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Vol. 31 No. 8 -- Monday May 23, 2005
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  • Study Shows Norsk Tipping's Games Spice Up Everyday Life. Full Story
  • Interim Missouri Lottery Director Named. Full Story.
  • California Lottery's "New Look" Retailer WebSite. Full Story.
  • INTRALOT Signs NZ Gaming Machine Monitoring Contract. Full Story.
  • OGT’s Winning Concepts® Contest Will Challenge Graphic Design Students. Full Story.
  • Loto-Québec Responds to Citizens' Desire to Know Where its Earnings and Profits Go. Full Story.
  • SCEL Exercises Option to Extend Scientific Games' Online Lottery Contract . Full Story.
  • Kansas Lottery Re-launches eScratch Game. Full Story.
  • Maine State Lottery to Release New $10 ticket! Full Story.
  • Statewide Sales Begin for World's First Electronic Version of Instant-Scratch Game. Full Story.
  • Missouri Lottery Awards Scientific Games Instant Ticket Contract Extension. Full Story.
  • Loterie Nationale Luxembourg to Revamp Popular Show. Full Story.
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Games Spice Up Everyday Life

Extensive Study Carried Out by the Theological Faculty at the University of Oslo and MMI, Commissioned by Norsk Tipping

Article By Bjørn A. Takle

NORWAY (May 20, 2005) -- Norsk Tipping offers games of high entertainment value. The games serve as a stimulant in daily life, and are, for many people, a small contribution to increased joy in life.

The Norwegian people spend a considerable amount of time and money on games with Norsk Tipping, and it is not just a hope for big prizes that triggers this behaviour. People are fully aware that the chance of winning at Lotto is small, yet positive experiences nevertheless make them participate week after week. In spite of the small probability, every week brings evidence that someone has actually won. People, as a consequence, think they may well be next. These are some of the conclusions drawn by researcher, Roger Jensen, and Professor Svein Aage Christoffersen, of the theological faculty at the University of Oslo, in collaboration with MMI, after having carried out two studies on people’s relationships to money games.

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The study indicates that several other excitement factors associated with the games are, in fact, just as important as is the dreamed of, big prize. This is explained by the fact that smaller prizes give a so-called ‘low-voiced joy,’ which is the reason why people also enjoy participating in games with smaller first prizes. The researchers explain ‘low-voiced joy’ as something that life does not depend upon, but which is a joy, in itself, to linger upon – no matter what amount may be won. Five hundred Norwegian kroner is not enough to fulfil one’s highest dreams, but it still serves as a form of satisfaction. In money games with higher winnings, such as Lotto, the daydream appears to be the most important reason for playing.

The results from the study also contribute to disproving the myth that a game necessarily is a lonesome activity. For many people, games even represent an important social activity, with gaming machines as an exception. People are spending time with friends and meet new people through games. This includes especially bingo, lottery tickets and bazaars, yet also scratch tickets and Lotto. Playing on gaming machines is the only gaming activity where the social aspect is less dominant. For some games, it is also customary for players to have their own rituals. This is particularly true for games like Lotto and Flax. Many have their own dedicated time, preferably at home near the kitchen or coffee table, and in front of the television during drawings. In this way, money games serve a ritual function in people’s everyday lives. For some people, these are positive and beloved moments with friends and family that can contribute to strengthening a social fellowship. Gaming machines stand out again: the study reveals that some people feel ashamed by gaming on machines and therefore oppose it. Some also play because they want to, or feel obliged to, support the objectives attached to the games. This applies primarily to locally-based games, but is also related to scratch tickets, where it seems that identifying with the profit beneficiary is important to the players. In this regard, gaming machines also stand out as being the gaming category in which identifying with the profit objective plays no substantial role.

Norwegians enjoy games. As a matter of fact, we are among the most ‘games happy’ people in the world. Individually, we do not play for much, but a large share of the population plays. In 2004, more than two million customers played for more than NOK 9.6 billion with Norsk Tipping. The game expenses are, in other words, divided among a considerable number of us. And even though we must not forget that there are also negative aspects of gaming, a great majority of the study’s respondents characterize gaming as a positive experience. It can be said to be both recreation and escape from reality – on a positive note. People in Norway seem, in general, to be quite rational beings – almost on the brink of being boringly down to earth and level-headed. Even though many, in their heart of hearts, dream of prizes, the dreams generally involve paying off loans, renovating the house, buying a car, going on vacation or putting aside money for the children. While people are being down to earth, their daydreams serve to uphold a horizon of expectations in day-to-day activities. One dreams of making daily life simpler, easing economic burdens and gaining more liberty to realize the desire to live an all-around good life – consisting of relatively simple pleasures like decent cars and vacations, among other things. The study also shows a clear relationship between the dreams, and how the respondents that have won prizes look back upon, and account for, how the prizes were actually used.

