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Vol. 46 No.13
Monday March 30, 2009




Schafer Systems Inc.

  • Bridging the Gap- Internet Gaming in Today’s U.S. Market. Full Story
  • Georgia Lottery VP Wins ‘Marketer of the Year’ Award. Full Story
  • Kentucky Lottery Sales and Profits Continue to Grow. Full Story
  • Education Lottery Hits the Road Again With Popular Harley-Davidson® Game. Two Other Instant Games Also Being Introduced. Full Story
  • Gaming Standards Association Brings Standards to Asia's GEM Expo. Full Story
  • Qorvis, SmithGifford Win Four ADDY Awards for Virginia Lottery Advertising. Full Story
  • Camelot Launch New National Lottery Website. Full Story
  • French Government Proposes An Online Gambling Law. European Lotteries Welcomes French Move Against Uncontrolled Online Gambling. Full Story
  • Lottomatica’s GTECH Subsidiary Chosen as Preferred Bidder by the New York Lottery for New Online/Instant System Lottery Contract. Expected Revenues to GTECH in Excess of $ 550 Million Over The Seven-Year Contract Term. Full Story
  • EU Concludes Investigation of US Internet Gambling Laws. Full Story

Smartplay International Inc.


Wincor Nixdorf

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Bridging the Gap- Internet Gaming in Today’s U.S. Market

GREENWICH, Rhode Island (March 20, 2009) -- Various forms of online gambling are legal and regulated in many countries, including most European Union member countries and several Caribbean nations.

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With the first bill related to online skill games introduced in the United States Senate this past September, is it only a matter of time before the U.S. allows legalized online gambling?  In case the answer is “yes,” many lottery conferences have included online gambling legalization as a topic in their business programs to help lotteries prepare themselves.

Most lotteries today have developed some form of an Internet strategy, but these strategies are inherently limited by what U.S. lotteries may legally offer on the Internet.  Should Internet gaming ever be legalized in the U.S., the Internet channel for U.S. lotteries will be drastically different as will be the strategies employed to leverage this new channel. And as many European lotteries who offer Internet games can tell you, it takes some time to take advantage of all the new interactive opportunities.

Recognizing the need for advance planning and preparation on the Internet gambling front, GTECH® has been working on several categories of games and promotions which can be offered in the current U.S. market.

Three examples of these game categories are:

1) Internet Games connected to Instant Tickets,

2) Internet Promotions, and

3) Virtual Prizes.

Game Lounge

1) Internet Games connected to Instant Tickets (Game Lounge)

 GTECH has been working for the past year with a talented content partner, Ingenio, who has designed and developed a suite of exciting interactive games, including Game Lounge. Game Lounge is a suite of Internet-based games connected to instant ticket games sold at retail locations. Players purchase instant tickets that include access codes for games on the lottery’s web site. The winning outcome is connected to the barcode on the instant ticket and can be validated by any lottery retailer. This approach makes all Game Lounge offerings legal under current U.S. law. A demo can be found at www.futurelotteries.com.

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Established in 1998, Ingenio, a subsidiary of Loto-Quebec, is involved in the research and development of new gaming products and marketing channels worldwide and GTECH is very excited to be working with them to pitch Game Lounge to U.S. and other lotteries who are looking for that type of consumer interaction. In fact, Ingenio has already deployed Game Lounge for Loto-Quebec. Game Lounge is an example of an opportunity that can be used under today's legal environment to begin a transition from a purely retailer-focused sales channel to a more diversified one that combines a retail sale with any computer connected to the Internet.

2) Internet Promotions

GTECH Printing Corporation (GPC) has access to the creative and technical resources of IGI Europrint, a subsidiary of GTECH Corporation that has created hundreds of promotions, including many Internet-based games.

Since 1980, IGI Europrint has developed more than 500 successful lottery promotions for 25 customers including both lottery and major retail brands. They have extensive experience in the design, development and implementation of Internet-based promotions. Many applications have been developed for lotteries, while others have been developed for other businesses looking to build sales by promoting their products via new channels.

