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The WEEK in REVIEW
A Weekly Snapshot of the Top Lottery and Gaming News Stories





Vol. 74 No.7 - Monday February 15, 2016


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International Game Technology PLC Announced that its Subsidiary has Signed a License Agreement for Life is Good® Lottery Products

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LONDON, U.K. (February 10, 2016) -- International Game Technology PLC ("IGT") (NYSE: IGT) announced that its subsidiary IGT Global Solutions Corporation has entered into a multi-year licensing agreement granting it the property licensing rights to the Life is Good brand. The agreement is effective as of December 18, 2015 and gives IGT the rights to develop and distribute Life is Good lottery products throughout North America, including instant scratch games, interactive online e-instant games, and draw-based games.

IGT is the global leader in gaming. We enable players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Interactive and Social Gaming. Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships...

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"IGT is pleased to partner with a positive lifestyle brand, Life is Good, a company that shares our passion for giving back to the community and generating funds for good causes," said Michael Chambrello, Chief Executive Officer, North America Lottery. "We are looking forward to bringing customers a robust Life is Good lottery program that will support the Life is Good mission – to spread the power of optimism and help kids in need. It is an honor to partner with a company that is so focused on doing good, and we are excited to grow that good together."

"Life is Good is looking forward to working with IGT in developing a strong lottery program that is aligned with our work to help kids by funding educational programs. We find tremendous value in partnering with companies that share our vision and give back to the community," said Bert Jacobs, Chief Executive Optimist at Life is Good. "We're confident we have selected the right partner in IGT based on their commitment and support of our mission."

About IGT

IGT (NYSE:IGT) is the global leader in gaming. We enable players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Interactive and Social Gaming. Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise, and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and we create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 13,000 employees. For more information, please visit www.IGT.com.

About The Life Is Good Company

The Life is Good Company spreads the power of optimism and donates 10 percent of its net profits to help kids in need. The company has raised more than $11 million for kids in need to date, principally through Life is Good products, events, and community fundraising efforts. Life is Good® is a registered trademark of The Life is Good Company. Please visit LifeisGood.com for more details and follow Life is Good on Twitter, Facebook and Instagram.

CONTACTS:

Robert K. Vincent, Corporate Communications, toll free in U.S./Canada (844) IGT-7452; outside U.S./Canada (401) 392-7452.

James Hurley, Investor Relations, (401) 392-7190.

Simone Cantagallo, (+39) 06 51899030; for Italian media inquiries

SOURCE International Game Technology PLC.

 

 

Scientific Games Wins Marnell Gaming Casinos' Systems Business

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LAS VEGAS, Nevada (February 4, 2016) -- Scientific Games Corporation ("Scientific Games" or "the Company") today announced that Marnell Gaming has selected the Company's Bally Systems Suite for its two casinos in Laughlin, Nevada, the Colorado Belle Hotel and Casino and the Edgewater Hotel and Casino.

Marnell Gaming is replacing a competitor's product with Scientific Games' casino management systems suite to drive operational efficiencies and delight players. The systems installation at both casinos will include SDS, CMP, Elite Bonusing Suite, iVIEW, iVIEW Display Manager and Business Intelligence.

"We are thrilled that Marnell Gaming will implement our robust marketing, management, business intelligence and powerful analytics solutions to help grow their casino business," said Bob Parente, Chief Revenue Officer, Gaming at Scientific Games.

Under the new agreement, the properties will be able to take advantage of these product innovations to drive player engagement:

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Scientific Games
  • SDS provides crucial game-monitoring data in real-time and fully integrates with other key system components, including the CMP player-tracking system.
  • Elite Bonusing Suite helps operators increase coin-in, carded play, new-card signups, and extended play experiences across the casino floor.
  • iVIEW is an interactive touchscreen that improves the player experience.
  • iVIEW Display Manager presents picture-in-picture display and interactions for self-service player-account access, marketing messages, and secondary bonus games on the main game screen – without interrupting play.
  • Business Intelligence lets casino operators analyze and visualize casino, slot and hospitality data.

 

About Marnell Gaming

Marnell Gaming's Colorado Belle and Edgewater Casino Resorts are located in Laughlin, Nevada in the center of the Laughlin Strip.  The combined properties have over 2,300 recently remodeled hotel rooms, nine dining venues, more than 1,600 of the industry's newest games, and offer headline entertainment at two locations, including the 10,000 seat Laughlin Event Center.  The properties are owned and operated by Marnell Gaming, LLC, a limited liability corporation that develops, expands and acquires gaming-related properties and is focused on providing a unique portfolio of gaming offerings to its guests.

About Scientific Games

Scientific Games Corporation (NASDAQ: SGMS) is a leading developer of technology-based products and services and associated content for worldwide gaming, lottery and interactive markets. The Company's portfolio includes gaming machines, game content and systems; table games products and utilities; instant and draw-based lottery games; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and interactive content and services. For more information, please visit: www.scientificgames.com.

Scientific Games, Bally, Bally Systems, SDS, CMP, Elite Bonusing Suite and iVIEW are marks owned in the United States and elsewhere by Scientific Games or one or more of its wholly-owned subsidiaries. © 2016 Scientific Games. All rights reserved.

Company CONTACTS:

 

Investor Relations:

Bill Pfund

Vice President, Investor Relations

+1 702-532-7663

Media Relations:

Mollie Cole

Director, Corporate Communications

+1 773-961-1194

Brand Marketing

Coordinator

Denise Pernula-Wright

+1 702-532-5888

 

SOURCE: Scientific Games Corporation.

 

 

Michigan Lottery Teams Up With Neopollard Interactive To Launch Online Draw Games Option For Players

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LANSING, Michigan (February 8, 2016) – NeoPollard Interactive LLC (“NeoPollard Interactive”) congratulates the Michigan Lottery on the recent launch of its new interactive draw games portfolio. With the launch of interactive draw games, as part of the Michigan Lottery’s online game services, lottery players in Michigan now may purchase Lotto 47, Fantasy 5, Mega Millions, and Powerball tickets over the Internet using their desktop computers, tablets, and smartphones.

Leveraging NeoPollard Interactive’s enhanced iLottery 360° solution and mobile-first approach, the Michigan Lottery’s interactive draw games offer players a state-of-the-art, intuitive cross-platform digital gaming experience. The industry-leading technology provides players full access to all online functionality and gameplay through all available digital channels. Players are able to purchase tickets for their favorite draw games in as few as three clicks, regardless of the channel or device they’re using. For each ticket purchased, players may choose their own numbers, use the ‘Easy Pick’ option for random numbers, or use numbers previously saved in their online profiles.

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The Michigan Lottery’s online games services also offers players the most payment options in today’s North American digital lottery market, including credit and debit cards, ACH, Neteller, and the Michigan Lottery’s own highly successful Online Game Card.

NeoPollard Interactive is very excited about its work with the Michigan Lottery to launch the interactive draw games options for players,” said Doug Pollard, Co-Chief Executive Officer, NeoPollard Interactive. “To date, the Michigan Lottery has achieved record success with its online games services, and has become the benchmark for North American lotteries looking to enter the digital space. With the addition of draw games to the Lottery’s online portfolio, we look forward to demonstrating how successful draw games can be via the Internet—just as we’ve done with instant and Keno games—and, ultimately, generating incremental revenues in support of public education in the state of Michigan.”

Ilan Rosen, Co-Chief Executive Officer, NeoPollard Interactive, added, “With the launch of interactive draw games, the Michigan Lottery continues to expand its digital products and services. In particular, we’re very enthusiastic to showcase NeoPollard Interactive’s mobile platform for draw games. Mobile already represents 50% of the Michigan Lottery’s online revenues. With the convenient purchase capability for draw games and a user-friendly mobile environment, we expect the mobile channel to continue to grow in popularity with Michigan Lottery players.”

The Michigan Lottery teamed up with NeoPollard Interactive to launch its online games platform in 2014. In fiscal year 2015, online games generated approximately $147 million in revenue for the Michigan Lottery.