Proven gaming happiness

According to MMI’s study, the games run by Norsk Tipping produced a lot of joy for 825,000 Norwegians, while 1.14 million experienced some joy from money games. By joy, they primarily mean that the money games create expectations and excitement. Furthermore, players become, to some degree, cheerful, exhilarated and satisfied, in addition to feeling lucky, smart and skillful. Positive experiences dominate completely, while some games delight more than others. The players find particular joy in the games Lotto and Extra. The two most dominant positive feelings are anticipation and excitement. In addition, every third player is of the opinion that the games make them happy and satisfied. Every fourth player feels in high spirits, exhilarated and lucky, and thinks that the games are a source of wellbeing. With regard to negative feelings, these are stronger for Oddsen than for several of the other games. However, the negative feelings are confined to a shortterm disappointment and a little irritation, perhaps because the teams that the money was bet on did not meet expectations. Oddsen is also the game that yields the strongest positive feelings. Oddsen creates excitement and expectations, and the players become happy and satisfied. In addition, those playing at Oddsen feel smart, skillful and successful.

FACTS ABOUT THE STUDY

The study was commissioned by Norsk Tipping

Target group:- Persons 15 years of age and older, on a nationwide scope, who have played at least one of Norsk Tipping’s games during the last three months.

Methodology and sample size:- The survey consisted of 3,020 phone interviews covering gaming behaviour, as well as some attitudes towards, and experience with, money games; and 1,527 postal interviews regarding positive and negative perceptions related to games that the respondents had played during the last three months. Each respondent answered only for one game.

Period:- The field research was conducted in November, 2004.

SOURCE: Norsk Tipping AS.
CONTACT: Bjørn A. Takle, Press Spokesman, Tlf: +47 62 51 40 00, Fax: +47 62 51 40 96.


Interim Missouri Lottery Director Named

JEFFERSON CITY, Missouri, USA (May 17, 2005) -- The Missouri Lottery Commission has named Gary Gonder, director of communications, to serve as interim Missouri Lottery executive director. The commission unanimously approved Gonder during a meeting on May 12.

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Gonder was named acting director subsequent to the resignation of Jim Scroggins, who has accepted the position of executive director for the new Oklahoma Lottery. Scroggins last day with the Missouri Lottery is June 2.

Gonder has served as the Missouri Lottery's communications director since 1992. He is a graduate of the Lottery Futures College and the Erewhon State Lottery Case Studies Program.

Gonder is a past recipient of the National Association of State and Provincial Lotteries (NASPL) Powers Award and the Missouri Governor's Award for Quality and Productivity. He is a past chairman on the board of the Missouri Alliance to Curb Problem Gambling.

Gonder holds a bachelor's of journalism degree and a master's of public administration degree from the University of Missouri.

Prior to coming to the Missouri Lottery, Gonder served eight years as the director of the Missouri Film Commission.

SOURCE: The Missouri Lottery.
CONTACT: Susan Goedde, Phone: (573) 526-7425

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California Lottery's "New Look" Retailer WebSite – www.calottery.biz

CALIFORNIA, USA (May 11, 2005) -- There’s a "new look" for Lottery retailers using the California Lottery’s Retailer Website! In 2002 the California State Lottery’s Sales Division implemented a website specifically designed for Lottery Retailers. The website uses the latest web-design technology and is a cost-effective way to send up-to-date information to the over 18,000 California State Lottery’s statewide retailer base.

In May 2005, the California State Lottery rolled-out the newest "look and feel" enhancement for its retailer website (www.calottery.biz). The retailer website initially provided information to the Lottery’s key accounts but now also provides information to independent retailers. The site is available to retailers 24-hours a day/7 days a week with weekly updates. Retailers can access reports to assist in maintaining inventory controls; publications and promotion information for current games to address their own questions as well as those from their customers; and, obtain financial information for business planning and goal purposes.

