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Vol. 43 No. 7
Monday May 19, 2008
Wincor Nixdorf
QLot

Schafer Systems Inc.

  • Betware Delivers Multiplayer Community Games to Danish Lottery. Full Story
  • INTRALOT’s Expansion in U.S. Continues. Ohio Lottery selects INTRALOT, 6th contract in the U.S. for INTRALOT. Full Story
  • Aristocrat Technologies Receives Multiple Certifications For VIRIDIAN™ Cabinet. Full Story
  • GTECH Completes Final Stage Of Acquisition Of 100 Percent Of Atronic From Gauselmann Group. Full Story
  • South Carolina Education Lottery (SCEL) Achieves Industry Milestone. Full Story
  • European Parliament Warns of Gambling Liberalisation. Full Story
  • Pollard Amalco Inc. Announces Acquisition of Units of Pollard Banknote Income Fund. Full Story
  • Add-On Jackpot Winner, Extra $1 nets $10m, One Florida Lotto™ Ticket Wins $16 Million Jackpot. Full Story
  • GLI Holds Incredibly Successful Regulators Roundtables on Two Continents. Full Story
  • Lotteries Plan More Joint Games After Successful Debut Of ‘Midwest Millions’. Nation’s First Joint Instant-Scratch Game Paves Way For Further Projects. Full Story

Smartplay International Inc.

KEBA AG




 

Betware Delivers Multiplayer Community Games to Danish Lottery

REYKJAVÍK, Iceland (May 9, 2008) -- Betware has developed and delivered a suite of Multiplayer Games to Danske Spil, the Danish State Lottery. The games have been launched on Danske Spil’s Internet website www.danskespil.dk under the category named Zezam©. Danske Spil is Betware’s first client that implements this suite of community games.

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There is a lot of excitement about this project as it brings a new dimension to games, and the Danish Lottery has been busy completing the design, layout and specifications,” said Jørgen Falsvig, vice president and CIO, Danske Spil. “Betware has completed the software development and the new games are fully integrated into the existing Betware Internet solution.”

Thus far Danske Spil implemented four multiplayer games:  Hearts, Ludo, Whist and Yatzy. “The games are all played live, and players can decide to join a specific table to play against persons they know, or they can opt to be placed at random tables,” explained Rúnar Sveinsson, project manager at Betware.

The Multiplayer Games include features such as chat (room, game or private), ratings of players, game statistics, bonuses, jackpots and latest winners, to name just a few. “When we started to research possibilities for developing these games, we discovered that features such as chat, ratings and statistics would be excellent additional features as they allow for interaction between players, thus building community support and provide the added bonus of being entertaining as well,” said Mr. Falsvig.

Danske Spil is a leading lottery in terms of innovation and the use of new technologies.  Danske Spil offers all its existing lottery products also through the Internet using Betware Gaming Platform. This includes sports games, numbers games, Bingo, instant games and horse racing games.  Danske Spil’s newest addition, Multiplayer community games were launched on 14th of April 2008. The platform’s flexible nature and real-time gaming capabilities allow for integration of new games into a secure environment.

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About Danske Spil (www.danskespil.dk)

Danske Spil was founded in 1948, and is mostly owned and controlled by the Danish government. Danske Spil introduced Internet wagering in 2003. The company currently employs 250 people and has 2.700 on-line dealers and 1,300 scratch card dealers. It offers instant games, sports betting, lottery games, bets on horseracing and slot machines in Denmark. Game turnover for the Internet in 2007 was 294 million U$ and game turnover for all sales channels in 2007 was nearly 2 billion U$. Dansk Tipstjeneste Group is among the 50 largest companies in Denmark with an annual turnover of more than DKK 2.3 billion.

About Betware (www.betware.com)

Betware is a software and services company that specializes in providing technical solutions to gaming companies operating in fully regulated jurisdictions.  Betware has a wide product line, covering most traditional lottery games, sports games, instants, horse racing, live betting, bingo and casino games. These are offered for different channels including the Internet, IPTV, mobile and on-line retailer systems. Betware’s flexible application program interface (API) allows independent third party gaming developers and operators to create their own games on top of Betware’s core solutions. 

