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Vol. 44 No. 5
Monday August 4, 2008

Alchemy3 Logo

Schafer Systems Inc.
Wincor Nixdorf

  • Lottomatica Announce First-Half 2008 Results For The Period Ended June 30, 2008. Full Story
  • Camelot Rolls Out New, State-Of-The-Art Terminal. Eye-catching, Faster, New Terminal Gets Early Seal of Approval from Retailers. Full Story
  • INTRALOT Included in The Standard & Poor’s Global List 2008. Full Story
  • Scientific Games Second Quarter Revenues Rise 14% to $306 Million. Net income per diluted share of $0.31. Full Story
  • Kansas Lottery Records Second-Highest Year in Sales. Full Story
  • Louisiana Lottery Announce Best Fiscal Year Since 1993. Full Story
  • Iowa Lottery Sales Reach New Record, Reports Sales of Nearly $250 Million. Full Story
  • OLG Takes Next Step In Player Protection. Full Story
  • Lucky Las Vegan Becomes Instant Millionaire With Aristocrat’s Millioni$Er Penny Slot At Rampart Casino. Full Story
  • Pacific Lottery Corporation Successfully Completes Delivery and Installation of Its Next Generation Computerized On-Line Lottery Technology in Vietnam. Full Story

Smartplay International Inc.



KEBA AG


 

Lottomatica Announce First-Half 2008 Results For The Period Ended June 30, 2008

Group Consolidated Financial Highlights

  • Net income after minorities up 59% to €78 million, compared to €49 million in first half of 2007
  • Earnings per share increased to €0.51, from €0.32 in first half of 2007
  • Group revenues up 11% at €928 million, from €835 million in first half 2007
  • First Half 2008 EBITDA of €399 million, compared to €381 million in first half 2007
  • Delivering in line with 2008 guidance

Business Highlights

  • Signed two-year extension with Ireland’s National Lottery on July 31
  • Revenue growth driven by Sports Betting, Gaming Solutions, and Scratch & Win in Italy
  • Extended key contract in California; Launched Keno in Poland, Interactive in New Zealand, and Sports-betting in Taiwan; Implementing new GTECH GO™ platform in Ghana

ROME (Italy) - PROVIDENCE, Rhode Island (July 31, 2008) – The Board of Directors of Lottomatica S.p.A., chaired by Mr. Lorenzo Pellicioli, today approved the consolidated accounts for the first half of 2008, which ended June 30, 2008.

Lorenzo Pellicioli, Chairman & CEO of Lottomatica Group, commented: “This is a very impressive set of results, delivered in the face of a difficult economic climate. We have shown that we can generate growth and profitability by leveraging off our financial flexibility, diversified product portfolio, and market leadership to take advantage of new opportunities, as well as continuing to focus on excellence in our core activities.

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Stefano Bortoli, CFO of Lottomatica Group, said: “The Group remains in a financially sound position, and I am pleased to report that during the first half, we have made very encouraging progress, and we recorded an exceptional 59% earnings-per-share growth. Going into the second half of the year, we are confident of delivering results in line with our stated objectives. We have secured a number of new contracts and key contract extensions, which provide strong support for our top line going forward.”

Group revenues for the six months ended June 30, 2008 totaled €927.7 million, including approximately €410.6 million from GTECH and €517.1 million from Lottomatica. Overall, revenues grew 11% year-over-year, and 16% on a constant currency basis. Revenues from Lottomatica grew 26.8% year-over-year.

Reported EBITDA was €399.4 million, up 5% compared to the first half of 2007, with a 43% margin. At constant currency, EBITDA was up 10%.

Operating income was €250.0 million for the first half of 2008, up 4% over the same period last year. Operating income margins were approximately 27%. At constant currency, operating income was €253 million, up 6% versus the same period last year.

Net income after minorities was €78.0 million, up 59% over the first half of 2007, primarily due to the reduction in the effective tax rate in Italy.

Contract Extension in Ireland

On July 31, GTECH signed a two-year contract extension with An Post National Lottery Company in Ireland, a GTECH customer since 1987. The extension will commence in January 2009. The Lottery estimates the contract extension will generate approximately €28 million in revenue for GTECH.

GTECH Operating Results and Business Highlights

At constant currency, GTECH’s first half 2008 revenues were €455 million, compared to €427 million in the first half of 2007. As reported, GTECH contributed €410.6 million of revenue, with €347.1 million from the Lottery segment, €48.5 million from Gaming Solutions, and €15.0 million from Interactive. Same-store revenue growth in the first six months was 4%, with same-store revenue growth of 3% in the first quarter, and 6% growth in the second quarter of this year. In the second quarter of 2008, U.S. same-store service revenue was up 2%, versus the second quarter of 2007.

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As reported, EBITDA for the first half of 2008 amounted to €139 million. At constant exchange rates, EBITDA for the first six months of 2008 was €158 million, compared to €159 million in the first half of 2007.

In the first half of 2008, GTECH retained key lottery customers, expanded its international presence through new business ventures in Taiwan and Ghana, and introduced new products in Poland, New Zealand and Mexico.

