| Lottomatica Announces First Half 2007 Results for
the Period Ended June 30, 2007  First Half 2007 Revenues of Euro 835 million, compared to
Euro 340 million from Lottomatica's Italian stand-alone operations in the first
half of 2006
EBITDA of Euro 381 million and
Operating Income of Euro 239 million, compared to Euro 187 million and Euro 156
million from Lottomatica's Italian stand-alone operations, respectively, in the
first half of 2006 Net Income
of Euro 68 million, compared to Euro 32 million in the first half of 2006 from
Italian stand-alone operations Reconfirmed
Full Year 2007 Guidance ROME and PROVIDENCE,
Rhode Island (September 13, 2007) -- The Board of Directors of
Lottomatica S.p.A., chaired by Mr.
Lorenzo Pellicioli, approved today the consolidated accounts of Lottomatica
Group for the first half of 2007, which ended June 30, 2007.
"We are pleased with the results of our first
semester," said W. Bruce Turner, CEO of Lottomatica Group. "The fundamentals of
our business continue to experience positive growth. We defended existing
contracts in New York, Kansas, and most recently in the United Kingdom, and we
made significant progress toward achieving our strategic goals set out in our
three year-plan. Our Italian operations have performed extremely well,
particularly in the instants arena, and we are pleased with the recent
successful launch of our Italian sports-betting business. With the acquisition
of Finsoft, together with the operational experience we are gaining in Italy,
we expect to establish a meaningful presence in the sports-betting space for
commercial and government-sponsored customers." "Lottomatica experienced continuing progress during the
first semester, with sustainable high margins in our key verticals," said
Stefano Bortoli, CFO of Lottomatica Group. "As a result, we remain on track
in terms of achieving our long-term goals for growth. We are also implementing
an ADR program which will allow our shares to be more accessible to U.S.
investors."
Lottomatica Group 2007 First-Half
Results
| Lottomatica Group Consolidated
Income Statements (euro/M) |
First Half
Ended
June 30, 2007 |
First Half
Ended
June 30, 2006 |
|
Revenues
|
835.5 |
340.5 |
| EBITDA* |
380.7 |
186.6 |
| EBITDA% |
46% |
55% |
| Operating Income |
239.4 |
156.3 |
| Net Income |
68.1 |
31.9 |
Note: 2006
reflects six months of Lottomatica Italian stand-alone operations.
*EBITDA represents
operating income plus depreciation, amortization and write-downs and other
non-cash items. EBITDA is considered an alternative performance measure that is
not a defined measure under International Financial Reporting Standards
("IFRS") and may not take into account the recognition, measurement and
presentation requirements associated with IFRS. We believe that EBITDA assists
in explaining trends in our operating performance, provides useful information
about our ability to incur and service indebtedness and is a commonly used
measure of performance by securities analysts and investors in the gaming
industry. EBITDA should not be considered as an alternative to operating income
as an indicator of our performance or to cash flows as a measure of our
liquidity. As we define it, EBITDA may not be comparable to other similarly
titled measures used by other companies. Revenues for
the first half of 2007 totaled euro 835.5 million, including approximately euro
427.7 million from six months of GTECH operations and euro 407.8 from Italian
operations. Overall, revenues grew 145.4% year-over-year, while revenue from
Lottomatica's Italian operations grew 19.8% year-over-year.
EBITDA was euro 380.7 million with an EBITDA margin of
45.6%. Operating income was euro 239.4 million for the first six months of 2007
(28.7% margin). Operating income margins, excluding
the purchase price amortization of intangibles related to the GTECH
acquisition, was approximately 34.6%. Net income was
euro 68.1 million for the six months ended June 30, 2007, compared to euro 31.9
million for the same period last year, up 113.5%. GTECH Operating Results and Business Highlights
Revenues for the first six
months of 2007 were euro 427.7 million, with approximately euro 374.5 million
from the Lottery segment, euro 29.0 million from Gaming Solutions, and
approximately euro 24.2 million from Commercial Services.