Press contact:   Wojciech Bachorski, Marketing Director, Betware, Tel: +354 5804723, Email: wojtek@betware.com.

 

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INTRALOT’s Expansion in U.S. Continues

Ohio Lottery selects INTRALOT, 6th contract in the U.S. for INTRALOT

ATHENS, Greece (May 13, 2008) -- INTRALOT’s subsidiary, INTRALOT Inc, was selected by the Ohio Lottery as the apparent successful vendor to operate the agency’s gaming system services. The project will be launched on July 1st 2009 after a one-year conversion contract that will begin on July 1st, 2008.   After the conversion the contract will have an initial term of two years with up to four, two-year renewals (The Lottery’s budget is only approved every two years by the state and therefore contracts cannot exceed two years).

The contract entails the initial provision of 8,800 new clerk operated Point of Sales terminals (and related peripherals) and 2,000 player activated, self-service terminals. According to the agreement, the Ohio Lottery will be able to choose among one of the following INTRALOT terminals; the CORONIS HEE terminal, the award winning microLOT terminal and the newest INTRALOT state-of-the-art terminal, the iris which tied for runner-up Product of the Year award at the recent PGRI conference (The Product of the Year award went to another INTRALOT product). 

The Ohio Lottery contract is the sixth one awarded to INTRALOT in the U.S. following the contracts in Nebraska, Montana, Idaho, New Mexico and South Carolina. INTRALOT has won three new contracts in the highly competitive US market in the last year alone.

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With this award, INTRALOT enters one of the top US markets that has a population of about 11.5 million people. According to LaFleur’s World Lottery Almanac, the Ohio Lottery ranks 10th in the U.S. in 2007 total sales of $2.258 billion, 6th in the U.S. in numbers sales and 8th in the U.S. in Lotto sales.  Ohio also ranks 26th in the world in total sales. It is believed that Ohio’s turnover will increase significantly in the next few years after the introduction of Keno.

The Ohio Lottery Commission was created in May 1973. Today, the Ohio Lottery Commission offers customers a wide variety of instant games and on-line games to play at about 8,500 licensed retailer locations across the state. In 2005, the Ohio Lottery added on another task: to administer and monitor charitable bingo licensing for the state. Since 1974, the Lottery has provided more than $15 billion to public education. Annually, the Ohio Lottery provides about 4% of the funding needed for public education - an effort shared by local, state and federal governments.

The Director of Ohio Lottery, Mr. Michael A. Dolan stated: “We’ve negotiated one of the best lottery gaming system contracts in the country in terms of both technical quality and cost effectiveness. We were fortunate to have all three major vendors compete for our business. The independent, extremely competitive process has resulted in unprecedented savings for our state, of more than $200 million over the potential life of the contract, based on current sales levels, aiming to benefit our bottom line; profits for education.”

INTRALOT S.A. CEO, Constantinos Antonopoulos stated: “We are extremely pleased to have been selected as Ohio’s apparent successful Gaming System Vendor. Our proposal was ranked number one among all major vendors confirming our leading position in the gaming industry and in particular in the U.S. Lottery market. We are determined to offer our state-of-the-art products, dedicated customer service and our worldwide experience to the benefit of the Ohio State Lottery in order to contribute to their efforts to maximize performance”. 

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INTRALOT Inc. President & CEO, Mr. Tom Little commented: “We are very proud and excited to have been selected to be the Ohio Lottery’s next partner.  Our team is ready and able to work closely with our newest partner to assist them in obtaining and exceeding their goals and objectives, both in the short term and the long term. We appreciate this opportunity very much and we look forward to working with the Lottery to implement secure and efficient solutions that will benefit the retailers, the players, the Lottery and all of the citizens of Ohio.

