Updated | Maltco outbids Lottomatica by €2.9m for lotteries concession

GTech’s ‘Lottomatica’ has lost its bid to oust Greek rivals Intralot’s local subsidiary ‘Maltco Lotteries’ which has provided lotteries in the country since 2004.

22 March 2012, 12:00am
by Karl Stagno-Navarra

2 min read

Adds statement by government

Maltco Lotteries will keep their concession for the next ten years after pledging a successful bid for the lucrative market.

Maltco Lotteries, had a market presence in Malta since 2004, having the exclusive exploitation of government owned gambling monopoly in the country until the end of this year, having invested in the country a total capital of €39 million.

Intralot increased its offer to the Maltese government, in order to renew the contract for the state lottery, however, GTech, representing Lottomatica, submitted a bid for the same tender. Noted that the relevant tender stopped on December 12, following a complaint filed by Maltco against the Maltese Government decision to open an international tender for the state lottery management, a complaint, however, was rejected one week later by the courts, resulting in a swordfight amid the two eternal rivals for the state lottery.

The Greek group controls a majority stake in Maltco (namely 73%), while Maltese companies participate in its share capital such as Players Group and ASL.

The Finance Ministry said the Call for Tenders was made in October 24 of last year.

Both Maltaco - who has been running the National Lottery since 2004 - and GTech-BETCO Consortium submitted their tenders on January 5, 2012.

The ministry said both bids satisfied the technical and financial requirements laid down in the Call for Tender.

"The bidders have also satisfied the due diligence criteria laid down in the Call for Tender and necessary to satisfy the Fitness and Propriety requirements of the Lotteries and Gaming Authority to issue the operator licence," the ministry said.

"On this basis both bidders qualified to move on to the third stage of the process that is the opening of their financial offers."

The offers were opened today in the presence of a Notary Public and representatives of both bidders.

The highest bid of €39,100,000 was offered by Maltco Lotteries Limited. The second bidder offered €36,205,505.

More from Karl Stagno-Navarra

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As long as this charade is to continue the procedure should be amended so that once the bids are opened, then an auction should be held for all those who posted their bid so that the Government will get the best offer and not simply accept the highest offer. I suggest that a new PL government changes everything, rescinds the contract and take back control to a Government Department.

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Whenever a new game was introduced under PL the Church came out against it because it meant less money in peoples pockets. However, under PN everything goes for the Church, including giving one of the assets that never made a loss to foreigners and inventing all sorts of new games, opening up of gaming shops, increasing the opening hours of lotto receivers including on public holidays. Hypocrisy? You choice.

Luke Camilleri •

The family that plays together , stays together _ George Bonello Dupuis! ------------------------------ Stays together , poorer and not necesssarily happier!