The Company has developed an wide distribution network in Italy for managing its games and services, with around 248,000 terminals in around 109,400 outlets, including tobacconists, bars, petrol stations, newsagents and motorway restaurants. This network has managed games and services involving approximately 3.6 billion transactions with a net worth of € 27 billion.

Regarding its operations in Italy, the Group is a world leader in terms of managing the Lotto game, instant lotteries (Scratch and Win games), and traditional lotteries. At year-end the Group had achieved revenues of € 695.7 million from this sector.

Moreover, through its subsidiary Lottomatica Videolot Rete S.p.A. (“Videolot”), the Company is one of the 10 Italian government concessionaires that manages AWP (“amusement with prize”) machines that provide cash winnings. Lottomatica’s interconnected AWP network comprises around 48,000 terminals installed at “professional” point of sale outlets (betting agencies, bingo halls, amusement arcades, etc. ) and at “general” network, that is. the traditional AAMS gaming network (bars, tobacconists, etc.). Lottomatica is the secondlargest operator in the Italian market in terms of number of connected machines. Revenues in 2009 from this sector totalled € 160.9 million.

In 2010 there are plans to initiate commercial operations in Italy related to the videolottery terminals (VLT). Lottomatica intends to secure an important role in this new segment both as a concessionaire and as a provider through its subsidiaries Atronic and Spielo.

Lottomatica Scommesse S.r.l. is the owner of two non-exclusive licenses granted by the AAMS for the management of fixed-odds betting at 1,189 sale points, pools in 496 outlets, and the right to operate sports betting remotely (via internet, via telephone, television etc.). The granting of this concession has made Lottomatica one of the leading operators in the sports betting distribution segment. During the period, revenues generated by sports betting in Italy totalled € 186.5 million.

Through its subsidiaries Lottomatica Scommesse S.r.l. and Toto Carovigno S.p.A., Lottomatica owns remote gambling concessions. In this context Lottomatica’s online products are mainly offered via Internet and mobile phone networks, suppling different types of games such as sports betting; skill games (including poker), online instant lotteries, and other games authorised under licenses by the State (sports pari-mutuel games, horse-racing pari-mutuel games, and so on). During the period, revenues generated by interactive games in Italy totalled € 38.9 million.

Leveraging its distribution network and transaction processing experience, through its subsidiaries Lottomatica offers highvolume transaction processing services, commercial services and payment services including retail transactions credit-card, debit and prepaid transactions, electronic tax payments, utility payments, prepaid cellular telephone top-ups, and the issuance of electronic money.

The Lottomatica services network in Italy includes over 66,875 outlets (including around 26,084 outlets where Lottomatica provides processing services to third parties only), 102,240 POS terminals are installed at these stores and around 32,000 LIS Printers, which are dedicated terminals for printing stamp duties. In 2009, revenues generated from commercial services in Italy totalled € 94.1 million.