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OPAP BOARD APPROVES MULTI-MILLION LICENCE FEE
Friday , September 30, 2011 : Cash-strapped Greek government will get Euro 935 million
Greece’s gambling monopoly OPAP will pay Euro 935 million to the Greek government in order to extend its grip on the market and acquire a new video lottery licence, reports the Reuters news agency.
The OPAP board of directors authorised the expenditure Thursday, clearing the way for an extension of the monopoly for a further ten years from 2020, and the right to install 35 000 video lottery machines across the country.
The licensing coup will make the company more attractive to potential buyers as the government seeks to privatise assets in order to pay down its crippling national debt.
The board gave its initial approval to the proposal of the Greek state for extending the concession for 10 years at a cost of Euro 375 million, an anonymous insider source told Reuters, adding that OPAP will pay a fee of 5 percent on each game's gross profit from 2020 to 2030.
For the 35,000 VLTs, the price is Euro 560 million, of which 474 million will be paid with the signing of the deal, the official said.
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