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| Vol. 29 No. 8 -- Monday November 22, 2004 |
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Hughes Network
Systems Wins Additional Contracts From GTECH for Broadband Satellite
Solution GERMANTOWN, Maryland, USA (Nov 15, 2004) -- Hughes Network Systems, Inc. (HNS), the world's leading provider of broadband satellite services, today announced it has won two new contracts valued at over $ 4 million from GTECH Corporation , the world's leading provider of transaction processing systems and services to the lottery industry. Under the terms of the contracts, HNS is delivering and installing two new DIRECWAY hubs, one located in Austin, TX, and the other in West Greenwich, RI, bringing the total number of hubs supplied by HNS to six. The contracts also call for 78 months of satellite bandwidth and engineering support. "Since we began working with HNS, satellite broadband has consistently provided our customers with the reliability, security, and speed they require for lottery transactions. We continue to rely on DIRECWAY to meet those requirements," said Tom Caffrey, chief information officer at GTECH. "Its performance and scalability allow us to offer a variety of services to our customers now and in the future." "For companies such as GTECH, DIRECWAY provides a reliable and secure solution, enabling them to provide the best service to their customers. We are proud that GTECH has again selected HNS as its chosen supplier. Since December 2002, we have supplied GTECH with approximately 32,000 remote terminals in addition to the six hubs," said Estil Hoversten, senior vice president, North American Division at Hughes Network Systems.
About GTECH Headquartered in West Greenwich, Rhode Island, GTECH is a
leading global information technology company with $1 billion in
revenues. About Hughes Network Systems Hughes Network Systems, Inc. (HNS), a wholly owned subsidiary of The DIRECTV Group, Inc., is the world's leading provider of broadband satellite network solutions for businesses and consumers, with more than 750,000 systems ordered or shipped to customers in 85 countries. HNS pioneered the development of high-speed satellite Internet access services, which it markets globally under the DIRECWAY(R) brand Headquartered outside Washington, D.C., in Germantown, Maryland, HNS maintains sales and support offices worldwide. The DIRECTV Group, Inc. is 34 percent owned by Fox Entertainment Group, which is approximately 82 percent owned by News Corporation Ltd. For additional information, please visit http://www.hns.com/. HUGHES, Hughes Network Systems and DIRECWAY are trademarks of The DIRECTV Group, Inc. CONTACT: Judy Blake of Hughes Network Systems, +1-301-601-7330, or jblake@hns.com; or Jessica Jobe of Brodeur Worldwide, +1-202-775-2675 or jjobe@brodeur.com, for Hughes Network Systems. SOURCE: Hughes Network Systems, Inc. Lottery Insider Interviews QLot President Ales Kulich
QLot President Ales Kulich was recently interviewed by the Editor of Lottery Insider (November 15, 2004). LOTTERY INSIDER: Can we start off with you telling Lottery Insider's readers about QLot's beginnings, who started the company and what exactly does QLot do. QLot: QLot was founded in early 1998 by myself in response to a clear void in the lottery market place. If any lottery, investor or for that even a supplier wanted to have any sort of help or advise in the industry, there was only one source to get that from: the suppliers. And for obvious reasons, the information they provide might not be completely unbiased. So the conclusion was that a supplier-independent consulting company, having solid experience from multiple vendors and multiple lottery jurisdictions and providing unbiased lottery expertise had a place in the industry. LOTTERY INSIDER: Can you tell Lottery Insider readers a little about your own background. How and when did you get into the lottery industry? QLot: My past life was spent in the aerospace industry, so I am used to reaching for the sky. The Lottery industry seemed to be an appropriate follow-up. I joined EssNet, the Swedish on-line system supplier, in 1992 and spent the next 6 years in marketing and sales of on-line systems world wide. Of course, the job brought much more than just on-line system experience, as understanding the customer’s application is the base for any sales. I therefore gained invaluable experience in all aspects of a lottery’s operation from great many jurisdictions. LOTTERY INSIDER: QLot is probably better known in Europe, but where else does QLot operate? QLot: QLot actually has a customer portfolio reaching 5 continents! Today we have consultants in Sweden, Germany, Austria, the Czech Republic and in the US. All together, the company consists of 7 Principal Consultants, i.e. the lead experts in their respective field. LOTTERY INSIDER: QLot was