The redesign of the website was done as a collaborative project and application development effort, the Lottery Sales Division, and Alcone Digital (an Alcone Marketing Group Company) developed a sample webpage redesign directed at improving the look and ease of website navigation by retailer users. Lottery project management staff gathered business requirements, suggestions, and input from the retailer community, the Lottery’s Retailer Advisory Board, Corporate Accounts, Key Account Specialists, and Lottery Sales staff. After all the information was gathered, and compiled, the Sales Division partnered with the Lottery’s Application Development Department, the Lottery’s Microsoft Consultant, and the Lottery’s Project Management Team to select a new "theme", and define specific business objectives to support the retail user community.

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The task for the team was to develop the site to provide enhancements without taking away any features. The "new" site provides ease of navigation, links to featured promotions, and specific information to the top selling California retailers. Additionally, the project design team focused on the need to maintain the retailer’s current financial data, and reporting functionality.

The project design team felt it critical not to take anything away from the retail user, but to enhance, and improve their website experience. Authorized retailers logon to the secure site with a unique user ID, and password, and find themselves directed to their home page display of specific sales, and commission information provided by the Lottery’s gaming contractor, GTECH, Inc.

Calif. Bussiness website

The California State Lottery hit a home run with it’s retailer community! With the new website launch, the Sales Division, and the project design team plan future improvements, and enhancements. Planned enhancements include an on-line survey feature, auto-email communications and expanded detail of financial reporting information for the retailer community.

Sales Input

This website, initially available to the Lottery’s key accounts, now also provides information to independent retailers. The site is available to retailer’s 24-hours a day/7 days a week with updates available early Sunday afternoons each week. Retailers can access reports to assist them in maintaining inventory controls; publications and promotion information for current games to address their own questions as well as those from their customers; and obtain a current picture of their Lottery business to set goals for themselves, understand their Lottery business and quickly adjust to correct any downward trends in their business.

Future enhancements include reports and graphs available for retailers to compare sales by total and/or product within specific parameters such as statewide, zip code, or sic code.

SOURCE: California Lottery.
CONTACT: Bruce Singer or Cathie Paige at the California State Lottery.

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INTRALOT Signs Contract for Electronic Monitoring of all Gaming Machines in New Zealand

ATHENS, Greece (May 17, 2005) -- Following an international procurement, the Department of Internal Affairs has signed a contract with INTRALOT New Zealand Limited, the local arm of European gaming technology company, INTRALOT SA, for the provision and operation of the electronic monitoring system (EMS) for all gaming machines in pubs and clubs.

Department Deputy Secretary Andrew Secker said that the contract is for NZ$ 35 million over six years.

Mr Secker said that EMS will greatly increase the accountability of the gambling sector. Incorrect banking and inaccurate record keeping by gambling operators are the most common problems found during audits carried out by the Department.

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Gaming machines are allowed in pubs and clubs as a form of community fundraising only. They are a cash-only operation that last year made a profit of NZ$ 1.035 billion in banknotes and coins from a turnover of more than NZ$ 8.6 billion.

Currently gambling operators’ record keeping is manual. There are more than 20,000 machines at more than 1,800 venues throughout the country.

"Electronic monitoring of gaming machines is standard practice throughout the world because of the huge cash turnovers," Mr Secker said. "Monitoring systems are already in place in New Zealand’s casinos and will now be used in pubs and clubs through EMS. "EMS will help safeguard money intended for community groups."

Department staff have visited some of the jurisdictions that have INTRALOT systems in place and have been impressed with the technical sophistication and operation of these systems. Regulators have expressed a very high standard of satisfaction with all aspects of INTRALOT'S involvement in the supply, rollout and operation of the systems in their jurisdictions.

INTRALOT SA CEO, Mr Constantinos Antonopoulos, said: "We are excited about the contract with the Department and we are looking forward to working with them. It is a strong endorsement of our V-LOTOS™ capabilities. Moreover, it is a significant moment for INTRALOT since it is our first agreement in Oceania."

What EMS will do? EMS will give the Department information allowing it to:

  • monitor how much money is gambled on each machine
  • monitor how much each machine pays out in prizes to gamblers
  • monitor how much money should be banked
  • ensure that all software being used on the machines is identical to the approved versions
  • assist in detecting software failures
  • assist in detecting tampering with a machine or software.
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The implementation will start by the end of 2005, while all machines are to be connected by mid March 2007.

