Tropical Gaming Co. Ltd. Corrects UDP Guardian

March 17, 2010

The Editor

The El Guardian Newspaper

Belize City Belize

Sir,

We have read the article entitled ‘Lotto in Limbo” in last Thursday’s edition of your newspaper and must make comment.

Your article seems to suggest that GOB intends introducing some new regulations to better protect the interest of Lotto players and to safeguard their winnings; and, that Tropical Gaming has been resisting those measures. Your article suggests further, that GOB’s goal is “to retrieve more revenues”.

We assert that your article is correct in only one material particular: GOB is trying to extract more revenues. In this regard, GOB now insists in increasing Tropical Gaming’s annual license from $6,000.00 to $160,000.00. (This last figure was negotiated down to $80,000.00); now insists on a 15% share of the Company’s gross revenues; a 50% share of all un-claimed prizes; and, a 2% participation in all dividend distributions.

With regard to the protective measures, we are not aware that GOB has sought to introduce any new terms to the contract that expired on February 23, 2010 that even remotely resembles measures to protect the public. Management notes here that Tropical Gaming has always promptly honored valid winning tickets presented.

We are aware that GOB has recently introduced an amendment to the Lotteries Control Act, but here again, the objectives of the amendment have nothing to do with such noble goals as protecting the public or Lotto players. Rather, the primary objectives seem to be a change in the constitution of the Lotteries Committee; vesting power in the Minister of Economic Development to set licence fees; and, permitting the Lotteries Committee to grant licences for up to ten years (the present legislation does not allow the Committee to grant licences for periods exceeding one year). With regard to this last, Management is of the view that this amendment became necessary for one reason only: To legitimize the ten year licence that will have to be issued to BRADS for the Boledo contract, a contract that must be signed by April 30, 2010.

On the matter of contract renewal negotiations that, as your article put it, “are still underway”, Tropical Gaming considered negotiations to have been concluded from as early as February 24, 2010. On that date at meeting held in Belmopan between Mr. Gian Ghandi, Mrs. Yvonne Hyde (CEO in the Ministry of Economic Development and Chairman of the Lotteries Committee), Messrs. B.Q.A. Pitts and George Swift (both representing Tropical Gaming in the negotiations), there was agreement, by all parties, to the terms of a new contract. In keeping with his promise made at the end of that meeting, Mr. Ghandi distributed the following day, to all interested parties, a copy of the contract (see attached copies of the email and the contract sent by Mr. Ghandi). Mrs. Hyde also confirmed that an agreement had been reached and so did a faxed letter dated February 26, 2010. That letter (see attached) also indicated the date on which the contract would be ready for signature.

The clear suggestion in the last paragraph of your article “if they (Tropical Gaming) do not accept more regulation and the other protection measures requested, then the tendering process will begin” is misleading and could not have come from the Ministry of Economic Development. We make the additional comments that:

• Tropical Gaming knows of no new regulations;

• No such regulations have been introduced in any discussions had with the Ministry of Economic Development personnel;

• Tropical Gaming, would welcome any regulation that would enhance the integrity of its games even further.

On a final note, Tropical Gaming must observe that contract renewal negotiations have been unnecessarily long for one reason: GOB’s refusal to grant to Tropical Gaming, the same exclusive rights that will be afforded to Brads with respect to the Boledo games. Brads contract and licence will be exclusive for a ten year period. Tropical Gaming has been offered a ten year contract but with exclusivity for only five of those years.

In fact, GOB has since reneged on the February 26, 2010 agreement and, with no explanation has decided, without any consultation, to reduce the contract term from ten years to five years (see copy of email dated March 03, 2010 from the Ministry of Economic Development).

Respectfully

Tropical Gaming Co. Of Belize Limited

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