Bidders Seek Rights for Second Phase of Lottery

Attention is keenly being paid to who will take over the right to operate Lotto, the state-run lottery business, called a “golden-egg” business, that turned 2.473 trillion won in sales profits last year.

The first phase of the Lotto business managed by Kookmin Bank and the Korea Lottery Service for the past five years will end December 1 later this year, and a new operator will take over the business.

It was reported yesterday that CJ, Kolon Inet, and Eugene Group each formed a consortium to offer a bid for the second phase of the Lotto business proposed by Prime Minister’s Commission on Lottery (LOCOM) and Public Procurement Services (PPS) on July 6.

The business, a huge market that generates tens of billions of won in commission fees alone, is sought after by the three consortia, which are locked in fierce competition to win the bid.

Three-way battle –

The “Dream Lotto” consortium consists of Kolon Inet KT, Samsung SDS, Hana Bank, Neowiz, GS Retail, and Italian online lottery business solution provider GTECH.

The members of “Together with Lotto” led by CJ are Woori Bank, Korea Computer, Daewoo Information and Communications, TMax Soft, G2R Group, Igloo Security, Innet, Gabo Special Paper, and Windplan.

The “Nanum Lotto” consortium with Eugene Group at the center is composed of LG CNS, Nonghyup, KTeMS (lottery solution provider), Angel Lotto, and the Greek lottery company Intralot.

Meanwhile, current providers Kookmin Bank and the Korea Lottery System could not join the race as they are facing a suit filed by the government for charging steep commission fees.

Results will be out within a week-

A new lotto operator will be determined following the presentation of each consortium on July 10.

Officials at PPS commissioned by LOCOM to handle the tender process said that preferred bidder would be announced by July 13.

The government will evaluate each consortium by business implementation (350 points), system (350 points), and price, namely commission rate (300 points) on a scale of 1000 points. Who has the lowest commission fees is expected to become the deciding factor.

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