By Andrew Green, Staff ReporterWHEN SUPREME Ventures takes over the Jamaica Lottery Company in the next three months, it will control almost 80 per cent of the island's betting and gaming market.
The two lottery companies announced their takeover agreement on Wednesday, with the majority of the shares in the Jamaica Lottery Company (JLC) to be acquired by Supreme Ventures Limited (SVL). The agreement was announced in a statement issued jointly by the SVL president Paul Hoo and JLC executive director Howard Mitchell.
"If you define gaming as licensed lotteries then we would have all the market," said SVL vice president Roger Williams. But there are other forms of gaming such as slot machines and horse racing, which together comprise an overall market estimated at $18 billion last year.
About 80 per cent of that market would be controlled by the combined entity. Supreme Ventures has about three times the turnover of the JLC.
But that has changed since September 1, he said. "Our revenues have been significantly impacted since the introduction of the lotteries tax."
The Government has introduced a 15 per cent tax on winnings from gaming, with the exception of horse racing.
OVERTAKEN
Given an illegal tax- free gaming business worth more than $2 billion yearly, and the recent hike in taxes, he said, "It is difficult to project how much of the market we will get in the medium term."
Formerly Jamaica's sole lottery company, the JLC sells Lotto, Pick3 and Three Way Drop Pan. The JLC was overtaken in the contest for market share by SVL, sellers of Cash Pot, Lucky 5 and Dollaz games.
"We expect to offer the same games with greater convenience to the customer," Mr. Williams said. "There are very few, if any, locations where the games are all available, so that will be one of the first direct benefits to the consumer."
As well, the games are complementary to each other, he said. So large Lotto jackpots attract many bettors, but they recognise that chance of winning lower, that for the Cash Pot game with its smaller payout.
"This offers a suite of games that appeal to different risk levels," he said. "It gives the customer the opportunity to make that choice."
Both the JLC and SVL now offer virtual phone cards through their distribution channels. He said, "We don't expect that to change."
The technology used to deliver the lottery can be used to deliver other electronic products and services. He said SVL had a great interest in those products complementing the gaming products and appeal to a similar market market.
"The other aspects of their (SVL's) business, which is almost separate in terms of operational management," he said, "are some of the things we will have to look at more carefully."