About INTRALOT (www.intralot.com)

INTRALOT, a public listed company, is the leading supplier of integrated gaming and transaction processing systems, innovative game content and sports betting management, to state-licensed gaming organizations worldwide. It’s broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations and its leading-edge technology, give INTRALOT a competitive advantage which contributes directly to customers’ efficiency, profitability and growth. With presence in more than 40 countries, with 4,200 people and revenues of $ 1.3 billion (€ 835.5 mil.) for 2007, INTRALOT has established its presence on all 5 continents.

For more information please CONTACT: Ms Persa Kartsoli, Head of Corporate Affairs, Phone: +30-210 6156000, Fax: +30-210 6106800, email: kartsoli@intralot.com.

 

Aristocrat Technologies Receives Multiple Certifications For VIRIDIAN™ Cabinet

Award-winning VIRIDIAN™ Certified for Jurisdictions Across North America

Company Filling Orders From Coast to Coast

LAS VEGAS, Nevada, USA (May 9, 2008) – Aristocrat Technologies announced today that it has received multiple test lab certifications for its new award-winning VIRIDIAN™ cabinet in key markets in North America. The groundbreaking product is now certified in most GLI jurisdictions, New Jersey, and three Canadian provinces.

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 In addition to the certifications, the VIRIDIAN cabinet completed its Colorado field trial ahead of schedule, and is in the final stages of field trial in Nevada. VIRIDIAN was initially placed in select approved markets in late March and has received an extremely positive response from players and operators alike.

 Aristocrat Sr. Vice President of Sales Sean Evans said, “Our reports show that customer acceptance is very high, and early numbers indicate improved casino performance with more than a 50 percent increase in multiple locations. We believe that can be directly attributed to VIRIDIAN’s unique features including its dynamic scorecard, easy-play interface, and high impact cabinet presence.

 The industry immediately embraced VIRIDIAN at its debuts at G2E and NIGA, and Global Gaming Business magazine named it the year’s “Best New Slot Product.”

 The VIRIDIAN cabinet is designed for optimal player comfort and operator serviceability and features a slimmer footprint, high resolution dual LCDs and unique, wrap-around belly art, creating a truly unique product offering. VIRIDIAN embraces environmentally responsible design and production methods, resulting in a 100 percent RoHS-compliant product and increased energy efficiency for operators.

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 Driven by an Intel™ processor, the innovative GEN7 platform features dynamic scorecards and an enhanced Easy Play on-screen interface, including player-selectable denominations. The new platform utilizes Smart card and flash card technology, and, in addition to offering an enhanced player experience, GEN7 paves the way for downloadable, server-based and wireless gaming, supporting the technology of today while driving the technology of the future.

 Aristocrat Technologies Inc. is a subsidiary of Aristocrat Leisure Limited (ASX: ALL), a leading global provider of gaming solutions that consistently outperform the competition. The Company is licensed by over two hundred regulators and its products and services are available in over ninety countries around the world. Aristocrat offers a diverse range of products and services including electronic gaming machines, interactive video terminal systems, electronic tables, and casino management systems. For further information visit the company’s website at www.aristocratgaming.com.

CONTACT: Paul  Speirs, Steinbeck Communications, P (702) 413-4278, F (702) 233-3492, Email: paulspeirs@cox.net

 

Lottomatica’s GTECH Subsidiary Completes Final Stage Of Acquisition Of 100 Percent Of Atronic From Gauselmann Group Total Enterprise Value Of Approximately €189 Million, Including Debt

ROME, Italy - PROVIDENCE, Rhode Island (May 13, 2008) – Lottomatica S.p.A.'s wholly-owned subsidiary, GTECH Corporation, announced that it has acquired the remaining 50 percent interest in the Atronic group of companies owned by privately-held Gauselmann Group for €32 million in cash.

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This completes the final stage of a two-part transaction. As previously announced, GTECH completed the first stage of the transaction in January 2008, when GTECH acquired a 50 percent controlling interest in Atronic for €20 million.

The overall transaction has a total value of approximately €189 million, which includes approximately €137 million of debt.

