Canada’s Pacific Lottery Corporation has announced that the Corporation has sold a license for its proprietary online lottery technology to Cai Sheng Holding Limited, an affiliate of Chinalotto Technology.
The announcement comes after the company failed to successfully launch its mobile phone lottery service as expected in Vietnam. The company faced scrutiny from Vietnam officials regarding the technology it was going to implement for the mobile surface and ultimately was forced to shut the project down.
In an effort to attain profitability, Canda’s Pacific Lottery Corporation has now shifted it business focus to its proprietary online lottery technology, with additional implementation and maintenance fee services. This sale of a license to Cai Sheng (CSH) marks one of its major moves since shifting its focus.
Chinalotto Technology Inc. is the largest lottery technology supplier in the People’s Republic of China, which is the second largest and fastest growing Lottery market in the world accounting for over US $ 13.6 billion in gross lottery sales in 2010.
Terms of the agreement include the sale for gross proceeds of US$ 1.9 million along with an assignment of the Hanoi Lottery contract to CSH for a royalty equal to 10 % of their net revenues to be derived from the ongoing operation of the Hanoi Agreement throughout the remainder of the existing Supply and Services Contract (“Hanoi contract”).
This transaction is expected to significantly contribute to alleviating the Corporation’s current debt burden and, with the assignment, removes the Corporation from any and all present or future liabilities, obligations and responsibilities in regards to the operation of the ongoing mobile online lottery program in Hanoi, Vietnam.
PLC hopes this new shift in business focus is expected to lay the foundation for the possibility of other opportunities in the future.