Playtech and its consortium partner the Gauselmann Group are among the seven entities approved to submit a formal tender for the Greek government’s 33% stake in national gaming monopoly OPAP.
Greek privatisation agency HRADF, handling the fire sale of the Greek state’s assets aimed at supporting the country’s international bail-out, this week confirmed the applicants approved to participate in the next stage of the tender process. The Greek state aims to raise at least US$500m from selling its stake in OPAP, one of the largest gambling companies in Europe.
Playtech, which recently lost out on the contract to supply OPAP with online gambling products in a future regulated market to Lottomatica’s egaming supply division GTECH G2, is bidding as part of consortium in which it has a 41% stake and Gauselmann 55%. Greek lottery supplier Intralot, as well as private equity firm TPG Capital, joint owner of Italian poker network and egaming supplier Microgame, are also in the frame.
Other potential rivals include a range of private equity and investment groups: BC Partners, China’s Fosun International, Emma Delta Ltd, and Third Point LLC.
Athens-listed OPAP has exclusive rights to operate 35,000 video lottery terminals and 13 games of chance across Greece. Lobby groups the RGA and the EGBA last week issued a further complaint to the European Commission regarding Greece’s non-notification of regulations that they said would extend the monopoly of OPAP over online gambling in Greece.
The complaint followed Betfair exiting the market on Monday under threat of criminal sanctions and fines, stating that it did not see the value in a licence given the financial conditions and lack of regulatory clarity.
The RGA said in a statement accompanying its complaint that it was “concerned that the Greek Government has failed to begin licensing online gambling operators.” There are now four outstanding complaints lodged against OPAP’s monopoly, three with the EC, another with the Greek Council of State.
The Greek state’s aim of realising as much as €1.1bn for its stake in OPAP was dealt a blow in September when the company’s shares fell 18% in a single afternoon after it was announced OPAP would be paying 30% tax on gross revenue and 10% on winnings on all its operations from 2013.
While OPAP said this removed State Aid recovery risk going forward, in light of the complaints to the EC brought by a host of Europe’s leading operators, analysts projected this could wipe as much as €280m of its total profits next year, more than half of the €537.5m it generated last year.
Article written by Stephen Carter