INTRALOT currently has gaming machine monitoring operations, based on its V-LOTOS™ platform, in two European jurisdictions and the same system will be used in New Zealand. INTRALOT is also actively involved in the rollout and subsequent operation of many of the systems they supply.

New Zealand will be its first substantial presence in this region.

INTRALOT, a public listed company on ASE, is a leading supplier of integrated gaming and transaction processing systems, innovative game designs and added value services to state-licensed gaming organizations and financial services providers worldwide. INTRALOT is a five continent company with 31 subsidiaries, seven business offices, 1,500 people in 28 countries and annual revenues of €325.8m. The company currently ranks 3rd on revenues and 2nd on profits among lottery suppliers worldwide.

For more info: Mrs. Christina Geronicola, Communications Director, Phone: +30-210-6156000 – Fax: +30-210-6106800, email: geronicola@intralot.com
Andrew Secker, Deputy Secretary, Regulation and Compliance Branch, Phone 04 495 9329, Cellular 027 281 5211
Vince Cholewa, Communications Advisor, Phone 04 495 9350, Cellular 027 272 4270.

SOURCE: INTRALOT (www.intralot.com).


OGT’s Winning Concepts® Contest Fifth Edition Will Challenge Graphic Design Students Worldwide through the Internet

MONTREAL, Quebec, Canada (May 17, 2005) -- Oberthur Gaming Technologies ("OGT") is pleased to announce a new format for the Fifth Edition of its Winning Concepts® Contest. Previously offered to Canadian students only, OGT’s Winning Concepts® Contest, organized for the benefit of OGT valued clients, will be opened to full-time college and university students registered in a graphic design program in several countries, states and provinces where OGT has lottery clients.

OGT’s Winning Concepts® Contest is aiming at bringing new ideas to OGT and Lotteries’ Marketing teams and Product Managers, as well as promoting the lottery industry that is virtually unknown by educational institutions, graphic design students and public in general. Furthermore, the Contest will generate interest from the emerging market (18/21 – 34) who currently does not play instant lotteries and who actually represents the main target of Lotteries’ marketing strategies.

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Winning Concepts® Contest Fifth Edition will result in an exclusive catalog of the best instant lottery designs that will be available to OGT's clients in spring 2006. In addition to be a remarkable source of ideas from around the world, the catalog will enhance Lotteries’ exposure for the quality and creativity that may come out from their respective jurisdiction.

Winning Concepts® Contest four previous editions have proved very successful, and became extremely popular with the Canadian educational institutions and graphic design students since its first launch in 1993, the number of participants having increased by close to 800% over the years for a cumulative total of close to 2,500 projects up to now. "By expanding the contest to our clients’ jurisdictions around the world, we significantly reinforce our contribution to the lottery industry evolution and increase our capacity to provide our clients with innovative and original products," said André Nadeau, Senior Vice-President, Marketing and Strategic Development. "OGT Winning Concepts® Contest has always been a great way to enhance the profile of the graphic designers of tomorrow and give the new generation a concrete opportunity to get recognition for their creativity and originality."

About Oberthur Gaming Technologies (www.oberthurgt.com)

With more than 35 years of lottery-specific expertise and over a century's experience in the security printing industry, Oberthur Gaming Technologies is the world’s leader in the printing of innovative instant lottery tickets. Comprehensive services include strategic game planning and innovative conceptual design with OGT’s Dream Team™, mobile gaming, Cyber Games™ as well as state-of-the-art Global Operations and Lottery Distribution System (GOLDS). OGT currently supplies a full range of high quality and innovative products and services to 100 clients in some 50 countries. The company has production units and offices in Montreal, Canada; San Antonio, Texas; Atlanta, Georgia; Philadelphia, Pennsylvania in the U.S.; Paris, France; Vienna, Austria; and Sydney, Australia.

SOURCE: Lyse Trudel, Communications Officer, Oberthur Gaming Technologies, (+1-514) 254-3600, ext. 101, Email: lyse.trudel@mtl.oberthurgt.com.