During the first half of 2007, GTECH continued to defend
its core lottery business. The New York Lottery extended its online lottery
contract with GTECH for an additional three years, resulting in more than euro
147 million in expected revenue to the Company over the three-year extension
period. As a result of a competitive re-bid, GTECH
received a 10-year online lottery contract from the Kansas Lottery which is
expected to generate revenues to GTECH of approximately euro 60 million
beginning in the third quarter 2008. The Missouri
Lottery awarded GTECH an IP-communications system contract, and the Rhode
Island and Connecticut lotteries selected GTECH Printing Corporation for
instant-ticket printing services. In the Gaming
Solutions vertical, GTECH and its Spielo subsidiary were chosen to provide a
new server-based gaming system and interactive video terminals to Svenska Spel
in Sweden. As a result of this contract, GTECH expects to receive revenues of
approximately euro 16 million over a five-year period. In addition, GTECH
expects to receive approximately euro 21 million from the sale of the
interactive video terminals, associated hardware, and game content.
After the close of the semester, the Camelot consortium
was chosen by the United Kingdom National Lottery for the next lottery
operating license, following a competitive procurement. GTECH is a major
lottery technology and services supplier to the successful Camelot consortium,
and will provide a wide array of the latest lottery technology, interactive
systems, integrated IMAGINE terminals, and ongoing services to Camelot over the
duration of the license. Moreover, in Belgium,
Denmark, and Western Canada, GTECH was chosen to provide new lottery
terminals. Other Business Developments
After the close of the semester, GTECH and Innova Capital
completed the sale of POLCARD to First Data International, on August 1, 2007,
for an enterprise value of approximately euro 237 million, on a debt-free,
cash-free basis. In addition, GTECH completed the acquisition of London-based
Finsoft Limited, a leading provider of real-time transaction and information
management systems for the commercial sports-betting market, on July 2,
2007. Italian Operating Results and Business
Highlights For the first half of 2007, revenues
from the Italian operations grew approximately 19.8% to euro 407.8 million,
from euro 340.5 million in the first half of 2006. Lottery wagers grew approximately 39.2% to euro 7.3 billion
in the first six months of 2007, from euro 5.3 billion for the same period last
year, as strong Instants lottery performance more than offset the slight
decrease in Lotto.
Total Lotto game wagers
reached euro 3.1 billion, reflecting a decrease of 10.4% against euro 3.5
billion in the first half of 2006. Wagers in the first half of 2006 included a
record late number, Cagliari 34. Core wagers increased to euro 2.7 billion
compared to euro 2.6 billion over the same period last year. Lotto revenues
were euro 204.0 million, compared to euro 227.6 million in the same period last
year. The continued strong performance of instant
tickets, resulted in sales of approximately euro 4.2 billion, compared to sales
of approximately euro 1.8 billion, in the first six months of 2006, an increase
of approximately 138% year over year. Approximately 1.2 billion Scratch &
Win tickets were sold in the first half of 2007, compared to 760 million in the
same period last year. The average price point grew from euro 2.3 to euro 3.4,
driven principally by the introduction of the euro 10 lottery ticket in January
2007, which generated new sales of euro 1.3 billion during the six months ended
June 30, 2007. Revenues for the Instant Lottery business totaled euro 147.6
million compared to euro 63.0 million during the first half of 2006, an
increase of 134.5%. Revenues from Gaming Solutions
were up 113.3% over the same period last year, driven by the increased
distribution of approximately 14,000 AWPs installed as of the end of June.
Revenues from Commercial Services improved 7.4% over the
same period last year. The Company commenced Italian
sports-betting operations on schedule in August at over 1,000 corner shop
locations, out of the 1,145 contracts secured. Consolidated Cash Flow and Net Financial Position
At the close of the semester, Lottomatica Group had a Net
Financial Position of euro 2.57 billion, with Cash and Cash Equivalents of
approximately euro 289.6 million at the end of period. During the six months
ended June 30, 2007, the Group generated euro 206.6 million of net cash flows
from operating activities.
n Consolidated Shareholders' Equity
n Consolidated shareholders' equity
totaled euro 1.82 billion. Additional Information -
Second-Quarter Results Revenues for the second
quarter ended June 30, 2007 totaled euro 400.2 million, including approximately
euro 203.1 million from three months of GTECH operations and euro 197.1 million
from Italian operations. Overall, revenues grew 166.3% year-over-year, while
revenue from Lottomatica's Italian operations grew 31.2% year-over-year.