For example, IGI ran a promotion for three of the National Lottery’s online games that included bar-coded coupons distributed in national newspaper chains. Enticed by prizes of up to £200,000, more than 8.5 million prize-seekers tuned in to Lottery drawings over a four-week period to see if they’d won. And in a separate promotion that was implemented in 1995 and is still running today, IGI has distributed more than 2.5 billion cards via newspapers in support of the National Lottery’s instant games.

3) Virtual Prizes

GTECH Printing is preparing to launch their new, state-of-the-art printing press in just a few months.  This printing press will change the reality of what can be packaged with an instant ticket, thereby making instant tickets even more fun for players. Today, second chance drawings via the Internet are used at most U.S. lotteries, but the response rate varies greatly. The problem may not be the success of second chance drawings but the prizes themselves. 

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GTECH’s approach is to offer prizes that better align with players who regularly use the Internet.  These prizes focus on what really appeals to the typical Internet user and looks beyond the typical T-shirt or gift pack to offer the types of prizes today’s gamers value most, such as music downloads, mobile games, once-in-a-lifetime trips/concerts, virtual prizes in video games, etc.

Indeed, when players are asked to disclose some personal information in order to enter a second chance drawing, the prize must be significant enough to make it worth their time.  Twenty-five music downloads or a T-shirt might cost the same amount, but to an Internet-savvy player, the value of music downloads is probably much higher.

By looking to content that lotteries can implement today under current U.S. regulations, lotteries can begin to position themselves now to be ready for the future model in whatever form that future takes. Although current U.S. law prohibits full-fledged Internet gaming, there are game categories such as those described here that can at least allow a lottery to move incrementally toward an Internet future.

CONTACT: Cheryl Sullivan, Sr. Marketing Specialist, Marketing Communications GTECH Corp,

 

 

Georgia Lottery VP Wins ‘Marketer of the Year’ Award

ATLANTA, Georgia (March 20, 2009) – James Hutchinson, vice president of marketing for the Georgia Lottery Corp., has been named Corporate Marketer of the Year by the Atlanta Chapter of the American Marketing Association (AMA Atlanta). Hutchinson received his award at the Atlanta Marketer of the Year (AMY) Awards on Thursday.

James Hutchinson
James Hutchinson, vice president of marketing for the Georgia Lottery Corp., is pictured holding his Atlanta Marketer of the Year Awards trophy

 “Winning this award has truly been a highlight of my career, and I am so grateful to be recognized by AMA Atlanta,” he said. “As a marketer, my goals have always been to stretch my imagination and ‘color outside the lines.’ I also believe in creating from the heart, which ultimately is what connects you with the consumer.”

 Hutchinson was recognized for his leadership and achievement in 2008. A marketing professional for 25 years, he joined the Georgia Lottery in 2005 after serving as chief marketing officer for the Florida Lottery.

As a sales and marketing organization, James plays a vital role in our company’s bottom line,” said Margaret DeFrancisco, Georgia Lottery president and CEO. “I am thrilled that his incredible talent and efforts have been acknowledged by his peers.”

We are all so proud of James,” said Chris Hall, president and CEO of BBDO Atlanta, the Georgia Lottery’s advertising agency. “We have enjoyed a very rewarding partnership with him and are pleased to see his visionary work recognized.”

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 Hutchinson’s career began at Oshman’s Sporting Goods, where he quickly worked his way up to senior management. After 10 years of managing the in-house agency, he moved to Atlanta to lead the worldwide marketing division of The Athlete’s Foot.

 In 1997, Hutchinson joined the Walt Disney Company to create synergistic retail programs. These programs allowed American Express, the Coca-Cola Co., Kodak and other marketing partners to develop exclusive Disney-themed merchandise for specific retailers. While at Disney, James also led the effort to procure corporate sponsorships for Disney’s Wide World of Sports.

About the Georgia Lottery Corporation

 Since its first year, the Georgia Lottery Corporation has returned over $10.5 billion to the state of Georgia for education. All Georgia Lottery profits go to pay for specific educational programs including Georgia’s HOPE Scholarship Program and Georgia’s Prekindergarten Program. More than 1.1 million students have received HOPE, and more than 940,000 4-year-olds have attended the statewide, voluntary prekindergarten program.

 For more information, please visit the Media Center on the Georgia Lottery Web site at:

www.galottery.com

CONTACT: Tandi Reddick, Media Relations Manager, Georgia Lottery Corporation, P: (404) 215-5062, F: (404) 215-8983, C: (404) 323-4644, Email: treddick@galottery.org.

