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Vol. 37 No. 1
Monday October 9, 2006


  • GTECH Signs Contract with Supreme Gaming LLC to Bring an Online Lottery to Guatemala. Full Story
  • INTRALOT Changes Its Corporate Identity And Follows Its Growth Course. Full Story
  • Schafer Systems Inc. Announces Personnel Changes. Full Story
  • INTRALOT, Pioneer in The Use of New Technologies. Full Story
  • Michigan Players Love OGT’s Patented Lucky Numbers Game. Full Story
  • Illinois Lottery Shows Chicago Cubs Fans What it Looks Like to be ‘Set For Life’. Full Story
  • Lottery Committee Appointments Named. Full Story
  • SC Lottery Receives Award of Excellence. Full Story
  • On-Line Gaming Contract Extensions To Provide Kentucky Lottery with Substantial Savings. Full Story
  • Rhode Island Lottery Announce 2006 Financial Year Highlights. Full Story

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GTECH Signs Contract with Supreme Gaming LLC to Bring an Online Lottery to Guatemala

WEST GREENWICH, Rhode Island, USA (October 3, 2006) -- GTECH Corporation, a wholly-owned subsidiary of Lottomatica S.p.A., announced that it has entered into an agreement with Supreme Gaming LLC (SGL) to become the provider of an online lottery system, products, and ongoing services in Guatemala for a period of 15 years from the date that sales commence in Guatemala, which is expected in February 2007.

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GTECH

SGL has contracted with Fundacion Pediatrica Guatemalteca (FPG), a non-profit institution that operates the Children's Lottery in Guatemala and which has granted SGL exclusive rights to operate an online lottery in Guatemala on behalf of the Children's Lottery for a 15-year term.

"We are excited about working with SGL to bring an online lottery to Guatemala," said W. Bruce Turner, GTECH President & CEO and Lottomatica S.p.A. CEO. "This agreement is a perfect example of GTECH's industry-leading technology and capability being brought to bear in new and emerging markets. It also illustrates the continued expansion in our core lottery business, a key element in our strategic growth plans."

Under the terms of the integrated services contract with SGL, GTECH will provide the Company's Enterprise Series™ (ES) solution, featuring Internet Protocol (IP) and standards-based open architecture. GTECH will also provide up to 500 lottery terminals and 350 handheld terminals.

GTECH will operate the system from its primary data center in Austin, Texas, and will provide ongoing hardware and software maintenance and support; assist SGL in retailer selection and training; manage the communications network; and provide field services and marketing services.

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GTECH expects to receive approximately $119 million in revenue over the life of the contract. Proceeds from the lottery will benefit FPG, which provides comprehensive services for the health and welfare of Guatemalan children.

About GTECH
GTECH is a leading gaming technology and services company, providing innovative technology, creative content, and superior service delivery. Lottomatica Italy is one of the world's largest commercial lottery operators and a market leader in the Italian gaming industry. GTECH and Lottomatica Italy together create a fully integrated lottery operator and gaming technology solutions provider -- a combined company with worldwide scale, considerable financial strength, and industry-leading customer solutions. GTECH and Lottomatica Italy operate under "Lottomatica," which is majority owned by the De Agostini Group, a century-old publishing, media, and financial services company. Lottomatica is publicly traded on the Italian Stock Exchange (LTO) and in FY 2005 had more than 1.6 billion euros in revenues and 6,300 employees in over 50 countries.

SOURCE: GTECH Corporation.
CONTACT: Robert K. Vincent, Public Affairs, GTECH Corporation, Phone: 401-392-7452.


INTRALOT Changes Its Corporate Identity And Follows Its Growth Course

ATHENS, Greece (October 5, 2006) -- On Thursday October 5th 2006 in Athens, Greece, INTRALOT presented its new corporate identity. The event was attended mainly by representatives of the press and financial institutions.

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After 14 years of worldwide leadership in the Lottery industry, INTRALOT changes its corporate logo to more accurately reflect the Company’s evolution and its ongoing strategic goals.

