Turnover at German Totoblock Continues to Fall
The Deutsche Lotto-und Totoblock (DLTB), a cooperation of all the 16 German state lotto and toto companies, reportedly saw a further fall in turnover in 2005. According to German business newspaper Handelsblatt, turnover for the Block fell from 8.4 billion euro in 2004 to 8.1 billion euro in 2005, a drop of 4 percent. Turnover has dropped every year since 2002. This is in strong contrast with the results of Germany's commercial operator, BetandWin, which reported turnover of 254 million euros for the third quarter of 2005--a 165 percent improvement compared to the third quarter of 2004. Oddset, a part of the German Block, is one of the six official suppliers of the FIFA World Cup in Germany. Above that, a percentage of the profit of the Block goes to the organization of the WC Football. But with those financial results, it seems there will be a loss for the organization. The DLTB, a member of the European Lotteries, was founded in 1955. The Block started with Internet betting in 2000.
New Zealand Gambling Spend Decreases in 2005
Spending on the main forms of gambling in New Zealand--racing, poker machines, casinos and lottery tickets--fell 0.6 per cent in 2005 to NZD$2.02 billion (US$1.4 billion) down from NZD$2.03 billion (US$1.4 billion) in FY03-04. This is only the second time in 25 years that the region's gambling turnover has fallen. Figures released Jan 25 show one of the steepest falls was in casino gaming, where spending fell 2.5 per cent to NZD$472 million (US$319 million) for the year ending in June. Lotteries Commission products dropped by 0.7 per cent and non-casino gaming machines by 0.8 per cent. The only gambling sector to grow was racing and sports betting, which saw a 3.3 per cent increase. The Racing Board said Internet betting on the TAB website grew 19 per cent from 2004.
Lottamatica and GTech Create Juggernaut Company
Italian lottery operator Lottomatica announced Jan. 10 a bid to take over U.S. gaming technology provider GTech for $4.8 billion in cash. Lottomatica's largest shareholder, publisher De Agostini, has agreed to pay $0.35 per GTech share in a deal that would create one of the largest lottery operations in the world. If it goes through, the transaction will create a company with 6,300 employees and operations in over 50 countries and will be financed by Lottomatica's $400 million in cash reserves, a $1.7 billion capital increase, a $900 million bonds issue and a $2.3 billion loan. Upon completion of the deal in mid-2006, GTech CEO Bruce Turner will take over as head of the new company, and Lottomatica Chairman and CEO Rosario Bifulco will step down. GTech will continue to operate as a separate entity within the group…Three days later after the acquisition announcement, shares in the new U.S./Italy Lottomatica combination rose a further 5.49 percent in Milan to close at 34.22 euros. They were boosted, in particular, by Euromobiliare's decision to raise its recommendation on them from "reduce" to "accumulate," with a target price of 34.5 euros in response to the news that Lottomatica is to acquire U.S. rival GTECH for 4 billion euros. Investors were also heartened by Lottomatica's announcement that the entity resulting from the merger with GTECH can look forward to a 2007 EBITDA of 800 million euros and turnover of 2 billion euros.
Three Companies Seek OPAP's Stihima Tender
Greek lottery operator OPAP reported in January that three gaming companies--lotteries solutions providers Intralot and Scientific Games Corp, and gaming technologies company Gtech Global Services Corp Ltd.-- have entered bids to provide new computer betting terminals and software for the company. The process is expected to take up to two months, and the project is expected to begin in 2007 at the earliest.
China LotSynergy Makes Two Acquisitions Totaling $US129 Million
Hong Kong-based lottery ticketing systems provider China LotSynergy made two acquisitions in January totaling over HK$1 billion (US$129 million). The first was a HK$204.5 million (US$26.3 million) purchase of a 90 percent stake in British gaming systems company Octavian International and the second was a HK$980 million (US$126 million) purchase for a 50 percent stake in Corich International, an investment holding company with interests in a mainland supplier of video lottery terminals. China LotSynergy entered the lottery ticketing systems market in the mainland only last June, through a HK$180 million (US$23.2 million) joint venture with Australian casino operator Tabcorp Holdings, and has since increased its share value.
Scientific to Produce Celebrity Poker Showdown Lottery Products
MDI Entertainment, a wholly-owned subsidiary of Scientific Games Corporation, has acquired a lottery license for Bravo TV's Celebrity Poker Showdown through an agreement with Universal Studios Consumer Products Group. Prizes include trips to a live taping of the show in Las Vegas and Celebrity Poker Showdown-branded merchandise packs. MDI also has agreements with the World Series of Poker and the World Poker Tour.
New Officers at Intralot
Intralot, a supplier of integrated gaming and transaction processing systems, last month appointed Mark Michalko as President and Tim Groth as Vice President of Product Development of Intralot's Asia Pacific Division. Michalko, a 29-year veteran of the lottery industry, serves as both Executive Director of the California State Lottery and as CEO of International Lottery & Totalizator Systems. Groth has been Vice President of Technical Operations for International Lottery and Totalizator Systems in the U.S. for the last 11 years.
UK Government to Host International Summit on Internet Gambling
The British government has announced plans to host an international summit on Internet gambling later this year. The goal is to bring regulators and policymakers from around the world together in the hopes of finding common ground and possible solutions to shared problems with what is really a global phenomenon.