 

Kentucky Lottery Sales and Profits Continue to Grow

LOUISVILLE, Kentucky (March 20, 2009) -- The Kentucky Lottery Corporation’s (KLC’s) board of directors was presented today with financial results from the first eight months of the fiscal year (July – February) as well as projected results for the remainder of the year.

VP of Finance Rick Kelley advised the board that:

Sales through February 28 were $532.8 million (including $27.9 million in free scratch-off tickets). This is $25.4 million or 5% more than the prior fiscal year. Total sales net of free scratch-off tickets were $504.9 million, which is $2.5 million less than the prior year’s cash sales and $6.5 million (or 1.3%) more than budgeted.

Prize expense for the first eight months of the fiscal year was $314.6 million, compared to $319.5 million last year and $300.8 million budgeted.

Even in light of higher sales, operating expenses continue to be reduced. Operating expenses through February were $21.4 million, compared to $24.3 million last year and $23.1 million budgeted.

Income before dividend transfers was $130.5 million, compared to $126.3 million last year and $137.6 million budgeted.

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These sales numbers are remarkable, especially in light of several factors we’ve faced during the past few months,” said KLC President and CEO Arch Gleason. “We lost $4.5 million in sales during the January ice storm. At their height of the storm, one out of every three of our retailers was down and unable to sell tickets. It took us the better part of two weeks to get some back up and running in Western Kentucky.”

We’ve also been able so far to produce better-than-expected results in a poor economy,” Gleason said. “I still believe lottery tickets are an inexpensive form of entertainment, players enjoy them, and are still willing to spend discretionary income on our products. We’ll have to see however the effect of unemployment rates on our operation, as we’re moving into uncharted territory there.”

The KLC’s Sr. Vice President of Finance and Administration Howard Kline presented an updated FY ’09 sales and dividend projection to the board. Kline said the KLC should end the year with results that are close to what was projected in January. Sales for FY ’09 are projected to be between $807 million and $815 million (including approximately $49 million in free tickets). Kline added that, depending on actual results, this will allow the KLC to transfer between $200.5 and $202.5 million in dividends to the Commonwealth, which would be the second-largest amount ever turned over to the state. This number is between $8 and $10 million more than the $192.1 million in dividends paid during the last fiscal year, but is between $5 and $7 million less than what the Commonwealth expects.

A company in the private sector – especially given our current economic situation – would love to see sales and profitability results like these,” said KLC Board Chairman Keith Griffee.

In other board business, the chairman of the board was re-elected and a new vice chairman of the board was elected. Keith Griffee was tapped for his second term as board chairman. A banker with Porter Bancorp, Inc. and a resident of Mt. Washington, Griffee has served on the board since 2003. The board’s new vice-chair is Mark Sommer, a KLC board member since 2006. Mr. Sommer is a partner in the law firm of Greenebaum Doll and McDonald PLLC specializing in the practice of tax law.

The board also approved:

  • The purchase of drawing ball sets along with a contract renewal for drawing machine repair and maintenance from SmartPlay Inc./Garron Lottery Products.
  • Renewal of a contract with British Standards Institute for ISO 27001 recertification.
  • Renewal of a contract with Arbitron Media services for media buying software.
  • Renewal of a contract with Elsym Consulting for support of the KLC’s internal control system and future development of new game capabilities for on-line and instant games.
  • A new contract with Gaming Labs International for lottery ball calibration and random number generator testing
  • A personal services contract with Delehanty Consulting for security evaluation services, and
  • Rules and regulations for 13 scratch-off games and three pull-tab games.

The next meeting of the KLC’s board of directors will be May 29. The meeting will begin at 9:30 AM EST, and will be held at the KLC headquarters at 1011 West Main Street in Louisville. Committee meetings will begin at 8:30 AM EST.

SOURCE: Kentucky Lottery.

