International Game Technology PLC (IGT) has been selected to lead the LottoItalia consortium in a successful bid for Italy’s highly prized Lotto license, with the concession slated to extend through November 2034. Following a detailed evaluation process, the Judging Commission concluded its review of technical and financial submissions and is set to recommend LottoItalia—comprising IGT, Allwyn, Arianna 2001, and Novomatic Italia—to Italy’s gaming authority, the Agenzia delle Dogane e dei Monopoli (ADM). A formal award announcement is anticipated within the next 35 days.

This outcome secures IGT’s dominant role in the Italian lottery market for an additional nine years, solidifying a relationship that dates back over three decades. Since taking over operations in 1993, IGT and its predecessors have continuously evolved the platform, utilizing technological advancements to modernize the Lotto and bolster player engagement.

Massive Investment Reflects Strategic Value

The winning bid from the IGT-led group includes a substantial €2.23 billion upfront license fee, which will be disbursed in three phases: €500 million and €300 million are scheduled for 2025, while the remaining balance is due by April 2026. This figure markedly surpasses the €770 million fee from the previous 2016 agreement and even exceeds analysts’ expectations, which projected bids ranging from €1.3 billion to €1.5 billion.

“The €2,230 million investments in upfront fees reflect the significant value of the new license and IGT is confident that the investment will enhance our revenue and profit potential,” said Vince Sadusky, IGT CEO, in a company press release. He emphasized that upcoming innovations set for rollout under the new contract will fuel growth in Lotto wagers and help propel IGT’s broader digital expansion across Italy.

Expanding Digital Ambitions in Italy

Beyond traditional lottery offerings, IGT has plans to leverage the momentum from its renewed license to expand into additional digital domains. According to Sadusky, the company is aiming for significant gains in iLottery sales, which will serve as a springboard for entry into the Italian B2C iCasino, sports betting, and other digital gaming sectors.

In line with the terms of the new agreement, IGT will retain operational leadership of the Lotto business, with Allwyn contributing a 32.5% share of the license fees and associated capital investment. The financial structure also includes a six percent concession fee collected from total wagers, alongside an eight percent digital distributor fee applied to online channels.

Allwyn CEO Robert Chvatal expressed enthusiasm about continuing the consortium’s collaboration: “We’re pleased that Allwyn’s positive contribution to the consortium, including our proven track record of modernizing and growing lotteries across Europe, will continue to support IGT’s exemplary stewardship of an important Italian national asset.”

Analysts View Outcome as a Strategic Win

Industry analysts welcomed the news, interpreting the development as a pivotal win for IGT. Barry Jonas, Managing Director at Truist Securities, noted that the renewal likely dispels prior investor concerns around the potential loss of what has long been IGT’s largest revenue-generating contract. According to Jonas, the concession accounts for more than a third of IGT’s reported EBITDA.

“Recall, IGT’s nine-year concession ends later this year and it was competing [with Flutter] for a new nine-year concession,” he commented. While acknowledging the new license fee exceeded projections, Jonas said the inclusion of digital revenue opportunities could significantly boost long-term returns.

IGT’s Executive Chair of the Board, Marco Sala, underscored the strategic significance of the renewal: “The Italian Lotto concession is one of the world’s most important lottery contracts. IGT and its predecessor companies have successfully managed the license for 30+ years through constant innovation and the introduction of cutting-edge technology. The award is very gratifying, and we are honored and excited to continue working with the ADM for nine more years.”