Greece approved on Wednesday a law wrapping up the first state asset sale under its current left-wing government, awarding the country’s sole horse-race betting licence to its dominant betting firm, OPAP.
Privatisations have been a key part of the Greek bailouts since 2010, but Athens has raised only 3.5 billion euros in the 2011-2015 from the scheme, compared with an original target of 50 billion euros.
The agreement between Europe’s biggest betting firm and Greece’s privatisation agency, HRADF, worth 40 million euros, was signed in April. But its rubber-stamping by lawmakers was delayed by the country’s protracted bailout negotiations with its lenders.
Parliament had to approve winding down the loss-making state-owned group ODIE, which had run betting on horse races. That approve is just now being granted, six months later.
Greece said the sale will help cut down public debt and protect jobs in the business, benefiting local communities.
“The concession will have multiple financial and economic benefits for the state,” said Deputy Finance Minister Tryfon Alexiadis. “The private investor is expected to bring new life into the business and help it grow.”
OPAP, one of the country’s most profitable firms, holds the monopoly in sports betting and lotteries until 2020 and 2030 respectively. Under the agreement, it will also pay a 30 percent tax on gross gaming revenues from horse race betting operations, which had revenues of 65.4 million euros in 2013.
Athens last week enacted the first set of reforms that cut pensions and raise the retirement age, before the first review of its new 86 billion euro bailout.