 

 

Education Lottery Hits the Road Again With Popular Harley-Davidson® Game

Two Other Instant Games Also Being Introduced

RALEIGH, North Carolina (March 23, 2009) - Back by popular demand and even better than before, the North Carolina Education Lottery (NCEL) is introducing a Harley-Davidson® instant game, which offers a total of nine chances to win a 2009 Harley-Davidson® Fat Bob® Motorcycle. Two more games, Triple Fortune and Diamond Dash, also will be introduced and all three games will be in stores starting Tuesday, March 24.

NCEL HD Ticket

With the Harley-Davidson® game, players will have a chance to scratch their way to win one of six 2009 Harley-Davidson® Fat Bob® Motorcycles instantly or players may enter each non-winning Harley-Davidson® ticket into any of the three second chance drawings where the NCEL will award one motorcycle per drawing.

Plus, the NCEL also will award over a thousand Harley-Davidson® merchandise prize packs in the second chance drawings! Players may enter as many non-winning tickets as they want.

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More details and the rules of the game are available on the How to Play brochure available at retail locations and can be viewed on the NCEL Web site at www.nc-educationlottery.org.

The $3 Harley-Davidson® ticket also offers eight top prizes of $75,000 and chances to win many other prizes of $500, $100 and more!

Triple Fortune is a $2 instant scratch-off game with over $6.5 million in total prizes including eight top prizes of $30,000. The game has over $2.3 million in prizes between $20 and $500. Players who scratch and reveal a “money bag” symbol win double the prize shown or if they reveal a “star” symbol they win triple the prize shown.

Diamond Dash is a $1 instant scratch-off game featuring 25 top prizes of $2,500 plus over 179,000 prizes of $5 up to $250! Players who uncover a “diamond” symbol in the play area on the ticket win the prize shown for that symbol.

CONTACT: Pamela Walker, Phone: (919) 301-3308.

 

Gaming Standards Association Brings Standards to Asia's GEM Expo

GSA Exhibiting, Speaking at Gaming Tradeshow

LAS VEGAS, Nevada (March 23, 2009) -- The Gaming Standards Association has actively been bringing its message of protocol standards, certification and education to gaming markets across the world all year, and now GSA is turning its attention to the Philippines. GSA will exhibit and speak at Asia's Gaming & Entertainment and Leisure Expo (Asia's GEM Expo) April 1-3 at the SMX Convention Center in Manila, The Philippines.

GSA will be located in stand #H-1, where the company will be discussing the benefits of standardization and how protocol standards apply to the worldwide gaming industry. In addition, GSA will also present its certification program and traveling education curriculum.

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GSA President Peter DeRaedt will be a featured speaker at the conference. A well-versed and well-traveled gaming industry veteran, DeRaedt will bring his expertise and global vision to the session, "Trends and Advances in Gaming Technology." The session takes place April 1 at 10:15 a.m. in the convention center.

DeRaedt previewed his address: "This is an incredibly exciting time in the gaming industry. Manufacturers across the globe are developing products with astounding abilities. I will discuss the technological trends and how open standards developed by GSA are fueling the products of the future."

About the Gaming Standards Association (GSA):

The Gaming Standards Association (GSA) is an international trade association that creates benefits for gaming manufacturers, suppliers, operators and regulators. We facilitate the identification, definition, development, promotion, and implementation of open standards to enable innovation, education, and communication for the benefit of the entire industry. Since its incorporation on May 6, 1998, GSA has members representing a wide cross section of the global gaming industry.

GSA's new Game-to-System (G2S) Protocol has been named "Best Productivity-Enhancement Technology" by Global Gaming Business Magazine; one of the "Top Three International Gaming Products" by IGWB Magazine; one of Casino Journal magazine's "Top 3 Most Innovative Products"; and one of Casino Enterprise Management's "Top 10 Slot Floor Technologies."

For more information, visit www.gamingstandards.com.

SOURCE: Gaming Standards Association. CONTACT: Peter DeRaedt, President of Gaming Standards Association, +1-775-829-2336, pres@gamingstandards.com or Paul Speirs, President of Steinbeck Communications, +1-702-413-4278, paulspeirs@cox.net for the Gaming Standards Association.

 

 

Qorvis, SmithGifford Win Four ADDY Awards for Virginia Lottery Advertising

WASHINGTON, DC (March 25, 2009) -- Qorvis Communications, one of the largest independent, integrated communications firms in the U.S., and its creative partner SmithGifford, today announced they won four 2009 Advertising Club of Metropolitan Washington ADDYs for television advertising created and produced for the Virginia Lottery.

