1 / La Fleur’s Magazine / November/December 2011 La Fleur’s Magazine / November/December 2011 / 2 contents November/December 2011
4 Lottery Biz 28 Corporate Profile: Bally Technologies The Oregon Lot- La Fleur’s Magazine in- tery is market- terviews Dick Haddrill, ing a truly epic CEO of Bally Technolo- Holiday Sweater gies, on changing market Scratch-it. The conditions for the global Maryland Lottery VLT market. is forecasting a blizzard of sales 29 WILL Profile: Alice Garland for two holiday North Carolina Education Lottery online promos. The Nebraska Lottery executive director Alice Garland is whips up fun with Frost-O-Matic web profiled for La Fleur’s WILL series. Publishers app. The California Lottery launches its Teresa Markle La Fleur first $10 scratch ticket. Florida Lottery 30 Industry News
3 / La Fleur’s Magazine / November/December 2011 Epic Holiday Sweaters on its ear this holiday season,” said Hardy. “POP includes characters from The Oregon Lottery is challenging the tickets donning Epic Sweaters and players to give the truly epic present: gift box towers holding cards shaped the Holiday Sweater Scratch-it. like holiday sweaters.” lL o t e r y B i z “Each year we try to develop a To create buzz through its social game and promotion that represents media channels, the lottery is also the essence of brand Scratch-its—a offering players a chance to get pho- little bit of fun,” said Carole Hardy, tographed in their Epic Sweaters at assistant director, marketing, Oregon holiday events, such as the Portland Lottery. “Holiday sweaters are a tradi- Holiday Ale Festival and The Wood- tion that everyone loves to make fun of, burn Company Stores Outlet Mall. but that they also embrace.” “We have found that if we pro- The “brain-blizzard” for this epic vide photo opportunities for people idea resulted from the Oregon Lot- at events, people will take photos of tery’s in-house Scratch-it product team themselves and post them immediately playing “snowball” with BPN (the lot- to Facebook. We are helping them do tery’s ad agency). Overall, we reached the highest sales week for Scratch-its in the history of that by using a service that instantly Hardy said the group’s mission was prints a hard copy of a photo and im- to create a holiday ticket and campaign the lottery—hitting a $4 million+ sales week. Our average weekly sales are mediately posts it to their site so that effort to attempt to match last year’s others can share,” said Hardy. holiday ticket. around $2.1 million,” said Hardy. The Holiday Sweater Scratch-it The lottery has contracted with a “For What’s in Santa’s Beard, our $2 Portland-based company, Paparazzi holiday game sold last year, we began features a four-scene game, TV, radio, interactive, POP and social media ele- Tonight, to take the photos at events. distribution in late October (weeks ear- Holiday sweater wearers will also lier than all previous years), increased ments. “The campaign showcases how receive a free Truly Epic Holiday the number of our $2 price point Sweater Scratch-it and be invited to holiday game by 50% and sold through The Truly Epic Holiday Sweaters have turned the Oregon fashion industry sign up for an Epic Holiday Prize (an the product by the end of December. iPad 2).
La Fleur’s Magazine / November/December 2011 / 4 “All they have to do is to sign up “This nth promotion is offered a few for the Oregon Lottery player data- times a year and does especially well base through laptops provided at the during the holidays,” said Hofferbert. events,” said Hardy. “If they invite “It continues to produce sales increases friends to sign up as well, they will of 15% to 20%.”
l L o t e r y B i z get multiple entries into the drawing. “ The lottery is also running a Face- The Truly Epic Holiday Sweater is book contest to promote its $2 Santa only one of four fun holiday Scratch- Paws ticket. “The Keith Kimber- its. “All of the Other Reindeer was lin-licensed property from Pollard also created as a joint venture between Banknote uses six scenes to feature our ad agency and our product team,” six different cute animals (three cats said Hardy. “Santa Paws Scratch-it and and three dogs),” said Nicole Ramey, Holiday Treasures complete the lineup. creative products manager, Maryland We are on track to sell through all of Lottery. the games which will help us meet or The lottery developed a small scale exceed the highest sales week ever for Facebook contest to support this ticket. Scratch-its from last year.” Players can upload photos of their pets for the Cutest Pet Contest. “The Pick 3 Let It Snow Promotion “We thought it would be a nice Let It Snow Sales is a ‘Thank You’ to our most loyal play- way to connect fans with the ticket The Maryland Lottery is forecasting a ers,” said Michael Hofferbert, strategic using their love for their pets,” said blizzard of sales from its two holiday products manager, Maryland Lottery. Jason Snapkoski, new media manager, terminal game promotions. In addition, keno players are re- Maryland Lottery. “Also, we felt it was From Nov. 28-Jan. 1, players re- warded with the Keno Sprinkler a good way to test a contest like this ceive instant win cash vouchers in promotion, which runs Nov. 21-Jan to see how powerful the tool can be to the amounts of $5, $10, $25 and $50 1. Players can double to triple their help promote sales without any other when they wager $1 or more on Pick winnings while playing keno. Both additional advertising. The verdict is 3. Vouchers are generated on an nth promotions are funded through the still out.” (As of November 9, the lot- basis. Players can redeem immediately. unclaimed prize fund. tery had 600 entries into the contest.)
5 / La Fleur’s Magazine / November/December 2011 The pet contest is the third promo- of research well over a year before tion which the lottery has run through launching this game to determine WildfireApp.com. which concept was the strongest and also which callouts were most signifi- Frost-O-Matic cant to our players,” he added. lL o t e r y B i z The lottery has a second advertising The Nebraska Lottery cooked up a wave with a holiday message to launch sweet promotion for its $3 holiday on December 12. There is holiday ticket, Sugar Cookies. creative for general market, Spanish The lottery is promoting the $3 language and Asian language markets. game with a fun web application called The tag for the campaign is “It’s a The Frost-O-Matic, where players can whole lot of cash.” Spanish POS prom- design their own sugar cookie. ises “es mucha lana.” Translated this Players can scan the QR code on the means lots of wool, which is slang for ticket or go to lottery’s website to use lots of cash. To illustrate the idea, the the application. lottery’s Spanish language ad features “After selecting a background, sheep dressed in Santa hats. frosting, and greeting, players can post The general market holiday ads also their cookie on Twitter and Facebook, stress the rich payout for the $10 ticket: or send it via email to a friend,” said “Jingle bells. Rolls of bills. Money ev- Neil Watson, public information of- erywhere.” ficer, Nebraska Lottery. Lots of Moolah For retail support, the lottery in- “The Frost-O-Matic gives us an “Deck the halls with lots of moolah” is troduced a 7-inch ticket dispenser to opportunity to increase awareness of the California Lottery’s call to action improve visibility of tickets as well as the Sugar Cookie game outside of our in holiday ads hyping the new $250 provided a LED light for the in-counter core player base,” said Watson. “When Million Cash Spectacular ticket. It was display to draw more attention. It also you email a cookie to a friend or post launched September 30. developed a Check A Terminal decal it on Twitter or Facebook, a message This ticket is likely to produce re- to optimize existing real estate at retail. is included about playing the Sugar cord moolah as measured by sales. It Brennan said activation goals for the Cookies game.” is the first $10 ticket ever sold by the $10 game were established for the first No projections are available on how California Lottery. 10 weeks of introduction to ensure dis- many players will use the app. “This is Ticket sales have been averaging tribution was paced to meet sales goals. our first campaign targeted to mobile almost $11 million a week, which has “The $10 game was added to the users,” said Watson. “But the initial exceeded the lottery’s projections. target bonus game mix for our field response with a minimal amount of “Total sales thus far for this game sales staff bonus incentive program,” promotion is encouraging. It indicates alone are almost $67 million in the said Brennan that our players are familiar with QR five weeks since launch,” said Michael Scheduling the spotlight ticket’s codes and use them without prompt- Brennan, deputy director, sales & launch during the fourth quarter of ing.” marketing, California Lottery. “Our the calendar year optimizes the sales The Frost-O-Matic is promoted on highest weekly sales of $13.48 million potential. the terminal’s electronic displays at re- were achieved on November 5. This “Traditionally the holiday time tail. In addition, the lottery is planning was largely due to our full advertis- frame is one of our higher sales periods a special email focusing on its holiday ing campaign which kicked-off on games and the Frost-O-Matic app. It October 31.” will be sent to the player registry in The lottery chose the spotlight ticket early December. based on its success in other markets. “We researched the industry to They make great see what was the most successful ap- last-minute proach to $10 game introductions and holiday gifts! together with our large print runs it was a perfect fit to launch our first $10 game as a spotlight game,” said Bren- nan. “Spotlight games emphasize the total amount of prizes contained in the entire game.” nelottery.com Must be 19. Please play and give responsibly. Compulsive Gambling Help Line: 800-GAMBLER. WOB “We conducted various rounds
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7 / La Fleur’s Magazine / November/December 2011 and also when we are able to attract games,” said O’Connell. “We spotlight- new and infrequent players,” said ed Peppermint Payout when featuring Brennan. “Since we expect to have as a visual.” our $10 game in market for quite some time, we wanted to provide plenty of A Christmas Story™ lL o t e r y B i z support throughout the year.” Move over Santa Claus. Ralphie is coming to town. Two U.S. lotter- Peppermint Payout ies—Arkansas Scholarship Lottery “Follow Your Nose To The Perfect and Kentucky Lottery Corporation Gift!” is the slogan for the Florida Lot- (KLC)—are selling the MDI-licensed tery’s $2 Peppermint Payout ticket. A Christmas Story™ ticket based on The $2 ticket is the lottery’s first the classic holiday movie. peppermint-scented ticket. The lot- Both lotteries feature “the old tery is marketing six different holiday man’s” infamous leg lamp on the is conducting regional promotions, games. They use several specialty ticket. It is instantly recognizable to the including store decorating contests and printing features, such as foil paper, film’s enormous fan base. pack activation incentives. metallic inks and scene games. KLC jumped at the chance to market “We have four sales regions, so each “Although it is early in the season, this property.”Every year when we region developed their own promotion our overall holiday ticket sales are begin planning our holiday games, this to award two retailers per region with already up by 14.98% over the same movie always comes up in conversa- the ‘major award’ of the legendary period last year and in its first week of tion so we were extremely pleased life-size leg lamp made so famous in sales, Peppermint Payout is 7% higher to learn that MDI had obtained the the movie,” said Goodwin. than the $2 holiday game launched at license,” said Rhonda Goodwin, prod- Kentucky Lottery launched its ticket the same time last year,” said Cynthia uct manager, Kentucky Lottery Corp. on October 20. “We’re projecting about O’Connell, secretary, Florida Lottery. In 2010, it ranked as December’s six cents per capita per week which “This year’s October sales were the best top movie on basic cable for adults equates to about $260,000 in weekly in our history, so hopefully people are 18-49. “A Christmas Story is a beloved sales,” said Goodwin. feeling a little more optimistic during classic,” said Julie Baldridge, interim The ticket is priced at $3, which the holidays this year.” director, Arkansas Scholarship Lottery. is a relatively new category for Ken- The lottery re-edited last year’s “The mix of whimsical humor and tucky Lottery. “We felt the popularity holiday advertising campaign featur- nostalgia makes for a fun and one-of- of this property could really help us ing Christmas carolers singing about a-kind addition to our holiday lineup.” in building a strong foundation and scratch tickets. The movie’s tremendous popular- loyal player base for this price point “We included the new ticket art, ity would also make it an easy sale by as previous properties such as Loteria supers and updated the voiceovers to lottery retailers. “We knew this classic and Minute To Win It have done,” said share the benefits of the new holiday brand would resonate with our current Goodwin. players and would also grab atten- Arkansas Lottery launched its $2 tion from fans of the movie thereby ticket on November 1. “We anticipate encouraging trial from lapsed and/or that the theme will help increase sales non-players as well,” said Goodwin. over last year’s $2 holiday game, “Additionally, since this brand which averaged $250,000 weekly for is considered an ‘all-time holiday the weeks before Christmas,” said Bal- favorite,’ we knew we could success- fully promote the tickets as a great gift-giving idea,” she added. Both lotteries used the leg lamp for artwork. But numerous movie “assets” from the movie are available through the agreement with Warner Bros. Con- sumer Products, including drawings of Ralphie in his pink bunny suit and silhouettes of Flick with his tongue stuck to the schoolyard flagpole. To capture movie fans’ attention at lottery retailers, the Kentucky Lottery