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EBITDA was euro 169.0
million with an EBITDA margin of 42.2%. Operating Income was euro 99.3 million
for the quarter, up 58.9% over the same period last year. Net Income was euro
23.1 million for the quarter ended June 30, 2007, compared to a net loss of
euro 9.5 million in the second quarter of 2006. The net loss in the second
quarter of 2006 was principally driven by foreign exchange losses incurred in
connection with the acquisition of GTECH. Italian
operations revenues grew approximately 31.2% to euro 197.1 million, from euro
150.3 million in the second quarter of 2006. Lottery wagers grew approximately
51.2% to euro 3.6 billion in the second quarter of 2007, from euro 2.4 billion
for the same period last year, with Lotto game wagers contributing euro 1.54
billion, an increase of 5.2% against euro 1.46 billion in the second quarter of
2006 and instant tickets sales of approximately euro 2.04 billion, compared to
sales of approximately euro 906 million in the second quarter of 2006. Lotto
revenues reached euro 99.6 million, compared to euro 95.0 million in the same
period last year while Instant Lotteries revenues totaled euro 71.1 million
compared with euro 31.9 million during the second quarter of 2006, an increase
of 122.8%. Revenues for the second quarter of 2007
include euro 203.1 million from GTECH operations, with approximately euro 174.1
million from the Lottery segment, euro 16.1 million from Gaming Solutions, and
approximately euro 12.9 million from Commercial Services.
Financial Outlook Lottomatica confirms its guidance for the full year of
2007. Lottomatica continues to expect total revenues
in the range of euro 1.665 billion to euro 1.765 billion, for the year ending
December 31, 2007. Operating Income, excluding
purchase price amortization, is expected to be in the range of euro 490 million
to euro 500 million, with margins of 28% to 29%. EBITDA for the full year is reiterated in the range of euro
700 million to euro 710 million, with margins of 40% to 42%.
Other Information In
December 2003, Lottomatica issued a euro 360 million bond due December 22,
2008. The Euro bond has a fixed coupon payment of 4.80%, payable annually each
December. Pursuant to Italian Stock Exchange requirements, the Company notes
that the bond is set to expire in less than 18 months. Lottomatica is one of the world's largest commercial lottery
operators and a market leader in the Italian gaming industry. GTECH is a
leading gaming technology and services company, providing innovative
technology, creative content, and superior service delivery. GTECH and
Lottomatica 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.
Lottomatica is majority owned by De Agostini, which belongs to a century-old
publishing, media, and financial services group. Lottomatica is publicly traded
on the Italian Stock Exchange (LTO), and in 2006, had more than euro 1.7
billion in revenues and 5,900 employees in over 45 countries when combined with
GTECH. SOURCE: Lottomatica. CONTACT: AD HOC
Communication Advisors, 02-7606741; or Mario Pellegatta or Matteo Cidda,
335-1415585; or GTECH, Robert K. Vincent, Public Affairs, +1-401-392-7452.
INTRALOT Included in the 125 New Champions of the
World ATHENS, Greece (September
10, 2007) -- As an active member of the global business community and a leader
in its industry, INTRALOT was selected to
be a member of the newly founded Global Growth Companies Community of the World
Economic Forum. The establishment of the new group
took place at the World Economic Forum’s “Inaugural Annual Meeting
of the New Champions” in Dalian, China, from 6 to 8 September 2007.
More than 1.700 leaders from 90 countries have participated in the so called
“Summer Davos". The Global Growth
Companies Community comprises of the top 125 new generation companies that are
expected to change the global competitive landscape. 40% of the members are
from Asia, 26% hail from Europe, 20% are based in the Americas and 14% come
from Africa and the Middle East. The “New Champions” are
businesses that have demonstrated a clear potential to become leaders in the
global economy, based on such factors as a company’s business model,
growth record, leadership in their industry and outstanding executive
leadership, among others.
During his participation in
the WEF, Mr. Constantinos Antonopoulos, INTRALOT CEO, stated: "It is a
privilege and a great honour for INTRALOT to be recognized as a Global Growth
leader and actively participate in the World Economic Forum's Community of
Global Growth Companies. This prestigious and thought provoking forum was an
excellent opportunity to exchange ideas and best practices with global
leaders." About INTRALOT (www.intralot.com) INTRALOT, a public listed company, is the leading supplier of
integrated gaming and transaction processing systems, innovative game content
and sports betting management, to state-licensed gaming organizations
worldwide. It’s broad portfolio of products & services, its know-how
of Lottery, Betting & Video Lottery operations and its leading-edge
technology, give INTRALOT a competitive advantage which contributes directly to
customers’ efficiency, profitability and growth. With presence in over
than 40 countries, with more than 3,600 people and revenues of €791,4 m.
for 2006, INTRALOT has established its presence in all 5 continents.
