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| Vol. 31 No. 7 -- Monday May 16, 2005 |
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GTECH and Harrah’s Enter into Strategic Alliance WEST GREENWICH, Rhode Island and Las Vegas (May 11, 2005) -- GTECH Corporation, a wholly-owned subsidiary of GTECH Holdings Corporation (NYSE: GTK), and Harrah’s Operating Company, Inc., a subsidiary of Harrah’s Entertainment, Inc. (NYSE: HET), said today they have entered into a strategic relationship whereby GTECH will supply Harrah’s properties with gaming machines, and the two companies will work together to develop new game content. Over the next two years, GTECH will place 200 leased video gaming machines in Harrah’s properties around the country. The companies will also explore opportunities to expand the relationship with additional slot products in future years, depending upon the performance of the machines installed during the initial period.
The companies will also cooperate on potential development projects in jurisdictions that could consider legalization of casino gaming, including Suffolk Downs in Massachusetts and Kentucky’s Turfway Park, which is owned by GTECH, Harrah’s, and Keeneland Corporation. In addition, GTECH will support the proposed Narragansett Indian casino in Rhode Island that would be operated by the State of Rhode Island in conjunction with the Narragansett Indian Tribe and Harrah’s. GTECH President and CEO W. Bruce Turner said, "GTECH has committed to a growth plan that anticipates substantial contributions from our Gaming Solutions division. This agreement with Harrah’s provides us with a tremendous platform to introduce our games and technology into the top casino markets in the world. Perhaps as valuable as the placement of these machines is the ability we will have through this relationship to develop new game content in cooperation with Harrah’s slot management staff." Harrah’s Chairman, CEO, and President Gary Loveman added, "The gaming-machine segment of the commercial casino industry will benefit from a successful entry by GTECH, whose commitment to growth is evidenced by its purchase of Spielo and planned acquisition of Atronic. We look forward to working with GTECH, and sincerely appreciate its support of our development efforts with the Narragansett Indian Tribe. GTECH is a successful Rhode Island business that has demonstrated its commitment to improving the economic climate of the state." Narragansett Chief Sachem Matthew Thomas commented that, "The Narragansetts and GTECH have had a relationship of mutual respect and admiration that began with the Company’s support of our economic development activities in 1994. We’re pleased that they have joined our efforts to bring financial prosperity and economic independence to our people. This is another example of the important role a world-class company like Harrah’s can play in uniting respected and meaningful companies like GTECH with our efforts. It is also another endorsement of the substantial positive economic impact this project will have on all of Rhode Island."
"The Narragansett Indian Tribe earned our respect during our support of their 1994 efforts to authorize a casino project in West Greenwich. We appreciate the struggles they’ve had to endure and the challenges they have had to overcome to make this project a reality," said Mr. Turner. "GTECH also has a long history with Harrah’s through our joint ownership of Turfway Park. We enjoy strong managerial relationships to the extent that Gary Loveman will be the keynote speaker at GTECH’s biennial customer event, the World Leaders Forum, being held next week in Washington, DC. We view this new relationship as a natural extension of our business dealings with Harrah’s, and look forward to future opportunities for us to continue to expand our relationship. We are pleased to lend our support and participate in the effort to make the Narragansetts’ project in West Warwick a reality." Mr. Turner added that the market can support the new project as well as existing facilities, and that the revenues the state derives from gaming activities will increase once the facility is opened. He also expressed confidence that Harrah’s and the Narragansett Indians will be able to deliver on their commitment to create a world-class entertainment facility and one of the largest economic development projects in the history of the state. Over the next two years, GTECH expects to receive approximately $5.8 million in revenue for the placement of 200 machines. GTECH, a leading global information technology company with over $1 billion in revenues and 5,300 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. For more information about the Company, please visit GTECH’s website at http://www.gtech.com. SOURCE: GTECH Corporation (http://www.gtech.com) media release.
Texas Lottery Commission Adopts Mega Millions Game Changes AUSTIN, Texas (May 10, 2005) - During today's public meeting of the Texas Lottery Commission, the three-member board unanimously voted to adopt proposed rule amendments to the Mega Millions game, with a planned start date for the changes effective June 22, 2005. This action follows an announcement that the California Lottery plans to become the twelfth member state to join the game.
