Sorteo Games and Jumbo Interactive sign investment and partnership agreement

Agreement and investment will allow growth and expansion of online lottery in Mexico

SAN DIEGO--()--Sorteo Games, Inc., (“Sorteo” or “the Company”) a leading provider of electronic lottery systems and services, is pleased to announce that it has received a US$2 million investment from Jumbo Interactive Ltd (ASX: JIN) (“Jumbo”), a leading interactive lottery business, and signed an exclusive long-term agreement enabling Jumbo to sell Mexican National Lottery draws in Mexico via the internet and mobile.

Under the terms of the agreement, Jumbo will integrate its technology with Sorteo Games’ distribution platform and become an official internet and mobile retailer of the lottery products that Sorteo Games offers from Lotería Nacional and Pronósticos, the two largest lotteries in Mexico with combined sales of over US$1.2 billion.

The sale of tickets via the internet and mobile will be fully-integrated with Sorteo’s proprietary technology platform, the Digital Orchid™ Lottery Gaming Platform, which is the integration platform for all National Lottery products and distributors in Mexico. This platform enables the rapid creation of new products and opens new electronic distribution channels.

Jumbo, headquartered in Brisbane, Australia, specialises in the development of technology and marketing initiatives to sell lottery products via the internet. The company has over 12 years experience in the Australian market, and has succeeded in quadrupling internet lottery sales in this territory over the past four years from A$25 million to A$100 million using its own in-house internet lottery software powering web and mobile sales.

Sorteo has exclusive long-term agreements to manage the modernisation and automation of the National Lottery products and distribution channels in Mexico. The launch of the first official automated National Lottery Agent Terminal Network earlier this year has resulted in a significant growth in ticket sales.

Nour-Dean Anakar, CEO and Founder of Sorteo Games Inc., said: “We welcome this investment from Jumbo, which will enable us to accelerate our roll-out our programme in Mexico. The automation of the lotteries is progressing well, and now we can expand and promote our online lottery distribution channel quicker than anticipated. Jumbo’s track record of success with the Australian lotteries makes them the partner of choice for introducing online lottery games in Mexico. We look forward to a long and fruitful relationship with them.”

Commenting on the agreements, Mike Veverka, CEO of Jumbo Interactive, stated: “With a population of over 110 million people and 40 million on the internet, there is enormous potential to grow the Mexican lottery market to incorporate online sales. Jumbo is pleased to become closely aligned with Sorteo Games and become a valuable technological partner not only in Mexico but in other countries in South America.”

About Sorteo Games

With offices in San Diego and Mexico City, Sorteo Games is a leading provider of regulated server-based wireless, web and electronic lottery systems and services in Latin America. The Company’s platform solutions enable lottery institutions and leading regulated gaming networks to more efficiently create, distribute and control traditional lottery products in conjunction with new electronic products, services and distribution channels.

Sorteo currently holds two national lottery systems and distribution licenses and operates the leading government regulated revenue generating national lottery wireless & interactive channels and electronic lottery terminals in Mexico.

More information can be found at: www.sorteogames.com

About Jumbo Interactive

Jumbo recently released FY 2012 results including a 32% increase in Total Transactional Value to $100 million, 33% increase in Revenue to $24 million and a 39% increase in Net Profit After Tax to $6.7 million. A 2.0c final dividend was declared bringing the total for the full year to 3.0c.

In 2000, the Company sold its first lottery ticket on the Internet and since then has developed www.ozlotteries.com into a popular place for lotteries to be played.

Jumbo has proven its ability to open up new lottery markets with its innovative technology and Internet marketing initiatives that have brought lotteries to new demographics via the Internet.

International markets are key targets for the Company, in particular the $60 billion North American and $110 billion European lottery markets.

Jumbo employs over 80 staff, has its headquarters in Brisbane and plays an important role in the Australian lottery industry with over $22 million in additional State Government revenue raised from sales in 2012, $17 million in 2011 and $15 million in 2010.

Contacts

Sorteo Games
Nour-Dean Anakar, CEO / Tom Wenz, CFO
+1 858 554 0297
or
Luther Pendragon
Harry Chathli, Claire Norbury, Amelia Bullock-Muir
+44 207 618 9100
sorteo@luther.co.uk

Release Summary

Sorteo Games has signed an exclusive long-term agreement with Jumbo Interactive enabling Jumbo to sell Mexican National Lottery draws in Mexico via the internet and mobile.

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Contacts

Sorteo Games
Nour-Dean Anakar, CEO / Tom Wenz, CFO
+1 858 554 0297
or
Luther Pendragon
Harry Chathli, Claire Norbury, Amelia Bullock-Muir
+44 207 618 9100
sorteo@luther.co.uk