Loto-Québec Responds to Citizens' Desire to Know Where its Earnings and Profits Go

MONTRÉAL, Quebec, Canada (May 13, 2005) - Marking its 35th anniversary this year, Loto-Québec is proceeding over the next few days with a distribution of an informative brochure to reach all Québec households. The brochure has been designed to answer questions regarding what happens to the Corporation's revenues and profits. In fact, this is consistently a matter of public concern, and Loto-Québec studies have indicated that 86% of the population is somewhat or very unfamiliar with how the Corporation's earnings and profits are allocated. Moreover, 80% of people expressed an interest in knowing where these profits go.

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The brochure provides a concise review of Loto-Québec's social contributions and of the economic spin-offs the Corporation generates by various ways and means. These include dividends paid to the government, prizes paid to winners, purchases of goods and services, different types of contributions to charitable organizations, direct and indirect jobs, tourist attractions, event sponsorships, support of the visual arts, as well as investments in the promotion of responsible gaming.

The publication will be mailed out over the course of a few days to all households in Québec, with the exception of the Island of Montréal, where citizens will find the brochure in the May 14 weekend edition of their daily newspapers. The document is also available in PDF format in the "News Room" section of the Corporation's Web site.

"We wish to provide some clear and simple answers to the many citizens who have expressed an interest in how Loto-Québec makes use of its revenues and those who want to know more about our numerous social contributions and the economic benefits generated by our activities," explained Pierre Bibeau, Senior Vice-President of Corporate Communications and Public Affairs.

Loto-Québec earned revenues of nearly $3.8 billion during fiscal 2003-2004, and each year, the Corporation returns the fruits of its activities in their entirety to the government and the community at large. Employing a current workforce of close to 7,000, the Corporation has remitted a total of $17 billion in dividends to the government since its creation 35 years ago.

SOURCE: Loto Quebec media release.
For more information
CONTACT: Jean-Pierre Roy, Media Relations Department, Phone: (514) 499-5151.


South Carolina Education Lottery Exercises Option to Extend Scientific Games' Online Lottery Contract to November 2008

NEW YORK, USA (May 13, 2005) -- Scientific Games Corporation (Nasdaq: SGMS) announced that the South Carolina Education Lottery (SCEL) has exercised the final one-year option to extend Scientific Games' online lottery contract. The option is valued at $5.4 million and extends the contract until November 15, 2008.

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Scientific Games helped SCEL launch its new lottery in 2002. Since inception, the Lottery has generated over $2.8 billion in lottery sales and transferred over $798 million to the South Carolina Education Lottery Account.

"We are very proud of our role in assisting SCEL these past three years and look forward to continuing to help maximize sales and generate more funds for education," said Lorne Weil, Chairman and CEO of Scientific Games Corporation. "SCEL has been a great success from the start and our top priority will be sustaining and building upon that foundation in a changing environment. The lottery is already a part of daily life in the Palmetto State and we want to make sure the product mix remains fresh and fun."

Ernie Passailaigue, Executive Director of SCEL, added, "We have worked very closely with Scientific Games and have witnessed great results. We are confident that over the next few years Scientific Games will continue to be an excellent partner."

About Scientific Games

Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators.
It is also a licensed pari-mutuel gaming operator in Connecticut and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies.
Scientific Games' customers are in the United States and more than 60 other countries. For more information about Scientific Games, please visit our web site at http://www.scientificgames.com.

SOURCE: Scientific Games Corporation.
CONTACT: Lisa D. Lettieri, Phone: +1-212-754-2233


Kansas Lottery Re-launches eScratch Game

TOPEKA, Kansas, USA (May 17, 2005) -- The Kansas Lottery is this week re-launching a new and improved eScratch game. The new version boasts a top prize of $50,000 and the best odds of any Kansas Lottery game to date.

In addition to enjoying higher payouts and improved odds, eScratch players will be able to choose from more than 20 entertaining and interactive Internet games, including Hunting Bonanza, Groovy Hoops, Casino Golfer, Monopoly and Spin Words.

"Sales of eScratch have been somewhat disappointing since the initial launch of the game one year ago," said Kansas Lottery Executive Director Ed Van Petten. "Our players have suggested ways to make the game better, and we've listened. We think Kansas Lottery players will really like the new eScratch, and we're urging them to give it a try."

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In addition to improving the odds, upping the top prize to $50,000, and adding a variety of new interactive games, the Kansas Lottery has made eScratch easier to play by revising the pricing and prize payout structure and adding an optional play slip. A new Name in Lights feature, which allows players to compete for high score, is another enhancement.

