LOTTOMATICA/TOTO 2000-BETTING SERVICE-RAMO DI AZIENDA DI EIS-ELETTRONICA INGEGNERIA SISTEMI
PRESS RELEASE
PRESS RELEASE
The Competition Authority is investigating Lottomatica in the gaming and betting industry
At its meeting on 15 May 2002, the Competition Authority resolved to commence an investigation into the Lottomatic Spa, Lottomatica Sistemi Spa, Toto2000 Srl, Betting Service Srl and EIS-Elettronica Ingegneria Sistemi Spa companies to ascertain whether the dominant position of Lottomatica will be strengthened on the gaming and betting market.
The proceeding began as a result of the acquisition notified to the Authority in relation to the take-over by Lottomatica Spa, through its subsidiary Lottomatica Sistemi Spa, of the 'gaming' business of EIS-Elettronica Ingegneria Sistemi Spa, and the acquisition of the sole control of Toto2000 Srl and Betting Service Srl.
The relevant market is the management and organisation of gaming and betting: the turn-over from betting in 2001 was over 28,128 billion lire (approximately 14.5 billion euro) and the market is characterised by substantial barriers caused by the current concessions system. Lottomatica has a market share of about 54%, which is considerably higher than the second largest operator, with a share of around 20%. There is therefore evidence that suggests that Lottomatica has a dominant position on the betting market.
As a result of the aforementioned acquisitions, Lottomatica intends to take over the business currently being run by the companies to be acquired on the horse racing and sports betting markets under the 'Strike!' mark. In this way Lottomatica would extend its operations on the betting market to cover the horse racing and sports betting market as well.
In the opinion of the Authority these acquisitions could strengthen Lottomatica's dominant position on the relevant market.
This strengthening of its position on this market would be likely to limit competition on the same market because it would shield Lottomatica even more strongly from the pressure of competition, which would be detrimental to the supply conditions and create disadvantages to consumers.
The investigation will end within forty-five days of the date of commencement.
Rome, 18 May 2002