18950_PublicGaming 10/27/04 3:18 PM Page c1 November 2004 PUBLIC GAMINGINTERNATIONAL World’s most widely read Lottery-Racino-Gaming magazine • Video, Racino, Casino, Internet, Wireless, Online, Scratch-Off WLA Delaware North Racino Companies 2004 Canadian Internet Sales Delaware North and the Racino Revolution, Special WLA and Racino 2004 Conference Edition, Canadian Provinces Launch Internet Sales 18950_PublicGaming 10/27/04 3:18 PM Page c2 18950_PublicGaming 10/27/04 3:18 PM Page 1 November 2004 PUBLIC GAMINGINTERNATIONAL Features 6 Expanding Markets Gaming industry legend, Len Ainsworth, shares insights about the global gaming explosion. 8 Delaware North and the Racino Revolution 10 South Africa: A Growth Oriented Public Gaming Market PGRI talks about the South African gaming market: A history, lotteries and limited video. On the Cover: 12 Atlantic Lottery Introduces PlaySphere to Atlantic Canada Finger Lakes Gaming and Internet sales commence in the Atlantic provinces. Raceway; Norsk Tipping CEO, 13 British Columbia Lottery Corporation Offers Select Lottery Games Through the Internet Reidar Nordby, Jr.; ALC PlaySphere site 14 A Legal Leg to Stand On Martin Owens Jr. talks about internet gambling law. Departments Product Innovations 16 The Internet: A New Distribution Channel Publisher’s Page 2 18 KEBA: Providing Solutions for All Types of Lotto and Sports Lottery Games 20 ‘Tis the Season Industry News 4 PGRI presents the first installment of a feature on holiday instants. Around the World 6 Video News 24 Public Gaming International is now also available on the web. On the internet 25 www.publicgaming.org RoundUp 26 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) 935-3159 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) 985-3159 Ralph Batch (800) 493-0527 Public Gaming International (ISSN-1042-1912) November 2004, Volume 30, No. 10. Published monthly by the Public Gaming Research Institute, Inc., 218 Main Street, #203, Kirkland, WA 98033. (425) 935-3159. 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 18950_PublicGaming 10/28/04 2:36 PM Page 2 PUBLISHER’S PAGE KEEP GOING AND GROWING By Duane V. Burke, CEO/Publisher … Duane V. Burke, Publisher & CEO of PGRI In keeping with Public GAMING games. In a related story, Martin Owen, Jr. talks International magazine's commitment to about Internet gambling law. "Go everywhere", this issue will be distrib- uted at conferences in three different gam- Special Editorial Focus for December ing venues this month, Toronto, Canada, "FOCUS ON THE FUTURE" will be the Atlantic City, New Jersey and Durban, key, editorial feature for the December issue of South Africa. The subject matter covered Public GAMING International magazine. Key at these meetings is representative of our executives from all segments of government and focus on growth and expansion of gaming industry will be interviewed for what we believe around the world. will be a very insightful and important look ahead. One major growth area for gaming is racinos, which will be featured at the PGRI Conferences Move to Las Vegas for Toronto conference. In this issue of PGI 2005 magazine you will find an interesting fea- The gaming/entertainment capital of the ture on one of the leaders in the racino world will be the venue for both of Public field in the U.S., Delaware North Gaming's 2005 conferences - SMART-Tech Corporation. This 90-year-old corporation 2005 in February and ILAC 2005 in July. We started as a food and beverage supplier to hope this move will provide some added inspira- race tracks, subsequently bought several tion for growth among attendees. tracks (and manages others) and is now reaping the rewards of being positioned to A Philosophical Note take advantage of the current trend to add In this time of change, let's remind ourselves gaming to the race track entertainment package. again that it is smart, hardworking people who are committed to success that make things work Another area of growth featured in this issue is and that change for change sake is seldom pro- the use of the Internet for selling games by two ductive. Our hats off to these people who are the Canadian Lotteries and its use for distributing foundation for continued growth and success. X2 Public Gaming International November 2004 18950_PublicGaming 10/27/04 3:18 PM Page 3 With over 10 years of experience and millions of player transactions,let us show you just how easy getting started with SCS can be. 18950_PublicGaming 10/27/04 3:18 PM Page 4 IndustryIndustry NewsNews Scientific Games Activity in the flagship product of the company, was Several Jurisdictions