Intralot Acquires 21% Stake in China’s Melco

Greek lottery firm Intralot is set to acquire a 20.62% stake in Melco LottVentures Limited (MLV), a leading player in the Asian gaming market, for a total consideration of HK$305 million (€27.4 million). Intralot’s investment in MLV is a major step in its strategic plan to capture opportunities in the high growth market of the People’s Republic of China and other opportunities in Asia.

The acquisition via the company’s subsidiary, Intralot International, will see Intralot establish a strong partnership with Melco International Development (Melco), currently the largest shareholder of MLV, as well as Firich Enterprises which holds a notable participation.

Intralot, Melco and Firich intend to use MLV as the main vehicle for their lottery and gaming business in China. The People’s Republic of China has two lottery operators, China Sports Lottery and China Welfare Lottery which have a network of more than 150,000 points of sale. Their joint turnover reached US$14.6 billion in 2007, becoming one of the top ten lotteries worldwide in terms of total sales.

Lawrence Ho, Group Chairman and CEO of Melco said: “I am pleased that we have brought in Intralot, a leader in the international lottery industry, to become a major shareholder of our subsidiary MLV. This transaction not only reflects the tremendous hidden value of MLV, but also tightens the Melco Group’s cooperation with Intralot, hence creating synergetic effects for our lottery business. With the combined strengths of Melco, Intralot and Firich, I am confident that we will be able to make MLV one of the leading lottery-related service providers in the Pan Asia region.”

Intralot CEO, Constantinos Antonopoulos, said: “We are extremely pleased with this significant acquisition and strategic cooperation, as it further strengthens our considerable position in Asia, where we have presence in five Asia Pacific countries. We are confident that through this partnership, we will be successful in the highly promising Chinese market, one of our primary strategic goals in Asia Pacific.

“By pooling the experience, reputation and expertise of our new distinguished partners and utilising the existing business relationships that MLV has established with the two official lotteries of China, Intralot will be able to bring world class products and services into the lucrative Chinese gaming industry.”

Czech Lottery Operator Launches Online Casino Ahead of Possible Regulation

SAZKA, the oldest and largest lottery operator in the Czech Republic, has launched a play-for-fun online casino ahead of proposed changes to the country’s lottery law which it hopes will legalise and regulate online gambling.

With the proposal expected to be presented to parliament by the end of this year, SAZKA has recently focused heavily on its online offering in order to benefit from its position and brand recognition in the Czech marketplace, ahead of a potential influx of foreign competitors.

The new site will initially offer roulette, blackjack, texas hold’em and other poker games on a play-for-fun basis, with the ability to immediately switch to real-money gaming should the Czech government make the changes necessary to permit online gaming.

If no changes to the Czech lottery law are forthcoming, the site will continue to serve as a play-for-fun gaming portal. Earlier this year the company launched e-sazka.cz, a site allowing customers to prepare bets online which can then be placed at retail points of sale using a bet identifier or barcode.

Last year SAZKA reported total revenues of CZK10.4 billion (€422.48 million) with a net profit of CZK1.4 billion (€56.87 million). The company donated over CZK1 billion to social causes during the year, CZK285 million more than was required under Czech lottery law.