Privatisation of Spanish State Lottery Underway

 

The move to privatise Spain's state owned Loterías y Apuestas del Estado will get underway later this week.

The privatisation is expected to raise 8 Billion euros in much needed revenue for the Government whilst it struggles to reduce its deficit and restore investor confidence.

The entire procedure will be completed by the end of October.

Of the 30 per cent being sold off by Madrid, around half will be sold off to institutional investors, and the other half sold to Spanish retail investors.

Once the initial public offering (IPO) the new Loterías entity will be required to pay corporate taxes for the first time. This will vary according to the game being played with some, such as the company's football pools operations, likely to be taxed at a higher rate than its lottery ticket sales.