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The TV spot called "Dodgeball, 'Near Miss'" earned Best in Category for the Broadcast category and a Gold ADDY in the Television, Regional/National TV, Single Consumer Products category. The ad promotes one of the computer generated Fast Play Games. It is based on the traditional schoolyard game of dodgeball, but with a twist: "The More You Miss, the More You Win." The other winners were "Harley Davidson, 'The Man'" and "Tax Free Millions, 'Sheep,'" which promote scratchers and claimed Silver ADDYs in the Television, Regional/National TV, Single Consumer Products category.

"Qorvis and SmithGifford are honored to win four ADDYs for our collaborative work for the Virginia Lottery," said Karen Gauthier, Qorvis managing director, who manages the communications team for the Virginia Lottery. "It is always exciting and humbling to receive the recognition from our industry peers." Bruce Gifford, creative director, SmithGifford, commented: "We're grateful to the Virginia Lottery for being as excited about this spot as we were. And frankly, they had the best throwing arms on set."

The winning team was led by Karen Gauthier. Bruce Gifford was the creative director. SmithGifford's Drew Magary was the senior writer and Dana Cole was the producer.

The 2009 ADDY? Awards were presented on March 19 at the Carnegie Institute of Science by the Advertising Club of Metropolitan Washington.

About Qorvis Communications

LLC Qorvis Communications is one of the nation's largest independent, integrated communications firms. Formed in August 2000, Qorvis provides its clients with expertise in the areas of public and media relations, advertising, public affairs, investor relations and financial services communications, grassroots campaigns, Internet-based campaigns, social media strategies, and research and opinion surveys. For more information, visit www.qorvis.com.

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\About SmithGifford

SmithGifford is a full-service advertising agency in Falls Church, Va., just outside Washington, D.C. We're a group of smart people who do really nice work. Sometimes we are referred to as a group of nice people who do really smart work. During the last five years we've attracted a handful of carefully selected clients who want to build strong brands using highly creative thinking. We are proud of the work we have done for them and even more proud of the results. For more information, go to www.smithgifford.com.

About The Advertising Club of Metropolitan Washington

Since 1918, The Advertising Club of Metropolitan Washington has served as the premier industry organization for area advertising professionals. The D.C. Ad Club celebrated the 41st Annual ADDY? Awards, recognizing the best in creative excellence in advertising in the metropolitan Washington, D.C. area. Our ADDY Awards are the first level in a three-tiered competition sponsored by the American Advertising Federation (AAF). With 60,000 entries nationwide, the ADDY Awards is the nation's largest advertising competition. For more information, visit www.dcadclub.com.

CONTACT: Renate, Geerlingsrgeerlings@qorvis.com,  202-255-2744.

 

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Camelot Launch New National Lottery Website

Personalised Services, Game Selector Tool and User-Friendly Design Are Just Part of the Makeover

WATFORD, UK (March 25, 2009) -- One of the UK’s top e-commerce websites(1) is re-launching with a whole host of new and exciting features now available to players, along with a fresh look.

The National Lottery’s next-generation website at www.national-lottery.co.uk already has over 4.4 million registered users and is the first of many new leading-edge services and games that will be introduced throughout the third lottery Licence. 

The new website has been overhauled to provide an even more user-friendly experience for players, highlighting the games to play and the Good Causes that benefit from National Lottery funding.

The key features of the new site include:

  • Game Selector tool – where players can filter by game type, top prize, price, launch date and theme, to find the perfect game for them;
  • Dedicated Results Checker – now displaying all National Lottery draw results for the past 180 days, so players can easily see if they have won;
  • Enhanced Continuous Play function – allowing players to set up their Lotto and Thunderball entries by Direct Debit, as well as the ability to change numbers, edit details and play by Lucky Dip, all helping to make sure that they never forget to enter a draw;
  • Alerts service – a wide range of alerts is now available for players to sign up to, meaning they are always up-to-date about upcoming Rollovers on Lotto and EuroMillions draws;
  • Player account – an advanced and secure ‘My Account’ function, holding all the information on a player’s tickets bought online and with a Direct Debit, in one place;
  • A new and improved help hub – providing answers to a whole range of frequently-asked questions; and
  • New design – with exciting animation and improved site navigation.
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Camelot is also introducing a new ‘Take the tour’ section to help players find their way around the new website in their first few visits, and ensure they can get the best out of it.  Available directly from the homepage, it includes a virtual tour area which showcases the most popular sections of the site, with quick links to the main player areas: ‘Play games’, ‘Check results’, ‘My account’ and ‘Good Causes and winners.