For more information CONTACT: Ms Persa Kartsoli, Head Of
Corporate Affairs, Phone: +30-210 6156000, Fax: +30-210 6106800, email:
kartsoli@intralot.com.
Scientific Games First Lottery Vendor to Achieve
NASPL Certifications NEW YORK,
USA (September 10, 2007) -- Scientific
Games (Nasdaq: SGMS) has become the first lottery vendor in the industry to
be certified by the North American Association
of State and Provincial Lotteries (NASPL) for software development and
quality best practices. NASPL is the only trade industry group representing
state and provincial lotteries.
The NASPL-defined best
practices are intended to provide both lotteries and vendors with simple,
documented and approved methods for building quality into the product
development processes. The two certifications
Scientific Games received - for system requirements definition and development
-- recognize the company's processes, procedures and guidelines for development
and release of products. By achieving these certifications, Scientific Games is
able to assure its lottery customers it is the only NASPL certified vendor to
meet industry standards for cost, schedule, quality, integrity, performance,
safety, and environment of system changes. In addition, the common standards
will result in operational efficiencies, improved delivery, and increased
customer satisfaction. "We are very proud to be the
first lottery systems vendor to achieve these certifications from the NASPL,
which represents 52 lottery organizations. We would like to acknowledge the
South Carolina, Pennsylvania and Hoosier lotteries for their help in
implementing the best practices and thank our process action teams, which have
been pursuing these certifications since September 2006," said
Lorne Weil, Chairman and CEO of
Scientific Games. "We believe the implementation of NASPL's Best Practices
and Certification Programs will improve the quality and integrity of the
lottery environment and provide increased efficiencies, resulting in reduced
costs and increased profit margins for lotteries, vendors, and lottery
retailers." NASPL First Vice President and
South Carolina Education Lottery Executive
Ernie Passailaigue, stated,
"Scientific Games is to be commended for its achievement in implementing the
best practices, as defined by NASPL. I believe that adhering to NASPL's best
practices for Requirements Definition and Development Process will enhance
South Carolina's overall quality control environment."
"The Open Group has been
using its extensive experience over the past five years to assist NASPL in
developing open standards best suited for the lottery industry," said Allen
Brown, president and CEO of The Open Group. "This certification is another key
milestone in enabling NASPL to achieve its goal of creating an interoperable,
open standards-based lottery environment." About Scientific Games Scientific Games Corporation is the leading integrated
supplier of instant tickets, systems and services to lotteries worldwide, a
leading supplier of fixed odds betting terminals and systems, Amusement and
Skill with Prize betting terminals, 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 www.scientificgames.com. SOURCE:
Scientific Games.
CONTACT: Contact: Max Montgomery, 770-664-3807.
“Family Guy” Is a Top Seller in South
Dakota Animated Sitcom
Proves Popular Among Lottery Players ALPHARETTA, Georgia, USA (September 12, 2007) -- After the
first three weeks of sales, “Family Guy,” the Emmy®
Award-winning animated series, remains the top selling $2 instant ticket over
all other $2 games currently on the market in South Dakota.
In fact, “Family
Guy” is currently the second best selling instant ticket in the South
Dakota market, with higher weekly sales than any other instant game except the
Lottery’s new $20 game. “Even before
‘Family Guy’ launched, we had really good feedback from our
retailers,” said Joe Willingham, sales director for the South Dakota
Lottery. “They were excited to get the game because they like the show.
Their enthusiasm has contributed to strong opening sales.”
The Lottery supported the launch of “Family
Guy” with five versions of die-cut POS items, each featuring a
character from the show, and a poster that featured the five game scenes.
“’Family Guy’ is one of the best
adult-oriented animated shows ever produced and it makes a seamless and clearly
successful transition into the lottery category,” said Steve Saferin,
MDI president. “We’re excited to see these sales results in South
Dakota and encourage other states to tap into a new player group by including
‘Family Guy’ in their instant line up.”
