October 2004 PUBLIC GAMINGINTERNATIONAL World’s most widely read Lottery-Racino-Gaming magazine • Video, Racino, Casino, Internet, Wireless, Online, Scratch-Off NASPL Canadian Casinos G2E Canadian Casinos • Special G2E and NASPL Conference Edition • Iowa Launches Electronic Game Card October 2004 PUBLIC GAMINGINTERNATIONAL October 2004 PUBLIC GAMINGINTERNATIONAL World’s most widely read Lottery-Racino-Gaming magazine • Video, Racino, Casino, Internet, Wireless, Online, Scratch-Off Features NASPL Canadian Casinos G2E 8 Canadian Casino Overview 10 Iowa Market Test: The Instant-Scratch Game Goes Electronic The Iowa Lottery becomes the first U.S. lottery to try the electronic game card. 12 The Manitoba Lotteries Corporation – VLT Profile Canadian Casinos • Special G2E and NASPL Conference Edition • Iowa Launches Electronic Game Card Delivering video excitement in a responsible package. On the Cover: Manitoba VLTs; Loto-Québec CEO, 14 Lotto 6/49: A Big Change Brings Big Results Alain Cousineau; Iowa EGC; Scuba The Provinces upped the price of 6/49 to $2. shot adapted from Nationl 16 The Interactive Gaming Environment Oceanic and Atmospheric How worldwide lotteries are using the interactive platforms for play and sales. Administration photo. Departments Product Innovations Publisher’s Page 2 20 The Importance of R&D Around the World 4 21 MDI: Welcome to NASPL ‘04 Industry News 6 22 Slovakian Internet Explosion Gaming Legislation Update 13 TIPOS a.s. cyber sales figures triple in ‘03/’04. Video News 24 On the internet 25 Public Gaming International is now also available on the web. Lottery News 26 www.publicgaming.org Lottery People 26 RoundUp 27 PUBLIC GAMING INTERNATIONAL ADVERTISING SALES PUBLISHER CEO/CHAIRMAN CIRCULATION VICE PRESIDENT OF MARKETING VICE PRESIDENT OF SALES Duane V. Burke Duane V. Burke Tel: (425) 985-3159 Susan Burke Raquel Orbegozo EDITOR DIRECTOR OF OPERATIONS (800) 493-0527 Tel: (425) 985-3159 Tel: (425) 765-4119 Todd Koeppen Susan Jason Fax: (206) 232-2564 (800) 493-0527 (800) 493-0527 ART DIRECTOR EXECUTIVE VICE PRESIDENT (800) 657-9340 VICE PRESIDENT OF SALES Fax: (206) 232-2564 L. Robinson Doris J. Burke Molly Gilmore (800) 657-9340 FORMER DIRECTOR Tel: (425) 283-6950 Ralph Batch (800) 493-0527 Public Gaming International (ISSN-1042-1912) October 2004, Volume 30, No. 10. Published monthly by the Public Gaming Research Institute, Inc., 218 Main Street, #203, Kirkland, WA 98033. (425) 985-3159. ANNUAL SUBSCRIPTION RATES: United States: $145. Canada & Mexico: $160(U.S.). All other countries: $225(U.S.). POSTMASTER: Send address changes to Public Gaming International, 218 Main Street, #203, Kirkland, WA 98033. SUBSCRIPTION REQUESTS: Sent to same address. NOTE: Public Gaming International is distributed by airmail and other expedited delivery to readers around the world. ©2004 All rights reserved. Public Gaming Research Institute. E-mail: [email protected] Web site:www.publicgaming.org PUBLISHER’SPUBLISHER’S PAGEPAGE Oh Canada, Oh Canada . I am a patriotic American but sometimes I think that we should sing the national anthem of Canada to remind ourselves what … great neighbors we have to the north - Canada. Not only are Duane V. Burke, they great but also they are very smart! Publisher & CEO of PGRI The provincial governments in Canada have been very smart in the ways in which they have implemented gaming to benefit good causes. They started by recognizing the importance of treating the operations of lotteries and gaming under the auspices of government as being businesses. From that recognition grew the organizational structure for such enterprises known as, "Crown Corporations" – in other words, companies that are owned by the provincial gov- ernments but operated like businesses. This form gives the organizations the flexibility to operate like businesses even though ultimate control is with the government and all "profits" go to good causes as defined by government. With this has come greater stability of key management in the organizations, the incentives and the time to do long range planning and the continuity necessary to carry-out long range research and development projects to increase revenues. With this structure and strength of management and staff, it has also been possible for these crown corporations in Canada to successfully implement or absorb virtually all types of lotteries and gaming available in the world today. Today these Canadian Crown Corporations operate a wide range of lottery games, sports betting, video lottery salons, casinos, racetracks, racinos, CD based games, monitor games, internet games, cross-track betting and off-track betting - -– and all very successfully, I might add. In addition, they are continually researching new gaming developments and opportunities for possible application in their provinces. State governments in the US and governments elsewhere in the world would do well to examine closely how these Canadian Crown Corporation