Step-by-step user-friendly guides are available so that players can easily find out how to play by Direct Debit, with the ‘Play by Text’ service, and through Sky Active – as well as how to start a syndicate.

The Good Causes area of the site gives players access and insight into how the £22 billion-plus The National Lottery has so far raised for the Good Causes has helped to fund more than 300,000 individual awards, benefitting communities throughout the UK.

The National Lottery website is part of the company’s range of interactive services, including the website at www.national-lottery.co.uk, through Sky Active and the Play by Text mobile phone service, which together have recently delivered double digit growth to reach sales of £230.1m – an increase of £66.8m in the Half Year to 27 September 2008.

Martin Pugh, Commercial Director at Camelot, said: ““I’m very excited to unveil our new and improved National Lottery website.  We’ve listened to our players and built the new website with games that are even easier to find, a ‘My Account’ centre with an at-a-glance summary displaying all their tickets, and an evolutionary design which looks fantastic – but importantly is still intuitive to use.

Our market-leading interactive services have enjoyed consistent growth since their launch, and this has been set against the backdrop of an overall increase in National Lottery sales.  Our interactive services raise an average of over £2.5 million per week, helping to boost the £22 billion-plus so far raised for the Good Causes.

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The new website makes it even easier for our players to enjoy National Lottery games in a way that suits them – with all the protection you’d expect from The National Lottery.

The news follows the recent release of the National Lottery’s first online 3D Instant Win Game (IWG).  Prize Hunter is an adventure game which sees players transported to an exotic jungle where they must gather as many pieces of bounty as possible, up to a winning top prize of £50,000.  The game is already one of the top three best-selling Interactive Instant Win Games(2).

Prize Hunter joins a fun and exciting range of IWGs available to players, including All Star Family Fortunes™, Scrabble™, Snakes & Ladders and the ever-popular Weekly Grand.  All the Good Causes money raised by IWGs goes towards the 2012 Olympic Games and Paralympic Games – helping to reach Camelot’s target of raising £750 million for London 2012 from designated lottery games.  So far more than £375 million has been raised, which is on schedule.

Camelot was the first organisation to receive accreditation from GamCare – the UK’s Centre for information, advice and help regarding the social impact of gambling – for all three of its interactive platforms: the internet at www.national-lottery.co.uk, Sky Active and Play by Text on mobile phones.

 

 

Camelot

 

1. Source: Comscore data

2. Based on Camelot’s average weekly sales data.

For further information, please CONTACT: Lisa Hancox, Corporate PR Manager: 020 7632 5716, Camelot Press Office: 020 7632 5711.

 

French Government Proposes An Online Gambling Law

European Lotteries Welcomes French Move Against Uncontrolled Online Gambling

LAUSANNE, Switzerland (March 25, 2009) -- Today, the French government has adopted an online gambling draft law, providing for a strictly controlled opening of the market in the fields of online sports betting, online horserace betting and online poker in France. Online casino games and online slot-machine style games will remain prohibited under the online gambling law.

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The draft proposes a financing of bets benefiting grassroots sports and an involvement of the sports associations in the organisation of sports betting. This is the model defended by European Lotteries whereby betting needs to be of benefit for sport and the general interest, along the lines of European Lotteries’ code of good conduct on sports betting which as been signed by 46 lotteries in Europe.

The proposal establishes strict licensing criteria and severe sanctions against unlicensed operators who make services available in France. It contains strong measures to combat fraud and protect consumers as operators are obliged to allow all transactions involving French customers to be audited. It protects the French players from unlicensed operators who will be prevented from interacting with French customers via IP and payments blocking mechanisms.