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As part of its enhanced  iLottery 360° solution, NeoPollard Interactive recently unveiled a next-generation, MUSL-certified, interactive central gaming system for draw-based games at the 2015 NASPL Conference and Trade Show. This state-of-the-art interactive central gaming system has been developed based on global e-commerce and gaming best practices for today’s digitally-enabled world and features an advanced mobile environment that subscribes to the expectations of today’s digital consumer.

About NeoPollard Interactive

NeoPollard Interactive is a joint venture between Pollard Banknote Limited (“Pollard Banknote”) and NeoGames S.A.R.L. (“NeoGames”). NeoPollard Interactive combines the marketing expertise and extensive worldwide lottery experience of Pollard Banknote with the proven leadership and technology of NeoGames in launching new online and mobile gaming products and services in response to an ever-evolving marketplace. This joint venture leverages the strengths of each partner company to develop, implement, operate, and maintain innovative online gaming services for regulated lottery clients in order to generate revenues for good causes.

About the Michigan Lottery

About 97 cents of every dollar spent on Michigan Lottery tickets is returned to the state in the form of contributions to the state School Aid Fund, prizes to players and commissions to retailers. In the 2015 fiscal year, the Lottery’s contribution to Michigan’s public schools was a record $795.5 million. Since it began in 1972, the Lottery has contributed more than $19.6 billion to education in Michigan. For additional information, follow the Michigan Lottery on Facebook, Instagram, Twitter and online at: www.michiganlottery.com.

For more information about Neopollard Interactive CONTACT:

 

Doug Pollard

Co-Chief Executive Officer

Telephone: (204) 474-2323

E-mail: doug.pollard@neopollard.com

Ilan Rosen

Co-Chief Executive Officer

Telephone: +356-2-2494832

E-mail: ilan.rosen@neopollard.com

 

SOURCE: NeoPollard Interactive.

 

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NOVOMATIC Firmly Established as the Gaming Industry’s Leading Full-Service Provider

22 Group companies participate as exhibitors at the world’s largest gaming show in London.

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GUMPOLDSKIRCHEN, Austria (February 4, 2016) - The NOVOMATIC Group, Europe's largest gaming technology group, can look back on an extremely successful financial year and has further cemented its position as a full service provider among the top players in the industry.

NOVOMATIC participated at the world’s major gaming show "International Casino Exhibition" (ICE) in London, held this year from February 2nd-4th at the ExCeL Exhibition & Conference Centre London, with a new record number of 22 exhibiting Group companies. With a surface area of over 4,500 square meters NOVOMATIC once again had the largest exhibition booth in gaming show history.

"As a global full service provider, the scale of this trade show participation is consistent with our strategy of covering all segments of the gaming industry", said NOVOMATIC CEO Mag. Harald Neumann at the press conference held at ICE in London.

The offer at the NOVOMATIC exhibition stand ranged from casino equipment, systems and cash management solutions to arcade and pub products as well as sports betting, lotteries and online, mobile and social gaming.

According to Neumann, the preliminary figures for the financial year of NOVOMATIC AG will break through the threshold of 2 billion Euros for the first time. Together with the two Swiss sister holdings Gryphon Invest AG and ACE Casino Holding AG, the NOVOMATIC Group will increase its accumulated total turnover to about 3.9 billion Euros.

"In the course of the current financial year and due to the changes in the regulatory framework in Germany we will enhance our presence as an operator with the acquisition of further venues in this important market. In addition, we also intend to expand our market share in further key markets such as the UK and Spain through acquisitions,” said Neumann.

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In addition to continuous product innovation, NOVOMATIC will focus on an even more intensified diversification of its business activities in the future. For example NOVOMATIC Lottery Solutions (NLS) has been able to quickly and successfully establish an excellent position in the international lotteries business. NOVOMATIC Sports Betting Solutions (NSBS) was established in 2015 as an umbrella brand for all sports betting activities of the Group in the international B2B segment. NSBS companies offer Omni-channel sports betting solutions for the management of self-service terminals and tills in the land based segment as well as secure online and mobile sports betting solutions for discerning operators in various countries in Europe.

About NOVOMATIC (www.novomatic.com & www.novomaticforum.com)

The NOVOMATIC Group is one of the biggest international producers and operators of gaming technologies and employs more than 24,000 staff worldwide. Founded by entrepreneur Professor Johann F. Graf in 1980, the Group has locations in more than 50 countries and exports high-tech electronic gaming equipment and solutions to 80 countries. The Group operates more than 235,000 gaming terminals in its some 1,600 plus traditional and electronic casinos as well as via rental concepts.

The Group’s casino activities comprise leading casinos in Germany (Berlin) and the Czech Republic as well as further casinos in Switzerland, Macedonia, Lithuania and Gibraltar. ADMIRAL Sportwetten – with more than 200 betting shops – is the leading sports betting operator in the Austrian land based segment.

Through its numerous international subsidiaries the NOVOMATIC Group is now fully active in all segments of the gaming industry and thus offers a diversified multi-channel product portfolio to its partners and clients around the world. This product range includes land based gaming products and services, management systems and cash management, online/mobile/social gaming solutions as well as lottery and sports betting solutions together with a range of sophisticated ancillary products and services. Catering to the NOVOMATIC INTERACTIVE business segment is Vienna-based online gaming specialist Greentube and its many affiliates. Also part of the Group is NOVOMATIC LOTTERY SOLUTIONS (NLS), the provider of fully agnostic retail solutions, web enabled transaction engines, state of the art player, retail management systems, and VLT solutions for lottery and VLT operators worldwide. NOVOMATIC SPORTS BETTING SOLUTIONS (NSBS) merges the know-how and technologies of three brands – ADMIRAL, SBT and Na Zvesi – into a comprehensive offering.

Media inquiries CONTACT: Dr. Hannes Reichmann, Head of Group Communication, +43 664 301 48 20, Email: hreichmann@novomatic.com

SOURCE: NOVOMATIC AG.

 

 

Kambi Group plc Q4 Report 2015

MALTA (February 10, 2016)

Summary

  • Revenue amounted to €14.2 (9.3) million for the fourth quarter of 2015, an increase of 53%, and €47.7 (36.0) million for the full year 2015, an increase of 32%
  • Operating profit (EBIT) for the fourth quarter of 2015 was €3.3 (0.6) million, with a margin of 23% (6%), and €7.4 (2.2) million for the full year 2015, with a margin of 16% (6%)
  • Profit after Tax amounted to €2.9 (0.2) million for the fourth quarter of 2015, and €6.2 (1.0) million for the full year 2015
  • Earnings per share for the fourth quarter of 2015 were €0.099 (0.008) and €0.208 (0.037) for the full year 2015
  • Cash flow from operating and investing activities (excluding working capital) amounted to €2.8 (0.7) million for the fourth quarter of 2015 and €6.2 (2.9) million for the full year 2015

 

Record quarterly revenue and operating margin

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  • Very strong operator turnover driving Kambi’s result
  • Kambi’s highest quarterly revenue and operating margin to date
  • New contracts signed with gaming operators LeoVegas and Rank
  • Roll-out of new user interface commences

 

Kambi’s organic growth accelerated in the fourth quarter and led to the strongest quarter to date. This is continued proof of the quality of Kambi’s services, the success of our operators and the entertainment value the Kambi Sportsbook can offer their players.

In January, Kambi signed new contracts with two gaming operators, LeoVegas and Rank. We are very excited to add two renowned brands to our customer list and we see great potential for them and Kambi. Both operators are expected to go live before the start of the European Championships in June and we look forward to contributing to their success.

During the period leading up to this report, we started the roll-out of our new HTML5 client, giving the operators increased flexibility and innovation in the user interface. We are aiming to transition all our operators before Euro 2016 and we expect to add some new exciting features before the tournament.” says Kristian Nylén, CEO of Kambi.

SOURCE: Kambi Group plc.

