Czech gambling conglomerate SAZKA Group has clarified its intentions to secure ‘full control’ of Athens-listed OPAP SA, Greece’s largest lottery and sports betting operator.
On Monday, the Athens Securities Exchange temporarily suspended OPAP’s listing, announcing that the gambling group anticipated a ‘major imminent corporate event’.
This morning, Reuters disclosed that SAZKA governance had submitted a formal Athens Exchange filing detailing its intentions to acquire OPAP outright.
At present SAZKA maintains a 33% holding in OPAP, which is secured through its Emma Delta subsidiary and co-owned with Greek shipping tycoon Georgios Melissanidis.
The Czech conglomerate, which operates one of European gambling’s biggest investment portfolios, secured its original holding in OPAP during 2013, as the Greek government was forced to privatise a number of state-owned enterprises, required under the terms of Greece’s IMF bailout.
In its filing, SAZKA governance has propositioned an opening ‘€9.12 per share’ offer to OPAP investors, significantly below the speculated ‘40% premium of €14-per-share’ offer reported on Monday by Greek business news sources.
Having restructured its ownership, SAZKA is controlled by Czech billionaire Karel Komarek Jr KKCG fund which is reported to aggressively expanding its holdings in established European gambling enterprises.
Having received SAZKA confirmation offer, The Athens Exchange will resume trading on OPAP shares today.
Showing posts with label OPAP. Show all posts
Showing posts with label OPAP. Show all posts
July 09, 2019
December 01, 2016
Cyprus to review OPAP lottery deal and start to ban online gambling sites
The Cyprus government now well into gambling following the decision to license the first casino resort earlier this year have now followed this by readying itself for the commencement of online sports betting with the National Betting Authority (EAS) preparing to block some 2,500 online gambling sites offering services to local players.
At this week’s House finance committee’s meeting the EAS said they were in the process of blocking those sites that were not operating in the guidelines of the 2012 governments legislation towards online poker, online casinos and sports betting, which are all currently banned.
In October this year the EAS started accepting license applications from online operators towards offering online sports betting and wanted to clear the operators who were not currently in the process and offering online gambling to Cypriots.
Also at the meeting the committee discussed the current agreement with Greek lottery firm OPAP which MPs said was costing them €1 million a month in lost tax revenues. OPAP and the Cypriot government signed an agreement in 2003 with OPAP paying €10 million a year in taxes to offer lottery services to players. That agreement seems to be coming to an end and the government is currently preparing new legislation that will offer the lottery service to a a lottery operator who will have to pay 24% tax on gross profits for a specific period of time and under specific conditions.
At this week’s House finance committee’s meeting the EAS said they were in the process of blocking those sites that were not operating in the guidelines of the 2012 governments legislation towards online poker, online casinos and sports betting, which are all currently banned.
In October this year the EAS started accepting license applications from online operators towards offering online sports betting and wanted to clear the operators who were not currently in the process and offering online gambling to Cypriots.
Also at the meeting the committee discussed the current agreement with Greek lottery firm OPAP which MPs said was costing them €1 million a month in lost tax revenues. OPAP and the Cypriot government signed an agreement in 2003 with OPAP paying €10 million a year in taxes to offer lottery services to players. That agreement seems to be coming to an end and the government is currently preparing new legislation that will offer the lottery service to a a lottery operator who will have to pay 24% tax on gross profits for a specific period of time and under specific conditions.
August 27, 2014
OPAP revenue up on sports betting and scratch cards, profit down on old tax bill
Greek monopoly betting operator OPAP saw earnings rise 50% in the second quarter thanks to aggressive cost-cutting measures and its new online sportsbook and scratch-card operations. Revenue in the three months ending June 30 rose 8% to €947.3m, while earnings rose to €68.6m, nearly €7m above analysts’ forecasts.
The first half of the 2014 FIFA World Cup played a significant role in boosting revenue for OPAP’s Stihima sports betting game. OPAP’s new GTECH-powered online sportsbook launched just two weeks before the football tournament kicked off and the online access is credited with helping drive a 31.5% year-on-year sales increase to €363m. Existing numerical games revenue fell 5.1% to €549m thanks to a decline in Kino revenue while the new Hellenic Lotteries vertical contributed €20m in just two months of operation, three-quarters of which came via scratch tickets.
Despite the good showing, OPAP’s net profit fell 44.5% to €15.7m. Profit would have risen 56% to €44.2m but the company announced on Tuesday that it had been hit with a €21.6m retroactive tax bill. The charges date back to fiscal 2010, following a recalculation of the former state asset’s tax assessment. OPAP paid €8m in incremental taxes that year, while the state now says the company’s actual obligation was €29.6m. OPAP says it has “strong arguments” for lodging an appeal to have at least 50% of the outstanding tax obligation refunded.
In keeping with its new life as a privately held firm with a sharp eye on the bottom line, OPAP embarked on a dramatic reducing program this summer. In July, the firm’s new owners launched a voluntary redundancy program at its retail subsidiary OPAP Services that targeted over 600 staffers – three-quarters of the division’s total payroll. The cuts came on top of 140 positions OPAP eliminated earlier this year, the effects of which boosted administrative expenses 16.2% to €8.6m during the quarter.
