Intralot
{{Short description|Greek gambling services company}}
{{Infobox company
| name = INTRALOT S.A. – Integrated Lottery Systems & Services
ΙΝΤΡΑΛΟΤ A.E. – Ολοκληρωμένα Πληροφοριακά Συστήματα & Υπηρεσίες Τυχερών Παιχνιδιών
| logo = Intralot.svg
| logo_size = 220px
| type = Anonymi Etairia
| traded_as = {{Athex|INLOT}}
| foundation = 1992
| location_city = Athens
| location_country = Greece
| key_people = Nikolaos Nikolakopoulos (Group CEO){{cite news |url=https://lafleurs.com/news/vendor/2024/12/20/richard-bateson-appointed-new-ceo-of-intralot-inc-usa/|title=Richard Bateson Appointed New CEO of INTRALOT, Inc. USA |work=la fleur's|publisher=TLF Publications|access-date=April 1, 2025}}
Richard Bateson,
US CEO
| industry = Lottery and Sports Betting industry
| revenue = €364 million (2023){{cite web|website=intralot.com|access-date=25 November 2024
|url=https://www.intralot.com/files/PR_FY23_EN_Final.pdf|title=Intralot Group announcement of financial results for the twelve-month period ended December 31st, 2023}}
| operating_income = €348.6 million (2023)
| net_income = €33.6 million (2023)
| assets = €588.7 million (2023)
| equity = €333.2 million (2023)
| owner = CQ Lottery LLC (32.9%)
Sokratis Kokkalis (32.42%){{cite web | url=https://www.athexgroup.gr/company-profile/-/select-company/748 | title=Profile - athexgroup.gr }}
|subsid = Maltco
Intralot Inc. (USA)
CyberArts
Bit8
| homepage = [https://www.intralot.com/ Intralot.com]
}}
INTRALOT is a Greek company that supplies integrated gambling, transaction processing systems, game content, sports betting management and interactive gambling services, to state-licensed gambling organizations worldwide. The company acts both as a lottery vendor and a lottery operator. It has a presence in 39 countries and a workforce of approximately 1,700 people as of 2022.{{cite web | url=https://www.intralot.com/newsroom/intralot-announces-full-year-2023-financial-results/ | title=INTRALOT announces Full Year 2023 Financial Results }}{{cite web|url=http://www.world-lotteries.org/cms/index.php?option=com_content&task=blogcategory&id=76&Itemid=85 |title=Home - World Lottery Association |website=World-lotteries.org |date= |accessdate=2017-01-14}} It is a publicly listed company in the Athens Stock Exchange.{{cite web |url=http://www.ase.gr/content/en/Companies/ListedCo/Profiles/Profile.asp?CID=748 |title=Athens Exchange |website=Ase.gr |date= |accessdate=2017-01-14 |archive-url=https://web.archive.org/web/20170618210649/http://www.ase.gr/content/en/Companies/ListedCo/Profiles/profile.asp?CID=748 |archive-date=2017-06-18 |url-status=dead }} The company has drawn controversy and law suits during the past two decades; in 2025, Intralot was fined $6.5 million for fraudulently obtaining and operating a five-year D.C. Lottery contract.
