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'03 Presentations
LOTTERY
INSIDER
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| Vol. 26 No. 7 -- Monday February 16, 2004 |
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WEST GREENWICH, Rhode Island (February 10, 2004) – GTECH Holdings Corporation today announced that its wholly-owned subsidiary, GTECH Corporation, signed a new contract to supply the Beijing Welfare Lottery Center (BWLC) with equipment, software, and technical services to operate a computerized keno game in Beijing. As a result of the new multi-year contract, which is expected to commence on April 1, 2004 , BWLC also extended GTECH's original online lottery services contract for an additional three years through December 31, 2012. "Club Keno is based on a game that originated in China more than 3,000 years ago and is one of the most successful games in today's lottery industry," said GTECH President and CEO W. Bruce Turner. "Therefore it is only fitting for GTECH to offer BWLC the opportunity to generate additional revenue with this exciting, fast-paced game.
By offering new products and services to existing customers, GTECH further strengthens its position in this very important region," continued Mr. Turner. Under the terms of the new contract, GTECH will provide a turnkey system to BWLC, including keno equipment, monitors, and game software for the Club Keno® game. The Company will also install an additional 500 Altura® terminals featuring GTECH's AlturaVision, a video display system that allows the development, delivery, and display of text, graphics, animations, and other multimedia objects on a display device (such as a television or LCD monitor) located in a retail establishment. BWLC expects to introduce Club Keno in age-controlled locations throughout Beijing in August 2004. The number of Altura terminals for BWLC's Club Keno game is expected to grow to 2,000 over time. In addition, GTECH will provide BWLC with the Company's IP-based ES Connect™ software. ES Connect is a highly-secure, high-volume, open standards network interface that connects a lottery's transaction processing engine to a multitude of sales channels and devices. It can be implemented on an existing lottery system without the need for a major system conversion. GTECH will provide ongoing services to BWLC including upgrades and maintenance for the keno and lottery central systems; software support; game design; marketing consultation; and terminal spare parts. An alliance arrangement has also been agreed upon whereby BWLC can become the hub operator for neighboring jurisdictions in China . Under this arrangement, GTECH will provide BWLC with the lottery central system hardware, network connectivity, software licenses, and ongoing software support.
GTECH will be entitled to receive fixed pricing for the sale of the Altura terminals and a percentage of sales as an ongoing software license and support services fee. GTECH has provided lottery products and services to BWLC since its inception in 2000. Since that time, BWLC's sales have grown year-over-year reaching $120 million in 2003. Proceeds generated by the BWLC support various welfare funds, with an emphasis on orphanages and elderly care. GTECH, a leading global information technology company with $1 billion in revenues and 5,000 people in 44 countries, provides software, networks, and professional services that power high-performance, transaction processing solutions. The Company's core market is the lottery industry, with a growing presence in financial services transaction processing. For more information about the Company, please visit GTECH's website at http://www.gtech.com. SOURCE: GTECH Corporation. INTRALOT Awarded Terminal Contract by Schleswig-Holstein State Lottery ATHENS, Greece (February 12, 2004) -- Following an international tender, INTRALOT signed a 5-year contract with the German State Lottery of Schleswig-Holstein "NORDWESTLOTTO STAATLICHE LOTERIE DES LANDES SCHLESWIG HOLSTEIN" for the supply of 200 (with an option for additional 200 units) state-of-the-art CORONIS TC terminals plus maintenance services. The CORONIS TC terminal is the latest product of CORONIS family of products, designed for self-service function by the players, since it is checking players’ winning tickets through the on-line network connected with the Lottery’s central system. The terminals will be installed within the 4th quarter of 2004.