During the first six months, GTECH signed a new long-term contract with the Michigan Lottery, and extended agreements with Veikkaus Oy in Finland and Societe de la Loterie de la Suisse Romande in Switzerland. In addition, GTECH successfully launched an interactive system for the New Zealand Lotteries, as well as a five-minute Keno game with Totalizator Sportowy in Poland.

In Mexico, Pronosticos para la Asistencia Publica awarded GTECH Printing Corporation (GPC) two contracts for instant-ticket printing. Lotteries including those in Florida, Oregon, and Washington also selected GPC for a portion of their instant-ticket printing.

During the half year, GTECH expanded its sports-betting reach with two new contracts. GTECH successfully implemented the first legalized sports lottery in Taiwan with Taipei Fubon Bank, with more than 1,000 retailers processing sports wagers to date. GTECH also signed a contract to implement the first online sports-betting wagering system utilizing GTECH GO™ in Ghana, which is expected to launch in October 2008.

Additionally, GTECH completed the majority acquisition of two interactive gaming businesses, Boss Media AB and St Enodoc Holdings Ltd. Since acquisition completion, revenue growth for both companies in the second quarter has been in line with GTECH’s expectations.

Also in the Interactive segment, GTECH’s Finsoft subsidiary has demonstrated considerable growth since it was acquired in July 2007. Since that time, Finsoft has increased its customer base from 17 to 26 operators, and the number of gaming shops that it supports by 40%. In the first half of 2008, Singapore Pools went live with GTECH’s Altura® terminals hosting Finsoft’s sports-betting module.

Also in the first six months, GTECH completed the acquisition of the Atronic group of companies.

After the first half of 2008, GTECH signed a four-year integrated services contract to provide new lottery technology and ongoing services to the California Lottery. GTECH expects to receive revenues in the range of $220 million to $250 million over the extension period.

Lottomatica Operating Results and Business Highlights

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Lottomatica delivered significant revenue and EBITDA growth in the first half of 2008, in the Lottery, Sports Betting, and the Gaming Solutions businesses.

Revenues grew 26.8% to €517.1 million, from €407.7 million in the first half of 2007. EBITDA grew to €260 million from €222 million in the first half of 2007. Growth was driven primarily by the expansion of Scratch & Win, Gaming Solutions, and fixed odds sports-betting.

Lotto and instant-ticket wagers grew 7.3% to €7.9 billion in the first half of 2008, from €7.3 billion for the same period last year, as the strong growth in Instants more than offset the small decline in Lotto.

Total Lotto wagers were €3.0 billion, slightly below the €3.1 billion in the first half of 2007. Lotto revenues were €195.0 million, compared to €204.0 million in the same period last year.

The continued strong performance of instant tickets resulted in sales of approximately €4.9 billion, compared to sales of approximately €4.2 billion in the first half of 2007. More than 1.3 billion Scratch & Win tickets were sold in the first half of 2008, compared to 1.2 billion in the same period last year. The average price point grew to approximately €3.7, compared to €3.4 in the previous year, mainly driven by the introduction of a second €10 lottery ticket in January 2008. Revenues from the Instant Lottery business totaled €171.7 million, compared with €147.6 million during the first half of 2007, an increase of 16%.

Pool games and betting generated €70.3 million of revenues from €367.8 million of wagers in the first half of 2008, due to the strong performance of the fixed odds sports-betting operations, which commenced in August 2007. At the end of the first half of this year, all 1,150 fixed odds sports-betting points-of-sale were operational.

Revenues from Gaming Solutions were €37.2 million compared to €9.9 million last year. This was driven by the increased placement of Amusement with Prize (AWP) machines, from approximately 32,200 machines installed at the end of 2007, to 41,800 machines installed as of June 30, 2008.

After the close of the first half of 2008, Lottomatica, in cooperation with Boss Media, launched a new Poker network under the recently-released internet skill gaming legislation in Italy.

Consolidated Cash Flow, Net Financial Position, and Shareholders’ Equity

Net Cash Flows from Operating Activities generated €177 million in the first six months, after having paid €52 million in additional taxes compared to the same period last year, primarily due to a net increase in cash tax paid based upon 2007 profit. During the first half of 2008, the Group invested €87 million in capital expenditures and €205 million in acquisitions. In addition, the Group paid €125 million in dividends to shareholders, made net interest payments of €95 million, and made €39 million of share repurchases. At June 30, 2008, Lottomatica Group had a Net Financial Position of €2.67 billion, compared to €2.45 billion as of March 31, 2008. Consolidated shareholders' equity totaled €1.57 billion.

Additional Information: Second-Quarter Results

Group revenues for the second quarter ended June 30, 2008 totaled €479.2 million, including approximately €215.4 million from GTECH and €263.8 million from Lottomatica. Overall, revenues grew 19.7% versus the second quarter last year.

The Group’s EBITDA was €194.8 million with an EBITDA margin of 40.6%. Operating income was €115.4 million for the quarter, up 16.3% over the same period last year. Net income was €48.1 million for the quarter ended June 30, 2008, compared to €23.1 million in the second quarter of 2007.