History
Intralot originated as a spin-off of the Intracom group, owned by the Greek billionaire Sokratis Kokkalis. It originally provided infrastructure for the Greek National Lottery (OPAP), under a 1999 contract, but has since expanded its operations into a worldwide market. Intralot's games library includes a variety of games such as numerical games, TV lottery games, sports lotteries, fixed odds betting, instant lotteries, pari-mutuel, video lottery and monitor games.{{Cite web|url=http://www.lotteryinsider.com/vendors/intralot.htm|archive-url=https://web.archive.org/web/20010710104118/http://www.lotteryinsider.com/vendors/intralot.htm|url-status=dead|archive-date=July 10, 2001|title=Intralot|date=July 10, 2001}}
In December 2009, Intralot announced purchasing 35% of the American online games provider CyberArts, purposing to expand its subsidiary company, Intralot Interactive (I2).{{Cite web|url=http://www.backgame.com/online-backgammon-news-december-2009.html|archive-url=https://web.archive.org/web/20110707203722/http://www.backgame.com/online-backgammon-news-december-2009.html|url-status=dead|archive-date=July 7, 2011|title=Online Backgammon News – December 2009 | Online Backgammon | Backgammon for Money|date=July 7, 2011}} In October 2011, Intralot concluded the sale of its minority stake in CyberArts, as per the Group's decision not to exercise the option to increase its participation to 51% and focus on its own technology and services.{{cite web|url=http://www.world-lotteries.org/cms/index.php?option=com_content&view=article&id=4024%3Aintralot-sells-its-minority-stake-in-cyberarts-a-advances-new-generation-technology&catid=21&Itemid=100215&lang=en |title=Home - World Lottery Association |website=World-lotteries.org |date=2017-01-01 |accessdate=2017-01-14}}
During ICE Totally Gaming 2015 the company announced that it will acquire a stake of 25% of Bit8.{{cite web|url=http://www.casinonewsdaily.com/2015/02/04/intralot-acquires-25-stake-bit8/|title=INTRALOT Acquires a 25% Stake in Bit8|work=Casino News Daily|date=4 February 2015|accessdate=8 October 2015}} In December 2017, Intralot completed its acquisition of Bit8, enabling its digital transformation strategy for lottery modernisation.{{cite news|title=Intralot to acquire remaining stake in Bit8|url=http://www.igamingbusiness.com/news/intralot-acquire-remaining-stake-bit8|publisher=igamingbusiness.com |date=20 October 2017 |accessdate=4 June 2018}}
Controversies
{{Expand section|date=February 2025}}
=Romanian lottery=
In May 2008, Intralot was implicated in the criminal investigation of Romanian Politician Christian Boureanu for "abuse of office against the public interest" by the National Anticorruption Directorate for Boureanu's role in signing a contract in 2000 between Loteria Română and Intracom SA Hellenic Telecommunication Electronics Industry (Intralot Integrated Lottery Systems and Services) that caused Loteria Română to incur losses of over €120 million.{{Cite web|url=https://translate.google.com.au/translate?sl=auto&tl=en&u=https://www.gandul.info/stiri/deputatul-boureanu-anchetat-pentru-informatizarea-cu-ghinion-a-lui-6-49-2584363|title=Google Translate|website=translate.google.com.au|access-date=2019-03-05}}
In January 2014, the Romanian competition council (Consiliul Concurenței) found that state-owned Loteria Română had contracted with Intralot, Intracom, and Lotrom, greatly limiting competition on Romania's video lottery equipment market during the preceding decade. Loteria Română and the companies were fined a total of €3.7 million for contravening competition rules.{{Cite web|url=https://seenews.com/news/romanian-anti-trust-regulator-fines-four-cos-over-video-lottery-programme-1043406|title=Romanian anti-trust regulator fines four cos over video lottery programme|access-date=2025-02-28|website=seenews.com|date=22 January 2014 }}
In early 2015, it was further revealed that Loteria Română had entered into a secret contract with Lotrom in 2003 to purchase over six thousand slot machines. Intracom and Intralot financed the arrangement, acquiring the lottery’s slot machines revenues in exchange. All three companies were found to be under the control of Greek businessman Sokratis Kokkalis, according to RISE Project. Since Loteria Română authorized the machines for video-lottery services, a different taxation was applied, resulting in the €100 million damage to the state. Prosecutors launched a fraud investigation and blocked the lottery’s accounts.{{Cite web|url=https://www.romania-insider.com/romanian-lottery-investigation-fraud|title=Media: Romanian prosecutors investigate public lottery for fraud|access-date=2025-02-28|website=romania-insider.com|date=8 April 2015 }}{{Cite web|url=https://www.riseproject.ro/investigations/uncategorized/loteria-romana-anchetata-pentru-frauda/|title=Loteria Română, anchetată pentru fraudă|access-date=2025-02-28|website=riseproject.ro|lang=RO}}
=Washington, D.C. lottery=