The first half of the 2014 FIFA World Cup played a significant role in boosting revenue for OPAP’s Stihima sports betting game. OPAP’s new GTECH-powered online sportsbook launched just two weeks before the football tournament kicked off and the online access is credited with helping drive a 31.5% year-on-year sales increase to €363m. Existing numerical games revenue fell 5.1% to €549m thanks to a decline in Kino revenue while the new Hellenic Lotteries vertical contributed €20m in just two months of operation, three-quarters of which came via scratch tickets.
Despite the good showing, OPAP’s net profit fell 44.5% to €15.7m. Profit would have risen 56% to €44.2m but the company announced on Tuesday that it had been hit with a €21.6m retroactive tax bill. The charges date back to fiscal 2010, following a recalculation of the former state asset’s tax assessment. OPAP paid €8m in incremental taxes that year, while the state now says the company’s actual obligation was €29.6m. OPAP says it has “strong arguments” for lodging an appeal to have at least 50% of the outstanding tax obligation refunded.
In keeping with its new life as a privately held firm with a sharp eye on the bottom line, OPAP embarked on a dramatic reducing program this summer. In July, the firm’s new owners launched a voluntary redundancy program at its retail subsidiary OPAP Services that targeted over 600 staffers – three-quarters of the division’s total payroll. The cuts came on top of 140 positions OPAP eliminated earlier this year, the effects of which boosted administrative expenses 16.2% to €8.6m during the quarter.
April 03, 2014
OPAP announces profit plunge
Greek gambling firm OPAP announced a collapse in net profits of 72.1 percent, to €141.1m in 2013, which it attributed to the introduction of a new 30 percent gross gaming revenue tax in the country. Full-year revenue fell 6.6 percent from €4bn in 2012 to €3.7bn in the last 12 months, while gross gaming revenue dropped 6.3 percent to €1.2bn.
Rounding out a disastrous year, EBITDA fell 67.1 percent, from €673.8m to €221.7m in 2013.
OPAP's fourth fourth-quarter performance was equally as bleak, with net profit reaching just €29.4m, 77.6 percent lower than the €133.8m achieved in the corresponding period last year.
Kamil Ziegler, chairman and chief executive officer of OPAP, said that despite the disappointing overall performance, the firm’s results in Q4 were “encouraging” and is keen to push for further improvements in 2014.
“Within an overall difficult year for the Greek economy, OPAP’s financial results of the fourth quarter mark an encouraging trend,” Ziegler said.
“The addition of extra features in a variety of products in our portfolio, along with the stabilisation of consumer spending, led to an increase of revenues year-on-year, which is a positive indication for 2014.
“It is important to note that 2013 was the first year that a 30% gross gaming revenue tax was applied, which in terms of OPAP’s numbers translates into a yield of € 345 million for the Greek state.
“We remain focused on the improvement of OPAP’s operational efficiency as well as on the modernisation of our product portfolio, towards the benefit of all our stakeholders: customers, agents, shareholders and the Greek state and society as a whole.”
Rounding out a disastrous year, EBITDA fell 67.1 percent, from €673.8m to €221.7m in 2013.
OPAP's fourth fourth-quarter performance was equally as bleak, with net profit reaching just €29.4m, 77.6 percent lower than the €133.8m achieved in the corresponding period last year.
Kamil Ziegler, chairman and chief executive officer of OPAP, said that despite the disappointing overall performance, the firm’s results in Q4 were “encouraging” and is keen to push for further improvements in 2014.
“Within an overall difficult year for the Greek economy, OPAP’s financial results of the fourth quarter mark an encouraging trend,” Ziegler said.
“The addition of extra features in a variety of products in our portfolio, along with the stabilisation of consumer spending, led to an increase of revenues year-on-year, which is a positive indication for 2014.
“It is important to note that 2013 was the first year that a 30% gross gaming revenue tax was applied, which in terms of OPAP’s numbers translates into a yield of € 345 million for the Greek state.
“We remain focused on the improvement of OPAP’s operational efficiency as well as on the modernisation of our product portfolio, towards the benefit of all our stakeholders: customers, agents, shareholders and the Greek state and society as a whole.”
March 20, 2014
OPAP deal Validates GTECH online credentials
GTECH Interactive CEO Walter Bugno has shown his full support for the recently agreed software supply partnership with Greek licensed gambling operator – OPAP, stating it represents a major coup for GTECH Interactive and that it validates the company’s online capabilities.
OPAP selected GTECH Interactive as its supplier of igaming inventory, in a closed tender that saw 888 Holdingss, Playtech and Openbet bid for the suppliers contract . Furthermore GTECH Interactive announced that it would supply OPAP with a new online sportsbook, which will be launched at the end of the year.
Walter Bugno believes that the partnership represents a validation of GTECH’s online gambling services. OPAP holds exclusive rights to offer online gambling services in Greece. In 2012 the ex-state owned betting operator renewed terms with the Greek Government that would see the operator maintain its betting monopoly in the region until 2020.
