welcomes advisory panel recommendation - Let Alcohol and Gaming Division License Suppliers

    HALIFAX, Nov. 8 /CNW/ - welcomes the recommendation of
the Ministerial Advisory Panel to give the Nova Scotia Alcohol and Gaming
Division authority to license suppliers to the Atlantic Lottery Corporation
(Atlantic Lotto).
    "Our recent experience shows that Atlantic Lotto has been using unwritten
criteria, changing criteria and even secret criteria to pick and choose
suppliers," says Scott White, founder of "We welcome any
reform that will take these decisions away from Atlantic Lotto and place them
in the hands of a government regulator."
    Nova Scotia's Ministerial Advisory Panel on Ticket Lottery Controls
observed that Atlantic Lotto's games are not subject to the same "extensive"
regulatory oversight as casinos, bingos and charitable lotteries. It therefore
issued Recommendation 4.2: "Suppliers of equipment and materials used in the
ALC ticket lottery process should be registered and licensed by the 
(Nova Scotia) Alcohol and Gaming Division."
    While the recommendation refers to "ticket lottery," the Advisory Panel
noted that this term has been effectively applied to "virtually any type of
(Atlantic Lotto) gambling." The term would cover "new games and new
technologies (that) are quickly entering the market." Thus,
fully expects the recommendation to apply to suppliers for a new product such
as iBingo.
    Atlantic Lotto awarded its iBingo contract to a foreign company from
Sweden without public tender, and later justified its decision on the basis of
a criterion that had never been made public. (See appendix.)
    "It is unfair to qualify or disqualify suppliers on the basis of a secret
requirement or a criterion that keeps changing," White says. "Qualifying
suppliers is properly the job of the regulator, not the lottery corporation.
We trust the regulator to employ a fair, transparent process and to base its
decisions on defined, objective and public criteria." is a campaign to ensure that Atlantic Lotto never makes
secret, untendered deals again.

    Appendix: Atlantic Lotto's Secret Criterion for iBingo Suppliers

    Atlantic Lotto has claimed that the iBingo supplier had to be a member of
the World Lottery Association or a supplier to a World Lottery Association
    Canadian company Parlay Entertainment was surprised to learn, after the
contract with the foreign company had already been signed, of this alleged
requirement. At no time prior was this requirement ever communicated to
Parlay, not even when its CEO visited the Atlantic Lotto offices.
    Atlantic Lotto never published or posted the World Lottery Association
requirement anywhere.

    Further, Atlantic Lotto appears to have given different versions of what
its World Lottery Association requirement was:

    - In a February 21 letter to Parlay's lawyer, Atlantic Lotto wrote that
      it wanted a supplier that was already a supplier to another WLA member.

    - On June 11, Atlantic Lotto wrote that it that it wanted a supplier that
      was already a supplier to another WLA member or was itself a WLA

    - In its October 2 news release, Atlantic Lotto simply said that it
      wanted a supplier with WLA membership

    Thus, Atlantic Lotto has provided three different versions of its WLA
    requirement, all given after the foreign company was already chosen.
    Before the foreign company was selected, Atlantic Lotto did not publicly
    mention the requirement at all.

    The recommendation of the Ministerial Advisory Panel would empower the
Nova Scotia Alcohol and Gaming Division to license suppliers.
prefers this process to one in which Atlantic Lotto sets the criteria for
suppliers. expects that the government regulator would employ
defined, objective criteria and a transparent process.

For further information:

For further information: Michael Dunn, (902) 229-5378

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