recently selected to advise the Turkish Privatization Agency on the privatization of Milli Piyango, the Turkish National Lottery, is this the biggest contract QLot has won? QLot: Not in terms of contract value, but perhaps it is one of the most prestigious ones. The only other contract on the same scale of prestige would probably be that QLot is retained as consultants for the WLA, which we are very proud of! But the Turkish privatization is most definitely important, not the least because it is one of the biggest privatizations that is foreseeable in many years to come. It is a big lottery with great prospects and where the outcome can be made very positive for the Turkish people. LOTTERY INSIDER: QLot tendered with Ernst & Young's Turkey office for the Privatization contract, why? What part did Ernst & Young play in the tender process? QLot: QLot strongly believes that "all business is local". Even if QLot has all the lottery expertise imaginable, there are many local business aspects that need to be considered in delivering a quality result to the customer. A privatization of a lottery also involves significant financial aspects, which are beyond the expertise of a lottery specialists. These two reasons made us look for a partner who would have the same views and abilities in delivering a quality service to the client. After quite some research and considerations, we chose Ernst & Young, which turned out to be the right choice. We are very happy to have them onboard. LOTTERY INSIDER: Over recent years we have seen the number of players/vendors in the lottery industry shrink through mergers, acquisitions, etc. Do you think this is healthy for the industry, and what are the advantages and disadvantages? QLot: I believe that as far as technology is concerned, it will be more or less impossible for any supplier to keep up-to-date with the ever increasing speed of technology development. I think the suppliers will have to become more of system integrators and operators, using their very significant know-how to choose the best technology components available at any given time. The days when one supplier could deliver the entire technical solution from its own production are over. I do also think that the entry barrier for new suppliers to the industry are lower from a technology point of view. The political and commercial barrier is still very high and the actual lottery expertise barrier is a hard one to overcome. I therefore think that, positive or negative, we will not see many new major players in the industry. The news will come in through (continued) acquisitions by the established suppliers. LOTTERY INSIDER: Do you think lottery organisations should look to a supplier that can provide a full service, i.e. online system, instant tickets, Video lottery, etc. or are they better off splitting the contract into the various segments. In your opinion what are the advantages and disadvantages? QLot: I strongly believe the lottery organizations will benefit from having one General Contractor, but those contractors will have to split the business to sub-contractors. The reasoning is the same as for Mergers & Acqusitions. LOTTERY INSIDER: As more and more governments look to raise additional revenue, Video lottery is considered one of the most appealing additions to the lottery business. But, is this wise, given it is moving lotteries out of the traditional passive games into the more hardcore gambling business. QLot: I believe there is no choice. The political pressure will force the lotteries to enter the VLT arena. The traditional lottery market, with Lotto as a leading product, is hard pressed. As the popular saying goes: "the lotto player is dying of old age". And it is so. Therefore, as the traditional lottery revenues will (often continue to) decline, new sources for revenue will have to be found and allowed. I also think that there will be a greater need for controlling the grey or illegal market of various gaming machines, making lotteries entering and controlling this market segment a natural step. LOTTERY INSIDER: Given that the majority of western lotteries are mature, and consumers are reportedly getting tied of the traditional lottery games, where do you see the lottery industry expanding in the future? QLot: We just mentioned it: VLTs! All other products will become supplementary over time. Sportsbetting will have a good share, as will instant tickets, but VLTs will be the leading star. LOTTERY INSIDER: Finally, where do you see QLot in the next 10 years. QLot: I see QLot being a part of a greater group, providing our customers with an even broader range of high quality services. We will also be using our know-how to operate lotteries, an area which we are actively looking into. Most importantly, we will continue to deliver excellent service while enjoying the privilege of working in this dream industry.
