I-Lottery Update - February 2005

6 February 2005
Greek Lottery Profits Soar

Greek lottery operator OPAP reports that profits for 2004 were up 83 percent from 2003. Anestis Filipidis, president of OPAP, said the lottery had sales of more than 3.2 billion euro in '04. OPAP reported full year net profit of 235.1 million euro on revenues of 2.28 billion in '03.

China to Host Lotto Expo

Beijing will host the first International Lottery Technology and Equipment expo April 2-4. China is a huge and flourishing lottery market; the total sales of lottery tickets in 2004 could reach 38 billion yuan ($4.6 billion), according to industry reports. In hosting the show, China is trying to smooth the development of the lottery market, which was recently approved by the Ministry of Civil Affairs and the Ministry of Commerce. The Lottery Committee of the China Social Work Association will sponsor the expo.

EssNet Lands Contract in Hungary

EssNet last week announced three new contracts with Szerencsejáték Rt, the national lottery in Hungary. Under the terms of the contracts, EssNet will deliver 950 E5 terminals, an event ticketing system and an on-line instant scratch-ticket platform. The new games are expected to launch during the second quarter of 2005.

UK National Lottery License under Review

Officials with the National Lottery Commission in the United Kingdom asked potential bidders last week to come forward with input to discuss the structure of the competition for the next National Lottery license. The commission published a paper, "OEA Lottery for the Future," to begin debate on what form the process should take. The commission is hopeful the paper will get those involved in the process to look at important issues, such as creating a level playing field, improving the structure of the competition itself and ensuring a realistic balance between returns to good causes and incentives for operators.

Wireless Trial for Camelot

Comtech Holdings Ltd., a machine-to-machine solution provider, has announced a pilot trial of a wireless display messaging solution for Camelot, operator of the U.K. National Lottery. The new solution is designed to encourage sales in the Lotto and EuroMillions games, which offer three jackpots wins each week. The piloted solution enables centrally controlled jackpot information to be communicated to automated electronic displays in the National Lottery retailers' stores. A 100-unit pilot system utilizing Comtech's wireless display messaging solution has been deployed in England.

Israel National Lottery Inks Deal with Multimedia Games

Multimedia Games announced that Mifal Hapayis, the operator of the Israel National Lottery, has selected it to provide an electronic instant lottery (EIL) system. The agreement marks Multimedia Games' entrance into the international lottery market. The group is selling Mifal Hapayis a complete gaming system, including central determinant system technology; management, test, monitoring and accounting systems; on-site training; game themes; and delivery of an initial 500 EIL point-of-sale terminals to be deployed at 150 retail locations throughout Israel.

Italian Official Warns Lottery Players

Italy's economy minister, Domenico Siniscalco, has launched an appeal to residents who frequently play the lottery to do so in moderation. Siniscalco told users that "the lottery is based on probabilities" and that if Italians were going to play they, should "play, but play smartly, with moderation." Last year, 30 million Italians played the national lottery, spending more than 30 billion euro on tickets.

Intralot and Hilton Team Up

Intralot and the Hilton Group announced a deal that will incorporate lottery offerings sold through the Ladbrokes betting brand. Intralot offers technology for lotteries with a wide variety of games including numerical, instant and video lottery applications. The alliance will offer extensive synergies for both companies and plans to pursue further opportunities in the global gaming market. The two parties have agreed to cooperate on projects concerning state lottery privatizations, to participate in tenders issued by state and private lotteries and to negotiate directly with potential clients.

Record Results for French Lottery

Francaise des Jeux (FDJ), operator of the French National Lottery, is reporting record growths for the year 2004, and its chairman, Christophe Blanchard-Dignac, attributes the success to the EuroMillions international European lottery. The group reported average growth of 1.9 percent for draw games, and 2.3 percent growth for scratch-card games, compared to a 2.6 percent drop in 2003. Blanchard-Dignac forecasts growth of between 2 percent and 3 percent for 2005.

Nigeria Could Get Mobile Lottery Games

According to a published repot, Nigeria could be on the verge of introducing mobile lottery games. Officials with Fortune Games Limited are rumored to be close to launching a mobile phone lottery in the African country. The system would be designed for GSM-enabled phones. As part of the plan, 10 percent of Fortune Games' gross earnings would be committed to educational development of the nation.