In February 2019, the D.C. Council had authorized a sole-source contract for sports betting throughout Washington, D.C. with Intralot, operator of the D.C. Lottery, to include online sports betting.{{Cite web|url=https://www.washingtonpost.com/local/dc-politics/dc-council-approves-sole-source-sports-betting-contract-aid-to-federal-workers/2019/02/05/8d672494-295c-11e9-b011-d8500644dc98_story.html|title=D.C. Council approves sole-source sports betting contract, aid to federal workers|newspaper=Washington Post|language=en|access-date=2019-03-30}} D.C. Council member Jack Evans was widely criticized for advocating for the legislation, which passed in mid-July,{{cite news |url=https://campaignlegal.org/update/dc-council-member-jack-evans-shows-us-all-why-conflict-interest-laws-are-important/|title=DC Council Member Jack Evans Shows Us All Why Conflict Of Interest Laws Are Important |website=Campaign Legal Center|access-date=April 1, 2025}} that would awarded the $215 million five-year monopoly on mobile-based sports wagers to the lottery operator, without disclosing his business{{cite web |url=https://washingtoncitypaper.com/article/182011/the-ties-between-dc-councilmembers-and-sports-betting-lobbyists/|title=Mapping the Ties Between D.C. Councilmembers and Sports Betting Lobbyists|website=Washington City Paper|access-date=April 1, 2025}} or long-term personal relationship with Intralot lobbyist William "Bill" Jarvis.{{cite web |url=https://dccouncil.gov/wp-content/uploads/2019/11/Final-Report-of-Investigation-of-Councilmember-Jack-Evans-Nov.-4-2019__redacted.pdf|title=REPORT OF INVESTIGATION OF COUNCILMEMBER JACK EVANS PURSUANT TO JULY 9, 2019 D.C. COUNCIL RESOLUTION 23-175 |page=31|access-date=April 1, 2025}}
Temporarily blocked in September 2019, when an injunction was issued against the sole-source Intralot contract; the injunction was denied by the judge the following month, and the contract was allowed to move forward. A related lawsuit under the Home Rule Act filed against the District over the awarding of the contract without competition remained pending.{{cite news |last1=Thompson |first1=Steve |title=Court denies injunction against District's no-bid sports gambling contract, dealing critical blow to legal challenge |url=https://www.washingtonpost.com/local/dc-politics/court-denies-injuction-against-districts-no-bid-sports-gambling-contract-dealing-critical-blow-to-legal-challenge/2019/10/18/95604e10-f1b5-11e9-89eb-ec56cd414732_story.html |access-date=14 April 2021 |newspaper=Washington Post |date=9 October 2019}}
The maligned 2019 D.C. contract had granted Intralot the right to development of the city’s official sports-betting App, which it launched in 2020. In 2022, Intralot’s App failed during the Super Bowl, resulting in $500,000 in compensation paid to D.C. Lottery by Intralot.{{cite news |url=https://dcist.com/story/22/02/14/dc-sports-betting-app-failed-super-bowl/|title=D.C.’s Troubled Sports-Betting App Didn’t Work During The Super Bowl|work=DCist|publisher=WAMU |access-date=April 1, 2025}}{{cite news |url=https://dcist.com/story/22/04/08/dc-get-compensation-for-sports-betting-app-mishap/|title=Sports-Betting App Pays D.C. $500,000 Over Super Bowl Mishap |work=DCist|publisher=WAMU|access-date=April 1, 2025}}
On January 14, 2025, Attorney General Brian Schwalb announced that Intralot, and its subcontractor, Veterans Services Corporation (VSC), would pay restitution totaling $6.5 million for its fraudulent operation of a type of shell game{{cite web |url=https://washingtoncitypaper.com/article/756194/the-companies-behind-d-c-s-sports-betting-deal-will-pay-6-5-million-over-charges-they-misled-regulators/|title=The Companies Behind D.C.’s Sports Betting Deal Will Pay $6.5 Million Over Charges They Misled Regulators|website=Washington City Paper|access-date=April 1, 2025}} meant to deceive city officials, in order to:{{cite web |url=https://oag.dc.gov/release/attorney-general-schwalb-secures-65-million|title=Attorney General Schwalb Secures $6.5 Million from Lottery and Sports Betting Contractor and Subcontractor for Defrauding the District|website=Office of the Attorney General of the District of Columbia|access-date=April 1, 2025}} win the District’s lottery and sports betting contract; obtain related payments; and appear compliant with District law requiring any firm securing a large public contract to subcontract to small local businesses in order to grow the local economy.{{cite news |url=https://www.washingtonpost.com/local/dc-politics/the-little-firm-that-got-a-big-chunk-of-dcs-sports-gambling-contract-has-no-employees/2019/08/28/af5daf84-afd3-11e9-8e77-03b30bc29f64_story.html|title=The little firm that got a big chunk of D.C.’s lottery and sports gambling contract has no employees |work=The Washington Post|access-date=April 1, 2025}} VSC was revealed to have no employees. Intralot and VSC were found to have conspired in an "elaborate scheme" to secure the contract, with VSC receiving over half of D.C.’s lottery and sports gambling contract proceeds,{{cite news |url=https://www.washingtonpost.com/dc-md-va/2025/01/14/dc-gambling-intralot-sports-betting-settlement/|title=D.C.’s sports betting flop ends in $6.5 million settlement, fraud accusations|work=The Washington Post|access-date=April 1, 2025}} and then funneling funds back to Intralot, which will pay $5 million of the $6.5 million settlement.
