• Lottomatica Enters A New Segment Of The Italian Gaming  Market. Full Story
• Ohio Lottery Instant Games Set All-Time Weekly Sales Record. Full Story
• Extension To State’s Public Lotteries Licence. Full Story
• Retailers Are No Luckier Than Other Players. Full Story
• Scientific Games Completes Games Media Acquisition. Full Story
• New STL Order for 1,500 KeWin Multimedia Lottery Terminals. Full Story
• OGT’s HOT TAMALES® Games Produce Sizzling Results! Full Story
• PacificNet Launches New Gaming Product Line. Full Story

Sports And Horse Racing Betting Bid: Lottomatica Enters A New Segment Of The Italian Gaming  Market

Lottomatica Awarded 1,144 Sports Betting Rights And 500 Horse Racing Betting Rights

Almost Half Of The Sporting Rights Available  For The Corners Obtained In The Main Italian Towns

ROME, Italy (December 28, 2006) – Lottomatica S.p.A. announces that, following the outcome of the sports and horse racing betting bid, it has been awarded 1,144 sports betting rights and 500 horse racing betting rights, as published today on Gazzetta Ufficiale of Italy. Such concessions will expiry in December 2015.

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The effect of this award is that Lottomatica is the leading operator in the sports betting sector covered by so-called “corner” distribution. Lottomatica also obtained all the horse racing betting rights that it tendered for.

Lottomatica has also acquired the right to enter the internet and interactive channels, starting by offering the sports betting and with the possibility in the future of offering other games.

 “The results of the tender are in line with our top expectations,” commented Marco Sala, Managing Director and General Manager of Lottomatica Italian Operations. “We met our goal to play a leadership role in the betting sector and with such outcome Lottomatica enters for the first time this important segment of the Italian market. The sports betting market in Italy alone is worth about 2 billion euro, and it is expected to double during the next two or three years. We congratulate AAMS on their far-sighted strategy.

We focused on sports betting corners and today we obtained the major number meeting the goal of concentration in the main Italian towns.

Entering this new gaming segment is a fundamental important step for us – continued Marco Sala - allowing us to keep a closer look-out for the various opportunities at international level, as we have now acquired the technical and business skills necessary to manage the book risk. This will become possible also thanks to the synergies already existing with GTECH which give us the advantage of having the best technologies ready to hand.”

The result achieved in the sports betting is all the more appreciable in that the corners for which rights have been obtained are especially concentrated in the main Italian towns, where Lottomatica has achieved approximately 46% of the rights available for the corners. The Lottomatica brand will thus have an additional chance to increase its visibility from one end of the peninsula to the other, from north to south.

Starting form today, Lottomatica’s commercial network will contact the main gaming outlets in Italy to build up one of the most important networks of sports betting professionals.

The betting operations will be managed by Lottomatica Scommesse, the subsidiary set up for such purpose and 100% controlled by Lottomatica S.p.A..

A final note: the awards were made at the end of a selection procedure for the granting of concessions to conduct public gaming business under Article 38, paragraphs 2 and 4, of Decree Law 223 of 4 July 2006 (converted with amendments and additions into Law 248 of 4 August 2006).

SOURCE: Lottomatica S.p.A. Legal Notice P.Iva 08028081001

Ohio Lottery Instant Games Set All-Time Weekly Sales Record

CLEVELAND, Ohio, USA (December 28, 2006) -- Brisk holiday sales have pushed Ohio Lottery instant game sales to $37,950,128 for the week ending Dec.23, an all-time weekly sales record.  The record beats the previous one set December 13, 2006.

 Here are the week’s top-selling instant games: (for the week ending Dec. 23)

With sales of $1.27 million, Fiscal Year 2006 was the Ohio Lottery’s best instant ticket sales year.  In Fiscal Year 2007, instant ticket sales continue to perform well, with sales up in each of the past 11 months, compared to the same month the prior year. 

Want to know more about Ohio Lottery instant games?  Visit the Ohio Lottery’s website at www.ohiolottery.com.

Current instant ticket records:

SOURCE: Ohio Lottery.
CONTACT: Mardele Cohen, Deputy Director, Office of Communications, 216-787-3309.

Extension To State’s Public Lotteries Licence

MELBOURNE, Victoria, Australia (December 22, 2006) -- Tattersall’s application to extend its public lotteries licence for 12 months until 30 June 2008 has been granted.

The current lotteries license held by Tattersall’s was due to expire on 30 June 2007.

On 7 September this year the State Government announced it had agreed to a request from the Lotteries Licence Review Steering Committee for more time to complete its report into the granting of the next public lotteries licences.

Given the implications of the delay to the ongoing provision of public lotteries in Victoria after 1 July 2007, discussions were held with Tattersall’s about interim licence arrangements.