Lottomatica is one of the world's largest commercial lottery operators and a market leader in the Italian gaming industry. GTECH is a leading gaming technology and services company, providing innovative technology, creative content, and superior service delivery. GTECH and Lottomatica together create a fully integrated lottery operator and gaming technology solutions provider – a combined company with worldwide scale, considerable financial strength, and industry-leading customer solutions. Lottomatica is majority owned by De Agostini, which belongs to a century-old publishing, media, and financial services group. Lottomatica is publicly traded on the Italian Stock Exchange (LTO), and in 2007, had approximately €1.7 billion in revenues and 5,900 employees in over 45 countries when combined with GTECH.

For further information: AD HOC Communication Advisors 02/7606741, Mario Pellegatta - Matteo Cidda 335/1415585. GTECH contact: Robert K. Vincent Public Affairs 1-401-392-7452.

 

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South Carolina Education Lottery (SCEL) Achieves Industry Milestone

COLUMBIA, South Carolina (May 12, 2008) – The South Carolina Education Lottery (SCEL) has become the first Lottery verified on the Technical Standard established by the North American Association of State and Provincial Lotteries (NASPL) for Extensible Markup Language (XML) Retail Accounting Reports. Verification was obtained on May 6 and will be valid until May 6, 2010.

SCEL’s verification follows the successful completion of a pilot project which was established by The Open Group, a project management and facilitation services company for standards development and certification.

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"NASPL commends Ernie Passailaigue, Executive Director of the South Carolina Education Lottery, and his entire staff for obtaining this very important goal,” said Davie Gale, NASPL Executive Director. “This recognition is extremely important in the future growth of our industry. Once again, congratulations!"

We’re honored to be recognized as a trailblazer in the lottery industry,” said Passailaigue. “This verification is another example of SCEL’s commitment to excellence.

Standardizing Retail Accounting Reports in XML throughout the industry ensures lotteries and retailers alike are taking advantage of technology to improve efficiency and reduce costs. The result is more effective communication that will enhance efficiencies in all aspects of the trade.

NASPL represents 50 lottery organizations throughout North America, Mexico and the Caribbean. NASPL approved the creation of a standards initiative, which is dedicated to the adoption or creation of Technical Standards, Best Practices, and Certification Programs that will further the lottery objectives of integrity, security, interoperability, and profitability.

Since its inception in 2002, the South Carolina Education Lottery has launched more than 260 instant games and six online games. Currently, SCEL offers 39 instant games and five online games. SCEL produces an average of four new games each month in a variety of themes, play styles, and price points of $1-$10. During the past six years, the support the South Carolina Education Lottery has received from players and retailers is responsible for the General Assembly appropriating more than $1.74 billion for educational purposes through fiscal year 2008.

SOURCE: South Carolina Education Lottery (SCEL).

 

NASPL08

 

European Parliament Warns of Gambling Liberalisation

BRUSSELS, Belgium (May 8, 2008 – Today the European Parliament’s plenary has adopted a resolution on the European Commission’s July 2007 strategy paper (“White Paper”) on Sport, in which it voices its concern at a possible deregulation of national gambling markets.

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The European Parliament stresses that the revenues generated by state-owned or statelicensed lotteries are “the most important source of income” and “indispensable” for sports organisations in the EU. The EP warns that no sustainable and politically feasible alternative to this funding in the event of a liberalisation has so far been either proposed or seriously discussed, and calls on the European Commission to carry out a study of the effects that a deregulation of gambling and betting would have on society and sport.

The EP observes that “sports betting activities have developed in an uncontrolled manner

(particularly cross-border betting on the Internet)” and points to a growing number of matchfixing cases. The resolution calls for measures to protect the integrity of sporting events.

Dr. Winfried Wortmann, President of European Lotteries, welcomed today’s parliamentary resolution: “In addition to the general interest objectives of consumer protection and the prevention of fraud, the financing of sport, especially amateur and grassroots sport, through national lotteries and the protection of the integrity of sporting events are important political arguments against a deregulation of gambling,” he said.

