Atlantic Lotto to Remove GeoSweep

Atlantic Lotto decided put an end to its GeoSweep online game, after spending Cdn$8.7 million for a stake in Geonomics (previously known as Roboreus), the U.K. firm behind the online lottery, CBC News reports.

Geosweep is a digital and location-based online lottery where players, instead of numbers, pick one of 2.3 million locations, called Geos, on a map of Atlantic Canada. The cost to own a Geo is Cdn$7.50 for 30 days.

Patrick Daigle, chief financial officer with Atlantic Lotto, gave a statement to CBC on Friday:

"We've made the decision to remove the GeoSweep game from the market today. The game hasn't lived up to its potential in this market.'

Daigle also said that as of July 4, the lottery corporation will stop offering the game in Atlantic Canada.

By respective contributions in the amount of Cdn$4 million, the governments of New Brunswick and Prince Edward Island opted for the investment, unlike the Newfoundland and Labrador and Nova Scotia authorities who were against it.

According to Daigle, the investment in Geonomics is secure. He said the British company is revising the game and plans to launch it in the UK this summer.

'We do believe that the latest version of the game is going to hold player appeal,' he said, mentioning the recent acquisition of the interest in the company by the European lottery broker Tipp24 as a positive sign.

When it was launched, GeoSweep was heavily promoted on TV, billboards, and buses, but Daigle refused to disclose the details of marketing costs, saying: 'It's not our practice to release internal business cases and projections.'

He also avoided answering questions about the GeoSweep's sales in Atlantic Canada insisting that he is not at liberty to disclose specific financial data.

According to CBC News, Atlantic Lotto's GeoSweep game has never paid out its daily Cdn$250,000 grand prize in more than a year's worth of draws, concluding that this is a clear sign of poor sales take up.

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