"With the addition of California's anticipated increase in the overall sales of Mega Millions, we expect a rapid increase in the Mega Millions jackpot levels per roll cycle," said Texas Lottery Commission Executive Director Reagan E. Greer. "It's our belief that increases to the jackpot amounts will translate into increased sales and increased revenue to the Foundation School Fund. Since Texas joined Mega Millions in December 2003, the game has generated $382 million in sales and resulted in the transfer of more than $151 million in revenue to the Foundation School Fund in support of public education." The Texas Lottery estimates that incremental revenue to the Foundation School Fund is expected to average more than $15 million per year. The adopted changes to Mega Millions include: NEW MATRIX: Players will choose five numbers from 1 to 56 and then a Mega Ball number from a second field of 1 to 46. HIGHER STARTING JACKPOTS: The starting grand/jackpot prize amount will change from $10 million to $12 million. HIGHER PAYOUTS FOR SECOND AND THIRD TIER PRIZES: The second prize level will change from $175,000 to $250,000 and the third prize level will change from $5,000 to $10,000. ODDS TO WIN GRAND/JACKPOT PRIZE: The odds of matching all the numbers and the Mega Ball for the grand/jackpot prize will change from 1 in 135 million to 1 in 175.7 million. BETTER OVERALL ODDS: The overall odds of winning any prize will be approximately 1 in 40, changing from 1 in 43. 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 Press Release. Contact: Kristina Tirloni, 512-344-5144 or Media Relations, 512-344-5131. Report on the European States Lotteries and Toto Association's Sports Betting Seminar: Live Betting SWITZERLAND (May 11, 2005) -- Hosted by the Austrian National Lottery and organized by the European States Lotteries and Toto Association, the European Lotteries Sports Betting Seminar was held in Vienna May 02 to 05, 2005.
More than 75 participants from 40 different organisations gathered for a very interesting program put together by the Sports Betting Working Group led by Jens Nielsen, Head of Oddscompiling, Dansk Tipstjeneste. Following the opening address by Dipl. Ing. Friedrich Stickler, Director of the Austrian Lottery, some 25 different speakers gave presentations on the following six themes:
The participants had also the opportunity to sample another sports activity by attending the Ice hockey game Germany – Czech Republic, on Tuesday night. On Wednesday night, the participants had also the opportunity to experience the excitement of live betting while watching the AC Milan – Eindhoven football match on a giant screen. Live betting, with mock money, was managed based on odds provided through the Internet. Based on the comments received, and the high number of the participants, the Seminar was quite an impressive success. So much so that the EL Sports betting seminars are fast becoming the best attended and the benchmark in the industry. SOURCE: Bernadette LOBJOIS, Secretary General, European State Lotteries and Toto Association, Switzerland (Email: nfo@european-lotteries.org).
Bovine Unite to Redefine 'Cow Tipping' in the Maryland Lottery's 'Let Yourself Play' Campaign BALTIMORE, Maryland, USA (May 5, 2005) -- For the past month, cows have been roaming free all over Maryland. Cows (or, perhaps humans dressed as cows) were seen grazing at tailgate parties, getting their hoofs done, paying their taxes, exercising at gyms and even shopping at the mall. When approached, they "moooed" and directed humans to www.bovineunite.com for more information. The web address also appeared on billboards, t-shirts and online advertising.
The mysterious website included games, videos of the cows in action, a blog authored by Millie the Cow, and a message board. Visitors from around the world logged onto the site. However, the website did not reveal who was behind all the fun. It just offered another clue - to tune in to local TV stations on C-Day, 05/05/05. This strange behavior left many to wonder ... what is "Bovine Unite?" Today, Marylanders learned that Bovine Unite is part of the Maryland Lottery's ongoing "Let Yourself Play" campaign. The cows are starring in a new commercial where they get even with humans by redefining "cow tipping." In this case, the cows tip a sleeping young man from his bed in the spirit of "In life, whoever has the most fun wins." "The bovine unite campaign is a great example of having fun, and that is what the Maryland Lottery is all about," said Maryland Lottery Director Buddy Roogow. "The cows remind people to take a break in their day to have some fun." The "Let Yourself Play" campaign, launched in 2000, has helped the Lottery become the third largest contributor to Maryland's General Fund.
The Lottery has generated record sales and revenue for six consecutive years and is well on its way to exceed projections for the current fiscal year. "In order for the Lottery to continue its positive sales trend, we need to keep evolving our marketing strategy and utilizing new tools to reach out to our players. We're always looking for innovative games and promotions to keep our product line fresh and exciting," said Roogow. "This grassroots and online marketing campaign was designed to help the lottery to continue making contributions to the state." Also on C-Day, the Lottery introduced a new web site, www.letyourselfplay.com. The site focuses on the "Let Yourself Play" theme - utilizing vibrant colors, animation, and appealing content. It features engaging videos, interactive games, and a "making of" video about the cow commercial. For more information on the Maryland Lottery, visit http://www.mdlottery.com. SOURCE: Maryland Lottery. Former Deputy Secretary of the Florida Lottery Joins Lottery Dynamics IRVING, Texas, USA (May 9, 2005) – Lottery executive Michael Frick has left the public sector to join Lottery Dynamics LLC as Vice President, Marketing for North America. Frick, who was Deputy Secretary of the Florida Lottery for two years until May 4, 2005, brings his extensive experience to Lottery Dynamics whose patented Lotto Gold+™ program is being launched and marketed worldwide. "My first reaction to Lottery Dynamics’ Lotto Gold+™ concept was one of excitement and relief," Frick said. "I remember thinking, ‘Finally!’ Here’s a game concept that is completely aligned with my own research and articles that I had worked on several years earlier.