=Montana state lottery=
Allegations of a "sweetheart deal" between Montana State Lottery and its long-time vendor Intralot emerged in 2024.{{Cite news|url=https://helenair.com/news/state-regional/government-politics/sweetheart-deals-and-a-power-struggle-at-montana-lottery/article_8ef99b68-bd79-11ef-81d3-67341ea077d0.html|title='Sweetheart deals' and a power struggle at Montana Lottery|work=Independent Record|access-date=April 1, 2025}} During March and September 2024, the Montana State Lottery Commission instructed Lottery Director Bob Brown and staff to send out requests for new proposals (RFPs) for the $50 million contract.{{Cite news|url=https://dailymontanan.com/2025/02/18/montana-legislature-rushes-to-close-lottery-loophole-as-governors-team-blamed-for-halted-bidding/|title=Montana Legislature rushes to close 'lottery loophole,' as governor’s team blamed for halted bidding|work=Daily Montanan|publisher=States Newsroom|access-date=April 1, 2025}} In 2025, the Commission came under fire for sidestepping a competitive and transparent bidding process; on February 5, Brown appeared before the Joint Appropriations Subcommittee on General Government at the Montana Legislature and was grilled over persistent delays and the Montana Lottery's avoidance of the bidding process.{{Cite news|url=https://www.ktvh.com/news/montana-lottery-will-put-its-largest-contract-out-to-bid-after-considering-sidestepping-the-process|title=Montana Lottery will put its largest contract out to bid after considering sidestepping the process|work=KTVH|access-date=April 1, 2025}} One month later, amid on-going investigations, Montana Lottery cancelled its negotiations with Intralot to pursue competitive bidding.{{Cite news|url=https://helenair.com/news/state-regional/government-politics/article_8bc70f1e-fad4-11ef-93c6-5fa61226ca03.html|title=Montana Lottery abandons negotiations with vendor, will pursue competitive bid for contract|work=Independent Record|access-date=April 1, 2025}}
Operations
The National Lottery of Malta, privatised in 2004, twice awarded sequential concessions, each spanning a decade, to Maltco, in which Intralot holds the majority stake.{{Cite web|url=https://theshiftnews.com/2021/09/29/alarm-raised-over-lottolands-interest-in-maltas-national-lotteries-bid/|title=Alarm raised over Lottoland's interest in Malta's National Lotteries bid|access-date=2025-02-28|website=theshiftnews.com}} Expired 4 July 2022, the concession was then awarded to Izi Group subsidiary{{Cite web|url=https://timesofmalta.com/article/izi-finance-plc-registers-record-gross-gaming-revenue-856m.1099991|title=IZI Finance plc registers record gross gaming revenue of €85.6m|access-date=2025-02-28|website=timesofmalta.com|date=24 October 2024 }} National Lottery plc.{{Cite web|url=https://www.casinoreviews.net/news/national-lottery-plc-takes-over-maltese-operations/|title=National Lottery PLC Takes Over Maltese Operations|access-date=2025-02-28|website=casinoreviews.net|date=10 May 2023 }}
In December 2016, as its 2007 contract was ending; Intralot signed its second 10-year contract with Idaho Lottery in the US, that will come into force in October 2017 and last until October 2027, extendable by up to five or ten years.{{Cite web|url=https://idahobusinessreview.com/2017/03/06/idaho-lottery-enters-into-new-contract-with-service-provider/|title=Alarm raised over Lottoland's interest in Malta's National Lotteries bid|access-date=2025-02-28|website=idahobusinessreview.com|date=6 March 2017 }}
