National Lottery's privatization up for auction again

With the National Lottery on its way to auction once again, Finance Minister Naci Ağbal said the auction is slated for May 6, with first bids due on Aug. 5.

Speaking at a press conference regarding the privatization process, Albağ said the necessary procedures were completed in order to hand over the 10-year royalty of the chance games.

According to Ağbal, the license evaluations were approved at a Cabinet on Monday, and the auction would be held on May 6 while the first bids would be submitted on Aug. 5. The previous bidding was planned as a franchise transfer; however, the new royalty bidding was organized as private law contract bidding.

Recalling that important changes were made to the specification for the new bidding, Ağbal said the one drawing right for the same game increased to two with the new bidding. The new regulations will increase participation in the auction, and the bidding company will be able to pay the company a 20 percent advance payment .

Ağbal pointed out that right of mortgage was executed for the equities, and an important regulation was carried out for the investors to find funds. If the participants cannot meet the bidding requirements, they will be able to get operatorship services, and this has to be presented as a pre-qualification.

Stressing that they were expecting a sufficient turn-out for the auction, Ağbal said the National Lottery could not organize new chance games, and they would keep their task of inspection.The auction will be held in dollars, but the investors can pay in dollars or Turkish Lira, and they can also increase the number of games, but the gaming conditions will be subjected to the National Lottery's approval, according to Ağbal.

According to Ağbal, at least TL 10 billion ($3.5 billion) in privatization income will be managed this year. During the first quarter, a seasonal increase was observed in social security transfers, and regarding this year's expenses, an increase beyond the estimated budget is out of the question. Ağbal said despite the lack of new privatization contracts during the first quarter, there were some privatization agreements approved by the High Board of Privatization (ÖYK); these are installments from 2015 and previous years.

Although Ağbal announced in January that the National Lottery would be privatized, some steps had already been taken previously. With the High Board of Privatization (ÖYK) decision on Sept. 12, 2003, a mechanism for privatizing the lottery was launched, and the first bid was made on May 7, 2009. The bidders did not raise the funds offered at auction, so the bidding was canceled. The second auction was held on July 15, 2014, and the highest offer, which was $2.755 billion, plus value-added tax, was made by Net Sans-Hitay OGG. Payment was due on April 15, 2015, but Net Sans-Hitay OGG could not raise the necessary funds.