Building the Brand 2 INSIGHTS September/October 2015

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The Official Publication of the North American Association of State & Provincial Lotteries

INSIGHTSSeptember/October 2015

NASPL 2015 Building the Brand 2 INSIGHTS September/October 2015

From the NASPL Staff President David B. Gale Executive Director Thomas C. Tulloch Director of Administration Andrew White VP of Operations Tamika Ligon Director of Program Planning John Koenig Graphic Designer This saying has always been one of my favorites: Happiness happens on the way to success. Janine Hutzell Accounting Patricia McQueen Editor And if the past year is any indication, we’re pretty happy in the North American lottery industry. Yes, we saw Jake Coy Vendor Relations some stressors in the past 12 months, but we stacked up Mike Duff NSI Coordinator some enviable results at the same time. Combined, U.S. and Canadian lotteries sold more than US$78 billion in products while raising some US$23 billion in proceeds for the worthy causes benefitted by our organizations. NASPL Executive Committee

Interestingly, our success was achieved against a backdrop Terry Rich President of some fairly significant stressors. Paula Harper Bethea First Vice-President We kept up conversations in Washington, D.C., where lawmakers discussed proposals May Scheve Reardon Second Vice-President that would establish federal regulation of Internet gaming in the United States, thwarting Rose Hudson Treasurer states’ rights to provide (or not provide) the gambling products that their citizens desire. Our efforts were noticed, and have made a difference. Charlie McIntyre Secretary Gary Grief Immediate Past President Along the way, we’ve also worked on ideas for new games, renewed retailer collaboration and better lotto-game branding; held collaborative meetings, workshops and seminars; David Loeb Pres. Interprovincial Lottery and started a new industry governance discussion that will set our course for even more Carole Hedinger Region I Director fun in the future. Alice Garland Region II Director We’ve been unafraid of taking on some of the biggest misconceptions/myths/urban Randy Miller Region III Director legends about lotteries. In this edition of Insights, you’ll find the real-world facts that address some of the most common mistaken assumptions about our industry. David Barden Region IV Director

As my term as NASPL president draws to a close, I pause and reflect on the many great things we have accomplished. My thanks go out to the hard-working NASPL staff, the NASPL executive committee and board, the Iowa Lottery staff, the great staffers at lotteries throughout North America, the dedicated lottery vendors who support our industry’s efforts, and all who smiled as we recognized that happiness really is happening on our way INSIGHTS to even more success. Circulation: Gary Grief and his Texas staff have worked hard to build an exciting annual conference Insights ISSN 1528-123X, for us at NASPL 2015 in Dallas. Let’s brand this event as the place for continued success, September/October Issue 2015, respect and giving thanks for all who have helped build our industry to today’s enviable Volume No. Fifteen, Issue Five. levels. Thanks again for a fun year! Published bi-monthly by NASPL (North American Association of State and Provincial Lotteries)

1 South Broadway, Geneva, OH 44041

© 2015 All rights reserved. Terry Rich NASPL President NASPL Email: Chief Executive Officer, [email protected] Iowa Lottery Authority Web Sites: www.naspl.org / www.nasplmatrix.org Phone: 440.466.5630 Fax: 440.466.5649 INSIGHTS September/October 2015 3

Visit us at NASPL 2015 Dallas to discover more

The

Dawn of a New Era Coming October 2015

© 2015 GTECH Corporation. The trademarks and logos contained in this document are marks owned by or exclusively licensed to GTECH Corporation and/or its affiliates. IGT is committed to socially responsible gaming. Our business solutions empower customers to choose parameters and practices that become the foundation of their Responsible Gaming programs. 4 INSIGHTS September/October 2015 September/October 2015

Making a Difference: Robert Tirloni Page 18

IN THIS ISSUE!

