Version: 11022003
Editor: Franka Pals
Publisher: Novamedia
Disclaimer: Novamedia disclaims all liability for information provided within the ”Novamedia European Gaming and Lottery Files”.The information is supplied by independent journalistic sources. No parts of these files may be reproduced in any form by print, photo print, microfilm or otherwise, or re-distributed electronically in any form without written permission from the publisher.
A lottery, also a foreign lottery, can get an operators' license 'by a special Greek law'. Thus, the fact that a foreign lottery is allowed by the legislation of the country where it is established, is not sufficient to constitute a legal lottery in Greece.
Greece allows gambling only inside a handful of state-licensed casinos.
Under anti-gambling legislation passed in 2002 by the former Socialist government, online electronic games which involve financial benefits are illegal.
In Greece the lotteries operate as monopolists, since each of the operators concentrates himself on one segment of the lottery business. Either the state itself is an operator or a private company has been granted a license by the state to operate a lottery. The passive draw lottery is operated by the Hellenic Republic through the Direction of State Lotteries (DSL). The DSL manages the Greek State Lotteries which include National Lottery, the Popular Lottery and the Lottery of Social Welfare (or the Special Lottery). As far as the Instant Lottery is concerned, the DSL has the right to control the production process, management, operation and promotion of the contractor company 'Instant Lottery S.A.' which has been selected following an international bidding contest.
The Organisation of Football Prognostics (OPAP) is a private entity established in 1958 to which has been assigned the operation of football prognostics, the numerical lotteries and Sports lotteries (Toto and fixed odds betting).
An illegal lottery has to be distinguished from an (illegal and) immoral lottery, e.g. an illegal lottery for financing a criminal activity. The difference between both is that in an illegal lottery the purchaser and the issuer can, as there is no contract between them since it is invalid, prosecute each other for "unjustified enrichment". While in case of an immoral lottery prosecution based on "unjustified enrichment" will be excluded certainly by the issuer and probably by the purchaser because they will be liable for "indecency".
Every prize over 73,37 euro (25,000 drachmas) will be subject to 10% tax for the part above 73,37 euro. The tax amount will be held back from the winner by the lottery operator who will forward the payment to the State Treasury. It should be noted that profits from lotteries will not be considered as income but will be taxed as capital.
Pursuant to a resolution of the Minister of Finance no other tax, charge, right contribution or stamp fee then the tax mentioned above can be imposed on the profits.
In November 2004, Economy and Finance Minister Giorgos Alogoskoufis officially announced that the government will slash the marginal corporate tax rate to 32 percent next year from 35 percent at present. This is part of a plan to cut the corporate tax rate to 25 percent within the next three years.
Analysts said although it is hard to say what the exact effect of the corporate tax cut on profits will be, as it varies across companies,
it is generally estimated it will produce an average increase of 7 to 10 percent in earnings per share (EPS) of large-caps. Listed companies with larger cash flows, such as OPAP (The Greek Organisation of Football Prognostics) are expected to benefit the most.
According to analysts, the upward revision in EPS has resulted in higher target prices for most stocks, attracting more funds from abroad.
In contrast to other sectors, 2003 was a year of consistent growth for the gaming industry throughout the world. Worldwide gaming sales posted a 14% increase, reaching $160 billion compared to $140.5 billion in 2002. In Europe alone $75.8 billion were allocated to public welfare institutions in the fields of science, health, the arts, sports and education.
The gaming industry's solid annual gains of 12-15% in the last couple of years are mainly due to the introduction of "knowledgebased games" (fixed odds betting) and other "fast" games (Video lottery, Keno, etc).
Every year, Greeks reportedly gamble more than 4.5 billion euros Euros in legal games, with casinos getting the lion's share.
The Greek State Lottery, founded in 1862, is the sole lottery which is authorised to operate draw games on the Greek territory. It is operated as a division of the Ministry of Finance. Profits are used for national budget and good causes. The State Lottery is not allowed to participate in a joint operation with lotteries of another jurisdiction.
The direction of State Lotteries (DSL) is authorised to operate three different types of traditional lotteries, all passive games:
In 2001 sales reached GRD107.9 billion
Instant Lottery S.A. (operated by Intralot Group) was established in 1993 and was licensed by the Greek State to operate exclusively the scratch tickets in Greece. Profits go to the State's Budget. With instant games, Instant Lottery S.A. created a new market segment. Since September 2002 Instant Lottery S.A. is an official WLA-member.