 

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Veikkaus’ 75th Anniversary Turned Out a Year of Record Success — Profit Went Up to EUR 537 Million

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VANTAA, Finland (February 8, 2016) -- Veikkaus’ 75th anniversary was a year of success. We managed to improve our profit by 3.2 percent, the financial result attaining EUR 537.1 million. The turnover for the financial year went up to EUR 2095.3 million (+6.9%).

We have made strong investments in the development of Veikkaus’ game portfolio and digital services. This year, once again, our customers rewarded our efforts and enabled us to achieve a record high result”, says Veikkaus CEO Mr Juha Koponen.

I’m happy that, despite the overall economic situation, we were able to attain the goals that were set for us. This means that we can support the operation of Finnish art, sport, science, and youth work in the best possible manner.

Nearly half a million web players a week; registered gaming promotes responsibility

The strong growth of the digital sales channel shows how consumer behaviour is changing. Veikkaus.fi is one of Finland’s biggest consumer web stores with a turnover of EUR 925.4 million (+14.9%). Last year, we had an average of 474 000 buying customers a week in the service.

The share of the digital channels out of Veikkaus’ total sales reached over 43 percent in 2015. From the European – and even from a wider international – perspective, the share is exceptionally high,” says Mr Koponen.

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Developing better digital services for customers is a core strategic focus for Veikkaus. This is why we continue to invest in the development of the web store. In February 2015 we bought the central parts of our current web store system’s back end system. This made possible a wider and faster digital development of our products and services.

Thanks to the increase in web gaming in particular, a growing number of Veikkaus’ customers play registered. This supports responsibility and reinforces consumer protection. The share of registered gaming out of Veikkaus’ total sales reached 65.1 percent (+3,4 percentage points) at the end of the year. A total of over 167 000 Finns joined Veikkaus’ Loyal Customer Programme last year. As a result, the number of our registered customers went up to nearly 1.8 million.

In addition to working towards economic goals, Veikkaus makes long-term efforts to promote responsible gaming. As a legal operator of games, Veikkaus’ task is to channel playing towards safe and controlled domestic games. Veikkaus spent a total of EUR 7.2 million on measures supporting social responsibility and responsible gaming in 2015.

Responsibility continued to be in focus in our operations last year. We invested especially in communicating responsibility, promoting registered gaming, and training our staff in responsibility issues, says Mr Koponen.

Eurojackpot, eInstants, and Fixed Odds Betting successful, Lotto’s sales took an upward turn

Finland’s favourite game Lotto reached a turnover of EUR 436.7 million (+1.3%) in 2015. In February, we had the chance to celebrate a historic double jackpot of EUR 27.8 million in Lotto. On the record round, up to 1.5 million customers played Lotto. In Eurojackpot, there were over one million weekly players in May, as the game’s biggest possible jackpot of EUR 90 million was available for the first time. Last year, Eurojackpot established its position as Finns’ favourite along with Lotto. Eurojackpot’s turnover went up to EUR 222.9 million (+38.8%).

 The games to increase in popularity the most at veikkaus.fi were the eInstants. Their turnover amounted to EUR 159.9 million (+30.6%). Among the sports games, Fixed Odds Betting, which had been reformed the year before, experienced the greatest trend upward (turnover EUR 234.5 million; +8.2%). The more favourable terms of play that were introduced in August as a result of our customers’ wishes boosted the sales of Football Pools.

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By the end of the year, the number of customers had increased by 16% and the turnover had gone up by 8.5% as compared with the previous year. 

Prospects for 2016

Veikkaus has made a strategic commitment to continuous development, promotion of responsible gaming, and cost-efficiency. The development of the domestic purchasing power and changes in consumer behaviour continue to constitute significant sources of uncertainty to our operations. In addition, the regulations issued by authorities on the marketing of games seem to affect the retail sales in a negative way.

The plans for the merger of the Finnish gaming operators Veikkaus, Finland’s Slot Machine Association, and Fintoto will be made primarily during 2016. During the transition period, it is important that we secure smooth and high-quality customer service, as well as the continuity of the product and service development.

Veikkaus’ goal in 2016 is to improve its financial result moderately. Veikkaus’ projected profit estimate in the State Budget for 2016 is EUR 537.4 million, of which EUR 520.9 million have been earmarked for return to the State. We will also return EUR 16.5 million at the minimum in undistributed prize funds from previous years to the Ministry of Education and Culture.

We trust that our high-level expertise, long-term development, and courage to reform will guarantee a steady return for the benefit of all Finns even in the future. We believe that we will reach another record-high result in 2016,” says Mr Koponen.

For futher information please CONTACT: Veikkaus’ Communications, tel. + 358 20 750 6355.

SOURCE: Veikkaus.

 

 

Lotto24 Expands Online Offering to KENO and Syndicates

  • Daily lottery KENO can now be typed online
  • Syndicates allow higher chances of winning the Team

 

HAMBURG, Germany (February 4, 2016) - Lotto24, www.lotto24.de, the leading provider of state-licensed lotteries on the Internet, expands its product range: With KENO Lotto24 has now a more attractive lottery in the program. The lottery offers the chance to get a million profit. There is now the opportunity to participate in Lotto24 to gaming communities. Customers can play together with other customers and with little use against an individual do significantly increase the chances of winning. Both deals are first on www.lotto24.de available, the integration into the Lotto24 apps is planned shortly.

KENO is a lottery, which offers daily odds through to million profit. Here are drawn from 70 numbers 20, the customer can choose between a tap and ten numbers. The amount of profit is then dependent on the number of hits, the amount of ticked numbers and the size of the bet. In contrast to the known lottery 6aus49 and the Euro Jackpot there are fixed rates for KENO.

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Those who use 10 euros, typed ten numbers and these are among the 20 drawn will win 1 million euros. Even without a single number to have correct, customers can win: Who typed eight, nine or ten numbers and none is correct, nevertheless receives a profit. KENO is not only is the most flexible game system in Lotto24, it also offers exceptional odds: The probability of a grand prize is 1: 2.2 million. By comparison, there are nearly 1 For Lotto 6aus49: 140 million.

Also new are the Syndicates that offers Lotto24 now for Lotto 6aus49 and Euro Jackpot. By participating in Spielgemeinschaften customers many tips with lower stakes games and thus increase the chances of winning compared to single tip considerably. The range meets the desire of many customers to play on the team. Lotto24 starts with four different product types where Lotto24 customers can purchase shares. In case of winning the profits are shared, notify all members of a syndicate and the winnings automatically credited to the gaming account.

"With KENO and gaming communities, we offer our customers even more variety," says Petra von Strombeck, CEO of Lotto24 AG. "As the German market leader for online lottery, we want to offer our customers an optimal experience. The next service and products will therefore not be long in coming."

About Lotto24 AG:

Lotto24 is the leading German supplier state-licensed lotteries on the Internet (www.lotto24.de). Products include Lotto 6aus49, Spiel 77, Super 6, Euro jackpot Glücksspirale, Syndicates and KENO. Founded in 2010 Lotto24 is now the clear market leader by a wide margin over the competition. Nearly 900,000 customers have already registered with Lotto24. The company is listed since 2012 on the Stock Exchange (Prime Standard) and has its headquarters in Hamburg. As fast-growing, yet service- and customer-oriented company, it has the right to offer its customers a more comfortable, safe and modern gaming experience.

Press CONTACT: Lotto24 AG Verena von Gehlen Manager Investor & Public Relations Tel: +49 (0) 40/82 22 39 - 501 E-Mail: verena.vongehlen@lotto24.de, Internet: www.lotto24-ag.de, www.lotto24.com.

SOURCE: Lotto24

 

 

In 2015, FDJ Generated Sales of €13.7 Billion (+5.4% Growth Compared to 2014) and Started to Implement Its New Strategic Plan, FDJ 2020

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BOULOGNE, France (February 8, 2016) -- In 2015, FDJ, under the leadership of its new CEO Mrs. Stéphane Pallez, appointed in November 2014, expanded again its sales while launching a digital transformation with the strategic plan "FDJ 2020”.

