Boss Mulls GEMed Bid Approach
Lottomatica subsidiary Gtech and Medstroms AB have made a public cash offer to acquire all outstanding shares of software developer Boss Media. Under terms of the offer, the pair – through a jointly-owned bid vehicle called GEMed – have offered SEK19 ($2.98) in cash per outstanding share, giving Boss Media an enterprise value of SEK 937 million.
Gtech president and CEO Jaymin B. Patel said, "The acquisition of Boss Media is an important element of Gtech's growth strategy. At the same time, we view ourselves as being the perfect partner for Boss Media in accelerating the roll-out of their cutting-edge systems for internet-based gaming, as we can offer a global market presence and a customer base consisting of a significant portion of Boss Media's targeted leads."
Medstroms is currently the largest shareholder of Boss Media with a 12.5 percent stake.
EGBA Files Complaint with EC over German State Treaty
Following the Jan. 1 enactment of the German Interstate Lotteries Treaty, the European Gaming and Betting Association has filed a complaint with the European Commission asserting that the treaty directly contravenes European law. "The German interstate treaty is incompatible with EU law, and its adoption has left us with no other choice but to make a formal complaint to the [commission]," EGBA Secretary General Sigrid Ligné said in a prepared statement. "We urge the commission now to fast-track our complaint and launch infringement proceedings against Germany."
ALC Looking to Beef Up Internet Offering
Atlantic Lottery Corp. -- which supplies lottery services to the Canadian provinces of Nova Scotia, New Brunswick, Newfoundland and Labrador and Prince Edward Island -- recently issued a request for information asking for help to "explore and consider a suite of Internet-based lottery products (including) instant win products, casual games as well as other popular games played by consumers on this online medium." Paula Dyke, a spokeswoman for ALC, told Newfoundland daily Western Star that ALC already promotes five online games on its Web site, and that the company is merely in an investigatory phase with regard to new games. "There might be new and exciting things that could replace what's there or we could add to it," she said. "But at this point we're looking to see what's out there."
Weak Projections for UK National Lottery
According to the Daily Mail, analysts are warning that ticket sales for the U.K. National Lottery could fall £500 million below expectations. The paper says that the lottery's organizer, Camelot, projected sales of between £10 billion and £15 billion over the course of its current seven-year license -- which expires in January 2009 -- but the actual figure could be as low as £9.5 billion. Quoting the U.K. National Lottery Commission's former Head of Communications Mark Slattery, the paper reports the shortfall would be "beyond embarrassment to the government." In August, the commission said that Camelot would retain its license until 2019. Camelot beat out India-based operator Sugal & Dumani to win the ten-year contract.
Unauthorized Online Lotto Sales a Concern for Chinese Authorities, Operators
In early January, China's ministries of civil affairs and finance, as well as its General Administration of Sports, issued a written statement prohibiting institutions from selling lottery tickets online, citing a growing concern about fraud and lack of regulation.
Chinese news agency Xinhua reported that those who had begun to sell lottery tickets online "prior to the issuance of the circular" will stop their activities with immediate effect or face prosecution and penalties.
According to the notice, all content must be free of violence, sex and gambling and cannot reveal state secrets or portray morally, socially or politically harmful situations.
Several companies that recently announced online lottery initiatives with counterparts in China said that they were halting operations pending more clarity on their overall legality following the statement.
Xinhua also reported that the sale of online lottery tickets has subsequently been banned in China and companies that have started operations could face prosecution.