Wheel of Fortune: Lottotech awaits GRA clarification on budgetary measures
Mauritius gaming major Lottotech reveals that the government has not communicated to it any intention of taking control of the company, and the impact of budgetary measures is still being analysed at company level. (Image: mbc.intnet.mu)
A communiqué by Mauritius gaming major Lottotech indicates that the government has not communicated any intention of taking control of the company, as some press articles have recently speculated.
Accordingly, Lottotech informs its shareholders that the company has met the Gambling Regulatory Authority (GRA) to obtain clarification regarding the measures announced in Budget 2015-16 and GRA’s response is still awaited.
Meanwhile, the board of directors of Lottotech continues to assess the impact of the budgetary measures to put in place appropriate actions in order to sustain the performance and value of the company.
It is to be noted that Lottotech obtained a licence from regulatory authorities to operate the Mauritius National Lottery following a transparent public process by way of a Request For Proposal, issued by the government of Mauritius through the State Investment Corporation Ltd (SIC).
In the communiqué, Lottotech states that “Lottotech remains a responsible world class lottery operator with international strategic technology partners and over 900 retailers.”
The company also highlighted that “the board of directors notes that unfounded rumours and uncertainties have impacted the company’s share price in recent months and the board of directors has been and is taking necessary steps to address these issues.”
To recapitulate, the government declared that regulations for the gaming industry included a total ban on advertising and issue of license for a period of 5 years (except for new casinos) making it difficult for new entrants. Existing players will also be impacted by an increase in license and fees together with limitation on range of games given a ban on scratch card games and relocation of all gaming house outside city centres.
Moreover, in an analysis done by stockbroking major Axys, it highlighted that sales of Lottotech could be reduced by as much as 20% following the budgetary measures. The immediate ban on scratch cards is the single most critical factor affecting company sales, as they represent as much as 20% of the turnover of the company.