La Fleur’s Magazine / November/December 2011 / 8 9 / La Fleur’s Magazine / November/December 2011 dridge. “Our players in Arkansas have Delaware Promotion shown an appreciation for licensed games, such as Wheel of Fortune® In October, Vernon Kirk was named and Betty Boop™. They have allowed acting director of the Delaware Lottery, us to reach new and varied groups of replacing Wayne Lemons who had lL o t e r y B i z retired. Kirk has served the Delaware players. We hope that in addition to ap- pealing to current players, A Christmas Lottery since its startup, most recently Story™ will attract some enthusiastic as principal deputy. fans of the movie to try our games for the first time.” Capitals Ticket The D.C. Lottery launched its first Holiday Pouch hockey ticket in September. The $5 results coming in ahead of forecast, we The Minnesota Lottery hopes to wrap Washington Capitals scratcher repre- feel that the ticket has appeal beyond up big holiday sales with its $20 pouch sents the D.C. Lottery’s first team ticket the Caps fan base.” game. Called Holiday Celebration, with the Capitals hockey organization. each pouch game features an assort- “The Washington Capitals are one Illinois Appointment ment of price points: $1, $2, $5 and $10. of the most successful hockey teams in the NHL,” said John Gorman, strategic Illinois Gov. Pat Quinn has appointed Despite the poor economy, sales Michael Jones as superintendent of the prospects are good for the $20 game. development specialist, D.C. Lottery. “They have a strong fan base in the Illinois Lottery. “Our $20 tickets represent 20% of our Jones will be responsible for maxi- overall scratch sales,” said John Mel- D.C. Metro area, selling out every night at the Verizon Center.” mizing lottery profits and overseeing lein, director, marketing, Minnesota the private firm hired last year to man- Lottery. “A $20 pouch price point, es- The Capitals ticket features three scenes, a top prize of $50,000, and a age Illinois’ lottery operations for the pecially one designed for a gift, will next decade. be well received by our Minnesota host of second-chance prize opportuni- ties, including 2012 season tickets and He brings decades of experience players.” to this critical position. He served as This is not the lottery’s first experi- “Be a Cap for a Day.” “This is an MDI licensed product,” superintendent of the Illinois Lottery ence in selling a pouch game. “Min- from 1981-1985 under former Governor nesota offered several pouch games said Gorman. “We realized significant value-added with this program from James Thompson, overseeing a record many years ago, but while the tickets billion-dollar increase in sales. sold well, the production cost was too the Capitals, including team merchan- dise and tickets, premium signage, After leaving the position, he found- prohibitive to create an on-going pouch ed a marketing promotion firm that game,” said Mellein. event opportunities and social/online marketing opportunities.” specialized in assisting all forms of To maximize attention, the lottery gaming with maximizing sales and is spotlighting the prizes. “We felt the In negotiating its partnership agree- ment with Monumental Sports and profits in an ethical and responsible best marketing of the pouch game we manner. could do would be to create compel- Entertainment (Verizon Center), the lottery focused on key elements that Jones has served as a consultant ling callouts on the actual front of for lotteries in 13 states, the District of the pouch. ‘Guaranteed Win in Every directly supported the marketing of the Capitals ticket. Columbia, the Virgin Islands, Great Pouch!’ and ‘6 Lottery Tickets inside Britain, Ukraine, British Columbia and Valued at $21!’ should gain immedi- “For example, we negotiated sig- nificantly more on-site presence within Western Canada. Jones also served as ate attention from both clerks and a director of Independent Lottery Re- players.” the Verizon Center on key game nights, thus allowing us to sell and promote search that uses market and consumer this ticket directly to the fans. That type analysis to evaluate growth potential of direct interaction with the fans was in lotteries. very attractive to us,” said Gorman. The game is currently indexing at Correction 109 after five full weeks on the mar- The story “Weekly Grand,” which ket. “Honestly, we had some concerns appeared in Lottery Biz in the Septem- about a hockey-themed ticket. Even ber/October 2011 issue of La Fleur’s though the Caps are a great team, we Magazine, inaccurately described the weren’t sure if the ticket would appeal Idaho Lottery’s top prize for Weekly beyond that core audience of Caps Grand. The correct amount is $1,000-a- fans,” said Gorman. “With the sales week for a year (not life).
La Fleur’s Magazine / November/December 2011 / 10 11 / La Fleur’s Magazine / November/December 2011 FY11 North American VLT Report By Byron La Fleur n fiscal 2011, the U.S. electronic expectations, with win per day figures located facilities,” he said. “Although lF Y 1 V L T R e p o r t the horse racing industry benefits from gaming machine (EGM) industry exceeding $700 on weekends. And, Igrew 4%, with net machine income only half of the casino is open so far; the substantial subsidies paid to them climbing to $7.79 billion from $7.49 the second phase will be open by year- from casino proceeds, the businesses billion, according to La Fleur’s Fiscal end,” said Medenica. are essentially independent from a 2011 VLT Special Report. The five-year The Aqueduct casino features 2,280 customer perspective. That is why we growth rate, however, is 34%. VLTs and 205 electronic table games as avoid using the term ‘racino,’ which Since the economy tanked in 2008, of October 28th. The remaining 2,245 may have a negative marketing con- the industry has experienced single- VLTs and 270 electronic tables—com- notation for some customers.” digit growth. bining for a total of 4525 VLTs—should Bloodhorse Magazine described the “I would sum up the North Ameri- be operational by mid-December. Aqueduct casino as “a financial life raft can VLT industry in three words: ex- Yonkers Raceway, which operates for the thoroughbred industry.” plosive, volatile and competitive. As New York’s other big casino, and Aq- more states face financial challenges, ueduct should significantly increase New Jurisdictions On the Horizon the footprint of the VLT industry has profits for the New York Lottery. In North America, states and prov- quickly expanded,” said John Mus- “Yonkers is bigger than our seven inces legalizing VLTs have reaped the grave, director, West Virginia Lottery. smaller casinos put together and Aque- rewards. It is not unusual for a juris- duct will be as big, if not bigger, than diction to see double-digit increases New York Casino: Aqueduct Yonkers, so the addition of Aqueduct in revenue and profits during the first New York Gov. George Pataki signed will increase our casino profits by over few years of operation. the law to permit VLTs operated at 50%,” said Medenica. Now, as the unstable economy racetracks in 1991. “We have always said that Aq- threatens to double dip one day and In 2004, Saratoga Racetrack opened ueduct has the potential to equal or then turn around the next, more juris- the first racetrack casino, followed by exceed the performance of Yonkers, dictions are looking to VLTs to provide three other racetrack casinos (Finger which produced over $318 million for a safe stream of revenue. Lakes Gaming and Racetrack, Fair- New York education last fiscal year,” “Casino gaming is likely to continue grounds Gaming and Raceway and he added. “We still believe those esti- proliferating throughout the country Monticello Gaming and Raceway). mates. We would expect a minimum so long as states encounter challenging In 2005, Batavia Downs Gaming, of Yonkers-level performance for the budget environments. States with no Tioga Downs Gaming and Yonkers full year of fiscal 2013.” casino gambling are giving it a look; Raceway-Empire City commenced However, Medenica wants to set the states with only slot machines will operations. In 2006, Vernon Downs record straight. Both Yonkers and the look at expanding to table games. And Gaming began operations. Aqueduct have been called “racinos,” mature markets, like New Jersey, are Between fiscal 2005 and fiscal 2011, which is the generic industry term for looking at new forms of gaming such the New York Lottery’s VLT net ma- a VLT casino operated at a racetrack. as sports betting. The result is greater chine income increased 379% to $1.1 Medenica prefers to avoid the term competition and more gaming accessi- billion from $231.7 million. The state- racino. “We see very little consumer bility,” said Stephen Martino, director, wide VLT network expanded to 12,524 overlap between our casino customers Maryland Lottery. devices operated at eight casinos. and the horse racing customers at co- People no longer want or need to On October 28, 2011, the ninth ca- sino opened in New York. The Empire State, like most states in the U.S., is cash strapped due to the unfortunate economic conditions that have plagued the world for the past few years. The VLT casino at Aqueduct has en- countered numerous political and legal delays. But the preliminary results are “simply amazing,” said New York Lot- tery director Gordon Medenica. “Although it’s still in the early days, Aqueduct has far exceeded our
La Fleur’s Magazine / November/December 2011 / 12 13 / La Fleur’s Magazine / November/December 2011 travel to resort casinos, à la Las Vegas oversight,” added Logue. “Either way, 2011 VLT Special Report.). and Atlantic City, because customers I believe the number of jurisdictions In fact, West Virginia Lottery’s VLT want more convenient locations, con- offering VLTs will continue to grow net machine income declined 1% in sidering the current economic condi- for the next several years.” fiscal 2011. “West Virginia is not pro- tions. This has kept the VLT business jecting an increase in VLT net machine lF Y 1 V L T R e p o r t id tlantic ompetition healthy and more appealing for new M -A C income in fiscal 2012. We have experi- jurisdictions. Depending on the number of jurisdic- enced huge success in the VLT market “I think that as jurisdictions begin tions that enter the VLT market in the in this jurisdiction, but as competition to understand that their citizens enjoy next few years, there could be a nega- on our borders continues to increase, casino gaming, and will travel out- tive effect on the existing industry. it has become more difficult to sustain of-state to do so, then it makes sense The legalization of slots in Pennsyl- higher levels of net income,” explained to offer people the option of playing vania fueled VGD expansion as well Musgrave. closer to home,” said New York’s as heightened aggressive competi- Similarly, the Delaware Lottery Medenica. “Massachusetts looks close tion between the mid-Atlantic states experienced a 9% decrease in VLT and New Hampshire has joined in the operating VLTs in Delaware and revenue in fiscal 2011 compared to discussion.” West Virginia. In September 2010, the fiscal 2010. “This was the result of not However, it can take an extended Maryland Lottery commenced its VLT only the continued poor state of the period to legalize VLTs in any given operations. economy, but increased competition jurisdiction. “The possibility of new “With the success of VLTs in several from new casinos opening along our jurisdictions legalizing VLTs in North jurisdictions in North America and the borders in both Pennsylvania and America is certainly a possibility at any increasing need for more revenue in Maryland,” said Logue. point, but video lottery brings contro- each state, I expect other jurisdictions Maryland’s two currently operating versy so anything at this point is pure will enter this market,” said West Vir- casinos—Hollywood Casino Perryville speculation,” said Norm Lingle, execu- ginia’s Musgrave. “As new properties and Casino at Ocean Downs—will tive director, South Dakota Lottery. are developed and gaming expansion have their first full year of operation At this point of time, though, Ohio, places even greater competitive pres- in fiscal 2012. is definitely past speculation. The lot- sure on state revenues, states will find Maryland Live!, Maryland’s soon to tery’s online system vendor, INTRA- it increasingly difficult to sustain play be largest casino, is slated to open in LOT, has been awarded a two-year and keep entertainment dollars inside June 2012. The Maryland Lottery also contract to implement a monitoring their own borders. It will then become plans to award two more VLT venue system for tracking VLTs. Due to put- harder to increase net income and pro- licenses. ting VLTs on the fast-track, it is pos- vide the growth that drives success.” “Background suitability investi- sible that the system could be up and The mid-Atlantic states are well gations are being conducted for the running as early as January 2012. aware of the consequences of an overly Rocky Gap and Baltimore City casino On October 18, Ohio Gov. John Ka- crowded market since there is signifi- applicants,” said Martino. “Once that sich signed Executive Order 2011-22K, cant border competition. (The state lot- key step is complete, the Video Lottery which should speed up the implemen- teries in Delaware, Maryland and West Facility Location Commission has in- tation of VLTs. Virginia, together with the Pennsylva- dicated that it would like to award the “As a result of recent legis- nia Gaming Control Board, represent a licenses as soon as possible.” lation, Ohio is gearing up now to combined $4.1 billion industry, as mea- Delaware, being wedged in be- offer VLTs within the next year,” sured by annual combined net machine tween Pennsylvania and Maryland, said Jim Logue, deputy director, income, according to La Fleur’s Fiscal may be bracing for another decrease video lottery, Delaware Lottery. “There are a number of other jurisdic- tions that already have bills introduced in their legislatures and several more that are currently debating the merits of VLTs in anticipation of drafting legislation.” It varies by jurisdiction whether the state lotteries will operate the VLTs. “Some jurisdictions are proposing casinos under the lottery’s authority and control while others are creating separate Lottery Commissions for
La Fleur’s Magazine / November/December 2011 / 14 15 / La Fleur’s Magazine / November/December 2011 in revenue. “We will be faced with in- impacted our VLT market and also enacted statewide bans on smoking creased competition over the next year decreased revenue, but fortunately in all enclosed public places, includ- with the openings of two rather large the increase of other gaming at our ing Delaware, Maryland, New York casinos, one in Anne Arundel County, racetracks, table games in particular, and Oregon, which represent four of Maryland and the Revel property in has helped to lessen the blow you the six lottery jurisdictions that cur- lF Y 1 V L T R e p o r t Atlantic City. We currently attract a anticipate as others enter the market rently permit VLTs. The Rhode Island large number of players from Balti- and/or expand their product offer- Lottery’s two state-licensed gambling more and the surrounding area so we ings,” he said. facilities—Newport Grand and Twin believe the Anne Arundel opening will River—are exempt from the smoking have a significant negative impact on Poor Market Conditions ban. Currently, West Virginia Lottery our player base resulting in a reduction The South Dakota Lottery reported has no smoking ban. of VLT income in the next fiscal year,” a 11% decline in VLT net machine “The competitive threat for video said Logue. income in fiscal 2011, which dropped lottery is that our players will spend “We were able to temper our losses from $215.4 million to $191.76 million. their discretionary entertainment dol- a little with the addition of NFL Parlay “We hope to stop the decline lars on other forms of entertainment. Sports Betting, which we instituted brought on by the economy and smok- While we have yet to recover from the back in 2009,” added Logue. “We are ing ban,” said Lingle. “The Lottery full effect of the economic downturn the only state east of the Rocky Moun- Commission authorized the imple- [and statewide smoking ban from tains legally permitted to offer sports mentation of video lottery line games. 2009], we have remained competitive betting. In addition, we added live Since that time, we have been testing for our players’ discretionary income table games to our casino mix in fiscal new hardware and software that pro- as noted by an increase in lottery 2011. If you factor in our table game vides for the implementation of line revenue last fiscal year over the two revenue, the Delaware Lottery actu- games. We are hopeful that players previous years,” said Larry Niswender, ally realized a 5% increase in overall will enjoy the new game option and we director, Oregon Lottery. casino gaming revenue for fiscal 2011 can bring net machine income back to In fact, the Oregon Lottery’s VLT over fiscal 2010.” pre-smoking ban levels.” net machine income rose 2% to $720.5 Musgrave explained that the West The tough economy and smoking in fiscal 2011, up from $707 million in Virginia Lottery has been able to tem- ban have been suppressing growth in fiscal 2010. per its own losses as well. “Competi- the VLT market for the last few years. North of the border, the Canadian tive pressures from other states have As of November 2011, 27 states have lotteries operating VLTs have seen a
