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| Vol. 32 No. 7-- Monday August 15, 2005 |
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WEST GREENWICH, Rhode Island, USA (August 4, 2005) - GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Global Services Corporation, and Societe de la Loterie de la Suisse Romande (LoRo) have successfully negotiated a new software/hardware maintenance and support services agreement, and a new software license agreement, resulting in additional recurring revenues to GTECH of approximately $20 million over a minimum term of six years.
In addition, GTECH also signed its previously-awarded product sale agreement with LoRo for a new integrated online and instant-ticket lottery system, Altura® terminals, and communications network, which GTECH now values at approximately $14 million. “In the past, GTECH’s system maintenance and software license agreements with LoRo were renewed each year, at LoRo’s discretion,” said GTECH President and CEO W. Bruce Turner. “The fact that LoRo opted for six-year minimum contract terms, rather than continue on a year-to year basis, illustrates their confidence in GTECH’s capabilities and is a testament to the success of the partnership.” GTECH has provided equipment and services to LoRo since 1994. In addition to Switzerland, GTECH provides lottery products and services in several countries throughout Europe including Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Lithuania, Luxembourg, Poland, Portugal, the Slovak Republic, Spain, Sweden, Ukraine, and the United Kingdom. GTECH is a leading gaming technology and services company. With more than $1.25 billion in annual revenues and 5,300 people in over 50 countries, GTECH provides integrated technology, creative content, and business services to effectively manage and grow today’s evolving gaming markets. In targeted emerging economies, GTECH also leverages its operational presence and infrastructure to supply commercial transaction processing services. For more information about the Company, please visit GTECH’s website at http://www.gtech.com. SOURCE: GTECH Corporation media release.
Veikkaus Announces Positive Financial Result for 1H 2005
During the first half of the year, Lotto games generated a turnover of € 249.7 million (+10.2%), whereas the turnover of the games of skill was € 181.3 million (+11.8%), that of Instant games € 63.4 million (-8.4%), and that of the other draw games € 153.6 million (+8.4%). Veikkaus' prize payout to players totalled € 335.4 million (+12.8%), representing slightly more than a half (51.8%) of the turnover. The retailer commissions amounted to € 40.0 million, which was 3.7% less than during the respective period last year.
New Instant games, services and distribution channels During the period under review Veikkaus launched a new Instant game Labyrinth Instant, as well as two Internet Instants: Horoscope and Nature Internet Instants. In June we introduced a new way of playing games of chance, Vinopino (Game Cluster). Veikkaus will continue investing in new distribution channels both in our retail network and the electronic channels. At the end of June, we started an SMS gaming service for Lotto, Keno and Result Odds Betting. In the autumn, we will test selling Veikkaus games at the check-out counters in large markets for the first time in Finland. The pilot project will be carried out in cooperation with one of the leading store chains in Finland, Ruokakesko. Aiming at moderate growth Veikkaus funds objective fixed in the State Budget for the year 2005 is € 381.4 million, which is 1.5% more than in 2004. The results of the first half of the year give reason to believe that the objective can be achieved. We will invest especially in an enhanced recognition of our customers and their special needs, as well as in providing the appropriate supply. We will continue to develop our games in a socially responsible manner, aiming at wide participation and small stakes. SOURCE: Veikkaus eNews.
Scientific Games Retains New Chief Technology Officer NEW YORK, USA (August 9, 2005) -- Scientific Games Corporation (Nasdaq: SGMS) announced that it has retained a new chief technology officer. Steven Beason will join Scientific Games as of August 8, 2005 and report to Michael Chambrello, president and COO. Beason will be responsible for developing Scientific Games’ overall technology strategy including software design, development, communications, and research and development. Prior to joining Scientific Games, Beason spent seven years at the Hong Kong Jockey Club as their Executive Director, Information Technology, an organization with $10 billion in annual revenues. Before the HKJC, he was at GTECH Corporation for twelve years in several senior technology-related capacities, including vice president of software engineering and director of product development. “The new CTO position is going to be one of critical importance going forward,” said Mike Chambrello. “Steve will be responsible for the technical direction we take in our systems business activities and coordinating with our individual business units to ensure effective execution of our technology strategy. He will have full authority over resource allocation and will lead the effort to determine the next generation of equipment and services we offer our customers. He brings a tremendous amount of gaming, racing and international experience to Scientific Games. We fully expect that Steve will help us continue to stay ahead of the technology curve in every aspect of our business.”
