Contract signed for electronic monitoring of gaming machines in pubs and clubs

17/5/2005

Following an international procurement, the Department of Internal Affairs has signed a contract with INTRALOT New Zealand Limited, the local arm of European gambling technology company, INTRALOT SA, for the provision and operation of the electronic monitoring system (EMS) for all gaming machines in pubs and clubs.

Department Deputy Secretary Andrew Secker said that the contract is for $35 million over six years.

Mr Secker said that EMS will greatly increase the accountability of the gambling sector. Incorrect banking and inaccurate record keeping by gambling operators are the most common problems found during audits carried out by the Department.

Gaming machines are allowed in pubs and clubs as a form of community fundraising only. They are a cash-only operation that last year made a profit of $1.035 billion in banknotes and coins from a turnover of more than $8.6 billion.

Currently gambling operators’ record keeping is manual. There are more than 20,000 machines at more than 1,800 venues throughout the country.

“Electronic monitoring of gaming machines is standard practice throughout the world because of the huge cash turnovers,” Mr Secker said. “Monitoring systems are already in place in New Zealand’s casinos and will now be used in pubs and clubs through EMS.

“EMS will help safeguard money intended for community groups.”
Department staff have visited some of the jurisdictions that have INTRALOT systems in place and have been impressed with the technical sophistication and operation of these systems. Regulators have expressed a very high standard of satisfaction with all aspects of INTRALOT'S involvement in the supply, rollout and operation of the systems in their jurisdictions.

INTRALOT SA Chief Executive, Constantinos Antonopoulos, said: “We are excited about the contract with the Department and we are looking forward to working with them. It is a strong endorsement of our
V-LOTOS capabilities. Moreover, it is a significant moment for INTRALOT since it is our first agreement in Oceania.”

What EMS will do

EMS will give the Department information allowing it to:

• monitor how much money is gambled on each machine
• monitor how much each machine pays out in prizes to gamblers
• monitor how much money should be banked
• ensure that all software being used on the machines is identical to the approved versions
• assist in detecting software failures
• assist in detecting tampering with a machine or software.

Indicative timetable for rollout

2005	Consultation with the gambling sector on minimum technical requirements for cabling and “site controllers”. The site controller is the piece of equipment that receives and stores data from the gaming machines at a venue and connects to EMS. Consultation with the gambling sector on a minimum standard for QCOM (which is the software protocol EMS will use); regulations setting fees to cover the costs of implementing and operating EMS; and connection dates.
2006	By early 2006, some operators will connect their gaming machines as part of a pilot rollout. Subject to a successful pilot, it is expected that the full rollout will commence and be substantially implemented.
2007	March 18, final deadline for all machines to be connected. While this is the final date set in the Gambling Act, there will be deadlines before then and most machines will be connected well before this date.

About INTRALOT SA

INTRALOT is a leading supplier of integrated gaming and transaction processing systems and innovative game designs to state-licensed gaming organisations and financial services providers worldwide.

INTRALOT has 31 subsidiaries, seven business offices and 1,500 people in 28 countries. With annual revenues of €325.8m (about NZ$600m), the company dominates in Europe, has secured a strong position in South America and has established a foothold in North America, South East Asia, Africa and Oceania. INTRALOT currently ranks 3rd on revenues and 2nd on profits among similar suppliers worldwide.

New Zealand will be its first substantial presence in this region.

INTRALOT currently has gaming machine monitoring operations in two European jurisdictions and the same system will be used in New Zealand. INTRALOT is also actively involved in the rollout and subsequent operation of many of the systems they supply.

Media contact

Andrew Secker
Deputy Secretary, Regulation and Compliance Branch Phone 04 495 9329, Cellular 027 281 5211

Vince Cholewa
Communications Advisor Phone 04 495 9350, Cellular 027 272 4270

Christina Geronicola
Communications Director INTRALOT Phone +30 210 615 6000, or geronicola@intralot.com