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Vol. 29 No. 12-- Monday December 20, 2004
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  • GTECH Receives Instant Ticket Vending Machine Contract Extensions in Arizona and New Mexico. Full Story.
  • Texas Lottery Financial Reporting Garners National Accolades. Full Story
  • EssNet Interactive Signs Pilot Agreement with PAF. Full Story.
  • Ecolabelled Bet Slips and Game Event Programs at Norsk Tipping. Full Story.
  • Office of Fair Trading Issues Scam Warning. Full Story.
  • Texas Lottery® Revenue to State Tops $12 Billion. Full Story.
  • The First Internet Scratch Card in Estonia. Full Story.
  • JCM American Announces New Development Initiatives. Full Story.
  • GTECH Chosen by the State of Missouri for Seven-Year Integrated Services Lottery Contract. Full Story.
  • Scientific Games' European Systems Division Earns ISO 9001:2000 Certification. Full Story.
  • Instant Game 'Special 7' Will Hit The Whole Canadian Market In February 2005. Full Story

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GTECH Receives Instant Ticket Vending Machine (ITVM) Contract Extensions in Arizona and New Mexico

WEST GREENWICH, RI, USA (December 15, 2004) - GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has signed contract extensions with the Arizona Lottery and the New Mexico Lottery Authority to provide new products and continued services for the lotteries' Instant Ticket Vending Machines (ITVMs).

Arizona
The Arizona Lottery signed a three-year contract extension with GTECH commencing July 1, 2005. Under the extension, GTECH will upgrade approximately 150 existing 16-bin Expandable Dispensing System Quad Burster™ (EDS-Q) machines with 20-bin EDS-Q machines. GTECH will also provide 100 additional 20-bin EDS-Q machines bringing the total ITVM count in Arizona to more than 420. The 420 ITVMs will also be equipped with online connectivity by summer 2005. The Company will continue to provide the Arizona Lottery with hotline and field services, and software upgrades for the ITVMs.

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"GTECH is pleased to continue its longstanding relationship with the Arizona Lottery, helping to support the success of its instant-ticket sales program. By providing connectivity to the ITVMs, the Arizona Lottery and its retailers will be able to combine management reporting of both online and instant-ticket-vending activity for the first time," said GTECH President and CEO W. Bruce Turner.

Through its acquisition of Interlott Technologies, GTECH has provided ITVM products and services in Arizona since 1993. GTECH is also the online technology provider to the Arizona Lottery.

New Mexico
The New Mexico Lottery Authority signed a two-year contract extension commencing May 21, 2005, whereby GTECH will continue to provide hotline and field services, and software upgrades, at a reduced rate, for the 160 ITVMs currently leased by the New Mexico Lottery. "We are very pleased that the New Mexico Lottery continues to place its confidence in GTECH's ITVM products and services, and we look forward to being of service to them in the coming years," said Mr. Turner.

Through its acquisition of Interlott, GTECH has provided ITVM products and services in New Mexico since 1997. GTECH is also the online technology provider to the New Mexico Lottery Authority.

GTECH, a leading global information technology company with over $1 billion in revenues and more than 5,400 people in over 50 countries, provides software, networks, and professional services that power high-performance, transaction processing solutions. The Company's core market is the lottery industry, with a growing presence in commercial gaming technology and financial services transaction processing. For more information about the Company, please visit GTECH's website at http://www.gtech.com.

CONTACT: Robert K. Vincent, Public Affairs, GTECH Corporation, Phone: 401-392-7452.

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Texas Lottery Commission Financial Reporting Garners National Accolades

AUSTIN, Texas (December 15, 2004) -- The Financial Administration Division of the Texas Lottery Commission has been awarded the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA) for its Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2004. The prestigious national award is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government agency and its management.

"This recognition is a great honor for our agency and well deserved by our hard-working Financial Administration team," said Reagan E. Greer, executive director of the Texas Lottery Commission. "Their efforts are indicative of the commitment to excellence all of us share at the Texas Lottery."

