On August 15th, 2012 Maryland Governor Martin O’Malley signed a new law authorizing the Lottery to install up to five instant ticket vending machines (ITVMs) with video display in approximately 200 eligible veterans halls.

Diamond Game is the inventor of the patented video ITVM (“the LT-3”) approved by the new law and has been the exclusive provider of such machines to veterans clubs and bingo halls in Anne Arundel County, Maryland. The machines were originally ruled lawful in a 2001 Maryland Supreme Court case known as the “Chesapeake Amusement” case, stating that the element of chance was in the tickets dispensed, and not in the operation of the machine. The new vet hall law states that the dispensers must conform to the type of device authorized by the Chesapeake Amusement case.

The LT-3 ITVMs dispense pre-printed instant scratch (or pull-tab) tickets, one at a time, and utilize a touchscreen monitor. The LT-3 also scans the barcode on the instant ticket as it is dispensed and, for the convenience of the player and to enhance entertainment, displays the result of the ticket on the video monitor in an entertaining fashion. The typical prize payout for these instant games is 90% of sales. The remaining 10% would be split between the veteran’s halls and the state. In terms of revenue, we estimate that each hall could net as much as $100,000 per year, and the state could net approximately $22 Million per year.

Diamond Game is currently working on entering new markets with the LT-3. The LT-3 can be customized to serve varying market needs—offering different cabinet types, display types, ticket types and other additional features. Our ability to serve each lottery’s unique needs has allowed us to advance discussions with other lotteries as they evaluate the ITVM with video display concept.

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Contact: Sara Navidazar, Director of Marketing
snavidazar@diamondgame.com
Office: (818) 727-1690 ext. 206