Scientific Games joint venture signs Italian lottery contract extension

dwide gaming technology supplier, Scientific Games Corporation has today announced the creation of a new company Lotterie Nazionali S.r.l., which has today accepted a nine-year contract extension for the Italian Scratch and Win concession.

Lotterie Nazionali S.r.l. is a joint venture between Gratta e Vinci, the Italian Scratch and Win concession owned by Scientific Games, IGT subsidiary Lottomatica Holding, and Arianna 2001.

The launch follows approval being received from the Italian regulator Agenzia delle Dogane e dei Monopoli to extend the Italian Scratch & Win concession through to September 30, 2028, as provided for in bill 148/2017, a bill which was recently converted into law.

Lotterie Nazionali S.r.l. is required to pay an upfront fee of €800 million in three instalments. The first instalment of €50 million will be paid by December 15, 2017; payments of the second instalment of €300 million and third instalment of €450 million are expected to be made in April 2018 and October 2018, respectively.

The payments are expected to be funded by the joint venture partners and pro-rated based on their respective ownership percentage. All other conditions will be the same as the original concession.

Scientific Games owns a 20 percent interest in Lotterie Nazionali S.r.l and will continue to serve as the primary instant game provider for the term of the extension.