According to a statement released by GFOA:

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"The Texas Lottery Commission CAFR has been judged by an impartial panel to meet the high standards of the program, including demonstrating a constructive 'spirit of full disclosure' to clearly communicate its financial story and motivate potential users and user groups to read the CAFR."

This is the second consecutive year that the Texas Lottery Financial Administration Division has been recognized by GFOA, a nonprofit professional association with offices in Chicago and Washington, D.C. GFOA serves approximately 15,000 government finance professionals.

For more information about the Texas Lottery® and copies of the agency's award-winning Comprehensive Annual Financial Reports, please visit the official Texas Lottery Commission Web site at http://www.txlottery.org.

The Texas Lottery supports public education by contributing to the Foundation School Fund.

SOURCE: Texas Lottery Commission media release.


EssNet Interactive Signs Pilot Agreement with PAF

STOCKHOLM, Sweden (December 10, 2004) -- EssNet Interactive AB has signed a pilot agreement with The Ålands Penningautomatförening (PAF), the largest gaming operator in the Baltic Sea, based on Åland, Finland. The pilot will take place at PAF’s International Casino in Mariehamn and the agreement includes games, gaming machines and a central system. PAF has identified the benefits with a next generation IVT system that has all the tools required for revolutionizing the gaming operation in the Baltic Sea.

The pilot agreement is for a period of six months. During this time, technical and financial requirements will be established for developing the installation of the system on board cruise liners. The first gaming machines will be in commercial operation in Q1, 2005.

"We believe that this kind of system solution is what we need in order to modernize and offer high quality entertainment for a broad, more demanding audience", says Karl Gustaf Pietilä, Vice President, PAF.

"EssNet Interactive offers a highly flexible solution that has been customized to the extensive requirements of the cruise line industry. The agreement with PAF gives us the opportunity to show how versatile our system and gaming machines are. We are delighted to have the possibility to further expand in the Nordic region together with PAF", says Jan Bohult, President and CEO, EssNet Interactive AB.

The Ålands Penningautomatförening (PAF), founded in 1967, is an association governed by public law, whose goal is to raise money for the public good by offering gaming to the public. PAF is, by the Provincial Åland Government, entitled to arrange gaming on Åland, on board ships and on the Internet. The gaming operation of PAF includes, among other things, service of slot machines, casino gaming, betting, bingo, lottery, tote betting and amusement games.

EssNet Interactive AB

EssNet Interactive AB is a joint venture between EssNet AB (55%), Boss Media AB (35%) and Tattersall's (10%). The company is focusing on the development and marketing of new generation, network based Interactive Video Lottery Terminal (IVT) systems.

Boss Media AB (publ) is one of the world’s leading suppliers of systems for digitally distributed gaming entertainment. Boss Media develops gaming system solutions for such distribution channels as personal computers, interactive video terminals, mobile phones and digital TV. Licensees are offered a customized gaming system, an integrated payment system as well as related services. The Boss Media share is listed on the O-list (Attract 40) of Stockholmsbörsen (Stockholm Stock Exchange). More information about Boss Media is available at www.bossmedia.se.

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EssNet AB
EssNet AB is one of the leading suppliers of on-line lottery systems, including integrated solutions for Internet, mobile telephones and interactive TV. Customers are located in Europe, the Middle East, South Asia, Africa, South America and Australia. For further information, please visit www.essnet.se.

For further information please contact:

PAF: Karl Gustaf Pietilä, Vice President. Phone: +358 18 24 212, E-mail: kgp@paf.fi.
EssNet Interactive AB: Jan Bohult, CEO. Phone: 08-702 57 00 or 0705-30 10 75, E-mail: jan.bohult@interactive.essnet.se.
Boss Media: Peter Bertilsson, CEO. Phone: 0470-70 30 01 or 0709-93 25 54, E-mail: pbe@bossmedia.se.
EssNet AB: Hans Vigmostad, CEO. Phone: 08-702 57 00 or 0708-12 84 50, E-mail: hans.vigmostad@essnet.se.


