OPAP Takes Loan for Lotto License and Online Casino Monopoly
The Greek Organization of Football Prognostics SA (OPAP) is the largest betting firm in Europe. The public company (Public, ATH:OPAP), based in Athens, is responsible for managing sports betting and the numerical lottery in Greece.
Unlike the Greek government, which is currently in debt and fighting to regain its economic footing, OPAP appears to be moving forward without many worries. However, the company has faced some rough times as of late. The organization recently took out a loan of roughly 300 million Euros from several local banks.
With this money, the company plans on expanding into other parts of Europe. Additionally, the loan was necessary for recent purchases including an exclusive video lotto license from the Greek government as well as a 20 year renewal of its online casino monopoly.
Yannis Spanoudakis, OPAP CEO, seems pleased with the financial direction of the company. “We have finalized with Greek banks a syndicated unsecured facility of Euro 300 million maximum; most likely it may be lower.”
Although Greek companies have found it difficult to raise money from foreign countries (due to the country’s economic crisis), OPAP may consider reaching out in the near future to gain stability and security.
Despite the fact that OPAP is forging ahead, the company must be slightly concerned about the gambling decline observed in the Greek market. As a result, the company saw a 16 percent decrease in quarter 3 profit. Along with this, experts are predicting more of the same in 2012.
With its recent loan, OPAP is showing the Greek government, as well as the rest of the world, that the company is poised to move forward and continue its dominance in the European market.