Bugno commented in a corporate statement ”This decision is a validation of the successful ongoing performance and cross-channel capabilities of GTECH’s online portfolio, which we are providing to World Lottery Association customers, including the Ontario Lottery and Gaming Corporation, Norsk Tipping in Norway, and Veikkaus in Finland,”
OPAP are set to integrate GTECH’s player management system and sports betting services. Bugno further added “This will fulfill OPAP’s online betting strategy by reliably driving program growth as technology and player preferences evolve. In addition, the open architecture of the Player Account Management system will enable OPAP to implement its preferred strategy for a single view of the player through the creation of a single player account across multiple games and gaming channels.”
OPAP had operated as the state owned igaming operator previously using GTECH software, in 2013 the Greek Government would sell all shares in its asset to the EMMA DELTA consortium for €625 million. The consortium consists of Lottomatica (owner of GTECH), Czech investor Jiri Smejc and Greek shipbuilding giant the Melissanidis Group.
The OPAP represents good news for the GTECH Corporation, last week it announced that it had seen a fall in net revenue of 23%. GTECH Interactive have been effected by the loss of key clients, and its failure to release product inventory into the igaming market. The software provider announced the closure its poker network - IPN, earlier this year.
OPAP selected GTECH Interactive as its supplier of igaming inventory, in a closed tender that saw 888 Holdingss, Playtech and Openbet bid for the suppliers contract . Furthermore GTECH Interactive announced that it would supply OPAP with a new online sportsbook, which will be launched at the end of the year.
Walter Bugno believes that the partnership represents a validation of GTECH’s online gambling services. OPAP holds exclusive rights to offer online gambling services in Greece. In 2012 the ex-state owned betting operator renewed terms with the Greek Government that would see the operator maintain its betting monopoly in the region until 2020.
Bugno commented in a corporate statement ”This decision is a validation of the successful ongoing performance and cross-channel capabilities of GTECH’s online portfolio, which we are providing to World Lottery Association customers, including the Ontario Lottery and Gaming Corporation, Norsk Tipping in Norway, and Veikkaus in Finland,”
OPAP are set to integrate GTECH’s player management system and sports betting services. Bugno further added “This will fulfill OPAP’s online betting strategy by reliably driving program growth as technology and player preferences evolve. In addition, the open architecture of the Player Account Management system will enable OPAP to implement its preferred strategy for a single view of the player through the creation of a single player account across multiple games and gaming channels.”
OPAP had operated as the state owned igaming operator previously using GTECH software, in 2013 the Greek Government would sell all shares in its asset to the EMMA DELTA consortium for €625 million. The consortium consists of Lottomatica (owner of GTECH), Czech investor Jiri Smejc and Greek shipbuilding giant the Melissanidis Group.
The OPAP represents good news for the GTECH Corporation, last week it announced that it had seen a fall in net revenue of 23%. GTECH Interactive have been effected by the loss of key clients, and its failure to release product inventory into the igaming market. The software provider announced the closure its poker network - IPN, earlier this year.
April 25, 2013
Greece gives OPAP suitor more time to raise bid
Greece's privatization agency has given Greek-Czech fund Emma Delta more time to improve its bid for a controlling stake in gaming firm OPAP, two officials directly involved in the sale talks told Reuters on Thursday.
"They asked for and were given a postponement until Wednesday, May 1,» said one official at Greece's privatization agency, who declined to be named, after a first deadline expired. An official at Emma Delta confirmed the move.
Emma Delta, controlled by Czech investor Jiri Smejc and Greek shipowner George Melisanidis on Monday offered 622 million euros ($808 million) for 33 percent of Greek gambling monopoly OPAP and management rights at the company.
Emma Delta submitted the only valid bid in the sale, Greece's first big privatization under its international bailout program.
But privatization agency HRADF asked the fund to raise its offer to at least 650 million euros, the stake's minimum value as estimated by an external assessor.
Deutsche Bank and National Bank, Greece's main sale advisers, had put the stake's value at 610 million.
OPAP shares were up 0.3 percent to 6.9 euros in early trading in Athens, giving a 33 percent stake in the company a stock market value of 726 million euros.
"They asked for and were given a postponement until Wednesday, May 1,» said one official at Greece's privatization agency, who declined to be named, after a first deadline expired. An official at Emma Delta confirmed the move.
Emma Delta, controlled by Czech investor Jiri Smejc and Greek shipowner George Melisanidis on Monday offered 622 million euros ($808 million) for 33 percent of Greek gambling monopoly OPAP and management rights at the company.
Emma Delta submitted the only valid bid in the sale, Greece's first big privatization under its international bailout program.
But privatization agency HRADF asked the fund to raise its offer to at least 650 million euros, the stake's minimum value as estimated by an external assessor.
Deutsche Bank and National Bank, Greece's main sale advisers, had put the stake's value at 610 million.
OPAP shares were up 0.3 percent to 6.9 euros in early trading in Athens, giving a 33 percent stake in the company a stock market value of 726 million euros.
