaming S.a.R.l, a subsidiary of Scientific Games, is a participant, for the exclusive rights to the production, operation, circulation, promotion and management of the Greek State Lotteries.
The consortium, incorporated as Hellenic Lotteries S.A., is principally comprised of Scientific Games, and subsidiaries of OPAP S.A. and Intralot S.A.
The concession will cover current and future instant and passive ticket lotteries which are conducted using physical tickets that will be sold through traditional retail outlets, street vendors and through the internet. Operations under the new concession are subject to various regulatory approvals, including Greek parliamentary approval.
Scientific Games has a 16.5 per cent equity interest in the consortium and will have exclusive responsibility for instant ticket design and production. Scientific Games will also be responsible for advisory services applicable to all lottery tickets included in the concession. The consortium will pay an upfront payment of €190m and will be responsible for a monthly fee equal to a percentage of gross gaming revenues.
“We are excited to have a signed concession agreement and to being one step closer to re-launching the instant ticket product in Greece. This consortium provides significant resources in terms of capital, talent and entertaining products to help generate significant incremental revenue for the Greek government and brings world class lottery products to the people of Greece,” said A. Lorne Weil, Chairman and Chief Executive Officer of Scientific Games.
In 2011, OPAP generated €4.4bn 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.
