Slot machine giant International Game Technology struck a deal with an Italian company to provide the Italian Lottery with video gaming devices and slot machine content.
The transaction, which was announced Tuesday with the Lottomatica Group, gives IGT entry to the Italian video lottery terminal market, which is expected to include some 58,000 machines.
Lottomatica is the first lottery concession company operating in Italy with 9,000 games. The transaction allows IGT to immediately tap into that network with its exclusive slot machine content.
Rival American slot machine companies, including Bally Technologies and WMS Industries, have deals with the Italian video lottery market. But the transaction gives IGT a jump ahead of the competition.
“Currently, no U.S. supplier has any product that is active in the market,” Macquarie Securites gaming analyst Chad Beynon told investors. “Getting IGT content and units into the field will establish familiarity with Italian players that should benefit IGT down the road as the remaining nine concessionaires roll out units.”
Analysts have estimated the Italian lottery market could be worth up to $2 billion annually in gaming revenues.
IGT’s game content will have period of exclusivity in Italy.
Contact reporter Howard Stutz at firstname.lastname@example.org or 702-477-3871. Follow @howardstutz on Twitter.