Oregon Lottery: Video Lottery Standards Initiatives The number one gaming initiative in G2S protocol to better meet the lottery ing management systems and VLTs,” Oregon is to replace its current DXS industry’s unique business needs. he added. “Regarding certification, Video Lottery system and terminals “We have been working with the we worked with Gaming Laboratories with a new system and network of Gaming Standards Association (GSA) International (GLI) to establish prod- VLTs that use the new standards- to develop specific protocol extensions uct testing standards for the lottery based protocol, G2S. that are necessary for wide area VLT market through test specifications “The overall goal moving forward networks, as well as championing GSA GLI-23 and GLI-28.” with a standards-based protocol and standards for responsible gambling The Oregon Lottery encourages shared cross-jurisdictional business (informed player class) and the guide- U.S. lotteries to actively participate in and technical requirements is to lines for a player-user interface (PUI),” the ongoing OAC efforts to develop reduce the time to market for VLT said Niswender. “The requirements we the technologies and standards to games and to open up new game defined for a PUI in the GSA Operator’s meet lottery needs. libraries,” said Larry Niswender, Committee are for a software-based “Increasing lottery membership director, Oregon Lottery. “This will solution that will allow operators and participation in the GSA will enable lotteries and vendors to focus to communicate directly with their allow us to increase our influence on consumer preferences in content players through a customized screen on the gaming industry at all levels rather than making investments in display on a VLT. through our common business re- proprietary and customized systems “Through our participation in the quirements and procurement efforts,” and platforms.” GSA Operator’s Committee and cross- said Niswender. “Our combined The Oregon Lottery has been jurisdictional initiatives, we have suc- efforts will help the industry move working with the Canadian jurisdic- cessfully influenced gaming vendors away from proprietary, customized tions over the past four years to cham- to implement GSA standards and to systems, games and VLTs to those that pion the evolution and adoption of the obtain GSA certification for their gam- embrace standards.”
La Fleur’s Magazine / November/December 2011 / 16 slow deterioration in VLT net machine several years, these jurisdictions will income. There has been a 14% decline spend over $1 billion on central sys- over the past five years. tems and electronic gaming machines Some provincial governments have (EGMs).” mandated reducing the number of in- Many North American lotteries are stalled VLTs. Overall, there has been a currently at a crossroads in determin- 6% decline in the installed base of VLTs ing when to migrate to the next genera- over the past five years. There are more tion of gaming technologies, according than 34,000 VLTs operated in Canada. to Niswender. In fiscal 2011 (ended March 31), total “The VLT industry has come a Canadian VLT net machine declined long way in recent years,” said ALC’s 3% to C$2.55 billion from C$2.63 billion Ryan. “The latest in VLTs offer more in fiscal 2010. relevant games, better integrated re- All five Canadian jurisdictions sponsible gambling toolsets, optimized operating VLTs—Alberta, Atlantic operational abilities, and the opportu- provinces, Manitoba, Québec and Sas- nity to build the best possible player katchewan—reported declines in fiscal experience. The industry is moving 2011 VLT net machine income. beyond the VLTs we used to know, The Atlantic Lottery Corporation and towards new technology that is (ALC) reported a 4% decline in VLT net rapidly evolving.” machine income in fiscal 2011. VLT technology is advancing rap- “This was largely attributed to a idly. “Manufacturers have really reduction in the number of VLTs in stepped up over the last several years Atlantic Canada, market conditions, as in terms of incorporating the latest in well as site closures,” said Shawn Ryan, technologies into their games,” said managing director, destination, ALC. Delaware’s Logue. “Bally has recently “We have not finalized projections for offered a couple of innovative prod- the coming fiscal year, but trending ucts including their Bally Curve, to-date would suggest further declines the first curved LCD screen, giving a are possible.” more real-life mechanical reel look to Further declines in VLT net machine their video product, and the ideck, a income is also projected in Québec. player interface device that consists “We are planning a continued but slow of a touchscreen button deck which decline until the economy picks up eliminates the need to replace a physi- and we renew our VLTs,” said Carole cal button deck when installing new Drolet, managing director, Société game content. The ideck is also capable des loteries vidéo du Québec (SLVQ). of displaying bonus events, including “The main contributing factors that we virtual wheels and more.” identified are two-fold: the economic In 2010, SLVQ awarded its new situation and an aging product (given VLT central system contract to SPIELO we have been using the same VLTs for International. SPIELO will deploy its more than eight years).” INTELLIGEN™ central system in 2012 It represents the first-ever G2S-based Evolving Technology distributed market solution to North To combat further declines, new VLT America. The new central system networks and machines are being enables remote game downloading, installed which will significantly im- game switching, remote diagnostics, prove operations. and Advanced Business Intelligence. “Oregon, Alberta, Atlantic Lottery, SLVQ will also be replacing its ag- Manitoba, Saskatchewan and Québec ing network with new VLTs supplied (SLVQ) are in the process of replac- by IGT and SPIELO International. ing outdated proprietary VL systems “We will shortly be piloting (in a with Gaming Standards Association test market) a new set of games from (GSA) open standards systems,” said SPIELO which includes new credit de- Oregon’s Niswender. “Over the next nominations and an increased number
17 / La Fleur’s Magazine / November/December 2011 of lines. We are looking forward to Association (GSA) and the operational made MegaHits a very popular game receiving feedback from our network benefits provided through the imple- with our players. Delaware is currently regarding the launch of our next gen- mentation of products based on G2S experiencing revenues over double the eration of VLTs,” said Drolet. and S2S protocols,” said Niswender. house average on these games. West This ongoing transformation of the “This commitment towards standard- Virginia and Rhode Island have seen lF Y 1 V L T R e p o r t gaming market suggests continued ization and operator investment plans triple and in some cases quadruple success for lotteries operating VLTs. has had a significant impact on influ- the house average on their MegaHits “The VLT business is very healthy, encing the business direction of gam- games.” as the casino gaming industry shifts ing industry participants. The product In West Virginia, progressive games from a destination resort model (e.g., development efforts of major EGM have historically been strong perform- Las Vegas, Atlantic City) to more of suppliers, VLT test specifications, such ers. “We have recently had very strong a distributed model where gaming is as GLI-23 and GLI-28, and the GSA sales of the MegaHits progressive available at more convenient locations have changed from a primary casino game,” said Musgrave. “This game has closer to customers,” said New York’s focus to one of addressing the needs outperformed the previous progres- Medenica. “People are discovering of WAN operators.” sive game and net proceeds for West that they don’t need to drive (or fly) Virginia by VLT per day are well above for three hours to enjoy an evening of MUSL Progressive Games the group average.” entertainment at a casino.” MUSL’s new progressive game, Mega- In conclusion, the state of the VLT In North America, there are two ba- Hits, has replaced Ca$hola to become industry in North America remains sic types of jurisdictional VLT business the next generation multi-state VLT stable and profitable. “Because of the models: wide area network (WAN) game. MegaHits is jointly offered by economy and increased competition, operations (bar and tavern market) and the Delaware, Rhode Island and West many established jurisdictions have venue-style operations (the casino/ Virginia lotteries. It links together a experienced declining revenues over racino model). WAN operations con- total of nine casinos in the three juris- the last several years but the benefits sist of VLTs installed in age-controlled dictions. realized through their contributions bars and taverns. Venue-style VLT “MegaHits continues to perform remain strong and continue to have a operations is segregated to gaming above expectations,” said Delaware’s positive impact on government bud- establishments. Logue. “IGT has provided strong game gets, revenue which they have now “WAN operators in Oregon and the content and they continue to refresh come to depend upon,” said Dela- Canadian lotteries have been ardent the game with new themes. This, com- ware’s Logue. supporters of the Gaming Standards bined with the increasing jackpot, has
VLT Manufacturer Perspective: State of the VLT Industry How would you describe the state of results. For instance, operators are VLT games. the VLT industry in North America? relying on our INTELLIGEN™ central The advent of a proven wide-area system applications like Advanced progressive for distributed markets o “There are a number of jurisdic- Business Analytics to observe and exert will allow lotteries to take big leaps tions looking at enhancing their game more control over the trends that affect forward in performance and player incentives investments and they are their day-to-day business. Meanwhile, appeal. We launched the world's first looking to create a more personalized our Proactive Diagnosis application live distributed wide-area VLT jack- player centricity and be more respon- significantly reduces downtime, pro- pot in Italy, and this solution has been sive to technology changes.”—Rich- tecting the operator's bottom line, a driver of the Italian VLT program's ard Haddrill, CEO, Bally Technologies while the Player User Interface is success. We expect these results to enabling more direct communication be replicated in North American o “The North American VLT in- with the player, and a more intimate VLT markets that want the appeal of dustry is in a state of transition as understanding of his or her needs and jurisdiction-wide jackpots offering government-sponsored jurisdictions desires. significant payouts. move toward offering less restrictive Game to System (G2S) technology This is a new era for the distributed and richer gaming experiences to their implemented for the distributed mar- VLT market, and we believe that these players. This latest VLT replacement ket is no longer a ‘nice-to-have.’ It's a advanced solutions will lead to more cycle has been an opportune time for must-have for VLT operations seeking sustainability and stability for North operators to introduce new function- greater flexibility on the gaming floor, American gaming operators.”—Victor alities and technologies that create faster speed-to-market for game con- Duarte, senior vice president & COO, operating efficiencies and increase tent, and the largest possible choice of SPIELO International
La Fleur’s Magazine / November/December 2011 / 18 Euro Christmas Tickets n December 1, children across Certainly, it is no surprise that the Europe begin counting down Advent Calendar would hold a special Othe 24 days before Christmas. place in the hearts of Finns, since Fin- It is a habit steeped in tradition. Each land is the home of Santa Claus. (You day a new shuttered window is opened can meet Santa Claus and cross the on the Advent Calendar. Inside the magical Arctic Circle every day at the window may be a small toy, a gift or Santa Claus Village in Lapland.) piece of chocolate. Veikkaus Oy has marketed its Ad- For adults, keeping an Advent vent calendar ticket for more than a Calendar is nostalgic; it recalls all the decade. “It is well known and people childhood excitement and anticipation are familiar with it,” said Erja Holsti, leading up to December 25. product coordinator, instants, Veik- “The tradition of Advent calendars kaus Oy. goes back a long time in Norway, of- As one Finn described it, “The ten with chocolate or small gifts as the Advent Calendar indeed is an old daily countdown,” said Silje Tysse, season tradition with its 24 ‘shutters’ brand manager, instants, Norsk Tip- numbered one for each day of Decem- ping. “Our Advent ticket has been on ber until Christmas Eve. Most of us the Norwegian market since 1999. It remember from our childhood how has become a tradition in many homes, eagerly everyone awaited what could and something both customers and be found next morning behind that retailers are waiting for. So I believe days´s shutter.” the tradition is the main reason why Scandinavian lotteries change the it’s so popular.” look of the Advent Calendar scratch ticket each year by featuring new artwork. One year, the shutters might appear in a big fir. Another year they could be scattered throughout the elves’ workshop or hidden on Father Christmas’ red velour jacket. The idea is simply to make an emo- tional connection between the lottery player and his best Christmas memo- ries from childhood. The only thing In Denmark, Christmas is called that never changes is the format. There Jul, which is an old Nordic word. So must be 24 shutters, numbered 1-24. Danske Spil created an Advent scratch In marketing Advent Calendar tick- card called Julekalender Quick. ets, Scandinavian lotteries emphasize “Having an Advent Calendar is the traditional fun associated with this a tradition in Denmark,” said Anne past time. Katrine Schaper, product manager, Norsk Tipping’s main slogan for instant games, Dansk Spil. Julekalender is “24 chances for Christ- Since 1994, the lottery has marketed mas.” its Julekalender Quick ticket. “It has Danske Spil emphasizes that the been our offer of the Advent Calendar lottery’s Julekalender is exclusively an for grown-ups,” said Schaper. “For adult pursuit—”The only Christmas many people and families over the tradition which can make you rich.” years, this has turned into a permanent Finally, Veikkaus Oy reminds lot- tradition either to buy it for themselves tery players to recall how the calendar or to give it as a present. Therefore, made them feel as children—“Scratch many non-players buy the Julekalen- more joy for the Christmas expecta- der Quick.” tion.”
