The Albanian government is apparently once again facing a new tender for the concession to operate the national lotteries – an issue that has attracted attention several times in the past.

Review: Award to Austrian companies

Back in 2012, Austrian Lotteries was selected by the Albanian Ministry of Finance as the operator of the state lottery “Lotaria Kombëtare” through a public tendering process. The company won the license at the time in a tender-specific process in which various applicants participated. Later, this lottery operation, including the Albanian subsidiary, was taken over by Novomatic, another large Austrian gaming group, after Novomatic had completely acquired the lottery subsidiary in 2016.

Why it is now getting exciting again

Since the original license period was ten years, a new tender or concession renewal is now on the table in Albania. Internationally renowned operators such as IGT (formerly GTech) from the USA, Scientific Games, and other large gaming companies are expected to keep an eye on this tender. (Note: current media reports on specific applications are not currently available to the public – demand is derived from industry knowledge and general market mechanisms). Unlike previous awards, the Albanian government wants to ensure a proper, transparent, and compliant tender process, according to background discussions in the media. One reason for this is that in recent years, the fight against corruption and abuse in government tenders has increasingly become a focus of government authorities in Albania, including the SPAK (Special Prosecution Against Corruption and Organized Crime).

Fighting corruption and political sensitivity

The SPAK was established as part of judicial reform to specifically prosecute high-level corruption and organized crime. Its influence has recently been strengthened, and the requirements for public procurement behavior are therefore higher than before. Against this backdrop, the new lottery tender is under particular scrutiny, with the clear aim of avoiding unfair favoritism or lack of transparency, as has been criticized in other tendering cases in Albania. Such tendencies have already sparked political controversy in the past, such as allegations of discriminatory criteria or lack of transparency in the awarding of licenses.

Market and potential bidders

Some of the largest global gaming providers—including IGT from the US, Novomatic, Scientific Games, and other major international lottery and gaming companies—could be interested in a concession if it is officially put out to tender. Licenses for state lotteries usually include extensive operating rights over several years and are considered lucrative but also highly regulated business areas.

The upcoming re-tendering of Albanian lotteries is a classic example of the intersection between business, politics, and the rule of law: on the one hand, an economically powerful market attracts international players, while on the other hand, transparency and fair competition are at the heart of government efforts. It remains to be seen how the final tender will be structured and which applicants have a serious chance of winning – with particular scrutiny from anti-corruption authorities and political actors.

Credits: APA