Scientific Games has often been the first to deploy the newest technology to better serve its market. Just a small sampling of lottery industry firsts include the adoption of Open System standard, PC-based touch screen terminals and high speed IP (Internet Protocol) telecommunications networks. Most recently, Scientific Games launched advanced vending solutions that communicate directly to a lottery’s central systems. In connection with his employment, Mr. Beason will receive a stock option to purchase 275,000 shares of Scientific Games Class A common stock on August 8, 2005 at an exercise price equal to the average of the high and low trading prices of the stock on the preceding trading day, vesting in one-third increments on the first, second and third anniversaries of his employment. The stock option was approved as an employment inducement grant pursuant to Nasdaq Marketplace Rule 4350 without stockholder approval. 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.
Arizona Lottery Sales Set New Records PHOENIX, Arizona, USA (August 5, 2005) -- Arizona Lottery sales for fiscal year 2005 hit an all-time high of $397.5 million, $31 million more than last year’s record-breaking $366.5 million. As a result, the state will receive $116.4 million in net profits, the highest in the Lottery’s history. Arizona Lottery Executive Director Katie Pushor noted that the 8.5 percent increase in total sales out-performed all but one of the five western Lottery states. Only California, with an increase of 12.6 percent, exceeded Arizona’s growth rate.
Pushor said the Lottery’s success was due to superior results in two product lines: The Pick and Scratchers. “Our strategic plan identified The Pick and Scratchers as products with the most growth potential in ‘05. We then focused on product improvement, placement and promotion and hit a home run.” To improve The Pick sales, the Lottery added a new feature called EXTRA, which for an additional $1 per play gave players an instant-win opportunity. The game was supported by an advertising campaign and heavily promoted at events such as the State Fair. “And then we got lucky,” Pushor added, “in that we also had two unusually high jackpots for The Pick, one at $11.3 million and one at $8.5 million.” Sales of The Pick product were up 61 percent over last year, helping offset a decrease of almost 20 percent in the multi-state game, Powerball. The same strategies proved equally successful with Scratchers. The number of bins in on-counter displays and instant ticket vending machines (ITVMs) was increased by 6,000. Additionally, market shares of $5 games increased from 10 to 17.5 percent and $10 games from 9.4 to 12.3 percent. The introduction of innovative $3 and $5 licensed property games, such as The Price Is Right and Pac-Man Cash, tapped into a new audience, while “second-chance drawings” and one-of-kind prizes provided additional incentives for players. The Scratchers strategy also included a consistent advertising message in the media and at the point of sale. “Results in this product category speak for themselves with record-high Scratchers sales of almost $219.6 million, over $36 million more than last year’s $183.2 million,” said Pushor.