Based on its strong customer base (26.3 million and large omni-channel distribution network (31,900 points of sale, together with the digital channel), FDJ recorded sales of €13.7 billion in 2015, an increase of 5.4% (to be compared with +5.2% in 2014, which included an exceptional event with the Football World Cup), more than €700 million additional sales, due to the dynamic growth of scratch games, sports betting and digital gaming.

Dynamic Activity:

  • €9 billion paid out to customers (overall Return to Player of 66%, 1 point higher than 2014), 215 winners over €1 million compared to 211 in 2014 (record win of €40 million for Euro Millions; record win of €7 million for fdj.fr)
  • Sales of scratch games at €6.3 billion (+10%)
  • Sports betting sales at almost €2.3 billion (+14%)
  • Almost €690 million commission fees payed to local neighbourhood retailers (+5.4%, increase of approximately €35 million)

 

Strategic plan "FDJ 2020": first actions implemented in 2015:

  • Digital sales (retailer network and online) increased by 19% to €570 million, or 4.1% of sales with a total of 1.3 million online customers (100,000 new online customers)
  • Launch of 3 entertaining and interactive new-generation lottery games
  • 23,000 new betting terminals to digitize the physical network
  • New partners concluded with Asmodée, You Tube/Google and Web School Factory
  • €100 million invested for the digital transformation of FDJ; €13 million invested in start-ups (Partech Ventures fund)
  • International activities: FDJ started to operate the sports betting activity of the Portuguese lottery Santa Casa de Misericordia
  • FDJ launched the program "La Ola FDJ" for UEFA-Euro 2016 and undertook to support the candidature of Paris to host the 2024 Olympics.

 

Corporate Social Responsibility:

  • €3.1 billion redistributed to the national community (+ €60 million compared to 2014)
  • Special environment-promotion game for the benefit of WWF on the occasion of COP 21 (€2.4 million on completion)
  • Reinforcement of Responsible Gaming, in particular prevention of underage gambling during the Rugby World Cup and new self-limiting and awareness support tool on the digital channel
  • Disability: deployment of the first 200 specially adapted retail units; the FDJ Foundation has also entered the "Tour de France à la Voile" yachting race with the handisport skipper Damien Seguin; partnership with the French Paralympic Committee (Comité Paralympique et Sportif Français).

 

Objectives and key initiatives for 2016:

Objectives

  • Investment of €100 million for the digital transformation of FDJ
  • Over €14 billion in sales and over 5% of digital sales
  • Attract 400,000 new customers via sports betting, in particular during UEFA Euro 2016
  • Inauguration of the automated central warehouse
  • New retailer sales organization deployed, to get direct control of the network (2/3 of bets internalized by the end of 2016, against 1/3 in 2015)
  • Investment in new innovation funds for start-ups

 

Key Initiatives

  • Digital: launch of about a dozen new-generation online lottery games; trial deployment of a digital illiko+ scratchcard in the retailer network; launch of new Loto and Euro mobile apps
  • Expansion of the sports betting product range (8 new sports and 8 new betting formulas at points of sale, thanks to the ParionsSport app) before the UEFA Euro 2016 football championship and the Olympic Games in Rio
  • Celebration of 40 years of the creation of the Loto national lottery in May 2016 and special Euro Millions events in the 2nd half of the year (exceptional draws etc.)
  • Specially themed scratch games for UEFA Euro 2016 and launch of a new game with leading French TV channel TF1
  • Responsible gaming: TV campaign to prevent underage gambling before UEFA Euro 2016

 

Stéphane Pallez, CEO of Française des Jeux, declared:

"The massively increasing popularity of scratch games, sports betting and digital gaming shows that our French clients have made a clear choice in favour of innovation and digital technology in 2015, corresponding to FDJ's efforts to reveal the full potential of these growth engines. The performance for this year has put FDJ in a good position to succeed in its digital transformation on the basis of the FDJ 2020 plan. In 2016, FDJ aims to over €14 billion in sales and a share of 5% for digital sales. The company intends also to attract 400,000 new customers via sports betting and to accelerate its investments in innovation. The development of our digital expertise will also reinforce our international ambition.

 

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Detailed results: range of games and the strategic plan FDJ 2020

France continues to be a nation where large numbers of people bet modest sums in FDJ’s mass-market games model: 26.3 million customers (26.9 in 2014) betted an average of €10 per week (€9 in 2014), or a net expenditure of €3.4.

Total player winnings increased to €9 billion (€8.5 billion in 2014), representing a payout percentage of 66%.

215 wins of more than €1 million were registered, with 10 wins greater than €10 million.

Although the retailer network continues to suffer from the decline of the newsagent and tobacconist sectors, it still boasts 31,900 points of sale (compared to 32,700 in 2014), making it the number one community retail network in France, with a presence in 11,500 districts. The retailer network's total income reached approximately €690 million (including earnings from prize payouts), up 5.4% on 2014 (approximate increase of +€35 million), or an average of more than €21,600 per point of sale (average per POS up +8%).

 

Lottery games recorded sales of €11.4 billion, an increase of +3.8%, mainly due to scratch games, which expanded by 10% and now represent 46% of total FDJ sales

Lottery games account for 83% of sales. They increased by +3.8% to attain total sales of €11.4 billion (compared to sales of €11 billion and growth of +2.9% in 2014).

The massive popularity of scratch games in France is the main basis for the growth of lottery games

Scratch games represent 46% of FDJ's total sales. The illiko brand passed the €6 billion mark to reach sales of €6.3 billion, an increase of 9.6% (as against €5.7 billion and +4.8% in 2014). The twenty or so scratchcards based on a public event or a specialized theme, whether in recurring format or one-off editions, attracted 18.6 million customers (average monthly wager of €6.5), or more than 2 billion scratchcards sold, confirming France's leading position in scratch games and the place of FDJ as expert in the domain (world number 2).

This strong growth can be explained by innovative new product launches, such as "Koh Lanta" (partnership with TF1), "Miel d'or" ("Golden Honey", a digital version of a successful game on FDJ.fr), "Solidaires pour un monde meilleur" ("Working together for a better world", a game promoting the environment and the WWF, launched to coincide with COP 21).

Another reason for this growth is the expansion of the product line and the demand for jackpots, as can be seen by the success of Cash (€500,000 jackpot) with sales of €2.2 billion (FDJ's top-selling game) and the successful launches of Jackpot (€500,000 jackpot), Saphir (€250,000 jackpot), Pactole (€200,000 jackpot) and X Multiplicator (€1 million jackpot).

 

Prize-draw games suffer from the absence of long-term cycle for Euro Millions-My Million

Draw games (Loto, Euro Millions, Keno etc.) and express draw games (essentially the AMIGO game at points of sale) represent 37% of FDJ sales. They recorded sales of €5.1 billion, as against €5.2 billion in 2014, a decline of 2.7%.

  • Standard draw games had sales of €3.6 billion. 20.1 million players wagered €3.5 per week. On the eve of its 40-year anniversary to be celebrated in 2016, Loto is confirming its resistance with sales of €1.5 billion, thanks to 5 long cycles (Loto record: €17 million won in January and November), a favourable calendar (3 Friday 13th's) and successful events such as the UEFA Euro 2016 Jackpot on 12 December and the launch of the Loto group game (1.7 million bets and an average of 3 players per group). Keno remains stable at €524 million. Euro Millions-My Million recorded sales of €1.5 billion, compared to €1.6 billion in 2014, a drop of 11%. Despite 3 first-place Euro Millions wins in France (record €40 million in July) compared to 6 in 2014, and despite the success of My Million, which created 146 new French millionaires (compared to 139 in 2014), Euro Millions
  • My Million suffered from a lower jackpot level than in 2014: average jackpot of €45 million compared to €57 million in 2014.
  • Express draw games recorded sales of €1.4 billion. 3.3 million players wagered an average of €8.2 per week. Amigo, which is the main express draw game in the FDJ range, recorded a slight increase in sales to €1.4 billion (+1.9%). The number of players increased by 600,000 (3.3 million players in 2015 versus 2.7 million in 2014), while the average weekly wager decreased to €8.2 (compared to €9.8 in 2014).

