Ann: Term sheet signed with Lotterywest, page-67

My understanding of this agreement with Lotterywest is that it's short term pain, potential long term gain.

JIN are giving up their reseller capacity in WA and in turn will be purely a SAAS play there. Initially, running along side Lotterywest current platform and handing over ownership of their customer base to Lotterywest directly but being run with a service fee through JIN platform.

What this means is a loss of their higher margin reseller revenue being replaced with lower margin SAAS revenue on only the part of Lotterywest customer base that JIN previously had.

The long term silver lining is that if JIN platform performs well then Lotterywest is likely to move their full customer base onto JIN SAAS platform.

So short term rev reduction but if all goes well long term rev upside of a full SAAS contract - with added bonus of being able to promote themselves as a SAAS platform for a full state government lottery when competing for other contracts.

SP becoming very attractive - can't see a fall below $10 and anything approaching that level is a strong buy IMO.