January 24, 2013
Greece monopoly ruled illegal
OPAP’s gambling monopoly in Greece is close to the end of the road after the Court of Justice for the European Union (CJEU) ruled it illegal. The monopoly contravenes European Union (EU) law as it grants exclusive rights without serving the public interest by limiting the amount of betting opportunities, according to a court ruling this morning. The current case was one filed by Stanleybet, William Hill and Sportingbet, with the result sending OPAP’s share price sliding downwards on the Stoxx Europe 600 Index – 11 percent to €6.27 at the last check.
There is still breathing room for Greece and if they implement stricter controls to ensure consumer protection they will be allowed to preserve it. If that doesn’t happen then Greece will have to open up the market to allow firms from other EU countries to operate.
Immediate reaction to the ruling came from Sigrid Ligné, secretary general of the European Gaming and Betting Association, who stated: Given the factual setup of OPAP’s monopoly which clearly fails to meet the CJEU test we hardly expect effective control to be implemented in the future. Therefore, Greece should follow the Court’s clear advice to liberalise the market. The ruling is highly relevant and gives the EC yet more jurisprudence to put an end to non-compliant gambling policies across the EU.”
Ligne is hopeful this ruling will give way to more cases being investigated by the EU regarding other member states that contravene EU law.
“At this stage only the EC, as the Guardian of the Treaties, can restore legal security by acting directly on the many complaints it has received, not only against Greece, but also against many other Member States. The EC can now take firm action on all pending infringement cases in order to ensure all Member States are in full compliance,” she added.
There is still breathing room for Greece and if they implement stricter controls to ensure consumer protection they will be allowed to preserve it. If that doesn’t happen then Greece will have to open up the market to allow firms from other EU countries to operate.
Immediate reaction to the ruling came from Sigrid Ligné, secretary general of the European Gaming and Betting Association, who stated: Given the factual setup of OPAP’s monopoly which clearly fails to meet the CJEU test we hardly expect effective control to be implemented in the future. Therefore, Greece should follow the Court’s clear advice to liberalise the market. The ruling is highly relevant and gives the EC yet more jurisprudence to put an end to non-compliant gambling policies across the EU.”
Ligne is hopeful this ruling will give way to more cases being investigated by the EU regarding other member states that contravene EU law.
“At this stage only the EC, as the Guardian of the Treaties, can restore legal security by acting directly on the many complaints it has received, not only against Greece, but also against many other Member States. The EC can now take firm action on all pending infringement cases in order to ensure all Member States are in full compliance,” she added.
October 03, 2012
Legal complaints could impact OPAP value, says RGA
The Remote Gambling Association has alerted banks handling the sale of OPAP to three legal complaints that could affect the monopoly’s future value, as the lobby group maintains pressure on Greece to open its online sports betting market.
In the letter to Deutsche Bank and the National Bank of Greece, the world’s largest online gambling trade association provided details of three outstanding complaints against OPAP’s monopoly, two lodged with the EC and another with the Greek Council of State, “that could have a material effect on the future value of OPAP”.
Greece’s privatisation agency HRADF forged ahead with the sale process for its 33% stake in OPAP last week, despite a key legal advisor to Europe’s highest court casting doubts on the sustainability of OPAP’s monopoly and analysts projecting that a 30% tax on gross revenue and 10% on winnings on all of OPAP’s operations from 2013, introduced under pressure from the EC, could wipe up to €280m off annual profit.
The RGA’s letter has been sent on behalf of its members, which include bet365, Betfair, bwin.party, Paddy Power, Sportingbet, Unibet and William Hill, many of which have been impacted by Greece’s law and regulations designed to protect the position of its betting monopoly.
Chief executive Clive Hawkswood said that while Greece had been pressurised by the EC into withdrawing OPAP’s preferential tax treatment on its land-based operations, there were other issues that had yet to be resolved, not least the Greek state’s intention to extend OPAP’s sports betting monopoly online.
“[I]t is only right that we brought these to the attention of Deutsche Bank to ensure that they are properly reflected in the sale process”, said Hawkswood. He said that the RGA’s position may change if the online sports betting market was fully opened and all potential stakeholders were taxed and treated equally. “[T]he Greek Government, online betting customers and gambling operators will [then] benefit from a fair and competitive market that operates in compliance with EU rules.”
The RGA’s first complaint to the EC competition directorate concerns the retrospective taxes applied to EU-licensed operators since last August, when Greece passed its online gaming act. The RGA complaint argues that the tax regime amounts to a potential form of State Aid as it exempts the OPAP-controlled land-based sector in Greece.
The RGA has also submitted a joint complaint with its continental counterpart the European Gaming and Betting Association (EGBA) to the EC’s Internal Market and Services Directorate. This submits that OPAP’s offline sports betting monopoly is an unjustified obstacle to free trade within the EU, while also potentially being awarded the online sports betting monopoly.
Finally, the RGA has petitioned the Greek Council of State on the basis that the retrospective tax regime for online operators represents an unconstitutional restriction on the right to conduct a business activity in Greece. The case is set to be heard in December.
In the letter to Deutsche Bank and the National Bank of Greece, the world’s largest online gambling trade association provided details of three outstanding complaints against OPAP’s monopoly, two lodged with the EC and another with the Greek Council of State, “that could have a material effect on the future value of OPAP”.