Tattersall’s formally applied under the Gambling Regulation Act 2003 for its licence to be extended for 12 months. After conducting the necessary inquiries, the State Government granted the application.

The extended licence will continue to be subject to the same terms and conditions, apart from its date of expiry.

Under the Gambling Regulation Act, the licence may be extended only once.

SOURCE: From the Office of the Minister for Gaming.

Retailers Are No Luckier Than Other Players

MONTRÉAL, Quebec, Canada (December 21, 2006) -- Based on research conducted to determine the number of retailers who won prizes of $50,000 or more over the past five years, Loto-Québec is of the opinion that there is no reason to believe retailers won any more often than other lottery players, given their estimated respective levels of ticket consumption.

This was the finding of an extensive analysis of major prizes won between October 2001 and October 2006 carried out by the Corporation. In actual fact, according to an assessment of the available data on prizes of $50,000 and over awarded during the five-year period, the situation in Québec appears entirely normal.

This lengthy examination process involved the mobilization of numerous resources used to manually corroborate close to 4,000 cheques. The assessment was conducted by thoroughly reviewing the Corporation's winner file, retailer file and winner questionnaires.

In all, 2,341 prizes of $50,000 or more were won over the past five years. A compilation of all the cheques issued revealed that retailers won a total of 44 individual prizes during that period. Prizes won with Mini (10) and Banco (7) were analyzed separately because they represent particular purchase behaviour.

In the case of Mini, for example, Loto-Québec's business policy obliges retailers to buy all tickets that have gone unsold at the time of their given draws. As such, it is quite normal that retailers consume more Mini tickets than the general public, and the 10 Mini prizes won out of a total of 135 correspond to the average expected. With respect to the daily Banco lottery, the analyses of the data on winning retailers indicates that their playing volume is clearly higher than the average spending of regular players. Given this context, the total of 7 out of the 149 $50,000 + prizes won is understandable, with a similar phenomenon having been observed in British Columbia.

Thus, retailers won 27 out of the 2,057 individual prizes of $50,000 and more awarded for all other Loto-Québec lotteries over the past five years. This data was submitted to the auditing firm of Samson Bélair / Deloitte & Touche s.e.n.c.r.l., which, in collaboration with a mathematics professor at Université du Québec à Montréal, validated the Corporation's conclusions according to the hypotheses provided and the probability calculations with regards to statistical norms.

Retailers are known to purchase more lottery tickets than the average consumer. In fact, based on a study commissioned by the Ontario Lottery and Gaming Corporation and verified by an independent organization, retailers play the lotteries 2.8 times more than regular customers*. In looking at their playing volume and their proportion (10,000 retailers) within the Québec population who reported having played a lottery during the last four weeks (2,700,000 individuals), the number of winning retailers is well within statistical norms.

Other prizes of $50,000 were also won by groups - 817 such prizes in all. Of these, 13 retailers claimed their share of $50,000 or more.

Customer Service and Security Measures

In addition to the measures already in place to assure the integrity of the validation process (musical tone identifying a winning ticket, display indicating the prize amount to the customer, validation coupon issued by the terminal), a message advising customers to endorse their tickets is now also visible on point of sale displays. Moreover, as part of Loto-Québec's commitment to continuous improvement, the game terminal will soon be emitting a different musical tone to indicate large prizes, and the duration of the display indicating the prize won will be extended.

Loto-Québec is also dedicated to remaining vigilant and will reinforce its control processes if deemed necessary subsequent to the release of reports by ombudsmen in Ontario and British Columbia which will present evaluations of the measures in place in their respective provinces.

• Note: This study found that owner-retailers purchase 2.8 times more tickets than regular players (individuals having purchased at least one ticket during the course of the past four weeks). Vis-à-vis all point of sale employees, this proportion amounts to 1.9. The data available in Québec applies only to owner-retailers.

Prize Table

Information: Jean-Pierre Roy, Media Relations, 514 499-5151 

SOURCE: Loto Quebec.

Scientific Games Completes Games Media Acquisition

NEW YORK, USA (December 22, 2005) --Scientific Games (SGMS) announced today that it has completed the acquisition of Games Media Ltd. and related companies. Games Media is a UK based company developing, publishing and selling “Amusement With Prizes” (AWP) machines, “Skill With Prizes” (SWP) machines and related content for the UK public house market.  The acquisition is expected to be neutral to 2007 earnings.

The UK public house market comprises approximately 60,000 pubs which have an estimated total of 120,000 AWPs and 30,000 SWPs. It is anticipated that the industry will undergo a digital replacement cycle of the current analog machines starting in 2007. For more on Games Media, please see the intention to complete this transaction previously announced on November 27, 2006.