19 / La Fleur’s Magazine / November/December 2011 design. Christmas ticket sales should be brisk. “Norway has been fortunate and has not been [negatively] affected by the economic situation as much as the lf e a t u r rest of Europe,” said Tysse. “Therefore, I don’t think we will see any effect on the sales.”
Danske Spil Julekalender Quick is traditionally printed in an A4 format (which is sized 8.3” × 11.7”). The ticket is illustrated each year by a famous Danish artist. “Every year we have a new artist to make the painting/illustration for us,” said Schape. “The lottery looks for interesting concepts, but often artists send us their suggestions. For instance,
Two Norwegian Calendar Tickets In 2011, Norsk Tipping introduced a second Advent Calendar ticket on the this year the illustration is made by market at a higher price, instead of Johan Linneballe who also created our changing the price point on its exist- Danske Spil logo.” ing game. Julekalender Quick has an exclusive As in years past, the lottery is mar- price point of 50 DKr. The top prize for keting a Julekalender Flax ticket priced the game is DKr 1 million. at 50 NOK. The stunning vertical ticket Ticket sales are expected to be brisk, features a hillside of village cottages despite poor economic conditions in dressed in pastel blue, lavender and Europe. green. The 24 scratch-off areas appear “It didn’t have an impact last year, in the windows of the house. so we don’t expect that the economy All new is the Star Julekalender will have an impact on the sales this 2011 priced at 100 NOK. It displays a year either,” said Schaper. gingerbread cottage. Since the lottery did not increase Both Advent Calendar tickets are the amount of tickets printed for Jule- printed by Pollard Banknote. kalender Quick, sales are not expected “It’s way too early to predict how to increase. the sales will go this season, as the The Advent calendar ticket is a very calendars have only been in the market important product for the lottery. It for one week,” said Tysse. “But we’ve represents about 10% of the lottery’s had an increase in sales every year, total sales. and see no reason why we shouldn’t Danske Spil will also market a gift see the same this year, especially with tag at part of its Christmas scratch two tickets in the market. portfolio. The price is 10 DKr. The top “We are hoping for a 20 % increase prize is 1,000 DKr. in sales—both based on the develop- Veikkaus Oy ment we’ve seen the last years, and the introduction of the second calendar,” The Advent Calendar ticket (Joulu- she added. kalenteri) uses an oversized format. It In addition to the two scratch cal- typically will feature jolly old Father endars, Norsk Tipping will market a Christmas. Last year’s ticket featured NOK 25 Christmas red ticket. Its lowest Santa Claus Village. price point FLAX ticket, which sells for “We have a cooperation with the NOK 10, will also feature a Christmas Santa Claus Association and we are
La Fleur’s Magazine / November/December 2011 / 20 able to use their artwork,” said Holsti. Française des Jeux While Veikkaus Oy has experiment- While Française des Jeux does not ed in the past with selling two Advent market an Advent Calendar ticket, it calendar tickets, it will only sell one does sell a Christmas pouch product. ticket in 2011. It costs 10 €. “We launch every year for the The 10 euro price point makes it a month of December Pochettes cadeau,” definitely small gift. “We suppose that said Christine da Silva, international the economy won’t impact sales for relations, Française des Jeux. “It is a the Advent Calendar ticket, because Christmas pouch in which you can put it is quite a cheap product anyway,” 20 € worth of instant tickets. (You can said Holsti. choose what you want—two tickets There are no big growth expecta- of 10 €, four tickets of 5 € or 20 tickets tions. “We suppose that the sales will of 1 €).” be similar to last year’s sales, because it Christmas is one of the best periods has been quite stable for many years,” for instant sales. “The holidays are added Holsti. quite important for our scratch sales Veikkaus Oy markets a total of four as our turnover rises up to 30% during different price point tickets for Christ- Christmas holidays,” said da Silva. mas—Euro-ticket 1 €, Ässä-ticket 4 €, The French lottery prefers a tra- Casino 7 €, Advent Calendar 10 € and ditional approach to marketing its Gift Pack 10 €. holiday products. “We never create any tickets using Internet Advent Tickets nostalgia or humor for the end of the Both Danske Spil and Veikkaus can sell year celebrations,” said da Silva. “For instant tickets via the Internet, so they this special occasion, our tickets rather each market an Internet version of the carry the positive sensations linked to Advent Calendar ticket. this period, such as fun, magical times The demographic profile for the and celebrations. Tickets merely refer traditional versus online Advent Cal- to greetings of wealth and prosperity endar ticket buyer is quite different. rather than to Christmas and gifts.” “The profile for the traditional Since many new or lapsed players Advent ticket player is very broad,” may receive a ticket, ease of play is said Schaper. “Many non-players also important. buy the traditional Advent ticket. But “Other key factors of success that if you look at the demographics, the we use for these tickets are an easy typical player is a woman, aged 45-59. and intuitive game play format as well They buy it for themselves or as pres- as many scratch zones, in order to en- ent for family and friends. The Internet courage the accumulation of gambling Advent ticket player is typically male, gains as well as suspense,” she said. between 30 and 50 years old.” Française des Jeux has also mar- In Denmark, the Internet version of keted a New Year’s-theme scratch Julekalender “represents about 2% of ticket since 2009. the total Advent ticket sales, so it is not “For the third year, we will launch that popular,” said Schaper “To com- on December 29th a New Year’s scratch pare, typically about 15% of our total ticket called 2012 Année de Richesse,” instant sales comes from our Internet said da Silva. “We launched the 2010 tickets, so then 2% isn’t much.” edition which was named ‘2011 Année In Veikkaus Oy, lottery officials re- de Rêve’ on December 16, 2010. We do port the Internet version of the Advent not have specific Christmas tickets.” calendar ticket is quite popular. On its terminal draw games, Fran- “The Santa Claus Association’s art- çaise des Jeux will seed (artificially work is also used for our Internet Ad- enhance) mega jackpots for Christmas vent ticket,” said Holsti. This has not and New Year’s Day for its French proved to be a problem, even though Loto game. Internet players are younger.”
21 / La Fleur’s Magazine / November/December 2011 La Fleur’s Magazine / November/December 2011 / 22 Vendor Guide to Online Terminals n the annual roundup of vendors’ writers and three USB ports (two host, eliminating labor, lines, and loss. online terminal offerings, La Fleur’s one device) provide secure access and Gemini’s patented design provides lt e r m i n a l p o Magazine highlights the products means for transporting data a curved aesthetic, full-length side I trim kits, quad-burster technology manufactured by online vendors. Writ- • External power adaptor to operate ten by suppliers, the descriptions high- over a wide range of AC voltage inputs and prominently displayed, clover light the key attributes of the terminals. and providing the 24VDC 2.2A output leaf-shaped online game buttons. The required by the terminal Gemini purchase path is intuitive, fun, Editec • Optional 14-channel OMR reader and simple-to-use through the use of Editec’s best selling TPM3000 is widely to support all standard lottery play bright LED lights that attract players regarded as the most adaptive and slips that are up to 18” long to the instant and online game buttons. robust sales terminal available on the • Optional rechargeable battery Players simply choose the game they market today. pack supports 18 hours of autonomous wish to play and press a button, mak- operation. ing the purchase transaction simple and quick. As a smart terminal with GTECH Corporation the same architecture platform as Gemini LVM® is GTECH’s bold new GTECH’s Altura® GT1200 terminal, instant and online Lottery Vending Gemini’s Internet Protocol connection Machine (LVM) that supports both enables robust reporting for proactive instant game and online Quick Pick sales management and measurement. ticket purchases with the touch of By year’s end over 7,000 Gemini a button. Space-saving, secure and terminals will have been deployed, There are currently over 35,000 player-friendly, Gemini takes lottery demonstrating Gemini’s field-tested units operating in 16 African and South self-service convenience to a whole dependability. American countries. new level by maximizing player aware- The multi-mode (online, semi- ness of your lottery brand. INTRALOT S.A.. online and offline) system is physically An optional, built-in ES Multimedia Genion, the newest member of the and technically capable of operating in (ESMM) screen provides jackpot infor- INTRALOT family of lottery termi- the most challenging environments. mation, winner awareness and custom- nals, provides a powerful and yet As well as supporting data entry for ized messaging down to the unit level. very compact and space saving solu- all types of lottery, sports-betting and In short, Gemini provides a full-service tion for small agencies or retail shops. retail applications, it is also capable of lottery sales product to retailers while Genion is a multi-function solution integrating paper-based, manual game that can serve as game validation and formats. payment terminal, online and scratch The TPM3000 has 256 MB of RAM, ticket checker, player transaction and operating on a Windows-based plat- advertisement display, player access form. point and in-lane terminal. Specification summary: The Genion terminal was devel- • Multi mode operating capabili- oped in INTRALOT’s labs and is built ties, optional wireless GPRS/ CDMA/ around a new generation processor Bluetooth, WiFi, PSTN and IP ports with embedded hardware accelerated • A 5.7-inch TFT LCD color display graphics, which ensures high process- with 320 x 240 dot resolution, capable ing power and full display capabilities of full graphical operation when used as an agent or a player- • Dust resistant and user-friendly operated terminal. 37-button keyboard Its small friendly-sized full color • Attached CCD barcode reader to TFT touchscreen interface supports validate winning tickets that have a user’s interaction and although Genion barcode of up to 10 cm long is compact in size, it can carry a selec- • Easy loading thermal printer with tion of card readers and a 2D barcode printing speed of 100mm/sec over reader. Thanks to its online wired and 80mm wide paper wireless connectivity options, Genion • Two ISO 7816 smart card readers/ allows seamless integration within the
23 / La Fleur’s Magazine / November/December 2011 La Fleur’s Magazine / November/December 2011 / 24 field, which allows lotteries to select the ideal machine for each POS and thus slash their investment costs.