Dr. Wortmann added: “The European Parliament and the Council, the two EU legislative

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bodies, have consistently rejected a liberalisation of the very sensitive area of gambling. We have witnessed today another clear manifestation of this political will.

Between 2000 and 2007 the EU legislator explicitly excluded gambling and betting from the scope of the key internal market directives on E-Commerce, Services in the Internal Market and Audiovisual Media Services.

Key gambling-related passages of today’s European Parliament resolution:

Recital Y/Plenary amendment 27

whereas sports organisations have many sources of income, such as club fees and ticket sales, advertising and sponsorship, lotteries, media rights, re-distribution of income within the sports federations and leagues, merchandising, public support, with revenues generated by state owned or state-licensed lotteries and gambling operators being by far the most important source of income in many Member States.

Recital AA.

whereas sports organisations in the European Union consider as indispensable the contribution made to the financing of non-professional sport by state-run lotteries and licensed gambling bodies operating in the general interest; whereas no other sustainable and politically feasible solution has so far been either proposed or seriously discussed to make up for the substantial losses from these sources of financing to be expected if profit-making enterprises were authorised to operate in Member States which have thus far applied restrictive gambling policies.

Recital AB.

whereas sports betting activities have developed in an uncontrolled manner (particularly crossborder

betting on the Internet), whereas a growing number of matches have been fixed and

whereas betting-related scandals have recently come to light in EU Member States,

threatening the integrity of sport and sporting competitions.

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Paragraph 79

Calls on the Commission to help maintain, with a view to ensuring continued sources of financing for non-professional sport, the current system of public financing of nonprofessional sport through contributions from state-run lotteries and licensed gambling bodies operating in the general interest;

Paragraph 81/Plenary amendment 13

Voices its concern at a possible deregulation of the market in gambling and lotteries; considers it appropriate to use the profits derived from such lotteries for purposes that are in the public interest, including the continuing financing for professional and amateur sports; calls on the Commission and the Member States to adopt regulatory measures which ensure that sport is protected from any improper influence relating to betting, which guarantee the sporting events’ integrity and ensure the respect of the competitions’ organisers intellectual property rights; calls on the Commission to carry out a study of the potential effects on society and sport of full deregulation of the market in gambling and lotteries, and of what types of control mechanisms could be used to protect consumers;

The amendments adopted today can be found at:
1) Text of the draft resolution.
2) Adopted plenary amendments 13 and 27.

About European Lotteries (EL)

European Lotteries (EL) is the European umbrella organisation of state lotteries and

sports betting operators as well as other state-licensed organisations which operate

games of chance for the public benefit. EL represents 74 organisations in 43 European countries.

For further information please Contact: Rupert Hornig, General Delegate, EL, T: +32.234.38.20, M: + 32.485.077.234.

SOURCE: European State Lotteries And Toto Association Press Release.

 

Pollard Amalco Inc. Announces Acquisition of Units of Pollard Banknote Income Fund

WINNIPEG, Canada (May 15, 2008) -- Pollard Amalco Inc. (“Pollard Amalco”) announced today that it has acquired 4,800 units of Pollard Banknote Income Fund (the “Fund”). Pollard Amalco’s total holdings of Fund units are now 4,800 units, representing less than 0.1% of the outstanding units of the Fund. The Fund units were purchased through the facilities of the Toronto Stock Exchange at a price of $7.85 per unit, being the market price at the time of acquisition.  Pollard Amalco also owns limited partnership units in Pollard Holdings Limited Partnership which are exchangeable at any time for Fund units representing approximately 73.30% of the units of the Fund (calculated on a fully exchanged basis). Through this purchase of Fund units together with its pre-existing holding of voting rights in the Fund, Pollard Amalco now holds approximately 73.32% of the total voting rights in the Fund.

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On May 7, 2008, Pollard Amalco announced its intention to make from time to time normal course purchases of Fund units in accordance with the normal course purchase exemption to the takeover bid rules under applicable securities laws. Such purchases will be made at the market price of the Fund units at the time of the acquisition.

