Greek lottery giant Intralot has established a new online gaming subsidiary to target potential partnership and acquisition opportunities in newly privatised markets as the company plans to invest €50m pursuing its global expansion ambitions over the course of 2009.

Greek gaming technology company Intralot has signed a deal to provide online lottery services for the Rio de Janeiro state lottery, marking Intralot’s first formal foray into Brazil’s lottery market and underlining the Greek firm’s Latin American ambitions.

Intralot blamed currency movements, the effects of the global economic downturn and start-up costs for new lottery contracts for a slump in operating profits in the first three months of the year. Meanwhile, the firm has also been fined by the state government of Victoria in Australia for failing to televise a bingo game as promised under its 2007 licence to run a statewide bingo game.

Austrian slot machine manufacturer and operator Novomatic tapped the bond markets for €200m last week, and intends to return to the capital markets for a further €300m over the next year as it looks to pay down debt and take advantage of market opportunities.

Intralot’s chief executive says he believes the misguided instincts of governments to tax existing forms of gaming more heavily in times of economic crisis will inevitably give way to expanded gambling opportunities after the company saw its profits battered by a tax hike in Bulgaria.

Greek lottery and gaming operator Intralot is hoping its newly-launched online gaming offshoot will help the company return to growth after first-half figures showed profits on the drift.

Intralot has scored a notable win in the battle for the business of the US state lotteries after it beat rival GTech to the contract to run Louisiana’s draw beginning in July next year.

Lottery and gaming firm Intralot believes that the current economic downturn will create opportunities as governments look to fund budget deficits through revenues from regulated gambling, and they identify France and Australia as offering the most immediate prospects for expansion.

Recent legal developments have breathed ‘new life’ into a previously dormant state lottery sector now looking to expand, believes the director of the state lottery in Minas Gerais, where Intralot has scored its second major Brazilian lottery contract.

Greek gaming behemoths Intralot and Opap have both insisted that their respective businesses will be robust enough to survive the worst effects of the country’s financial crisis, as Intralot expands its international business into Russia.