IGT Poised to Secure Next Italian Lotto License

International Game Technology (IGT) has announced that it is positioned to retain one of the world’s most coveted lottery contracts, as the Italian Judging Commission has completed its evaluation of bids for the Italy Lotto License and is set to recommend IGT’s consortium for the concession.

LottoItalia Consortium Emerges as Preferred Bidder

According to IGT’s May 19 announcement, the Judging Commission has completed its analysis of technical and economic offers for the Italian Lotto license and will propose LottoItalia to the Agenzia delle Dogane e dei Monopoli (ADM) for the award. The ADM, Italy’s gambling regulatory authority, is expected to issue the formal award notice within the next 35 days.

The LottoItalia consortium consists of:

• IGT (lead partner)
• Allwn
• Arianna 2001
• Novomatic Italia

This recommendation represents a significant victory for IGT, which has operated Italy’s lottery system for over three decades, and a corresponding setback for Flutter Group, which had mounted a serious challenge for the license through its Sisal subsidiary.

Substantial Financial Commitment

IGT’s commitment to the Italian market is underscored by the substantial financial investment the company is prepared to make to secure the license:

• €2.23 billion ($2.5 billion) upfront license fee
• Payment schedule divided into three installments:
• €500 million in 2025 (first installment)
• €300 million in 2025 (second installment)
• Remaining balance in 2026

The nine-year license will extend IGT’s operation of Italy’s oldest lottery until November 2034, cementing the company’s long-standing presence in one of Europe’s most important gaming markets.

Strategic Importance of the Italian Market

The Italian Lotto concession is widely regarded as one of the world’s most valuable lottery contracts due to Italy’s position as a leading European gaming market. IGT’s successful bid to retain the license represents a critical component of the company’s global lottery strategy.

Vince Sadusky, IGT’s Chief Executive Officer, emphasized the strategic importance of the Italian market and outlined ambitious plans for growth:

“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.”

This statement suggests that IGT views the Lotto license not only as a valuable contract in itself but also as a strategic platform for broader expansion into Italy’s digital gaming ecosystem.

Competitive Bidding Process

The recommendation comes after a competitive bidding process that saw Flutter Group, through its Sisal subsidiary, mount a serious challenge to IGT’s long-standing dominance in the Italian lottery sector. Scientific Games had reportedly backed Flutter’s bid, making this a contest between some of the industry’s largest players.

Industry analysts had been closely watching the competition, as a Flutter victory would have represented a significant shift in Italy’s lottery landscape after decades of IGT operation. However, the Judging Commission’s recommendation suggests that IGT’s experience, technical capabilities, and financial offer ultimately proved more compelling.

Executive Response

IGT’s leadership expressed satisfaction with the Judging Commission’s recommendation. Marco Sala, IGT’s Executive Chairman, described the development as “very gratifying” and noted that the company is “honored and excited” to continue its partnership with the ADM for another nine years.

Sadusky’s comments highlighted the company’s confidence in the market’s potential to generate substantial returns on its multi-billion-euro investment, pointing to planned innovations and digital expansion as key growth drivers.

Next Steps and Implementation Timeline

While IGT’s announcement represents a significant milestone in the licensing process, several formal steps remain:

1. The ADM must issue the official award notice within 35 days
2. Contract finalization and signing will follow
3. IGT must make the first two installment payments totaling €800 million in 2025
4. The remaining balance of the license fee will be due in 2026

Once these steps are completed, IGT will be positioned to implement its planned innovations and expansion strategies in the Italian market through November 2034.

Industry Implications

The recommendation of IGT for the Italian Lotto license has several important implications for the broader gaming industry:

• Continuity in a Major Market: IGT’s retention of the license ensures stability in one of Europe’s largest lottery operations
• Digital Transformation Focus: IGT’s stated plans to expand iLottery and other digital gaming offerings signal an accelerating shift toward online channels
• Competitive Landscape: Flutter and Scientific Games must now reassess their Italian market strategies after this setback
• Consolidation of IGT’s Position: The license renewal strengthens IGT’s global lottery portfolio and market position

The substantial upfront fee also demonstrates the perceived value of lottery operations in mature markets, even as competition from other forms of gambling continues to intensify.