I-Lottery Update - August 2007

9 August 2007

Camelot Retains Position as UK Lottery Operator

The U.K. National Lottery Commission said that National Lottery operator Camelot will retain its license until 2019. Camelot beat out India-based operator Sugal & Dumani (S&D) to win the ten-year contract. Should Camelot and the commission fail to reach terms, S&D may, as reserve bidder, assume control of the license, the commission said. In a separate announcement, the commission said that Lottomatica and its Gtech subsidiary had agreed to supply technology for Camelot in an effort to modernize the lottery.

Much Ado about OPAP and Intralot

Lottery operators OPAP and Intralot recently announced a three year agreement in which OPAP will acquire a number of computer centers and game source codes from Intralot, as well as receiving central hardware updates that will expand OPAP’s promotional and operational capabilities in exchange for $96.5 million. OPAP hopes that the partnership will not only lead to the success of the new stihima game, but also a constant transference of know-how from employees of Intralot to those at OPAP.

Meanwhile, Gtech and Scientific Games have filed court challenges in Greek and European superior courts to oppose the contract Intralot was recently awarded by OPAP. The companies claim that they were not informed of OPAP's intentions to award the contract to Intralot, and were caught off-guard, particularly due to the fact that both had been bidding to provide the same services for the last 18 months. Both were officially in competition with Intralot and claim, according to the process, that they should’ve been informed of the cancellation of their tender in the process.

Scientific Games Acquires Half of Chinese Firm 568

Scientific Games has agreed to acquire a 50 percent stake in Guard Libang, the China-based instant lottery ticket cooperative services provider, for an estimated $27 million. Guard Libang is an indirect subsidiary of Hong Kong-listed Rex Capital Financial Holdings. Scientific Games said it expects the acquisition to be neutral to 2007 earnings though accretive in 2008.

Camelot Xtra

U.K. National Lottery operator Camelot has reportedly inked a deal with television content provider Top Up TV to launch its National Lottery Xtra service. The service will offer a behind-the-scenes look at the "good causes" which have benefited from the funding, news updates and other services. Top Up's deal with Camelot will conclude in January 2008.

Maltese Licensing Delay

Malta's Lotteries and Gaming Authority (LGA) announced in July that due to an "unexpected" influx of applications for new licenses, it would not guarantee that applications would be processed within the normal timeframe. The LGA added that applications received after July 9 could be processed as late as October.

Lottomatica to Run Italian Lottery

Italian lotteries operator Lottomatica is reportedly preparing to bid for the right to manage Italy's lottery, SuperEnalotto. Bids must be tendered to the Monopoli di Stato by the end of September.

SA Lottery Up and Running Again Soon

The South African National Lottery, put on hold in March, is reportedly on the verge of starting up again within the next two weeks.

Trade and Industry Minister Mandisi Mpahlwa will announce the name of the preferred bidder to run the operation in Pretoria within days, according to local newspaper Sapa. The launch date will depend, however, on the outcome of negotiations between the new operator and the National Lotteries Board.

Gidani was initially awarded the contract, taking over from Uthingo from April 1, 2007, but the lottery was put on hold in March pending an investigation into the licensing process.