In February 2018, Intralot announced that they had agreed a 10-year deal worth an estimated $340 million with the Illinois State Lottery. The deal will cover the installation of operational technology in over 7,500 retail locations across the US state.{{cite news|title=Intralot brokers $340m deal with Illinois State Lottery|url=http://www.igamingbusiness.com/news/intralot-brokers-340m-deal-illinois-state-lottery |publisher=igamingbusiness.com |date=5 February 2018 |accessdate=5 February 2018}}
On March 1, 2019, Intralot's joint venture with Inteltek lost its 15-year contract to control Turkey's Iddaa national sports betting monopoly to Sans Girisim, a joint venture between Scientific Games and Turkish conglomerate Demirören Group.{{cite news |url=https://igamingbusiness.com/lottery/intralot-founder-takes-on-ceo-role-following-kerastaris-departure/|title=Intralot founder takes on CEO role following Kerastaris departure |work=IGB|publisher=iGaming Business|access-date=April 1, 2025}}{{cite journal |title=Big Game Hunting |journal=Gaming Intelligence |date=April–June 2019 |pages=48–49 |url=https://issuu.com/gamingintelligence/docs/giq37/48 |access-date=14 April 2021}}
Membership and recognition
Intralot is a member of international gambling associations, including the World Lottery Association (WLA), European Lotteries (EL), the North American Association of State & Provincial Lotteries (NASPL) and CIBELAE (the Hispanic association that covers S. America and the Iberian peninsula), as well as the Gaming Standards Association (GSA) in the US and the Asia Pacific Lottery Association (APLA).
Intralot was named one of the World Economic Forum's "New Champions", as it was listed in its "Global Growth Companies Community" in 2007.{{Cite web|url=http://www.weforum.org/en/events/ArchivedEvents/AnnualMeetingoftheNewChampions2008/WhoaretheNewChampions/index.htm|archive-url=https://web.archive.org/web/20090109051344/http://www.weforum.org/en/events/ArchivedEvents/AnnualMeetingoftheNewChampions2008/WhoaretheNewChampions/index.htm|url-status=dead|archive-date=January 9, 2009|title=World Economic Forum - Who are the New Champions|date=January 9, 2009}}
Intralot received a "Global IT Excellence Award 2008"{{cite web |publisher=World Lotteries Organization|url=http://www.world-lotteries.org/cms/index.php?option=com_content&task=view&id=3142&Itemid=30 | title= "Prestigious "Global IT excellence" award to INTRALOT |accessdate=2008-10-16}} by the World Information Technology and Services Alliance (WITSA) during its 16th World Congress on Information Technology (WCIT 2008),
{{cite web |publisher=WITSA|url=http://www.wcit2008.org/|title=16th World Congress on Information Technology|accessdate=2008-10-16}} Kuala Lumpur, Malaysia.
Betting Company, a subsidiary of Intralot that operated sports betting in 12 countries, signed a cooperation agreement with FIFA's Early Warning System for the protection of the integrity of football.{{cite web |url=https://www.fifa-ews.com/index.php?action=view&viewid=19761218264964db21a7d95&PHPSESSID=uko3n7er65buhvbirc7tf2rlv4 |title=Early Warning System GmbH - Home |website=Fifa-ews.com |date= |accessdate=2017-01-14 |archive-url=https://web.archive.org/web/20120723104453/http://www.fifa-ews.com/index.php?action=view&viewid=19761218264964db21a7d95&PHPSESSID=uko3n7er65buhvbirc7tf2rlv4 |archive-date=2012-07-23 |url-status=dead }}