"We welcome INTRALOT as our new terminals vendor. The CORONIS TC were highly evaluated and we are certain that we will have a fruitful cooperation with INTRALOT", said Mr Helmut Stracke, Managing Director of the Lottery of Schleswig-Holstein. Mr Constantinos Antonopoulos, CEO of INTRALOT, commented: "We are excited to work with the Lottery of Schleswig-Holstein. We are certain that our cutting edge Coronis TC terminals will improve the Lottery’s efficient operation." ABOUT INTRALOT INTRALOT is engaged in the development of integrated gaming systems and provides multiple services related to the design, development, operation and support of games. Based on its extensive know how, advanced product development specifications and substantial experience in organizing and operating lottery games, INTRALOT can offer its clients custom-made integrated solutions, which ensure maximum efficiency and absolute security. Following a highly successful period of rapid growth, INTRALOT is ranked 3rd in revenues and 2nd in profits, based on 2002 financial results, among lottery suppliers worldwide, and maintains a steady course towards the leading position in the global market. Today the company has secured an important position in the European and South American markets while is expanding its presence in North America and S.E. Asia. SOURCE: INTRALOT. UK National Lottery Unveils Europe's Biggest Ever Lottery Game WATFORD, United Kingdom (February 5, 2004) -- Camelot today unveiled its most ambitious game since the launch of The National Lottery® in November 1994. The weekly EuroMillions draw offers the excitement of playing for a huge growing jackpot, which could reach £50 million or more. There is an estimated £10 million jackpot for starters and the average jackpot is expected to be £14 million. With an overall chance of winning a prize of 1 in 24, EuroMillions will offer a greater range of prizes than any other National Lottery draw.
Speaking at today's launch at the Tower of London, Camelot Chief Executive Dianne Thompson also revealed that this week The National Lottery has hit three major landmarks:
Tickets for EuroMillions go on sale in the UK on Saturday 7th February. The draw will take place each Friday with the first draw on Friday 13th February - already a hugely popular date for lottery draws in France. The EuroMillions draw will be shown on Sky One at 9pm every Friday. This will be the first time that a National Lottery draw is broadcast on a commercial television network. The deal builds on Camelot's existing relationship with BSkyB, as both companies develop plans to launch lottery games on interactive television. EuroMillions tickets will initially cost £1.50 in the UK. The UK price point is designed to account for currency variations with the €2 price in France and Spain - with any difference shared between UK winners on the eleven lower prize levels. Dianne Thompson said: 'EuroMillions has been specifically designed to offer growing jackpots which will really capture the public imagination - and of course, the greater number of players, the bigger the jackpots. "We are launching EuroMillions on the back of a year of rock solid National Lottery sales - in excess of £85 million a week. EuroMillions is a great addition to our portfolio, a really exciting game which will offer players a bigger range of prizes, generate significant incremental sales and benefit communities up and down the UK." Camelot is backing the launch with a massive £5 million advertising campaign for the first eight weeks, which takes in outdoor, radio, press and TV activity. Point of sale material will be in stores from February 6, highlighting the large jackpots on offer. To win the EuroMillions jackpot, players need to match five main numbers from one to 50 - and two Lucky Star numbers from one to nine. In addition to the jackpot, there are 11 other prize levels available to win on EuroMillions, ranging from a few pounds to hundreds of thousands of pounds. EuroMillions also means even more for UK Good Causes, as all the money raised for Good Causes from ticket sales in the UK, will stay in the UK. The original concept for a European lottery was first developed by Camelot in late 1999 and the EuroMillions game, a joint venture between Camelot, La Française des Jeux of France and Loterías y Apuestas del Estado of Spain, started to take shape in September 2001. The EuroMillions services company, which will administer the game, was set up in June 2003. There is already keen interest from other European lotteries, with more countries expected to join in 2005 and 2006. Tickets for EuroMillions will also go on sale in France on Saturday 7th February. Subject to Royal Assent on Friday 6th February, tickets in Spain will go on sale on Monday 9th February. SOURCE: Camelot Press Office. Euro Millions, the New Pan-European Lottery Game FRANCE (February 10, 2004) -- The French National Lottery – La Française des Jeux – the British National Lottery – Camelot – and the Spanish National Lottery – Loterías y Apuestas del Estado (or LAE) – have jointly launched a new European draw-based game: Euro Millions. Euro Millions brings together stakes from Spain, France and the United Kingdom equal to an accumulated population of 160 million people and a pool of approximately 90 millions players. Euro Millions has been designed from the start to enable other European state lotteries to join in the game.
