Racing and lottery technology supplier Scientific Games and games designer GameLogic have formed a joint venture to develop Internet games. The two U.S.-based companies last week announced the signing of a letter of intent with the goal of creating "a compelling portfolio of Web-enabled interactive games."
Few details have been disclosed, but GameLogic's CEO, Steven N. Kane, said the signing was a watershed moment for both companies.
"This is our inaugural deal with the lottery space," Kane explained, "and we couldn't be more pleased to have a partner like Scientific Games to go into the space with us."
He added, "We will work in tandem with Scientific Games, and GameLogic will go to new places because of them. With a little bit of bragging, I think that we can take them to new places as well."
GameLogic, which designed games for Harrah's online gaming site (among others), will provide its proprietary HomePlay service for use as a component within Scientific Games' Internet Lottery Gaming Service. The Web-enabled platform will transform and extend Scientific Games' library of lottery brands, which include Pac-Man, Hold'em Poker and others. Scientific Games will offer the new content in both instant and online formats to lotteries throughout North America.
Steve Saferin, president of Scientific Ventures, a business unit established in 2003 to ensure the success of Scientific Games' next generation of lottery products, said the deal gives Scientific Games a valuable partner in the Internet space.
"This is another phase of an evolutionary process that will allow our lottery customers to reach beyond their core player base to attract the growing number of next-generation adult consumers who enjoy the visually engaging dynamics of interactive environments," Saferin said. "We are excited to work with a strategic e-business partner with such tremendous experience, and feel our industry experience combined with GameLogic's HomePlay service and technical expertise will propel our Web-enabled interactive product offerings to ever-higher, more exciting levels."
Kane added that the timing of the partnership is ideal.
"We will be able to bring some new products to market," he said. "I think the market is ready, willing and able to embrace the Internet and consumer demand is clearly there as well."
Kane said the deal could open doors for the lottery industry.
"We are standing at the edge of an exciting new era for lotteries and players alike," he said. "Together with Scientific Games and the lotteries, we hope to play a major role in helping shape that future."
The joint venture is a big step for Scientific Games, but it's not the company's first experience in the Internet space. Through its wholly owned subsidiary, MDI, Scientific Games has provided Internet support services for lotteries since 2001. MDI provides its popular Second Chance Bonus Zone service to 10 U.S. lotteries. It has also developed and managed more than 30 Web sites enabling lotteries to offer players a secure optional method of entry into second-chance drawings.
Scientific Games also provides a variety of Web-enabled solutions for a number of European lotteries through its enhanced AEGIS Multi-Channel System.
No timetable has been set for when the Scientific Games/GameLogic games will be brought to market.