MDI Entertainment, a
wholly-owned subsidiary of Scientific Games
Corporation (NASDAQ: SGMS) acquired the rights to “Family
Guy” for lotteries in November. The $2 South Dakota game has a top
prize of $10,000 with seven chances to win. “Family Guy” was originally created by
Executive Producer Seth MacFarlane. Premiering on FOX in 1999, the show was
cancelled once in 2000 and again in 2002, but strong DVD sales and high ratings
for reruns on Cartoon Network’s Adult Swim led to FOX bringing the show
back. It has consistently ranked number one in its time slot.
The show’s title characters are Peter Griffin, an
inept blue-collar worker, and his middle-class family who frequently become
entangled in Peter’s nonsensical antics. Key to the show’s humor are
the constant cutaways (usually featuring oddball pop culture references) and
flashbacks to various points in history, geography and reality involving the
characters and their ludicrous actions. MacFarlane also provides the voices for
Peter’s son, Stewie – the show’s most recognizable character --
and the family’s sarcastic talking dog, Brian.
“Family
Guy” has aired in countries all over the world including Australia,
Canada, Germany, Spain, the U.K., the United Arab Emirates and throughout Latin
America. Its popularity has resulted in products from board games and toys to
videogames and apparel. About Family
Guy Heading up the eclectic Family Guy household
is Peter Griffin, a big, boisterous, lovable oaf who isn't afraid to say what's
on his freakin' mind -- usually the wrong thing at exactly the wrong time. He
lives in Quahog, Rhode Island with his wife, Lois, and their three children --
Chris, Meg and Stewie, a brilliant, sadistic baby bent on destroying the
world. And, don’t forget Peter’s well-spoken, cynical
best friend, Brian, the family dog. Executive producer/creator Seth
MacFarlane has the distinction of being the youngest person to be an executive
producer. Family Guy debuted after the Superbowl in 1999, and in 2004, Family
Guy made television history when Fox ordered the previously cancelled show back
into production due to its extraordinary fan support in both DVD sales and
repeat broadcasts on Cartoon Network’s ‘Adult Swim’.
About Scientific Games Scientific Games Corporation is the leading integrated
supplier of instant tickets, systems and services to lotteries worldwide, a
leading supplier of fixed odds betting terminals and systems, Amusement and
Skill with Prize betting terminals, 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 www.scientificgames.com.
SOURCE: MDI Entertainment.
CONTACT: Max Montgomery,
Phone: 770-664-3807. Lottery Announces
Easy 5 Sales Start on September 16 LOUISIANA, USA (September 7, 2007) -- For the first time in
eight years, the Louisiana Lottery will
launch a new draw-style game, Easy 5, with a starting pari-mutuel cash jackpot
of $50,000 that keeps growing until it is won by matching five numbers in a
field of 1 to 37. Easy 5 sales will start Sept. 16 with the first drawing to be
held Sept. 19. Prizes can be won for matching as few
as two numbers, and the overall odds of winning a prize are 1 in 8. The odds of
winning the jackpot are 1 in 435,897.
The first Easy 5 drawing
will occur Sept. 19, with subsequent drawings every Wednesday and Saturday
evenings, like Powerball and Lotto, the Lottery's other two draw-style jackpot
games. To be eligible, tickets must be purchased by 9:30 p.m. on the night of
the drawing. With the launch of Easy 5, the Lottery
will also unveil a new instant-win feature, ezmatch, available as an add-on
option to Easy 5 tickets for an additional $1 per play. When the ezmatch
option is purchased, the Lottery's terminal will print five ezmatch numbers in
a column on the player's Easy 5 ticket along with corresponding instant prize
amounts for each number. Instant prizes of up to $250 can be won for each
ezmatch number that matches an Easy 5 number on the ticket. The ezmatch option
will be available for a limited time. "We're
excited about adding a new jackpot game with great overall odds of winning a
prize and believe our players will be, too," said Lottery President
Rose Hudson. "Easy 5 has a fun, easy
play style. And with the new ezmatch feature, players have the chance to win
now and later." With the introduction of Easy 5,
the Lottery will end sales for another draw-style game, Cash Quest, on
Saturday, Saturday, Sept. 15 at 9:30 p.m., with the final drawing to occur that
evening. Drawings are currently held five days a week, Monday through
Saturday. The Lottery launched Cash Quest in October
1998. Sales for the game were $4.2 million during fiscal year 2007, or about
1.4 percent of the Lottery's total sales. SOURCE:
Louisiana Lottery. 