GTECH revenues for the second quarter of 2008 totaled €215.4 million, including €173.5 million from Lottery, €29.5 million from Gaming Solutions, and €12.4 million from Interactive. Revenues in the second quarter of 2007 totaled €203.1 million. Approximately 52% of GTECH’s service revenues in the current quarter were derived from U.S. dollar denominated contracts. On a constant currency basis, GTECH revenues for the second quarter increased by 17% compared to the same period last year. Same-store service revenue growth was 6% compared to the same period last year, averaging 2% and 12% growth in the U.S. and International regions, respectively, and 4% growth in Gaming Solutions service revenue.

Lottomatica revenues grew 33.9% to €263.8 million, from €197.1 million in the second quarter of 2007. Lotto and instant-ticket wagers grew 9% to €3.9 billion in the second quarter of 2008, from €3.6 billion in the same period last year. Lotto game wagers were comparable to the second quarter of 2007 at €1.5 billion. Instant-ticket wagers were approximately €2.4 billion, compared to approximately €2.0 billion in the same period last year. Lotto revenues were €97.9 million, substantially in line with the same period last year, while Instant Lotteries revenues were €83.8 million, compared to €71.1 million during the second quarter of 2007, an increase of 17.8%.

Other Information

In December 2003, Lottomatica issued a €360 million bond that is due on December 22, 2008. The Euro bond has a fixed coupon payment of 4.80%, payable annually each December.

SOURCE: Lottomatica S.p.A.

 

Camelot Rolls Out New, State-Of-The-Art Terminal

Eye-catching, faster, new terminal gets early seal of approval from retailers

LONDON, UK (July 30, 2008) -- National Lottery operator Camelot Group plc has begun the UK-wide rollout of the next-generation lottery terminal – and is already receiving very positive feedback on the new state-of-the-art equipment.

Rollout of the new terminal, which has received approval from the National Lottery Commission, is the latest phase of Camelot’s introduction of cutting-edge technology and networks designed to further enhance the National Lottery experience in-store. This will also allow games to be launched more quickly – helping to raise even more money for the Good Causes.

New lottery retail communications equipment, which will ultimately connect the terminals to upgraded gaming systems and deliver streamed content to in-store digital media screens, has already been installed in over 12,000 retail outlets across the UK, following a highly-successful pilot programme in which retailer satisfaction ran at over 98%.

One of the first outlets in the country to receive the new terminal was a Londis store in Slough, run by Paramjit and Sarabjit Singh Kalher. Mr Singh said: “The new terminal takes up far less space and looks very good. It’s working very well – it’s fast, easy to operate and the instructions that come up on the terminal are very clear. The digital screen is also a great way of reminding our customers about the latest jackpots, especially when there’s a big Rollover to be won.

National Lottery retailers are also receiving a full training package to familiarise themselves with the terminal’s range of features which have been designed to make serving customers even faster and easier. These include:

  • the ability to print National Lottery Fast Pay Cards, enabling all retailers – and their players – to benefit from this groundbreaking service;
  • faster printing time than the existing ISYS terminal – enabling customers to be served even more efficiently;
  • touch-screen technology to make the terminals easier to use and navigate – further reducing waiting times in-store on draw nights and at other busy times; and
  • a smaller in-store footprint than the current design – making it more practical for retailers to site.
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The comprehensive training initiative, which includes ongoing refresher training available through Camelot’s new e-learning tool on the terminal, has been tailored to meet the needs of retailers – and will ensure that they are prepared for the start of the new lottery licence in February 2009. Retailers will also continue to receive free installation and maintenance of lottery equipment, as well as new and improved Point-of-Sale communications through the digital media screen network.

Martin Pugh, Commercial Director at Camelot, said: “The National Lottery is in great shape for the start of the third licence next year. We have a proven track record of innovation, social responsibility and delivering for Good Causes – but all of this is only possible with the enthusiasm, vigilance and hard work of our retail partners.

Our relationship with retailers is vital to the ongoing success of The National Lottery – which is why we worked closely with them to jointly develop a new, cutting edge retail package, based on best-of-breed technology, to suit their needs and those of The National Lottery as a whole.

Rollout of the new Altura terminals, digital media screens and communications equipment, together with our ongoing commitment to first-class training, will ensure that all of our retailers are up and running ahead of the new licence next year. I’m confident that they will continue to make the absolute most of selling The National Lottery in their outlets over the coming months and years, and raise even more money for Good Causes – as well as boost their own bottom lines.”

For further information, please contact: Rob Dwight, Media Relations Manager: 020 7632 5748.

For further information on Camelot, The National Lottery and its games, please visit the following websites: www.camelotgroup.co.uk and www.national-lottery.co.uk.

Players of all National Lottery games must be aged 16 or over.

The crossed fingers logo is the registered trademark of the National Lottery Commission.

SOURCE: Camelot Group plc.

 

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INTRALOT Included in The Standard & Poor’s Global List 2008

ATHENS, Greece (July 29, 2008) -- INTRALOT was included in the Standard & Poor’s list of 300 companies that exhibit the highest growth characteristics and are expected to emerge as challengers to the world’s leading companies.