Greece’s privatisation agency HRADF forged ahead with the sale process for its 33% stake in OPAP last week, despite a key legal advisor to Europe’s highest court casting doubts on the sustainability of OPAP’s monopoly and analysts projecting that a 30% tax on gross revenue and 10% on winnings on all of OPAP’s operations from 2013, introduced under pressure from the EC, could wipe up to €280m off annual profit.
The RGA’s letter has been sent on behalf of its members, which include bet365, Betfair, bwin.party, Paddy Power, Sportingbet, Unibet and William Hill, many of which have been impacted by Greece’s law and regulations designed to protect the position of its betting monopoly.
Chief executive Clive Hawkswood said that while Greece had been pressurised by the EC into withdrawing OPAP’s preferential tax treatment on its land-based operations, there were other issues that had yet to be resolved, not least the Greek state’s intention to extend OPAP’s sports betting monopoly online.
“[I]t is only right that we brought these to the attention of Deutsche Bank to ensure that they are properly reflected in the sale process”, said Hawkswood. He said that the RGA’s position may change if the online sports betting market was fully opened and all potential stakeholders were taxed and treated equally. “[T]he Greek Government, online betting customers and gambling operators will [then] benefit from a fair and competitive market that operates in compliance with EU rules.”
The RGA’s first complaint to the EC competition directorate concerns the retrospective taxes applied to EU-licensed operators since last August, when Greece passed its online gaming act. The RGA complaint argues that the tax regime amounts to a potential form of State Aid as it exempts the OPAP-controlled land-based sector in Greece.
The RGA has also submitted a joint complaint with its continental counterpart the European Gaming and Betting Association (EGBA) to the EC’s Internal Market and Services Directorate. This submits that OPAP’s offline sports betting monopoly is an unjustified obstacle to free trade within the EU, while also potentially being awarded the online sports betting monopoly.
Finally, the RGA has petitioned the Greek Council of State on the basis that the retrospective tax regime for online operators represents an unconstitutional restriction on the right to conduct a business activity in Greece. The case is set to be heard in December.
September 27, 2012
Greece offers more OPAP to get privatizations on track
Greece will sell almost all of its stake in gambling monopoly OPAP, the government said on Thursday, increasing the amount that is for sale in an attempt to convince foreign lenders that it is serious about selling off state assets.
Athens, which owns 34 percent of one of Europe's biggest gaming companies, has launched a tender to sell a 33 percent stake in the company, the privatization agency HRADF said. Previously Greece had planned to sell 29 percent of OPAP, currently worth about 450 million euros on the Athens bourse.
OPAP is central to Greece's plan to raise 19 billion euros from privatizations by 2015 - a key condition of its 130-billion euro bailout agreed earlier this year. It is the country's most profitable state firm with a sports betting monopoly stretching, for some games, as far as 2030.
Greece is badly behind on privatization targets and the three-month-old, conservative-led government has pledged to do better as it struggles to convince the EU and the IMF to resume the bailout payments that keep the country afloat.
"The fact that OPAP is being completely sold off shows the government's will to privatize," said Dimitris Mardas, an economics professor at Thessaloniki's Aristotle University.
HRADF set an October 19 deadline for expressions of interest and said the tender would be carried out in two phases. After an initial declaration of interest, bidders will be called to submit binding offers, HRADF said. The agency has the right to introduce an intermediary phase of non-binding bids in order to evaluate bidders' business plans.
"The complete privatization of OPAP will be carried out transparently, rapidly and with efficiency," HRADF's chief executive Yiannis Emiris said in the statement.
A senior government official told Reuters earlier this month that Athens aimed to find a buyer for OPAP by January and that four consortia of Greek and foreign companies were interested in the company.
Turkish conglomerate Dogan Holding said on Monday it would consider taking part in a sale tender for OPAP. Investment funds Fidelity and Silchester Inv. already hold 5 percent each in the company.
Greece has picked Deutsche Bank and National Bank of Greece as financial advisers, it added.
Athens has already moved to clear issues that might block the company's sale. Earlier this month, it settled a row with European Union competition authorities over how the company should be taxed and set a new 30 percent levy on gross earnings from next year.
But investors' appetites might be dampened by an ongoing court challenge against the Greek company's monopoly brought by Britain's biggest bookmaker William Hill and online gaming companies Sportingbet and Stanleybet after they were denied gambling licenses in the country.
A senior EU legal adviser raised questions about OPAP's right to control all betting in the country last week. Greece's highest administrative court is expected to issue a final ruling on the case in the coming months.
March 17, 2011
Gaming bill will give monopoly to OPAP
The new gambling bill’s apparent favouritism towards Greek gaming company OPAP is leading to a complete monopoly in the sector, MPs warned yesterday.
The bill was re-tabled at the House Institutions and Legal Affairs Committees yesterday, after receiving the seal of approval from the European Commission.
The Attorney-general (AG) was summoned to yesterday’s meeting however to settle a dispute between the government and online casino operators.
The latter say the bill – drafted by the finance ministry – omitted to include OPAP in its ban on supplying online betting games, even though OPAP offers games of luck such as Joker, Proto and KINO.
AG Petros Clerides said the OPAP games were completely different, as they operate under an inter-state agreement and are not played by the player directly over the internet.