The tickets are distributed through a sales network of about 16,000 retailers from which 5,000 are OPAP's agencies, 7,000 are street vendors, 3,000 are kiosks and 1,000 are dairy shops.
The Instant Lottery issues two categories of instant games:
Total sales in 2002 were 183,7 million euros, a small increase compared to 181 million in 2001. Sales during the first 9 months of 2003 were 122 million euros.
Traditional Instant Games
The Instant Game is a game in the context of which a player buys an instant ticket and by removing a synthetic opaque cover (scratch area or play area) he or she determines the potential prizes. These prizes are paid out by the Lottery or by the Retailers following a validation process through a Validation Terminal.
Probability Games
Lottery Probability Game is a game in which the ticket is printed with multiple latex covered play spots and the player must choose which sub-set of play spots to rub and remove the latex.
In a Probability Game each ticket may be a winning or a non-winning ticket depending upon which latex-covered play spots are rubbed by the player.
In November 2002 the lottery launched "Instant Million" where the maximum prize is 1 million euros
Probabilities Games are provided by Intralot. According to the rules of the game, to determine whether or not a prize has been won, the total amount of prizes to be paid by the Lottery to the Players, can be estimated by application of the mathematical laws of probability.
Website: www.opap.gr
The Greek Organisation of Football Prognostics (OPAP) was established in 1959 to support the Greek Sports and Culture financially. It is Europe's forth-biggets publicly traded gaming company.
OPAP covers the whole Greek territory and has also a department in Cyprus. OPAP has the exclusive right to operate as a bookmaker.
Only authorised by special law lotteries will be legal and controlled by the state through regulations in such a way that lottery players will be secured from the risks as occur by the exploitation of unauthorised lotteries. The Greek Government owns 52 % of OPAP. At the end of 2004, deputy Minister of Finance, Mr. Doukas, stated that the government is contemplating the sale of a stake in OPAP but with the State maintaining control and OPAP preserving its exclusive rights. The final decision on this issue is expected by late February or early March 2005. However, the State must pass a law in order to reduce its stake in OPAP bellow the current 51%.
OPAP is a legal entity under private laws subject to the administrative supervision of the Ministry of Culture and more, in particular, the Sports Secretariat. In 2001 OPAP became a Société Anonyme and was listed on the Athens Stock Exchange as OPAT.
The tender for the purchase of 12.000 terminals will take place by the end of 2004 with a budget of 150 million euros.
Total sales in 2003 were 2,27 billion euros compared to 1,97 billion in 2002. Though turnover derived mostly from betting on football events, the product range was broadened in 2003 to include tennis matches, attracting more sports fans and offering additional betting options.
At the end of 2004 OPAP's management stated that for FY2004 it expects revenues to increase by 30%, while net income is forecast at 470 million euros (including extraordinary gains of 148 million euros, resulting from the reversal of the provisions related to INTRALOT).
Propo (Toto)
Lotto 6/49
Propogoal (Toto)
Started of in 1996.
Ticket prize amounts 0,10 euro.
Responsible for 2,5 million euros in 2003 (0 % of total sales).
Proto
Pame Stichima (Odds betting)
Joker
Super 3
Extra 5
Keno
OPAP utilizes Intralot's lottery system. The system was selected by OPAP and operates since December 1990. It supports three Regional Data Collection Centers (located in Athens, Salonica and Cyprus) and one National Processing Center (located in Athens).
In 1999 Intralot signed a contract with OPAP for the implementation and operation of fixed odds betting (Pame Stichima) in Greece. This project has started its commercial operation in January 2000, introducing the 'Long List Betting' game with football and basketball matches from almost all European Leagues.
The organisation and the risk management of this game have been awarded by OPAP to Intralot and its subsidiary Betting Company S.A. for seven years with an extension of three years on a percentage of sales base.
In 2003 the sales amount of the Betting Company were 142,2 million euros. Thenet profit before tax was 5,4 million euros.
Website: www.sport.gov.gr/2/21/e211.html
Since its establishment in 1925, ODIE has been a major income source for the State hrough the organisation of official Horse races and the institution of Horse racing bets.
Intralot entered the horse betting industry in 1998 by completing the information system of the Greek Organisation for Horse Racing (ODIE) as well as the horse racing bet Totalizer system for ODIE, a gambling on-line system in Greece. The Totalizer gathers resources for the Hellenic Sport and Culture.
