Betco gets temporary ‘freeze’ on privatisation talks with Maltco

A Maltese consortium that had expressed interest in taking over the national lottery games, has obtained a temporary freeze on negotiations between incumbents Maltco and the Lotteries and Gaming Authority.

Betco Holdings - the representatives of gaming conglomerate GTech - is claiming the right to be awarded the contract because preferred bidder Maltco was demanding from the LGA wider exclusivity on other games, apart from those included in the original tender: namely, the national lottery, Super Five, and the lotto.

The other games, which ostensibly include football pools and other sports betting, were not named by Betco.

Betco said that while the conditions in the call for tenders clearly spelt out the exclusivity rights, the fact that the discussions have not yet been concluded means the Privatisation Unit must move on to the second bidder.

Betco added that the Privatisation Unit had made a verbal approach to both bidders before the process opened last March, explaining that "the chosen bidder would be chosen on the financial offer, and that there were going to be no negotiations."

Lawyers Andrew Muscat and Simon Schembri for Betco Holdings argued that the request for a temporary warrant for prohibitory injunction was necessary to protect Betco's commercial interests, as Maltco was now demanding new rights "that go beyond the clarifications made by the same Privatisation Unit over the concession."

Should Maltco be granted permission to operate games which were not scheduled in the call for tenders, Betco would be practically excluded from operating any business on the island.

"It is not permissible that after the bidders made their offers on the basis of the call for tenders, those same conditions are changed, violating the principles of equality and transparency which are applicable to any tendering process."

The company called on the courts to declare the extended exclusivity on other games by Maltco, as "abusive and illegal" adding that should Betco Holdings had known of the extension of exclusivity rights on other games, it would have changed its offer, "but it is too late for Betco to amend its offer since the tendering process is now over."