UPDATE 1-Italy court cancels scratch-and-win tender

* Rivals contested "onerous" tender conditions

* Shares down 1.82 percent

* Lottomatica will go on to run concession if state requests

(Writes through, adds detail)

MILAN, Nov 20 (Reuters) - An Italian court annulled a tender for scratch-and-win games for which Lottomatica SpA (LTO.MI) was the only bidder with its partner Scientific Games (SGMS.O).

"The court ... accepted (the) complaint which said the tender did not admit different contenders from the Lottmatica-led group," a judicial source said.

Lottomatica's unlisted rival Sisal had challenged terms of the tender, which it claimed were onerous.

A Lottomatica spokesman said the company had taken note of the court's decision, adding: "We are waiting to know what (the state agency for gaming) decides ... in terms of possible responses."

He added Lottomatica would continue to operate the concession if the state requested.

Shares in the company, Italy's biggest lottery operator, were down 1.8 percent to 14.03 euros by 1418 GMT as the overall Milan index .FTITLMS lost 1.0 percent. The tender for up to four concessions from June next year offered by the government required an 800 million euro ($1.2 billion) up-front fee from Lottomatica and partner Scientific Games (SGMS.O).

Lottomatica raised 350 million euros in October via an exchangeable bond to fund the new concession and to invest in lottery terminals and also plans to launch a bond for up to 750 million euros. [ID:nLB214881]

Sisal, Italy's Snai (SNAI.MI) and Greece's Intralot (INLr.AT) had all said they were put off from bidding in the tender because of the conditions, including the up-front fee. (Reporting by Claudia Cristoferi; Writing by Jo Winterbottom; Editing by David Holmes) ($1=.6734 Euro)