KeWin micro—the tiny lottery ter-
lt e r m i n a l p o minal with giant performance: The KeWin micro is, without a doubt, the smallest terminal on the market capa- ble of offering a full range of functions, from betting slip scanning and network rience in the field of gaming terminals communication, to printing receipts to optimize the design, reliability and and user interaction via various dis- durability of this new terminal. agency environment, while by incor- plays. The tiny KeWin micro consists With its scalability and modular porating all the necessary standard of a single housing containing the design, ELITE meets all the rigorous type ports it can connect to a variety of user interface, system control, printer, requirements of lottery organizations. peripherals such as printers, scanners communication solution, barcode The ELITE enhances Morpho’s com- and customer displays. and betting slip scanner, integrated prehensive range of gaming terminals In terms of installation, Genion is into one logical unit, measuring just as an ideal alternative to the S8 (Mor- extremely flexible. Its small dimen- 158x266x209mm (WxDxH). pho’s online terminal with mechanical sions allow the most efficient use of the scanner). Both terminals share several available space and provide the best KeWin multimedia—the most reli- modules (main unit, printer, displays) ergonomic operation to the user. Instal- able high-speed lottery terminal improving lottery organization’s ver- lation options include either desktop around: KeWin multimedia is a high- satility and flexibility. base or wall mount bracket. speed lottery terminal for medium- to The ELITE also offers an innovative Genion, a customized solution that high-volume points of sale. It offers a customer interface module that offers INTRALOT has added to its wide and phenomenal performance and maxi- players a new and exciting interactive most diverse product portfolio, is the mum recognition rates combined with experience that will strengthen the next generation terminal that has come incomparable speed and precision. relationship between lotteries and its to meet retailers’ needs for smaller and customers. more compact devices. Morpho
ELITE is a cutting-edge gaming termi- Scientific Games KEBA AG nal offering high efficiency for retailers, The award-winning Flair™ terminal KEBA’s KeWin lottery terminal fam- flexibility for marketing departments was developed to solve one of the ily is the POS solution for all types of and reduction of the total cost of own- key issues facing retailers around games, instant ticket validation and ership for lotteries. the world: the challenge of limited self-service win checks. It represents The ELITE core is based on a new countertop space in the lottery retail an unbeatable combination of top “On-the-Fly” imaging technology, al- environment. Creating the smallest reliability, high modularity and flex- lowing ease of use and a wide range footprint all-in-one terminal in class ibility, versatile connectivity and high of possibilities in terms of play-slip performance. design. The modular application software The “On-the-Fly” imaging device provides the KeWin lottery terminals is based on the most advanced image with an identical range of configurable capture and recognition technologies. functions. This permits mixing in the Being a full service online terminal, ELITE can read any existing bet slip (even crumpled), standard 1D/2D bar- codes on receipts and instant tickets, or any type of document regardless of the format. Additionally, the ELITE optical scanner illuminates the usual play- slip design constraints (color, shape, thickness), enabling a wide range of marketing opportunities. Morpho has used its extensive expe-
25 / La Fleur’s Magazine / November/December 2011 Lottery terminals with a sense of family.
Tailor-made solutions for maximum cost effi ciency? Only in the best families!
The KeWin multimedia, KeWin micro and KeWin check maintain the family tradition of fi tting exactly into the individual terminal mix in line with the lottery ticket volume of the sales outlet. As a result of outstanding fl exibility, effi ciency and availability, the KEBA terminal family ensures that tailor-made solutions are also the most cost-effi cient.
KEBA AG, Gewerbepark Urfahr, A-4041 Linz, Phone: +43 732 7090-0 La Fleur’s Magazine / November/December 2011 / 26 Fax: +43 732 730910, E-Mail: [email protected], www.keba.com demonstrates Scientific Games’ contin- ued commitment to ongoing research and development for systems technol- ogy and retail products to provide solutions for lottery customers. The Flair is the latest addition to Scientific Games’ family of online lot- tery gaming terminals, which includes PlayCentral® and WAVE™. Developed in response to increas- ing demand for smaller terminals, the new Flair offers all of the performance, speed and functionality of a full-sized terminal in a compact, fully integrated package that includes a full-size high- speed printer, high-speed document Lottery terminals scanner, 2D barcode reader and high- resolution touch screen display. with a sense of family. The Flair supports a wide array of peripherals, such as advertising displays, jackpot signage, customer transaction displays, wired or wire- less ticket checkers, cash drawers and card readers, as well as multiple open Tailor-made solutions ports to accommodate future lottery requirements. for maximum cost effi ciency? Due to its compact size, the Flair Only in the best families! also provides the unique oppportu- nity for mobile lottery sales at fairs, The KeWin multimedia, KeWin micro and KeWin check concerts, festivals and sporting events. maintain the family tradition of fi tting exactly into the individual Guide To Online Terminal Vendors terminal mix in line with the lottery ticket volume of the sales outlet. As a result of outstanding fl exibility, effi ciency and o Editec UK availability, the KEBA terminal family ensures that tailor-made Website: www.editec-lotteries.com solutions are also the most cost-effi cient. o GTECH Corporation Website: www.gtech.com o INTRALOT S.A. Website: www.intralot.com o KEBA AG Website: www.keba.com o Morpho Website: www.morpho.com o Scientific Games Website: www.scientificgames.com
KEBA AG, Gewerbepark Urfahr, A-4041 Linz, Phone: +43 732 7090-0 Fax: +4327 732 /730910, La Fl E-Mail:eur’s [email protected], Magazine / www.keba.comNovember/December 2011 Corporate Profile: Bally Technologies he global video lottery terminal spirit, and energy.” some casino op- (VLT) market is undergoing Haddrill is the kind of leader who erators will pull l c o r p a t e f i l Ttechtonic changes that promise draws people to him. “I like people a machine if it to alter the landscape of this emerging and I don’t have to be the center of doesn’t meet rev- and dynamic end of the lottery indus- attention,” he explained. “I can hire enue goals in the try. Technology and necessity form people and let them do good things first month of op- the confluence of the seismic changes. and get out of their way. One of the eration. In two wide-ranging interviews, reasons I was excited to come back into VLT jurisdic- La Fleur’s Magazine editors sat down the gaming business was because I felt tions tend to be with Richard Haddrill, CEO, Bally like game content and systems were more thorough in selecting games for Technologies, to explore what’s ahead going to converge, and Bally was in markets and more patient with games for VLT jurisdictions. the right spot.” in the field. “That’s a positive aspect for Haddrill reasons the interactive He sees VLTs as an excellent source VLTs,” Haddrill said. “You have to al- market is set to erupt in a wave of new of revenue for states while meeting low patrons time to discover and learn and next- generation offerings. lotteries’ social-responsibility require- the unique features of the new games.” “The budget problems around the ments. However, twin specters of par- Haddrill said he is very excited to globe, but particularly here in America, tisan politics and industry competition see initiatives by several of the Cana- are making video lottery attractive for often conspire, resulting in slow adap- dian provinces to replace or upgrade revenue enhancement,” Haddrill said. tion for new jurisdictions, he added. their current VLTs with new games. “VLTs are a great way for the states to System convergence with game In 2009, Bally created a team for the compete, not only with other gaming content has the potential to create a VLT market. One of their areas of focus devices but in the broader world of greater community experience while is the iVIEW player communications other entertainment options and social allowing more personalized player network. “This is an area where we’re media.” interaction. seeing a lot of interest in the lottery Few people know the geology of the Advanced systems can incentivize industry,” Haddrill said. “As an indus- lottery and VLT industries better than players with personalized bonuses and try, VLT jurisdictions are a little behind Haddrill. He is best known as a turn- premiums. “We are seeing state lotter- the leading casinos, but the U.S. Virgin around artist, digging deep within ies become savvier about rewarding Islands has created a jurisdiction-wide organizations to emphasize their stra- players at the point of play,” Haddrill player network of small venues. That tegic points of differentiation for the said. has become very attractive to players.” benefit of customers and shareholders. In venues with a limited network Bally recently acquired MacroView Haddrill started his gaming career of VLTs, downloadable games offer a Labs, the leader in mobile applications with Powerhouse Technologies (the cost-efficient way to offer more variety for the gaming industry. Game apps parent company of Automated Wager- to the player. Bally developed curved allow free play so players can familiar- ing and Video Lottery Consultants), LCD technology, so even stepper-style ize themselves with games before they later acquired by Anchor Gaming. games can be downloaded. Lotteries ever enter the venue. Push messaging He managed the sale of Powerhouse can use the database functions to track allows the venue to promote directly to before exiting the gaming sector to run responsible-gaming initiatives. “Right the player. The company’s next phase Manhattan Associates, Inc. In 2005, he now, we are seeing more energy in the will be Internet free games. returned to refocus Bally Technologies area of VLTs than in the last eight or 10 Bally plans to place its “for-wager” as its CEO. years,” Haddrill said. games on both the iVIEW network and “When I came to Bally, we had a Meeting stakeholders’ needs is on the Internet in jurisdictions where lot of disparate technologies,” Had- critical to Bally’s success. “Whether it is legal. The company will license drill said. “For example, we were it’s state and provincial governments, its customers to run their own B-to-C developing games on seven different tavern owners, or casinos, our market online wagering. platforms, which made it relatively research methodology is similar,” Had- “The pace of change is faster than inefficient, so we consolidated into a drill said. “Some government agencies ever,” he said. “I’m particularly excited single platform. Then we reorganized are more interested in responsible that in recent months we’re seeing our the game teams into ‘studios,’ each gaming, while others are interested in customers shake off the initial eco- with mathematicians, graphic artists, how to manage across smaller venues.” nomic downturn so that they can stay programmers, and game designers. Giving a gaming device time to current with technology and compete This created internal competition, team reach its full potential is critical, but in the entertainment sector.”
La Fleur’s Magazine / November/December 2011 / 28 WILL Profile: Alice Garland lice Garland, executive di- advised away from taking math classes rector of the North Carolina in college.
