Italy approves new tender for scratch cards-report

Fri Jun 26, 2009 12:24pm EDT
 
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* Govt decides new tender for scratch card concession-report

* Regulator says sees more than one operator via tender

* Shares close down 4.79 percent

(Adds details, background, shares)

MILAN, June 26 (Reuters) - The Italian government has approved a new tender to operate scratch and win card betting when Lottomatica's (LTO.MI) concession expires May 31, 2010, Agipronews agency said on Friday.

The specialist news agency cited a government statement saying the ministers decided to hold a tender rather than renewing Lottomatica's concession "to ensure the widest competition, economic benefits and distribution channels" for scratch and win card gaming.

A spokesman for state monopoly AAMS said the tender would still requires parliamentary approval.

There will "certainly" be more than one operator chosen for the concession with new operators ready to bid, the AAMS spokesman said. "It is a game that interests a lot of operators."

Italy's private equity-owned Sisal and Greece's Intralot (INLr.AT) have expressed an interest in the Italian concession.

On Friday, Banca IMI analyst Lorenzo Re said Lottomatica stands a good chance of keeping the concession albeit with a 20 percent cut in the company's take and especially if Lottomatica remains linked up with Scientific Games.

Lottomatica currently holds a 63 percent stake in CLN consortium with Scientific Games (SGMS.O), which has 20 percent, and has built up annual scratch and win bets to 9.2 billion euros in 2008 from 400 million in 2004.

"It would be difficult for others to take part in the tender because no-one (else) has the capacity to print scratch and win cards. Scientific Games is the biggest printer and GTech

(Lottomatica unit) is the second biggest," he said.

A second Milan analyst said she sees Lottomatica winning.

Lottomatica shares ended the day down 4.79 percent at 14.72 euros.   Continued...

 

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