A first-of-its-kind interactive Internet lottery game, eScratch is designed to add entertainment value to the lottery experience. After purchasing eScratch at any Kansas Lottery retail location, the player accesses the eScratch Web site at www.escratchks.com to play a variety of games. After playing the games, the player will find out if he or she has won. The player then returns to the retailer to claim his winnings (claims over $599 must be claimed through the Lottery).

While eScratch provides an opportunity for "extended play" entertainment, playing the games on the Web site is not necessary to win, and high scores in eScratch games do not affect winnings. A player always has the option of checking an eScratch ticket immediately to determine if it is a winner. Once a ticket is checked, however, it cannot be played on the Web site.

The Kansas Lottery is currently running television and radio ads to help educate players about the re-launch of eScratch and improvements in the game. To find out more about eScratch, players may also pick up an All Games Brochure at any Lottery retailer or visit www.kslottery.com.

SOURCE: Kansas Lottery media release.
CONTACT: Sally Lunsford, Phone: (785) 296-5708, Email: sally.lunsford@kslottery.net.


Maine State Lottery to Release New $10.00 ticket!

WPT LogoMAINE, USA (May 16, 2005) -- The Maine State Lottery will be releasing a new $10.00 $1,000,000 Hold'em Poker instant game on June 1, 2005. Lucky players could win $1,000,000. Enter any non-winning Hold'Em Poker ticket for a second chance to win prizes, including the $1,000,000 CASH GRAND PRIZE, four ULTIMATE POKER EXPERIENCE prizes and more than 2,300 WORLD POKER TOUR prize packs!

In the ULTIMATE POKER EXPERIENCE you could be one of four lucky winners to experience the ultimate poker player's dream prize - a seat at a US qualifying World Poker Tour tournament event of your choice.

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  • One entry into a World Poker Tour tournament event (Maximum $10,000 buy in);
  • Round-Trip airfare for two (2); and
  • 6 nights/7days hotel accommodations and $1,000 spending cash.

Upon arrival at the event, a poker professional will give you private lessons to help sharpen your skills before the tournament.

You and your guest will each receive a complete Hold'Em Poker Prize Pack (Poker table top, World Poker Tour 300 Chip Set, World Poker Tour Sunglasses, World Poker Tour Wall Clock, World Poker Tour Tumblers, Cooler Bage & Fleece Blanket).

The Ultimate Poker Experience also includes two spectator tickets to attend the final round of your chosen World Poker Tour tournament. With any luck, you will only need one ticket for your guest, as you may be sitting at the final table, playing for the tournament purse and ultimately qualify for a seat at the World Poker Tour Championship Tournament at the Bellagio in Las Vegas.

SOURCE: Maine Lottery media release.


Lottomatica Approves 2005 First Quarter Results

ROME, Italy (May 12, 2005) -- The Board of Directors of Lottomatica S.p.A., chaired by Mr. Rosario Bifulco, approved today the Consolidated figures for the 1st quarter of 2005.

Consolidated Income Statement (€/mil)

March 31, 2005

delta %

March 31, 2004

Net Revenues

186.6

+21.1%

154.1

EBITDA

119.1

+53.7%

77.5

EBITDA %

63.9%

 

50.3%

EBITA

106.1

+72.6%

61.5

EBIT

92.6

+93.1%

48.0

EBIT %

49.6%

 

31.1%

Net Income

54.0

+128.3%

23.7

Consolidated net revenues totalled 186.6 million Euro in the 1st quarter of 2005, growing by 21.1% compared to 154.1 million Euro in the 1st quarter of 2004. It should be noted that the two quarters show a different scope of consolidation due to the presence, in the 1st quarter of 2004, of the company Global Bingo Corporation which was deconsolidated as of 2004 1st half-year. Such revenues, including the face value of top up cards and the commission due to the points of sale, totalled 370.1 million Euro (348.3 million Euro in the same period of 2004).

Compared to the 1st quarter of 2004, the increase in revenues is due both to higher Lotto wagers and to the positive result recorded in the Services and Scratch & Win lotteries businesses.

