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LOTTERY
INSIDER
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| Vol. 32 No. 2 -- Monday July 11, 2005 |
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LOUISVILLE, Kentucky, USA (July 1, 2005) -- As the Kentucky Lottery Corporation (KLC) begins its new fiscal year on July 1st, a new chapter in the corporation’s history will also be realized. For the first time, 100% of the KLC’s proceeds will go directly to college grant and scholarship programs along with adult and child literacy programs. KLC dividends started being transferred away from the General Fund on a gradual basis in Fiscal Year 1999. Through Fiscal Year 2004, more than $480 million has gone to fund need-based grants and merit-based scholarships. This has provided more than 475,000 financial awards to Kentucky high school students. The awards are distributed by the Kentucky Higher Education Assistance Authority (KHEAA).
Prior to 1999, the number of students attending college in Kentucky had remained flat for several years. However, since the start of the KLC-funded scholarship and grant programs, college attendance in the Commonwealth has jumped 20%. "A solid education is the basis for ensuring our children have a bright and prosperous future," said Governor Ernie Fletcher. "Using these funds to provide our children with access to a college education – and continuing to bring economic development opportunities to our state – will ensure that the leaders of the future are not only educated in Kentucky, but stay in Kentucky." "The Kentucky Lottery is instrumental in providing much-needed funds for Kentucky's need-based and merit-based student financial aid programs," said KHEAA Executive Director Dr. Joe L. McCormick. "Kentucky Educational Excellence Scholarships (KEES), College Access Program (CAP) Grants, and Kentucky Tuition Grants (KTG) help thousands of Kentucky students pay for their higher education expenses each year. These programs have set the Commonwealth on the right track to increasing the college-going rate and improving the quality of life of our citizens." 55% of Lottery revenue will fund the need-based KTG and CAP grants, while the remaining 45% will go toward the KEES merit-based scholarship program. McCormick says this type of balance between need-based and merit-based scholarships is unlike any other program offered in the country. According to University of Kentucky President Lee Todd, "More awards and scholarships paid for by the Kentucky Lottery have been used at UK than at any other school in the Commonwealth. Those funds are a critically important tool in keeping Kentucky's best and brightest in our state. We applaud the Lottery's continued efforts to make college more affordable and accessible for Kentucky's families and children." All unclaimed Kentucky Lottery prize money goes into the KEES Reserve Fund to help maintain the financial stability of the organization. Around $8 million a year is projected to go into this fund.
Kentucky’s "Read To Achieve" program and the Collaborative Center for Literacy Development receive a total of $3 million a year, with a total of $18 million going to these programs since inception. This contribution will continue, with the $3 million coming off the top of Lottery proceeds and the remainder going for the scholarship and grant programs. "One of the most consistent questions asked around this state for years has been, ‘Just where is all that Kentucky Lottery money going?’", said KLC President and CEO Arch Gleason. "We’re prohibited by law from advertising where our proceeds are spent. However, now that we’re at the point where 100% of our proceeds are going to fund college grants and scholarships, I believe people will better understand where the money goes based on how many lives we will touch." The Kentucky Lottery has earned over $2.2 billion for the Commonwealth since 1989. KLC dividends pay for college grants and scholarships, literacy programs, and go to the General Fund. Visit www.kheaa.com to find out more about grants and scholarships paid for by the KLC. SOURCE: Kentucky Lottery Media release.
INTRALOT’s CEO Constantinos Antonopoulos Awarded "Manager of the Year 2004"
ATHENS, Greece (June 30, 2005) -- INTRALOT’s CEO Mr.Constantinos Antonopoulos, received the "Manager of the Year" award, at a ceremony held on June 29th at the Covent Garden, London, during the Euromoney Conference: "INVEST IN GREECE 2005." The award was presented to Mr. C. Antonopoulos by the Chairman of the Athens Stock Exchange, Mr. S. Kapralos. Commenting on the award, Mr C. Antonopoulos said:
The "MANAGER OF THE YEAR 2004" is an initiative introduced by "MONEY" magazine, which aims to promote the managers who contributed to the growth and success of their companies, listed on the Athens Stock Exchange. INTRALOT, a public company listed on the ASE, is a leading
supplier of integrated gaming and transaction processing systems, innovative
game content and value added services to state-licensed gaming organizations
worldwide. SOURCE: INTRALOT (www.intralot.com) media release. California
Lottery Confirms Scientific Games Instant Lottery Ticket & Services
NEW YORK, USA (July 7, 2005) -- Scientific Games Corporation (NASDAQ: SGMS) announced that the California State Lottery has confirmed that its previously announced instant lottery tickets and related services contract is valued at $33 million over the initial four-year term. This means that approximately 75 percent of the instant ticket manufacturing and related services will be provided by Scientific Games as the primary supplier. On Wednesday, June 29, 2005, the California State Lottery held a meeting to confirm the details of the instant ticket and related services award. In the meeting the Lottery confirmed the budget for fiscal year 2006 projects lottery sales of $3.65 billion of which $1.8 billion will be from the instant product. Lorne Weil, chairman and CEO of Scientific Games, said, "We consider this a very important win for Scientific Games and we intend to do everything possible to exceed the California Lottery’s expectations. With our lineup of hugely successful games, including high price point tickets, electronic game cards and licensed brand products, we expect to be anticipate being very successful in helping California generate more funds for education." Chon Gutierrez, the California Lottery’s Acting Director, added, "The Lottery has enjoyed nearly 20 years of providing entertaining products to California players and now looks forward to partnering with Scientific Games in continuing to produce quality instant tickets."