Ecolabelled Bet Slips and Game Event Programs at Norsk Tipping

Article By Bjørn Takle

President of WLA, Reidar Nordby jr. and The Norwegian Minister of Environment, Knut Arild Hareide.

NORWAY (December 10, 2004) -- Together with Stralfors, Norsk Tipping have ensured that all bet slips and event programs will be printed in an environmental-friendly way in the future. I hope that other organisations will follow Norsk Tippings example, said Minister of the Environment, Knut Arild Hareide.

The 'Swan ecolabel' is a visible proof that Strålfors production of coupons, bet slips and event programs gratifies various environmental demands. The 'Swan ecolabel' have certificated Strålfors and Norsk Tippings production.

On a yearly bases Norsk Tipping are producing 200 million bet slips and 14 million game event programs. Calculations made by The Swan ecolabel, indicates that this amount of paper equals a forest the size of 30 football pitches.

We are proud to help protecting our environment, and this is an event totally in Norsk Tipping's spirit. We are a provider of social responsible gaming, and the environment in total is therefore an important issue for us. The fact that our traditional football betting slip represents the first step is hardly a coincidence. It represents 56 years of history, and is well known and has a special place in the hart of the Norwegian people, said Reidar Nordby jr.

Minister of Environment Knut Arild Hareide with a copy of the first ever football bet slip presented by Norsk Tipping in 1948, at an outlet in Oslo.

Friday 10th of December 2004, Minister of Environment Knut Arild Hareide, was handed the first ecolabelled football bet slip, together with a copy of the first ever football bet slip presented by Norsk Tipping in 1948, at an outlet in Oslo.

About the Swan ecolabel:

The Swan is the official Nordic ecolabel, introduced by the Nordic Council of Ministers.

The Swan logo demonstrates that a product is a good environmental choice. The green symbol is available for around 60 product groups for which it is felt that ecolabelling is needed and will be beneficial. These days, everything from washing-up liquid to furniture and hotels can carry the Swan label.

The Swan makes sure that products fulfil certain criteria using methods such as samples from independent laboratories, certificates and control visits.

SOURCE: Bjørn Takle


Office of Fair Trading Issues Lottery Scam Warning

LONDON, UK (December 11, 2004) -- Hundreds of British consumers have lost up to £25,000 each after being hoodwinked by mailings claiming to come from the El Gordo de la Primitiva Lottery in Madrid saying they have won the Spanish lottery, the Office of Fair Trading (OFT) warned this week.

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In order to claim the alleged prize, recipients are asked for their bank account details and are told that a percentage of their winnings will be retained for costs. Later, the "winners" are contacted and asked to pay an assortment of fees in order to discharge their prize - of which they never receive a penny.

The OFT warned that people should never give out their bank details in response to an unsolicited mailing or phone call. "You should always be suspicious if you are contacted regarding winning a prize when you have not actually entered a lottery or competition," says John Vickers, OFT Chairman.

SOURCE: OFT media release.

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Texas Lottery® Revenue to State Tops $12 Billion

AUSTIN, Texas (December 13, 2004) - With last week's transfer of $83 million to the state of Texas, the Texas Lottery Commission surpassed yet another major milestone in its 12-year history. As of December 6, the total revenue generated for the state by the Texas Lottery® is $12,066,718,703.

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"The Texas Lottery was specifically created to generate revenue for Texas and surpassing the $12 billion mark is truly a significant landmark in the history of our state and this agency," said Reagan E. Greer, executive director of the Texas Lottery Commission. "Millions of Texans enjoy playing and winning the Games of Texas every day, and with about 30 cents of every dollar spent on Texas Lottery products going to the Foundation School Fund, the most important winner of all is public education."

