Industry Overview and Global Approach Acquisition Update
May 25, 2006
ASX RELEASE – Monday 25th May 2006Online Lottery Industry Update The 8th annual GIGSE (Global Interactive Gaming Summit & Expo) was held recently from 16 to 18 May 2006 in Montreal with directors of JUM, GLO and Tusk in attendance. This is the largest online gaming industry gathering for the purpose of discussing industry issues, advancements and trends (www.gigse.com/2006). Online lotteries began to attract significantly more interest from delegates at this years summit compared to previous summits. While the “Big 3” industry sectors continue to be online casinos, poker and sports betting, online lotteries are viewed as a new emerging sector with significant growth potential. Established online gaming operators are searching for new games for their players and are looking at Lotteries, Bingo and Mah Jong with interest. “Online lotteries are viewed as an exciting new area in online gaming and the Ozlotteries.com site is well known as an early leader in the industry”, said Mr Mike Veverka, CEO of Jumbo Corporation Ltd. Industry Advances Many of the industry advances such as regulatory changes, improved payment systems, fraud control and marketing opportunities are relevant to online lotteries. JUM representatives met with numerous companies with the aim of expanding and improving the companies operations. “The key to our growth will come from expanding our online lottery services into new markets by improving our games and payment systems which in turn will lead to new marketing opportunities”, said Mr Veverka. New payment systems are being investigated from companies such as Neteller (www.neteller.com), Wirecard (www.wirecard.com) and Chexx Inc (www.chexxinc.com). The online gaming industry is regarded as an innovator of new online payment methods designed to securely transfer money with customers around the world in many currencies. While credit cards are still the dominant method, alternatives are fast rising in popularity. Corporate Activity in the Online Lottery Industry A major industry development over the past year was the rapid rise of a number of very large gaming operators on the London AIM (Alternate Investment Market). For example, PartyGaming (PRTY.L) reached valuations in excess of AUD$10 billion which made it the most valuable publicly traded gambling stock in the world, greater than MGM Mirage (MGM:NYSE) and Harrah's Entertainment (HET:NYSE). PartyGaming is a leading online poker network operator (www.partygaming.com). In the online lottery industry, a number of large organizations and publicly listed companies have emerged with online lottery operations. These are discussed below.
- The UK National Lottery operated by the Camelot Group is regarded as the largest online lottery site (www.national-lottery.co.uk). The national lottery license comes up for renewal in 2009.
- Chariot UK (code: CRT.L website: www.chariot.org.uk) have recently launched an online competitor to the UK national lottery – PlayMonday – (www.playmonday.com).
- Tipp24 AG (code: TIM.F website: www.tipp24.de) is a German publicly listed company with a current market capitalization over AUD$300 million and sells online lottery tickets in Germany (www.tipp24.de), Spain (www.ventura24.es) and Italy (www.puntogioco24.it)
- Fluxx.com (code: FXX.F website: www.fluxx.com) is a German publicly listed company with a current market capitalization over AUD$150 million selling online lottery tickets in Germany (www.jaxx.de) as well as other gaming services.