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 www.scientificgames.com. Actual future results may be materially different from what we expect. We will not update forward-looking statements even though our situation may change in the future. SOURCE: Scientific Games Corporation. Company Contact: Lisa D. Lettieri, Phone: 212-754-2233. ALPHARETTA, Georgia, USA (June 30, 2005) – To support the June 24th launch of its new Ultimate Harley-Davidson instant game, the South Carolina Education Lottery enlisted MDI Entertainment to create an integrated marketing program that would catch and keep players’ attention during the summer, a traditionally slow sales period. MDI worked with the Lottery to create the Harley Ultimate Summer program. The program began on June 25th with a kick-off event at the "Harley Haven" dealership in Columbia. The Lottery sponsored a barbecue rib-eating contest, supplied by local merchant Myer’s BBQ, with representatives of five of South Carolina’s HOG chapters competing for the coveted "Hog Award". The contestants, who competed for charity, faced stiff competition from Eric Booker, ranked #4 by the International Federation of Competitive Eating (IFOCE). The IFOCE is the official sanctioning and ranking body for professional speed eating. MDI provided $500 to the winner’s charity of choice. To support and sustain the program over the summer, MDI and the SCEL developed the Ultimate Summer Hog Callin’ radio promotion on radio stations throughout the state. In a spin on the traditional "suey" call used in hog calling competitions, contestants will compete to be the best at calling "Harley". The DJs will determine the winners, who will get Lottery prize packages consisting of Ultimate Harley-Davidson instant tickets and other lottery merchandise. Winners from each radio station will go on to compete for cash and lottery prizes at the SCEL’s Ultimate Hog Callin’ Championships at the South Carolina State Fair in October. The final element in the Harley Ultimate Summer program is the Grand Prize drawing event at the South Carolina State Fair. The Grand Prize in the Ultimate Harley-Davidson instant game is a Harley-Davidson® Fat Boy motorcycle and a Ford Harley-Davidson™ F-250 Super Duty truck. This marks the first time a lottery will offer the truck and motorcycle combo. A celebrity emcee will host both the Hog Callin’ Contest and the drawing for the Ultimate Harley-Davidson truck and motorcycle package. "We were delighted when the SCEL approached us about developing the marketing program for their Ultimate Summer instant game," said Steve Saferin, MDI President. "It gave us the opportunity to showcase our experience in serving the lottery industry’s integrated marketing needs, and we were able to work with the Lottery as a proactive and committed partner."
As part of its marketing program, the Lottery and MDI created radio spots, P-O-P and an informational website that use the same elements throughout for a seamlessly integrated message. In order to generate excitement among the media, a lot of thought was put into the design of the press kit. The kit includes sample tickets, croakies (eyeware retainers), a flashlight key chain, coupons to Myer’s BBQ, and a Harley compass, all in a cardboard tube that when opened plays the distinctive "vroom" of a Harley-Davidson motorcycle. Patricia Koop, Director of Sales and Marketing for the SCEL, is thrilled with the results of the SCEL’s collaboration with MDI. "The program MDI developed has the potential to expand player participation. We’re confident it will encourage players to keep playing throughout the summer, and will highlight both the Ultimate Harley-Davidson game and the lottery in general." About Scientific Games Scientific Games Corporation (www.scientificgames.com) 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. SOURCE: MDI Entertainment media release. New Chairman of Missouri Lottery Commission Named
JEFFERSON CITY, Missouri, USA (June 29, 2005) -- Barbara H. Pickering, Mexico, was elected chairman of the Missouri Lottery Commission during the commission’s quarterly meeting on June 23. Pickering replaces Kenneth Hensley of Albany, who served as the chairman since June 2004. Pickering has served on the commission since May 2000, after being appointed by Gov. Mel Carnahan and confirmed by the Missouri Senate. She is the fifth person to serve as chairman since the Lottery Commission was established in June 1985.