"The Lotto Gold+™ concept is not only fundamentally sound, but, more importantly, it offers a mechanism to increase net income from online sales without increasing prize expense or otherwise compromising net margins. And, with so many lotteries struggling to keep profits moving in the same direction as sales, Lotto Gold+™ is being introduced at a time when the industry is sorely in need of such innovative solutions. I’m very excited to be a member of the Lottery Dynamics team." Stephan Egli, president of Lottery Dynamics, noted that Frick’s executive experience with several of the country’s largest lotteries "gives him unparalleled awareness of the key issues facing lotteries today in terms of the need to drive additional sales to the core Lotto game. Our programs are designed to address these issues with our evolutionary new features that offer player choice, player value and, therefore, greater player excitement. "As a result, we are extremely gratified that Michael is joining us. His authoritative knowledge of this business is a wonderful endorsement of our programs and we are confident that Michael’s expertise will enable us to fully address the needs of both lottery jurisdictions and players alike as we proceed with our global marketing." Lotto Gold+™ offers lotteries the opportunity to lift sales 40-100 percent. The key features of Lotto Gold+™ are multiple-priced ticket entry playing for a single, progressive jackpot and guaranteed higher starting jackpots. Frick is the author of various articles and industry presentations that examine the need to integrate pricing strategy into the product development process for online (terminal-generated) lottery games. His published articles on this subject include "The Missing P", Lottery Insights (NASPL – July, 2002) and "New Frontiers in Business Development," Public Gaming Magazine (August, 2004). In the first article, Frick demonstrated how the absence of effective long-term pricing strategies for the online game segment represents an economic loss of more than 10%, or $1.5 billion USD, in annual net profits since 1995. Frick has also pointed out that government transfers to public causes from online sales have not even kept pace with the rate of inflation during the past decade. In the latter article, Frick explains why the absence of effective long-term pricing strategies has been the single greatest constraint on sales growth in the online product segment, and shows how this problem has led to an erosion of net margins that threatens long-term profit growth for many U.S. lotteries. During Mr. Frick’s tenure with the Florida Lottery, it was rated by the Office of Program Policy Analysis & Government Accountability (OPPAGA) as one of the highest performing state lotteries, ranking first on two indices of performance based on four key measures:
Prior to joining the Florida Lottery, Frick served three years as Deputy Executive for Support Services at the Pennsylvania Lottery, where sales rose by more than 20 percent and annual profits climbed 12 percent. His previous state government experience includes serving in the Policy Office of Pennsylvania Governor Tom Ridge from 1995-1997 and as Corporation Bureau Director for the Pennsylvania Department of State from 1997-2000. Frick received a Bachelor of Arts in history, with honors, from Marquette University. He has also earned post-graduate degrees in law from Marquette University Law School and a Masters Degree in Business Administration, with honors, from Kutztown University of Pennsylvania. He is licensed to practice law in Pennsylvania and Wisconsin, and has argued successfully before the Pennsylvania Superior Court and Supreme Court of Pennsylvania. He currently resides in Crawfordville, Florida with his wife Tammy, his four-year-old daughter Mia, and one-year-old son Mason. SOURCE: Lottery Dynamics LLC (www.lotterydynamics.com) media
release. LAS VEGAS, Nevada, USA (May 10, 2005) – JCM’s new Universal Bill Acceptor (UBA) has been named of one Casino Journal’s Top 20 Most Innovative Gaming Technology Products for 2004. Now in its eighth year, the Top 20 list is recognized as one of the most prestigious honors bestowed on gaming products or services. JCM President Aki Isoi said, "We are thrilled to receive this honor. Every year from ICE to G2E, we see the world’s new technologies, and we are very proud to have been selected from such an esteemed group." A panel of four expert judges selected the UBA from a long list of entries. The UBA comes to life with groundbreaking acceptance and validation technology. Designed to accept multiple countries’ currencies in one version of firmware, the UBA boasts the most sophisticated security measures and sensing technology, utilizing magnetic and optical sensors, including infrared, red and green LEDs, phototransistors, UV, reflective, transparency and bar code sensors. The UBA accepts currency up to 85mm in width, and has one head for all global currencies. The UBA has a 99 percent acceptance rate and is forward and backward compatible.
