companFor the past 10 years, Intralot has been running the Taiwan Lottery with the help of ChinaTrust Commercial Bank (CTCB) and its subsidiary lottery operator Taiwan Lottery Corporation (TLC). A new agreement will see it remain in the disputed territory for another 10 years.
Intralot announced this week that LotRich Information, a joint venture it operates with CTCB, was selected by the bank to retain its place as the technology provider for TLC. LotRich was initially chosen as the provider in May 2013 after an international tender process.
Neither the original contract nor the renewal came as a surprise. The company had been CTCB’s tech partner since 2007, giving it a powerful position ahead of the competition.
Intralot Expands Footprint
Intralot now has the green light to continue supplying its LotosX Gaming Platform to TLC, which operates the Public Welfare Lottery in Taiwan. It will also provide its Lotos Horizon content management software and hardware and associated maintenance services, according to a press release.
In addition, the company will add 5,500 PhotonX terminals to retail establishments across the country. It deployed 6,050 when it secured the first contract a decade ago.
The Photon series of lottery terminals has been the company’s go-to product for years, and PhotonX is one of the newer iterations. The Photon series is in use by lottery operators around the world, including Germany, the Netherlands, Turkey and Chile. In the US, they’re found in states like Ohio, Vermont, Illinois and others.
The new agreement may help Intralot continue to see an improvement in its finances. It already started the year strong, but has also had to deal with issues in some of the jurisdictions where it operates.
Intralot recently unveiled its latest financial health update, covering the first quarter of the year. It reported that its EBITDA (earnings before interest, taxes, depreciation and amortization) had recorded a 29.2% year-on-year increase, following a trend that began a couple of years ago.
More Recovery Needed
Despite being active in over 39 “regulated jurisdictions” and having more than 30 years in the gaming industry, Intralot sometimes has to deal with financial difficulties. It found itself reaching out for new financial lifelines during the COVID-19 pandemic, from which it’s still recovering.
Since then, it has continued to rebound in most jurisdictions where it has a B2B or B2C presence. However, it will still have to recover from the increased burden over the next few years.
That might be a problem in at least one of its operating areas. The failed experiment that was supposed to be sports betting in Washington, DC, continues to be a problem.
Sports betting solution GambetDC, in the eyes of local officials, was going to be a huge moneymaker for the city that plays host to the US federal government. GambetDC was never a competitive offering, despite being the only game in town for a while.
Intralot has a strong position in the operation of GambetDC, alongside its local “partner,” Veterans Services (the company was later found to exist in name only). However, with the sportsbook having missed revenue projections by tens of millions of dollars, its place in DC is now up for debate.
Some politicians are calling for Intralot’s contract to be revoked, while others are looking for it to make financial restitution. Neither is going to happen, but that doesn’t mean the company’s safe.
The initial contract was only good for five years, which means it expires next year. Intralot won the no-bid contract, which violates local laws that require bidding. Coupled with the lack of performance, this could have local officials looking for an alternative.
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