Public Gaming International July/August Magazine

45 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2025 Intralot to Acquire Bally’s International Interactive Division in €2.7 Billion Deal In a bold move to reshape the global gaming landscape, Intralot S.A. (ATSE: INLOT) announced it will acquire Bally’s International Interactive business in a deal valued at €2.7 billion. The agreement positions Intralot as a global leader in both lottery and digital gaming, with operations spanning Europe, North America, and key regulated markets around the world. The deal, approved by both companies’ boards, combines Bally’s highly regarded digital gaming capabilities with Intralot’s long-standing expertise in lottery systems and services. It represents a strategic shift for both companies, providing Intralot with significant scale and Bally’s with a strong return and renewed focus. Deal Structure and Financing Bally’s will receive a mix of €1.53 billion in cash and €1.14 billion in newly issued Intralot shares (approximately 874 million shares at €1.30 each). The acquisition will result in Bally’s becoming the majority shareholder of Intralot. To fund the transaction, Intralot has secured commitments from a consortium of banks including Citizens Bank, Deutsche Bank, Goldman Sachs, and Jefferies for up to €1.6 billion in debt financing. Intralot also plans to raise an additional €400 million through a public equity offering on the Athens Stock Exchange, pending regulatory and shareholder approval. As part of the transaction, Bally’s will use proceeds to repay secured debt and fund future growth, including the development of its Chicago casino project. A Global Gaming Powerhouse Once completed—expected in Q4 2025—the combined company will be one of the largest by market capitalization on the Athens Stock Exchange. The new entity will have €1.1 billion in annual revenue, a strong EBITDA margin of 38% (pre-synergies), and recurring free cash flow conversion exceeding 90%. The deal brings together two highly complementary businesses. Intralot, known for its robust B2B lottery operations and government partnerships, will gain a major B2C presence through Bally’s established position in online gaming—particularly in the UK, one of the world’s most competitive markets. “This is a transformative moment,” said Robeson Reeves, CEO of Bally’s. “Combining Bally’s digital strength with Intralot’s lottery expertise creates a unique platform for innovation and growth.” A Strategic Win for Both Sides For Intralot, the acquisition dramatically expands its footprint and revenue streams while enhancing its ability to serve a wide range of customers across B2B and B2C channels. For Bally’s, the transaction monetizes a major business unit at an attractive valuation and secures a strategic stake in a company poised for global growth. “We’re building something bigger than either company could achieve alone,” said Nikolaos Nikolakopoulos, CEO of Intralot. “This positions us as a top-tier global provider across both gaming and lottery verticals.” Intralot will retain its listing on the Athens Stock Exchange, with Bally’s holding a majority equity stake and Intralot founder Sokratis Kokkalis maintaining a significant ownership position. “This is a proud day for Intralot and for Greece,” Kokkalis said. “We’re creating a large-cap Greek company with global reach, setting the stage for international investment and long-term growth.” Technology and Growth Synergies The combined entity will benefit from a powerful blend of technology platforms. Intralot’s LotosX and PlayerX systems will be integrated with Bally’s Vitruvian analytics platform, enhancing marketing automation, loyalty programs, and real-time customer engagement. The strategic fit also opens new revenue opportunities in high-growth sectors such as charity lotteries in the UK and U.S., cross-selling across customer bases, and entry into new B2C gaming markets. The group’s combined strengths are expected to deliver short-term cost synergies and long-term expansion opportunities. Market Potential Together, the companies will address a projected $187 billion global market by 2029, with annual growth rates of 14% in iGaming and 5% in lottery. Intralot brings €1.4 billion in contracted lottery revenue through 2029, backed by an 89% renewal rate and long-term contract durations averaging 16 years. “The scale and diversification we’re gaining give us a strong foundation to capture a growing market,” Nikolakopoulos noted. Management and Governance Following the transaction, Robeson Reeves is expected to take over as CEO of Intralot. Nikolakopoulos will serve as President and CEO of the Lotteries division, and Chrysostomos Sfatos will assume the role of CFO. Intralot’s board will expand to 11 members, a majority of whom will be independent. Directors will include Reeves, Nikolakopoulos, Kokkalis, and Soohyung Kim, Chairman of Bally’s board and Vice Chairman of Intralot’s board. Looking Ahead Both companies see the transaction as a launching pad for global leadership. Long-term agreements will ensure continued access to shared intellectual property, technology platforms, and support services. “This is a statement of intent,” said Kim. “We’re establishing a true global champion in gaming and lottery—anchored in Europe, powered by world-class technology, and positioned to lead.” Pending regulatory approvals and shareholder consents, the deal is on track to close by the end of 2025. Until then, both companies will continue operating independently while preparing for integration. RFI: Illinois Lottery for PMA, iLottery, Central Gaming System and Instant Ticket Gaming Services The Illinois Department of the Lottery has published a series of Requests for Information (RFIs) to gather market insights and inform the development of an upcoming Request for Proposal (RFP). Responses Due: August 10, 2025, at 1:00 PM CT Gaming Laboratories International (GLI®) Named “Best Testing Laboratory in the Baltics 2025” and “Best Testing Laboratory in the Nordics 2025” in the Baltic & Scandinavia Gaming (BSG) Awards 2025 Scientific Games Builds on Digital Lottery Momentum with Key Executive Hires Keshav Pitani joins Scientific Games as Senior Vice President, Digital Games, bringing extensive experience in content, product development and innovation. He previously served for seven years as Senior Director of Product Development for Bally Technologies until its acquisition by Scientific Games Corporation in 2014. Laura Higgins has been named Vice President, Customer Success & Strategy for the Company’s global digital team. She brings more than 20 years of experience in e-commerce, general management, strategy, product, marketing and finance from leading companies such as Procter & Gamble, Shutterfly, Albertsons and Gartner.

RkJQdWJsaXNoZXIy NTg4MTM=