Computer-generated Ticket Game ("CTG") is a major lottery product in the China lottery market. CLS owns the IP rights of core components of terminals including lottery scanners and printers. Currently, CLS has been approved to provide CTG terminals for both Welfare and Sports Lottery.
On the Welfare Lottery CTG business, CLS is the exclusive provider of CTG terminal equipment and maintenance services for Guangdong Welfare Lottery, the leading provincial Welfare Lottery market in China (Guangdong Welfare Lottery has maintained the top Lottery provincial sales rank for 13 consecutive years.). In March 2013, CLS became a provider of CTG terminals for Chongqing Welfare Lottery authority. In August 2014, CLS supplied a comprehensive lottery technical system and related services to Shanghai Welfare Lottery Centre. In May 2015, Shanghai Welfare Lottery CTG achieved a complete system and terminal handover, and officially commenced sales operation. In 2015 and 2021, CLS successively won the bid for Guangdong Welfare Lottery抯 new generation sales management system supply contract. CLS has become a total service provider of CTG, system and terminal services for Guangdong province and Shanghai municipality. In addition, CLS is the CTG terminal provider for Welfare Lottery in Chongqing.
On the Sports Lottery CTG business, in March 2013, standard, economy and portable type CTG terminals, which were designed and produced by a CLS subsidiary, were included in the Sport Lottery procurement catalogue after passing a stringent evaluation exercise. This has led to CLS becoming an approved provider of CTG terminals for Sports Lottery, and marks its entry into the country's Sports Lottery market.
Since CLS became a qualified Sports Lottery CTG terminal supplier in 2013, its Sports Lottery CTG terminal business has maintained a strong development momentum over the past two years. In 2014, CLS became a top 3 supplier, and in 2015, has become the top Sports Lottery CTG terminal supplier to date, with a business presence in almost half of the 31 provinces and regions across China, gradually establishing its position as the industry leader. At the end of 2020, CLS抯 Sports Lottery CTG business has successfully expanded its coverage to 17 provinces and regions across China. CLS has become a leading Sports Lottery terminal supplier in China.
Meanwhile, CLS continues to develop overseas markets, providing systems and terminals to Russia, Vietnam and Cambodia, among others.
KENO-type lottery is a new growth driver for the China lottery market. CLS-GTECH, the JV between CLS and US-based GTECH Corporation, is the exclusive provider of the system, games and terminal equipment for KENO /开乐彩, a KENO-type lottery game of Welfare Lottery.
US-based GTECH Corporation is one of the largest lottery companies and game solution providers in the world. GTECH’s instant lottery system is being applied in 45 countries worldwide, and offers a full-feature instant lottery structure including system, equipment, printing, logistics and distribution. GTECH is also the largest KENO-type lottery system provider in the world.
KENO comes with multiple payout levels, featuring a large pool of drawing numbers and multiple winning combinations. As such, the game is not prone to creating excessive chasing of numbers, which helps reduce the risk of hi-frequency drawing to lottery issuance authorities and players. In addition, as evidenced by other local and overseas operations, KENO does not affect traditional CTG game types such as Lotto and Digit, instead, it is an incremental game to the lottery market.