Dr. Winfried Wortmann, President of European Lotteries, comments: “European Lotteries agrees with the French Government that gambling, including betting, is not an ordinary economic activity and that online gambling operators must comply with national consumer protection and public order requirements of the country of residence of the consumer. The commercial gambling industry does not have the right to flood citizens in EU Member States with a limitless range of gambling services.”

Dr. Wortmann also notes that the draft is fully in line with the recently adopted European Parliament resolution on online gambling (“Schaldemose report”, March 10) which called for measures to tackle problems of fraud and money-laundering, gambling addiction and underage gambling and confirmed that online gambling operators must comply with the laws of the EU Member State where the consumer resides.

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The proposal will now be presented to the French Parliament and notified to the European Commission. All Member States can submit their comments during the notification procedure.

The law should enter into force on January 1, 2010.

European Lotteries offers its full cooperation to the Committees in the French Parliament that will now examine the draft law.

For further information please CONTACT: Rupert Hornig, General Delegate, EL (English, German), Tel: + 32.(0)2.234.38.20, Email: eu.representation@european-lotteries.org or Philippe Vlaemminck/Annick Hubert, EL legal advisors (French, Dutch, English) Tel: + 32.(0)2.787.97.10, Email: pv@vlaemminck.com; ah@vlaemminck.com

About European Lotteries

European Lotteries (EL) is the European umbrella organisation of national lotteries operating games of chance for the public benefit. EL has members from over 40 European countries including all 27 EU Member States. The association’s EU members contribute more than 20 billion EUR p.a. to the state budgets and the funding of sport, culture, social projects, research and other causes of general interest. Unlike many commercial online gambling operators, El members only offer gambling and betting services in the jurisdictions in which they are licensed by the respective national government.

SOURCE: European Lotteries.

 

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Lottomatica’s GTECH Subsidiary Chosen as Preferred Bidder by the New York Lottery for New Online/Instant System Lottery Contract

Expected Revenues to GTECH in Excess of $ 550 Million Over The Seven-Year Contract Term

ROME (Italy) and PROVIDENCE, Rhode Island (March 23, 2009) -- Lottomatica S.p.A.’s wholly-owned subsidiary, GTECH Corporation, announced that it has been chosen as the preferred bidder to negotiate a seven-year integrated services contract with the New York Lottery to provide new online lottery solutions and services. The Lottery has the option to extend the contract for an additional three years. GTECH’s proposed solution set includes a full suite of online and instant systems, up to 20,000 online lottery terminals, a variety of self-service lottery products and multimedia technology, a new wireless telecommunications network, instant-ticket warehousing, and ongoing services.

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The proposed contract, which is expected to commence in March 2010, follows a competitive procurement process. The New York Lottery estimates the total value of the contract to be more than $550 million over the contract period. Subject to a protest period which ends on April 3, 2009, the finalization of the contract is slated for approval by the Attorney General and the State Comptroller by June 10, 2009, but may go beyond that date. GTECH has been a lottery technology and services provider to the New York Lottery since 1986.

We are honored to have the largest lottery in North America and one of the most respected in the world, the New York Lottery, remain as our valued customer,” said GTECH President and CEO Jaymin B. Patel. “Lotteries from around the world look to the New York Lottery as a model for balanced and sustainable growth among their online, monitor, and instant game portfolios. As the Lottery’s online vendor, GTECH will continue delivering the maximum player experience, integrity, security, and profitability, in order to ensure the New York Lottery continues to be the standard bearer for the global lottery industry.”

We are pleased to continue our successful partnership with GTECH and look forward to a new generation of state-of-the-art equipment. The New York Lottery makes extreme demands on its full service system, with huge transaction volume, complexity of operations, diverse geography, extensive marketing and constantly-evolving game choices. Reliability, integrity, and experience are critical to a successful relationship, and GTECH has consistently delivered on all these points,” said Gordon Medenica, Director of the New York Lottery.

Under the proposed new contract, GTECH will provide its Enterprise Series solution, specifically tailored to offer a best practices technology approach to support the New York Lottery’s successful business plan with the flexible tools needed to increase sales and revenue contributions to education. In addition, GTECH will install and maintain up to 20,000 new Altura® lottery terminals, as well as a new IP-communications network. GTECH will also introduce ES MultiMedia digital advertising displays to stimulate increased brand awareness of the New York Lottery product line across the entire retail network at the point-of-sale. The Company will expand the Lottery’s self-service network through additional Ticket-Scan™ ticket-checker units. Additionally, the Lottery has the option to purchase other self-service products from GTECH including Lottery To Go™ and Instant To Go™ vending machines. Over the duration of the new contract, GTECH will continue providing the operation and maintenance of the central system; terminal maintenance; warehousing and distribution of instant tickets; field service; marketing consultancy; and hotline management.