lw o m e n i L t r y l a d s h p AEducation Lottery (NCEL), “Math is my strong suit. I love used to jump on her bike and roam for numbers,” said Garland. “When I hours when she was a little girl. As the got to college, my math skills were youngest of four children, Garland was discounted, I believe because I was free to explore her world without any a woman. I believe that had I been a restrictions. male, I would have been steered to an “It was a time that truly engendered engineering degree. I think one of the self-sufficiency,” recalled Garland. “I reasons I like lottery work so much is can disarm the person receiving the am sure my parents were watching my because it is all about the numbers.” tough message. But it can also mean decisions, but they let me make deci- Her career has followed a winding the message isn’t always received as sions—and suffer the consequences.” path. She started in state government at wanted because we are smiling. It is An avid reader of Nancy Drew the Department of Transportation and an interesting dichotomy.” mystery novels, Garland sought out then switched to another state agency. Do women differ from men in adventures. “The series opened me up With a change in state administration, their management style? “Without a to the possibility of girls/women being she moved over to the state employees doubt, especially my generation,” said smart and being heroes and having association. She also did brief stints as Garland. “We likely had majority re- independence,” she recalled. the state director for a U.S. Senator and sponsibility for raising children which Garland attended public school at the North Carolina Department of means juggling competing schedules, and public colleges. Her teachers had Commerce. “It was the Commerce job refereeing fights, getting chores done, high expectations for her, so they let that put me in the right place for the all while setting a good example. I be- her know when they thought she was lottery job,” said Garland. lieve as a result of these experiences, underperforming. Becoming editor of Garland didn’t take time off to raise women are more collaborative, more the school yearbook helped shape her her three children. “I was a working open to being challenged, more likely more than anything else in school. mother and did my best to balance to involve others in making decisions. What rules did her mother impart home and work,” she said. “I made it to I have a small granite sign on my desk about what women could achieve? almost every school event, soccer game that reads, ‘Well behaved women “My mom was one semester short and dance recital, so I think I did OK.” rarely make history.’ I truly believe of finishing college and worked as a Of course, there was the occasional this. We must take risks. We must be homemaker,” said Garland. “But she mishap.” The only time I really lost willing to try new things.” was always active outside the home. it was when I was traveling and my Garland has never been afraid to She volunteered for Little Theatre, Red then middle school daughter was on stumble as she climbed the ladder of Cross, the History Museum, Meals on the phone walking me through her leadership. “It is OK to let people make Wheels and like organizations. She attempts to ‘fix’ the home computer. mistakes because they can learn from taught me the importance of giving Before I could say ‘NO!,’ she erased the their mistakes,” she stressed. “Ask the of your self to others and to the com- hard drive and everything on the com- question, ‘What’s the worst that can munity and to present yourself with puter. We still talk about that event,” happen?’ grace and humility. I never heard her said Garland, laughing. For her leisure time, Garland enjoys say, ‘Girls can’t do that.’ She supported reading, gardening and movies. Her all our projects and activities.” A Different Breed: The Southern Woman favorite woman writer is Jane Austen. Garland earned an Urban Studies Garland believes women are generally What advice would she give to degree at William & Mary and a Mas- viewed as more nurturing then men, a 20-something woman starting her ters in City Planning from University which is both good and bad. “Some business career? “Learn everything of North Carolina at Chapel Hill. folks respond to nurturing, others see it you can about your subject matter so She steered clear of science classes as a sign of weakness,” conceded Gar- you become the expert,” said Garland. in college, an area where she felt weak. land. “I am a Southern woman which “Build relationships both within and She said she dropped out of advanced is a different breed. We have ingrained without your organization. Volunteer biology in high school because she in us to always smile and ‘play nice.’ to take on new assignments. Take risks didn’t have the stomach to dissect So we have learned to smile while in personal and professional life. If you a fetal pig. While she did extremely delivering a very tough message. This don’t like what you are doing, find well in math in high school, she was can work to our advantage because it something else.”
29 / La Fleur’s Magazine / November/December 2011 West Virginia Lottery Will Pulse Chia-Pet Scratch Ticket The West Virginia Lottery will pulse six different tickets featuring Chia Pet, under its license from Alchemy3. The l i n d u s t r y e w first ticket features a Holiday Chia Pet adorned with gold bows. “With the approval of Joseph En- terprises, Inc., Alchemy3 was able to create a clean look and play style that we thought would work well in the field,” said Nikki Orcutt, deputy direc- tor, marketing, West Virginia Lottery. “We selected the Chia Pets that would be the most recognized with certain Launching during the holidays expect to see on a lottery ticket,” said holidays or the seasons in which they optimizes the brand synergies be- Orcutt. “Chia seemed to fit that cat- would launch.” tween Chia Pet and the scratch ticket. egory.” The Chia Pet ticket features six “Chia Pet is only advertised during “It is very cost-efficient if a lottery scenes in conjunction with the follow- the fourth quarter,” said Jeff Schweig, licenses a brand and produces all the ing holidays, seasons or special events: chief marketing officer, Alchemy3. “It different scenes under one print run,” Christmas, Valentine’s Day, St. Pat- is synonymous with the holidays.” added Alchemy3’s Schweig. rick’s Day, Spring, West Virginia State The West Virginia Lottery has been In terms of sales, Orcutt noted that Fair and Halloween. pulsing scenes within the same scratch “it is a hard game to index with the “The game is designed to be a ‘lim- game to keep it fresh since 2006. It also limited quantities. It is a ‘created’ de- ited time only’ ticket for each pulse,” wanted a game that would sell well at mand and will show sales for a couple said Orcutt. “We received roughly the $1 price point that could be pulsed of weeks, then prior to the new scene, 500,000 of each scene and each pulse seasonally. sales will slow down significantly in is expected to be fully distributed to “We wanted a brand that was fun, anticipation of the next pulse.” retailers within two weeks or less.” but different from what you would Diamond Game Develops Lottery ITVMs for Bar & Tavern Markets With North American lotteries seeking base, thus the revenue from our ITVMs Diamond Game new ways to broaden their player base in that market would be considered was founded on and retailer base, they are turning to ‘new’ revenue for the state,” said Bill the spirit of inno- Diamond Game, a leading manufac- Breslo, vice president, sales and mar- vation. “We have turer of ITVMs (instant ticket vending keting, Diamond Game. developed a line machines). Diamond Game’s ITVMs Breslo sees greater acceptance of of product inno- dispense instant tickets just like other more modern ITVMs as a natural pro- vations and fea- ITVMs that most lotteries have de- gression. Traditional ITVMs have pro- tures intended to ployed, but in addition displaying the gressed to now contain video monitors, suit any lottery’s instant game results on a video moni- scanners to read and credit winnings, needs,” said Breslo. tor and streamline buying and cashing and the ability to purchase both instant “Features such as of winning tickets. and online tickets through the video multibet (which al- Positioned by the company as the interface. Diamond Game’s ITVM lows a customer to ideal ITVM for bars and taverns, lot- displays the game result on a video determine the price teries now have access to a product monitor. “With our ITVM, the sounds point for any given that allows them to enter segments and animated video display add to the ticket), a variety that have traditionally been difficult entertainment of the game, but have no of cabinet styles to penetrate. impact on the outcome,” said Breslo. and display styles In fiscal 2010, bars and taverns “The video display is merely present (video scratch, popping animation represented only 7.2% of the total U.S. to enhance the playing experience and and spinning symbols), different ticket lottery agent network and generated broaden the lottery’s customer base styles (scratch or pulltab), and other 6% of total lottery sales, according to by appealing to a new set of players.” customizable features can be mix and La Fleur’s 2011 World Lottery Almanac. Most lotteries can implement Diamond matched to create just the product a “Most lotteries have not fully tapped Game’s ITVMs under existing laws and lottery needs to expand its retailer and the bar market to expand its retailer regulations. customer base.”
La Fleur’s Magazine / November/December 2011 / 30 Plants vs. Zombies: “Get Ready to Soil Your Plants” Not to be ghoulish, but two U.S. lotter- seasonal enter- Dean. “Zombies are becoming very ies think they were dead-on in selecting tainment niche. popular (and are projected to grow in PopCap Games’ Plants vs. Zombies for But Binns add- popularity), so the Plants vs. Zombies
li n d u s t r y N e w scratch tickets. ed that it will theme is very timely, especially for Licensed from GTECH Printing, “have staying Halloween.” Plants vs. Zombies was the biggest power well af- By aligning with the casual game iPhone game launch ever. “Since its ter October 31.” category, lotteries can leverage their debut in 2008, the Plants vs. Zombies In addition social media presence to attract the game has been a big hit,” said Adriana to the Hallow- emerging player market and increase Binns, marketing director, New Mexico een tie-in, the player participation. Lottery. “We knew the brand could New Mexico “Our focus is to become more help reach a younger audience of new Lottery turned relevant to designated consumer seg- or infrequent players.” its claim center ments,” said Dean. “Trendy social me- The Plants vs. Zombies Facebook waiting room dia brands can help create the bridge page has 5.3 million fans and a great into a zombie lounge with freestanding between social and interactive experi- many are between 18-to-24 years old. characters from Plants vs. Zombies. ences and lottery games.” “Research showed that this concept “After Halloween, we gave the In its first year, Plants vs. Zombies appealed to two of our desired Virginia standup characters away to players,” was voted PC Game of the Year, Strat- consumer groups: 18-34, slightly male said Binns. “We gave away t-shirts egy Game of the Year and Casual Game skew and 30-50 female (primarily busy with the Plants vs. Zombies tagline ‘Get of the Year. moms),” said Gwen Dean, marketing Ready to Soil Your Plants.’” “It’s all about relevance,” said director, Virginia Lottery. “We decided The Virginia Lottery’s sales force Binns. “Associating with brands that to pilot the concept, printing a very and social media team gave away are top of mind right now helps make small run for the Halloween season,” downloadable coupons at “Zombie lottery games top of mind right now. said Dean. Walks” in two major metro areas. It introduces people to another form Since the New Mexico Lottery al- “The game was promoted via social of exciting entertainment that they ways offers a Halloween-themed game media through the month of October might not have thought to explore in the fall, Plants vs. Zombies filled the to bring in more fans/followers,” said otherwise.” Edemol Extends DOND Licensing Contract with SPIELO International SPIELO International USA, LLC has DOND TheExperience™, DOND Join’N Play is rich with features, chal- announced that it has signed a contract Mega Deal™, DOND What’s Your lenges, and surprises that every player with Endemol to continue as the exclu- Deal™?, DOND Passion™ 3-Reel, will find thrilling. The giant wall of sive third-party licensor of the success- DOND Passion™ 5-Reel, DOND Mul- five 46-inch LCDs creates a big impact, ful DEAL OR NO DEAL™ (DOND) tigame Bonus™, and DOND Banker’s while new Vu Slant™ cabinets provide brand in the land-based gaming sector. Wheel™—have been featured in more optimal viewing angles and comfort The contract gives SPIELO Inter- than 400 North American properties. for players. national the rights to use additional SPIELO International’s latest “The DEAL OR NO DEAL brand Endemol-owned brands in its gaming DOND licensed product, DEAL OR represents SPIELO International’s content and products. It also includes NO DEAL™ Join’N Play™, is the most most successful licensed brand to date. provisions for SPIELO International to anticipated product launch in the com- When players see the DOND brand, expand its DOND licensed products pany’s history, with approximately 100 they immediately associate it with an into new markets beyond the commer- casinos signing on as the first to carry opportunity for excitement and enter- cial casino gaming segment and across this North American title, with many tainment,” said Walter Bugno, presi- other gaming channels. more expected. dent and CEO of SPIELO International. The agreement marks the third Host Howie Mandel guides players “SPIELO International has gener- contract between Endemol and SPIELO through this entertaining, fully-themed ated impressive synergies between International dating back to 2003. In DEAL OR NO DEAL Join’N Play our brands over the last eight years,” those eight years, SPIELO International linked community game. Offering a said Oliver Gers, CEO of Endemol has placed eight different versions of unique time-based Community Bonus Worldwide Brands. “Their designers DEAL OR NO DEAL games in casinos that’s guaranteed for qualified players, have taken the qualities that make in five continents and 49 countries, an innovative multiplier sixth reel, the DEAL OR NO DEAL an international including the U.S. and Canada. The max-bet-activated Howie Jackpot, and TV hit and skillfully conveyed them products—DOND Rapid Link™, three base game Mystery Bonuses, into entertaining games.”