 

Sports betting, with sales of €2.3 billion, has continued to grow strongly after the 2014 Football World Cup and in the run-up to UEFA Euro 2016

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Sports betting accounts for sales of almost €2.3 billion, or 17% of total FDJ sales, up 14%, which is the largest growth rate of any FDJ product family in 2015 (compared to bets of €2 billion and growth of 20% as a result of the Football World Cup in 2014).

Sports betting attracted 3.3 million customers in 2015 (an increase of 300,000 new players), confirming that sports betting is now a mass-market business. The average weekly wager in 2015 was €13.2, compared to €12.7 in 2014.

2015 demonstrated the growing interest of the French in sport, which is becoming a social phenomenon and is benefiting the sports betting sector, as can be seen from the record TV viewing figures for major sport events. Football, which represents 72% of sales, continues to lead the field with the French and European championships. The total amount in bets registered during the 2015 Rugby World Cup tripled compared to the previous edition in 2011 (€19 million compared to €6 million).

Sports bets are available in a network of 25,880 points of sale and increased by 14.4%. Online sports betting grew by 10%.

 

FDJ is deploying a new strategic plan called "FDJ 2020: an augmented vision of FDJ"

During the 1st half-year, Mrs. Stéphane Pallez, CEO of FDJ since November 2014, conducted a strategic analysis of the future of FDJ. On 1 July 2015, this important work lead the approval by the Board of Directors of a plan titled "FDJ 2020: an augmented vision of FDJ".

From now until 2020, FDJ will invest more than €500 million, in particular in the transformation of its IT system (€250 million), the digitization of its network (€180 million), and also in the innovation ecosystem through start-up funds.

The FDJ 2020 plan also has an international ambition, with the goal of selling technologies and services to operators of games of chance and/or sports betting services.

FDJ 2020 aims to attract new customers and win back former customers through the development of digital technology both in the physical retailer network and online. This goal involves an open innovation approach, consisting in partnerships with leading companies or start-ups.

The target is to increase the number of players by 1 million over the next 5 years, to attain a total of 27.3 million customers, with a share of 20% for digitized sales (i.e. both online sales and physical network sales that include a digital element) and 10% of sales from games that introduce disruptive innovation.

During the 2nd half-year, in continuity with the actions taken during the first six months, Stéphane Pallez started work on the implementation of the FDJ 2020 plan.

  • New Partnerships in the sectors of games (Asmodée, Europe's number 2 game publisher, 200 new games per year), communication (YouTube/Google, to launch into video, digital media and social networks) and open innovation (Innovation Factory from Web School Factory, in order to enlist the younger generations, and Partech Ventures to invest €13 million in start-ups).
  • New generation of entertaining, interactive and collaborative lottery games: online launch of Gare o Loup (Watch out for the wolf), Ruée vers l'Or (Goldrush) and Duel de cartes (Card duel) in late 2015 (games that attract a new customer base of women and young adults) and new scratch games for mobile devices (Banco, Astro and Goal). In addition, FDJ is witnessing sustained growth in its web-only games (e.g. the detective-themed "Menez l'enquete"), up 10.7% in 2015.
  • New digital services: the mobile sector represents 13% of digital sales and is up 1 percentage point, 1st TV campaign on digital services, success of the new "Parions Sport" app, which enables customers to prepare their sports bets in advance (8.5% of Parions Sport sales by the end of 2015), expansion in the range of FDJ products available on web, tablets and mobile phones.

 

Digital sales will be a key indicator of the success of the new FDJ strategy. In 2015, digital sales accounted for 4.1% of total sales, increasing 19% to €567 million, compared to €3.7% sales and €478 million in 2014.

It can be noted that reinforced control of the intermediary distribution circuit between FDJ and retailers will tend to consolidate the network and increase the volume of digitized sales at the point of sale (2/3 of "internalized" bets by the end of 2016).

Sales in the retailer network not using digital services represent 96% of sales, or €13.2bn (versus €12.5bn in 2014), an increase of 5.4%.

 

A responsible and progressive company

The FDJ 2020 strategic plan also reinforces the company's CSR policy in terms of the economic, social and environmental impacts of its activity.

A model of redistribution and solidarity

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Since its creation in 1933, FDJ has been founded on a model of redistribution of income for the benefit of all. In 2015, 95% of betting revenue was distributed to: customers (66%), the intermediary distribution network and retailers (6%) and the national community (23%).

The total contribution to the national community in 2015 was €3.1 billion (+ €61 million), including more than €230 million to promote sports for all (Centre National du Développement du Sport) and to renovate the French stadiums to be used in UEFA Euro 2016.

On the occasion of COP21, FDJ launched a one-off scratch game on the theme of "working together for a better world" ("Solidaires pour un monde meilleur"), promoting preservation of the planet, with profits going to WWF (up to €2.4 million redistributed to the organization by the time game sales end in the course of 2016). In the same spirit, FDJ is continuing its efforts to reduce CO2 emissions: - 30% between 2007 and 2014.

FDJ has maintained its sports commitments: funding of sport for all (more than €230 million in 2015) and financing of construction or renovation of the stadiums that will host UEFA Euro 2016 (€150 million from 2011 to 2017), the campaign against corruption in sports (appointment of an Integrity Officer) and the promotion of French sports (undertaking of FDJ to support the Paris bid to host the 2024 Olympics, victory of FDJ cyclist Thibaut Pinot on the Alpe d'Huez section of the Tour de France etc.).

The company is also committed to a policy of Diversity:

  • Gender equality: signature of a new company-wide agreement in support of equal advancement, with the long-term objective that the proportion of women in senior management should be the same as overall in the company, i.e. 44% in 2015.

 

Disability:

  • FDJ, which for the 3rd consecutive year recorded an employment level of more than 6% for persons of impaired ability, has set itself the target of attaining this level for the entire Group by 2020 (total of 1,800 employees in 2015, with the subsidiaries FDP, LVS etc.);
  • New specially adapted retail facilities at its points of sale (200 already deployed, 26,000 by 2020);
  • Participation of the FDJ Foundation in the yachting race "Tour de France à la Voile" with handisport skipper Damien Seguin;
  • Signature of a partnership with the French Paralympics Committee (Comité Paralympique et Sportif Français).

 

A balanced gaming model

The FDJ 2020 plan reinforces the company's commitments concerning responsible gaming, making use of the potential offered by digital technology. A new version of the Playscan software in 2015 provided support to players on the digital channel, with the possibility of individually programming controls on their gaming habits and also setting personal limits. A Big Data pilot project is in progress.

In addition to maintaining its links with civil society (for example the family and teacher information and support network "Fédération Nationale des Ecole des Parents et Educateurs" etc.), universities (Université Paris Descartes) and NGOs (SOS Joueurs, E-enfance etc.), FDJ in 2015 reinforced its actions for the prevention of underage gambling, in particular during the Rugby World Cup and during its Summer Tour, together with its actions in favour of a recreational approach to gambling (communication campaign on TV to promote gambling moderation services).

Close monitoring of games and the integrity of the network remain top priorities. More than 32,000 inspections of points of sale were carried out in 2015 to verify their conformity to the security, customer relations and responsible gaming requirements of FDJ. To reward best practise, a total of €25 million was paid out in responsible gaming bonuses to retailers in the network.

SOURCE: FDJ

 

 

OLG Wants You to Play Smart

Playsmart is a Comprehensive Gambling Education Resource

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TORONTO, Ontario, Canada (February 8, 2016) -- Does buying more lottery tickets for a big jackpot help your chances of winning? Is there such a thing as a “hot” slot machine?  The answer to these questions and more can now be found by using a new program from Ontario Lottery and Gaming Corporation (OLG) called PlaySmart.

PlaySmart is a suite of innovative resources providing our customers with tools, advice and information to help them play smart.

As global leader in Responsible Gambling (RG), OLG has designed PlaySmart to become Ontario’s most relevant and comprehensive gambling education resource.

