White & Case and GKC Partners Advise Sisal on Successful Bid to Operate Turkish National Lottery
Global law firm White & Case LLP and GKC Partners have advised Italian gaming and payment services sector group Sisal S.p.A. on its successful bid, in partnership with Demirören Holding affiliate Şans Digital ve Interaktif Hizmetler Teknoloji Yatirim A.S., for a ten-year contract to operate the Turkish National Lottery (Milli Piyango) that was tendered by its licence holder, Turkey's Wealth Fund.
"We supported Sisal on its first investment into Turkey and on a transaction in which the Turkish Wealth Fund created an innovative model that will ensure development and growth of the national lottery operations in Turkey and enhance employment opportunities and investment in the sector," said White & Case partner Asli Basgoz, who co-led the Firm's deal team. "The number of bidders and the size of the winning bid demonstrate that with the right model and messaging, Turkey's strategic assets can continue to attract substantial investment from international and Turkish investors."
The Turkish Wealth Fund ran a competitive process with the aim of substantially increasing the benefit of the lottery to the Turkish public by maximizing revenue and requiring investment and innovation in operational performance. The offer presented by the Sisal- Şans joint venture secured the contract within in the framework of the competitive bidding process, with bids received from a number of major international players.
The contract will operate on a revenue sharing basis, with Sisal- Şans guaranteeing revenue to the Turkish Wealth Fund of more than US$5 billion over its ten-year lifetime. It includes the management and development of a gaming system and games on behalf of the Turkish Wealth Fund, and the development and management of a portfolio of numerical games, instant lotteries and online games that will be distributed across a network of at least 10,000 points of sale.
Sisal, a portfolio company of CVC Capital Partners, is an Italian group operating in the gaming and payment services sector. It manages a broad offering of on- and offline games including lotteries, betting and gaming machines, and also offers the public more than 500 payment services through its network of retailers and more than 100 partners. In 2018, Sisal achieved turnover of more than €19 billion, employed more than 1,900 people and operated more than 50,000 points of sale.
White & Case has a professional association with Istanbul-based GKC Partners. The team which advised on the transaction was led by partner Asli Başgöz and association partner Emre Özşar (both Istanbul), and included tax consultant Hakan Eraslan (Istanbul), competition advisor Sezin Elcin Cengiz (Istanbul), local partner Michael Leicht (Frankfurt) and associates Carola Van Wesel (Frankfurt), Ece Küreğibüyük, Aslı Gülüm, İrem Kürkçü and Selin Kaledelen (all İstanbul).
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