ALC confirmed that following a review of its investment in Geonomics, the operating firm of UK based location lottery game GeoLotto, the company had clearly failed to deliver on its projected growth. ALC governance had determined that a write down of its investment in Geonomics would be required.
ALC who operates the lottery services of four Canadian provinces, had invested in Geonomics in 2011 as a principal investor. Geonomics has further received venture funding from German online lottery broker Tipp24 (Zeal Networks) of £10 million in 2013.
Canadian business news sources report that ALC had been downcast regarding Geonomics performance following several product revamps, and a lack of UK consumer uptake in the GeoLotto product following increased marketing spend.
ALC CEO Brent Scrimshaw commented on the decision to write down the investment
“Our investment in Geonomics was a calculated decision made knowing it brought both opportunity and risk, as does any business investment or new opportunity we undertake,” Scrimshaw said in a news release issued this morning.
“It was a strategic investment made in response to the new business reality facing lottery companies. Competition is aggressive, gaming is changing and players are changing; we also need to change.”
At present, Geonomics management have not commented on ALC write down of investment.