PlaySmart’s goal is to help gamblers, new and seasoned, to better understand key gambling concepts, to know how the games work, and to base their play budgets on informed choices. In the coming years, OLG will expand PlaySmart by adding more resources it currently provides directly to players.

PlaySmart builds on OLG’s years of experience developing and managing Responsible Gambling programs,” says Paul Pellizzari, OLG’s Executive Director Policy & Social Responsibility.

It’s important to realize that all players can benefit from understanding the games they play. We want to provide the right information to the right players at the right time. We want you to play smart to keep gambling fun.”

Examples of PlaySmart tools and resources include:

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  • PlaySmart.ca: An online resource, providing Ontarians with comprehensive gambling education about how games work.
  • My PlaySmart Tools:  Slots outfitted with technology to allow the player to set spending and time thresholds on their play.
  • ATM Messaging:  ATM screens at pilot gaming sites updated with useful tips from Credit Canada to encourage players to reflect on gambling spend.
  • Educational print and digital messages: Customers can access PlaySmart at all OLG’s lines of business
  • Slots and Casinos, lottery retailers, PlayOLG.ca and at 31 Charitable Gaming Centres across the province.

 

Also, other existing RG programs, such as the Responsible Gambling Resource Centres at 53 slot, casino and charitable gaming centres in Ontario will be redeveloped as PlaySmart centres.

While PlaySmart helps people make better informed decisions about gambling, for players who have more serious issues with gambling, OLG provides information, assistance and referrals to free support services across the province,” said Mr. Pellizzari.

In 2015, OLG's RG program was acknowledged by the World Lottery Association (WLA) as the Best Overall Responsible Gaming Program in the world. In addition, all OLG Slots and Casinos have earned RG Check accreditation by the Responsible Gambling Council. RG Check is recognized as the most rigorous Responsible Gambling (RG) accreditation program in the world.  

More information is available on PlaySmart.ca, Facebook, Twitter and YouTube.

About OLG

OLG is a provincial agency responsible for gaming facilities, the sale of province-wide lottery games, the PlayOLG Internet gaming website and the delivery of bingo and other electronic gaming products at Charitable Gaming Centres across the province. Since 1975, OLG has provided nearly $42 billion to the Province and the people of Ontario. OLG’s annual payments to the province have helped support the operation of hospitals; prevention, treatment and research of problem gambling; amateur sport through the Quest for Gold program; and local and provincial charities.

OLG was a Premier Sponsor of the TORONTO 2015 Pan Am / Parapan Am Games.

CONTACT: Olg Media Relations, Phone: 1-888-946-6716.

SOURCE: OLG.

 

 

Council of Europe “Keep Crime out of Sport” Project

European Lotteries Association (EL) Joins a Strong Network of Partners in a Far-Reaching Pan-European Project on Sports Integrity

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LAUSANNE, Brussels (February 2016) -- The project “Keep Crime out of Sport – Together against sports competitions manipulations” (KCOOS), led by the Council of Europe, and funded by the European Commission and the Council of Europe was inaugurated on 9-10 February in Brussels. The project will seek to explore innovative approaches aimed at fighting the manipulation of sports competitions, promote the Council of Europe Convention on the Manipulation of Sports Competitions (the Convention), raise awareness and exchange experience and good practices on the fight against match fixing and illegal betting, assist with the transposition of Convention requirements into states and encourage better international cooperation.

The Convention provides for a complete set of provisions that address different issues, such as education and prevention, domestic co-ordination, good governance principles and conflict of interests, exchange of information, setting up of national platforms, criminal sanctions etc. The Convention also facilitates the effective fight against illegal betting, (“any sports betting activity whose type or operator is not allowed under the applicable law of the jurisdiction where the consumer is located”), as it invites Parties to consider adopting measures against illegal betting, like IP blocking, payments blocking and advertising ban.

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EL President Hansjörg Höltkemeier states: “Driven by our core principles: integrity, solidarity and precaution, EL has been in the forefront of the fight against match-fixing for years and this project is fully in line with the aforementioned principles. The Council of Europe Convention on the Manipulation of Sport Competitions is currently the most elaborate initiative world-wide against match-fixing and EL encourages all states to consider signing it. EL, as an associated partner of the project, will be actively supporting and contributing to the project activities, which we are convinced, will constitute a very positive step in the on-going fight against match-fixing and illegal betting.”

Through the KCOOS, the Council of Europe and the project partners, shall provide maximum visibility and information on the Convention in order to encourage further signatures and notably ratifications. The development of capacity building in terms of the implementation of the Convention, which includes support to the setting up of national platforms and regulatory authorities, the facilitation of exchange of information and the strengthening of the institutional capacity of relevant authorities, is a key element of this project.

To find out more about the project CONTACT: Email: sport.kcoos@coe.int. The project can be followed on twitter: @KCOOS_coe

EL CONTACTS: Evangelos Alexandrakis, EL Sport Executive Secretary, Lausanne,

Tel: + 41.(0)21.311.30.25, el-sport@european-lotteries.org or Jutta Buyse, EL General Delegate, Brussels, Tel: + 32.(0)2.234.38.20, jutta.buyse@european-lotteries.eu.

About European Lotteries (EL)

European Lotteries (EL) is the European umbrella organisation of national lotteries operating games of chance for the public benefit. EL has members from 45 European countries including all 28 EU Member States.

The association’s EU members contribute more than 20 billion € p.a. to the state budgets and the funding of sport, culture, social projects, research and other causes of general interest. Unlike many commercial online gambling operators, EL members only offer gambling and betting services in the jurisdictions in which they are licensed by the respective national government.

SOURCE: European Lotteries (EL).

 

 

UK National Lottery Operator Uses eGain’s Chat and Knowledge Management Solutions to Enhance Digital Customer Service Experience

SUNNYVALE, CA and Slough, UK (February 1, 2016) -- eGain (NASDAQ: EGAN), the leading provider of cloud-based customer engagement solutions, today announced that Camelot UK Lotteries Limited (‘Camelot’) has selected it for proactive, knowledge-guided consumer web chat as part of the company’s ongoing digital transformation initiative.

Camelot operates the UK National Lottery, which is Europe’s most cost-efficient major lottery as well as the largest online lottery in Europe in terms of sales.

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In operating The National Lottery, Camelot delivers, on average, over £34 million each week to Good Causes and, to date, National Lottery players have raised over £34 billion for lottery-funded projects.

With over seven million players, national-lottery.co.uk is one of the top 10 e-commerce sites in the UK. However, much of its customer service is currently provided over the phone.

As the first step, Camelot has deployed eGain Superchat™ to provide real-time service to players, while making intelligent, contextual offers for service.

Moreover, the deployment will include eGain’s award-winning omnichannel knowledge platform, which will enable Camelot to provide intelligent and consistent service across voice and digital touchpoints, while further improving efficiencies by shifting interactions from voice to digital.

Digital and knowledge are a one-two punch in transforming customer service,” said Ashu Roy, eGain CEO. “We look forward to helping Camelot with its digital journey in order to boost revenue, reduce costs, and contribute even more to the Good Cause projects that the UK National Lottery was set up to support.”

About eGain

eGain customer engagement solutions power digital transformation for leading brands. Our top-rated cloud applications for social, mobile, web, and contact centers help clients deliver connected customer journeys in a multichannel world.

To learn more about us, visit www.egain.com.

SOURCE: eGain.

 

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KDF and Kentucky Lottery Looking for the 2016 Festival Fanatic

LOUISVILLE, Kentucky (February 11, 2016) -- The Kentucky Derby Festival and Kentucky Lottery are joining forces to name someone the 2016 Festival Fanatic!  One lucky winner, as part of a second-chance promotion, will have the opportunity to claim nine individual Festival experiences ranging from VIP treatment and a ride down Broadway in the Republic Bank Pegasus Parade to being the Thundernator for the Festival’s Opening Ceremonies – the person who activates the fireworks sequence and starts Thunder Over Louisville.