The new INTRALOT logo symbolizes the company’s “21st century personality” as well as its broad international success. It is a straightforward depiction that expresses not only the company it represents but also INTRALOT’s core corporate values. 

The logo’s colors embody dynamism and responsibility. The grey color corresponds to the company’s global character and its serious nature while the warm “orange” expresses the passionate human resources who put all their efforts toward the realization of the Company’s high objectives. Orange is also an “optimistic” color and fits INTRALOT’s vision and perspective.

The logo’s modern italic font, exclusively designed for INTRALOT, is compact, plain but not stagnant. The word “INTRALOT” is written in English as the company is an internationally leading player. Its origin and identity are revealed but with the absence of stress over the “I” letter, which reminds us of the Greek letter “yiota - ι”. The underline beneath the company’s name emphasizes the humanistic essence of INTRALOT, and appears as if it has been undersigned by a human hand. The curve that is formed at the end of the line represents INTRALOT’S growth and upward movement in the worldwide marketplace.

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During his presentation, INTRALOT’s CEO, Mr. Constantinos Antonopoulos referred to the company’s new business goals and saying that “INTRALOT will continue its growth course shaping the world of EnterGaming, developing new games of interactive entertainment, platforms for New Media (i.e. Internet, iTV, mobile phones etc) and inaugurating “physical” Retail Networks in the near future.” Mr. Antonopoulos connected the significance of the new, modern logo to the accomplishment of the above-mentioned goals.  He went on to say, “We had in mind to create an effective logo which would link the company with its past and reflect its vision of the future and I believe we accomplished it! Our new logo, with its simplicity and vigour, depicts our company’s dynamics and strengths. Without any superficial ornaments, our logo reflects our company’s personality, its reliability, solidity and integrity. The new logo, with its sense of motion and speed, mirrors INTRALOT’s course of growth and expansion. The previous logo, with the globe, fulfilled its mission and helped us to achieve our goals: Now, as a worldwide leader in the Lottery industry, we strongly believe that our new logo will continue to strengthen our brand as we achieve more and more demanding goals in the near future.

About INTRALOT (www.intralot.com)

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. Its broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations, its experience in sports games and its leading-edge technology give INTRALOT a competitive advantage, which contributes directly to customers’ efficiency, profitability and growth. INTRALOT’s footprint straddles five continents with 37 subsidiaries, 8 business offices, 3,000 people and revenues of € 523 million for 2005 and €700(Ε) for 2006.

For more information please CONTACT: Ms Evi Ioannidou, Communications Director, Phone: +30-210-6156000 – Fax: +30-210 6106800, email: ioannidou@intralot.com.


Schafer Systems Inc. Announces Personnel Changes

ADAIR, Iowa, USA (October 3, 2006) – Schafer Systems Inc. announces that John Krogman will be leaving his current position as Sales Director at Schafer Systems effective November 1, 2006.  John will be joining The Plastic Professionals (a sister company to Schafer Systems) as a Sales Director for that entity.  John has been with Schafer Systems for the past 3 years as Sales Director and has been a key contact and resource for Schafer customers during that time.

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Schafer Systems Inc. would like to invite all its customers and friends to drop by booth (#6) at the up-coming NASPL conference in Chicago and view the latest innovative plastic products for the lottery industry.

The Plastic Professionals, a growing subsidiary of the Owner Revolution family, will welcome John’s extensive experience.  According to Jeff Mauk, Director of the Plastic Professionals, “We are delighted to have John come on board with us.  He will be instrumental in the growth of the Plastic Professionals and will make an immediate impact with this organization.

The Plastic Professionals is a Custom Rotational Molding and Mold Building operation located in Atlantic, Iowa.

John will be succeeded at Schafer Systems by Scott Pederson. Scott has experience in both Sales and Marketing and has been an employee at Owner Revolution (parent company) for the past 6 years. Teresa Immel, Sales Director for Schafer Systems said, “This will be a very smooth transition for Scott since he is very familiar with Schafer Systems, our products and our marketing strategy.  His Graphic Design, Marketing and Sales experience will prove to be very beneficial to us.