Pollard Amalco is controlled indirectly by Gordon Pollard, John Pollard and Douglas Pollard, each of whom is a senior executive of Pollard Banknote Limited, the entity which, through Pollard Holdings Limited Partnership, manages the business of Pollard Banknote. Pollard Banknote is one of the world’s leading full-service lottery vendors and is a major supplier to North America’s charitable gaming industry.

Through the normal course purchases, Pollard Amalco may elect to purchase up to 314,285 units of the Fund (including the Fund units purchased as noted above), representing 5% of the Fund’s currently outstanding units. The actual number of units purchased, and the timing of the purchases will be determined by Pollard Amalco considering market conditions, the trading price of the units and other factors.

Pollard Amalco believes that, from time to time, the trading price of the units of the Fund may not reflect their underlying value and therefore may represent an attractive investment opportunity.

Purchases of units of the Fund by Pollard Amalco may be made at any time and may be discontinued at any time. There cannot be any assurances as to how many additional Fund units, if any, will ultimately be acquired by Pollard Amalco.

About Pollard Amalco

Pollard Amalco is a Canadian investment and holding company whose holdings include an approximate 73.3% interest in Pollard Holdings Limited Partnership. Pollard Holdings Limited Partnership, through its operating subsidiaries, conducts the business of Pollard Banknote. Pollard Amalco is owned and controlled by members of the Pollard family of Winnipeg.

About Pollard Banknote Income Fund

Pollard Banknote Income Fund is an unincorporated, open-end trust which owns an approximate 26.7% interest in Pollard Holdings Limited Partnership.  Pollard Holdings Limited Partnership, through its operating subsidiaries, conducts the business of Pollard Banknote.

Additional information on Pollard Banknote is available on the Fund’s website at: www.pollardbanknote.com or at SEDAR, www.sedar.com.

For further information: Gordon Pollard, John Pollard, Tel: (204) 474-2323.

 

 

Add-On Jackpot Winner, Extra $1 nets $10m, One Florida Lotto™ Ticket Wins $16 Million Jackpot

$6 million base jackpot plus an additional $10 million

TALLAHASSEE, Florida (May 11, 2008) -- The Florida Lottery announced today that one ticket matched all six winning numbers in the Saturday, May 10, FLORIDA LOTTO™ drawing. The lucky player purchased a $2 play, winning $16 million - the $6 million base jackpot and $10 million from the $2 jackpot prize pool. Had the player purchased a FLORIDA LOTTO $3 play, he/she would have won $31 million - the base jackpot plus an additional $25 million!

The winning FLORIDA LOTTO numbers were:

11 - 15 - 22 - 23 - 25 - 42

The winning ticket was sold at the following location:

Bud's Mini Mart - $2 Play

1000 Carlton Arms Boulevard

Bradenton (Manatee County)

More than 101,000 FLORIDA LOTTO players won cash prizes for matching three, four or five numbers. Prize payouts are as follows:

  • 84 players matched five numbers, each winning $4,530.50.
  • 4,648 players matched four numbers, each winning $66.50.
  • 96,408 players matched three numbers, each winning $4.50.
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FLORIDA LOTTO is Florida's game of 'choice', offering players three levels of jackpots to choose from: The base jackpot, a $1 play, starts at $3 million and increases with each rollover if no one matches the six-of-six winning numbers; a $2 play offers players the opportunity to win the base jackpot plus $10 million; and, a $3 play offers players a chance at the base jackpot plus the $10 million and an extra $15 million - for a total of $25 million added to the base jackpot!

The next FLORIDA LOTTO drawing will be held on Wednesday, May 14 at 11:00 p.m. ET, with a $3 million base jackpot. Webcasts of Florida Lottery drawings are available on the Lottery's Web site at flalottery.com.

The advertised jackpots are the amount the Lottery will pay a single winner in 30 annual payments. If there are multiple 6-of-6 winners, the jackpot prizes will be shared equally within the applicable prize pool. Winners of the $2 and $3 jackpot prize pools will win their share of the applicable prize pool as well as their share of the lesser jackpot pools.