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Every year, the Standard & Poor’s Global Challengers List™ identifies 300 mid-size companies using two metrics of extrinsic growth – share price appreciation and sales growth - in conjunction with two metrics of intrinsic growth – earnings growth and employee growth. During the last 4 years, INTRALOT has presented a 38.5% growth in sales and a 40.9% increase in Human Resources.

The Standard & Poor’s list, revised once a year every April, is used by service providers, such as consultants and marketers, and it analyzes global growth trends or seeks client engagement opportunities, strategy formulators assessing future partners or competitors and product creators structuring investment vehicles offering exposure to fast growing mid-size companies. The Standard & Poor’s Global Challengers Class of 2008 is diversified across 33 countries.

Standard & Poor's is a provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. Standard & Poor's is part of the world's financial infrastructure and for more than 140 years has played a significant role in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions.

Constantinos Antonopoulos
INTRALOT CEO, Constantinos Antonopoulos

Commenting on this distinction, INTRALOT CEO, Mr. Constantinos Antonopoulos, stated: “It is very important that INTRALOT has been included in this significant list, which is composed by experienced analysts. Our listing in Standard & Poor’s index shows that INTRALOT is part of the pool of companies with great potential, which could indeed be tomorrow’s leaders.”

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. Its 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 45 countries, with approximately 4.400 people and revenues of €835,5 m. 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.

 

Scientific Games Second Quarter Revenues Rise 14% to $306 Million

Net income per diluted share of $0.31; Non-GAAP net income per diluted share of $0.35 including stock compensation expense and $0.41 per diluted share excluding stock compensation expense

NEW YORK, USA (July 31, 2008) -- Scientific Games Corporation (Nasdaq: SGMS) today reported second quarter 2008 revenues of $306.0 million, up 14% from $269.6 million in the second quarter of 2007. Net income was $29.0 million or $0.31 per diluted share, up from net income of $27.1 million or $0.28 per diluted share in the second quarter of 2007. Non-GAAP adjusted net income, excluding the Global Draw earn-out accrual, the early extinguishment of debt charge, expenses associated with the retirement of a division President and settlement with the California Horse Racing Board, was $33.4 million or $0.35 per diluted non-GAAP share.

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Excluding stock compensation expense, earnings were $38.8 million or $0.41 per non-GAAP diluted share, compared to non-GAAP adjusted net income of $30.7 million or $0.32 per non-GAAP diluted share in the second quarter of 2007.

EBITDA for the second quarter of 2008 was $93.1 million, up from $84.3 million in the second quarter of 2007. Adjusted EBITDA increased 16% to $104.0 million for the second quarter of 2008, compared to adjusted EBITDA of $89.3 million for the second quarter of 2007.

For the six months ended June 30, 2008, revenues were $563.0 million, compared to $511.8 million for the six months ended June 30, 2007, an increase of 10%. Net income was $48.9 million or $0.52 per diluted share, compared to $51.9 million or $0.54 per diluted share in 2007. EBITDA increased to $169.9 million from $160.1 million in 2007. Adjusted EBITDA increased 13% to $193.9 million.

During the quarter the Company completed a refinancing which included a $250 million senior secured revolving credit facility, a $550 million senior secured term loan credit facility, and $200 million of senior subordinated notes. Proceeds of this refinancing were used to repay all amounts outstanding under the Company's prior credit agreement. The refinancing extended the average maturity of the Company's debt, created additional borrowing capacity and loosened certain financial covenants. Lorne Weil, Chairman and CEO of Scientific Games commented, "We were pleased to complete $1 billion of financing on favorable terms in an otherwise difficult credit market. The undrawn revolver positions us for the growth we expect in coming years."

Printed Products Group

Printed Products Group service revenue increased by 16% to $146.8 million in the second quarter. Excluding revenues from Oberthur Gaming Technologies (OGT), the Pennsylvania cooperative service contract re-pricing, and instant tickets shipped to China, "same store" sales growth in the quarter was approximately 6%. The China Sports Lottery continues to perform exceedingly well, with weekly retail sales having recently exceeded $60 million, or more than $3 billion on an annualized basis. We remain very excited about this unique opportunity and have targeted the end of the year to begin producing instant tickets in our plant in Beijing. In the meantime we will continue to absorb the negative impact of air freight and duty, which accounted for more than $3 million of incremental cost in the second quarter. As a consequence overall Printed Product Group gross margins declined from 42% in the second quarter of 2007 to 40% this year; however, excluding the impact of the foregoing, margins were essentially flat year-over-year.

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Lottery Systems Group

Lottery Systems Group service revenues grew by 16% in the quarter to $61.3 million from $52.8 million last year, while service gross margins increased from 47% to 49%. "Same store" service revenue growth was about 7.5% overall, largely due to international growth, domestic jackpot activity and strong associated instant tickets validation revenues. Much of the overall increase in revenue and margin was attributable to the new contract for instant ticket activation, validation and tracking services for the China Sports Lottery, whose distribution network has reached 50,000 retailers on file.

Lottery Systems Group sales revenues increased to $24.5 million from $10.5 million in the second quarter of 2007. Most of the revenue increase was driven by the shipment of the first 3,000 Leonardo/Wave™ terminals to Sisal but, because of a range of start-up expenses associated with the contract, there was very little margin earned on these shipments in the second quarter. As we progress through the full 25,000 unit contract, we anticipate that margins will improve significantly.