launched on America Online in 1996 quickly Scientific Games recently saw contract winning over players and propelling the com- activity in five jurisdictions: New York, Puerto pany into the online giant that it is today. In Rico, Iowa, South Dakota, and Vermont. just 8 years, Slingo Inc. has grown from having Scientific Games Corporation announced its contract as a secondary sup- a single multi-player game into a staple of the entertainment industry. plier of instant tickets to the New York Lottery has been extended for anoth- Slingo games have evolved into casino slot machines, instant-play lottery er two years. The contract is valued at $8.0 million over the two years. tickets throughout more than 30 states (and 4 countries), and will soon be SGC has also signed the previously announced online lottery con- coming to both cellular telephone and interactive cable television markets. tract with Loteria Electronica de Puerto Rico. The contract is valued at EGC Unveils Two New Game Cards $66.7 million and is for a term of seven years. The online lottery con- Electronic Game Card unveiled its two latest XOGO GameCards target- tract includes the installation of 2000 terminals and a new central sys- ing the more than $150 billion global sales promotion and direct mail mar- tem with satellite and radio communication technology. The new sys- kets at the UK’s National Incentives Show. The two new XOGO tem is scheduled to launch on March 15, 2005. GameCards, Treasure Hunt and Shoot Out, continue the XOGO approach SGC has been named the apparent successful bidder for the Iowa of delivering high and enduring levels of awareness to brands by providing Lottery's instant-scratch ticket contract. The initial one-year contract versatile and compelling gaming experiences that fully engage the consumer. is valued at approximately $1.4 million, and there are four one-year Originally launched in June 2004, the initial range of XOGO credit- extension options. The contract commences January 1, 2005, subject to card-sized GameCards featured the popular instant win card (Match & the negotiation of a final contract. Win), a points accumulator based card (Points Mean Prizes) and a desti- The South Dakota Lottery has extended its online lottery contract nation driver card that lets a specific number of plays occur on a daily basis with SGC. The contract is estimated at $8 million over the term of for up to a month (Play a Day). The newly introduced Treasure Hunt three years. In addition, the South Dakota Lottery is upgrading the GameCard now brings a skill element to the XOGO range, consumers entire retailer network to newer, faster technology. having to guess where "treasure" is hidden on the touch-pad based, cred- Finally, SGC announced that the Vermont Lottery has extended its it-card sized cards. Meanwhile, the XOGO Shoot Out card has been online lottery contract. The contract is estimated at $12.3 million over developed by Electronic Game Card to meet the significant interest from its four-year term. In addition, the Vermont lottery is adding 175 new brands, sponsors, and media owners for a soccer themed Game Card. EXTREMA® lottery terminals to its network making the lottery more accessible in areas that had no on-line lottery terminals previously. Minnesota Extends GTECH GTECH signed a three-year contract extension with the Minnesota JCM Chosen as Multimedia’s Preferred Supplier State Lottery to commence on February 10, 2008. Under the terms of Multimedia Games has selected JCM American Corp as its preferred the contract extension, GTECH will install and maintain approximate- supplier of bill validators. JCM Vice President of Sales and Marketing, ly 112 Expandable Dispensing System Quad Burster ™ (EDS-Q) 24-bin Mark Henderson said, "We believe this enhances JCM's position as the ITVMs. The ITVMs will also allow the Lottery and retailers to combine bill validator of choice for gaming. Working with a company like management reporting of both online and instant-ticket vending activ- Multimedia allows JCM to expand our business into the interactive, ity for the first time. In addition, GTECH will install approximately 100 video lottery and wide-area gaming arenas." Express Point Plus™ terminals and will continue to provide ongoing serv- MDI Offer Combines Harley and Ford Truck ices to the Lottery including central system and communications net- “Only one truck is tough enough to be the Official Truck work management and maintenance; terminal maintenance; marketing of Harley-Davidson®,” and that truck, according to the Ford support; field service; and hotline management.