Camelot to Offer Internet Sales of Lotto Tickets

6 March 2002

GTECH and Camelot are teaming up to put the United Kingdom's National Lottery online.

The Rhode Island-based lottery services company announced Tuesday that it has licensed two new software applications to Camelot that will allow users to play the lottery via the Internet.

The new technology will be integrated with Camelot's current AlphaGOLS system, which was also supplied by GTECH. Interactive channel architecture and a baseline transaction engine powered by GTECH's latest Enterprise Series lottery management system will allow the National Lottery to sell instant, or scratch-off, tickets over the Internet by the end of 2002 and online tickets for the lottery's main games by mid-2003.

A spokeswoman for Camelot said while she can't reveal too many details about the Internet-based scratch tickets, it appears players will actually be able to "scratch off" the tickets over the Internet.

Camelot on Jan. 27 received its second license to operate the National Lottery. The license expires in 2009. The first license given to Camelot lasted from 1994 to 2001, during which time Camelot was not allowed to offer its games online. The spokeswoman said during the evaluation process for the second license, Camelot was asked if it could make tickets available on the Internet.

"In the invitation to tender that went out for the second license, our regulator asked us to look at ways of providing tickets through the Internet for the second license," she said.

As part of a technology transfer and training agreement, GTECH will allow Camelot exclusive rights to operate and modify the software until the second license expires on Jan. 31, 2009. GTECH will train Camelot staff on lottery systems and software development and design.

GTECH expects to receive $40 million in fixed fees during the course of the license as well as variable fees from sales.

Howard S. Cohen, president and CEO of GTECH, said his company is pleased to extend its relationship with the National Lottery, which has raised more than £36 billion for charity since its start in 1994.

"GTECH is proud of the role we have played with Camelot in making the National Lottery a national institution, and we are delighted to continue our long-standing partnership and have the opportunity to offer our latest interactive solutions to Camelot," he said.

The Camelot spokeswoman said the Internet sales option could help draw more customers to the lottery. The lottery had lower-than-expected sales in 2001.

"I think we're always looking at new games and new ways of playing," she said. "Obviously this will be part of our overall plan to ensure that we make the maximum amount of money for good causes in a socially responsible way during the second license."