Following an international tender, and pursuant to the concession agreement dated 30.07.2013, signed between HRADF and HELLENIC LOTTERIES S.A. (“Concessionaire”), the latter was granted the exclusive right for the production, operation, circulation, promotion and general management of the state lotteries, for twelve years, for a one-off consideration of €190,000,000 and an annual variable consideration.
According to the concession agreement, the annual variable consideration paid to the Greek State is calculated at a rate of 30% of the gross gaming revenues (GGR) of HELLENIC LOTTERIES S.A. (gaming revenues minus players’ winnings), setting a lower limit of €50,000,000, excluding the first and last year, where it is calculated pro rata. The annual variable consideration calculation does not take into account the revenues from the New Year’s Lottery, as OPAP, according to the concession agreement, pays the Greek State the balance of the money collected from the players from the sale of the New Year’s Lottery tickets after deducting the winnings paid to players and the management fee of the Concessionaire for the production, operation, promotion, circulation and general management of the New Year’s Lottery. The net income from this amount shall be used by the Greek State for Social Policies.
The concession commenced on 1.5.2014 and expires on 30.4.2026.
State lotteries, which are the object of the concession, include the Popular Lottery, the National Lottery, the European Lottery, the Instant State Lottery, the New Year’s Lottery and any future state lottery, in accordance with the terms and conditions of the Concession Agreement dated 30.07.2013, the general Greek legislative and regulatory framework and the more specific regulatory framework for Greek lotteries.
Hellenic Lotteries S.A. is a wholly-owned subsidiary of OPAP.
The Greek State and HRADF appointed Credit Suisse and Eurobank as financial advisors, law firms Bahas, Grammatidis & Partners, Karatzas & Partners and Allen and Overy as legal advisors, and Roland Berger as technical advisor, in order to assist with the privatisation.