work and find ways to emulate them. The Canadian way is, obviously, not the only way for government sponsored gaming to be successful but it is certainly one of the best ways that you will find in the world and is worth studying and copying where applicable. This issue of Public GAMING International magazine contains two great feature articles on gaming in Canada. I hope that you enjoy and gain from them. Clint Harris to Minnesota Congratulations to Clint Harris for being chosen to head the Minnesota Lottery. Minnesota Governor Tim Pawlenty has announced Clint Harris as the new director for the Minnesota Lottery. Harris, who until now was the director for the South Dakota Lottery, will replace Michael Vekich, who had been filling the post since the death of George Andersen in early 2004. We know that you will do a great job Clint. We also know that you will survive the Minnesota winters because you come from South Dakota! Public GAMING International Magazine Goes to NASPL, G2E & WLA Now that Public GAMING International has broadened its scope to encompass all types of gaming that are sponsored by government for good causes, we are distributing it at all major gaming meetings. This year that includes the largest gaming trade show in the world, G2E in Las Vegas, the annual conference and trade show of the North American Association of State and Provincial Lotteries in Quebec City, Canada and the World Lottery Association conference and trade show in Durban, South Africa. Next year you will find Public GAMING International Magazine at every major gaming conference in the world. These special distributions, coupled with the monthly distribution of 20,000 copies via print and electronic media, make Public GAMING International magazine the world’s most widely distributed magazine for gaming professionals. And thanks to our weekly, "International MORNING REPORT", which is a supplement to our monthly Public GAMING International magazine, it can truly be said, "WE GO EVERYWHERE, EVERY WEEK!" Let Public GAMING International go there for you! ◆2 Public Gaming International October 2004 With over 10 years of experience and millions of player transactions,let us show you just how easy getting started with SCS can be. UND O T Bulgaria million after seven consecutive weeks of rollovers. The jackpot was a The gold dust is finally settling in towering 75% higher than the previous highest jackpot, $80 million, R H Bulgaria, where a player has won the reached in 1999. E country’s biggest jackpot ever – BGN A Mexico 5 million. The jackpot rolled for GTECH signed a six-year integrated services contract on September W more than 15 weeks, causing D 6 with Pronosticos para la Asistencia Publica (Pronosticos) to provide O L Bulgarians, and others in neighboring R equipment and services for a new online lottery system and associated countries, to wait in long lines for tickets. telecommunications network in Mexico. The new contract, expected to The second highest jackpot in Bulgarian his- tory was BGN 2.83 million, won in 1999. commence on September 5, 2005, includes a two-year extension option and is the result of a competitive procurement. Under the terms of the China new contract, GTECH will replace Pronosticos' existing lottery system In August, in cooperation with Shanghai Welfare Lottery Issuing with new central system hardware and add the Company's ES Connect™ Center (SWLIC), WinWin Gaming Inc. launched its "Slam Dunk" lot- software. GTECH will also provide Pronosticos with approximately tery television game show. The show airs on Shanghai Oriental TV 4,800 Altura® terminals and 3,200 Altura® LVT Plus terminals. In addi- (OTV) Arts Channel in Shanghai, China. The TV show is tied to the tion, approximately 3,000 Altura LVT terminals will be installed in new 'Slam Dunk' instant ticket lottery games, which the company success- retailer locations. It is anticipated that Pronosticos will grow from its fully launched on July 11, 2004. The "Slam Dunk" game show will run current terminal base of 7,500 to approximately 11,000 during on a weekly basis and will be produced by Sande Stewart Television Inc. GTECH's fiscal year 2006. France On September 1, La Française des Jeux introduced a new sports bet- Slovakia ting game formula, Loto Foot 7&15, which replaces the former Loto Slovakia’s state lottery company TIPOS a.s. generated a revenue of Foot. Two new formulas are now offered to players: 7 or 15 predictions. 1.4 billion Slovak crowns (SKK) (US$42.9 million) from lottery games With the first one, the player can often win. With the second, the play- for the first half of 2004, an increase of 6.75 % over last year. The com- er can win more than before. A player that bets on both game formulas pany's revenue from lottery games for the period exceeded forecasts by on the same playslip will be given two receipts, one for the 7 and one 4.5 %. The main reason for the increased lottery game sales is LOTO for the 15.