No Lottery in Karnataka, India, for Sure
The Karnataka, India, government on March 16 announced its intentions to abolish all types of lotteries in the state, beginning the next financial year, and declare the state a "lottery-free zone." Deputy Chief Minister B S Yediyurappa said in his 2007-08 budget proposals that lotteries, including paper and online, should be discontinued in the interest of society and the poor, despite the fact that it would result in a loss of about US$5.8 million to the state. But the loss would be made up by strengthening tax collection measures. Notwithstanding the impending lottery ban, players can reportedly continue to buy lottery tickets of any state or country via the Internet using a pre-paid debit card system. The cards were introduced for people who did not want to use their credit cards online and can be used to purchase any good or service. Using the card reportedly bypasses the Karnataka government's ban because the transaction is not made in Karnataka.
No Lottery in South Africa, for Now
The South African Lotto on Sunday was temporarily suspended by order of the government after a high court in Pretoria ordered a review of the licensing process. Current South Africa National Lottery license holder Uthingo, which would have relinquished its reigning title to competitor Gidani at midnight on March 31, won a court dispute on March 5 that may result in it retaining its position. However, now no one is operating the lottery. The Pretoria High Court found the National Lotteries Board didn't complete its investigations into the operators. Judge Willie Seriti overruled Trade and Industry Minister Mandisi Mpahlwa's decision in October 2006 to award the lottery license to Gidani because the National Lotteries Board had, according to Seriti, failed to investigate the shareholders of both Gidani and Uthingo. Two members of the African National Congress national executive committee, Chris Nissen and Max Sisulu, were among Gidani's shareholders. But as it turned out, one of Uthingo's shareholders was Education Minister Naledi Pandor.
Big Year for Ireland National Lottery
Ireland's National Lottery sales increased to their highest level in 15 years to a record 679.1 million euros in 2006--an increase of 10.2 percent over 2005. In its annual report, released on March 8, the National Lottery said it paid out an average of 80,000 prizes daily at an average of 362 euros, a prize increase of 11.5 percent. The company also paid out 217.5 million euros to good causes in 2006--7 percent more that in 2005.
Fluxx Test
German gaming company Fluxx AG is extending its partnership with discount drugstore SCHLECKER, through which customers can currently purchase lottery tickets online. Fluxx is now offering tickets at 400 SCHLECKER retail stores in the Krefeld region. If the test proves a success, the technology will be installed at all 14,000 SCHLECKER retail outlets throughout Europe.
Indiana Lottery Privatization Approved by Senate
The Indiana Senate on Feb 27 voted 27-20 to let Gov. Mitch Daniels lease the Hoosier Lottery to a private company and use the proceeds to fund life-sciences research and create scholarships. The measure now moves to the House, where it is expected to face opposition from Democrats who have been critical of privatization proposals and who included a provision in their budget that would prevent the lottery lease. House Bill 1009 proposes to require legislative review for contracts that exceed $10 million. Under Gov. Mitchell's leasing plan, a private company would pay the state at least $1 billion up front and $200 million a year for 30 years for the right to operate the lottery. Supporters of leasing the lottery, however, say the privatized lottery would provide money to launch much-needed programs, such as education and research.
Enormous Potential in Privatized Lotteries
Christiansen Capital Advisors, LLC (CCA), an independent consulting firm specializing in the gambling industry, has released a report detailing the potential revenues in a privatized U.S. lottery market, which is being considered in four states. The report said the market is currently worth $203 billion dollars, just over half of the current federal deficit ($390 billion). CCA estimates that the privatized equity value of the states considering lottery privatization proposals, including Illinois, Indiana, New Jersey, and Texas, range from $3 billion to $13 billion, or a combined $32 billion. Furthermore, the 41 states that currently operate lotteries have an unrealized equity value of $202.7 billion, based on observed rates of gross gaming revenue to market capitalization in the privatized Greek lottery, OPAP, S.A, applied to current gross gaming revenues of these 41 U.S. lotteries, the report said.
Cheaters Cause Svenska Spel to Close Game
Swedish lottery operator Svenska Spel is closing its Limbo game after learning organized groups were cheating, winning hundreds of thousands of dollars and making it practically impossible for small players to win, according to The Local. The game, launched in January, offers prizes of up to $14,000. The object of the game is to put money on the lowest unique number between 1 and 99,999, betting no more than $8. However, some players had been reportedly working together to guarantee winnings of up to US$13,000 at a time, ensuring that small players had little chance of winning. Communications Director Andreas Jansson told the paper that the closure of Limbo would cost the company US$14.3 million a year.