Operator News
Romania – Loteria Romana signs VLT deal with Novomatic
By Phil - 28 October 2013
Following a selection procedure involving five of the leading international VLT suppliers, Loteria Romana has selected Novomatic to supply 10,000 state-of-the-art Video Lottery Terminals (VLTs).
The deal will also include the relevant Video Lottery System including a jackpot system, maintenance services, spare parts, logistics etc. nationwide at locations provided by Loteria Romana. The deal is for a 15 year licence. The agreement signed in Bucharest determines that the joint revenues after joint expenses will be shared between the partners on a 50/50 basis. The agreement also says that the Video Lottery System is to be implemented within a specified time schedule and that the installation of the VLTs is to be in accordance with the rollout plan and will be secured by a bank guarantee in the amount of €20m. In addition, fair and mutual termination provisions have been agreed upon. Also under the agreement, Loteria Romana is granted a proportionate minimum revenue guarantee in the amount of €75m.
A company has been established in Romania by Novomatic to manage the project and the first VLTs incorporating Novomatic’s most successful games together with the relevant system will go into operation starting on December 1 2013.
Adrian Manolache, CEO of Loteria Romana, said: “This agreement with Novomatic is a unique opportunity to put our Video Lottery activities on a new and fair basis under a long-term perspective in the future. Loteria Romana will not need to contribute any additional investments to this partnership and we cooperate with a very experienced international partner in this sector. In addition, through an audit Loteria Romana will have the contractual possibility to verify in particular the Video Lottery System and the win determination at any time in a transparent and substantiated way. This ensures us the economically best possible operation of Video Lottery Terminals in the future. We really appreciate this possibility to work with Novomatic.”
Ryszard Presch, Chief Operating Officer of Novomatic AG and Managing Director of Austrian Gaming Industries GmbH (AGI), added: “For our group of companies this agreement is a very important step in the expansion of our market position in the VLT business. This long-term agreement is an endorsement of our competence in this sector and highlights once again our leading role in the international VLT market. I would like to thank our partner, Loteria Romana, for their trust and I look forward to working together with Loteria Romana. I am confident that this cooperation will be successful for both sides.”
