Despite the subpar performance and decreasing revenues reported by D.C. Lottery’s existing mobile sports betting application, GambetDC, the Lottery may continue its collaboration with Intralot, the Greek company that currently powers the mobile betting app. The collaboration between the duo dates back to 2019. At the time, D.C. Lottery signed a five-year partnership with Intralot.

This summer, the contract between the two is expected to end. While critics of GambetDC have repeatedly flagged different concerns related to technical glitches, uncompetitive odds and continuous underperformance, Intralot may retain its partnership with the D.C. Lottery, at least for a short period of time.

Customer dissatisfaction has been growing over the last few years, yet a new report suggests that the D.C. Lottery may prolong its partnership with the Greek betting software developer. Frank Suarez, the head of the Lottery, who was recently cited by Washington City Paper, spoke in front of the Office of Lottery and Gaming on the topic last week.

At the time, he revealed that D.C. Lottery is considering renewing its collaboration with Intralot. This is possible under a policy within the contract that allows renewal of up to five years after the initial contract’s expiration date, which is set for July. “The length of the extension is not clear yet,” explained Suarez.

The Prolonged Collaboration Is a Temporary Solution

Before the expiry of the contract, the D.C. Lottery also hinted at plans to improve GambetDC. This can be achieved by engaging with a third-party company that will improve the sports betting app. The recently announced plan ultimately seeks to strengthen GambetDC, allowing the city to benefit from increased revenues.

D.C. Lottery’s plan to improve the sports betting app may create a new opportunity for operators such as FanDuel, BetMGM or Caesars, for example, to operate the mobile betting app in Washington D.C. Yet, the plan doesn’t sound like the best resolution in the context of the problematic relationship between the Lottery and Intralot, as well as the underperformance of the mobile sports betting application in the city.

Still, according to Suarez, the possibility of engaging with a “top performing, nationally recognized” sports betting operator for GambetDC isn’t a permanent solution. He revealed that this action seeks to offset the dissatisfactory performance of the betting app, while the D.C. Lottery would consider whether to prolong its collaboration with Intralot and for how long. With that in mind, even if the Lottery anticipates ending its business relationship with the software provider, it will need time to prepare the application process for a new supplier.

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The international gaming solutions provider, Intralot, released its latest financial update, uncovering details regarding its performance for the third quarter of 2023. Besides Q3 2023, the latest report shared insights regarding the company’s performance for the nine months ended September 30, 2023.

Intralot’s Q3 2023 revenue hit €104.8 million ($114.5 million). This result, compared to the €96.9 million ($105.8 million) reported for the same quarter in 2022, shows that this year, an increase of 8.1% is observed. On the other hand, gross gaming revenue (GGR) for Q3 2022 halted at €88.1 million ($96.2 million), while this year, it increased by 11.9% to €98.6 million ($107.7 million).

EBITDA in Q3 this year increased as well. The new financial update reveals that Intralot’s Q3 2023 EBITDA hit €38.2 million ($41.7 million). A comparison to the €33.0 million ($36 million) posted for the same period in 2022, shows that during the latest trading period, the company has seen growth of nearly 16% year-over-year.

While Q3 2023 revenue increased year-over-year, the results for the first nine months showed a slight decrease. The new financial report confirmed that Intralot’s revenue for the first nine months ended September 30, 2023, halted at €280.0 million ($305.8 million). This result, compared to the €301.7 million ($329.5 million) figure posted for the same period in 2022, shows a decrease of 7.2%.

While revenue decreased for the first nine months this year, GGR increased by 2.2% hitting €262.2 million ($286.3 million). Similarly, EBITDA for the first nine months of 2023 increased by 14.7% year-over-year, hitting €101.0 million ($110.3 million).

The Company Posted Strong Results, Says CEO and Chairman

Sokratis P. Kokkalis, Intralot’s CEO and chairman, spoke about the latest figures, explaining that the “results demonstrate Intralot’s new strengths returning to NET profits, strong EBITDA growth and cash flow generation, hence fulfilling all the goals we have set out.” He outlined that the company recently completed an important Share Capital Increase by raising funds for a total of €135.0 million ($147.4 million). Finally, Kokkalis said: “I would like to thank all the investors who participated and trusted our vision and capability to deliver even stronger results in the future.”

Another important achievement for the company after the recent trading period was the extension of its agreement with OPAP. Announced back in October, the agreement with OPAP was extended from August 2025 until the end of July 2026. Upon announcing the extended agreement, the duo unveiled that two one-year extensions are also possible.

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Intralot, an international gaming solutions and operations leader, has published its FY 2022 results, showing slight group revenue decrease. Despite the setbacks, the positive annual and quarterly EBITDA changes attested to the effect of the company’s strategy.

Intralot reported FY 2022 group revenue of $428.7 million (converted to USD), marking a 5.1% year-on-year decline. EBITDA, meanwhile, was $134.1 or 11.3% up from FY 2021. EBITDA was very strong in Q4, for example, increasing by 25.1% to $38million.

Intralot also reported annual operating cash flow of $105.1 million, which translates to a YOY decrease of 10.5%.

In spite of certain declines, the gaming specialist was able to wrap up 2022 with lower net debt than the one it had in 2021. For reference, the company owed $542.6 at the end of 2021 and $535.3 at the end of 2022.

Amid the ongoing economic hurdles, Intralot recorded a 3.9% increase in its operating expenses. The company attributed these results to the unfavorable foreign exchange movements.

CEO Kokkalis Praised His Company’s Robust Performance

While certain metrics were lower than in 2021, Sokratis P. Kokkalis, Intralot’s chair and CEO, praised the results, saying that they reflect the company’s robust performance and restructuring efforts. He also mentioned the successful completion of a $140.8 million share capital increase that attracted Standard General, a US-based fund, as a strategic investor. The money helped Intralot regain control of its US subsidiary.

In addition to that, Intralot was able to repay the US-issued 2025 PIK Toggle Notes thanks to a new $230 million term loan from a consortium of US banks and its own cash. Intralot also secured a new revolving credit facility of $50 million.

Kokkalis concluded that Intralot will continue pursuing growth in the United States and beyond.

In the light of our significantly improved position, we look forward to tapping new growth opportunities in the US and the rest of the world as one of the top gaming technology providers worldwide and working towards refinancing the 2024 Notes.

Sokratis P. Kokkalis, chair & CEO, Intralot

Intralot Is Wary of the Economic Headwinds

Intralot concluded that the current period is challenging as inflationary pressures and rising interest rates weigh on economic growth. These headwinds have a direct effect on Intralot Group and since analysts believe that banks will not ease their monetary policy before the end of 2023, the company prepares for a turbulent period.

Intralot concluded that its management is closely following the geopolitical and economic developments. The company is fully prepared to react and protect its operations if needed.

A few days ago, Intralot continued its NA expansion by signing a new deal with the British Columbia Lottery Corporation.

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