“While this is a remarkable achievement, the real news is what these sales mean for the state,” noted Pushor. “The $116.4 million in profit will provide funds for projects and programs throughout Arizona, many of which might not otherwise be possible.” About the Arizona Lottery The Arizona Lottery operates entirely from the revenue it generates through the sale of its products; it receives no General Fund dollars from the State. Since July 1981, the Arizona Lottery has returned more than $1.8 billion in net profit to the state. Proceeds from sales of Lottery tickets fund a wide variety of public projects and programs including arts, wildlife, parks, public transportation, roads and historic restoration in cities and towns throughout all 15 counties in Arizona. SOURCE: Arizona Lottery media release. Kansas Lottery FY 2005 Sales Second-Highest in Lottery History TOPEKA, Kansas, USA (August 4, 2005) -- Kansas Lottery ticket sales totaled nearly $207 million in the fiscal year that ended June 30, 2005. It was the second-highest year ever, behind the previous fiscal year's record sales of $224.4 million. While sales of the Multi-State Powerball game and Super Kansas Cash were stifled somewhat by jackpots that were lower than the previous year's, the Lottery had good growth in other games, especially instant tickets. A breakdown of FY 2005 sales (unaudited) by product, compared to FY 2004 sales, is as follows:
*eScratch sales began in May 2004, the last quarter of FY 04
Kansas Lottery players won a total of $112,408,441 in game prizes in FY 2005; and Lottery retailers were paid a total of $12,099,419 in commissions. "We wholeheartedly thank our players and retailers for a very good year in Lottery sales," said Lottery Executive Director Ed Van Petten. "Because of their support, the Kansas Lottery was again able to generate substantial revenue for the state of Kansas ." The Kansas Lottery transferred a total of $65,409,441 (unaudited figure) to the State of Kansas during FY 2005. The transfer included $701,164 in profits from the special veterans games, which are dedicated to veterans' programs and National Guard scholarships. Van Petten says he is hopeful that Lottery sales will rebound to record levels in the current 2006 fiscal year. He anticipates continued growth in instant ticket sales and improved sales in Powerball and Super Kansas Cash this year. "We are always looking at different games, both online and instant, as well as modifications of existing games to generate additional sales and increased revenue for the State of Kansas," said Van Petten. This fall, the Kansas Lottery will introduce the first in a series of "Made in Kansas " instant scratch tickets. The result of a strategic alliance formed by the Kansas Department of Commerce and the Kansas Lottery, the instant tickets will offer players a chance to win Kansas-made products as grand prizes in second-chance drawings. Since its inception in 1987, the Kansas Lottery has generated total sales of more than $2.7 billion and transferred more than $844 million to the state of Kansas. SOURCE: Kansas Lottery media release.
GLI Recruits Charitable Gaming Expert - LAS VEGAS, Nevada, USA (August 4, 2005) – As Gaming Laboratories International (GLI) continues to expand around the globe, the company has recruited a new development representative known across the U.S. as an expert in charitable gaming. Michael Capen joins GLI’s development team and will be based in GLI’s Las Vegas Service Center. Capen’s primary responsibility will be the Central section of the U.S., focusing on GLI’s Tribal gaming, state gaming, lottery and charitable gaming clients.
Capen’s history in charitable gaming dates back to 1999, when he began working for the Virginia Department of Charitable Gaming. At the Department, he rose through the ranks quickly from Inspector to Licensing Inspection and Training Administrator. Among his notable accomplishments was a 100 percent increase in training sessions provided to charitable organizations in one year alone. Prior to the Department, Capen was a Naval Officer for 21 years with his last duty assignment being a Commanding Officer. GLI president and co-founder James R. Maida said, “We are very excited to have Michael join our development team. With his noted expertise and extensive knowledge, we believe he will be an incredibly valuable asset to GLI and to his clients.” Gaming Laboratories International, Inc. is the world’s most technologically advanced gaming device ands systems testing company. GLI currently operates wholly owned and fully staffed gaming test laboratories in Lakewood, N.J.; Golden, Colo.; Las Vegas, Nev.; GLI Europe, B.V. in Hillegom, The Netherlands; GLI Africa in Midrand, South Africa; and GLI Italia, in Bologna, Italy. Gaming Laboratories Australia operates fully accredited test laboratories in Sydney and Adelaide under license to Gaming Laboratories International, Inc. GLI employees number approximately 300 worldwide, providing more than 100,000 certifications annually to over 400 gaming regulatory bodies worldwide. GLI was founded in 1989 by James R. Maida and Paul J. Magno and was the first independent laboratory of its kind. Contact: Christie Eickelman, Director of Worldwide Marketing, +1 (702) 914-2220 or c.eickelman@gaminglabs.com. Gaming Laboratories International, GLI Europe B.V., GLI Africa, GLI, and Gaming Laboratories Australia and associated globe logos are trademarks of Gaming Laboratories International, Inc. SOURCE: Gaming Laboratories International
media release distributed by Steinbeck Communications. CDPEC is a Great Opportunity for Atlantic Lottery
Corporation CHARLOTTETOWN, Prince Edward Island, Canada (August 8, 2005) -- Just in time for Old Home Week, the highly anticipated Charlottetown Driving Park Entertainment Centre (CDPEC) will have its grand public opening at 11:00 a.m. on Thursday, August 11, 2005. The joint announcement was made today by the Government of Prince Edward Island (PEI), Harness Racing P.E.I. Inc., and the Atlantic Lottery Corporation (ALC).