Attendees to the Third Annual Gaming Technology Summit, which takes place May 25 and 26 in Las Vegas, will vote for their favorite products and services from the Top 20 finalists. About JCM JCM American Corporation is the industry leader in currency handling systems and provides products, software and services to the gaming, vending, banking, amusement, and petroleum industries. Since 1995, its products have validated an estimated $2.2 trillion in currency for the gaming industry alone. From its international headquarters in Osaka, Japan, and subsidiaries in Düsseldorf, Hong Kong, London, Sydney and its U.S. headquarters in Las Vegas, JCM’s progressive spirit continually sets worldwide industry standards with innovative products such as the World Bill Acceptor (WBA), Universal Bill Acceptor (UBA), Trident Table Safe System and Intelligent Cash Box (ICB). For more information, visit www.jcm-american.com. SOURCE: JCM American Corporation media release distributed
by Steinbeck Communications. Samoa Sports Lotto Comes of Age Article By Lottery Insider's Special Asia Pacific Correspondent
Under the new arrangements TMS Global will continue to provide services to the TAB Board and the retail network now renamed Samoa Sports Lotto Agencies. From May 1st 2005, SSLA as a new division of the TAB Board for the first time will come under local Samoan management control.
The Secretary of the TAB Board and prominent local accountancy firm partner Mr. Oloipola Terrance Betham said "as time has gone on since TMS Global assisted Samoa in setting up the access to the Australian lotteries increasingly the day to day operations have been managed by Samoans." "We have reached the stage where this senior Samoan management is more than capable of managing the day to day technical and administrative operations of these Tattersalls Australian lotteries though the TMS supplied technology systems and their ongoing technical support." "The technical operations of Samoa Sports Lotto have been run by our own Katie Reid for almost ten years now and we have every confidence in her and the rest of the Samoan staff." Mr. Betham went on to say: "we cannot speak more highly of the efforts TMS, its CEO Mr. David DeCampo and all of the staff of TMS in Australia, Yoshi, Alex, Debbie, Karyn and all the unseen hands at TMS have made in making this change in operations management go so smoothly." "We would also like to make special thanks to McCallum Consultants of Australia whose assistance in restructuring the business, liaising with TMS Global on new operating procedures and staff training in those new procedures proved invaluable," Mr. Betham Said. Article By Lottery Insider's Special Asia Pacific Correspondent California Lottery® Promotes New Star Wars™ Scratchers® With Licensed Collectible Coins IRVINE, Calif. (May 9, 2005) -- In an innovative move to build excitement for their new Star Wars Scratchers® game premiering this month, California Lottery® is offering a series of collectible, limited-edition coins as a value-added offer to consumers. The coins feature six different Stars Wars characters -- Darth Vader, Luke Skywalker, Princess Leia, Yoda, C-3PO and R2-D2 -- and are available at participating retailers for $1.00 with a Scratchers purchase.
The promotion was created by Alcone Marketing Group to celebrate the May 19 launch of Star Wars: Episode III, Revenge of the Sith. "We were looking for a concept that would uniquely connect the fun of Scratchers with the tremendous fan base linked to Star Wars," said Denise Kimes, SVP Group Account Director at Alcone. "We found the perfect solution in a film-based collectible that also serves as scratching device for the Lottery game." The collectible coins are the first continuity promotion for a California Lottery Scratchers game. Developing the program was no easy feat given a tight four-month window to complete overseas manufacturing of the coins, rigorous approvals with Lucasfilm Ltd., as well as sell-in of a new program with Lottery retailers. "Although the timing seemed impossible, we were so excited about the idea that we were committed to making it happen," said Tricia Metzger, Sales Director for the California Lottery. "We were able to sell the program to over 3000 retailers in a record ten days, thanks to the dedication of the sales team and the appeal of the offer." All aspects of the promotion are handled by Alcone Marketing Group including concept development, design and manufacturing of the exclusive coins, point-of-sale communications and program fulfillment. SOURCE: Alcone Marketing Group Press Release. GTECH Announces New Contract with Caixa Economica Federal in Brazil WEST GREENWICH, Rhode Island, USA (May 12, 2005) -- GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Brazil Ltda., has signed a new one-year contract with Caixa Economica Federal, the administrator of the National Lottery in Brazil. Under the terms of the new contract, which is to commence on the termination date of the existing Caixa contract on May 15, 2005, GTECH will continue to operate the existing lottery and financial transaction processing systems for Caixa until a new system, being developed in-house by Caixa, is installed and operational. At its sole discretion, Caixa may extend GTECH’s contract beyond the expiration date of May 14, 2006. The new contract retains all of GTECH’s service offerings under the current contract, and reflects a fixed and variable fee schedule. In return for the new contract, GTECH has agreed to a reduction in rate of approximately 12 percent from the previous contract pricing.