LOTTERY INSIDER: Kulich thank you very much for your time. About QLot QLot Consulting AB is a Swedish corporation with offices in Europe and in North America. The Group was established in 1998 and consists of Principal Consultants having thorough hands-on experience of all aspects of a lottery’s business. QLot provides its international clients, primarily lotteries, with independent lottery consulting in all technical and commercial areas, especially where computerized systems and/or agent networks are used. Lotterywest’s Emergency Relief Program Helping Those in Need PERTH, Western Australia (November 12, 2004) -- Lotterywest grants totalling $1.35 million will assist a large number of crisis welfare support agencies, and other community groups working with the WA community over the next 12 months. A total of 101 organisations will benefit from Lotterywest’s Emergency Relief program, which distributes grants to groups providing emergency and crisis support to those most disadvantaged in our community.
Lotterywest’s Chairman Clyde Bevan said he was proud of the commitment and level of grant funding that Lotterywest was able to provide to those in our community who need it the most. "There are many people in our community who are living in poverty, or living in crisis on a day-to-day basis, and it is wonderful that Lotterywest is able to provide assistance to the many individuals and community organisations which are committed to working with these people," said Mr Bevan. Whilst the bulk of the grant ($1.03 million) will be shared amongst 93 agencies throughout the state for the provision of crisis welfare support, another $320,000 will be distributed to a number of specific projects. Charity Link will receive $130,000 for the coordination of its Christmas and Winter appeals, and five agencies providing emergency relief to inpatients of public hospitals will also receive $130,000. The RSL will gain $20,000 towards the welfare support of its veterans and their families, and a $40,000 grant will be provided to the WA Council of Social Services Emergency Relief Forum for a state-wide review of its strategic plan. SOURCE: LotteryWest. Oberthur to Present the Cyber Games™ Portal, a Secure and Diversified Web Lottery Game Portal MONTREAL, Quebec, Canada (November 15, 2004) -- Oberthur Gaming Technologies ("OGT") announces another innovation in the global lottery industry with the Cyber Games™ Portal. In partnership with INGENIO, a subsidiary of Loto-Québec, OGT will offer a comprehensive turnkey solution supported by a secure and robust infrastructure, which includes a wide range of instant multimedia lottery games. This portal will enable lottery corporations to take advantage of a library of instant multimedia lottery games including the famous Tetris®, Mah Jong™, StarWars™ and of course, Cyber Slingo®. These and many more popular multimedia lottery games are available to be downloaded off the Web and have already proven to be a huge success in New Jersey. "We are delighted to introduce the Cyber Games™ Portal to our clients. It offers a reliable and secure way to provide entertaining, high-quality lottery games on the Web," said André Nadeau, Senior Vice President of Marketing and Strategic Development for OGT. One of the portal’s noteworthy features consists of its ability to let lottery sales networks maintain an active role in the process. Before consumers can play on the Web, they have to purchase a lottery ticket from an authorized retailer. Each ticket has a code entitling the player to a multimedia lottery game session on the Web. In addition to keeping the retailers involved, this approach also ensures that sales are restricted to a given territory and to legal-age players. OGT’s partnership with INGENIO was forged as a means of developing content and applying a patented technology. This successful collaboration is further strengthened by OGT’s work with Bell Canada, the largest communications' company in Canada. The fruit of this concerted effort: the Cyber Games™ Portal, a simple yet highly effective turnkey solution for lottery corporations.