About Schafer Systems Inc. (www.ssi-ia.com)

Schafer Systems Inc. is the world leader in point of purchase and promotional products for the lottery industry. SSI dispensers, Play Centers and related products are the industry standard with customers including all 40 U.S. lotteries, 46 countries and 10 territories. SSI is located in Adair, Iowa.

CONTACT: Teresa Immel, Sales Director Schafer Systems Inc., Phone: 641.742.3266, Fax: 641.742.3624, Email: teresa.immel@ownrev.com


INTRALOT, Pioneer in The Use of New Technologies

ATHENS, Greece (October 3, 2006) -- During a presentation of new Microsoft products in Munich on September 27th and 28th, attended by approximately 30 journalists from Central and Eastern Europe, INTRALOT presented its study concerning the potential implementation of the corporate extranet based on the SharePoint 2007 platform. During a round table discussion that followed, Mr. Dimitris Tagalis, Director of the company’s Global Support Services Department stressed the important part that organizational infrastructure projects should play in rapidly developing international companies.

The paper dealt with potential applications of the new platform as it may be applied to meet INTRALOT’s corporate needs as well as that of its international subsidiaries, customers and business partners. SharePoint 2007 provides INTRALOT with an “international common point of reference” which facilitates communication between INTRALOT management involved in project monitoring, and provides solutions for remote education and support, information and solution exchange.

The event previewed new Microsoft products that will be released at the end of the year.  Microsoft considered the INTRALOT study on SharePoint 2007 as one of the more accomplished ones presented and has asked INTRALOT to participate in the announcement of SharePoint 2007 through a presentation of its “Streamlined Interactivity” presentation.

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About INTRALOT (www.intralot.com)

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. Its broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations, its experience in sports games and its leading-edge technology give INTRALOT a competitive advantage, which contributes directly to customers’ efficiency, profitability and growth. INTRALOT’s footprint straddles five continents with 37 subsidiaries, 8 business offices, 3,000 people and revenues of € 523 million for 2005 and €700(Ε) for 2006.

SOURCE: INTRALOT.
For more information please CONTACT: Ms Evi Ioannidou, Communications Director, Phone: +30-210-6156000 – Fax: +30-210 6106800, email: ioannidou@intralot.com.


Michigan Players Love OGT’s Patented Lucky Numbers Game

Lucky Numbers

SAN ANTONIO, Texas, USA (October 2, 2006) -- The Michigan Lottery’s Lucky Numbers game, using Oberthur Gaming Technologies’ Lucky Dice® patented play action, has flown off the shelves, selling out in just 7 weeks! The Lucky Numbers game offers consumers tremendous play value, with the play action and winning criteria not only varying from ticket to ticket, but from game to game within each ticket.

 “Lucky Numbers has indexed at 118 and is one of our best $2 games this year,” said Glenn Strong, Michigan’s Instant Game Product Manager. “Players are contacting us to request that we bring more games just like this one to the streets.

Lucky Numbers is just one variation of OGT’s Lucky Dice® patent, which has been launched by six (6) Lotteries in the United States. Lotteries can use this same patented play action using cards, dice or other symbols. This allows Lotteries to freshen up the game and give players the same beloved play action with a new face.

The Lucky Dice® play action (U.S. Patent No. 7,004,506) and all games incorporating the same patent, such as Lucky Card Cash and Lucky Numbers, are part of OGT’s proprietary products portfolio.

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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 products and services to 100 clients in some 50 countries.
The company has production units or offices in Montreal, Canada; San Antonio, Texas; Atlanta, Georgia; Philadelphia, Pennsylvania in the U.S.; Paris, France; and Sydney, Australia.

