IGT-backed consortium set to continue running Italian lotto

Casino software developer International Game Technology (IGT) will continue to run the Italian Lotto, after a group venture named LottoItalia was successful in extending their tenure. 

IGT, along with Allwyn, Arianna 2001 and Novamatic Italia are now expected to be confirmed as the operators of the Italian Lotto in the next 30 days by Agenzia delle Dogane e dei Monopoli (ADM). 

IGT beat out competition from a stand-alone bid from Novamatic and Irish gambling giant Flutter, which had expressed interest.

The consortium’s bid was comprised of a €2,230 million upfront license fee payable in three instalments between the time of award and April 2026. IGT currently expects the first two instalments of €500 million and €300 million to be made in 2025, with the balance made in 2026.

IGT Executive Chair of the Board Marco Sala said the announcement was very exciting and they were looking forward to working with the ADM for a further nine years, wiith the contract due to expire in 2034. 

“The Italian Lotto concession is one of the world’s most important lottery contracts. IGT and its predecessor companies have successfully managed the license for 30+ years through constant innovation and the introduction of cutting-edge technology,” he said.  

IGT CEO Vince Sadusky said the contract in Italy had the potential to increase revenues and innovations. 

“The €2,230 million investments in upfront fees reflect the significant value of the new license and IGT is confident that the investment will enhance our revenue and profit potential,” he said. 

“The exciting innovation pipeline with fresh launches planned for commencement of the new license will drive Lotto wager growth. In addition, we plan to significantly grow our iLottery sales and leverage that momentum to expand into the Italian B2C iCasino, sports betting, and other digital gaming business.”

The nine-year license term secures the business until November 2034. The concession rate collected from total wagers is six percent and an additional eight percent gross fee is collected through the digital channel as a distributor fee.

IGT maintains operational control of the business. Allwyn Entertainment is committed to the consortium and contributes a pro-rata share of license fees and capital expenditure.

IGT has a huge footprint in online gambling with this company regarded as one of the premier online slots and iGaming developers.

Allwyn Entertainment excited to be involved

Allwyn Etertainment plans to contribute a pro rata 32.5% share of both the €2,230 million licence fee and capital expenditure, investing to support the LottoItalia consortium for the next nine years, to November 2034. 

Allwyn expects that two license fee instalments of €500 million and €300 million will be made by the LottoItalia consortium in 2025, with the balance in 2026.

“We’re thrilled to continue our strong partnership with IGT in Italy for another nine years,” Allwyn CEO Robert Chvatal said. 

“We’re pleased that Allwyn’s positive contribution to the consortium, including our proven track record of modernising and growing lotteries across Europe, will continue to support IGT’s exemplary stewardship of an important Italian national asset.

“We look forward to working together to grow the Italian Lotto, while developing innovative solutions to support responsible play.”