31 / La Fleur’s Magazine / November/December 2011 New Holiday Game Hits Gold This Season When the game design team at Scien- at Scientif- games that have more longevity with tific Games added the 4” x 4” Holiday ic Games. imagery and themes that are seasonal Gold game to the company’s 2011 “Holiday but not holiday specific. The design l i n d u s t r y e w Holiday Catalog, the company’s cre- Gold will concepts provided in the catalogs are ative directors anticipated it would make a designed based on the company’s re- do well—--but it has turned out to be great gift search findings. The game design team one of 2011’s holiday season favorites. because it works closely with Scientific Games’ A total of 11 lotteries—Florida, looks rich marketing and research teams to en- Illinois, Kentucky, Louisiana, Min- and expen- sure that game design best practices nesota, Pennsylvania, South Dakota, sive. We’ve reflect what has performed well for Tennessee and Texas in the U.S., as noticed lotteries gravitating to designs lotteries in the past and what resonates well as Golden Casket and New South in our catalogs that appear upscale as with players. Wales in Australia—selected the new part of their mix, and they’ve been very “Many lotteries wait to do their Holiday Gold. popular and successful.” game planning until they see the The lotteries that are retailing Holi- Scientific Games began its Holiday Holiday Catalog. It has really become day Gold, which is a popular key num- Catalog in 2001 with about 50 designs an anticipated event every year,” said ber match game, have launched it this and the catalog has now grown to Gillen. “Lotteries have a hard time de- season primarily at the $2 price point, feature more than 150 designs each ciding which games to select because although three lotteries launched the year. The catalog includes a wide ar- there are so many that have strong game at $1 and another featured it as ray of designs to fit a lottery’s holiday appeal. Also, once lottery product the inspiration for a pouch game at a game plan. Gift tags are included and managers see games we print for other much higher price point. play action is kept simple enough for lotteries—especially those that index What’s made Holiday Gold so light or first time-players who may well—they tend to select those games appealing? “With its vibrant holiday receive the games as holiday gifts, yet for their lottery the following holiday colors, the game stands out well in offers enough value for current lottery season.” dispensers and player self-service ma- players who are buying the game for Scientific Games typically releases chines,” said Rhonda Gillen, vice presi- themselves. an aditional two to three instant ticket dent of creative and customer service The Holiday Catalog also features design catalogs throughout the year. Dazzling 7’s Doubler: The Game That Keeps on Giving Its holly berry leaves, rich burgundy that KLC has ticularly during the holiday season and dazzling gold design are classic launched a total when competition for the consumer holiday. But Dazzling 7’s Doubler isn’t of seven Scratch spend is at an all-time high. Scratch the holiday season’s typical instant My Back games My Back games like Dazzling 7’s Dou- game. The game offers holiday play- since 2007, all bler feature a patented instant game ers scratch play opportunities on both at the $5 price enhancement that offers play on both the front and the back of the festive 6” point. An eighth the front and the back of the ticket, all x 4” ticket. game is coming validated with one barcode that can be Launched early in the 2009 holiday in December positioned on either side of the ticket. season by the Kentucky Lottery Corp. 2011. With the same thickness and weight (KLC), Dazzling 7’s Doubler’s sales “The lottery as other instant lottery games, these totaled $12 million. This was approxi- feels—and our games can be dispensed through all mately 15% higher than other $5 games players agree—that Scratch My Back traditional instant ticket devices. launched by the lottery that year. games add value and added play “Overall, Scratch My Back games With traditional holiday symbols experience to the game,” said Steve have performed about 19% better than like Christmas trees, holiday lights, Casebeer, senior vice president, sales other games launched by a lottery at bells and sleighs, Dazzling 7’s Doubler and marketing, KLC. “Based on the the same price point within the same also features dual-color imaging that strong performance of this type of calendar year,” says Jeff Martineck, offers more exciting game play—an- game, we have made it a base game vice president of instant product de- other added value for the consumer. that our players and retailers want on velopment for Scientific Games. “The This holiday game is part of Sci- the street at all times.” games are the perfect way to enhance entific Games’ patented Scratch My Lotteries are constantly faced with higher price point instant games in a Back™ family of tickets that routinely the challenge of keeping the game lottery’s portfolio by adding value for sells well throughout the year—so well product mix new and inviting, par- the consumer.”
La Fleur’s Magazine / November/December 2011 / 32 MDI Acquires “Marvel’s The Avengers” Film Rights for Instant Games MDI has reached an agreement with Saferin, president, Properties Group Marvel Entertainment, LLC, to offer and chief creative officer for Scientific instant lottery games featuring char- Games. “This could be the movie of the
li n d u s t r y N e w acters and themes from the widely summer for 2012, and it’s already be- anticipated film “Marvel’s The Aveng- ing covered in the media, so we expect ers,” due for release on May 4, 2012. a lot of excitement surrounding this The film already is receiving con- property by the time it hits theaters in siderable press coverage and is be- May. This excitement, combined with ing called “the ultimate Super Hero the attention-grabbing artwork Marvel movie,” as it unites several of Marvel’s has provided for instant tickets and most celebrated characters: Thor, Iron point-of-sale pieces, presents lotteries Man, Hulk, Captain America, Hawk- with a terrific opportunity.” eye, Nick Fury and Black Widow. “Marvel’s The Avengers” features The Avengers characters have been a cast of Hollywood superstars with loved by generations of comic fans wide demographic appeal including since they were first presented as a Robert Downey Jr., Mark Ruffalo, team in 1963. Chris Hemsworth, Scarlett Johansson, This new film promises to deliver Jeremy Renner and Samuel L. Jackson. an exciting 3D experience for viewers, MDI has the worldwide rights to as it continues the epic adventures use character images on instant tick- started in the box office hits “Iron ets and promotional items. Avengers Man,” “The Incredible Hulk,” “Iron opened at the top of the box office merchandise also will be available to Man 2,” “Thor” and “Captain America: charts. lotteries for prizing and promotional The First Avenger.” “Movie properties have worked giveaways. Additional promotional These films were released in the- well for lotteries in the past, and this is tie-ins with the film are in develop- aters between 2008 and 2011, and all a very special opportunity,” said Steve ment as well. INTRALOT Signs Video Lottery Monitoring System Contract in Ohio After an initial record-setting two-year people in administration, operations, LOT further reinforces our proven operations contract with the Ohio Lot- marketing, manufacturing, assembly performance partnership with the tery and another two-year renewal of and service statewide and with its Ohio Lottery to maximize the benefit to that contract, INTRALOT has been facilities in Mason and Strongsville, education within the State,” said Tom awarded a contract option to supply INTRALOT will provide the state with Little, president and CEO, INTRALOT the Ohio Lottery with its cutting-edge the capabilities to meet its future needs. USA. “We look forward to continued Video Lottery Terminal (VLT) Elec- “We are very pleased with INTRA- support of the Ohio Lottery through tronic Monitoring System for a period LOT’s deployment and operation of the application of advanced technolo- up to approximately eight years to run state-of-the-art gaming systems and gies, innovative new games, and fur- concurrent with the online contract. equipment in Ohio over the past bien- ther strengthening of an already great Under the added option, INTRA- nium,” said Dennis Berg, interim direc- partnership.” LOT will continue to supply existing tor, Ohio Lottery. “We look forward to “Our Group is extremely satis- equipment and services to the Ohio our continued partnership and believe fied with the decision of the State of Lottery while adding additional func- the option represents excellent value Ohio to choose INTRALOT’s cutting tionality with the electronic monitoring for the State of Ohio and the lottery as edge VLT monitoring system,” added system. it moves Ohio forward.” Constantinos Antonopoulos, CEO, Up to 17,500 VLTs in seven Ohio INTRALOT USA expects that a INTRALOT Group. “The proven tech- racetracks will be connected and moni- January 2012 rapid startup combined nology and extensive know-how in the tored by INTRALOT’s central monitor- with innovative technology will also operation of large scale projects has ing system which will combine with provide the state of Ohio with much turned INTRALOT Gaming Division the current infrastructure INTRALOT needed revenue and much needed into a leading supplier worldwide. has been operating in the State of Ohio shovel ready jobs. We are very proud of our successful for the lottery. “The decision by the Ohio Lottery cooperation with the Ohio Lottery and INTRALOT’s systems and opera- Commission to award the VLT central are looking forward to supporting their tions in Ohio includes jobs for over 200 system monitoring option to INTRA- next phase of growth.”
33 / La Fleur’s Magazine / November/December 2011 Tech the Halls to the Internet registration and entry page on a mobile friendly website,” The Western Canada Lottery Corp. said Novakowski. (WCLC) is experimenting with a new In January, WCLC will hold a draw Internet scratch promotion, called Tech to award 52-inch Sony® 3D TV sets, l g l o b e i n k the Halls. It is modeled after the suc- C$1,000 Future Shop Gift Cards and cessful Tech the Halls program run by Hand Held Tablets. the Iowa Lottery. “We did not go the way of a [cor- “This is the first Internet contest porate] tie-in for this promotion,” said WCLC has done with a Scratch ‘N Win Novakowski. “It is a straight purchase (SNW) focus in a number of years,” of merchandise if the consumer opts said Ginger Novakowski, manager, ex- for the item over the cash equivalent. tended play products, WCLC. “It looks The Gift Cards are straight purchase like it is off to a great start and we look without a cash equivalent option.” forward to seeing where it nets out. It Tech The Halls started on October 1, is definitely a way to add new interest 2011 with the release of the first game to our product at the most important ($20 Player’s Choice) and will end on sales season for the product.” January 10, 2012. Bourelle. “We will also be using ‘hype It is offered exclusively on seven cards,’ which is POS that will be placed Christmas-themed scratch games— $1 Mommy Bloggers on vehicles in Shopping Centre park- Happy Holidays, $2 Countdown to ing lots.” Christmas, $3 Silver Bells, $4 Lucky The Atlantic Lottery Corp. (ALC) is Twelves, $4 Lucky Lines Christmas rounding up the “Top 10 Mommy Edition, $5 Stocking Stuffer and $20 Bloggers in Atlantic Canada” to blog Rich & Royal Player’s Choice. about its C$20 Holiday Mega Pack. Following the success of premium ho- “This is a Christmas promotion so “This campaign will take advantage lographic tickets launched in 2009 and it is only offered on Christmas-themed of the conversation around the gift- 2010, the B.C. Lottery Corp. is featuring scratch off tickets,” said Novakowski. giving season by spreading the word its C$20 Rich & Royal ticket as part of “This affords the ability to have the about the Holiday Mega Pack,” said the 2011 holiday games. contest in the market for a specific time. Brigitte Porelle Bourque, instant brand “Silver & Gold indexed at 1.14 The contest numbers are programmed manager, ALC. “The bloggers will cre- compared to our only other recent with the games.” ate an entry on their blogs about the C$20 ticket–All That Glitters–which The holiday SNW tickets feature a Holiday Mega Pack.” was launched in 2009,” said Heather detachable portion which contains a The theme of ALC’s Holiday Mega Tryon, brand manager, instant games, contest number play area under latex. Pack campaign is “It’s A Gift So Good, BCLC. “As the $20 ticket becomes more Players go online to enter their alpha It’s Hard to Give Away.” accepted, and even demanded, by our numeric code. ”The creative concept demonstrates core players, we are expecting Rich & “There are QR codes on the POS the emotional journey of a gift giver,” Royal to index above Silver & Gold.” which will take the consumer straight said Bourelle. “We took a humorous look at the thought process one might go through if they were to give a gift they really want for themselves.” All digital mediums will link to ALC’s Facebook page where the lottery Might be the biggest will offer a C$2 coupon off the Holiday little gift under the tree. Mega Pack. “This builds on the creative concept because the player can choose to keep the coupon or send it to a friend,” said Bourelle. The primary callout for Holiday Mega Pack is “Guaranteed Winner in Every Pack” which is reinforced in all mediums. “The campaign includes TV, radio, online and mobile advertising,” said Know yourKnow limit yourKnow, play limit your within, play limit withinit, play. within it. it.
Ad # C11537_Green_MALL_43.75x59.625 25 OCt 2011 1010 100% ApprOved by FILE NAME TRIM DA COLOURS BIG AD/CD C11537_Green_MALL_43.75x59.625.indd 43.75 x 59.625 pk C M y K CLIENT BLEED AD PIC INFO BC Lotteries .25˝ cm WRITER PROD DOCKET LIVE PR FONTS BLC INT C11537 41.875 x 57.625 hw Helvetica Neue, Goudy Old Style DESCRIPTION VISABLE OPENING PAGE SEPS RUN OUTPUT S&W Holiday Promo 42.875 x 58.625 1 of 1 PROOFREAD CLIENT PUB NOTES
DDB CanaDa 1600 – 777 HornBy Street, VanCoUVer, BC, CanaDa V6Z 2t3 t 604 687 7911 F 604 640 4344 La Fleur’s Magazine / November/December 2011 / 34 BCLC switched from BMW ve- gift. The pouch gives it a special look. hicles to Audi and Mercedes vehicles There are lots of promotions at point with Rich & Royal. “We were able to of sales with this product.” capitalize on synergies with our Ca- The first edition of Celebration was sino group, which carries Audi and launched in 1990 as a national product.