The Televisa Mexican lottery contract negatively impacted earnings by $3.7 million or nearly $0.03 per share in the second quarter of 2008. During the second quarter, Televisa began to develop plans to re-launch the Multijuegos online lottery with an improved offering of games, payouts and price points, while we continue to await the launch of instant tickets, which we see as key to the success of the overall project.

Diversified Gaming Group

Diversified Gaming Group service revenues increased by 3% overall in the second quarter, with a 29% increase in Global Draw revenues offset by a modest decline in racing-related revenues and a sharp decline in Games Media revenue. As explained previously, Games Media is in the deliberate process of transitioning from a one-time product sale business model to one driven by participation-based recurring revenues and, while we are tracking well according to plan, we expect that it will take a few more quarters for revenue to return to previous levels. Gross margins in the Diversified Gaming Group were ahead of both the first quarter of this year and the second quarter of last year despite absorbing the cost of the Global Draw earn-out and the settlement of the California Horse Racing Board matter.

New Contract Activity

During the quarter we were awarded new cooperative service contracts by the Florida Lottery and the Sachsen-Anhalt Lottery in Germany, a new online contract by the Pennsylvania Lottery, and a race book contract by the Tunica Biloxi tribal casino in Louisiana.

Information about the use of non-GAAP financial information is provided under the section "Non-GAAP Disclosure" below. The non-GAAP measures (adjusted net income, diluted adjusted net income per share, EBITDA and adjusted EBITDA) are reconciled to the corresponding GAAP measures in the financial schedules accompanying this release.

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Convertible Debentures

A market price event did not occur for the quarter ended June 30, 2008 and, accordingly, the Convertible Debentures are not convertible during the current quarter ending September 30, 2008. During the second quarter of 2008, the average price of the Company's common stock exceeded the specified conversion price of $29.10 of the Convertible Debentures. Because of this, approximately 19,000 and 10,000 shares of common stock underlying the Convertible Debentures have been included in the weighted average number of diluted shares for the second quarter of 2008 and first half of 2008, respectively. Although the Company purchased a hedge in December 2004 to mitigate the potential dilution from the conversion of the Convertible Debenture, the Company is precluded from reflecting this hedge in the GAAP weighted average number of diluted shares because the effect would be anti- dilutive. However, to the extent the Convertible Debentures are converted during the term of the hedge, the diluted share amount will decrease because the hedge will offset the dilution from conversion of the Convertible Debentures.

Conference Call Details

We invite you to join our conference call tomorrow at 8:30 a.m. Eastern. To access the call live via webcast please visit www.scientificgames.com and click on the webcast link under the Investors tab. To access the call by telephone, please dial (800) 659-2056 (US & Canada) or (617) 614-2714 (International) fifteen minutes before the start of the call. The Conference ID# is 18527527. The call will be archived for replay on the Company's website for 30 days.

About Scientific Games

Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries worldwide, a leading supplier of server-based gaming machines and systems, Amusement and Skill with Prize betting terminals, interactive sports betting terminals and systems, and wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut, Maine 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. For more information about Scientific Games, please visit our web site at www.scientificgames.com

Company CONTACT: Investor Relations, Scientific Games, 212-754-2233

SOURCE: Scientific Games.

 

Kansas Lottery Records Second-Highest Year in Sales

TOPEKA, Kansas, USA (July 24, 2008) -- Sales of Kansas Lottery products ended the fiscal year with the second-highest total ever. Sales in Fiscal Year 2008, which began July 1, 2007 and ended June 30, 2008, were nearly $237 million (unaudited). That’s the second-highest total on record, but a slight decrease from FY07 sales, which set an all-time record. As a result of the year’s sales, the Lottery transferred $70 million to the State in FY08.

Here’s a breakdown of FY08 sales, by game, compared to the year before.

 

  FY08 Sales FY07 Sales % Change
Instant Games $115,082,105 $114,674,052 +0.36%
Pull Tabs $7,593,607 $9,382,750 -19.07%
Powerball $42,963,315 $39,356,064 +9.17%
Super Kansas Cash $17,428,827 $20,053,110 -13.09%
Pick 3 $5,814,236 $5,626,413 +3.34%
Keno $31,274,217 $33,643,621 -7.04%
eScratch* $1,048,865 $2,370,267 -55.75%
2by2 $1,656,054 $1,717,945 -3.60%
Hot Lotto $9,225,833 $11,461,422 -19.51%
Kansas Hold'Em** $4,640,878 $1,702,686 +172.56%
Online Coupons ($43,525) ($33,286) +30.76%
Total Sales $236,684,412 $239,955,044 -1.36%

 

*eScratch was discontinued Dec. 29, 2007

**Kansas Hold‘Em sales began statewide on Sept. 30, 2007

Considering that the Lottery lost nearly 50 retail locations across the state last year, most of which simply went out of business, we feel that we did well to experience only a slight decrease in sales from last year,” said Kansas Lottery Executive Director Ed Van Petten.