Lotto wagers totalled 2,403 million Euro in the 1st quarter of 2005, compared to 1,961 million Euro in the same period of 2004. Revenues for Lottomatica total 155.2 million Euro, growing by 22.2% compared to 127 million Euro as of March 31, 2004. As usual, it must be pointed out that, due to the effect of the Lotto game commissions’ decalage system, the figures concerning the overall volume collected and the consequent revenues for the period in question cannot be proportionally deemed as representative of the annual trend.

Scratch & Win lotteries wagers also recorded a positive result, equal to approximately 273 million Euro, with more than 169 million tickets sold (approximately 43 million in the same period of 2004, before the Lottomatica management).

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Services net revenues amounted to 15 million Euro, growing by 14.7% compared to the 1st quarter of 2004. The further development of this business is mostly due to the increased sales of top-ups for mobile telephones, including the increase in the average amount to be recharged (approximately 48 million top ups compared to 41 million as of March 31, 2004).

As to margins, it should be noted that EBITDA totalled 119.1 million Euro in the 1st quarter of 2005, equal to 63.9% of revenues (compared to 77.5 million Euro in the 1st quarter of 2004, 50.3% of revenues), growing by 53.8% compared to the 1st quarter of 2004. This result is due to a number of factors, including the increased Lotto wagers, the profitable performance of the Scratch & Win lotteries and Services businesses, and the increasingly effectiveness of management operations.

EBIT amounted to 92.6 million Euro (compared to 48 as of March 31, 2004), up 93.1% compared to the same period of 2004.

Consolidated Financial Statements as of March 31, 2005, show a net income equal to 54 million Euro (23.7 million Euro as of March 31, 2004), after net financial charges for 2.8 million Euro and net extraordinary income for 0.3 million Euro.

The Group’s net financial position totalled 15.3 million Euro as of March 31, 2005, against a net debt of 48.4 million Euro as of December 31, 2004, thanks to the positive performance in operations (mainly due to the increased Lotto wagers). However, it should be noted that, in April 2005, after closing the quarter, the company approved the distribution of a total dividend of 151.3 million Euro.

Lottomatica stock was admitted to the S&P/MIB index, effective from March 21, 2005.

"These first 2005 figures are very positive and above our expectations, thanks to the excellent Lotto wagers relating to the late number "53" in the first two months of the year, and to the very good performance in some businesses such as the Scratch & Win lotteries," said Mr. Rosario Bifulco, Chairman and Managing Director of Lottomatica – "I believe that the recent change in our shareholding structure, with the exit of the company Toro Assicurazioni S.p.A. which hold a 7% stake, represents an obvious advantage in terms of higher Lottomatica stock free float. Furthermore, there is no doubt that the total return equity swap transaction, simultaneously effected by De Agostini S.p.A., represents an important sign of confidence by our key shareholder in the Lottomatica group’s prospects and in the future challenges still to be faced."

By virtue of the delegation attributed to the Board of Directors by the Extraordinary Shareholders’ Meeting held on April 12, 2005, to increase the share capital by a maximum of 10%, on one or more occasions, the Board of Directors approved two new Stock Option plans, reserved to Lottomatica S.p.A. directors and the Group’s managers, respectively. These plans provide for an increase in the share capital up to a maximum amount of 574,408.00 Euro, issuing 574,408 new shares. Unit price per share is set at 26.47 Euro. The deadline for subscribing the shares is set at December 31, 2010.

The Board of Directors also approved new "Internal regulations on external communications" concerning price sensitive information, to replace those in force, regarding both corporate positions, and some regulatory provisions introduced by the 2004 EU law.Finally, the Board of Directors resolved to appoint the following Directors of Lottomatica as members of the Executive Committee for the 2005-2007 period:

  • Rosario Bifulco, Chairman;
  • Antonio Belloni;
  • Paolo Ceretti;
  • Marco Drago;
  • Lorenzo Pellicioli;
  • Marco Sala; and
  • Antonio Tazartes.

SOURCE: Lottomatica S.p.A. media release.


Statewide Sales Begin for World's First Electronic Version of Instant-Scratch Game
Statewide Sales Follow Successful Market Test Of Battery-Powered Lottery Cards

DES MOINES, Iowa, USA (May 16, 2005) - The world's first electronic version of a lottery instant-scratch game begins statewide sales this week in Iowa.