The Foundation School Fund, administered by the Texas Education Agency, assists public education in Texas at a local level by contributing to teacher salaries, administration and educational resources. Since 1997, transfers from the Texas Lottery to the Foundation School Fund total more than $6.8 billion. Prior to 1997, proceeds from the Texas Lottery were allocated to the state's General Revenue Fund.

For more information about the Texas Lottery, please visit the official Texas Lottery Commission Web site at http://www.txlottery.org.

SOURCE: Texas Lottery Commission Press Release.


The First Internet Scratch Card in Estonia

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HELSINKI, Finland (December 15, 2004) -- European Game & Entertainment Technology Ltd Ab (EGET), a Finnish supplier of digital gaming solutions, has successfully delivered an internet scratch card game to Spordiennustus, an online gaming subsidiary of the Estonian Olympic Committee. This is the first game of this type to be offered in Estonia and yet another first for Spordiennustus, following the launch of their online sports betting site earlier this year.

EGET Ticket

The scratch card has a basketball theme, hence fitting perfectly with the site. It follows the standard scratch card model with 2 games, doubling the chance to win.

Players can also play for ‘double-or-nothing’. The winnings can be up to 100,000 EEK, depending on the price of the purchased ticket.

"Our wish is to offer for our customers new and interesting interactive gaming possibilities. The profit, which comes from the games goes to supporting Estonian sports", says Sven Kolga, Chairman of the Spordiennustus Board.

Until now, Spordiennustus has focused on offering sports betting on the Internet to the sports fans of Estonia. This new initiative demonstrates its decision to broaden its offering to include a range of instant games on the gaming site. This decision is supported by the rapid growth in traffic, indicating the success of sports betting. Another indicator of the accomplishment of Spordiennustus is that its turnover has doubled in 6 months.

"This shows how a successful online gaming solution can be diversified, bringing in new revenue streams," commented Lauri Gorski, CEO of EGET, "Sports betting and Instant Games are complementary, encouraging players to spend more time on the site and strengthening their relationship with the gaming operator."

The delivery of the scratch card is just the first phase . The cooperation with EGET will continue, with other releases of instant games to follow next year. These will include games such as Keno, which will be available at the beginning of next year.

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About EGET
European Game & Entertainment Technology Ltd Ab (EGET) was founded in 1999.
EGET specializes in providing digital solutions for licensed gaming operators in fully regulated jurisdictions. EGET is a driving force in the evolution of gaming systems as well as related technology and services. EGET promotes open, interactive, playercentric platforms for casino, lottery, event betting and horse-racing industries.
EGET represents a unique combination of gaming industry know-how and expertise in Internet, wireless communication and e-commerce technology, which positions EGET perfectly in the emerging market of interactive online gaming and allows it to respond to the needs of gaming operators and industry regulatory bodies worldwide.
For more information about EGET, please visit www.eget.fi.

About Spordiennustus
Spordiennustus A/S has a license to operate fixed odds sports betting in Estonia. The company is a joint venture of the Estonian Olympic Committee and PAFER A/S. Ålands Penningautomatförening (PAF) owns a minority part in the new Estonian gaming company. Spordiennustus - sports betting in Estonian - has entered into a long-term co-operation PAF and EGET regarding development and operation of sports betting games for the Estonian market.
For more information about Spordiennustus, please visit: www.spordiennustus.ee.

SOURCE: EGET Press Release. For more information, please contact: Ms. Riikka Seppänen, Marketing Manager at +358-40-552 7873, Email: riikka.seppanen@eget.fi or Mr. Sven Kolga (Spordiennustus), Chairman of the Board +372 603 1512, Email: sven@spordiennustus.ee.


JCM American Announces New Development Initiatives
Corporate Restructuring Brings More Improvements in Product Development, Customer Service

LAS VEGAS, Nevada (December 14, 2004) – Completing a thoughtful process that began late this summer, JCM American announced a new development initiative that will result in even more compelling product development and customer service. A corporate restructuring is at the center of the initiative.