Pickering and her husband, Connie, and son, David, own and operate Pickering Funeral Home Inc. in Mexico. She served as the executive vice president of the Mexico Area Chamber of Commerce from 1980 to 1994. She currently holds the position of the assistant to the city manager in Mexico. The Missouri Lottery Commission is a five-member commission, appointed by the governor and approved by the Senate, to govern the Lottery. Other commissioners currently serving on the Commission are Charles Larry Ray of Hayti, Sherri Robins of Florissant and Celeste Witzel of St. Louis. The fifth seat is vacant. SOURCE: Missouri Lottery (www.molottery.com) media release.
Veikkaus to Introduce Age Limits to Gaming FINLAND (July 1, 2005) -- Veikkaus will introduce age limits to all its games by September 1, 2005. The general age limit for buying Veikkaus’ games will be 15 years, whereas the age limit for playing via the electronic channels, for example on the Internet, will be 18 years. The reason for introducing two different age limits is that the sales channels are different in nature. By introducing the age limits Veikkaus wants to anticipate the changes that are taking place in gaming. Our objective is to protect consumers, especially children and young people, in a situation where the risks of gaming are increasing, as the game supply and event frequency are growing and electronic gaming channels are used more and more widely. Two different age limits based on different distribution channels The age limit for playing at retail outlets will be 15 years, since the control at the retail outlets is stricter than with the electronic channels. At retail outlets, players always submit their game entries directly to a sales clerk. The age limit for playing through the electronic channels will be 18 years, since it is more difficult for the parents to control their children’s playing there, and the social control is not as strict as with the traditional retail outlets. Further, games with high event frequency are played more through the electronic channels than at retail outlets. Age limits part of Veikkaus’ social responsibility
Our social responsibility is based on the principle of providing games that generate as much joy and as few problems as possible. In accordance with this principle, we have already made the games with high event frequency subject to stake limits and forbidden playing on credit. In addition to the age limits, we will later provide our players with tools to impose individual restrictions on their gaming. Veikkaus complies with a strict ethical code in its marketing communications. For further information, please contact: Vice President, Communications Ilkka Juva, tel. +358 20 750 7218 or Head of Communications Riitta Nissi, tel. +358 20 750 7459 About Oy Veikkaus Ab Veikkaus is the Finnish National Lottery and it operates on the basis of the expertise of the staff and the retailers, as well as the latest information technology. In 2004 Veikkaus had a turnover of over 1.2 billion euros. Using the proceeds from its 20 games, the Ministry of Education distributed more than a million euros a day to support Finnish art, sports, science and youth work. Veikkaus employs 370 lottery professionals. SOURCE: Oy Veikkaus Ab (www.veikkaus.fi).
Thousands Came Out for a Chance to Turn Non-Winning Instant Tickets Into Winners BRAINTREE, Massachusetts, USA (July 1, 2005) -- On Tuesday, June 28, thousands of people flocked to the Massachusetts Lottery’s Braintree headquarters for a chance to turn their non-winning instant tickets into green – in more ways than one. As part of a continuing effort to reduce instant ticket waste and litter across the Commonwealth, the Lottery -through its anti-litter program "Instant Replay" - offered a free $1 instant ticket to anyone over the age of 18 that turned in 25 non-winning tickets.
Long lines formed early at the tent set up outside the Lottery’s headquarters. Many in attendance came with boxes and crates filled with tickets ready to be exchanged. There was no limit to the number of tickets that could be redeemed. The event netted a total of 16 tons of tickets that will be recycled and turned into other useful paper products. The collected tickets are sent to E.L. Harvey and Sons, a Westboro-based recycling entity, which shreds and bails the paper for re-pulping at no cost. The Massachusetts Lottery is the only lottery in the country that redeems instant tickets for the sole purpose of recycling. "Instant Replay" was launched in August 2004, under the direction of State Treasurer and Lottery Chairman Timothy P. Cahill, to combat instant ticket litter and increase the Lottery’s recycling efforts. Since its inception, the Lottery has collected and recycled over 50 tons of instant tickets from around Massachusetts. In addition to the ticket redemption, the Lottery also became a Patron Green Ribbon Friend of MassRecycle at the event. Lottery Executive Director Joseph C. Sullivan presented a check for the $5,000 sponsorship to MassRecycle President Claire Sullivan (no relation). MassRecycle is a non-profit coalition dedicated to promoting environmental, social and economic benefits of managing waste responsibly. The Lottery will bring "Instant Replay" to more highly visible locations across the state this summer and fall including the Barnstable Fair, the Marshfield Fair, The Big E in Springfield, and the Topsfield Fair. SOURCE: Massachusetts Lottery media release.
