GREECE: BIGGER SLOT OPPORTUNITY

The gambling bill could be yet another new market for slot suppliers

 

 

According to various news agencies, the Greek government has finalized plans for its gambling bill.  It will include a tender for 4 to 10, 10-year VLT licenses - permitting 30,000 VLTs.  This is a significantly larger proposal than the 50,000 total VLTs that was previously reported in the media.  Furthermore, the Greek government could tender additional smaller scale licenses for another 5k VLTs in total. The bill also includes 15-50 internet betting licenses, which will be allocated through an international tender.  Consistent with the thesis as outlined in our recent note "TIS THE SEASON", this was another favorable headline for slots.

 

Additional details:

  1. Qualifying bidders (OPAP is a leading candidate) must operate a company based in Greece or the EU with permanent presence in Greece and capital that exceeds €200k
  2. The minimum drop will be €0.10 and up to €5
  3. The payout for these games will be set at 80%
  4. The tax rate will be 6% of revenues

 

Here is a timeline of the gambling bill:

 

What has happened so far:

  • February 2010: To avoid EU fines, Finance Minister George Papaconstantinou said he will unveil a draft bill to deregulate slot machines, which can currently only be used in casinos.
  • June 2010: Greece finance ministry said in an email that it will soon release a draft law on electronic gaming and Internet betting and that it will be presented for public consultation.
  • July 2010: Skeleton draft detailing tender process was prepared.
  • August 2010: Start of public consultations on regulating gambling
  • Sept 2010: Dialogue on the gaming draft law
  • Jan 2011: Finalization of bill framework

What are the next steps (with tentative dates):

  1. Submission of bill to Parliament (Spring/Summer 2011)
  2. Passage of bill in Parliament (Late 2011)
  3. Bill sent to President Papoulias for promulgation and publication in the Government Gazette (2012)
  4. Setup of new gaming supervising committee (mid-2012)
  5. Tender process (2013)

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more

A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

read more

Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

read more

McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

read more

Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

read more

Jim Rickards Answers the Hedgeye 21

Bestselling author Jim Rickards says if he could be any animal he’d be a T-Rex. He also loves bonds and hates equities. Check out all of his answers to the Hedgeye 21.

read more

Amazon's New 'Big Idea': Ignore It At Your Own Peril

"We all see another ‘big idea’ out of Amazon (or the press making one up) just about every day," writes Retail Sector Head Brian McGough. "But whatever you do, DON’T ignore this one!"

read more