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State Gambling Operators Looking to Alternative Investments

New report from consultants MECN looks at opportunities for state operators in the gaming industry

Friday 17th December 2004

State gambling operators profits in the future will increasingly come from investments outside their core business, says a new report by industry consultancy firm MECN. According to a survey conducted among state gambling operators, major targeted investments and activities of lotteries will be offering lottery services, such as products, consulting, to other lotteries, and investments in technology/service providers.

54% of the surveyed operators want to increase their alternative investments in the future. Current examples are: Norsk Tipping has investments in several other companies, German WestLotto earned about USD 10 million in 2003 from dividends of its alternative investments, or Loto-Québec’s subsidiary Ingenio provides products and services to many other lotteries.

As Martin Oelbermann, author of the study, explains: “A development that will drive this activity is the ongoing privatization. More and more state-licensed operators are being privatized – the Turkish and Greek operators started the trend; now the UK Tote announced privatization for the beginning of 2005. 85% of the state operators surveyed expect that the number of privatized state-licensed lotteries will increase in the next 3-5 years”.




Source: OnlineCasinoNews