It's Good to Work for Camelot
U.K. National Lottery operator Camelot was lauded this month as one of the country's 100 best employers of 2007, finishing 13th on a list compiled by the Corporate Research Foundation. The report made note of Camelot's "open management style," specifically its role in "nurturing a friendly and vibrant atmosphere." The report also praised Camelot's promotion of flexible work practices, especially when juxtaposed with their efforts over the last two years to return the lottery to growth. "Revenues have moved from more than £4.6 billion in 2004, through £4.7 billion in 2005 to £5 billion in 2006," the report said. On a separate occasion, Camelot CEO Dianne Thompson was awarded the Chartered Management Institute's Gold Medal for her efforts in spearheading the longest period of growth in National Lottery history. Thompson commented that, while honored by the reward, the company was still "working hard to write a bid for the next lottery license." Thompson has been with Camelot since 1997.
Betex Increases Presence in China
Online gaming company Betex Group Plc. recently announced plans for further expansion into Chinese markets, after inking seven exclusive distribution agreements for its lottery software in the Hebei, Heilongjiang, Shaanxi, Fujian, Hunan, Guangxi and Jiangxi provinces. Betex CEO Peter Greenhill was optimistic about the company's "very promising" trading figures. "These new agreements expand our distribution network to 13 provinces with mature lottery markets, providing us with a presence in more than 40 percent of China's provinces," he said. Betex also reported that sales from distribution agreements have, to date, yielded in excess of £1 million from over 1,800 Chinese betting shops.
A Blow to Germany's Lottery Monopolies
Germany's Federal Cartel Office (FCO) ruled in late August that state lottery operators must allow a greater degree of competition from private companies and effectively relinquish their monopoly on the market. The FCO stripped 16 state lottery operators of their ability to place restrictions on the sale of tickets by way of commercial lottery agents at shops and gas stations. The ruling was made after state operators, represented by the German Lotto and Toto Group (DLTB), threatened to refuse bets placed via commercial operators at retail outlets: an offense the FCO ruled constituted a boycott. The DLTB appealed the ruling, arguing that increased lottery ticket availability would incite addiction among consumers. "Our mandate is to fight addiction to gambling and to channel peoples’ desire to gamble," said Horst Mentrup, head of the DLTB. Upon the announcement of the ruling, shares in lottery operation FLUXX climbed 38 percent. Other German commercial lottery operators, such as Faber, Tipp24 and Jaxx, reportedly stand to benefit from the ruling, as now they can offer lottery services in retail outlets. And while shares in Austria-based online gaming company bwin also climbed as the ruling was announced, Ulf Boege, president of the FCO, cautioned that its decision had no bearing on similar restrictions on sports betting by German state operators. "My opinion is that sports betting firms cannot invoke our decision," he said.
Germany's FLUXX to Study Problem Gambling
Germany-based gaming company FLUXX AG (FXG) plans to commission a study in September to assess the risks of addiction as they relate to playing lotteries. FXG claims that the study comes in response to the German Lottery and Pools Organization's (DLTB) contention of an Aug. 28 ruling by the Federal Competition Authority, which states that the DLTB may not boycott over-the-counter sales by commercial agents in supermarkets and filling stations. On the one hand, the DLTB contends that selling lottery tickets in this fashion increases the risk of addiction. On the other, FXG contends the DLTB has deliberately ignored studies which suggest that slot machine games--not lotteries--are more likely to encourage addiction and its resultant issues. FXG management board member Mathias Dahms said the DLTB, by contradicting existent evidence, "is trying to defend its monopoly with all manner of baffling means." Dahms also cited additional studies, compiled outside of Germany, which indicate that lotteries show little potential to foster addiction. "Only 0.2 to 0.4 percent of gaming addicts stated that lottery was the principal cause of their addiction," he said. "After 50 years of public draws of lottery numbers, it defies any scientific basis for the lottery companies now to be advancing the argument of addiction risks to justify their monopoly position."
Indian Operator to Bid for UK Lincense
India-based lottery operator Sugal & Damani (S&D) will bid against incumbent operator Camelot and Australian leisure company Tattersall’s for Britain’s lottery license, beginning in 2009. The Mumbai-based company submitted its preliminary proposal to the National Lottery Commission (NLC) for the license. The proposal reportedly highlights S&D's technical expertise. "We are in the process of finalizing our bid," said Chairman Sugalchand Jain. "While we are one of the top players in every form of lottery trade in India, what sets us apart is total control over technology that makes us confident to bid for the U.K. National Lottery," he added. Other groups in the hunt include Italy's Lottomatica and Greece's Intralot. Richard Branson's Virgin Group announced that it will not be making a third bid because it believes the process is heavily favored Camelot.
Done Deal for GTECH and Lottomatica
Italy-based lotteries provider Lottomatica completed its year-long acquisition of U.S.-based gaming technologies provider GTECH Holdings Co. (GHC), with the announcement coming on Aug. 30. The two companies reported that all conditions for the takeover had been met and that Lottomatica will pay GHC shareholders $35 per share cash, which will amount to $4.7 billion (on a fully diluted basis). The ordinary shares of GHC are no longer listed on New York Stock Exchange. Under the terms of the agreement, GHC will become a wholly owned subsidiary of Lottomatica; however, GHC will retain its name and headquarters in Rhode Island. Lottomatica will also assume GHC's existing $180-million debt.