International Game Technology PLC (IGT) stock is surging 8.93% in pre-market trading on Monday, following the announcement that an IGT-led consortium is set to be awarded the Italy Lotto License. This significant development has sparked investor enthusiasm, driving the stock's substantial gains before the market opens.

The consortium, known as LottoItalia, which includes partners Allwyn, Arianna 2001, and Novomatic Italia, has secured operational control of the Italy Lotto business until November 2034. The winning bid involves a hefty €2,230 million upfront license fee, payable in installments through April 2026. IGT disclosed that the first two installments, amounting to €500 million and €300 million, are expected to be paid in 2025.

This strategic move is poised to significantly bolster IGT's market position and future revenue streams. The company plans to make substantial investments to enhance revenue, with a focus on innovation and expansion into digital gaming sectors such as iLottery and sports betting. While the official award notice from the Agenzia delle Dogane e dei Monopoli (ADM) is anticipated within 35 days, the market's immediate positive reaction underscores the perceived value of this long-term license acquisition for IGT's growth prospects.