A New British Lottery Is on the Horizon

6 March 2000
eLot Inc. and Global Technologies Ltd. (GTL) have partnered to introduce a new charitable lottery--the UK Charity Lottery--to the $12 billion U.K. lottery industry. The new service, authorized by the Gaming Board for Great Britain, will benefit thirty-eight British charities..

eLottery , a subsidiary of eLot, will handle the retail sales of tickets and will receive a commission for every ticket sold. GTL Management Ltd. will operate the lottery. International Lottery and Totalizator Systems, Inc. will supply hardware for land based ticket sales.

Ticket sales are scheduled to begin March 27, 2000, with Internet sales starting by summer. Tickets will be available on the Web at www.uklottery.com, www.ukdailynumber.com and www.LotteryFreeWay.com. Only residents of sold to residents of England, Scotland and Wales--a combined population of about 60 million--will be eligible to buy tickets.

"We anticipate that the introduction of Internet lottery sales in Great Britain will be a great success," Charles Degliomini, eLottery senior vice president of sales and marketing, said. "Importantly, this contract will allow us to demonstrate just how eLottery experience, technology and know how can make just about any high traffic web site Internet lottery ticket enabled."

The initial lottery game will be Great Britain's first pick three game, "The Daily Number."

Additionally, eLot and GTL signed a strategic agreement to facilitate and develop e-commerce sales and technologies of lottery and other governmental authorized gaming related products. The agreement includes initiatives for marketing Internet lottery sales distribution to other government jurisdictions; possibly using eLot gaming technology for GTL's affiliate, The Network Connection Inc. for use in its cruise ship, hotel and train markets; and jointly developing lottery applications using wireless technology.

"This alliance brings together two companies that have made significant progress in their respective gaming activities," GTL Chairman and CEO Irwin Gross said. "We believe that by working closely together, our companies will be able to offer consumers, government-authorized and -regulated lotteries, and other market participants more tailored, stimulating, entertaining and technically sophisticated products. "We expect that the Internet platform eLot will provide to GTL will enable our company to respond more fully to many of the gaming-related business opportunities presented to us by allowing us to apply innovative Internet approaches to such opportunities."

Under terms of the agreement, eLot will issue a warrant to GTL for the purchase of one million shares of eLot's common stock at an exercise price of $6.00 per share, which is exercisable for six months after eLottery, Inc. has begun selling online tickets in the UK.