About Scientific Games
Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, a leading supplier of fixed odds betting terminals and systems, interactive sports betting terminals and systems, and wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut, Maine 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

New STL Order for 1,500 KeWin Multimedia Lottery Terminals

AUSTRIA (December 22, 2006) -- The automation specialist KEBA has received another order for Kewin multimedia terminals from the Spanish company STL (Sistemas Técnicos de Lotérias del Estados, S.A.). All across Spain, STL operates approximately 10,000 lottery terminals for the Spanish lottery company O.N.L.A.E (Organismo Nacional de Loterias y Apuestas des Estado).

First STL order in February

At the beginning of 2006, KEBA succeeded in prevailing against international global players. The Austrian automation specialist was commissioned by STL to deliver 2,200 Kewin multimedia terminals. “Decisive for the decision in favor of STL and ONLAE were not just the outstanding product characteristics such as the high availability, reliability, and easy maintenance of our terminals, but especially the professional performance and great engagement of our employees in the pilot phase,” according to Gerhard Luftensteiner, CEO of KEBA AG.

Follow-up order in November

Based on great satisfaction with the devices in the field, an order for an additional 1,500 terminals was placed at the beginning of November.

KeWin: outstanding product characteristics

Phenomenal performance and maximum recognition rates combined with incomparable speed and precision reduce the KeWin multimedia’s transaction times to an absolute minimum. The toolbox principle, both in the hardware and software characteristics, makes the terminal easy to upgrade and permits the exact configuration of the device to fit the respective requirements. This is economical, for this way, only those components and functionalities are used that are actually required. However, a retrofitting with expansions that may be necessary in the future is still always possible. And optimal usability is also ensured, for with the brilliant and especially long-lasting TFT display with touch screen, interaction is user-friendly, use of the scanner is ergonomic, and the device also supports the processing of A4 betting slips.

About KEBA AG

KEBA. An Upper Austria showcase company continues on its successful course

KEBA AG is an internationally successful company domiciled in Austria with branches in Germany, the Czech Republic, Romania, the USA and the PR China. KEBA develops and manufactures innovative, top quality solutions in the area of industrial, banking and services automation. In fact, with its inventive technologies, the company is as a genuine trendsetter in its field.   

With its current workforce of 654, KEBA has sales of EUR 90 million, 75 per cent of which are obtained in countries outside Austria. In order to continually upgrade its products and develop the innovations of tomorrow, KEBA invests around 20 per cent of its sales revenues in research and development.

SOURCE: KEBA AG

OGT’s HOT TAMALES® Games Produce Sizzling Results!

SYDNEY, Australia (December 21, 2006) - Lotteries are hot to launch OGT's HOT TAMALES® game after seeing sizzling results! To date, the Idaho and New Jersey Lotteries have launched OGT’s new “hot” property, and more are in the works.

To take advantage of the brand’s equity, the New Jersey Lottery launched a “Scratch ‘n Sniff” ticket with cinnamon-scented overprint, and unique prizes for its second chance drawings. Players loved the prize packs, which included a HOT TAMALES® branded MP3 player and docking station, his and hers scented t-shirts, his and hers flip flops, scented air freshener, cooler with MP3 outlet and AM/FM reception and a one-year supply of HOT TAMALES® brand candies. The Lottery also gave away “Hot Spot” trips to destinations of the player’s choice.

The Idaho Lottery featured the HOT TAMALES® game as part of its annual summer fair promotion with free HOT TAMALES® candy samples for its consumers with a $20 purchase of HOT TAMALES® scratch tickets. Idaho also incorporated a second chance drawing feature into the game giving away secondary cash prizes and one grand prize “Hot Spot” vacation to Puerto Vallarta, and it paid off with an index score of 115!

OGT has created a broad range of entertaining promotions to help endorse the HOT TAMALES® lottery ticket. From a HOT TAMALES® tour, to a HOT TAMALES® retailer mailer, OGT is helping to get consumers and retailers “fired up” about the HOT TAMALES® games.

HOT TAMALES® brand is America’s #1 cinnamon-flavored candy and is sold in 20 markets globally.

About Just Born, Inc.

Just Born, Inc. is a privately-owned company founded in 1923 and headquartered in Bethlehem, PA, with a second manufacturing facility in Philadelphia , PA. In addition to HOT TAMALES® brand candies, Just Born manufactures and markets MIKE AND IKE® brand candies, PEEPS® brand marshmallow candies, ZOURS® brand candies, TEENEE BEANEE® brand gourmet jellybeans, and PEANUT CHEWS® brand candies. It employs over 560 associates and markets its candy brands in over 50 countries worldwide. Visit www.justborn.com for more information.