If no ticket matches all six winning numbers, the base jackpot rolls over and the cash in the base jackpot prize pool is carried over to the next drawing. The $2 and $3 jackpot prize pools will not be carried over.

CONTACT: Jacqueline Barreiros, (850) 487-7727

 

 

GLI Holds Incredibly Successful Regulators Roundtables on Two Continents

LAKEWOOD, New Jersey (May 12, 2008) ­ Gaming Laboratories International hhas successfully completed regulators roundtables on two continents, and the reviews have been very positive.

North America Roundtable
GLI’s 7th annual North American Roundtable

GLI’s 7th annual North American Roundtable drew more than 200 regulators from 93 jurisdictions across the United States and Canada. Its 5th annual European Roundtable attracted 47 regulators from 18 jurisdictions across the continent, from the U.K. to Lithuania.

GLI;s Roundtable is a great opportunity to become more familiar with new technologies and current world practices in adopting them. We found the roundtable very useful, and we are impatiently waiting for the next meeting,” said Danielius Stasys, Head of Gaming Devices Inspection and Register Division, State Gaming Control Commission in Lithuania.

GLI Sr. Director Engineering and Client Services Ian Hughes said, “We are thrilled with the way the roundtables went. Today, 111 jurisdictions around the world are more informed and more prepared for their regulatory challenges, and that is extremely beneficial to the global gaming industry. No other company offers such an experience, and we are proud to present the roundtables and to do it free of charge.”

Euro Roundtable
GLI’s 5th Annual European Roundtable

GLI will be conducting condensed versions of the roundtables in multiple international jurisdictions over the remainder of 2008. Next for GLI is a series of training sessions throughout the year in the company’s GLI University program. The trainings are also presented free of charge to regulators.

About Gaming Laboratories International

Gaming Laboratories International operates nine fully accredited testing laboratories worldwide, in addition to fully accredited inspection bodies in America, Europe and Africa. GLI is the only independent testing laboratory of its kind to hold both U.S. and International accreditations for compliance with ISO 17025 and 17020 standards for technical competence in testing and inspection services.

CONTACT: Christie Eickelman, Director of Worldwide Marketing, Gaming Laboratories International ,+1 (702) 914-2220 or c.eickelman@gaminglabs.com

Gaming Laboratories International, GLI Europe B.V., GLI Africa, GLI, and Gaming Laboratories Australia and associated globe logos are trademarks of Gaming Laboratories International, Inc.

GLI Press Release distributed by Paul Speirs, Steinbeck Communications, P (702) 413-4278, F (702) 233-3492, E paulspeirs@cox.net.

 

Lotteries Plan More Joint Games After Successful Debut Of ‘Midwest Millions

Nation’s First Joint Instant-Scratch Game Paves Way For Further Projects

Article By: Mary Neubauer, Iowa Lottery and Sally Lunsford, Kansas Lottery

IOWA and KANSAS (May 13, 2008) -- A successful debut by the nation’s first instant-scratch game sold jointly by separate states has led to plans for more multi-jurisdictional projects.

Midwest Millions

The Kansas and Iowa lotteries became the first in the United States to offer a joint scratch game when Midwest Millions began sales in September 2007. Players in both states bought tickets and competed for prizes as part of an effort to test the “Powerball concept” that has proven so successful in lotto games. The idea is that multiple lotteries join together to offer bigger prizes and more chances to win than they can achieve on their own.

Midwest Millions has joined the list of multi-jurisdictional games that have achieved success by offering players more prizes and larger top prizes through the pooling of resources,” Kansas Lottery Executive Director Ed Van Petten said.

Instant-scratch games are one of the staples of the modern lottery industry, with multiple games for sale at the same time and players annually buying billions of dollars worth of the latex-covered tickets that they scratch off to determine whether they've won a prize. But until Midwest Millions, instant-scratch games had been an individual product for each U.S. lottery.

