Gaming licenses are now allowed by the Privatization Authority (“PA”) under the National Lottery Administration (“Administration”). These licenses are issued for games of chance; the lottery, instant-win and digital games (“Gaming Licenses”). The Gaming Licenses are granted wholly and at one time, by way of a license tender.
The tender must pass through a “negotiated procedure” and, if this is deemed necessary by the tender commission, this may be finalized via open procedure. An open procedure allows tenderers who placed a bid under the negotiated procedure to participate.
Only legal persons and “Joint Venture Groups” who are eligible to place a bid may participate in the tender. Although the concept of joint ventures is mentioned in both the tender announcement and in the financial and technical eligibility requirements within a capital letters, a solid definition is not granted by this documentation. Joint ventures may, as generally defined for public tenders, be formed by more than one real or legal person, either in the form of a business partnership or as a consortium.
As per the tender specifications published under the PA’s web site, the tenderer’s eligibility to participate is tested in financial and technical means. It should be noted that an investment fund participating in the joint venture groups must have at least five hundred million (USD 500,000,000) US dollars as the value of funds managed under its control, and an independent auditor must confirm that fact.
In order to participate in the tender, it is mandatory
- to sign a Non-Disclosure Agreement (“NDA”)
- to obtain an Information Memorandum and the Tender Specifications (“IM”) and
- to satisfy the pre-qualification financial and technical criteria.
It is sufficient if only one member of the Joint Venture Group obtains the IM. However, it is mandatory for each member of the Joint Venture Group to sign the NDA.
The consideration for an IM is five thousand (USD 5,000.00) US Dollars and this must be deposited to the accounts specified by the PA.
Currently, data access is granted to those who have duly received the IM. Access is granted to the data room and to the data site, with the condition that those granted access will subsequently make an application to gain access.
The data site will contain information on the last five years of the games of chance organized by the administration as well as information on the existing situation, dealership system, dealership network and legal issues. The data room will contain other information and documentation not included in the data site. Twenty thousand (USD 20,000) US Dollars or the equivalent in Turkish Lira must be deposited by 1 July 2016 to the accounts specified by the PA in order to gain access to the data room and data site.
The Turkish Lira rate shall be calculated according to the US Dollar effective sell rate given by the Turkish Central Bank. The deadline for applications to gain access to the data site and data room is 1 July 2016.
It should be noted that the deadline for applications allowing legal persons and joint venture groups to pre-qualify is 14 July 2016.
The applicants are notified in writing that they have met the pre-qualification criteria. They may then submit their bids to the PA and are to do so within the scope of the conditions stated in the tender specifications to the PA.
The application is to be delivered physically, by 5 August 2016, and in a sealed envelope labelled “BID FOR THE PRIVATISATION OF THE GAMES OF CHANCE THROUGH LICENSING – CONFIDENTIAL.” Any bids delivered after the bidding deadline will not be taken into consideration.
As per the payment requirements, the bidders will be required to pay a bid bond of ten million (USD 10,000,000) US Dollars in order to participate in the tender.
It must be noted that the tender is not subject to the State Tender Law (No. 2886) and therefore the tender commission, in its sole discretion, may cancel or postpone the tender, amend the pre-qualification application period and the bidding period, or award the tender to a party who they deem to be appropriate.