UPDATE 2-Lottomatica sole bidder in scratchcard tender

* Snai, Sisal, Intralot say will not participate

* Analysts say tender could be rerun

* Sisal won't confirm court appeal report

* Lottomatica shares rise as bid deadline passes

(Recasts, adds Lottomatica, Sisal, analysts comment)

MILAN, Oct 12 (Reuters) - Withdrawals by would-be bidders for Italy's 9 billion euros ($13.24 billion) a year scratchcard industry appeared to leave incumbent Lottomatica (LTO.MI) as the sole participant on Monday in a tender which may not go ahead.

"It will be interesting to see how the tender proceeds," one analyst said. "Obviously with only one company participating it takes away the idea of multi-concessions."

He said the government could decide to rerun the tender - for upto four scratchcard concessions starting next June - and extend Lottomatica's current single concession for one or two years.

Italy's Snai SpA (SNAI.MI), the unlisted Sisal, and Greece's Intralot (INLr.AT) all dropped out of the process on Monday after criticising the tender terms, including an 800 million euros upfront payment to be shared between winning concession holders.

A Lottomatica spokesman said the company had filed a proposal to take part in the tender but gave no financial details.

A second analyst said Lottomatica, whose consortium includes Scientific Games (SGMS.O), may have proposed paying only 400 million euros upfront, rendering the bid invalid and prompting a re-run with easier conditions.

Lottomatica shares closed up 2.27 percent to 15.78 euros, moving up in the afternoon after being flat earlier in the day. A spokesman for state monopoly AAMS, which regulates gaming, declined to comment on the number of offers. The offers are due to be opened on Thursday.

BIDDERS DROP OUT

Snai was the first to drop out on Monday. A company spokesman confirmed comments from its Chairman Maurizio Ughi to the Agipro news agency which specialises in the gaming sector.

"We have asked for an extension in order to get financial cover. It has not been granted. We are not participating in the tender," Ughi told Agipro.

Snai wanted to link up with the Italian post office and other operators in a consortium bid and a few more days would have been useful to convince main partner Poste Italiane to accept the Snai proposal, he said.

Snai shares closed down 2.17 percent at 3.49 euros.

Next to quit was Italy's private equity-owned Sisal SpA gaming company. It said it had been keen to participate with unnamed domestic and international partners but the terms were too onerous. However, Sisal made no comment on a Saturday Il Sole 24 Ore newspaper report it had filed a court appeal to annul the tender and its terms.

AAMS has not received any notification of the court case, its spokesman said. (Writing by Nigel Tutt; Editing by David Cowell) ($1 = 0.6795 euro)