The Tenth
European Lottery University Held In Dublin – Ireland, September 2 –
7, 2007
LAUSANNE, Switzerland
(September 9, 2007) -- When the European Lottery University (ELU)
program was started, no one would have imagined that it would reach
the tenth year mark. After Trinity College (Dublin 1998), Heriot-Watt
University (Edinbourgh 1999), Universidad de Salamanca (Spain 2000),
Montpellier (France 2001), University of Salerno (Italy 2002), the Universitat
Autonoma de Barcelona (Spain 2003), the University of Siena, the University of
Santiago de Compostela, the University of Zadar – Croatia, it was only
befitting that the tenth edition of ELU be held back in Dublin, where it all
started.
Supported by Ray Bates,
then EL President, championed
and organized by Bernadette Lobjois,
Secretary General and designed and moderated by Gilbert Rehayem, the ELU is now
considered to be the finest and most successful management training of its kind
in the Lottery world. Over ten years, it has attracted some 450
collaborators/managers mostly from all over Europe. ELU has been enhanced,
improved and enriched to offer a unique combination of academic presentations,
case studies, workshops and networking. The ELU is a
management education program that includes discussions and presentations on
issues ranging from organization structure and performance to marketing, legal,
finance, corporate social responsibility, technology, new games, emerging
trends and corporate strategies.
As part of the program, the
participants have also to develop, as a group case study, a modern Lottery
organization within a framework that is progressively assembled from the
workshops and discussions. The second Group Case study consists on defining the
tasks necessary to bring a new on-line game to market.
A well-deserved thank-you to Dermot Griffin, General
Director, An Post National Lottery Company
in Dublin for his warm hospitality, the EL Secretariat General for the overall
excellent organization of the seminar, and a special debt of thanks to all the
speakers involved in the seminar as well as to all the participants who made
the ELU, by their comments, participation and involvement, a beneficial, useful
and entertaining initiative. The next ELU promises to
be even more exciting … rendez-vous in 2008!! SOURCE: Gilbert Rehayem, EL Seminar Leader.
Iowa, Kansas Lotteries Team Up For Instant-Scratch
Game “Midwest Millions” Will Be First
Game Of Its Kind In U.S. Lottery Market DES
MOINES, Iowa and TOPEKA, Kansas (September 10, 2007) - This week, the
Kansas and Iowa lotteries will become the first in the
United States to offer a joint instant-scratch game. Players in both states
will buy tickets and compete for prizes as part of one big game designed to
test the “Powerball concept” that has worked so well in lotto
games. The joint scratch game, called “Midwest
Millions,” will offer a higher prize percentage and greater number of
large prizes than the two state lotteries have traditionally been able to offer
on their own for games at similar price points. Kansas
Lottery Executive Director Ed Van
Petten said his inspiration for “Midwest Millions” came from the
success that Canadian lotteries have achieved by joining together to offer
instant-scratch games with millions of dollars in prizes.
“I was looking at the sales trends for the
multi-provincial games in Canada and wondered why no one in the United States
had tried a similar concept,” Van Petten said. “The Canadian
lotteries have been quite successful with this type of game. We have many
multi-state lotto games where the prize fund is pooled. Why not try the same
concept on an instant game?”