SOURCE: Lyse Trudel, Communications Officer Oberthur Gaming Technologies (+1-514) 254-3600, ext. 101. For information: Liz Johnson, New Business Coordinator Oberthur Gaming Technologies – USA (+1-210) 509-9999, ext. 119

PacificNet Launches New Gaming Product Line, Take1 Electronic Bingo Machines, and Receives Rave Reviews by Leading Bingo Operators in Europe

BEIJING, China (December 26, 2006) -- PacificNet, Inc. (Nasdaq:PACT), a leading provider of Customer Relationship Management (CRM), mobile internet, e-commerce and gaming technology in China, announced today that its Take1 Technologies (“Take1”) subsidiary has introduced a new line of gaming machine products: Electronic Bingo Machines. The electronic bingo machines were given positive reviews upon their initial presentation to several leading bingo halls and bingo operators in Europe.

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PacificNet’s Take1 Electronic Bingo Machines are played much like traditional bingo, but without the hassle of paper cards and mess of ink blotters. The Take1 Bingo Machines are based on a client-server computer network architecture and players can buy electronic bingo tickets using one of the many electronic bingo terminals (or client betting stations) situated in a variety of electronic bingo sales outlets. This automation allows for players to play more games faster and to play from any location that’s linked to the central electronic bingo server, thus increasing bingo operator’s revenue.

PacificNet’s Take1 subsidiary has been in the business of designing and manufacturing electronic multimedia entertainment kiosks. Software for the machines was co-developed by PacificNet’s software outsourcing unit Pacific Solutions Technology, one of the CMM Level 3 certified software development centers with over 200 software programmers located in Shenzhen, China.  Recent regulation changes in several European countries have opened the doors to more widespread electronic bingo operators and a need to upgrade to the latest client-server based bingo gaming machines.

“We are delighted to unveil our newest bingo gaming products from our Take1 subsidiary after two years of research and development on this product line,” said Tony Tong, Chairman and CEO of PacificNet. “Electronic bingo machines are a big hit with both bingo hall operators, because of their increased revenues and efficiencies, and bingo players, because of their ease of use, faster games and fun features. Several major bingo hall operators in Europe have tested our electronic bingo machines and their response was overwhelmingly positive. These machines are also a good fit with our new Asian gaming focus. I am very happy with the synergy shown by our subsidiary companies who worked together to come up with this product and we are very excited to get them on the market.”

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Bingo is a game of chance where randomly-selected numbers are drawn and players match those numbers to those appearing on 5x5 matrices which are printed or electronically represented and are known as “cards.” The first person to have a card where the drawn numbers form a specified pattern is the winner and calls out “Bingo!” to alert others to the win. Bingo is a game used for legalized gambling in some countries. Bingo is a form of lottery which can be traced back to a game called Lotto, played in Italy in 1530. When Italy was united in 1530, the Italian National Lottery Lo Giuoco del Lotto d’Italia was organized, and has been held, almost without pause, at weekly intervals to this date. Today the Italian State lottery is indispensable to the government’s budget, with a yearly contribution in excess of 75 million dollars.

About Take1 Technologies

Take1 Technologies (http://www.take1technologies.com), a member of PacificNet group, is a leading designer, developer and manufacturer of multimedia entertainment and communication kiosk products including photo & video entertainment kiosks, digital camera photo development stations, multimedia messaging services (MMS) & mobile content download stations for mobile phones, and other coin-operated peripherals and consumables. Take1 has recently entered the electronic bingo machine business and plans to purse this market aggressively. Take1 Technologies is based in Hong Kong and markets and distributes its products around the world including the USA, Canada, Mexico, Europe, China, and SE Asia.

About PacificNet

PacificNet Inc. (http://www.PacificNet.com) is a leading provider of Customer Relationship Management (CRM), mobile internet, e-commerce and gaming technology in China. PacificNet’s clients include the leading telecom companies, banks, insurance, travel, marketing and business services companies and telecom consumers in Greater China. PacificNet’s corporate clients include China Telecom, China Mobile, Unicom, PCCW, Hutchison Telecom, Bell24, Motorola, Nokia, SONY, TCL, Huawei, American Express, Citibank, HSBC, Bank of China, Bank of East Asia, DBS, TNT, Hong Kong Government, and leading hotel- casinos in Macau and Asia. PacificNet employs over 1,400 staff in its various subsidiaries throughout China with offices in Hong Kong, Beijing, Shenzhen, Guangzhou, Macau, and branch offices in 28 provinces in China and is headquartered in Beijing and Hong Kong.

CONTACT: PacificNet USA office: Jacob Lakhany, Tel: +1-605-229-6678 PacificNet Beijing office: Ada Yu, Tel: +86 (10) 59225000 Room 2309, Building A, TimeCourt, No.6 Shuguang Xili, Chaoyang District, Beijing, China 100028
SOURCE: PacificNet, Inc.