I-Lottery Update - May 2008

Intralot Takes 51% in Slovenske Loterie

Intralot, the Greek lottery operator and gaming technology supplier, will take a 51 percent stake in Slovenske Loterie, a group based in the Slovak Republic holding licenses -- issued by the Slovak Ministry of Finance -- for the operation of video lottery terminals and automated roulettes.

Intralot said it will be able to increase its equity participation up to 81 percent through the exercise of call option rights across the next two years. Moreover, via the transaction, Intralot will acquire exclusive access to all proprietary rights of the technology assets of Tornado s.r.o., the software supplier. Intralot said it expects the synergies born of the deal to increase Slovenske Loterie's market share.

Tipp24 Reveals 22.3% Rise in First-Quarter Revenue

Tipp24, the Germany-based lottery operator, revealed a 22.3 percent rise in first-quarter revenue to 2.7 million euros, or $4.19 million, compared with 2.3 million euros, or $3.57 million, in the same period last year. The company said however that the new German State Treaty on Gambling, enacted Jan. 1, 2008, negatively impacted new customer registrations on tighter identification and credit checks.

Intralot in Double Dutch Deal

Intralot's Dutch subsidiary, Intralot Nederland, has signed a contract with De Lotto and De Nederlandse Staatsloterij, the Dutch lottery operators, for the supply of a platform and services. The seven-year agreement -- with an option for an additional three -- will commence in the third quarter of 2009.

Since the beginning of the year, Intralot has won new contracts in South Carolina -- its fifth in the United States -- Poland and Turkey. Constantinos Antonopoulos, the company's chief executive, said it hopes to expand in China and begin operating in Vietnam.

Competition for Turkish Tender Heating up

Lottomatica, the Italian lottery operator, and Dogan Yayin Holding, the Turkish media group, have entered a 50-50 memorandum of understanding with a view to win the tender to operate Iddaa, Turkey's state-administered sports betting game. Spor Toto, the state-owned operator, is set to award the 10-year tender from 2009. Inteletek, a subsidiary of Greece's Intralot, was in early April given a one-year extension to run the game. Intralot said in early March that it was "optimistic" about winning the tender.

William Hill Victorious in Basque Bid

Intralot has lost out to William Hill, the high street bookmaker, on the tender for the lottery license in Spain's Basque Region. Sources "close to the matter" told Thomson Financial in mid April that Intralot was one among six short-listed parties -- including Ladbrokes -- vying for the license. William Hill will work in cooperation with Finsoft Ltd., a subsidiary of Gtech Corp. specializing in software development.

Norsk Tipping Reveals 8% Rise in Full-Yearly Profit

Norsk Tipping AS, Norway's national lottery operator, has revealed full-yearly profits of $618 million -- up 8 percent versus 2006 -- from revenue of $2 billion. Revenue for the group's interactive gaming division, meanwhile, was up 48 percent to $138.6 million. Across 2007, Norsk Tipping contributed $250 million to the Ministry of Culture and Church Affairs, $43.8 million to Ministry of Health and Care Services and $2.4 million toward problem gambling treatment services.

Online Sales Generate $3.23 Billion for Austrian Lotteries

Austrian Lotteries, the state-licensed operator, has revealed a 4.5 percent rise in full-yearly net gaming revenues to 1.5 billion euros, or $2.36 billion. Sales at its Win2Day.at online division were up 4.7 percent to 808 million euros, or $1.27 billion, which accounted for approximately 39 percent of the group's corporate sales: 2.06 billion euros, or $3.23 billion.

Gtech Takes Majority Stake in St. Enodoc

Gtech, the U.S.-based subsidiary of Italy's Lottomatica, has agreed to take a 90 percent stake in St. Enodoc Holdings, parent company to St. Minver, the online operator. For the stake, Gtech will pay 28 million euros, or $43.8 million, cash, on closing.