ALC hit by Geosweep failure

ALC hit by Geosweep failure

Wednesday, July 29, 2015 Totally Gaming
The lottery group produced flat profits in 2014-15

Atlantic Lottery Corporation (ALC) saw profits unchanged for 2014-15 as it absorbed losses inflicted by the failed Geosweep game.

The Canadian lottery group says it met its projected profit targets and delivered C$368m (€257.1m/$284.0m), down 0.07 per cent year-on-year, to the four Atlantic provinces' governments, with total gross sales up 1.8 per cent to C$552.5m.

However, performance was much improved in Nova Scotia and Newfoundland and Labrador, but were countered by dips in the New Brunswick and Prince Edward Island provinces that had decided to opt into Geosweep, ALC’s map-based lottery game.

The C$8.9m losses in those two provinces were almost exclusively caused by their joint $8.7m investment in the company behind the failed game Geosweep being written off by ALC management in June. However, Brent Scrimshaw, president and chief executive, says that ALC must continue to consider new games and innovations.

“While our efforts have resulted in a return of $368m to our shareholders, we must keep working toward a future that continues to contribute a sustainable financial return to the region,” Scrimshaw said. 

“Atlantic Lottery is evolving to ensure it meets the expectations of its players now and into the future. Players are looking for different gaming options, new ways to play, and alternative prize structures - we are working hard to deliver on their expectations.

“When they play with us they get a variety of products and are protected with responsible gambling tools that are recognised as world class.”

ALC bought into lottery games company Geonomics in 2011 but, despite a heavy marketing campaign, it cancelled the Geosweep game in Canada in 2013 but retained its investment. 

In 2014-15, ALC saw iLottery sales grow by more than 10 per cent to a record high of over C$20m thanks to more than 30,000 unique customers making a purchase

It said that $372.7m was awarded in prizes, while operating expenses as a percentage of net sales remained consistent year-on-year at 16 per cent.

“We return 100 per cent of our profits to the governments of Atlantic Canada and these profits continue to fund important public services across the region,” said Scrimshaw.

“We are proud of our contribution to the communities we serve. We will continue to work hard to provide sustainable and responsible profits by offering adult Atlantic Canadians the right games through the right channels.”

Latest
No alternative text provided

RISQ changes the jackpot game

No alternative text provided

New UKGC executive charged with raising lottery standards

No alternative text provided

UKGC introduces society lottery transparency as new CEO search begins

UK Government bans third party betting on EuroMillions

Gaming Products & Services Directory

The essential directory for the gaming industry