Insight OPAP
CAN EMMA DELTA BRING ORDER TO THE CHAOTIC GREEK MARKET?
OPAP switched from state to private control last year, but there remains many questions about its future direction
After 55 years of state control, an end of an era was marked in 2013 for OPAP, as the investment scheme Emma Delta took control of the Greek gaming agency.
The new management under Camille Zeigler, executive group PPF, has many long-term decisions to make; negotiations with partners of the organisation to confirm, and it must also reshape the overall network of OPAP’s relations from the past. In a recent interview with the Greek press, Mr. Zeigler was quizzed as to his views about the OPAP deal, the issues regarding online gaming and the future direction of the private gaming company.
How do you consider the price paid by Emma Delta for 33 per cent of OPAP ?
CZ - I think the price was fair and reflected the actual value of the company . However, it should not be isolated to a transaction, given that OPAP contributed substantially to the process of licensing by the Greek state, paying €560m to acquire authorisation of VLTs and, through its Greek Sweepstakes, paid €130m for the license through the lottery. Even in the context of this transaction, the Greek government imposed a tax on gaming (GGR tax), which in 2013 amounted to €345m. If you add all these factors together, then I think that the price was fair . The HRADF I think he did a great job and negotiated hard.
What is the situation with the exclusive right of OPAP in online gambling and what was the price paid by the agency in 2000 to acquire this right?
CZ - We can not know what the individual price was paid to the State, since until recently there was no tax on gambling (GGR tax). There were other taxes placed upon OPAP, but without this tax, we can not estimate the volume and value created by online gambling. The most important aspect for us is that, despite the fact that an appropriate fee was paid, to date OPAP has not
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“This issue of the existing licensed providers is the responsibility of the Greek state. We are here to prepare OPAP to be competitive in online gaming services. Everyone is talking about the 24 providers, for which, I should note that they have only temporary licenses. So you need to take some decisions on this period of leave.”
realised this exclusive right. The last two years offered some online games through agencies, but the impact has been marginal. From this perspective, it is difficult to calculate the contribution online gaming has made to OPAP, although personally I think it’s almost zero .
Is there any provision in the OPAP sale agreement that provides for the lack of state exclusivity for the right to provide online gambling ?
CZ - The sales contract is an agreement developed under certain conditions. Typically, in these transactions, there is some kind of assurances or guarantees that form the major aspects of an investment. For example when someone is interested to acquire a lottery company subject to regulation, you must discuss the regulatory regime.
What would you recommend to the Greek state to do with the 24 existing licensed providers of online gaming?
CZ -This issue is the responsibility of the Greek state. We are here to prepare OPAP to be competitive in online gaming services. Everyone is talking about the 24 providers, for which, I
should note that they have only temporary licenses. So you need to take some decisions on this period of leave. You know, the Czech Republic, when Russian soldiers arrived in May 1968, came temporarily. Eventually they remained 23 years. In addition, temporary licensed providers should operate under the same operating conditions as OPAP, such as taxation on betting, adhering to conditions for engaging responsible gaming etc.
There have been several criticisms of the downsizing of OPAP. Why were these reductions necessary and how will staff develop with the company in the foreseeable future ?
CZ -Above all , there were not 350 workers who retired, but much less. Besides, it would not be possible to make such cuts, since Greek law does not allow it. Secondly, employees are not redundant, but agreed to terminate their contracts. It is also untrue that those who left were low paid. They were instead rather well paid and received substantial compensation packages. But what is not mentioned is that OPAP also proceeded in hiring staff, which is a process that continues as part of a staff assessment by an independent company we
Camille Zeigler, President and CEO, OPAP
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