Italian Operations

Lottomatica is the largest operator in the lotteries sector and leader in the gaming market in Italy. In its capacity of operator, the Company addresses directly the end customers, consisting of players and individual customers by offering a broad portfolio of games and services. The Italian sector is subdivided into five business lines: lotteries, sports betting, gaming machine, interactive games and commercial services.
For the management of games and services, Lottomatica has developed within Italy a large online real-time distribution network, with 283,916 terminals in 113,808 points of sale, including tobacconists, bars, gas stations, newsvendors and highway rest stop snack bars. Lottomatica's network in Italy managed for games and services a total of over 8.8 billion transactions for a transactions value of EUR 37.9 billion with a significant growth compared to 2010. The Italian operation segment posted in 2011 revenues for EUR 1,879,324,000.


THE GAMING NETWORK

The points of sale in Lottomatica's network that offer gaming represent approximately 71% of the network total and are characterized by high product diversification of the distribution channels. The composition of the network comprises a prevalence of tobacconist shops and bars, supplemented by news kiosks, post offices, betting agencies, points of sale for organized food and drink services, gas stations, major organized distribution and ships. The gaming network ensures a capillary presence throughout the Italian territory.
The capabilities of Lottomatica's network applied to gaming allow it to hold a leadership position in its market. Regarding operations in Italy, the Group holds in its game portfolio: Scratch and Win, Gioco del Lotto, 10eLOTTO, sports betting, traditional lotteries and amusement machines (VLT and AWP), as well as remote-access interactive games.


SERVICE NETWORK

Lottomatica offers a vast range of services through a plurality of technological solutions, each specifically indicated for dispensing the broad array of offered services: bank POS with "reengineered" software to dispense recharging and payment services, LISprinter for the sale of revenue stamps, gaming terminals reserved to the distribution of more complex services such as, for instance, ticketing, INPS services and prepaid cards, BCR readers for a faster and more secure acquisition of bar code data. The network's real time interconnection ensures a high level of transaction reliability.
Lottomatica is an alternative to the traditional channels such as post offices and banks and it is increasingly becoming the point of reference for the average person, with a network of 65,000 points of sale and 33,236 machines for printing revenue stamps (+1.8% compared to last year). Lottomatica's offer is also characterized by the use of a broad range of payment tools, from cash to PagoBancomat, which represents the most used and widespread monetic tool in Italy. Advantageous conditions are given for payment with the Lottomaticard, Lottomaticard Easy, Paypal and Starscard prepaid cards. Lottomatica has a product portfolio of over 100 services subdivided into four macro-categories: payments, recharging, ticketing and prepaid cards.