Brian George, President and CEO Supreme Ventures
Listed gaming firm, Supreme Ventures Limited (SVL), says it expects to pocket between US$35 million and US$40 million in revenue each year from the new Super Lotto game being played simultaneously in seven Caribbean countries, even as it is required to put up 35 per cent of the jackpot prize money, which starts at US$2 million or J$180 million.
The first drawing was Friday night.
SVL President Brian George said the game, with odds computed by the operators of the Georgia and California lotteries in the United States at about five million
to one, is projected to earn US$100 million in annual sales across the participating countries.
With its estimated nine million population, Spanish-speaking Dominican Republic shoulders the bulk of the top-prize payout, at 60 per cent, but will also pocket the lion's share of sales revenue at the same percentage.
The consortium of Caribbean lottery operations also involves the countries of Barbados, St Kitts and Nevis, Anguilla, Antigua and Barbuda, and Dutch-speaking St Maarten, which together, have a five per cent stake in both earnings and prize liability, and have a combined population of roughly 600,000.
five numbers from 1-35
To play, gamers have a selection of five numbers from 1-35, and a super-ball pick from the same range of numbers. Tickets in Jamaica cost $250 each. Drawings hereafter will be twice weekly: Tuesdays and Fridays. Prizes can only be claimed in the country of purchase.
The lottery operations in these islands are controlled by gaming technology firm, GTECH, through its ownership of the Leeward Islands Lottery Holding Company.
GTECH is a lottery technology provider to SVL and to lottery operator Loto Real Del Cibao of the Dominican Republic.
The operators of the Super Lotto have agreed to put half of all sales into a central pool for the jackpot prize payout to be facilitated by banking arrangements with Bank of Nova Scotia. The participating lottery company in each country will foot the bill for subsidiary prizes.
The corporate structure for the seven-country Super Lotto involves a decision-making committee on which each partner has equal votes, SVL's George told Sunday Business. A Jamaica-based administrator has been appointed to run the day-to-day affairs of the lottery.
"All issues related to arbitration, and so on, have been agreed. The structure is not original and is essentially the same as used for the Powerball," George said, referring to the US game in which some 30 states and the US Virgin Island participate.
reduce bureaucracy
He pointed out too, that in order to ensure ease of administration and reduce bureaucracy, a deliberate decision was taken not to set up a company or put in place a board for the regional game.
Meanwhile, the SVL president has pointed to a rigorous vetting procedure conducted by regional gaming regulators led by Jamaica's Betting Gaming and Lotteries Commission (BGLC).
Before giving its stamp of approval, the BGLC had to be satisfied, for example, that the Jamaican gaming company had the capacity to foot the full payment of any prize in the event that its regional partners in the venture were unable to meet their obligations under the contract that binds the consortium.
"BGLC visited all locations to satisfy itself that the operations there met the Jamaica regulatory standards of security and integrity," said George.
The Jamaican gaming regulator also sought to satisfy itself that all taxation issues were worked out.
"They also have live view from Jamaica of all draws and live view of vaults where the balls are kept."
The Super Lotto took one year of planning, the SVL boss indicated, but the company's search for partners in a multi-jurisdictional lottery has been ongoing for five years and included discussions with the operators of the Powerball game in the United States.
The SVL chief executive says with multi-jurisdictional lotteries being the trend in the industry now, the game fits snugly into the Jamaican company's strategic plan.
George also pointed to a low start-up cost as a major advantage.
"We are using existing agents and existing technology in all jurisdictions," he said.
For its part, SVL said the only area requiring largest new money has been advertising, where there has been a J$20 million budget increase.
Hobbled to high expenses and a fall-off in sales, which SVL said is reflective of the recessionary conditions, the Jamaican company has been seeking in recent months to boost its bottom line.
In June, it launched its tele-betting service, where bets for its popular Lotto, Pick 3 and Cash Pot games can be placed and paid for via telephone.
Following depressed first-quarter profit this year, net profit moved up 12 per cent in the second quarter to April over the same period in 2008.
But six months net profit to April was down seven per cent, weighed down by a higher-than-projected Cash Pot prize payout over the period. SVL has reported that while the Cash Pot game liability is designed at 72 per cent, actual payout over the period was 74.3 per cent of revenues from the game.
(IUS$=J$89)
huntley.medley@gleanerjm.com