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Growth continued in instant scratch tickets, with sales up slightly over last year. The Lottery launched more than 100 new instant games in FY08, including its first two $20 tickets, and scratch tickets continue to be immensely popular with players.

The new monitor game Kansas Hold‘Em was also a bright spot. After test marketing Kansas Hold‘Em at a limited number of retail locations, the Lottery took the game statewide on Sept. 30, 2007.

Powerball sales were about nine percent higher than last year, but the Kansas-only game Super Kansas Cash was down about 13 percent. Pick 3 showed slight gains, but Hot Lotto, 2by2 and Keno were all down.

We will continue to introduce new games to stimulate sales,” said Van Petten. “The Lottery expects to launch a fun new electronic scratch ticket in FY09, which we think will be a hit with players. We’ll also be developing new in-state marketing partnerships.”

In recent years, the Lottery has developed several games that promote Kansas businesses, industry and tourism by offering Kansas-made products and Kansas attractions and events as grand prizes in second-chance drawings. Since FY05, the Lottery has purchased approximately $2.5 million worth of products or services from Kansas business partners to use for prizes and promotions.

Profits from the sale of the Lottery’s Veterans Benefit instant games were $880,163 in FY08. Sales from Veterans Benefit tickets provide direct funding for the Kansas Veterans Home and Soldiers Home, the Veterans Cemetery System, and Kansas National Guard scholarships. Since 2003, the Lottery has transferred more than $3.8 million in net profits from the Veterans Benefit games. In FY09, the list of beneficiaries will be expanded to include the Museum of the Kansas National Guard.

CONTACT: Sally Lunsford (785) 296-5708, Email: sally.lunsford@kslottery.net.

SOURCE: The Kansas Lottery.

 

 

Louisiana Lottery Announce Best Fiscal Year Since 1993

BATON ROUGE, Louisiana, USA (July 24, 2008) -- Amidst rising costs for other consumer products, Lottery tickets have maintained their price tag and popularity, with the Louisiana Lottery recording its best fiscal year since 1993. With 2008 fiscal year-end revenue of $376.7 million, the Lottery transferred more than $131.8 million in proceeds to the state for the Minimum Foundation program that funds public education.

"The Louisiana Lottery takes pride in offering our players entertainment that still costs only a dollar and also benefits education," said Lottery President and CEO Rose Hudson. "We're proud to make a positive contribution to the state of Louisiana, while upholding the highest degree of integrity and public trust."

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The Lottery credited much of its 2008 success to two new draw-style games featuring play action and prizes preferred by players. Last September, the Lottery introduced Easy 5, a match-5 lotto style game with a starting jackpot of $50,000 that rolls until it is won. In February, the Lottery launched its first raffle game, Millionaire Raffle, offering players the best odds ever of winning $1 million cash. Together these games accounted for approximately $16.9 million in new sales.

"It also didn't hurt that Powerball experienced four 'top-20' jackpots this fiscal year," explained Hudson. "What's more, three of the 13 Powerball jackpots won this year were claimed by Louisiana winners. High jackpots and awareness of local winners have always had a positive affect on sales."

On May 31, Emilia Delgado of Kenner won the $34.1 million Powerball jackpot. Four months earlier in January, Carl Hunter of Metairie won the $97 million jackpot, which was the largest single prize won in Louisiana Lottery history. In September of 2007,  William Heid Jr. of Chauvin won a $15 million Powerball jackpot.

Under state law, the treasury department receives 35 percent of every $1 Lottery sale. At least 50 percent is returned to players in the form of prizes and retailers receive at least 5 percent as commission on ticket sales. Less than 10 percent is retained by the Lottery for operating costs. The Louisiana Lottery ranks second in the nation for percentage of revenue transferred to its government among lotteries with traditional games, according to fiscal year 2007 industry data.

June's treasury transfer of $10,048,130 brought total fiscal year Lottery proceeds to their highest level in 14 years, which was a $14.5 million increase over budget.

Since the Lottery began operations in 1991, more than $5.62 billion in revenue has been generated primarily from ticket sales, and over $1.99 billion has been transferred to the state treasury department. Players have won more than $2.8 billion and retailers have earned over $302.3 million.

Also in 2008 and for the tenth consecutive year, the Louisiana Lottery received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the U.S. and Canada.

Lottery ticket purchasers must be at least 21 years of age. The Lottery encourages those concerned about a gambling problem to call toll-free 1-877-770-7867 for assistance.

SOURCE: Louisiana Lottery.

 

Iowa Lottery Sales Reach New Record, Reports Sales of Nearly $250 Million

FY 2008 Results: Lottery Raises $57.2 Million For State Programs

Storm Damage, Flooding and High Fuel Prices Impact Lottery Revenues Late In Year

DES MOINES, Iowa, USA (July 29, 2008) – Strong sales of instant-scratch and Powerball tickets helped the Iowa Lottery raise more than $57 million for state programs in its latest financial year, but record-high fuel prices along with widespread storm damage and flooding dampened lottery sales in the final months of the period.