The provincial lotteries in
Canada have successfully offered joint instant-scratch games since 1976. The
multi-jurisdictional scratch games have been sold across that country and
single games have offered prizes including $1 million in cash, vehicles and
vacation packages. While U.S. lotteries have worked together on promotions,
advertising campaigns and even television game shows to support instant-scratch
sales, no U.S. lotteries to date have offered a joint scratch game with prizes
in each jurisdiction offered as part of one big pool. At one time, all lottery games were individual to the
jurisdiction where they were offered. But lotto games such as Powerball and the
Canadian instant-scratch games have proven that players are willing to compete
as part of a larger game spanning multiple jurisdictions in exchange for bigger
prizes and more chances to win. As he continued to
evaluate his idea in mid-2006, Van Petten, who has led the Kansas Lottery since
2000, contacted Iowa Lottery CEO Dr. Ed
Stanek, the longest-serving lottery leader in the world and one of the
co-inventors of the Powerball game. Stanek saw merit in the idea, and the two
began the work of bringing a game to market. “Fifteen years into the Powerball era, no one can
argue with the success the multi-jurisdictional concept has achieved,”
Stanek said. “A multi-state instant-scratch game definitely deserves a
fair shot in the market.” The number of
tickets that can be offered in a lottery game and the size and number of prizes
that can be supported are dependent upon population. In 1992, Iowa, Kansas and
13 other lotteries joined forces to introduce Powerball, which has gone on to
produce world-record jackpots and dozens of multi-millionaire jackpot
winners. By joining together to sell Midwest Millions,
Kansas, with a state population of about 2.7 million people, and Iowa, with
about 2.9 million people, will effectively double their population base for the
game. Stanek, who has led the Iowa Lottery since its
start in 1985, said Powerball's success has exceeded any expectation he had
when it began and he's hopeful about the future for multi-jurisdictional
instant-scratch games. “It all depends on
players' reactions and the ability of states to be flexible about game
concepts, but this could be the beginning of a new generation of lottery
product,” he said. Tickets in the $10 Midwest
Millions game will feature scenes indicative of the states' shared agricultural
heritage. Artwork on the tickets will include a picture of a sunflower (Kansas'
state flower and a major cash crop) and an ear of corn (Iowa is the nation's
top corn-producing state) along with a field full of round bales of hay in the
background. The bales near the front of the scene have morphed into big round
bales of money.
Midwest Millions will offer
1.2 million tickets, with 600,000 going to each state. The game will begin
statewide sales in both states on Sept. 10. Instant prizes will range from $10
to $50,000 and two second-chance drawings will each offer a $500,000 prize and
50 prizes of $1,000. The first drawing in the game will be conducted Jan. 11 in
Topeka, Kan. The second drawing will be April 18 in Des Moines, Iowa. The
top-prize winners could both end up being from one state, as could the 50 other
winners in each drawing, although that isn't likely. Kansas' Van Petten knows that sales will measure the game's
success. “I fully expect this game to sell
out,” he said. “I do think this is an interesting concept that
will intrigue our players by allowing us to fund larger prizes with the pooling
of resources. If this is successful, my hope is to involve more states. I think
this will be a special benefit to smaller states such as Kansas and
Iowa.” The Iowa Lottery will celebrate the
launch of Midwest Millions with three retailer events this week. At each stop,
the lottery will give away Midwest Millions tickets to the first 50 people in
line and also will offer the tickets as prizes during
“spin-the-wheel” promotions. SOURCE: Iowa
Lottery. California Lottery Receives Financial Reporting
Honor from International Association
SACRAMENTO, California, USA (September 6, 2007) -- Today
Director Borucki announced that the
Certificate of Achievement for Excellence in Financial Reporting has been
awarded to the California Lottery by the
Government Finance Officers Association of the United States and Canada (GFOA)
for its Fiscal Year 2005-06 Comprehensive Annual Financial Report (CAFR) for
the fourth consecutive year. 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.
“I am pleased that
our Finance Division has once again been acknowledged for the fine work that it
does,” said Lottery Director Joan Borucki. “The
California Lottery employs some of the hardest working individuals in the
state. This award from the Government and Finance Officers Association of
the United States and Canada proves that our staff is among the
best.” The California Lottery’s CAFR has
been 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 user groups to read the CAFR. The
California Lottery’s Finance Division employs over 50 employees.
Throughout the year, the California Lottery works with its own Audit Division,
the California State Controller’s Office and the international auditing
firm KPMG to ensure the highest levels of accuracy in its financial
reporting. The California State Lottery contributes at
least 34 cents of every dollar that players spend on Lottery products to public
education and returns more than 50 percent of sales to players in the form of
prizes. Since its inception in 1985, the Lottery has contributed more than $19
billion to California schools out of total sales of more than $52 billion.
Retailers win too, earning $3.3 billion in compensation since 1985.
The GFOA is a nonprofit professional association serving
approximately 16,000 government finance professionals with offices in Chicago,
IL, and Washington D.C. SOURCE: California
Lottery.
Iowa Lottery
CEO Dr. Ed Stanek Announces He Intends To Retire In October
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| Dr. Ed
Stanek |
DES MOINES, Iowa, USA
(September 10, 2007) -- Iowa Lottery CEO
Dr. Ed Stanek announced during
Monday’s Iowa Lottery Board meeting that he intends to retire on Oct. 31.