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We are proud of our successful 23-year partnership with the New York Lottery,” continued Mr. Patel. “During that time, we have been privileged to assist them in launching new online and monitor games, expanding their retailer base to more than 16,000 locations today, and helping them to achieve record sales. Over the next several years, we will continue to work together with the Lottery on enhancing their product and game portfolio, and providing them with a flexible platform to launch the next-generation of gaming technology, in order to maximize even greater returns for education programs in New York.

The New York Lottery recorded more than $7.5 billion in total sales in its fiscal year 2008, an impressive $2.6 billion of which was allocated to educational programs in New York.

About Lottomatica S.p.A.

Lottomatica is a market leader in the Italian gaming industry and one of the largest Lottery operators in the world based on total wagers and, through its subsidiary GTECH Corporation, is a leading provider of lottery and gaming technology solutions worldwide. Together, the Company is the only vertically integrated full service lottery company. Lottomatica is majority owned by De Agostini, which belongs to a century-old publishing and media services group. Lottomatica is listed on the Stock Exchange of Milan under the trading symbol “LTO”. In 2008, the Company had approximately €2.1 billion in revenues and 7,500 employees in over 50 countries when combined with GTECH.

 

For further information:

 

Simone Piattelli Palmarini
Lottomatica S.p.A
Media Communications
T. (+39) 06 51899877
M. (+39) 335 5305097
Robert K. Vincent
GTECH Corporation
Public Affairs
T. (+1) 401 3927452
Simona D’Agostino
Lottomatica S.p.A
Investor Relations
T. (+39) 06 51899742
M. (+39) 335 7729138

 

SOURCE: Lottomatica S.p.A.

 

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EU Concludes Investigation of US Internet Gambling Laws

WASHINGTON, DC (March 26, 2009) -- The European Commission has finalized its draft report following an investigation into United States measures affecting foreign suppliers of Internet gambling services. The investigation has found that US laws on remote gambling and their enforcement against EU companies constitute an obstacle to trade that is inconsistent with WTO rules.

Although the provisional conclusions of the report imply that WTO proceedings against US measures would be justified, the report also indicates that the issue should be taken up with the US Administration, with a view to finding a negotiated solution. The report, completed in the framework of the EU Trade Barriers Regulation (TBR), will now be sent to EU member states for comments on the findings, and will be made public once finalized.

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EU Trade Commissioner Catherine Ashton said:"It is for the US to decide how best to regulate Internet gambling in its market, but this must be done in a way that fully respects WTO obligations. I am hopeful that we can find a swift, negotiated solution to this issue."

The report released today to Member States is the result of a formal examination procedure initiated on 11 March 2008, following a complaint lodged by the Remote Gambling Association (RGA). The report concludes that US laws deny access and discriminate against foreign suppliers of gambling and betting services inconsistently with US WTO obligations.

European companies are still now subject to legal proceedings by US authorities based on their past activities on the US online gambling and betting market. The proceedings are continuing despite the withdrawal of European companies from the US market in 2006 following changes in the US regulatory framework. The report comes to the conclusion that these proceedings are legally not justified and discriminatory.

This investigation takes account of the fact that the EU and the US agreed in December 2007 on a compensation package in exchange of the loss of trade opportunities as a result of the US intention to withdraw its WTO commitments on gambling and betting services. Once this withdrawal occurs, the US would no longer be obliged to guarantee future access to its gambling and betting market, but this does not mean that it could disregard its obligations in respect of past trade.

Click here to download Fact sheet: Trade Barriers Regulation investigation into US Internet gambling laws - Brussels, 26 March 2009

CONTACT: Delegation of the European Commission to the United States, Anthony Smallwood, 202-862-9523 or Kasper Zeuthen, 202-862-9530

SOURCE: Delegation of the European Commission to the United States.


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