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Van Petten found inspiration for Midwest Millions in the success that Canadian lotteries have achieved by joining together to offer scratch games with millions of dollars in prizes. The provincial lotteries in Canada have successfully offered joint instant-scratch games since 1976. As he initially considered the idea in mid-2006, Van Petten contacted officials at the Iowa Lottery, who also saw merit in the project, and the two began the work of bringing a game to market.

Van Petten and Iowa Lottery Acting CEO Ken Brickman both are pleased with Midwest Millions’ performance and are planning another joint game with sales to start in September 2008.

It was invigorating to work on a new generation of lottery product in Midwest Millions,” Brickman said. “We look forward to continuing and even improving upon the trend with another joint scratch game.”

The number of tickets that can be offered in a lottery game and the size and number of prizes that can be supported are dependent upon population. In 1992, Iowa, Kansas and 13 other lotteries joined forces to introduce Powerball, which has gone on to produce world-record jackpots and dozens of multi-millionaire jackpot winners on the lotto side. Today, Powerball is played in 29 states, Washington, D.C., and the U.S. Virgin Islands.

 By joining together to sell Midwest Millions, Kansas, with a state population of about 2.7 million, and Iowa, with a population of about 2.9 million, effectively doubled their population base for the game.

 Midwest Millions offered 1.2 million tickets, with 600,000 going to each state. Statewide sales in the $10 game began in both states on Sept. 10. Instant prizes ranged from $10 to $50,000 and two second-chance drawings in the game each offered a $500,000 prize as well as 50 prizes of $1,000. The first drawing was Jan. 11 in Topeka, Kan., and more than 81,000 entries were received for it. The second drawing was April 18 in Des Moines, Iowa, with players sending in nearly 80,000 entries for it. 

Entries in the second-chance drawings were determined as a percentage of sales (e.g. if one state sold 60 percent of the tickets in the game, it got 60 percent of the entries in the second-chance drawing). Each state conducted preliminary drawings a few days before the final drawings; then the entries from those preliminary drawings were combined for the final joint drawings.

The two states ended up with a nearly even split of sales and entries in the drawings. Iowa led sales in the first drawing, garnering 59 percent of the entries to Kansas’ 41 percent. But Kansas came back to achieve 53 percent of the entries in the second drawing, with Iowa getting 47 percent.

Although both top-prize winners of $500,000 in the drawings ended up being Iowa Lottery players, each state had multiple winners of $1,000 prizes. Overall sales in both states also were strong, with Iowa nearly selling out the game and Kansas selling about 90 percent of its tickets in a much shorter timeframe than is typical for a $10 game.

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Van Petten is good natured about the outcome of the second-chance drawings and believes the multi-jurisdictional concept has proven itself in the instant-scratch category.

Kansas is planning to come away with both of the top-prize winners in the next game,” he said with a laugh. “On a serious note, one of the keys to the success of this game was that the prizes were shared by both states for a true multi-state approach. Players understood the concept from the start and were attracted by the game’s large top prizes.”

His thoughts were echoed by Stephen Zabel of Conesville, Iowa, who was drawn as the $500,000 prize winner in the April 18 drawing. Zabel said he had played Midwest Millions since the game’s start and sent in several tickets for the second-chance drawings.

I’ve been sending them in ever since you came out with that game,” he said. “I thought it was worth a chance.”

The two lotteries plan to call their next multi-jurisdictional scratch game Midwest Millions II. It will again utilize a prize payout percentage of 74.07 percent with overall odds of winning 1 in 2.83. There will be a slight change to the second-chance drawings, however. The location of the drawings will again be split between the two states, but each drawing will offer a top prize of $500,000 and five prizes of $10,000 to put even more emphasis on the fact that the game features large prizes.

Brickman said he is pleased by the early success of the concept.

Midwest Millions gave us the opportunity to present a new twist on lottery games,” Brickman said. “It is something our players definitely found intriguing. We’re committed to continuing to explore the idea and anticipate it may grow into something even bigger.”

SOURCE: By Mary Neubauer, Iowa Lottery and Sally Lunsford, Kansas Lottery.

 



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