The tickets have gone on sale from 7 February 2004 in France and the United Kingdom, whereas in Spain, players can validate their tickets as of 9 February. Draws will take place every Friday and the first one is scheduled for Friday 13 February 2004. On the game's launch, the minimum guaranteed amount to be shared between winners of the first level will amount to 15 millions euros. With Euro Millions, the jackpots will increase every week until they are won. Rollover jackpots will thus reach amounts of 10, 20, 30 millions euros and more. Once won, the jackpot will start again with a minimum amount of 10 millions euros. The draws will be carried out by la Française des Jeux and will take place in its studios, on behalf of all Euro Millions' partner lotteries. The winnings calculation will be managed in parallel by Camelot and LAE in order to check the accuracy of the calculations with two different sources. How to play?
The playslip consists of 5 boards of 50 numbers and 9 stars. The stake is 2 euros per board. The player selects 5 numbers + 2 stars (numbers between 1 and 9). There are 12 prize levels. Player has 1 in 35 chance of winning a prize on the last level, 10 euros on average. To multiple his chances of winning, the player can also select between 5 and 9 numbers and between 2 and 9 stars per board. In France, the ad campaign's slogan is: "Euro Millions, become richer than rich". For more information, please Putting "Smart Ideas" to Work - Texas Lottery® Megaplier™ Game Feature Wins Industry Award AUSTIN, Texas (February 10, 2004) – The Texas Lottery Commission was recognized at the SMART-Tech 2004 conference, held in Memphis, Tennessee, and presented an award for "Smart Ideas" for the successful development of the Texas Lottery® Mega Millions™ Megaplier™ game feature. "Smart Ideas" are presented at the conference by lottery and supplier representatives to help lotteries be more successful.
"It is a special honor to be recognized by one's peers in such a unique industry," said Texas Lottery Commission Executive Director Reagan E. Greer. "The Texas Lottery was the first, and so far only, Mega Millions group member to incorporate the Megaplier feature in the game, and its success is due largely to our players' response, which, in turn, has generated more money for the State of Texas." There were three categories in which "Smart Ideas" were presented:
"The Megaplier feature is responsible for 22 percent of total Mega Millions sales in Texas," Greer said. The SMART-Tech 2004 conference, co-sponsored by the Public Gaming Research Institute and the Tennessee Education Lottery, is attended by lottery executives and industry leaders nationwide to discuss important trends and new ideas for today's lotteries. For more information about the Texas Lottery, please visit the official Texas Lottery Commission Web site at http://www.txlottery.org SOURCE: Texas Lottery Commission. Lori Montana and Dave Mizeur Join Oberthur Gaming Technologies SAN ANTONIO, Texas (February 9, 2004) -- Oberthur Gaming Technologies www.oberthurgt.com announced today the appointment of Lori Montana and Dave Mizeur who joined the OGT-USA Sales and Marketing team.
"Lori and Dave bring to OGT an extensive lottery expertise and a great knowledge of the US industry," said John Connelly, Sr. Vice-President of Sales – OGT-USA. "We are confident that their extensive knowledge will further support Oberthur’s ultimate goal of increasing its customer’s sales". Oberthur Gaming Technologies is a world leader in the instant lottery ticket industry and currently supplies products and services to 100 clients in some 50 countries. The company, which is focused on growing its customers’ sales in their unique markets, has offices in Montreal, Canada; San Antonio, Texas; Atlanta, Georgia; Harleysville, Pennsylvania in the U.S.; Paris, France; Vienna, Austria; Rio de Janeiro and Curitiba, Brazil; and Sydney, Australia. SOURCE: Lyse Trudel, Public Relations Officer, Oberthur
Gaming Technologies - (+1-514) 254-3600, ext. 101. New Zealand Lotteries Commission Appoints Chief Technology Officer and IT Projects Director NEW ZEALAND (February 4, 2003) -- New Zealand Lotteries Commission (NZLC), Chief Executive Trevor Hall today announced two key IT appointments, Chief Technology Officer and IT Projects Director. Quinton Hall was appointed Chief Technology Officer on 1 December 2003. Mr Hall previously held the position Risk and Planning Manager at NZLC for two years and has a background in technology consulting and risk management, particularly within the gaming industry. Mr Hall will report directly to the Chief Executive.
