No gamble for National Lottery technology supplier

Unplugging the technology that underpins the National Lottery and installing a brand new one is fraught with potential banana skins.

The existing platform, which serves a 1,500-strong network of retailers and a rapidly expanding online portal, has been in place, albeit with a few facelifts, practically since the business was set up in 1987.

Much of it is out of date and in dire need of upgrade. That said, it has served the playing public, relatively glitch-free, for nearly three decades.

Greek firm Intralot, unveiled yesterday as the National Lottery's new technology supplier, has the unenviable task of pulling the plug on the old system and turning on its own.

As part of the process it will overhaul the franchise’s central hardware and software system and install some 4,000 new ticket terminals.

"The terminals will be installed at the retailers' premises gradually and will be officially turned on all at once – a big switch-on," Intralot's chief operating officer John Pantoleon says.

“ In line with normal installation procedures, various pilot operations and tests will also be conducted prior to the ‘go-live’ date.”

Disastrous entrance
Intralot made something of a disastrous entrance into the Australian instant lottery market when its newly installed machines spewed out instructions in Greek back in 2008.

Newsagents in the state of Victoria, which had employed Intralot to operate the machines, said they lost 15 per cent of lottery income through faulty technology, complicated games and poor marketing.

How can we be certain similar issues won’t arise here?

Pantoleon insists Intralot has extensive experience of setting up complex systems all over the world and is internationally recognised for its quality assurance checks and controls which minimise the risks associated with transition.

“Our solutions have been designed and will be implemented in a proactive manner in terms of contingency, taking all measures to prevent disruptions and respond to contingencies through a combination of technical and procedural controls.”

He says Intralot's presence in Australia – it operates systems in several states – has been successful despite the allegations, which he claims, were motivated by "competitive interests".

Intralot is now the world's second-largest lottery systems supplier, behind US giant Gtech, the outgoing technology supplier and underbidder for the Irish licence.

Greek heavyweight
The Athens-listed company, now one the heavyweights of the decimated Greek bourse, operates in 56 countries and boasts an annual turnover €1.1 billion.

It was founded by controversial Greek telecoms and gaming magnate Socrates Kokkalis in 1992. Mr Kokkalis, formerly owner and chairman of Greek football side Olympiakos, was the subject of a major spying investigation in 2002 over alleged links to East Germany's Stasi, the communist state's feared secret police. He was never charged, however.

On foot of winning the Irish contract, Intralot established an Irish subsidiary, Intralot Ireland. Where it will be located and how many people it will employ have yet to be decided.

An issue that’s much in the news, and one that will become ever more pressing as the lottery goes more online, is data protection. At the moment, the Irish lottery has about 40,000 online players but this is set to rise dramatically under the new licence which provide for relaxed rules governing online sales. How and where business stores this potentially sensitive information will be crucial.

"Personal data will remain under the control of the National Lottery [data controller] and be stored in Ireland. Online data and credit card accounts will be kept by the certified payment services provider that will be chosen by Premier Lotteries Ireland," Pantoleon says.

They say the less you hear about technology suppliers the better the job they’re doing. Doubtless, Intralot will be hoping to stay under the radar when systems go live next year.