No exclusivity on land-based betting for Maltco, minister tells court

Finance Minister Tonio Fenech took the stand in court to testify in a case brought by Betco against the Lotteries and Gaming Authority, over claims that negotiations for the 10-year national lotteries concession were allegedly being extended to other games.

Fenech told the court that discussions currently ongoing with the incumbent lotteries operator were strictly for exclusivity on the national lottery, the lotto, and the Super Five lottery. All other land-based betting was included in these exclusivity rights.

Maltco's offer for the 10-year concession is of €39.1 million.

Judge Joseph Zammit McKeon will decide on Thursday whether to uphold Betco's application for a prohibitory injunction on talks between the LGA and Maltco.

Betco claimed that the length of talks on what was supposed to be a financial offer only, led them to surmise that negotiations were being extended to include exclusivity on other games.

Betco's legal representative Simon Schembri argued that when a letter to the Prime Minister expressing frustration at the lengthy negotiations went unacknowledged, Betco were led to suspect that discussions were going on beyond their original remit.

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.