6 22 40 New National Campaign Puts What Veronique Taught Me Managing Games, Focus On ‘The Five White Balls And about Advertising Texas Style The Powerball’ Stephen Wade, Research and The host lottery for NASPL 2015, the Ads will feature drawing balls with Development Manager, Washington’s Texas Lottery has been busy with a words instead of numbers. Lottery and Principal, Lottery lot of moving parts in its games and Management Consulting, LLC operations. 10 By Patricia McQueen The Rhode Island Lottery 26 Achieves NSI Quality Assurance Cashing in on Cashless Solutions 46 Verification Consumers are increasingly expecting NASPL 2015 Awards Nominees cashless transactions in all aspects of and Judges 12 their lives, and the lottery industry needs to offer solutions to capture the Stuff those Holiday Stockings 64 Responsibly opportunities. 2015 NASPL Associate NASPL endorses the holiday responsible By Patricia McQueen gaming campaign. Member Profiles By Patricia McQueen 30 Debunking Lottery Myths 18 Lottery PR professionals address a Making a Difference: dozen lottery myths. Robert Tirloni Products and Drawings Manager, Texas Lottery Commission INSIGHTSINSIGHTS September/October July/August 20152015 55 Pam links your players’ way to the ultimate game experience.

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A Look Around the Industry

New National Campaign puts Focus on ‘The Five White Balls and the Powerball’ Ads will Feature Drawing Balls with Words Instead of Numbers

national advertising campaign for Powerball® debuts this fall that will give a new look to a Ahighly recognizable but utilitarian part of the game: the six balls used in its twice-weekly drawings. Rather than displaying numbers as they normally do, the five white balls and one red ball will feature words spelling out fun messages in the new ads. The idea behind the campaign is to allow messaging that can vary from state to state but still produce familiar visuals across the country. “Our goal was to have a more consistent look across the nation for Powerball,” said Paula Harper Bethea, Executive Director of the South Carolina Education Lottery and lead project member of the Marketing and Promotions Committee at the Multi- State Lottery Association. “But the real beauty of this work is that it’s fully customizable for all lotteries to their individual messages. Graphically, we can look the same, but the message can adapt to an individual state’s preferences.” After a request for proposals was issued in fall 2014, the MUSL Marketing and Promotions Committee chose the St. John & Partners agency of Jacksonville, Fla., to develop a full complement of television, radio, out-of-home, digital and key messaging. The campaign begins with the updated INSIGHTS September/October 2015 7 8 INSIGHTS September/October 2015

A Look Around the Industry

version of the Powerball game that debuts in October and is • Someone’s Gonna Win Why Not You? designed to have staying power for the next 48 months. • No Better Time To Start Playing Gary Grief, Executive Director of the Texas Lottery • $40 Million Reasons To Start Playing and National Chair of the Powerball Game Group, said he • There’s A First Time For Everything appreciates the campaign’s contemporary approach. “The polished, modern and fun look of the advertising The objectives of the campaign include establishing more campaign capitalizes on the strength of the Powerball brand urgency for all jackpot levels while invigorating the brand; and positions us as we launch the newest version of the creating a stronger emotional relationship to the brand; game,” he said. inspiring new players; increasing the frequency of play; and Some of the six-word messages that may be emblazoned encouraging earlier, entry-level play. on the drawing balls in the campaign include:

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A Look Around the Industry

The Rhode Island Lottery Achieves NSI Quality Assurance Verification

ecently the Rhode Island Lottery finalized its verification important piece is educating the staff, scheduling the effort under the Quality Assurance Best Practice within incorporation of processes, engaging the right resources for Rthe NASPL Standards Initiative (NSI). implementation and monitoring the progress through to The QA Best Practices are intended to provide both completion. lotteries and vendors with a simple, documented and approved method for building quality into the product development processes (definition, development and acceptance) as applied to the delivery of vendor products into the lottery environment. About NSI: “The Rhode Island Lottery staff members have shown The NASPL Standards Initiative (NSI) is a collaborative effort dedication in achieving this milestone,” said NASPL Executive between Lotteries, Vendors and Retailers to provide an Director David Gale. “I want to congratulate the them for interoperable Lottery based on: Open Technical Standards, their commitment to quality.” Approved Best Practices and Verification (Lottery) / The Rhode Island Lottery has received NSI Verification Certification (Vendors). NSI development work began in under Quality Assurance of Product Development in the 2002 after NASPL and the Participating Vendor Community Lottery Industry: Requirements Definition and Acceptance approved the project and corresponding funding. For more Testing. information contact NASPL Headquarters at 440-466-5630. Best Practices, like Quality Assurance, are process oriented. They are intended to improve the process and make those handoffs appear seamless. The Quality Assurance Best Practice is comprised of three areas:

