OPAP monopoly extension approved by European Commission
Operator permitted to extend its exclusive rights to offer 13 games of chance and VLT concession.
The European Commission has given OPAP the green light to extend its exclusive right to operate 13 games of chance in Greece until 2030 and license to operate 35,000 video lottery terminals until 2022.
The Greek monopoly, which is subject to an international tender process for the government’s 33% share, will pay an “adequate fee” to maintain these exclusive rights and will therefore receive “no undue economic advantage” according to the EU.
EU competition commissioner Joaquin Almunia said in a statement: “Greece has cooperated fully with the commission to ensure that OPAP will not benefit from any undue financial advantage through the prolongation of its exclusive rights and its license for video lottery terminals. This allows for a timely privatisation of the gambling operator.”
The decision will be a welcome boost for OPAP, whose monopoly status has come under increasing pressure from industry groups and regulators.
Last month an advocate general at the European Court of Justice released an opinion which states that the operator should not be allowed to continue its monopoly in Greece because it is using its protected position to expand, while the Remote Gambling Association (RGA) has urged those responsible for the sale of Greece’s stake in OPAP to make bidders aware of several legal complaints concerning the operator’s preferential treatment by the Greek government.
The RGA’s letter sets out three complaints currently lodged with the EC which could have a material effect on the future value of OPAP.
Last month OPAP’s share price drop by a fifth in a single day last month when the Greek government announced plans to set a new 30% levy on gross earnings from all its games and a flat 10% rate on all player winnings from 1 January 2013.