Preliminary figures released Tuesday show that lottery sales totaled $249.2 million in fiscal year 2008, which ended June 30. That mark is the highest combined sales total for lotto, instant-scratch and pull-tab games since the lottery's start in 1985 and is a 6 percent increase from FY 2007's lottery sales total of $235 million.

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The unaudited figures show the lottery raised more than $57.2 million in profits for state programs during FY 2008, down about 1.6 percent from the lottery's profits total in the year before. A large portion of lottery profits in its latest fiscal year came from instant-scratch games, which have smaller profit margins than lotto games. Lotto games had accounted for a greater percentage of lottery sales in FY 2007 than in FY 2008, resulting in higher profits in the earlier period.

Record fuel prices and storm and flood damage across much of the state also impacted lottery sales in the final months of FY 2008.

Driven by strong performances from Powerball and instant-scratch tickets, lottery sales had jumped out to an 18 percent lead over the previous year's total by early September. But as the fiscal year continued, the pace of lottery sales slackened, particularly in June, when more than 80 of the state's counties had been declared disaster areas and the average price of mid-grade ethanol-blended gasoline had risen to $3.86 in Iowa. Five of the lottery's products, including the Powerball and Hot Lotto games, saw sales decreases in June compared to the same month a year earlier.

Ken Brickman, acting chief executive officer of the Iowa Lottery Authority, noted that Iowans have had to make tough, real-world decisions in recent months while they battled to save their families, homes and communities from weather-related disasters.

No one would expect folks to be concerned about buying lottery tickets with such weather extremes impacting our state,” Brickman said. “Our concerns remain with the multitude of people whose lives have been affected by this year's devastation. We will continue to do our best to raise money for state programs and in that way help Iowa recover from these hardships.

Sales of instant-scratch tickets, the first product introduced by the Iowa Lottery and always one of its top-selling items, rose 10 percent to a record $137.9 million in FY 2008. The lottery's previous record for instant-scratch sales had been set in FY 2007, when $125.1 million in scratch tickets were sold.

Powerball sales continued at a strong rate in the lottery's latest year, increasing 3.6 percent to a total of $63.7 million. Hot Lotto sales, however, fell nearly 19 percent to $11.7 million for the year. Sales in Hot Lotto, which offers Powerball-style play but with easier odds, had been driven in FY 2007 by a $19.97 million jackpot, the largest ever offered in the game since its start in 2002. That jackpot was claimed February 2007 by John Hall, a small-business owner from Indianola.

Sales of pull-tab tickets, another big sales category for the lottery, rose 1.7 percent to $21.4 million for FY 2008.

Lottery equipment and tickets were damaged or destroyed by storms and flooding in about 30 of the 2,600 Iowa Lottery retail locations late in FY 2008 and the lottery continues to work with its retailers and the state auditor's office to determine appropriate loss adjustments. Lottery executives anticipate that sales may be impacted moving forward by the temporary or long-term closing of retail locations that were impacted by storms and flooding.

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Brickman noted that the weather extremes and spiking fuel prices in particular impacted sales in “Iowa's Million Dollar Raffle,” the lottery's first cash-raffle game. At the same time that raffle sales began in April, parts of eastern Iowa began to experience flooding. That was followed by the tornado that destroyed much of Parkersburg and damaged other sections of northeastern Iowa, massive flooding that deluged much of the state and another huge tornado that destroyed property and took lives near Blencoe in western Iowa.

More than 71,000 of the 120,000 tickets available in the cash raffle game were sold, allowing the lottery to cover the cost of the game's prizes and clear some funds beyond that. But raffle sales did not meet the lottery's initial expectations.

Brickman pledged, however, that the lottery will continue to investigate new game ideas to offer a variety of products to its players.

Variety is a cornerstone of the entertainment we offer and that will continue to be our focus to ensure strong lottery profits for the programs that benefit all Iowans,” he said.

Since its start in 1985, the Iowa Lottery has provided entertainment and prizes to its players while at the same time raising more than $1.1 billion for the state programs that benefit all Iowans. Through the years, lottery funds have been used for a variety of initiatives, including projects to create new recreation areas, support research at Iowa's public universities, develop new products and techniques for agriculture, and promote tourism in Iowa.

Iowa Lottery profits currently are deposited in the state general fund, where they are used to pay for a variety of programs. Some of the programs that receive money from the general fund include education, natural resources, health and family services and public safety.

SOURCE: The Iowa Lottery.

 

OLG Takes Next Step In Player Protection

OLG Reviews Files From 1995 To 2006 To Ensure The Integrity Of Lottery Prize System

TORONTO, Canada (July 29, 2008) - As part of the OLG’s ongoing commitment to continuous improvement for player protection, it has moved beyond the recommendations of the Ombudsman and KPMG to review the integrity of lottery wins from the past to strengthen the system for present and future lottery winners.

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Over the past year, OLG has worked hard to build many new player protections that are now in place to make our lottery system safer today and into the future,” said Lenna Bradburn, Chief Security and Compliance Officer of the Office of Player Protection. “Now, with the assistance of the external auditing firm of Deloitte and Touche, we have been reviewing past winner files, including lottery wins by retailers, dating back to 1995.”

