G3-247 Report GREECE MARKET UPDATE
€560m fee in 2011 for the 35,000 VLTs (€16,000 per VLT).
This included the tender to supply 16,500 VLTS for OPAP’s own network plus a public international bid- ding tender to grant the right of installation of a further 18,500 VLTs to between four and 10 concessionaires which is expected to roll out next year.
It is predicted that there will be four big concessionaires with 4,600 VLTs each and then a couple of smaller operators with 1,500-2,000 VLTS. It is estimated some 800 gaming halls will be opened by these concession- aires bringing the total number of gaming halls to 1,400 by the beginning of 2016.
The initial roll out of VLTs was due to begin in March / April this year and after some delays is now expected by the beginning of 2015. It will include a portfolio of 8,580 directly operated machines which are anticipated to reach €225m that year on daily yields of €73 per machine. Sub-contracted VLTs are estimated to earn the same amount per day but only generate half the EBIT - €50m annually compared to €100m for the company operated terminals.
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By mid next year the machines are expected to earn a daily yield of €80 per day with €500m revenue that year.
Under the law the first 16,500 must be installed within 18 months after the Operation and Control regulations are in place (Aug 2014). Concessionaires then have 24 months from the granting of the concession to install the remaining VLTs.
The Greek state will tax gross profits on the machines on a sliding scale of 30 to 35 percent. The sub conces- sionaires are to be treated like agents and will pass on their revenues minus a commission fee to OPAP. This will amount to around 55-56 percent of the subcon- tracted machines gross win.
It is thought OPAP will ask for a €4,000-€8,000 upfront free per VLT with €5,500 as a suggested likely rate. This should then cover OPAP’s €86m licence fee.
VLT SUPPLIERS In July GTECH was selected by OPAP to provide the
central information system for OPAP’s VLT network.
01 Synot is currently finalising its contract with OPAP but is expected to supply around 2,000 of the VLTs next year and is ready to send machines at the beginning of 2015. Phase two of the project will see OPAP able to sell the remaining VLT licences to chosen concessionaires who can then open their own venues.
02 Synot’s David Mixa said: “Greece was always a very good market and also the indicated number of the illegal machines clearly shows that Greeks are big players. It is extremely difficult to predict future revenue in a market where the legal gaming industry had pretty much been completely eliminated. But we see massive potential and Greece is a project that is a top priority for us.”
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