Stanek has led the Iowa Lottery since its start in 1985 and has worked in state
government for 35 years. Stanek, 61, released the
following statement regarding his retirement: “Over the past 35 years I’ve had the privilege
of serving four Iowa governors in various cabinet capacities. Along the way,
I’ve helped the state address some of its biggest challenges.
“During the outset of the environmental movement I
was director of major environmental programs in Iowa; I led the state’s
energy policy agency during the Arab Oil Embargo; and led planning and
programming in the governor’s office during years of financial and farm
crises. “Two governors appointed me as
science advisor and I served on councils and task forces regarding technology,
telecommunications, the economy, job training, business, criminal justice and
natural resources among others.
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“For the past 22
years, I’ve thoroughly enjoyed providing Iowans with entertainment as CEO
of the Iowa Lottery. Iowans made their pro-lottery feelings known many years
ago when they cast their votes to change the state’s constitution to allow
a lottery. It has been my pleasure to design many of the lottery games that
have met the public’s demand since the lottery’s start in 1985, all
with the highest degree of integrity and accountability.
“I’ve been lucky enough to win the highest
awards from a number of prestigious institutions and have been president of the
most prominent national and worldwide lottery organizations. My staff and I at
the Iowa Lottery have raised more than $1 billion for state programs. And, as
one of the inventors of the Powerball game, I’ve had a small hand in
raising billions of dollars for other states as well.
“Today, I am the longest-serving lottery leader in
the world. My signature is on hundreds of millions of official state documents
that are otherwise known as lottery tickets. “Having been a workaholic all my life, my family has
convinced me to try the cure: retirement. “I look forward to the new
challenges I find in retirement and eagerly await my first opportunity to see
the industry from the other side as a customer of the Iowa
Lottery.” SOURCE: Iowa Lottery.
BCLC Reports on Implementation of Ombudsman
Recommendations and Player First Program
RICHMOND, British Columbia, Canada (September 12, 2007) --
Today, British Columbia Lottery Corporation
(BCLC) released a status report on its progress in implementing the May
29th recommendations of the BC Ombudsman concerning lotteries, and on its
Player First plan which will bring BCLC to the forefront of the lottery
industry in player protection. BCLC had committed to reporting quarterly on its
progress. "We are currently working on more than
50 separate projects that are based on the Ombudsman's recommendations and our
Player First commitments," said Dana
Hayden, BCLC President & CEO. "We have made significant progress
toward implementing the Ombudsman's recommendations."
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With greater focus on the
player, lottery retailers are making changes to ensure lottery products are
purchased and validated with integrity. From adopting a new Lottery Retailer
Code of Conduct and fully implementing a new "No Play at Work" policy to
putting in practice improved validation procedures, retailers are working to
reinforce new customer-service standards. More is
also being done to provide lottery players the information they need to verify
whether their tickets are winners or not. Player-facing display monitors are
now locked down in place so that they can not be moved, self-serve Check-a
Ticket (CAT) terminals are now available at most lottery retail locations and
display the actual prize amount, and a new winning jingle plays louder and
longer than the former version. BCLC has made changes
such as improving its customer call and complaint tracking system, ensuring
that all retailer prizes of $1000 or more are claimed at BCLC offices so that
they can be interviewed to confirm they are the rightful winner, and
introducing a progressive discipline policy that can be used of if the actions
of a retailer have undermined players' security or the integrity of lottery
games. "British Columbians should feel confident
that, together with our retailer partners, BCLC is doing everything we can to
create a lottery system that sets new standards for gaming integrity," added
Hayden. "Through Player First, BCLC is making even more improvements than
recommended by the BC Ombudsman last Spring." A
copy of BCLC's first Player First Quarterly Report, along with the status of
each of BCLC's responses to the Ombudsman's recommendation is available at
www.bclc.com/playerfirst. The program was announced on May 29, 2007 following
the release of the BC Ombudsman's report on the lottery corporation.
British Columbia Lottery Corporation is a Crown
Corporation reporting to the Minister of Public Safety and Solicitor General
through a Board of Directors. Its mission is to provide high-quality gaming
entertainment in a socially responsible manner for the benefit of all British
Columbians. SOURCE: British Columbia Lottery
Corporation. CONTACT: Robin Cook, BCLC Corporate Communications Officer, (604)
247-3004 or Cell: (604) 809-3623, Email: rcook@bclc.com. 
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