I-Lottery Update - May 2005

4 May 2005
US States Looking to Bring Lotteries Online

Several U.S. states are considering selling lottery tickets on the Internet, and one of them could pass a bill within months, signaling a shift in philosophy from gaming jurisdictions in the United States. The legislatures in Illinois, Texas and Georgia are all considering bills that would allow Internet lottery sales. The Georgia bill passed in the House but is on hold in the Senate because the legislature is in recess until January 2006. The Texas and Illinois bills have passed in their respective Houses and both await committee hearing in their respective Senates. Proposed laws in all three states would restrict Internet lottery sales to state residents, but Internet lottery sales are expected to spread quickly to other states if the practice proves popular.

SGC Wins Spanish Contract

Scientific Games Corporation announced in April that it has won a contract to provide full lottery facilities management services for Loto Catalunya. SGC will provide both online and instant lottery products and services starting Oct. 22, 2005. The contract is valued at $37.3 million over the initial term of eight years and contains an option for a two-year extension. Loto Catalunya recorded total lottery sales of approximately $92 million in 2004.

Norwegian Lottery Releases 2004 Results

Norsk Tipping, the Norwegian gambling lottery monopoly, is reporting annual revenues of NOK 9.8 billion (of which the firm's games revenues accounted for NOK 9.6 billion) for the year 2004. Lottery officials say the lottery will contribute NOK 1.2 billion to sporting and cultural activities in Norway. The operating result from Norsk Tipping's core business, exclusive to the VLT Division, showed an increase of 1.7 percent over 2003.

Intralot Strengthens Global Presence

Intralot Chief Executive Constantinos Antonopoulos told shareholders at the company's annual meeting last week in Athens that the company now has a presence in the five major continents. Antonopoulos said the company has achieved massive global growth by embracing technology. He also said the company increased its share in the global market in 2004 by targeting an international population and relying on a solid customer base of 24 gaming organizations posting sales of $6 billion.

Hungary not Selling off Lottery. . . Yet

Hungarian Prime Minister Ferenc Gyurcsany is trying to extinguish rumors that the country is looking to privatize its national lottery. Gyurcsany told reporters in April that high-ranking government officials decided not to privatize three major state-owned companies, including the state lottery. "This may not be the best time" to sell Szerencsejatek Rt. (the Hungarian gambling monopoly), he said. He added that the companies are not ready to turn in performances as strong as publicly listed or privately owned companies.

Jail Time for UK Lotto Winners

Two British lottery jackpot winners were jailed for different crimes after appearing at the same court last week. A judge told Surinder Singh, a 53-year-old drug addict and dealer, that he was "not at all persuaded" that the £2.1 million the chip shop owner had won on the National Lottery would ensure he kept out of trouble in the future and jailed him for nine months. Less than two hours later, Melvyn Howlett, a 45-year-old businessman who won £1.2 million, was sentenced to three months by a different judge for trying to smuggle 14,000 pouches of tobacco into the country.

Global Lottery Corp. Gets Marketing Help

Global Lottery Corporation has announced a Web marketing deal with Ablaze Technologies Inc., which will launch Global Lottery Corporation's Web site and assist the company in broadly expanding its public reach via the Internet.