The Chairman of the House Finance Committee, DIKO’s Nicolas Papadopoulos, said the bill – which bans online casino games and regulates betting, while also imposing a 3.0 per cent tax on certain bets – was leading to a clear monopoly.
“The specific bill will not ban gambling, but legalise it and unfortunately it will legalise it for only one company, which will enjoy a monopoly,” said Papadopoulos, adding: “Of course I am referring to OPAP, a company which gained around €70 million in 2009, of which only a little over €1 million went to state coffers in the form of taxes.”
He said this bill would lead to a continuation of this monopoly and wondered why the finance ministry was attempting to abolish all of OPAP’s competitors in order to allow the organisation to profit millions from lucky games.
“Massive technical matters are raised over whether we can truly restrict gambling over the internet with legal bans,” said Papadopoulos. “We have our doubts over whether this could be a success; those who know how the internet works will know how easy it is for anyone to overcome any restrictions, any filters, in order to gamble on the internet and it is naïve to think that we can stop the phenomenon with filters and laws.”
The DIKO deputy was concerned that all the law would achieve would be to encourage gamblers to seek the services of the underworld and lead to the creation of a black market for gambling, which would lead to even less control than the state has now.
The Chairman of the House Institutions Committee, EVROKO’s Rikkos Erotokritou, said the Attorney-general’s explanations needed to be clarified further. “It seems that from the moment that there is a violation of the regulations for the protection of competition, it is OPAP and some subsidiary companies that will benefit from the introduction and implementation of this bill’s provisions,” said Erotokritou.
He added that this would lead to a monopoly, “which it is categorically banned from reason, but also the spirit of EU law.”
OPAP is a private Greek gaming company that operates on the island through its local counterpart, set up in 2003 following a bilateral agreement.
The bill was re-tabled at the House Institutions and Legal Affairs Committees yesterday, after receiving the seal of approval from the European Commission.
The Attorney-general (AG) was summoned to yesterday’s meeting however to settle a dispute between the government and online casino operators.
The latter say the bill – drafted by the finance ministry – omitted to include OPAP in its ban on supplying online betting games, even though OPAP offers games of luck such as Joker, Proto and KINO.
AG Petros Clerides said the OPAP games were completely different, as they operate under an inter-state agreement and are not played by the player directly over the internet.
The Chairman of the House Finance Committee, DIKO’s Nicolas Papadopoulos, said the bill – which bans online casino games and regulates betting, while also imposing a 3.0 per cent tax on certain bets – was leading to a clear monopoly.
“The specific bill will not ban gambling, but legalise it and unfortunately it will legalise it for only one company, which will enjoy a monopoly,” said Papadopoulos, adding: “Of course I am referring to OPAP, a company which gained around €70 million in 2009, of which only a little over €1 million went to state coffers in the form of taxes.”
He said this bill would lead to a continuation of this monopoly and wondered why the finance ministry was attempting to abolish all of OPAP’s competitors in order to allow the organisation to profit millions from lucky games.
“Massive technical matters are raised over whether we can truly restrict gambling over the internet with legal bans,” said Papadopoulos. “We have our doubts over whether this could be a success; those who know how the internet works will know how easy it is for anyone to overcome any restrictions, any filters, in order to gamble on the internet and it is naïve to think that we can stop the phenomenon with filters and laws.”
The DIKO deputy was concerned that all the law would achieve would be to encourage gamblers to seek the services of the underworld and lead to the creation of a black market for gambling, which would lead to even less control than the state has now.
The Chairman of the House Institutions Committee, EVROKO’s Rikkos Erotokritou, said the Attorney-general’s explanations needed to be clarified further. “It seems that from the moment that there is a violation of the regulations for the protection of competition, it is OPAP and some subsidiary companies that will benefit from the introduction and implementation of this bill’s provisions,” said Erotokritou.
He added that this would lead to a monopoly, “which it is categorically banned from reason, but also the spirit of EU law.”
OPAP is a private Greek gaming company that operates on the island through its local counterpart, set up in 2003 following a bilateral agreement.
August 03, 2010
OPAP calls tender, grants Intralot interim extension
Greek gaming monopoly operator OPAP has renewed its agreement with existing gaming supplier Intralot by one year while it carries out an international tender for the provision of new gaming systems and respective support services.
OPAP has already started the process of selecting technical and legal advisors who will assist the company in organising the evaluation process and publishing the relevant Request for Proposal (RFP) documents.
The international tender concerns the provision of new gaming systems, infrastructure, gaming operation, and respective support services as well as the installation and transition from its current system to the new system.
While the company awaits bids under the tender, OPAP has agreed to extend its existing contract with Intralot for one additional year, with Intralot tasked with a number of objectives including uninterrupted operations, growth of modern services to clients, expansion of content and games offered, as well as upgrading agency functionality and reducing operating costs.
Intralot will upgrade the existing technology infrastructure of OPAP and provide technical support services, maintenance and operation of the infrastructure, whilst proceeding with the expansion of the LOTOS Horizon audiovisual system that will require the installation of 20,000 TV sets in OPAP’s retail network, which will broadcast information content regarding OPAP games.
