Mexico's Televisa to lure viewers with lottery

By Cyntia Barrera Diaz

MEXICO CITY (Reuters) - The actor, a stocky man in a tropical shirt, shows off the fancy boat, luxury mansion, and snazzy sports car he got with the help of his lucky five-leaf clover.

Meet flashy Tomas Varo, a recurring character starring in Mexican broadcaster's Televisa ad campaign for a new lottery business linked to its TV shows that it hopes will lure millions of viewers to games by offering cash and other prizes.

The company has not specified the size of the cash awards or the specific types of prizes.

The games could be in the form of phone-in TV quizzes or scratch cards with questions on Televisa shows. They will be all include a five-leaf clover logo, like the one Varo wields, that goes one further than the traditional lucky four-leaf clover.

Although unlikely to generate revenues soon, Televisa's new venture is seen as reaping long-term benefits, especially after its plans to expand in the U.S. Hispanic market was stalled due to legal disputes with partner Univision Communications Inc..

"We believe the lottery business will be an important revenue growth driver in the medium to long term," Morgan Stanley said in a report.

Analysts estimated Televisa's gaming business could generate between $175 million and $216 million this year, equivalent to 5 percent of total revenues.

While the venture will boost Televisa's top line, some are skeptical about its impact on overall performance.

"It will certainly be a notably remunerative business ... but it's not likely to represent the new Klondike," Bear Stearns said in a report last week, referring to the 19th century gold rush on Canada's Klondike River.

The broadcaster has kept a tight lid on its gaming plans after a controversial 2005 permit it got from the government to run bingo halls and other games triggered angry complaints from established players and opposition lawmakers.

Unlike market leaders Caliente and CIE, which were required to build dog and horse tracks before they could operate bingo halls and sports books, Televisa got the gaming license right away.

Televisa has five bingo halls, under the PlayCity brand, running in the capital and in the nearby state of Puebla. Its goal is to open five more this year.

Televisa also plans to install some 4,000 lottery terminals across the country, according to analysts.

Local media has reported that Oxxo, the fast-growing convenience store chain of bottler and brewer Femsa, will carry a chunk of Televisa's lottery terminals.

But details about how it will work are still unclear. Televisa and Femsa have declined comment on any such deal.

Reuters/Nielsen