Iowa's Quarter Play
Iowa Lottery's electronic game card Quarter Play

The Iowa Lottery is the first to bring the new product, known as the electronic game card, to market. The first game card is "Quarter Play," which aptly describes it - with 80 plays on a card sold for $20, each play costs 25 cents. The game cards are being distributed for sale to lottery retailers beginning today.

Each electronic game card, about the size of a driver's license, is battery powered and loaded with random plays. Players activate the card by pulling off a plastic tab on the back, then push the "play" button on the front to get started. Each play loaded onto the card is the equivalent of an individual scratch ticket. But in the case of the game card, an electronic play replaces the traditional scratch area on a paper ticket. Three small screens on the front of the game card display the numbers in a particular play and show whether that play has won a prize.

"The electronic game card represents an evolution of the lottery product," said Iowa Lottery CEO Ed Stanek. "By combining battery power with the popular features of the traditional products we've sold for decades, we're offering our players an exciting innovation, particularly in terms of extended playing time."

Players accumulate points, each worth 25 cents, by matching like numbers as they advance through Quarter Play's 80 plays.

At the conclusion of all the plays, the game card displays the total points accumulated. Each card offers a guaranteed prize, and the top prize in the game is $500. Players redeem the cards as they do any other lottery product - by having them validated at an Iowa Lottery retailer or one of the lottery's regional offices.

An appealing feature of the cards is that players do not have to play through an entire card at once. The battery-powered cards automatically shut off when they haven't been played for 20 seconds, then pick up where they left off when the "play" button is pushed again later. While plans to sell the game cards were approved at a meeting of the Iowa Lottery Board in October 2003, initial discussions of the concept started more than a year before that and led to testing and development.

In late 2002, Stanek, the longest-serving lottery director in the United States and someone who is known for bringing new products to the industry, was approached about the game card and asked if he thought it could be successful in the marketplace. Stanek said he thought it was a novel concept - and one that could appeal to consumers in their 20s and 30s, who grew up with computers and electronic games and are a main force in the electronic age.

Scientific Games International, based in Alpharetta, Ga., produced 20,000 game cards for an Iowa market test that began in October. The lottery sold the cards at about 130 retail locations in the Cedar Rapids, Waterloo/Cedar Falls and Dubuque areas. Results of the market test met the lottery's highest expectations, with all cards sold by early January.

The lottery has ordered 180,000 game cards for Quarter Play's statewide release and has scheduled two more game card games for release in late 2005 and early 2006.

Since the Iowa Lottery's inception in 1985, more than $1.8 billion in prizes and nearly $910 million in lottery proceeds has been raised for state programs.

SOURCE: Iowa Lottery media release.


Missouri Lottery Awards Scientific Games Instant Ticket Contract Extension
Extension is for Two Years and Valued at $11 Million

NEW YORK, USA (May 18, 2005) -- Scientific Games Corporation (Nasdaq: SGMS) announced that it was awarded a two-year extension of its instant ticket and related services contract with the Missouri Lottery. There are four additional mutually agreeable one-year extension options available. The contract is valued at $11 million over its term and commences July 1, 2005.

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Lorne Weil, chairman and CEO of Scientific Games Corporation said, "We have been the primary instant ticket supplier for the Missouri Lottery since 1993 and we are very happy they have decided to exercise the two-year extension option. At Scientific Games, we regard customer retention as the true test of our continuing success. It is only by meeting our customers' requirements for innovation, security and quality that we can continue to be the world's leading instant lottery ticket company."

About Scientific Games
Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries. For more information about Scientific Games, please visit our web site at http://www.scientificgames.com.

SOURCE: Scientific Games Corporation. Company Contact: Lisa D. Lettieri, 212-754-2233.


Loterie Nationale Luxembourg to Revamp Popular Piccobello Show

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SOUTHAMPTON, New Jersey (March 17, 2005) -- Loterie Nationale, Luxembourg has recently contracted with Smartplay to replace their PiccoBello prize wheel with a custom gaming table. In this new game, suspense will captivate the audience as game balls teeter on the brink of settling on a given number, and then may well roll the other way. Will the ball land on the number the player has chosen? Maybe or maybe not, and that’s the new fun of PiccoBello as the player makes a series of decisions prior to the launch of each game ball. A September launch is planned.
SOURCE: Smartplay International media release.
CONTACT: Linda Turner, VP Sales, Phone: +1 609 859 1133, Email: linda@smartplay.com

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