Change at the Helm of Lottery Solutions; Andreas Kohlmann Takes Over from Rainer Schilbach PADERBORN, Germany (July 4, 2005) -- Andreas Kohlmann (41) has assumed the leadership of the Lottery Solutions division at Wincor Nixdorf as of July 1, 2005. Rainer Schilbach (63), who has led this division to great success since 1997, will continue to be available to the company in a consulting capacity.
Schilbach presided over the business development, expansion and internationalization of the Lottery Solutions division. Following initial project successes in Germany, other European countries, the U.S. and Asia, recent years have seen a total of eight of the German Lotto companies sign contracts for the delivery of lottery terminal systems from Wincor Nixdorf. With Andreas Kohlmann, Lottery Solutions in Constance acquires a manager with broad experience in the lottery business. Kohlmann has been head of Sales and Business Development since 2004. Before that, he was responsible for eight years for the software development group, whose expansion, first-class performance and expertise has contributed significantly to the success of Lottery Solutions. SOURCE: Wincor Nixdorf International GmbH Lottery Solutions media release. Erewhon –
The Most Engaging Case Study Program in the Lottery Sector! Based on a learning format developed at Harvard University, Erewhon is a case study program especially created for the lottery sector. Held numerous times in North America and Europe, as well as Australia, South Africa and Brazil, the updated Erewhon program is a must for lottery managers and staff!
Through the ever-popular Erewhon program, course participants gain confidence in their ability to deal with challenges that are unique to our sector. For newcomers and experienced staff alike, Erewhon will be a highlight of the 2005 WLA Academy program. Under the guidance of a highly experienced, hands-on lottery expert, a hypothetical lottery is created down to the last detail. Every possible area affecting a lottery is defined and examined – including the demographics and political situation of the equally hypothetical country, product lines, sales performance, internal organization from management to retailers, marketing plans and performance, ticket processing, accounting procedures, and profit distribution. Participants assume the role of management within the lottery and have to deal with a number of scenarios affecting the lottery and gaming sector. In the course of the program, problem-solving strategies are proposed, discussed, and modified. Participants find that Erewhon provides them with a structured process for finding new ideas and solutions that are immediately applicable to real-life issues. Who should attend When Where How to get there Seminar leader Program
All this, plus the educational and entertaining aspects of the original Erewhon programs!
Language Seminar fee Registration deadline NOTE:
Lotto Can Now Also be Played by SMS VEIKKAUS, Finland (July 4, 2005) -- Since the end of June, Finns have had the opportunity to play Lotto, Keno and Result Odds Betting easily by sending an SMS. Thus, for example people spending their holidays at their summer cottages or abroad, now have the chance to compete for the jackpot.
Our purpose is to offer games and services in places that are the most easily accessible and natural for our customers. At the moment, electronic gaming takes place mainly over the internet. Playing by SMS opens up a new carefree channel of self-service gaming, says Development Manager Riku Nordlund from Veikkaus' Technology Development. In order to play by SMS, you have to register as our customer and open a game account in Veikkaus' internet game service www.veikkaus.fi. The games are debited instantly from your game account, since gaming on credit is forbidden in Finland. As for the SMS messages, they are charged for in your phone bill as usual. An SMS message costs EUR 0.40. Playing Lotto by SMS
One of Finland's favourite web stores Currently, as much as 13 percent of Veikkaus' total playslip-based game sales come from the electronic game channels. Each week, people buy our games for some EUR 2.5 million through the internet, wap, or digital TV. Veikkaus' internet game service is one of Finland's biggest web stores open to consumers; in 2004, our internet game sales amounted to a total of EUR 110.8 million. We have over 320,000 registered players in our in the service. For further information, please contact: Development Manager Riku Nordlund, tel. +358 20 750 7304, Email: riku.nordlund@veikkaus.fi. SOURCE: Veikkaus' eNews distributed by Veikkaus Communications.
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