The Republic of Georgia is looking for someone to manage its national lottery and extend the lottery’s reach into the online and mobile spheres.
This week, Georgia’s Ministry of Finance announced it was accepting proposals from companies interested in a 10-year exclusive license to organize and conduct lottery operations in Georgia. Interested bidders must submit their proposals (along with a US $5m bank guarantee) by Dec. 12, 2016.
The tender documentation states that the winning bidder will be determined by its “understanding of the Georgian lottery market.” The winner must also have a history of operating a commercial lottery, with proof that these operations generated sales of not less than GEL 350m (US $149m) over the past five years.
Another criteria for determining the winning bidder will be “who will offer the highest payment” to the state budget. The government expects the operator to make quarterly payments equal to 8% of total lottery sales, with a minimum payment of $5m.
The tender states that the winning bidder must detail plans to provide a comprehensive retail distribution network comprising “up to 950” outlets. The lucky operator should also provide “an attractive variety of games” that “appeal to various segments of the market while still maintaining a common identity of the lottery.”
The tender isn’t specific on what type of online products the winning bidder will be allowed to offer Georgians. But bidders must outline “digital channel/technology trends” and describe how games will be delivered to players via online and SMS channels. Bidders must also provide strategies for developing a variety of game categories, including “sports”.
Georgia, which has a population of only around 3.7m, originally privatized its lottery management in 2009, handing control to the Georgian Lottery Company. Two years later, the state-owned postal service took the lottery’s reins. Now international operators are being given a chance to run the show.