In his new role Mr Hall will be responsible for IT operations at NZLC, providing strategic direction and centralised management of staff and budgets. Mr Hall will drive the information technology area to ensure that business needs are met and that NZLC’s corporate strategy is supported. Wayne Pickup has been appointed IT Projects Director, reporting to Mr Hall. Mr Pickup joined NZLC in August 2003 as Head of Distribution and Innovation from the Swedish lottery IT supplier, EssNet, where he was Project Manager. Working closely with Mr Hall, Mr Pickup’s new position will focus on gaming and innovation projects. He will have overall responsibility for the design, planning, and implementation of all IT Projects. SOURCE: New Zealand Lotteries Commission. Odd Ways to Select Lotto Numbers UNITED KINGDOM (February 6, 2004) -- A player recently asked what is the most bizarre way a National Lottery winner has chosen their numbers?
According to Charlotte Gibson, senior executive Winners PR Camelot, research carried out among Lottery jackpot winners has revealed a number of interesting methods to select numbers. Here is a list of the top ten:
If such methods seem bizarre, the places people immediately keep their winning ticket safe are equally bizarre. Some 27% of female winners admitted to keeping their ticket in their bra. We have also heard of winners hiding their ticket under the floorboards, taping it to their body, keeping it in a Bible, hiding it down their socks; keeping it in a dictionary under the letter M for millionaire, hiding it in the microwave, fridge or dog basket; even burying it in a hole in the garden or under the shed. Winners have also gone on to make some unusual purchases. These include:
When jackpot winners were surveyed, 98% stated they are either as happy or happier after winning and, contrary to popular belief, 95% are still married to the same person. Winners are also more likely to share 30% of their winnings with family and, on average, 66% of them give more than 10% to charitable causes. More than two-thirds will move house and stop, or change, their job. SOURCE: Charlotte Gibson, senior executive, Winners PR, Camelot via Intelligence Wire.
Lottery Passes $200 Million Contribution to New Mexico Education SANTA FE, New Mexico (February 11, 2004) -- New Mexico Lottery Authority officials said today (Wednesday) that Lottery contributions to public education have exceeded $200 million. The milestone was marked by presenting a $200 million ceremonial check to Governor Bill Richardson, legislative leaders and higher education representatives. The $200 million mark will officially be passed later this month, when Lottery profits (net revenues) for the month of January are transferred to an account at the State Treasurer's office, earmarked for the Lottery Success Scholarship program. The exact amount will be known next week. More than 25,000 New Mexico students have received the Lottery Success Scholarship since it began.
Wednesday's announcement comes a little more than two months before the Lottery's eighth anniversary. Lottery sales began April 27, 1996. Of the $200 million raised so far, more than $133 million has gone to the popular Lottery Success Scholarship, which continues to grow each month. It currently covers 100 percent of in-state tuition for eligible students. Another $66.5 million of Lottery profits had previously been used to help school construction and repairs. That program ended in 2001. Lottery Authority board chair Claydean Claiborne said that the Lottery Success Scholarship has touched every community in the state, doing exactly what it was designed to do. "It is providing an incentive for New Mexico students to remain in high school and graduate," said Claiborne, the mayor of Jal. "It is covering tuition for students whose families come from all walks of life. It is letting students attend college who might not otherwise have given the possibility a second thought, because they or their parents assumed they couldn't afford it. It has started a new legacy: the first members of families going to college." Other speakers included the Governor, Senate President Pro Tem Richard Romero of Albuquerque, House Speaker Ben Lujan of Namb, Lottery CEO Tom Shaheen, and Dr. Letitia Chambers, the recently-appointed executive director of the New Mexico Commission on Higher Education (CHE). Although the Lottery raises money for the Lottery Success Scholarship, the program is administered by CHE using guidelines established by the State Legislature and Governor. Current eligibility requirements for the Lottery Success Scholarship include enrolling as a college freshman in the semester following a student's high school or GED graduation, maintaining a 2.5 grade point average, and attending college full-time. Additional information about the Lottery Success Scholarship is available from CHE at www.nmche.org 800-279-9777. Information is also posted on the Lottery's website at www.nmlottery.com. CONTACTS: Lance Ross, 505-342-7616, 800-642-6689, ext. 7616 Email: lross@nmlottery.com or Nadine Guill¨¦n, 505-342-7615, 800-642-6689, ext. 7615, Email: nguillen@nmlottery.com.
