Scientific Games Wins Contract with Dutch Legal Gambling Monopoly

Scientific Games Corporation declared that they won a deal to provide instant tickets and supportive services to De Lotto, the gambling firm that is exclusively allowed to present internet gambling in Holland. The agreement, scheduled to start in April of 2011, has an opening period of four years with options for contract extension.

According to the agreement, Scientific Games supportive services include advice on promotion and competition design, field sales support, and distributing the tickets after they have printed them. Scientific Games’ profits will include a commission on instant ticket retail sales.

Lorne Well, Scientific Games Chairman and CEO stated "We see growth potential for instant tickets in the Netherlands, as De Lotto's instant ticket sales in 2009 represented roughly 20% of lottery sales, compared with almost 60% of lottery sales in the US…. We believe we can expand instant ticket penetration through both the addition of our cooperative services and by working with De Lotto to implement best practices."

Harrie Linders, De Lotto CEO commented "Scientific Games has been a trusted partner since we started selling instant tickets in 1993…. We look forward to working with them to improve our games and product positioning within the boundaries of our license and gambling policy of the Netherlands."

De Lotto’s brands Lotto, Lucky Day, Scratch, and Toto reach a market of 16.7 million Dutch citizens through the land-based network of lottery retail terminals. In 2009, De Lotto achieved $442.1 million (€333.4 million) in total sales. Instant tickets accounted for $90 million (€67.9 million).

De Lotto’s monopoly also includes control over the lottery and betting on sports in the Netherlands. Sports betting in the Netherlands is run by De Lotto in conjunction with Scientific Games Racing B.V., a division of Scientific Games Corporation.

The European Union (EU) has long been at odds with the Netherlands over Dutch gambling laws. EU agreements necessitate free access to the Dutch market, while De Lotto and Holland Casino hold monopolistic control over internet gambling within the Netherlands. The EU has been putting tough pressure on the Netherlands to dissolve the monopoly.