Industrial computer manufacturer ICP Electronics Inc (威達電), which is leading a consortium bidding for the right to issue sports lottery tickets in 2014, yesterday vowed to turn the lossmaking gambling venture into a profitable concern with new marketing technology.
The company is partnering with MiTAC Information Corp (神通資訊), GTECH Global Services Corp (集鈦) and Taishin International Bank (台新銀) in the competition against another group comprising memory module maker Adata Technology Co (威剛科技) and Chinatrust Commercial Bank (中國信託商銀).
“We’re confident of turning a regular yearly profit if we are awarded the right to issue sports lottery tickets,” ICP chief executive Teddy Kuo (郭博達) told a press conference.
“It is achievable with global lottery revenue sales on the rise, suggesting the local market has yet to be fully tapped,” Kuo said.
The present issuer, Taiwan Sports Lottery Corp (運彩科技) owned by Fubon Financial Holding Co (富邦金控), has decided to exit the business after it negatively impacted earnings.
The ICP team is formulating a technology-focused business model that may give the four partners, would-be betting outlets and the government greater benefits, Kuo said.
The government is entitled to 10 percent of ticket sales, leaving vendors little margin for profitability, Kuo said, adding that it could improve if vendors were able to offer other products and services. Annual sports lottery ticket sales average NT$15 billion (US$514.7 million).
Electronics product distributor Synnex Technology International Corp (聯強國際), a MiTAC affiliate, would help and so would Chang Hwa Commercial Bank (彰化銀行) because of its tie-in with Taishin bank, Kuo said.
Kuo did not explain how the partners would divide up the business or profits.
Taishin retail banking executive Oliver Shang (尚瑞強) said the lender would limit its role as a platform for cash flows, in line with separation of commerce and banking, and would transfer related technology to ICP.