Novomatic has already formalized contracts with the concessionnaires for the newslot network (which manage the video-lotteries) with a total of 14,000 video terminals. Six of the ten concessionnaires are authorized and, following the London Fair that closed last Friday, others could be added. The first involved in fact indicated this at the expiry date imposed by the Administration of State Monopolies. Novomatic precisely as a supplier of the gaming platform. According to undisclosed sources the experimentation phase for the gaming systems starting with six different solutions could prove to be problematic for some of them, slowing down their entry into the market in a significant way. Hence the possibility that others will opt for Novomatic in a successive phase. It comes as no surprise that the company is not talking about the negotiations it has started with all ten concessionnaires. In total, as is noted, there are approximately 57 thousand terminals for which the companies have paid their share for the acquisition of the rights and Novomatic intends to obtain a significant share, far in excess of the 5,000 terminals already being managed in the Czech Republic and in Slovenia. These are machines that have been designed specifically for the Casino market and are intended, in Italy, for “specialized” amusement arcades.

At the London Fair Novomatic introduced a Video-lottery model called Rex S629 and announced its desire to work on an appropriate dedicated solution for the Italian market. Each video-lottery will be able to offer five different games. In order to offer the best service in terms of quality from its technological partner, Novomatic has acquired the majority share of Greentube, the developer of on-line games.

For the expansion phase into the Italian market Novomatic has made a corporate bond placement totalling 150 million euro for which subscriptions totalling 200 million were received.

“Video-lotteries are the future” says Wohlfahrt, “when the machines are connected it is easier to exercise control. We are happy that in Italy the legal situation has been resolved, Novomatic will enter the market by means of its collaboration with the concessionnaires”. It is expected that at least 100 “specialized” arcades will be opened offering video-lotteries from this Austrian company.

However the approach to the Spanish market will be “gradual and cautious”. In the next two years the Group intends to have at least 10-15 slots dedicated to the casino market. A number destined to grow in the next five years.

In Austria however it is taking a long time for the new law on gaming. “We are hoping it will not be much longer” says Wohlfahrt “the industry needs certainties”. For the time being at least it is impossible for Novomatic to access a market that is in the hands of Casinos Austria which manages a total of 900 terminals in 12 gaming houses. The licence granted by the State will expire in 2012, Novomatic then hopes it will be in a position to win the contract.

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