Supreme Ventures Ltd (SVL), which controls a large share of the local gaming market through its lottery games, says investment in new technology is expected to deliver returns in 2017 and going forward.

In mid-year 2016, SVL’s lottery service provider, IGT, upgraded the lottery technology platform to a new Enterprise Series system, which, according to management in the year’s report, greatly improved operational efficiencies of the gaming platform.“This new system has enabled the Group to easily implement game changes, to better manage the agent network, improve reporting and business intelligence capabilities, and comply with Anti-Money Laundering (AML) procedures.“The upgrade also allowed for the introduction of the roulette feature to the Money Time game (August 2016). IGT also made changes to improve network reliability and redundancy, by targeting specific locations with connectivity issues,” it was noted in the report.The report shared data from the Betting, Gaming and Lotteries Commission (BGLC) showing that gross revenue from the gaming industry was $135.6 billion during 2016.This was dominated by Video Lottery Terminal (VLT) gaming products. In comparison to the 2015/6 fiscal period, VLT gaming grew considerably by $16.7 billion or 22 per cent, driven by revenues in gaming lounges.Nineteen-and-under gaming operations, the majority of which are located outside of the Kingston Metropolitan Area, had revenues of $1.422 billion which was $12 million less than the previous year.The betting sector, which comprises horse racing and sports betting, grew by 6 per cent during this period. Sports betting revenues increased by $317.3 million or 27 per cent, while horse racing increased by $184.6 million or three per cent.Lottery products accounted for 30 per cent of the gaming sector, netting $34.1 billion, a decrease of $1.3 billion or 4 per cent less than the comparative fiscal period, the SVL report noted.On March 7, 2017, the Group, through its newly formed subsidiary, Supreme Ventures Racing and Entertainment Limited, commenced operations of the Caymanas Park racing facility, a move expected to add new income streams.Meanwhile, however, the lottery line of business continued to be the main profit-earning segment for SVL, although in 2016 this was impacted by low sales and insufficient player interest in the new PayDay game.Revenue for the Group was $44.921 billion, an increase of two per cent over the prior year, driven mainly by the Personal Identification Number (PIN) code products. PIN code growth was 26 per cent.PIN code revenues increased to $8.559 billion from $6.818 billion in the prior year, representing a 26 per cent increase. SVL in the report said this could be attributed to several factors including: reduced rates by telecom providers due to aggressive competition; more readily available and cheaper smartphones, and people utilising more online messaging options.Cash Pot revenues fell by $429.214 million, attributable to a low payout trend. PayDay, which was introduced in January 2016, contributed $108.986 million to revenue.The VLT and Sports Betting segments recorded growth of 19 per cent and 28 per cent, respectively. Direct expenses totalled $40.813 billion, representing a $1.383 billion increase over the prior year.For the year ended 31st December 2016, the Group recorded a net profit of $1.178 billion, compared to $1.184 billion in 2015. This represents earnings per share of 44.69 cents compared to 44.89 cents for 2015.