Intralot will also develop, install and operate the OPAP/TV system which will broadcast OPAP-specific sports and betting content via satellite and internet exclusively to OPAP agencies.
In addition Intralot will develop and operate new games which will be operated on LOTOS Horizon and on OPAP's self-service terminals, and will provide support services for OPAP’s game ‘Pame Stihima’ and undertake the introduction of new forms of betting content as well as live betting.
Intralot will receive an annual fixed fee of €57m under the contract extension from OPAP, together with an additional fee representing 8 per cent of the gross proceeds of the new games carried out by TAX (autonomous terminals) and Monitor Games, the installation of which will be entirely at Intralot’s expense.
OPAP added that should a new supplier be awarded the tender, the company has the option to extend the contract with Intralot for one further year, in order to secure the transition from the current system to a new system.
OPAP has already started the process of selecting technical and legal advisors who will assist the company in organising the evaluation process and publishing the relevant Request for Proposal (RFP) documents.
The international tender concerns the provision of new gaming systems, infrastructure, gaming operation, and respective support services as well as the installation and transition from its current system to the new system.
While the company awaits bids under the tender, OPAP has agreed to extend its existing contract with Intralot for one additional year, with Intralot tasked with a number of objectives including uninterrupted operations, growth of modern services to clients, expansion of content and games offered, as well as upgrading agency functionality and reducing operating costs.
Intralot will upgrade the existing technology infrastructure of OPAP and provide technical support services, maintenance and operation of the infrastructure, whilst proceeding with the expansion of the LOTOS Horizon audiovisual system that will require the installation of 20,000 TV sets in OPAP’s retail network, which will broadcast information content regarding OPAP games.
Intralot will also develop, install and operate the OPAP/TV system which will broadcast OPAP-specific sports and betting content via satellite and internet exclusively to OPAP agencies.
In addition Intralot will develop and operate new games which will be operated on LOTOS Horizon and on OPAP's self-service terminals, and will provide support services for OPAP’s game ‘Pame Stihima’ and undertake the introduction of new forms of betting content as well as live betting.
Intralot will receive an annual fixed fee of €57m under the contract extension from OPAP, together with an additional fee representing 8 per cent of the gross proceeds of the new games carried out by TAX (autonomous terminals) and Monitor Games, the installation of which will be entirely at Intralot’s expense.
OPAP added that should a new supplier be awarded the tender, the company has the option to extend the contract with Intralot for one further year, in order to secure the transition from the current system to a new system.
March 19, 2010
OPAP sees licence wins as Greece taps gaming cash
Greek gaming firm OPAP believes it can win a licence to operate low price slot machines and gain an extension to its current betting monopoly as the government seeks ways out of its debt crisis.
"OPAP considers itself strong and competent enough to secure a licence (for slot machines)," a spokesperson for Europe's biggest listed gaming firm by market value said on Thursday.
As part of a fresh bout of belt-tightening announced last week, the Greek government signalled it was considering extending the firm's current monopoly to help raise additional revenues.
The government, OPAP's biggest shareholder, said it expected to receive an extra 400 million euros ($542.8 million) in 2010 by extending OPAP's concession and granting licences for new games.
Finance Minister George Papaconstantinou said last month he would soon unveil a draft bill to deregulate slot machines, which can currently only be used in casinos, so that Greece can escape further EU fines.
The government, grappling with a 300 billion euro debt pile, is currently paying 31,500 euros a day to the European Union after it ruled the restrictions on gaming machines were against the free movement of services within the EU.
OPAP, 34 percent-owned by the state, holds the exclusive rights to operate sports betting and lotteries until 2020.
"Since the firm's activities could include other things as well, it would be normal for the firm to ask for an extension of its deal with the state," the spokesperson added.
It had cash of about 676 million euros at the end of September and analysts say the firm should find ways to invest in new areas to boost profits. Analysts said the new games could also include licences for scratchcards.
OPAP said it expected the government to grant more than one licence for slot machines later this year.
"OPAP considers itself strong and competent enough to secure a licence (for slot machines)," a spokesperson for Europe's biggest listed gaming firm by market value said on Thursday.
As part of a fresh bout of belt-tightening announced last week, the Greek government signalled it was considering extending the firm's current monopoly to help raise additional revenues.
The government, OPAP's biggest shareholder, said it expected to receive an extra 400 million euros ($542.8 million) in 2010 by extending OPAP's concession and granting licences for new games.
Finance Minister George Papaconstantinou said last month he would soon unveil a draft bill to deregulate slot machines, which can currently only be used in casinos, so that Greece can escape further EU fines.
The government, grappling with a 300 billion euro debt pile, is currently paying 31,500 euros a day to the European Union after it ruled the restrictions on gaming machines were against the free movement of services within the EU.
OPAP, 34 percent-owned by the state, holds the exclusive rights to operate sports betting and lotteries until 2020.
"Since the firm's activities could include other things as well, it would be normal for the firm to ask for an extension of its deal with the state," the spokesperson added.
It had cash of about 676 million euros at the end of September and analysts say the firm should find ways to invest in new areas to boost profits. Analysts said the new games could also include licences for scratchcards.