• Requirements (Lottery Specific) • Product Development (Vendor Specific) • Acceptance Testing (Lottery and Vendor)

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Lotteries and vendors are proceeding with confidence that implementing these best practices will result in processes that can withstand the test of time, quality, certification and public scrutiny. If used consistently with all projects, the best practices will become standard methodology and will eliminate re-inventing quality and project management processes with each new product, thus saving time, resources and money for both lotteries and vendors. Implementing the best practices is the first step in adoption. NSI verification/certification is the final step in Your Rhode Island Lottery assuring the best practices were implemented correctly. One of the most important steps in adopting the NSI QA Best Practices is to accept the value of adoption. Another INSIGHTS September/October 2015 11 12 INSIGHTS September/October 2015 Give Responsibly. Lottery tickets aren’t child’s play.

Keep the fun in the holidays — don’t purchase lottery tickets as gifts for underage children!

This message from

Insert lottery logo (white is preferred) here.

with the International Centre for Youth Gambling Problems at McGill University (Canada) and the National Council on Problem Gambling (US). www.ncpgambling.org/holiday www.youthgambling.com Stuff those Holiday Stockings Responsibly!

NASPL endorses the holiday responsible gaming campaign presented by the National Council on Problem Gambling and McGill University’s Youth Gambling Centre.

By Patricia McQueen INSIGHTS September/October 2015 13

ow in its eighth year, the annual initiative to increase public awareness about the impact of gifting lottery products to Nunderage minors is under way. The social responsibility message carried by the Holiday Campaign resonates worldwide, and 38 lotteries around the globe were formal participants in last year’s program. The campaign is spearheaded by the National Council on Problem Gambling (NCPG) and the International Centre for Youth Gambling Problems and High-Risk Behaviors at Canada’s McGill University. It is endorsed by both the North American Association of State and Provincial Lotteries and the European Lotteries Association. There is one simple message – that lottery tickets are risky gifts for children. “Whether or not it’s legal for minors to participate in lottery games in a particular jurisdiction, a responsible gaming message is always important, especially around the holidays,” said Dr. Jeffrey Derevensky, Director of the McGill Centre and a renowned expert on problem gambling among youth. “We welcome the collaborative efforts of lottery corporations worldwide to help raise awareness about this issue; together we can make a difference in preventing underage gambling and gambling problems.” Research shows that a majority of adolescents gamble at least occasionally, and that lottery products may be a gateway to problem gambling. In fact, data indicate that there is a strong association between the age of gambling onset and the severity of problem gambling. Additionally, youth gambling is known to be linked to other risk-taking and addictive behaviors such as smoking, drinking and drug use. NCPG Executive Director Keith Whyte explained that it’s vital to raise awareness about gifting lottery tickets to minors. “The Holiday Campaign is a way to remind people that they can keep the fun in the holidays by gifting lottery tickets responsibly to adults.” problem gambling councils to work hand-in-hand with experts “right “Lottery tickets and scratch cards can be fun, entertaining, in your own backyard.” exciting and affordable, but they are not appropriate gifts for The 2015 Holiday Campaign, which comes at no cost to underage minors,” added Derevensky. “Playing the lottery at a young supporting lotteries, has a variety of options for participation. For age can increase the potential for problem gambling later in life.” example, lotteries can: Since we know that lottery play at a young age increases the risk of problem gambling later in life, ultimately it comes down to trying • Allow the use of their name as a supporter in the Holiday to change the behavior of parents. “That’s an important point,” Campaign press releases and in any publicized materials explained Whyte. “We want to ally with lotteries and retailers to help pertaining to the campaign; parents make more informed decisions about lottery play, especially around the holidays.” • Distribute their own press release concerning the campaign; Whyte noted that the NCPG has always been concerned about the issue of underage gambling, but before this campaign was • Place a link on their website to the NCPG Holiday Campaign developed it was often difficult to get most lotteries to address site (www.ncpgambling.org/holiday); and/or underage participation and play. “So we think this concept has been very successful in helping us to build positive responsible gaming • Produce and distribute a pre-designed campaign playcenter partnerships.” insert.