SOURCE: Lyse Trudel, Communications Officer, Oberthur Gaming Technologies, (+1-514) 254-3600, ext. 101, Email: lyse.trudel@mtl.oberthurgt.com.
For information:Vicki Smith, Sales Support Specialist, Liz Johnson, New Business Coordinator, Oberthur Gaming Technologies, (+1-210) 509-9999 ext. 236, (+1-210) 509-9999 ext. 119.


Illinois Lottery Shows Chicago Cubs Fans What it Looks Like to be ‘Set For Life

CHICAGO, Illinois, USA (October 2, 2006) -- Chicago Cubs fans experienced a win they never expected when Christy Davis won $100,000 a year for the rest of her life in the Illinois Lottery’s “Set for Life” grand finale event just before the first pitch.

Since the end of May, Lottery players across the state mailed in $30 worth of non-winning, instant tickets to qualify for the promotion. Each week, the Lottery drew a new finalist for a total of 16 who qualified to participate in the grand finale event at Wrigley field. During the live finale, each would learn which prize they’d won from a prize pool that included the cash equivalent of a new-leased car, the cash equivalent of a fabulous vacation for a lifetime or the $100,000 a year grand prize.

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Davis waited anxiously for more than two months since she first learned she was a “Set for Life” finalist. While the 33-year-old winner says she’s not going to quit her job as a 911 operator for the city of Aurora, she did say, “No more overtime.

“Oh my God, oh my God, oh my God. I don’t believe it,” said Davis the moment she found out she won $100,000 every year for the rest of her life.

Accompanied by “Set for Life” agents, the 16 finalists gathered on the field immediately preceding the game - a treat in itself for most finalists, many of whom were long-time Chicago Cubs fans. Enormous baseball cards with their week number waited for them on the warning track and each finalist lined up in front of their card. At a cue given by Illinois Lottery Director of Marketing Sarah Cummins, the finalists peeled off the covering of the ticket and 10 players won cash for a vacation every year for life. The remaining six finalists saw a pot of gold on their tickets, meaning that they remained in the running for the grand prize.

At this point, both Cubs fans and the remaining “Set for Life” finalists were waiting anxiously because not only was someone going to walk away with $100,000 every year for the rest of their lives, but 1,000 Cubs fans were on the verge of having the opportunity to change their lives in an instant. This was because as Cubs fans entered the game, 16,000 received a baseball card that corresponded to one of the “Set for Life” finalists.  Each Cubs fan who held a baseball card that corresponded to the grand prize winner was going to win a chance to become a millionaire themselves with a free “$250 Million - Millionaires Club” instant ticket, the new Lottery game with 30 top prizes of $1 million.

The “Set for Life” agents had another twist up their sleeves. Each agent carried an attache case that the players had randomly picked that morning. However, in “Deal or no Deal” fashion players had the opportunity to keep their previously picked case or take the new one that waited for them on the field. Each of the six finalists knew that only one case held the key to the grand prize. After being signaled from Cummins, the agents opened the attache cases for each of the six finalists and the winner was finally revealed.

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Davis says she already has a plan for her first $100,000, “First, I’m going to hire a financial advisor so I can invest and save my winnings; and then I’m coordinating a Hawaiian vacation for my family.

The ‘Set for Life’ finale was breathtaking,” said Illinois Lottery Superintendent Carolyn Adams. “It was over in minutes, but I don’t think a single person in the stadium let out their breath the entire time.

Set for Life” was the Lottery’s largest ever second-chance promotion, with $200 million in total available prizes. Hopeful players sent in more than $580 thousand entries over the course of the promotion.

About the Illinois Lottery

Founded in 1974, the Illinois Lottery is a state agency with annual sales of $1.99 billion. Since its inception, the Lottery has contributed more than $13.5 billion to the state Common School Fund to assist K-12 public schools. Players must be at least 18 years old. For more information on the Illinois Lottery please visit our Web site at http://www.illinoislottery.com.

SOURCE: Illinois Lottery.
CONTACT: Mia Sissac, (312) 255-3073 (office), (312) 636-6303 (cell) or Brigitte Cross, (312) 255-3045 (office), (773) 339-1176 (cell).