As a result of lottery winner information recently brought to the attention of OLG’s executive leadership and a renewed commitment to learn from the past to improve player protection efforts going forward, OLG has commissioned Deloitte and Touche to conduct a comprehensive forensic audit of past wins, as well as trends in winning. Any findings that suggest wrongful or criminal behavior will be turned over to the Ontario Provincial Police (OPP) immediately. Additionally, OLG has committed to making the key findings from this review available to the public.

In a related development, today OLG released information in response to an FOI request from the media on a former retailer and his family in northwestern Ontario, who had won approximately 160 lottery prizes over a nine-year period amounting to more than $1 million.

OLG followed the prize integrity processes that have been in place as a result of the Ombudsman’s recommendations and turned this case over to the OPP, “ said Bradburn.

OLG is not aware of any evidence of wrongdoing in this case. Any inquiries on the status of this investigation should be directed to the OPP.

Over the past 18 months, OLG and its 10,000 retailers have introduced the following protections for lottery players in Ontario:

  • Made it mandatory for customers to sign their tickets before a retailer can validate them.
  • Installed self-serve ticket checkers at all lottery terminal locations so customer can check their own tickets in the same computer system as the lottery terminal.
  • Introduced new terminal sounds with voice and new messaging on the customer display screen that tell customers the status of their ticket.
  • Required retailers to return all tickets with their corresponding receipts to customers for verification.
  • Required retailers to check the ID of any customer who appears to be under the age of 25 years.

Lottery customers with concerns about prize payment on winning lottery tickets can call OLG at 1-800-387-0098.

For further information: OLG Public Affairs, (705) 946-6716 Ontario Lottery And Gaming (Media Relations).

 

Lucky Las Vegan Becomes Instant Millionaire With Aristocrat’s Millioni$Er Penny Slot At Rampart Casino

LAS VEGAS, Nevada, USA (July 30, 2008) – Players have been winning millions playing Aristocrat’s Millioni$er® penny slot, and now a lucky Las Vegas local has joined the millionaires’ club by hitting the jackpot at Rampart Casino in Las Vegas.

 The lucky 66-year-old retired Las Vegan had played just $80 when she won $1.4 million! The woman, who said she frequently plays Millioni$er when she is at Rampart, was overwhelmed with emotion and started to cry when she realized she had hit the million dollar jackpot.

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She said she plans to pay some bills, buy her sister a present and then buy herself a house with the $1.4 million.

It’s incredible that Millioni$er hit on our floor, and we are especially excited one of our loyal locals won over $1 million on Millioni$er. Aristocrat’s Millioni$er has been on our floor for years, and we are thrilled that it could hit as a wide area progressive at the Rampart Casino,” said Rampart Casino Slot Director Donovan York.

Millioni$er became a state-wide multi-site progressive in Nevada last year, and hit for more than $1.7 million in Las Vegas in February. The top jackpot will now re-start at $1 million, ready to make another lucky player’s dreams come true. Millioni$er is available at more than 56 casinos throughout Nevada.

Millioni$er is a Hyperlink® progressive and sports a patented second-screen feature with four different jackpot levels that can be triggered randomly during game play. The four tiered progressives give Millioni$er a higher hit frequency so players win jackpots more often.

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.

 

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Pacific Lottery Corporation Successfully Completes Delivery and Installation of Its Next Generation Computerized On-Line Lottery Technology in Vietnam

CALGARY, Alberta, Canada (July 30, 2008) - Pacific Lottery Corporation (the "Corporation") (TSX VENTURE:LUK - News) is pleased to announce the successful completion of the inaugural phase of the installation of its proprietary National On-line Lottery Central System, with accompanying new PLC Gold On-Line Lottery Terminals (the "Lottery Terminals") to Vietnamese State authorised lottery retailers, in accordance with its recently signed exclusive ten (10) year On-line Lottery technology supply and services contract.

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This significant milestone marks Pacific Lottery's ascension into a very unique, exclusive global club of On-line Lottery technology supply companies that own and control their technology and also have an accompanying exclusive On-line Lottery supply and services contract with a National Government agency.

Additionally, the Corporation is continuing its ongoing training of State authorised retailers in conjunction with promotional programs, marketing and other advertising related activities. These activities are locally disseminating information about Vietnam's new On-line Lottery, which will offer to the general Vietnamese public several different customised daily and weekly numbers games along with some standard Lotto games. Further, these marketing and promotional activities are increasing in scope and frequency in anticipation of the official launch, which is expected shortly.

Finally, continuous expansion of the On-line Lottery retailer network (incorporating Vietnam's only authorised On-line lottery program) is expected to continue on the pre-agreed and mutually established schedule.

About Pacific Lottery Corporation:

Pacific Lottery Corporation is engaged in the provision of comprehensive computerized On-line lottery technology and related professional services for delivery to a growing audience of international customers. Today, the Corporation exclusively leads the technical support activities for the only authorised On-Line lottery program in Vietnam.

CONTACT: Jill L.E. Johnson, Pacific Lottery Corporation, (403) 266-8900, (403) 266-8909 (FAX), Email: info@pacificlottery.ca.

SOURCE: Pacific Lottery Corporation.



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