I-Lottery Update - July 2004

9 July 2004
VLTs Ruled Illegal in New York

An appellate court in New York ruled Wednesday that video lottery terminals are unconstitutional, a decision that casts a doubt on the future of a massive new gaming facility in Monticello. Anti-gambling forces filed the suit, arguing that the VLTs are being used to bail out the harness racing industry and that the devices violate New York law. The ruling does not, however, apply to Indian casinos, which the court says are not held to the same standards as private gambling operations. The future of casinos and tracks with VLTs is unclear. Neither lottery officials nor racing operators are commenting on the case.

Camelot Selling EuroMillions Tickets Online

The increasingly popular EuroMillions lottery game is now available via interactive TV and Internet platforms. Camelot, a EuroMillions partner and the operator of the U.K. National Lottery, announced last week that tickets are available for purchase through the National Lottery site as well as via the Sky Active interactive TV platform.

EuroMillions allows players to pick their own numbers or select the "Lucky Dip" option for any EuroMillions draw up to four weeks in advance. Players are automatically informed when they win.

The Web site is the latest part of Camelot's strategy to bring its lottery games to interactive channels. Its Lotto game launched on Sky Active in April, while Lotto, Daily Play and interactive scratch cards went online last year.

Camelot says online registrations now number more than 10,000 per week.

India Moving Closer to Ban Online Lotteries

Looking to follow through with campaign promises, congressional leaders in India announced plans to lay the groundwork for banning online lotteries. Government officials argue that an increasing number of online lotteries and other illegal betting operations are crippling the government-run lottery. Karnataka Chief Minister N. Dharam Singh said an official ban is one of the legislature's main priorities this summer; the session is scheduled to start in mid July. Singh expects to have the legislation in place by month's end and its passage completed by the end of August.

VLTs Launched in Czech Republic

SAZKA, the lottery operator in the Czech Republic, has rolled out a new central lottery system for interactive video lottery terminals. Plans call for the system to be fully in place by the end of this month, with proceeds generated from the games to be used for the repayment of recently issued bonds relating to the funding of the construction of the multipurpose sports SAZKA Arena--the scene of the Ice Hockey World Championship 2004. The VLTs had been in development since November 2001. SAZKA gained permission from the Ministry of Finance of the Czech Republic in August 2003 and started pilot operation of the gambling club Sport & Fun City in the Commercial Centre Nový Smíchov in Prague in October 2003. The company plans to have hundreds of interactive video lottery terminals in service by the end of 2004 and 10,000 in place within two years.

New Features for Singapore Pools Lotteries

Hoping to attract younger customers, Singapore Pools has introduced new features to its interactive betting platform. Users can now make cashless payments for its 4D, Toto and Singapore Sweep lotteries. Players also have a chance to win an adventure trip (luxury cruises, wildlife expeditions, etc.) every month . Those who win the trips can opt for cash, but the amount they receive is less than the value of the travel package. The changes follow an increase in the lottery's top prize from $1.5 million to $2 million in February. The new features will undergo six months of testing.

Hong Kong Company Invests in Online Lottery Enhancement

Hong Kong real estate investor Tem Fat Hing Fung, through a holding company, will invest in a joint venture with a state-owned publisher to develop computer-related services for online lotteries. The company said it has teamed up with state-owned Gong Yi Shi Bao She, which disseminates lottery news and results. Tem Fat's 51 percent-owned investment vehicle, Keung Tai Holdings, will inject HK$19.7 million for a 70 percent share in the joint venture. The venture will concentrate on developing computer hardware, software, networking system and integration for an "instant result type" online lottery.