Lottomatica's network unit in probe, could face 4 bln eur penalties - UPDATE |
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Thu, 28 Jun 2007 11:22
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(updating with further details on probe)MILAN (Thomson Financial) - Lottomatica SpA said its network unit Lottomatica Videolot Rete, which connects its gaming terminals, is being asked by a prosecutor to explain network service levels in a probe which could lead 4 bln eur in penalties.The Lazio regional prosecutor for the Accounts Court, the public accounts watchdog, is investigating Lottomatica and nine other concession holders after a complaint from the state's monopoly administrator (AAMS), which is responsible for issuing gaming concessions, it said.'AAMS has reserved the right to take a final decision following the comments presented by the concession holders,' it said.'Lottomatica will present its own comments, contesting the substance [of the complaints],' it said. 'In this regard, Lottomatica has already obtained legal opinions confirming its own position that sanctions are not applicable and that the amounts requested are not due.'The prosecutor is looking at whether the concession holders have not fulfilled certain obligations, including ones relating to service levels, Lottomatica said.The potential 4 bln eur penalties would be entirely for alleged failure to provide correct service levels, it said.Lottomatica is prepared to contest the damage claim to the highest court in the country, it said, adding it sees no negative impact on its finances from the probe.Industry sources confirmed the 4 bln eur is the potential penalty only for Lottomatica and that total penalties of 98 bln are being considered for all the 10 concession holders under investigation.The investigation covers networks linking 254,000 terminals, they said, but were unable to give Lottomatica's share.The sources could not say what years are covered by the probe, but said the services under scrutiny only started in 2004.nigel.tutt@thomson.comnt/jr/nt/jrCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Lottomatica's network unit in probe, could face 4 bln eur penalties 