This $25-million, 50,000-sq. ft. state-of-the-art facility will be among the most sophisticated in Canada. It will offer a wide array of entertainment and gaming, a newly restored three-tier dining facility, a new grandstand, a gaming area with electronic gaming machines, a showcase of P.E.I.’s harness racing history, and a teletheatre featuring parimutuel betting and enhanced simulcast racing. More than revitalizing the Island’s harness racing industry, the CDPEC is expected to generate new employment and revenue for both the city and the province, while providing a significant boost to the province’s agricultural and tourism industries. “A rejuvenated harness racing industry is good news for the provincial economy of P.E.I.,” said Mitch Murphy, Provincial Treasurer and Minister Responsible for Harness Racing. “All segments of the harness racing industry should experience solid growth, based on similar initiatives in other Canadian provinces.” Jeremy Pierce, General Manager, Harness Racing P.E.I. Inc., said the investment has already resulted in significant benefits for both the industry and fans. “We’re already seeing improved racing speeds, which have helped raise the excitement and quality levels of the races here at the CDPEC. In the first 11 races completed, there were 39 races under two minutes, 24 races under 1:59 and achieved a new Maritime record for a regionally-bred horse at 1:54 flat. This will definitely lead to larger purses and more employment both at the CDPEC and in our industry.” In addition to harness racing, the CDPEC will offer a wide range of entertainment and gaming options that will appeal to Islanders and be a significant draw for tourists, said Michelle Carinci, President and CEO, ALC. She added: “We’re proud to be a part of the unique partnership that made this centre possible under a particularly tight turnaround. I’m also proud of the ALC team, which has created one of the best entertainment experiences in Canada while maintaining high standards in responsible gaming.”
Supported by the Province, ALC’s responsible gaming plan focuses on a prevention-based approach built on ongoing education, awareness and responsible gaming products. Every player will have access to tools, programs and information to help them make informed choices about how they play. “The CDPEC is a great opportunity for ALC in that we can further expand and develop new approaches for responsible gaming that build on our commitment to ensuring that everyone who plays our games does so in a spirit of fun and entertainment.” Atlantic Lottery has been contributing to Atlantic Canada’s economy and way of life since it was founded in 1976. It develops and markets responsible gaming entertainment products for the financial benefit of Atlantic Canadians. Harness Racing Prince Edward Island Inc. is a new corporation for the purpose of managing and conducting parimutuel harness racing at the Charlottetown Driving Park Entertainment Centre. SOURCE: Atlantic Lottery media release. WEST GREENWICH, Rhode Island, USA (August 8, 2005) -- GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Global Services Corporation, has signed a five-year contract to provide ongoing software support and enhancements to Westdeutsche Lotterie GmbH & Co. OHG (WestLotto), the operator of online and instant-ticket lottery games in the German state of Nordrhein-Westfalen. “Working together with WestLotto over the past year to convert their existing lottery system to GTECH’s Enterprise Series solution has allowed us to forge a closer business relationship with this customer,” said GTECH President and CEO W. Bruce Turner. “We are delighted that Germany’s largest lottery has also recognized GTECH for its comprehensive software engineering and support capabilities, and we look forward to being of service to them over the next five years.”