The Festival Fanatic promotion is unique in that one of our players will win a group of experiences unlike anything else we could ever offer. You can’t buy this stuff!” said Chip Polston, Vice President of Communications for the Kentucky Lottery Corporation.

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Every year we look forward to meeting our Festival Fanatic, and this year is no exception. It’s always so much fun to see our winner get to kick off Thunder, ride in a hot air balloon, be a VIP at countless events…this promotion truly creates a lifetime of Derby Festival memories.”

To enter the promotion, players must sign-in or register for a Fun Club Rewards account at kylottery.com.  Players must be in compliance with all requirements of the Fun Club Rewards terms of use, including requirements for registering for or updating an existing account in order to submit tickets to enter a promotion.  Once logged in, a player will be able to submit an eligible Lucky for Life ticket worth $2 or more for a chance to be named Festival Fanatic. (Lucky for Life tickets must be purchased between February 15, and March 24, 2016 to be eligible.) All entries must be received by 11:59 P.M. E.S.T. on March 26, 2016.

The drawing for the “Festival Fanatic” will take place on March 30. The prize package includes nine Derby Festival experiences.  Some of those prizes include being the 2016 Thunder Over Louisville Thundernator, a hot air balloon ride, seats on Millionaires Row during Celebrity Day at the Downs and $500 spending money!  For a complete list of prizes, visit www.kylottery.com.

Being the Festival Fanatic is the experience of a lifetime,” said Mike Berry, KDF President & CEO. “We’ve enlisted the help of the Kentucky Lottery, because they’re the best in the business at giving away valuable prizes. We can’t wait to meet the winner and share with them the excitement Festival brings to Louisville.”

Thunder Over Louisville – the Derby Festival’s Opening Ceremonies – is one of nearly 70 events produced by the Derby Festival in the spring. The 2016 show is set for Saturday, April 23, and will be the will be the 27th annual production.

The Kentucky Derby Festival is an independent community organization supported by 4,000 volunteers, 400 businesses and civic groups, Pegasus Pin sponsorships and event participation. It entertains more than 1.5 million people in a two-to three-week period every spring.

SOURCE: The Kentucky Derby Festival press release.

 

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2015 World Championship Royals Trophy Coming to Kansas

TOPEKA, Kansas (February 11, 2016) -- The 2015 World Championship Royals Trophy is on its way to Kansas next week!  Presented by the Kansas Lottery and the Missouri Lottery. the Kansas City Royals World Series Powerball Trophy Tour is visiting locations throughout the Midwest this month.

In conjunction with sponsors Academy Sports + Outdoors, Pepsi and Planet Fitness, the trophy is making several stops across Kansas, Missouri, Iowa and Nebraska.

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Fans can see the trophy in person at each stop and also have their photo taken with the trophy on a first-come, first-served basis. 

To see the entire schedule of Trophy Tour steps, visit www.royals.com/trophytour.

In order to accommodate as many people as possible, photo opportunities will only be available as either an individual or group shot.

Fans will also have the opportunity to have a professional photo taken and can purchase those photos on-site and online at www.royals.com. A portion of all professional photo purchases benefit Royals Charities.

At the four locations presented by the Kansas Lottery (Pittsburg, Hays, Hutchinson and Topeka), Kansas Lottery representatives will be handing out Kansas Lottery squishy baseballs while supplies last, along with information on a new Royals instant game the Kansas Lottery is launching in April.

At select stops, the trophy will be joined by Sluggerrr and KayCee, the Royals Hall of Fame baseball character.

Fans attending the Trophy Tour can also receive a free Pepsi Cherry Vanilla courtesy of Pepsi Cola while supplies last.

CONTACT: Sally Lunsford, Director of Public Affairs, Kansas Lottery, Email: sally.lunsford@kslottery.net, T: 785-296-5708.

SOURCE: Kansas Lottery.

 

 

Association of Gaming Equipment Manufacturers Release January 2016 Index

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LAS VEGAS, Nevada (February8, 2016) - After ending 2015 on a positive note, the AGEM Index reported a decline in the first month of 2016, largely due to broader market declines that emerged. The composite index stood at 188.46 at the close of January 2016, which represents a decline of 8.86 points, or 4.5 percent, when compared to December 2015. However, compared to a year ago, the AGEM Index reported an increase of 6.57 points, or 3.6 percent, in the latest period.

In January, 10 of the 14 global gaming equipment manufacturers reported month-to-month declines in stock price, with three down by more than 30 percent. Of the four manufacturers who reported gains in stock price during the month, only one was up by more than five percent.

The broader stock markets experienced increased volatility and material declines during the month, with each of the major indices down more than five percent when compared to December 2015. The S&P 500 ended January 2016 at 1,940.24, which represents a decline of 5.1 percent from the prior period. The Dow Jones Industrial Average reported a 5.5-percent decrease, falling to 16,466.30. NASDAQ experienced the greatest decline, falling 7.9 percent to 4,613.95.

Selected positive contributors to the January 2016 AGEM Index included the following:

With a stock price of EUR 1.19 (+1.7 percent), INTRALOT S.A. (INLOT) contributed 0.10 points.

Astro Corp. (3064) contributed 0.03 points, due to its 7.7-percent increase in stock price to NT$19.60.

Selected negative contributors included the following:

  • International Game Technology PLC (IGT) contributed negative 3.77 points, due to a 10.6-percent decline in stock price to $14.47.
  • Scientific Games Corporation (SGMS) reported a stock price of $5.92 (-34.0 percent) and contributed negative 2.15 points.
  • With a stock price of $2.81 (-36.0 percent), Everi Holdings Inc. (EVRI) contributed negative 0.83 points.

 

Gaming equipment manufacturers are continuing to witness the effects of consolidation within the industry. During the past two years, there have been a handful of major mergers, including Bally Technologies' purchase of SHFL Entertainment, Scientific Games Corporation's (SGMS) acquisition of WMS Industries and Bally Technologies, Global Cash Access' purchase of Multimedia Games, and the merger between International Game Technology (IGT) and GTECH Holdings. There have been a number of smaller mergers, acquisitions and corporate consolidations within the gaming equipment manufacturing industry as well.

Most recently, Ainsworth Game Technology (AGI) completed its acquisition of Nova Technologies, LLC in January 2016. Based in South Carolina, Nova Technologies is a Class II slot manufacturer that provides machines to Native American casinos. The acquisition was the third purchase of a Class II slot company to occur since the end of 2014. In October 2014, Aristocrat Technologies (ALL) completed its $1.3 billion purchase of Video Gaming Technologies, Inc. American Gaming Systems followed in June 2015 by completing its $382 million acquisition of Cadillac Jack.

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Ainsworth purchased Nova Technologies for $38 million, giving the company an opportunity to expand within the Native American gaming market. The acquisition brings the total number of gaming units Ainsworth operates in North America to over 2,800, with 1,425 units coming directly from Nova Technologies.

Nova's slot manufacturing business will be transferred to Ainsworth's new 291,000-square-foot headquarters in Las Vegas, Nevada, which is currently under construction with completion expected in the second quarter of 2016.

International Game Technology (IGT) continues to undergo major changes following its $6.4 billion merger with GTECH Holdings. In December, the company finalized the sale of its headquarters in southwest Las Vegas to Panattoni Development for $75 million. The 610,000-square-foot building, which sits on nearly 38 acres, sold less than a year after being listed. IGT signed a long-term lease for the 300,000-square-foot office space, and the roughly 300,000-square-foot warehouse will be marketed for lease. The company also announced manufacturing facility closures in Coventry, Rhode Island, Canada and Austria.

IGT will be consolidating its manufacturing operations into its 1.2-million-square-foot facility in Reno, Nevada. The company's corporate headquarters is located in London, and it is maintaining operating headquarters in Las Vegas, Rome and Providence, Rhode Island.

Corporate consolidations within the gaming equipment manufacturing sector are not unusual. Similar to other industries, the recent trends provide an opportunity for emerging technologies and brands to reach a broader audience and leverage existing infrastructure.

