I-Lottery Update - May 2007

4 May 2007

Karnataka Lottery-free Zone

The Karnataka, India, High Court on April 17 upheld a March 27 notification by the Karnataka government banning lotteries in the state. Deputy Chief Minister B. S. Yediyurappa said in his 2007-08 budget proposals--announced in March--that lotteries, including paper and online, should be discontinued in the interest of society and the poor. The ban will begin in the next financial year.

However, players can reportedly continue to buy lottery tickets from any state or country via the Internet using a pre-paid debit card system. Using the card reportedly bypasses the Karnataka government's ban because the transaction is not made in Karnataka.

South Africa Still Without Lottery

South Africa is still in the process of finding a new national lottery operator after suspending the lotto at the end of March to review the licensing process.

According to South African Press Association, a Department of Trade and Industry (DTI) spokesperson said DTI Minister Mandisi Mpahlwa would make an announcement on the new operator soon, but it is understood that the announcement has been postponed until the middle of June to allow more time to ensure the selection procedures were properly executed.

Jamaican Lottery Gets Refurbished

The Jamaican Betting, Gaming and Lotteries Commission (BGLC) will be undergoing a restructuring so it can meet the monitoring requirements of the betting industry, according to a Finance Ministry report released in April. The reorganization will be carried out in phases over a period of three to six months. The BGLC said it expects a continued growth in the number of gaming machines this year, and it is predicting revenues to increase by 16 percent to $315 million during FY 2007.

Tatt's Expands Gaming Empire

Australian gaming giant Tattersall's Ltd. has purchased Queensland national lottery operator Golden Casket for $422 million. Tattersall's CEO Dick McIlwain said Golden Casket was a logical fit with Tattersall's lotteries businesses in Victoria, Tasmania, the Northern Territory and the Australian Capitol Territory.

Under the deal, Golden Casket's head office will remain in Queensland where Tattersall's will operate Golden Casket's lottery business until 2072 (under an exclusive license that cannot be renewed until 2016). Golden Casket's 200-plus staff will be retained by Tattersall's, with no forced lay-offs guaranteed for at least three years.

The acquisition is subject to Queensland regulatory and legislative approval.

Scientific Games Launches Chinese Venture

Scientific Games has announced a joint venture with Chinese technology company Inspur to launch instant tickets in the Shandong Province of China. "We are very enthusiastic about the potential for the Chinese lottery market, especially instant tickets," said Scientific Games CEO Lorne Weil. "Inspur is a great asset to us as a local partner, with a robust history in Shandong, and we look forward to launching Shandong as a model for instant ticket sales throughout the PRC."

In related news, the company has acquired instant lottery ticket manufacturer Oberthur Gaming Technologies (OGT) for $100 million. "OGT has a strong international presence in Canada and Australia, two important gaming markets for Scientific Games," Weil said. In 2006, OGT reported revenues of approximately $140 million.