Two divisions were created specifically to understand and develop more responsive solutions to customers in their respective fields. They are empowered to utilize the global resources of JCM to deliver productivity, security and accountability solutions.

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The new Gaming Solutions Division will continue JCM’s history of developing innovative currency solutions for the gaming industry around the world. JCM products, such as the embedded bill validator, have revolutionized the gaming industry, and the new Gaming Solutions Division will analyze the industry and create solutions for all gaming automated transaction needs.

Equal to the Gaming Solutions Division is the newly formed Commercial Solutions Division. The Commercial Solutions Division will seek out currency challenges in the commercial arena, most notably the vending, retail and banking industries and develop solutions for those needs. The division will also focus on the growing kiosk industry.

JCM American Vice President of Marketing Tom Nieman said, "This past summer, the company began a very deliberate and thoughtful process to make JCM even more customer-centric, by creating two distinct divisions, each sharing a common goal: to provide the best and most innovative solutions to our customers in both the gaming and commercial worlds. It’s an exciting time, and we are just getting started."

About JCM
JCM American Corporation is the industry leader in currency handling equipment. From its international headquarters in Osaka, Japan, and subsidiaries in Hong Kong and Germany to its United States headquarters in Las Vegas, JCM’s progressive spirit continues to set world-wide industry standards with innovative products such as the World Bill Acceptor (WBA). JCM provides its products, software and services to the gaming, banking, amusement, vending and petroleum industries. For more information, visit www.jcm-american.com.

SOURCE: JCM American Corporation media release distributed by Paul Speirs, Steinbeck Communications. P: 702-413-4278, F: 702-233-3492, Email: paulspeirs@cox.net.


GTECH Chosen by the State of Missouri for Seven-Year Integrated Services Lottery Contract; Company to Install Enterprise Series™ Architecture and 6,000 Altura® Terminals

WEST GREENWICH, Rhode Island, USA (December 16, 2004) - GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, was chosen by the State of Missouri to provide a new online lottery central system, terminals, and ongoing services under a proposed seven-year integrated services contract which is expected to commence July 1, 2005. The Missouri Lottery has the option to renew the contract for up to eight years beyond the expiration date of June 30, 2012. Today’s decision is the result of a competitive procurement.

"We’ve had a successful partnership with the Missouri Lottery since 1991, and we are grateful for the opportunity to build on this relationship over the next seven years," said GTECH President and CEO W. Bruce Turner. "We believe the Lottery’s decisions throughout the procurement process have been focused on the importance and value of providing the highest quality products and services available. Today’s announcement verifies that belief."

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Subject to the successful completion of a new contract, GTECH will provide the Missouri Lottery with the Company’s Enterprise Series™ architecture and approximately 6,000 Altura® terminals. In addition, the communications network will be partially provided by GTECH and will consist of VSAT, radio, and leased line.

GTECH will provide ongoing services to the Missouri Lottery including installation and maintenance of the central system, terminals, and communications network; software maintenance; retailer training; marketing support; hotline management; and field service.

With respect to its proposed contract with the Missouri Lottery, GTECH expects to generate approximately $85 million over the seven-year term.

The Missouri Lottery has been a valued GTECH customer since 1991. Since its fiscal year 2000, the Missouri Lottery’s total sales have increased year-over-year from $507 million in fiscal 2000 to $791 million in fiscal 2004. Lottery profits in Missouri are earmarked for education.

GTECH, a leading global information technology company with over $1 billion in revenues and more than 5,400 people in over 50 countries, provides software, networks, and professional services that power high-performance, transaction processing solutions. The Company’s core market is the lottery industry, with a growing presence in commercial gaming technology and financial services transaction processing. For more information about the Company, please visit GTECH’s website at http://www.gtech.com.