About Oberthur Gaming Technologies (www.oberthurgt.com) With more than 30 years of lottery-specific expertise and
over a century's experience in the security printing industry, Oberthur Gaming
Technologies ("OGT") is the world’s leader in the printing of innovative
instant lottery tickets. About INGENIO INGENIO is a subsidiary of Loto-Québec, one of the first lottery corporations in North America, and one of its most dynamic. As a public corporation owned by the government of Québec, one of INGENIO’s mandate is to innovate and create a whole new generation of lottery games by taking advantage of the countless possibilities afforded by multimedia. In fulfilling this mandate, INGENIO aroused interest of the lottery industry, through the creation of multimedia lottery games, for which it holds worldwide patents. SOURCE: Lyse Trudel, Communications Officer, Oberthur Gaming Technologies, (+1-514) 254-3600, ext. 101. For information: André Nadeau, Sr. Vice-President, Marketing and Strategic Development, Oberthur Gaming Technologies, (+1-514) 254-3600, ext. 315, Email: info@oberthurgt.com. Article by Glenn Barry of McCallum Consultants SYDNEY, NSW, Australia (November 16, 2004) --A Google search on Nigerian + Lotto won't tell you much about the new Nigerian Lotto operations with most of the results related to various "Nigerian Scams" and lottery frauds. However there is a real Nigerian Lotto on the horizon that isn't a scam and it's now very close to start up. Given that in the past there has been some 5 attempts to start up lotteries in Nigeria there is a strong degree of skepticism amongst local commentators. To date that skepticism has been softened by what seems to have been a good PR introduction of the new game and operators to the media and local opinion leaders. The new game will be likely be 6/45 Lotto format of 1 in 8,145,060. Each 6 number game panel will cost , in local "Naira" (130 to US$1) or N50 (US$.38 cents) for a shot at a first prize pool said to be N10 million (approx. US$.77,000). The game is said to have a probability of any prize structured as 1 chance in 42 indicating a 6/45 with 5 prize levels. According to African sources the new online lotto will start up with 1200 terminals installed and plans to roll out a further 1200 by February 2005. The terminals will be connected to Lotto headquarters by a VSAT network installed by Arivia.com and Emporion West Africa to service a population estimated by different sources to be between 120 and 150 million (or you can settle for the World Bank estimate of 136.7 million). The first 1200 terminals are said to be restricted to 8 major cities across the numerous states that make up Nigeria with an estimated population of 8 million. The new lottery will be managed for 30 years by NSL Lotteries Management Company of behalf of the licensee, state Sports Lottery Ltd. 15% will go to a sports Trust Fund.
With everything said to be set to go the only negatives on the Nigerian Lotto horizon with reports as late as November 12th that enabling legislation has yet to be passed. The NSL Lotteries Management Company is supported by Tattsnet, a joint venture between Sweden's Essnet and Australia's Tattersalls. The capital expenditure involved is claimed to be some US$ 40 to 50 million. The business structure reported to be 50% to prizes, 20% to government and sports (5% VAT and 15% sports ), 8% to sales commission and 22% to operating costs and management fees. So the next time you get an email about winning the Nigerian Lotto, it may just be true, provided you took an entry. Glenn Barry is Managing Director of McCallum Lottery Management Consultants email: gbarry@sydney.net. SOURCE: McCallum Consulants and African Agencies.
GTECH Announces Intent to Offer $250 Million of Senior Notes WEST GREENWICH, Rhode Island, USA (Nov 16, 2004) -- GTECH Holdings Corporation today announced that it intends to offer approximately $250 million in aggregate principal amount of five-year and ten-year senior notes, subject to market and other conditions, in an unregistered offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. GTECH anticipates using the net proceeds from the offering for general corporate purposes, which may include funding potential future acquisitions.
The notes to be offered have not been registered under the Securities Act of 1933, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act. GTECH, a leading global information technology company with over $1 billion in revenues and more than 5,400 people in over 50 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 commercial gaming technology and financial services transaction processing. SOURCE: GTECH Holdings Corporation (http://www.gtech.com). LAS VEGAS, Nevada, USA (November 17, 2004) -- Win Win Gaming, Inc., a Las Vegas-based operator of international lottery games and related gaming ventures announced today that it has signed a Letter of Intent (LOI) with a major U.S. gaming machine manufacturer to provide a complete video lottery system for ultimate placement and use in various jurisdictions within the People's Republic of China (PRC). The two companies are moving towards a formal agreement in the near future. Under the terms of the proposed arrangement, the manufacturer would supply Win Win with a central determinant lottery system, network equipment, associated video lottery terminals (VLTs) and related machine technology. The manufacturer would also provide proprietary video lottery games for Win Win to use throughout China. "This alliance will allow Win Win the opportunity to provide proven, U.S.-based technology and expertise along with a full menu of exciting, interactive games for introduction into the burgeoning China gaming market," said Win Win President/CEO Patrick Rogers. In July, 2004 Win Win launched its Slam Dunk Instant Lottery Ticket games in Shanghai, PRC and, in August, 2004, the Company launched the Slam Dunk TV Game show produced by Sande Stewart Television, Inc. The Instant Ticket games are tied directly to the TV game show. To date, 15 Slam Dunk episodes have aired. Popularity of the Slam Dunk games and brand identity is continuing to grow in Shanghai with new ticket retailers coming online each month. About Win Win Gaming, Inc.www.winwininc.com Win Win Gaming, Inc., based in Las Vegas, NV is a US publicly traded company whose securities are quoted on the OTC-BB under the ticker symbol WNWN. Win Win Gaming, Inc. is a full-service lottery and gaming operations company that develops, operates and markets lotteries, land-based casinos and Internet lottery and gaming sites directly and through joint ventures in countries around the world. For more information: Visit the Company website at www.winwininc.com or Contact Win Win Gaming, Inc. at (702) 212-4530. SOURCE: Win Win Gaming, Inc. Tennessee Lottery Joins State’s Efforts to Find Missing Child TENNESSEE (November 17, 2004) -- The Tennessee Lottery joined forces with the Tennessee Bureau of Investigation as part of this morning’s Amber Alert to help locate 10-year-old Hunter Craig of Collierville.