Throughout Greece you can find 250 affiliated agencies for horse racing bets.
In the beginning of the 60's, the first law concerning the foundation and the operation of casinos came into effect (l.j. 4212 of the 19/19-9-61). The casinos were founded after convention which was ratified by law between the Greek State, the Greek Tourism Organization and the German contractor Dr. Hartmann Freiherr von Richthoffen. According to the signed convention, the contractor civilian had the exclusive exploitation of two casinos (one at Rhodos and one at Corfu) for 20 years. Besides, in 1970 (l.j. 468 of the 7/16-3-70) the convention between the Greek State and the GTO, on the one hand, and the businessman Demitrios J. Frixos, on the other, was ratified for the foundation and the operation of the casino of Parnitha. The contractor civilian, according to the convention, had the exploitation of the casino for 15 years.
Till 1994, these three state casinos were the only ones operating in Greece. They didn't give the possibility to a large amount of Greek citizens to visit them because of their geographical distribution and because they demanded some entrance preconditions not feasible to plenty of citizens.
However, in 1994, license was granted to civilians for the foundation of a casino. Operation licences for 12 casinos all around Greece were provided. So the gambling options were broadened by the foundation of these private casinos. The only precondition nowadays for a citizen to step in casino's area is to have completed 23 years of age.
The law defines that, for a period of 12 years (until 2006), no more casinos could be founded.
The casinos are private speculating enterprises which operate under the State's supervision and control. The State claims the largest amount of each entrance ticket, as well as an important part of each casino's turn over.
The allowed games in Greek Casinos according to the law 2206/94 are the following:
The casinos' control is achieved by the National Tourism Organization controllers and the revenue officers. The supervisory authority of the casinos is the Casino Committee. The committee is assisted by the Casino Management of the Development Ministry.
Tasks of the Ministry:
A complete list of all casinos in Greece can be found on: http://www.isa-casinos.de/data/ 8138.html
Website: www.scientificgames.com
Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries and the leading supplier of wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies.
Scientific Games Austria is a wholly owned subsidiary of Scientific Games Corporation and supplies the European market with lottery systems and services.
In 2003 Scientific Games revenues increased to USD 561 million, compared to USD 455 in 2002. Netto income in 2003 was USD 52 million compared to USD 34 million in 2002.
Scientific Games is the instant printer of Instant Lottery S.A.
Website: www.intralot.com
Established in 1992, Intralot S.A. is an information technology company specialising in the sector known internationally as Gaming-Equipment and Services. The Company focuses mainly on the development of integrated lottery systems, on the design and development of lottery games as well as on providing operational and support services. It serves as the online system Vendor of Instant Lottery S.A. and OPAP. Intralot is an affiliate of the Intracom Group and is actively involved in the management and operation of Lottery Organizations. It has been awarded exclusive licenses to implement and operate lotteries on behalf of authorities in a number of jurisdictions.
Listed in the Athens Stock Exchange since November 1999, the company has a high market capitalisation.
In 2003, the company expanded operations by offering its services in various new markets, including Serbia, Bulgaria, Moldova, Chile, Romania and Cyprus.
| 2003 | 2002 | 2001 | |
|---|---|---|---|
| Turnover | 110.4 | 93.9 | 59.5 |
| Gross Profit | 82.8 | 66.6 | 51.1 |
| Profits before taxes | 68.9 | 57.8 | 46.2 |
Intralot is the operator of Instant Lottery S.A., audited by the government and remunerated through a percentage of revenues.
It holds a dominant position in Greece as well as the Balkan and East European markets while maintaining a strong presence in Africa, Middle East, Asia and South America. To facilitate project implementation Intralot has established a large number of subsidiaries in Greece and abroad specialising in organisational, operational and support services for the systems installed by the Company.
Additionally, Intralot participates in companies organising lottery games under license by the competent civil authorities - in Greece and abroad - transferring its knowhow in information systems, organisation, operation, promotion and support of lottery games. Currently the Intralot Group has a total work force of 400 employees.
Share holdings in Greece:
The company's game library includes more than 100 types and variants. Intralot's Lottery System affords flexibility on game variations.
The system supports the following advanced ways of wagering:
Betting Company SA was established in 1998 in a response to the growing demand by regulators and national lotteries worldwide for the introduction of fixed odds betting.
The company is an addition to the Intralot group of companies, a wagering technology and services provider.
Betting Company made the introduction of traditional bookmaking into the large retail chains operated by national lotteries feasible.