IZI Group, the operator of the National Lottery of Malta, a large network of retail outlets providing gaming experiences, and the Dragonara Casino, is expecting another bumper year as its major investments in expanding and upgrading its distribution network pay off.

In its latest Financial Analysis Summary, released in December 2024 and relating to the current financial year ending on 30th June 2025, the group forecast profit before tax to increase to €5.3 million, up from €2.6 million for the last financial year.

The growth, it said, is mostly attributed to the improved results in numerical lottery, the sustained results emanating from sports betting and the strong revenue growth from electronic gaming machines (EGMs).

It also pointed to the introduction of historical horse racing (HHR) as a new product vertical, describing it as “a major contributor towards the improved performance.”

Historical horse racing was introduced in Malta in July 2024 at the company’s revamped IZIBINGO entertainment centre in Qawra, and marks the first HHR installation outside the USA.

HHR is an electronic gambling product that allows players to bet on replays of horse races that have already taken place, using terminals that typically resemble slot machines.

The development, it continued, is “a clear example” of IZI Group’s ability to leverage its lottery concession, and “opens scalable business development opportunities in foreign markets.”

It said: “While the revenue generation of such opportunities will not materialise within the current financial period, the group is laying the groundwork for scalable international business opportunities that could possibly change the fabric of the group in the future.

“As part of its broader growth strategy, the group is actively exploring international expansion, with a strong focus on historical horse racing, land-based casinos, and video lottery terminals.”

IZI Group has a licence to operate the Dragonara Casino, for a term of 10 years, but also holds a lease over the title of the property, expiring in 2083, which enables it to consider the future development of the site.

The terms of the lease allows the group to use the site for land-based casino and gaming activities, retail, catering, entertainment, hospitality, and tourism.

“In this respect, the group has undertaken preliminary studies on the possibility of expanding the Dragonara Casino, a project that aims at offering a more holistic and diversified casino experience in the medium-term.”

With regard to its operation of the National Lottery, which has seen it rebrand its own IZI-branded stores to maintain a cohesive brand identity across all its outlets and verticals, IZI Group said that the changes it undertook upon being awarded the concession have resulted in improved revenue generation capabilities.

These include product changes, such as the elimination of capping of prizes on lotto, improved odds on lotto, increased draw events both for Lotto and Super5, and the introduction of new games such as Pick3.

The market has also witnessed the expansion of the distribution network, taking the total National Lottery Outlets (NLOs) at the end of FY2023 close to 240. Moreover, several NLOs underwent a thorough refurbishment programme to bring them in line with the retail brand strategy of the company.

National Lottery plc also introduced the concept of the secondary distribution network, through which retail establishments whose primary activity is other than selling lottery products, are licensed to sell a limited range of lottery products, most notably Instant Lottery. In FY2024, National Lottery plc had a total of 103 secondary network outlets offering Instant Lottery.

The group also alluded to the possibility that the price of its gambling offerings may increase, saying that it is “undertaking cost sensitivity exercises” to “improve operating margins.”

These efforts enabled National Lottery plc to increase its Gross Gaming Revenue (GGR) by 48 per cent, when comparing the last fiscal year of the previous operator (FY2021) with the last fiscal year of National Lottery plc. (July 2023 – June 2024).

The group said the results support its strategic decision to invest more than originally planned in its own retail network, taking over the operation of more retail shops capable of selling the full suite of gaming products of the National Lottery, including sports betting and EGMs.

“This decision, the positive impact of which has been felt in FY2024, is strategic in the group’s bid to sustain its growth projections going forward,” it said.

In fact, IZI Group registered a profit after tax which is more than double that anticipated last year for FY2024, since its costs discipline during the year was instrumental in converting more of its revenue to profits.

In FY2025, revenue is expected to increase to €95.6 million. The increase is mostly attributed to the improved results in numerical lottery, the sustained results emanating from sports betting and the strong revenue growth from EGMs.