The AGEM Index

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The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 14 global gaming suppliers throughout the world. A total of 9 suppliers are based in the United States and are listed on the NYSE, Nasdaq or OTC market, while two trade on the Australian exchange, one supplier trades on the Athens exchange, one on the Tokyo exchange, and another trades on the Taiwan OTC exchange. The index is computed based on the month-end stock price (adjusted for dividends and splits) of each company and weighted based on approximation of market capitalization. Market capitalizations for manufacturers trading on foreign exchanges have been converted to US dollar-equivalents as of month-end for comparability purposes. The AGEM Index is based on a 100-point value as of January 2005.

About AGEM

AGEM is an international trade association representing manufacturers of electronic gaming devices, systems, lotteries, and components for the gaming industry. The Association works to further the interests of gaming equipment manufacturers throughout the world. Through political action, tradeshow partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM and its member organizations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.

AGEM Index

The AGEM index and overview is prepared by Applied Analysis (AA). AA is a Nevada-based advisory services firm providing consultation services for public and private entities. The company utilizes extensive experience in economics, information technology and finance to provide a wide range of services, including urban economic consulting, financial advisory services, market analysis, public policy analysis, hospitality industry and gaming consulting, and information system and technology consulting.

For More Information, CONTACT: Marcus Prater, Executive Director, Phone: 702.812.6932.

SOURCE: The Association of Gaming Equipment Manufacturers (AGEM).

 

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Despite Severe Winter Storm Pennsylvania Slot Machine Revenue Up

HARRISBURG, Pennsylvania (February 5, 2016) -- The Pennsylvania Gaming Control Board today posted on its web site the monthly report for total gross revenue and tax revenue generated from the play of slot machines at casinos during January.

According to the report, gross revenue from slot machines at the 12 casinos rose 2.1% in January of this year to $184,811,874 compared to the $180,963,004 in gross revenue that was generated in January 2015.

Prior to the winter storm blanketing most of Pennsylvania during the next to last weekend of the month, slots casino revenue was up almost 5% when comparing the first 21 days of January 2016 against January 2015. While most casinos were able to remain open during the storm, difficulties for patrons in reaching the facilities led to weekend revenues that were much lower than normal.

Gross slot machine revenue for each of the casinos is as follows, with the percentage change reflected over the previous year:

 

Casino January 2016 January 2015 % change
Mohegan Sun Pocono $17,677,453.11 $16,030,986.86 10.27%
Parx Casino $30,922,297.64 $29,894,105.37 3.44%
Harrah's Philadelphia Casino and Racetrack $17,141,474.04 $17,175,204.39 -0.20%
Presque Isle Downs and Casino $7,864,975.14 $7,959,881.91 -1.19%
The Meadows Racetrack and Casino $17,454,006.15 $15,899,154.43 9.78%
Mount Airy Casino Resort $11,106,784.27 $9,990,339.60 11.18%
Hollywood Casino at Penn National Race Course $16,061,315.97 $16,722,413.86 -3.95%
Sands Casino Resort Bethlehem $23,396,475.97 $22,996,965.35 1.74%
Rivers Casino $21,396,528.36 $22,258,968.82 -3.87%
SugarHouse Casino $13,709,240.99 $13,721,473.62 -0.09%
Valley Forge Casino Resort $6,141,249.34 $6,203,535.82 -1.00%
Lady Luck Casino Nemacolin $1,940,072.78 $2,109,974.45 -8.05%
Statewide Total $184,811,873.76 $180,963,004.48 2.13%

 

Tax revenue in January of this year was $98,750,980*.

The average number of slot machines operating throughout Pennsylvania was 26,229 in January 2016 compared to 26,355 in January 2015.

 

*Tax revenue figures reflect amount generated prior to any adjustments by the PA Department of Revenue

 

About the Pennsylvania Gaming Control Board:

The Pennsylvania Gaming Control Board was established in 2004 and is tasked to oversee all aspects of the state’s casino industry. There are 10 stand-alone and racetrack casinos in operation, along with the two resort casinos.  These facilities collectively employ over 17,000 people and generate an average of $3.7 million per day in tax revenue from slot machine and table games play. The largest portion of that money is used for property tax reduction to all Pennsylvania homeowners with additional tax revenue going to the horse racing industry, economic development projects, fire companies, county fairs, water and sewer projects, the Commonwealth’s General Fund, and to local governments that host casinos.

Additional information about both the PGCB’s regulatory efforts and Pennsylvania’s casino gaming industry can be found at: www.gamingcontrolboard.pa.gov.

You can also follow the agency on Twitter by choosing @PAGamingControl.

SOURCE: The Pennsylvania Gaming Control Board.

 

Maryland Casinos Generate $88.36 Million in Revenue During January

Baltimore, Maryland (February 5, 2016) – Maryland Lottery and Gaming today announced January 2016 revenue numbers for the state’s five casinos – Hollywood Casino Perryville in Cecil County, Horseshoe Casino Baltimore in Baltimore City, Casino at Ocean Downs in Worcester County, Maryland Live Casino in Anne Arundel County, and Rocky Gap Casino Resort in Allegany County. January 2016’s combined statewide revenue totaled $88,361,884.

Hollywood Casino Perryville generated $5,513,627 from both slot machines and table games in January.  Gross gaming revenue per unit per day was: $181.96 for slot machines, $1,770.08 for banking table games and $293.91 for non-banking table games.  Hollywood Casino’s January 2016 revenue decreased by $489,577, or 8.2%, from January 2015.  Hollywood Casino Perryville operates 844 slot machines and 22 (12 banking and 10 non-banking) table games. 

Horseshoe Casino Baltimore generated $23,652,019 from both slot machines and table games in January. Gross gaming revenue per unit per day was: $180.59 for slot machines, $2263.82 for banking table games and $906.03 for non-banking table games. Horseshoe Casino’s January 2016 revenue increased by $494,231, or 2.1%, from January 2015.

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Horseshoe Casino Baltimore operates 2,202 slot machines and 176 (151 banking and 25 non-banking) table games. 

Maryland Live Casino generated $52,145,821 from both slot machines and table games in January.  Gross gaming revenue per unit per day was: $253.16 for slot machines, $3,937.37 for banking table games and $1,320.11 for non-banking table games. Maryland Live’s January 2016 revenue increased by $2,693,600, or 5.5%, from January 2015. Maryland Live Casino operates 3,974 slot machines and 206 (154 banking and 52 non-banking) table games.

Casino at Ocean Downs generated $3,721,728 from slot machines in January, and its gross gaming revenue per unit per day was $149.84.

Casino at Ocean Downs’ January 2016 revenue increased by $342,097, or 10.1%, from January 2015.  Casino at Ocean Downs operates 800 slot machines, and does not have table games.

Rocky Gap Casino Resort generated $3,328,688 from both slot machines and table games in January.  Gross gaming revenue per unit per day was: $139.91 for slot machines and $995.04 for banking table games.

This facility does not have non-banking table games.

Rocky Gap Casino Resort’s January 2016 revenue increased by $354,813, or 11.9%, from January 2015. Rocky Gap Casino Resort operates 631 slot machines and 19 table games. 

In a year-to-year comparison, January 2016 casino revenue increased from January 2015 by $3,395,164, or 4%.  See attached document (or click HERE) for a detailed breakdown of January 2016’s fund disbursement, fiscal year-to-date totals for the individual casinos and combined state total.  

Maryland Lottery and Gaming is responsible for all matters relating to regulation of the state’s casinos.  In this regulatory role, the agency oversees all internal controls, auditing, security, surveillance, background investigation, licensing and accounting procedures for the facilities.

To keep Marylanders informed and maintain integrity and transparency in its regulation of the state’s casinos, Maryland Lottery and Gaming posts monthly financial reports on casino revenue on its website, gaming.mdlottery.com.

For Information, CONTACT: Carole Everett, 410-230-8725 (office), 410-365-6384 (cell), Email: carole.everett@maryland.gov.

SOURCE: Maryland Lottery and gaming.

 



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