The government yesterday signed an agreement with Maltco Lotteries Ltd granting the company a seven-year licence to operate lottery games in Malta.

The shareholders of Maltco Lotteries Ltd include Intralot, the Greek international lottery operator which owns 73 per cent, and two Maltese firms, the Players Group with 24 per cent, and Associated Supplies Ltd with three per cent.

The licence enables the company to operate all the games currently being run by the Lotto Department and other games for which Intralot have developed the know-how and software.

The contract was signed by Finance Minister John Dalli and Joseph Zammit Maempel, chairman of the Lotteries and Gaming Authority, while John Katakis, CEO of Maltco Lotteries Ltd, signed on behalf of the gaming company.

The gaming operation will be run on what is being termed a mixed licence model. This in effect means that Maltco will pass on Lm8 million to the government up front - made up of Lm5 million which was handed over yesterday while another Lm3 million will be passed on to the government once the firm starts operating in six months' time.

Apart from these sums, the government will receive an on-going percentage fee from the revenue of the games. The percentage the government receives will be specific for each game.

Maltco also paid the government a licence fee of Lm20,000.

After the signing of the agreement at the Intercontinental Hotel in St Julian's, Finance Minister John Dalli said the introduction of new games by this private operator should lead to the curbing of illicit gambling.

A parallel agreement has been reached with the Lotto Receivers Union and officials of Union Haddiema Maghqudin under which all the current lotto kiosks will be retained.

Dr Katakis said the company would be able to offer punters and agents speed and reliability through its on-line network equipped with cutting-edge technology systems and terminals.

Players will be able to take part up to five minutes before the draw and be paid prizes five minutes after the draw. Moreover, all current games will be upgraded and new games introduced by the end of the year.

Constantinos Antonopoulos, CEO of Intralot, who was present for the signing, said Malta was a profitable and safe place to invest, particularly now that the island was about to join the EU.

"Our presence in Malta will prove to be a wise decision," Mr Antonopoulos said.

He added that the staff at the Lotto Department, particularly those who have a good working relationship with lotto receivers, would be asked to join the company.

Mr Dalli said members of the staff who decided not to join the company would be absorbed in other government departments.

Maltco will have the chance to open 10 new lotto offices while the Lotto Receivers Union will be able to open seven new offices.

A lotto receiver will not be able to have more than three lotto offices. This condition is meant to ensure that no big businesses came into the market.

Maltco will also have the chance to revive the national lottery, discontinued after 55 years on June 29 last year. The Lotto Department had decided to stop running that lottery because it had become a loss-making exercise.

According to its website, Intralot, which is 12 years old, had a turnover of €320 million (Lm137 million) and a profit before tax of €90 million (Lm38.6 million) last year. The company has been listed in the Athens Stock Exchange since 1999.

Intralot is ranked third in revenues and second in profits, based on 2002 financial results, among lottery suppliers worldwide, and maintains a steady course towards the leading position in the global market.

The company has secured an important position in the European and South American markets while it is expanding its presence in North America and South East Asia.

Gaming applications include: numerical lotteries, TV lottery games, sports lotteries, fixed odds betting, Parimituel, horseracing, instant lotteries and video lottery games.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.