The deadline for bids on the Italian Lotto franchise is March 17, with IGT and Sisal confirmed as the two competitors for this highly sought-after contract.
This tender is expected to generate €4.3 billion (US$4.7 billion) in revenue over nine years, with a starting bid of €1 billion, although analysts believe the final cost could reach €1.5 billion.
IGT has been managing Lotto events since 1993 and is currently bidding in collaboration with Novomatic, the Italian Tobacco Federation (FIT), and Allwyn.
According to the Monopoly Authority's blue book, since taking over operations, Lotto has seen rapid growth, with its revenue increasing from €2.5 billion to €7.6 billion by 2022.
It is worth noting that from 2016 to 2022, IGT contributed €9.6 billion in tax revenue, averaging €1.3 billion per year.
IGT recently received its sixth consecutive certification for responsible gaming in Italy, proving its compliance with international player protection and gaming safety standards.
Sisal, part of the Flutter Group, is IGT's only competitor in this bid. Although Sisal has managed SuperEnalotto for 27 years, it has never operated Lotto historically.
However, the company has expanded its lottery operations internationally and has obtained licenses in Morocco and Turkey.
Following its acquisition by Flutter for €2 billion in 2022, Sisal has been focusing on digital transformation.
Earlier this month, Gambling Insider correctly reported that Flutter might join forces with Scientific Games to bid for the Italian lottery license.
Although Flutter initially did not comment, the latest confirmation of Sisal's participation with the support of Scientific Games aligns with our previous reporting expectations.
The Italian government will evaluate economic offers (60%) and technical and investment proposals (40%) to determine the winner. Scores will be awarded based on service quality, network coverage, and investment commitments.
The final decision will not be solely based on the highest bid—if the financial offers from both companies are similar, then the technical solutions and operational records will play a decisive role.
The tender results are expected to be announced within a month, and the regulatory body will assess the competitive bids before awarding this nine-year franchise.
