National Lottery plc, the incoming Maltese National Lottery operator, has concluded an agency agreement to regulate the business relationship between the parties for 10 years.
As reported by the Malta Independent, the deal will begin on July 5 when the IZI Group subsidiary takes over operational duties from Maltco Lotteries, and it will finish at the same time as the Maltese National Lottery 10-year term concludes.
National Lottery plc was awarded the contract last November, following a €105m bid and absence of competition from the current incumbents.
The Lotto Receivers Union (LRU) and the Gaming & Lotteries Agents Association (GLAA) had both endorsed the bid submitted by National Lottery plc for the Request for Proposals (RFP) process through a Memorandum of Understanding (MOU).
Since being declared as preferred bidder, the three parties and the Malta Chamber of SMEs had been engaged in talks to finalise an agency agreement for the duration of the concession term, with the aim of strengthening the relationship between them.
“This agreement will allow for the modernisation of the national lottery retail network through substantial investments in technology and content delivery, as well as a general refurbishment programme to bring the retail network in line with European benchmarks over the next 18 months,” commented Johann Schembri, CEO of National Lottery plc.
“Retail distribution has always been considered as one of the strategic pillars of the National Lottery, and through our investment in technology, the adoption of new work practices and the joint refurbishment investment programme, we are establishing a forward-looking framework that will facilitate the growth of the national lottery while improving the livelihood of hundreds of families.”
Marco Rossi, President of the LRU, added: “We are very excited for the commencement of this new national lottery concession under the stewardship of National Lottery plc.
“We have secured an agency agreement that provides good prospects for our members. Adapting to change is never easy, but we all truly understand that a proper investment programme was needed, and we found National Lottery plc open to such an investment in the retail network.
“Our members have endorsed this agreement that will enable growth for the national lottery over the years to come for the joint benefit of all those involved in the national lottery ecosystem.”
The GLAA also expressed its satisfaction with the agreement, as its President Joseph Farrugia noted: “After weeks of negotiations we feel that we have reached a good consensus on the agreement for the benefit of all our members, thanks to the goodwill and commitment shown from National Lottery plc.”
Meanwhile, Abigail Mamo, CEO at the Malta Chamber of SMEs, said: “The coming ten years augur for an exciting and rewarding journey. It is critical for everyone to continue on the tone of the discussions and work together in good faith.”