Greece may not sell its full stake in gaming monopoloy OPAP (operator of lotteries and sports betting), but it still plans to meet revenue targets set by the EU and the IMF.
The country, which continues to suffer with massive debts, had agreed to sell its 34 per cent stake in Europe’s biggest betting company in the fourth quarter of this year, as part of a drive to raise €50bn from privatisations by 2015.
However, according to online reports, Greece might not sell the stake because there could be alternative ways to raise money from the company. "We have not pledged to sell OPAP; we have pledged that we will have revenues from OPAP (to reduce) the public debt," finance minister Evangelos Venizelos told lawmakers. "The cabinet will appraise what is the best way to raise the revenues targeted."
Venizelos said a draft gaming law will considerably strengthen OPAP and the premium that goes with appointing the management of the company, which the government currently does through its controlling stake.
"This premium is very large," Venizelos said. "OPAP’s value is not only its shares but also the value of exercising its management."
He also said the government expected to raise about €400m from extending OPAP’s licence, which currently expires in 2020. Unlike most of the assets earmarked for sale in Greece’s privatisation plan, OPAP is debt-free and profitable. The state’s 34 per cent stake has a market value of about €1.17bn.
As part of measures to boost OPAP’s value, Venizelos said that it will receive an exclusive licence to operate all the 35,000 VLTs to be set up in the country as part of gaming liberalisation. OPAP will operate 16,500 of these machines itself and sub-contract the rest to between four and 10 other operators.