OPAP said it expected the government to grant more than one licence for slot machines later this year.
February 12, 2010
Gambling monopoly in Greece to be broken by European Commission
There are a few nations that realized the overall benefits that can be reaped for the immense gambling industry, both on and off line. Greece is one such nation and has been trying to protect its carefully constructed gambling industry from foreign sources for a while now.
Greek gambling law is pretty basic and approves gambling in many forms, but only in casinos. There are about 20 casinos in Greece, most of which are located on some of the islands which serve as popular tourist destinations. In a nutshell, the gambling industry in Greece is intended more for visitors as a source of revenue from outside the country.
Lotteries and sportsbetting in Greece are strictly controlled by the company OPAP, one-third of which is owned by the government. They have an outstanding monopoly that has been running solid since 1958 but they have yet to offer an online sportsbook in Greece.
Generally, internet gambling in Greece is not very popular. Players must rely on foreign sites to play online, but the Greek government would rather not see this happening. It’s in their interest to protect the monopoly that’s currently in existence so that they can maximize their profits.
The European Commission has noticed that Greece has been protecting this monopoly in a subtle manner. They repeatedly reject bids for a license on behalf of companies like StanleyBet who would like to break onto the market. As a result, the EC may start to enforce EU internal market rules in Greece.
Greek gambling law is pretty basic and approves gambling in many forms, but only in casinos. There are about 20 casinos in Greece, most of which are located on some of the islands which serve as popular tourist destinations. In a nutshell, the gambling industry in Greece is intended more for visitors as a source of revenue from outside the country.
Lotteries and sportsbetting in Greece are strictly controlled by the company OPAP, one-third of which is owned by the government. They have an outstanding monopoly that has been running solid since 1958 but they have yet to offer an online sportsbook in Greece.
Generally, internet gambling in Greece is not very popular. Players must rely on foreign sites to play online, but the Greek government would rather not see this happening. It’s in their interest to protect the monopoly that’s currently in existence so that they can maximize their profits.
The European Commission has noticed that Greece has been protecting this monopoly in a subtle manner. They repeatedly reject bids for a license on behalf of companies like StanleyBet who would like to break onto the market. As a result, the EC may start to enforce EU internal market rules in Greece.
January 04, 2010
Greece picks Spanoudakis as OPAP CEO
Greece named Yannis Spanoudakis, a senior Athens 2004 Olympics organiser, as the new chief executive officer of Europe's biggest betting company OPAP , a company official said on Wednesday.
'The Greek state proposes Yannis Spanoudakis as new CEO and Haris Stamatopoulos as new Chairman,' OPAP's outgoing CEO Christos Hadjiemmanouil said in a general shareholders meeting held to approve the appointments.
Spanoudakis was a former managing director with the Athens 2004 Olympics organising committee and a senior executive with Dow Chemical. Stamatopoulos is a former chief of the Athens International Airport.
The Greek state is OPAP's biggest shareholder, with a 34 percent stake, which means the proposed candidates should get shareholders' approval.
Hadjiemmanouil and other board members offered their resignation after the new Socialist government came to power in the Oct. 4 elections.
OPAP has a national monopoly on sports betting and lotteries until 2020 but is facing stiff competition from foreign Internet bookmakers although online betting is still illegal in Greece.
Analysts are concerned about the impact of any new gaming taxes imposed on the company as the Greek government struggles to shore up its battered finances.
The government has suspended until April 30 a 10 percent lottery tax introduced by its conservative predecessors.
OPAP shares reversed earlier losses after the announcement, to trade 0.1 percent higher at 15.47 euros at 1052 GMT.
Shares in OPAP, down 25 percent since the start of the year, have underperformed a 23 percent rise of the Athens bourse's benchmark index.
The stock trades at 7.5 times estimated 2009 earnings, compared with a multiple of 7.2 for British bookmaker Ladbrokes and 13 for Italy's Lottomatica, data from Thomson Reuters I/B/E/S showed.
Spanoudakis was a former managing director with the Athens 2004 Olympics organising committee and a senior executive with Dow Chemical. Stamatopoulos is a former chief of the Athens International Airport.
The Greek state is OPAP's biggest shareholder, with a 34 percent stake, which means the proposed candidates should get shareholders' approval.
Hadjiemmanouil and other board members offered their resignation after the new Socialist government came to power in the Oct. 4 elections.
OPAP has a national monopoly on sports betting and lotteries until 2020 but is facing stiff competition from foreign Internet bookmakers although online betting is still illegal in Greece.
Analysts are concerned about the impact of any new gaming taxes imposed on the company as the Greek government struggles to shore up its battered finances.
The government has suspended until April 30 a 10 percent lottery tax introduced by its conservative predecessors.
OPAP shares reversed earlier losses after the announcement, to trade 0.1 percent higher at 15.47 euros at 1052 GMT.
Shares in OPAP, down 25 percent since the start of the year, have underperformed a 23 percent rise of the Athens bourse's benchmark index.
The stock trades at 7.5 times estimated 2009 earnings, compared with a multiple of 7.2 for British bookmaker Ladbrokes and 13 for Italy's Lottomatica, data from Thomson Reuters I/B/E/S showed.
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