Lottery Committee Appointments Named

NEW ZEALAND (October 2, 2006) -- Minister of Internal Affairs Rick Barker today announced 32 appointments to Lottery distribution committees.

"Since New Zealand Lotteries began in 1987 over $2 billion has been transferred to the Lottery Grants Board for distribution to our communities,” said Rick Barker.

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"The Lottery Grants Board allocates the funding it recieves to eleven Lottery regional community distribution committees and a national distribution committee.

"The Lottery national distribution committee considers applications that have a national focus, or where applicants are national organisations. Lottery regional community distribution committees consider applications that have a more local focus.

"Those who put themselves forward to these committees deserve our recognition and respect. While there is more money available to be distributed than ever before, hard decisions still need to be made," said Rick Barker.

All appointments are for a term of three years, from 29 September 2006, except Louise Tankersley and Andrea Needham. Ms Tankersley has been appointed for a term of three years, from 18 October 2006. Ms Needham has been appointed from 29 September 2006 and her term will expire on 30 June 2007. Ms Needham has been appointed for the remainder of the term of a resigned member and may be reappointed.

SOURCE: Press Release New Zealand Government, Hon Rick Barker Minister of Internal Affairs.


SC Lottery Receives Award of Excellence

Award Is Highest Form of Recognition For Governmental Accounting And Financial Reporting

COLUMBIA, South Carolina, USA (October 3, 2006) -- The South Carolina Education Lottery (SCEL) is the recipient of the highest award in governmental accounting and financial arenas – The Certificate of Achievement for Excellence in Financial Reporting. The award is given by the Government Finance Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.

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This program is to encourage government agencies to go beyond the minimum requirements,” said Jake Lorentz, GFOA’s Assistant Director of Technical Service Center. “The standards are always changing. The commitment from the Lottery to do the best it can, regardless of the financial health of the organization, is to be commended.

SCEL’s Controller, Uvette Pope-Rogers, CPA, received an Award of Financial Reporting Achievement for serving as the agency’s primary contact for preparing the award-winning Comprehensive Annual Financial Report (CAFR).

This award is based on a collaborative effort of the entire agency,” said Rogers. “It was a monumental task that took a great amount of commitment from everyone. I’m excited to know the Lottery is being recognized nationally.

CAFR is judged by an impartial panel to meet the high standards of the program including demonstrating a constructive “spirit of full disclosure” to clearly communicate its financial story and motivate potential users and groups to read the CAFR.

To view the Lottery’s award-winning 2005 Comprehensive Annual Financial Report, please visit SCEL’s website at www.sceducationlottery.com and click on Lottery.

For more information about GFOA, please contact Stephen Gauthier at (312) 977-9700.

SOURCE: The South Carolina Education Lottery.


On-Line Gaming Contract Extensions To Provide Kentucky Lottery with Substantial Savings
Between $7.6 Million and $9.4 Million More Could Go To Fund Popular Scholarship and Grant Programs

LOUISVILLE, Kentucky, USA (October 2, 2006) -- The Kentucky Lottery Corporation (KLC) board of directors on Friday approved a three year contract extension with GTECH Corporation, the KLC’s provider of on-line gaming systems. The retailer telecommunications network contract with BellSouth was also extended for an additional three years to coincide with the on-line contract.

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Both contracts will provide the KLC with cost saving through reduced rates for services already in place. Payments to GTECH will be reduced from 2.75% to 1.59% of gross on-line sales.

The GTECH rates will go into effect immediately, so the last 21 months of the existing contract and the three years of the extension will be under the new rate structure. This means there will be a savings for the KLC between $7.6 million and $9.4 million over the next five years, depending on actual sales. From this amount, a savings of $6.6 million will be realized over the next 21 months. The Corporation will also be able to avoid substantial conversion costs incurred when moving to a new system.  The contract calls for all retailer terminals to be refurbished by July 2007.