Today’s Amber Alert is the first issued since the Lottery finalized plans in August to partner with local law enforcement and TBI to be part of the Tennessee Amber Alert Network. Through this network, nearly 4,400 Lottery retailers statewide will play a role in the state’s efforts to help find missing or abducted children. When the alert is activated by a local law enforcement agency, the TBI sends the information to partners across the state – a group which now includes the Tennessee Lottery retailer network. The information is then shared with Lottery retailers via their ticket-selling computer terminals where the child’s name, gender, age, and other vital information are displayed in bright red. After retailers receive the alert on their terminal screens, they then have the ability to print the information on computerized ticket stock and to post a print-out prominently in their establishments. It is the hope of both the Tennessee Lottery and TBI that the Lottery’s retailer network will be able to assist law enforcement in promptly spreading the message to the public about the missing child, and aid in recovering the child as quickly as possible. "This is just one of the many ways the Tennessee Lottery is working to help the community," said Rebecca Paul, President and CEO. "We’re pleased to join hands with this exceptional effort and hope that we can be a small part of a successful outcome."
Tennessee’s Amber Alert program is modeled after the nationwide Amber Plan, which was developed in 1996 after nine-year-old Amber Hagerman was abducted and murdered near her home in Arlington, Texas. The purpose of this plan, according to the official Tennessee Amber Alert web site, is to establish procedures to be followed in a child's abduction and ensure the greatest chance for the safe return of the child and the apprehension of the suspect. The Tennessee Lottery’s involvement in the Amber Alert program will help to increase the public’s awareness of the alert and better disseminate the vital information about the missing or abducted child. The Tennessee Lottery began selling its first instant tickets on Jan. 20, 2004. As of Oct. 15, the Lottery had transferred more than $174 million to the Tennessee Lottery for Education account, as well as more than $2 million for after-school programs. All Lottery profits will go to pay for specific education programs in Tennessee, which initially include HOPE Scholarships. SOURCE: Tennessee Lottery media release. Survey Finds Lotto Players Are a Sensible Lot When it Comes to Spending a Dream Win SYDNEY, NSW, Australia (November 2004) -- Some may dream of fast cars and a champagne lifestyle but it seems that most of us are pretty sensible, not to mention selfless, when it comes to planning how we would spend a $1 million Lotto win. In an on-line survey conducted by NSW Lotteries to mark the 25th Anniversary of Lotto, more than 2,000 Lotto players in NSW and the ACT were asked how they would spend a dream win of $1 million in Lotto. The vast majority of players (76%) said that they would spend the money to help their family. This was followed closely by housing (70%), paying off debt (61%) and holidays (59%). (The full table of responses is shown below. The results of the survey are attached and give a breakdown on how players said they would spend the money in each category).