Lottery Provides Two Billion to State LOUISVILLE, Kentucky (February 12, 2004) -- The Kentucky Lottery Corporation (KLC) has now turned over $2,000,000,000 to the Commonwealth, an achievement that seemed decades away when the KLC sold its first ticket 15 years ago. The milestone was marked today in Frankfort when the KLC’s President and CEO Arch Gleason presented Governor Ernie Fletcher with a ceremonial check for the amount. "Undeniably, this is one of my proudest moments at the Kentucky Lottery Corporation," said Gleason. "Thanks to our incredible network of retailers and the confidence the people of Kentucky have shown in our games, we’ve been able to achieve great heights. It’s exciting to know how these two billion dollars have benefited our state, and we look forward to continued success despite an increasingly challenging atmosphere."
All decisions on how to spend Lottery proceeds are made by the General Assembly. In 1998, legislators enacted a seven-year plan to shift Lottery dividends to scholarship programs benefiting the Commonwealth’s high school students. "There’s no question economic development and economic prosperity is the focus of this administration," Governor Fletcher said at today’s news conference. "That’s why I think it’s very important that it we look at the two billion dollars that has come to the Commonwealth from the Kentucky Lottery, that we can be proud of how that money has been invested, and how it will be invested in the future." Since the start of the program, a little more than $400,000,000 has gone to pay for need-based and merit-based scholarships over the past five years. This has provided more than 364,000 financial awards to Kentucky high school students. "The Kentucky Lottery is instrumental in providing much-needed funds for Kentucky's need-based and merit-based student financial aid programs," said KHEAA Executive Director Dr. Joe L. McCormick. "Kentucky Educational Excellence Scholarships (KEES), College Access Program (CAP) Grants, and Kentucky Tuition Grants (KTG) help thousands of Kentucky students pay for their higher education expenses each year. These programs have set the Commonwealth on the right track to increasing the college-going rate and improving the quality of life of our citizens." In this current fiscal year, 80% of KLC proceeds will go to the KEES, CAP and KTG programs. KEES supports merit-based scholarships, while CAP and KTG are based on need. By fiscal year 2005-06, 55% of Lottery revenue will fund need-based grants, while the remaining 45% of revenue will go toward merit-based scholarships.
Also, starting this fiscal year, all unclaimed prize money will go into the KEES Reserve Fund to help maintain the financial stability of the organization. It’s estimated around $9,500,000 a year will go into this fund. Kentucky’s Early Childhood Reading Fund and the Collaborative Center for Literacy Development receive $3,000,000 a year, with a total of $15,000,000 going to these programs since inception. This contribution will continue, with the $3,000,000 coming off the top of Lottery proceeds and the remainder going for the scholarship and grant programs. Proceeds have gone to a variety of causes since Lottery tickets were first sold in Kentucky. They include:
While overall KLC sales and dividends have shown a steady increase in almost every year, challenges certainly lie ahead. The state with Kentucky’s longest contiguous border has launched their own Lottery, and the Tennessee Education Lottery could cost the KLC up to $75,000,000 in annual sales in just a few years. "That’s about 11% of our overall sales," said Gleason. "While we’re continuing to improve our core products – and in fact our instant tickets have already shown nearly an 11% sales increase this fiscal year – we’ve got our work cut out for us." Since its inception, the Kentucky Lottery Corporation has sold more than $7.6 billion in tickets, with nearly 60% going to player prizes. Retailers across the state have also enjoyed more than $467,000,000 in commissions from selling and cashing tickets. About 7.8% of overall sales have been used for marketing and operating expenses. SOURCE: The Kentucky Lottery Corp. Setting the Standards; First WLA Workshop on RFPs Exceed Expectations BASEL, Switzerland (February 12, 2004) -- Everyone in the lottery business knows - or should know - how costly and time-consuming RFPs and procurements usually are. On February 5-6, the process of developing an industry standard for RFPs took a new step as WLA welcomed lotteries and lottery suppliers to the first World Lottery Association RFP Workshop in Brøndby, Sweden. Background The RFP standardization