The Outline
As part of Greece's broader privatization program, led by the HRADF, the state lottery license was identified as a significant public asset for privatization. The license allowed private entities to manage lottery operations, presenting an opportunity to boost public revenues and modernize the lottery sector through private-sector efficiencies.
Our expert consulting team was engaged as commercial and technical advisors to guide HRADF through this complex privatization process, ensuring the transparency, competitiveness, and economic viability of the lottery concession.
The project aimed at creating a structured framework to maximize the license's value while ensuring fairness and regulatory compliance. Key objectives included:
- Conducting an in-depth analysis of the lottery market dynamics in Greece.
- Estimating potential revenues and market opportunities relative to other gaming sectors, including casinos and betting.
- Defining fair and competitive concession terms to safeguard public interests and player fairness.
- Establishing a transparent and regulated gaming environment aligned with international standards.
The Road to Privatization
Throughout the 8-month engagement, our advisory team carried out comprehensive assessments and strategic analyses:
Market & Financial Analysis: Evaluated the potential income from lottery sales and benchmarked payout rates against European counterparts to define fair return percentages for players.
Strategic Concession Framework: Developed a regulatory model ensuring at least 65% of revenues would return to players, while structuring terms to achieve adequate financial returns for the state and operational viability for the concessionaire.
Operational Transparency & Compliance: Recommended best practices for random number generation and supported the establishment of the Hellenic Gaming Commission to oversee and ensure compliance with fair gaming practices.
Tender Support: Assisted HRADF throughout the competitive tender process, validating bidder compliance with concession terms and supporting the evaluation committee in protecting public and player interests.
Our approach ensured transparency, fairness, and significant revenue enhancement for Greece, setting a new benchmark for regulated lottery operations.
Ensuring Integrity and Economic Efficiency
The strategic privatization initiative led to a successful concession arrangement, securing significant financial returns for the Greek state while establishing a robust regulatory framework. The implemented strategy ensured:
- Transparent and regulated lottery activities with fair returns for players.
- Enhanced state revenue generation critical during Greece’s economic recovery efforts.
- Alignment with international gaming standards and practices.
This case study underscores the pivotal role of strategic, expert-led advisory services in achieving successful privatization outcomes, balancing financial optimization with regulatory integrity.