TOTAL* 517 Brothers and sisters are first on the list of family members to receive a share of Lotto loot (67%), with parents (65%) and children (62%) coming a close second and third. A new home is next on the agenda, with a roughly equal split between first home buyers (39%), and buying a new home in a different suburb (32%) or the same suburb (26%). Pesky credit card debts were the top priority for debt reduction at 62%, followed by mortgages (57%) and personal loans (31%). A holiday in Australia is a high priority (67%), followed by Europe (56%) and the USA (35%). Not surprisingly, property was the overwhelming investment choice, with a massive 80% of would-be investors choosing this option, followed by the stock market (47%), a plain old saving account (40%), and superannuation (36%). The humble family sedan was the primary choice for a vehicle (47%), with Four-Wheel Drives (RVs) (30%) close behind. Sports cars and luxury vehicles were well behind in the race to fill a new Lotto millionaires' driveway, at 18% and 17% respectively.
Supporting one or more charities often figures in the plans of real-life Lotto winners and the survey respondents also supported helping others. Forty-six percent of all respondents said they would help a charity, with children’s charities by far the most nominated choice at 72%. NSW Lotteries Communications Manager John Vineburg said today the survey results showed that would-be Lotto winners were demonstrating an admirable amount of restraint and common sense when it came to spending a dream win of $1 million. "Lotto players tend to have a very realistic outlook on their chances of winning a first division prize, but it is always nice to dream about what you would do if you won $1 million. After all, Lotto makes more millionaires than any other game – an incredible 682 over the last 25 years. "What the survey shows is that most people have no intention of ‘blowing’ a big windfall, but they would welcome freedom from debt and money worries, and the ability to help family members and others financially," Mr Vineburg said. The survey was conducted to mark the 25th Anniversary of Lotto this week. SOURCE: NSW Lotteries. Olivetti Tecnost Participates to the WLA 2004 Convention Held in Durban, South Africa ITALY (November 2004) -- With over 20 years of experience in the gaming sector, the Systems Division of Olivetti Tecnost offers Olivetti GamingWare, a fully integrated solution which allows Gaming and Lottery operators to chose from a full line of products and services which guarantee absolute technical quality, reliability, lasting value and protection of the investments… Olivetti GamingWare includes a family of agency terminals for points of sales automation, a modular central system for game operation and organization management as well as a full set of services for global control of the entire gaming system. To date over 120,000 terminals have been installed worldwide: in Italy, where Olivetti Tecnost is market leader, as well as in China, India, Tunisia and the Czech Republic.
New at the World Lottery Association convention is the MAEL 501 Video Lottery Terminal, recently introduced in Italy. The MAEL 501 is designed to ensure maximum ergonomics for player safety and comfort while the highly resistant body and multiple locks satisfy any security requirements. The pleasant design and mix of colors ensure the terminal is visible and attractive in any environment: pubs, lottery agencies, convenience stores, arcades. The terminal offers high configurability in terms of games and technical features, making possible use in countries with different requirements, and is also predisposed for common upgrading requirements. In particular the terminal, connected to a controlling network, can work either with a standalone game or by acting as a client of a games-server. The Olivetti Tecnostagency terminal families offered are the MAEL 205 and MAEL 380. The MAEL 205, with a footprint of just 22x31 cm, is currently one of the smallest agency terminals on the market whilst maintaining high configurability. The MAEL 380, with its native touch screen and friendly user-interface, is a fully featured terminal able to meet virtually any market requirement... Both terminals are based on a PC-standard architecture, so that gaming application software can be either provided directly from Olivetti Tecnost or developed in-house using the driver library supplied. The central system offer, MAEL GATEASY, is a fully modular solution for automation of the central operations of Lotteries and Gaming Organizations including data collection from a variety of delivery channels, data and network security management, statistics and accounting reports. MAEL GATEASY is designed to be installed on a variety of hardware platforms and implements industry-standard system software. The Olivetti GamingWare offer is completed by a number of fully customized services aimed at supporting Lotteries and Gaming operators in setting up or extending the network. Services also include personalized support for market analysis and games promotion to help build a communication program tailored to the specific country and market target, definition of the telecommunication architecture and infrastructure to guarantee excellent performance and security while optimizing cost of ownership as well as dedicated on-site services worldwide at start-up, during system roll-out and throughout the system life cycle. For further information on the Olivetti Tecnost offer please write to gaming@olivettitecnost.com.
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