initiative was launched by WLA for both the benefit of WLA members and for the benefit of suppliers to the lottery industry. The focus of the standard is simple: decrease both the time and cost invested in the RFP process. As an initial step in this process, WLA asked QLot Consulting of Sweden to develop a proposal for a standard RFP. The resulting document has been carefully evaluated by QLot and WLA in cooperation with both lotteries and lottery suppliers, and is being coordinated with NASPL. The initial version of the RFP document is a recommended standard, aimed at minimizing the work associated with the routine aspects of a RFP process. The standard provides recommendations on a large number of RFP requirements, and allows each lottery to choose which of the requirements they use, modify or omit. The standard does not specify items which may be affected by local legal requirements (such as the EU procurement or State law in the US), nor does it make any recommendations on specific product or service requirements. This enables each lottery to freely specify required products or services, and each supplier to quote on them, while conforming to the RFP Standard. The Workshop Having released the initial RFP Standard, WLA organized the first RFP Workshop at Dansk Tipstjeneste in Brøndby. QLot consultants Ales Kulich and Tony Steinegger, two of the key people involved in the standardization initiative, were asked to lead the workshop. The first day of the workshop was reserved for lottery representatives. The eight participating lotteries were given the RFP material developed by QLot for discussion and analysis. Three lotteries (Sazka, Norsk Tipping and Svenska Spel) gave concrete examples of recent procurements and the major points/problems encountered in these were analyzed in the light of the proposed WLA RFP Standard. It was clearly recognized that many of the RFP challenges of today will be minimized or eliminated by using the proposed standards. Having recently conducted two separate procurements, Norsk Tipping reflected that significant pre- and post-RFP issues could have been avoided by following the proposed Standards. Lottery suppliers joined the workshop on the second day. Three of the suppliers made presentations and gave their views on RFP procedures. It was apparent that with few exceptions suppliers and lotteries have very similar expectations of the RFP process. Yannis Gangas from Intralot covered most points of interest from both sides in his presentation. This presentation, as well as the documentation from WLA/QLot, will be made available to other WLA members. A very enthusiastic and positive discussion among the participants created a constructive atmosphere for improving the industry's procurement process guidelines. Key discussion points included the need for openness between suppliers and lotteries, evaluation of bids and final decisions, possibilities for smaller companies to take part in bidding procedures, and formats for proposals and submissions. All agreed that overly restrictive language in RFPs can stop innovative solutions for the future. The conclusion was "tell me what, not how". Conclusion All the participants agreed the short, intense workshop had been invaluable, and that the results and material should be made available to other WLA members as soon as possible. Based on this positive feedback, WLA is planning on adding additional workshops to this years existing professional training schedule. With both the opportunity to benefit from the WLA RFP Standard and to improve communication between suppliers and lotteries, workshops such as this one benefit everyone. Ales Kulich from QLot summarized the participant's common opinion: "that is what a procurement is about, a win-win proposition". The workshop was hosted by Dansk Tipstjeneste in a way that left no room for improvements. We all express our gratitude to the Management Team of Dansk Tipstjeneste AS for their most generous hospitality and service. SOURCE: Word Lottery Association.
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Lori Montana joined the
Dave Mizeur worked for the
Illinois Lottery from 1985 to 2002 as Deputy Director for Finance and later
assumed the additional duties of Deputy Director for Operations. Dave also
served as Finance Director for Big Games/Mega Millions for seven years, laying
the groundwork for the multi-state game in 1996. Prior to his arrival at the
Lottery, he was the Assistant Fiscal Officer for the Illinois Dept. of
Agriculture. Dave also left the Illinois Lottery in early 2003 to form the DMM
Group as a full partner.
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