Search the website

LOTTOMATICA-SISAL


PRESS RELEASE



PRESS RELEASE

The Competition Authority has begun an investigation into alleged collusion between Lottomatica and Sisal on the gaming and betting market

At its meeting on 16 July 2003 the Competition Authority resolved to commence investigations into the Lottomatica and Sisal companies in respect of alleged collusion between them on the betting and gaming market.
In 2002, the total bets and wagers placed were worth euro 15,600 million, and Lottomatica S.p.A. and Sisal S.p.A. are the two leading bookmakers and commission agents on the market, with market shares of not less than 50 percent and 20 percent, respectively. Evidence available to the Authority suggests that market-sharing agreements may have been concluded between the two companies, in violation of section 2 of the  Competition Act (Law 287/90) prohibiting anti-competitive agreements.
In particular, market-sharing is alleged to relate to the Tris betting segment, and betting on sports events. It is alleged that Lottomatica had facilitated the return of Sisal of the Tris betting market, and had concluded an agreement with Sisal such that the betting shops where the networks of both companies overlapped would also receive Lottomatica bets through the Sisal terminals. Furthermore, there appears to be evidence that the two companies may have agreed on the recent tenders called by the State Monopoly Agency (Amministrazione Autonoma dei Monopoli di Stato) to select franchisees to manage of the betting and wager market, formerly managed by Coni (like the football pools system, Totocalcio).
The Authority also considers that the collusion between Lottomatica and Sisal might also include a broader market-sharing plan covering the whole of the betting and gaming market. The strategy decided between them could be designed, on the one hand, to prevent the entry of other operators onto the market, and secondly to hamper the growth of the betting market.
The purpose of the Authority's investigation is to ascertain whether the conduct by Lottomatica and Sisal on the Tris market and on the sports betting market, as well as the possible existence of a broader anticompetitive plan, constitutes an agreement to limit competition.
The investigation will end by 30 November 2004.

Rome, 24 July 2003