In addition to software support and enhancements, GTECH will also act as general contractor for hardware maintenance, as well as terminal software support provided by Wincor-Nixdorf. With respect to this contract with WestLotto, GTECH expects to generate revenues of approximately $16 million over the five-year period. GTECH is a leading gaming technology and services company. With more than $1.25 billion in annual revenues and 5,300 people in over 50 countries, GTECH provides integrated technology, creative content, and business services to effectively manage and grow today’s evolving gaming markets. In targeted emerging economies, GTECH also leverages its operational presence and infrastructure to supply commercial transaction processing services. For more information about the Company, please visit GTECH’s website at http://www.gtech.com. SOURCE: GTECH Holdings Corporation media
release. South Carolina Lottery Has Another Record Breaking Year! COLUMBIA, South Carolina, USA (July 25, 2005) -- The South Carolina Education Lottery (SCEL) exceeded expectations again and had another record breaking year! Gross sales for the fiscal year ending June 30, 2005, amounted to over $956 million, $6 million more than the previous fiscal year. This brings total ticket sales since the Lottery’s start-up, less than three and one half years ago, to slightly under $3 billion. “This is not only a success story for the Lottery, but for the people of the Palmetto State. Obviously, maximizing the net proceeds for education is our top priority,” said Ernie Passailaigue, SCEL Executive Director.
South Carolina’s Board of Economic Advisors (BEA), the state agency that forecasts lottery net proceeds, originally estimated the annual fiscal year ‘05 transfer to be $255 million to the Education Lottery Account. Actual transfers were over $280 million, translating into a per capita amount of $70. SCEL not only met the expectation, but exceeded it by 10%; the fourth consecutive year that the transfer goal has been surpassed. Since the Lottery’s inception in January 2002, the General Assembly has appropriated over $1.14 billion to enhance the educational opportunities in South Carolina. Putting this in human terms, over 400,000 lottery-funded scholarships have been awarded through the spring semester of 2004; more than $330 million has been directed into K-12 programs; and $120 million has been appropriated to the ‘Endowed Chairs’ program at South Carolina’s three research institutions: Clemson University, the University of South Carolina and the Medical University of South Carolina. The ‘Endowed Chairs’ program is a matching program designed to propel South Carolina into the new, world economy. For more information on “Where the Money Goes,” please visit our website at www.sceducationlottery.com. SOURCE: The South Carolina Education
Lottery media release. “Visitors From Beyond” Descend on Lottery Industry; MDI Acquires Lottery License for Space Invaders® ALPHARETTA, Georgia, USA (August 11, 2005) – Space Invaders®, the early 1980’s alien invasion video game that helped launch the entire video game industry, has been acquired for the lottery category by MDI Entertainment, a wholly-owned subsidiary of Scientific Games Corporation (NASDAQ: SGMS). MDI has entered into a two-year agreement with Taito Corporation of Japan to be the exclusive provider of Space Invaders lottery licenses. 
“Space Invaders was a pioneer in what is predicted to be a $20 billion U.S. industry by 2007,” said Steve Saferin, MDI president. “This is the game that young adults grew up playing and we know it will appeal to that ever-growing audience as well as core players.” The popularity of vintage video games is evident in the huge success of PAC-MAN™, which is quickly becoming one of MDI’s most popular games. Space Invaders is the perfect companion/follow up game to PAC-MAN or as an introduction to this type of game theme. Though simplistic by today’s video game standards, Space Invaders remains one of the most influential games ever created. Launched in 1978, Space Invaders was licensed by Atari in 1980 for use with its popular home system. It later became the first game to be moved from arcades to other public establishments like pizza parlors and ice cream shops.
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. 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. MDI Entertainment, a wholly-owned subsidiary of Scientific Games Corporation, is the worldwide leader in licensed lottery games and promotions. SOURCE: MDI Entertainment media
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VEIKKAUS,
Finland (August 8, 2005) -- 
Interplay Multimedia Pty. Ltd. disclaims all liability for information provided within Lottery Insider -- Data supplied by named sources. |