lg l o b e i n k Mercedes vehicles in its inventory,” But now, it is sold only in Québec. said Tryon. “The other Canadian lotteries don’t The lottery will be supporting the have an equivalent product like Cel- entire holiday lineup through the ebration,” said Thivierge. “They tried BCLC.com website, as well as in mall it in the past but never had our success. posters. “Rich & Royal is a feature That is why we launch it alone.” ticket in this holiday campaign,” said Thivierge stressed that Celebration Tryon. is not a pouch of tickets. “It is a pouch- U.S. version hit New Zealand screens Tryon projects the ticket will sell ticket presented in nice aluminum in early September 2011,” said Kirsty through until March 2012. Over the packaging,” she said. “It is one ticket.” Larsen, marketing manager, instant life cycle of the ticket, weekly sales are Celebration 2012 features four and daily games, NZ Lotteries. “This is estimated at C$400,000. portions: a grand prize draw, a mer- Simon Cowell’s first season with The X “Based on the past successes we’ve chandise prize draw, daily draws and Factor and he represents a significant had with our C$20 tickets, we are now instant-win prizes. draw card for the franchise.” beginning to consider launching mul- “The particularity of this product is The X Factor ticket is complete- tiple C$20 tickets per year,” said Tryon. that we make a millionaire live on TV,” ly outperforming other top-ranked “It’s very exciting for our category, as said Thivierge. scratch tickets, such as Rob the Bank we have been working to move our and Code Cracker. players up the price point ladder.” ift ack “The game has been on sale for G P eight [full] weeks and is currently sell- Ontario Lottery & Gaming (OLG) will elebration ing 20% more tickets than we initially C 2012 market seven holiday-themed scratch forecast,” said John Alexander, brand Loto-Québec will return the perennial tickets in 2011, ranging from C$1 to manager, NZ Lotteries. “After starting favorite, Celebration 2012, as part of its C$10 in price. with six pools of 250,000 tickets, we holiday lineup. It costs C$20. “This will mark the second year of have had to re-order three subsequent “This game is a real success in Qué- offering our $C10 Gift Pack after re- pools to meet demand and carry us bec and has a lot of exposure,” said moving it from market in fiscal 2008,” through until the completion of the Elaine Thivierge, product, director- said Eric Harnden, brand manager, in- TV show.” lotteries, Loto-Québec. “The awareness stant games, OLG. “When we brought NZ Lotteries has actively pursued is very high. We can’t compare this it back last fiscal year, we increased the partnerships which engage a slightly game with any instant product. It’s a payout to 65% to match our blended younger (25-35) target for Instant product that is offered as a Christmas instant payout and removed the guar- Kiwi, including the MINI brand and MLQP11-006 • LOTO QUEBEC • AFFICHE préTIrAgE 13x17 • CéLéBrATIOn 2012 - pLv • InFO: mr/Cj&sL FORMAT FinAL: 13’’ x 19’’ • VeRsiOn: FrAnçAIsE • COULeUR: CmYK • LiVRAisOn: 25 jUILLET anteed win.” Rugby7’s (a huge sporting event). Now a customer will win a mini- “Entertainment brands tend to be mum of a C$10 prize with the Gift Pack. highly visible, extremely well known “This was changed based on customer and typically carry quite a bit of cred- feedback and resulted in less overall ibility with the younger market and complaints regarding this product thus provide a bit of a shortcut for the than in the past when we had a small lottery,” said Larsen. “However, the guaranteed win,” said Harnden. “We partnership needs to be fully lever- GGROS LOT achieved C$14.7 million in $10 Gift aged, with the ticket and on-air visual 5 MILLIONS $ Pack sales last fiscal year.” components having as much synergy 1 MILLION $ EN DIRECT À LA TÉLÉ as possible.” Kiwi X-Factor NZ Lotteries’ broadcast sponsor- ship rights (covered separately with 75X VoyaGe On September 21, NZ Lotteries launched The X Factor ticket, under the TV station that secured the rights to license from FremantleMedia Enter- the show) include opening and closing 40X honda cr-z hybride prises. graphics for its instant ticket, promo- 31X MercedeS-benz GLK 350 “The X Factor is a worldwide tele- tional consideration on the show and vision phenomenon and the first-ever tickets to the live final.
MLQP11-006 Affiche_Pretirage_13x19.indd 1 11-07-28 12:15
35 / La Fleur’s Magazine / November/December 2011 GLI-23 VLT Standard the process of preparing Kambi in be- coming a fully independent company, Gaming Laboratories International, an advisory team with extensive ex- LLC, the world’s leading gaming test perience from the gaming/lottery and lab, has released the initial version of related businesses has been established l v e n d o r w k s its “GLI-23 Video Lottery Terminals to provide strategic direction. The goal Technical Standard.” GLI-23 is the lat- for Kambi is to be an independent and est in GLI’s exclusive line of standards, preferred partner to larger private op- all of which serve as a valuable guide erators and to the state lotteries around to suppliers, regulators and operators. the world. “GLI-23 was created in response to “The creation of a separate Advi- an overwhelming industry request for Pictured: Steven Spielberg (left) and Didier sory Committee is one important step Reynders (right) a comprehensive technical standard in the process of making Kambi an gium is definitely the place where covering these unique devices. While independent company,” said Kristian Tintin had to be launched.” VLTs are similar in many respects to Nylen, CEO of the Kambi Group. “Op- During the Award of the insignia traditional casino games, VLTs are erationally the Kambi management of Commander of the Order of the required to support distinct technical team runs the Kambi business sepa- Crown in Belgium, film director Steven attributes. Those attributes are the pri- rately from Unibet’s B2C business. We Spielberg held up the Tintin scratch mary drivers for this important techni- continue to work with SEB Enskilda to ticket. He was joined in the ceremony cal standard,” said Patrick Moore, GLI evaluate strategic options for Kambi as by Belgium Deputy Prime Minister director of technical compliance, GLI. the business develops.” Didier Reynders. “We believe GLI-23 will be a tremen- To secure and supervise this pro- license2win is the first European dous resource for industry stakehold- cess, the Kambi Advisory Committee licensing agency for gaming opera- ers requiring a base guideline for the was formed in the third quarter of tors. Its clients are mainly European regulation of VLTs.” 2011. Furthermore, all Kambi London national lotteries. The firm provides The original draft version of the staff will move to their own offices in licenses, printed products (scratch GLI-23 standard was provided to Hammersmith during December. tickets, snapNwin™, stricket™) and thousands of industry stakeholders Members of Kambi´s Advisory dispensers for scratch cards. for feedback. These stakeholders were Committee include: Reidar Nordby Jr., inclusive of gaming and lottery regula- former president and CEO of Norsk tors, industry suppliers, industry op- Tipping and former president of the 3D Scratch Card erators and industry trade associations. World Lottery Association, Lars Stuge- NeoGames has launches Horoscope, GLI reviewed and processed the mo, president and CEO of HiQ Interna- the first 3D scratch card in a series of comments received from these in- tional AB, Anders Ström, founder and next generation games. dustry stakeholders, provided direct chairman of Unibet Group and Stefan It presents all 12 astrological signs consultation to these same parties and Lundborg, board member of Unibet through advanced 3D animations. applied comments and suggestions Group plc and former managing direc- Players choose their own sign and play accordingly. tor of Stockholms Travsällskap. up to four cards in one game with the Each standard in the GLI Standard aim to match three identical astrologi- Series is a culmination of industry best- Tintin License cal signs. Furthermore, the player can practices and is continually updated. read the horoscope for each sign on a License2win has signed a contract with In addition to assisting regulators, the daily updated basis. Loterie Nationale du Belgium for the standards are of tremendous value to Horoscope is available in multi- launch of a licensed property instant suppliers who use the standards as language and multi-currency, with a ticket game based on “The Adventures a guide in their R&D process; saving top award of 200,000 currency units. time and expense. All standards are of Tintin.” The film premiered in Europe on available for free download at www. ompliance esting gaminglabs.com. October 26, 2011. The Hollywood Re- C T porter described the film as “a visually Betware announced its gaming plat- Advisory Committee dazzling adaptation of the legendary— form has passed all the tests necessary at least outside the U.S.—comic book to receive a certification for the ap- Kambi continues to strengthen its posi- series by Belgian artist Herge.” plication process of general licenses in tion as the leading B2B supplier of fully “License2win is very pleased of its Spain. The tests, performed by BMM, hosted online sports betting solutions partnership with the National Lottery are part of the new gaming regulations to the gaming industry. of Belgium,” said Guillaume Baudry, introduced recently in Spain and are a As a continued measure to support managing director, license2win. “Bel- mandatory requirement for each gam-
La Fleur’s Magazine / November/December 2011 / 36 ing operator applying for a general crease their prize eligibility by creating license. teams where each eligible ticket entry BMM International’s European contributes to the team’s chance to win laboratory, BMM Spain, has been ac- a collective prize pool. credited to test and certify iGaming
lv e n d o r w k s platforms for the Spanish Gaming Consulting Group Authority. BMM’s detailed evalua- GLI has formed a new dedicated global tion process revealed that Betware’s lottery consulting group. The new Central Regulatory Storage (CRS) group will consult with lottery orga- system complies with requirements nizations globally on issues relating set forth by the regulator. This ensures to the audit and security of all of their that Betware´s CRS is the appropriate lottery products, including VLTs, their solution for any operator applying for online games, iGaming, scratch tickets a license in Spain. patent-pending Understand™ print- and conformance with World Lottery “For over 15 years Betware has ing option. Association (WLA) standards. been focused on providing top qual- “It’s no secret that there is signifi- The Lottery Consultation group ity products that follow the strictest cant potential for lotteries within the will be based in Moncton, New Bruns- regulations set forth by authorities. Hispanic segment,” said Steve Saferin, wick, Canada, and will be headed by Our major goal is to offer products that president, Properties Group and chief GLI’s new director of lottery services, allow our customers to focus their ef- creative officer for Scientific Games. Gregory Doucette, formerly of Tyrne forts on marketing and selling games to “We’ve seen other traditionally His- Enterprises, Inc. and the Atlantic Lot- their players with Betware ensuring all panic brands like Loteria® perform tery Corporation, and Doucette’s long- regulatory requirements,” said Stefan very well as instant games.” time business partner Daniel Charlong. Hrafnkelsson, CEO, Betware. Social Instants™ al hark com Palitos Locos™ C S . Pollard Banknote has introduced Sciplay International SARL, a joint MDI Entertainment, LLC has inked a its patent-pending Social Instants™ venture of Scientific Games Corpora- deal with Dreamin8, LLC so it can of- product. Aimed at helping lotteries tion and Playtech, has announced the fer images, themes, logos and phrases appeal to the 18-to-34-year-old emerg- launch of CalShark.com, the free-play from the popular Palitos Locos™ art ing market and other users of mobile online poker site established for the property to lotteries for use on instant technology, Social Instants harnesses California Online Poker Association. games. the marketing power of mobile and Palitos Locos™, literally translated social media with traditional instant Properties Plus® as “Crazy Sticks,” was created for (but tickets to facilitate winner awareness is not limited to) the young, hip and messaging and group play. MDI announced it will be providing cool Hispanic population. Designed “While instant tickets have achieved its Properties Plus loyalty rewards by artist Billy Attinger and emanating growth of about 136% over the past 10 program to the Missouri Lottery. The from his popular Stick World® brand, years, emerging technology offers the program was included as an option in the stick figures portray personalities opportunity for significant growth, a recently signed instant ticket agree- and phrases well known to the Hispan- particularly in the younger demo- ment between the Missouri Lottery and ic community, speaking to its audience graphic,” said Doug Pollard, co-CEO, Scientific Games, and the lottery has in assertive, fun and creative ways. Pollard Banknote. decided to exercise that option. As part of the agreement between The exclusive Social Instants mo- As part of the agreement, MDI will MDI and Palitos Locos, the entire col- bile app will interface with instant be providing upgrades and enhance- lection featuring hundreds of Palitos tickets via Quick Response (QR) codes ments to the existing “My Lottery” Locos characters is accessible to lotter- printed on the physical ticket. Using players’ club website, including the ies. In addition, Attinger is available to Pollard Banknote’s patent-pending addition of MDI’s Points for Prizes® create customized artwork for lotter- Quick Link™ technology, players player loyalty rewards program. ies desiring specific looks or themes will use smartphones to scan the QR The lottery also will receive Sci- tailored to consumers in their regions. code which will prompt them to share entific Games’ patent-pending Easy To make games featuring this brand winning moments and experiences Entry™ system, which allows players even more attractive to players who do with friends, or enter a second-chance to enter non-winning instant tickets not read English, lotteries may choose draw which may also integrate with a to accumulate points that can be re- to have bilingual instructions printed lottery’s VIP club. Social Instants also deemed for rewards in the Points for on tickets utilizing Scientific Games’ offers players the opportunity to in- Prizes store.
37 / La Fleur’s Magazine / November/December 2011 La Fleur’s Magazine / November/December 2011 / 38 39 / La Fleur’s Magazine / November/December 2011