"GTECH has reached an agreement with Caixa that will support their migration path to a new business model," said GTECH President and CEO W. Bruce Turner. "We will continue to work closely with Caixa and its vendors in order to assist in a seamless transition and gradual exit by GTECH." Based upon Caixa’s de-installation schedule, and in accordance with previous guidance, the Company expects revenues of approximately US$105 million to $120 million from the Caixa contract during fiscal 2006, including the recovery of withholding payments from fiscal 2005. With respect to the new contract, the Company expects to generate approximately US$80 million to $85 million in service revenue over the contract term, which essentially runs from the second quarter of fiscal 2006 through the end of the first quarter of fiscal 2007. GTECH, a leading global information technology company with
over $1 billion in revenues and 5,300 people in over 50 countries, provides
software, networks, and professional services that power high-performance,
transaction processing solutions. SOURCE: GTECH Holdings Corporation, Web Site:
http://www.gtech.com. United Tote Wagering Terminal Wins Award for Innovation GLEN ROCK, Pennsylvania, USA (May 4, 2005) United Tote Company’s F4 full-service wagering terminal has been named by Casino Journal as one of the Top 20 Most Innovative Gaming Technology Products. Now in its eighth year, the Top 20 Most Innovative Gaming Technology Awards are considered to be one of the most prestigious honors in the gaming industry. Companies from around the world submitted nominations, which were evaluated by a select panel of expert judges.
Upon learning that the F4 was selected to be included in the Top 20 list, United Tote’s CEO, Joe Tracy said, "I’m both pleased and proud to have the F4 terminal included as one of the top 20 gaming products of the year. No other wagering terminal in the gaming industry has the distinction of receiving this sort of recognition. It really sets our terminal apart from the others." United Tote’s F4 Wagering Terminal and the other Top 20 Most Innovative Gaming Technology Products will be featured in the June edition of Casino Journal. Attendees of the Third Annual Gaming Technology Summit will vote for their favorite products and services from among the Top 20. The top three vote getters will receive platinum, gold, and silver medals as the Most Innovative Gaming Technology Products in 2004. The three winners will be honored during the keynote luncheon at the Summit on May 26, 2005, and featured in the August edition of Casino Journal. The F4 terminal was designed and built by United Tote from the ground up. KenVlazny, United Tote’s Vice President of Product Development and Marketing added, "Developing the F4 terminal was an ambitious, challenging, and highly rewarding project for everyone involved. It’s extremely gratifying to be recognized by industry peers and to be included as one of the Top 20 products selected by Casino Journal’s panel of judges." The terminal is being used this year at the New York Racing Association (NYRA) tracks, including Aqueduct, Belmont, and Saratoga. In Kentucky, the F4 is at Keeneland racetrack and Churchill Downs. Other facilities using the terminal include Dover Downs in Delaware, Capital OTB in New York, and Pikeville OTB in Kentucky. The F4 is specifically designed to run with United Tote’s user-friendly EnterBet™ interactive touch-screen user interface and supports the company’s FastBet™ Cards, which make cashless and ticket less wagering possible for customers. The terminal also includes numerous innovations not available on any other full-service wagering terminal. Further information on United Tote’s products and services is available at www.unitedtote.com. Founded in 1959, United Tote is a gaming technology and content services company headquartered at 11505 Susquehanna Trail, in Glen Rock, Pennsylvania. United Tote also has a Research and Development facility in San Diego, California. The company currently employs over 300 individuals in the United States and Canada. SOURCE: United Tote media release.
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APIA,
Samoa (May 11, 2005) -- As of May 1st, 2005 the TAB Board of Samoa
have taken direct management control of the Samoa Sports Lotto organization.
The retail stores and agencies group set up a decade ago by the now defunct
Sports Federation has marketed Australia's Tattslotto games in Samoa for the
past 10 years with the distribution, technical and marketing assistance of the
TMS Global company of Melbourne Australia. Under this arrangement Samoans have
had access to Saturday Tattslotto, Powerball, Keno and Oz Lotto games.
Interplay Multimedia Pty. Ltd. disclaims all liability for information provided within Lottery Insider -- Data supplied by named sources. |