 “Our bottom line is the bottom line, and this is a development which will help a lot of kids in Kentucky,” said KLC Board Chairman George Demaree. “These substantial savings can be passed along directly to the college scholarship and grant programs funded by KLC proceeds, so even more of our state’s young people can realize the dream of a college education.

The new BellSouth contract will also go into effect immediately, saving the KLC approximately $166,000 over the life of the deal. By keeping the current telecommunications system, the KLC will also save approximately $1.2 million by deferring the cost of converting to a new communications system until 2011.

The contracts as amended will now be in place through June 27, 2011. The GTECH contract was initially awarded on June 28, 1998, while the BellSouth contract was awarded in January 2003. Both vendors have supplied the KLC’s on-line game system since the start of Lottery sales in Kentucky back in 1989. The KLC expects to issue a request for proposal for a new on-line gaming system in 2009 for implementation in June 2011.

The board also heard a sales update for the first two months of the fiscal year. There were $115.3 million in ticket sales during July and August, which is $2.6 million (2.3%) more than in the prior fiscal year but $4.8 million (4%) below budgeted projections. The KLC’s Senior Vice President of Finance & Administration Howard Kline said a large Powerball jackpot run in September should help the bottom line. “The discretionary income of our players has been obviously affected by high gas prices during the first part of the fiscal year,” said Kline. “With an overwhelming majority of our tickets being sold at gas stations, it just makes sense that sales would be soft when gas was $3 a gallon.

In other actions, the board approved:

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  • A contract with Smartplay International/Garron Lottery Products for online drawing equipment repair services, and a rental contract with Smartplay for a random number generator;
  • A contract with Neal Turner Realty for office and warehouse space in the Bowling Green region;
  • Game rules and regulations for eight scratch-off tickets and eight pulltab games; and
  • Approved a 4% increase in KLC President and CEO Arch Gleason’s salary effective September 4th, bringing his annual salary to $211,700.

The next meeting of the KLC Board of Directors will be Monday, November 20th. The meeting will begin at 12:00 PM ET, and will be held at KLC headquarters at 1011 West Main Street, Louisville. Committee meetings will begin at 11:00 AM ET.

SOURCE: The Kentucky Lottery (www.kylottery.com).
For More Information
CONTACT: Chip Polston, Jennifer Cunningham or Sara Westerman (502) 560-1675.


Rhode Island Lottery Announce 2006 Financial Year Highlights

RHODE ISLAND, USA (October 3, 2006) - The 2006 fiscal year has come to an end, and the financial evaluation has been completed.  The Rhode Island Lottery is pleased to report another successful year, with sales totaling $1,731,315,483.  This is a 5.78% increase from last fiscal year’s sales.  After all prize payouts, retailer commissions, and daily operational costs were settled, the Rhode Island Lottery turned over a record $323,899,491 to the State’s General Fund for the 2006 fiscal year.

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There are several factors that contributed to this year’s growth.  Improved marketing and increased advertising corresponded with an 11.14% ($8.4 million) increase in instant ticket sales from the 2005 fiscal year.

Wild Money, an ‘instate’ progressive jackpot game, increased sales by 44.7% ($1.67 million).  This growth is partly attributed to higher than average jackpot runs and advertising exposure.

In August of 2005, the PowerBall® structure was changed to accommodate demands for faster growing and higher jackpot runs.  This is a large factor in the 36.28% ($15.23 million) increase in 2006 PowerBall® sales.

Gross video lottery sales increased $75.44 million with a resulting increase in net terminal income (sales less prize awards) of $17.32 million for the fiscal year that ended June 30, 2006 as compared to the previous fiscal year.

Due to the improved sales of the products highlighted above, the lottery increased its payment this year to the State’s General Fund by $16.35 million.

The Rhode Island Lottery is proud to have once again increased its contribution, and in doing so improving the quality of life for all state residents.

SOURCE: Rhode Island Lottery.

GTECH a leading supplier of systems and services to the lottery industry.

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