CONTACT: Robert K. Vincent Public Affairs, GTECH Corporation, Phone: 401-392-7452.

SOURCE: GTECH Corporation media release.


Scientific Games European Systems Division Earns ISO 9001:2000 Certification

NEW YORK, USA (December 16, 2004) -- Scientific Games Corporation (NASDAQ: SGMS) announced that its European subsidiary Scientific Games International GmbH has successfully passed a certification audit in accordance with the ISO 9001:2000 Quality Management System standards. While several suppliers in the industry have ISO 9000 certifications for hardware production, Scientific Games is the only supplier who has certified its operations, services and software development processes.

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According to the company, the process approach is a change in emphasis that, if applied appropriately, leads to added value for all stakeholders of the organization. As it competes in the marketplace, ISO's process approach to quality management helps to integrate business systems and procedures to achieve a common goal - ensuring business growth and maintaining an effective quality system.

The ISO 9001:2000 Quality Management System standards were developed by the International Organization for Standardization (ISO) with representation from over 90 countries. An ISO 9001:2000 Quality Management System focuses on Customer Requirements and Customer Satisfaction, Management responsibility, Processes and the continual improvement of the Quality Management System.

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The audit was conducted by a renowned international certification body: Société Générale de Surveillance (SGS) from Switzerland. SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With 37,000 employees, SGS operates a network of about 1,000 offices and laboratories around the world.

About Scientific Games

Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games’ customers are in the United States and more than 60 other countries.

SOURCE: Scientific Games Corporation media release. Company Contact: Lisa D. Lettieri, 212-754-2233.


Instant Game Special 7 Will Hit The Whole Canadian Market In February 2005

MONTREAL, Quebec, Canada (December 16, 2004) -- Oberthur Gaming Technologies ("OGT") will be providing the Interprovincial Lottery Corporation ("ILC") with the national instant game Special 7 that will be launched in the Canadian market in February 2005. This special order includes the printing of nine (9) million instant tickets that will be distributed to all Canadian provinces through the regional Lotteries, namely the Atlantic Lottery Corporation, Loto-Québec, the Ontario Lottery and Gaming Corporation, the Western Canada Lottery Corporation and the British Columbia Lottery Corporation.

OGT started working with the ILC in 1976, when the Lottery was founded to operate joint lottery games across Canada, at the regional Lottery’s discretion to participate. "We are extremely proud to have been given the opportunity to produce Special 7 for the ILC and collaborate on this nationwide project," said Garry W. King, Vice-President, Sales and Marketing of OGT-Canada. "This unique and special product will become a memorable game for Canadians as Special 7 will be the first instant ticket to be distributed in ALL provinces!"

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"On behalf of the ILC and all the Canadian Lottery Corporations, I am delighted to once again have the opportunity to work with OGT," added Robert Ayotte, President of the Interprovincial Lottery Corporation. "It’s always a great pleasure to deal with a professional team whose priority is to provide a quality product and exceed our expectations."

About Oberthur Gaming Technologies (www.oberthurgt.com)

With more than 30 years of lottery-specific expertise and over a century's experience in the security printing industry, Oberthur Gaming Technologies is the world’s leader in the printing of innovative instant lottery tickets. OGT currently supplies a full range of high quality and innovative products and services to 100 clients in some 50 countries. With a worldwide annual production capacity in excess of 14 billion tickets, the company has production units and offices in Montreal, Canada; San Antonio, Texas; Atlanta, Georgia; Harleysville, Pennsylvania in the U.S.; Paris, France; Vienna, Austria; and Sydney, Australia.

SOURCE: Lyse Trudel, Communications Officer, Oberthur Gaming Technologies, (+1-514) 254-3600, ext. 101. For information: Garry King, Vice-President, Sales and Marketing – Canada, Oberthur Gaming Technologies, (+1-514) 254-3600, ext. 280, Email: info@oberthurgt.com.

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