The playcenter insert was designed to facilitate rapid and easy Flexibility is key lottery corporation customization. A space is provided on the insert enabling lotteries to add their corporate logo prior to printing. he Holiday Campaign is truly a grass roots effort that allows The insert can be provided to lotteries in any digital format for each lottery organization to tailor the message to the needs reproduction and distribution. In addition, a sample press release Tof their own jurisdiction, explained Whyte. “Lotteries have with areas for quotes from an administrator at a lottery can be incredible marketing and promotional resources, and we certainly see provided upon request. NCPG and the International Centre for Youth that in some of the creative advertising campaigns that have been Gambling Problems encourage organizations to use these templates out there.” This is an opportunity for everyone to work together to or create their own materials. build on that creativity to address the very real concern of underage There’s so much creativity in the lottery industry that lotteries gambling. He also encourages lotteries to partner with their local do in fact often use their own designs instead of the free materials 14 INSIGHTS September/October 2015

provided by the campaign’s organizers, noted Whyte. “But they visual piece in the campaign. The 360 degree holiday marketing always want to see our examples.” campaign created by GTECH Indiana and the Hoosier Lottery included TV commercials, outdoor, print and electronic point-of-sale items, retailer newsletters, website and social media. Lottery participation “Addressing underage play has been an important part of our responsible gaming program for a number of years, and we are proud hat creativity has not gone unnoticed, and this will be the fifth to partner with experts such as the National Council on Problem year that the NCPG has given an award to the best holiday Gambling, McGill University and the Indiana Council on Problem Tcampaign. Last year’s winner was the Hoosier Lottery, with the Gambling in order to effectively get this message out to the public at Illinois Lottery taking the title for its 2013 campaign. For the 2012 and holiday time,” said Taylor. 2011 campaigns, two winners were named each year, one from the Looking ahead, Whyte hopes that participation will continue to U.S. and one from the international marketplace, and winners were grow until every NASPL member gets involved. He would like to see the Connecticut Lottery (both years), the British Columbia Lottery even more use of the incredible marketing and design resources Corp. and Austrian Lotteries. lotteries have at their disposal to improve the campaign messaging Like many lotteries, the Hoosier Lottery has a strong commitment and materials. He sees potential in having another informal to corporate social responsibility throughout all of its business competition where lotteries can submit designs each spring, with operations. “Corporate social responsibility is a fundamental business perhaps NASPL’s Responsible Gaming committee choosing the winner priority placed at equal value with increasing sales, modernizing and theme for the holiday campaign that year. “So there are ways it marketing techniques and optimizing and expanding our retailer can evolve even more and we welcome the opportunity to work with base,” said Executive Director Sarah M. Taylor. leaders in the North American and worldwide lottery industry to take Hoosier’s award-winning program last year featured the “Gift the campaign to the next level.” Responsibly” tagline and logo that were included on every applicable INSIGHTSINSIGHTS September/October July/August 20152015 1515

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2788 Corporate Advert AW.indd 1 01/09/2015 15:31 16 INSIGHTS September/October 2015 COMPLETE LIST OF 2014 HOLIDAY CAMPAIGN PARTICIPANTS:

Canada Alberta Gaming and Liquor Commission, Atlantic Lottery, British Columbia Lottery Corporation, Manitoba Liquor & Lotteries, Nova Scotia Provincial Lotteries and Casino Corporation, Ontario Lottery and Gaming Corporation, Saskatchewan Lotteries

United States Arizona Lottery, Arkansas Lottery, California Lottery, Connecticut Lottery Corpora- tion, DC Lottery and Charitable Games, Georgia Lottery Corporation, Hoosier Lottery (Indiana), Illinois Lottery, Kentucky Lottery Corporation, Maryland Lottery and Gaming Control Agency, Massachu- setts State Lottery Commis- sion, Michigan Lottery, Minnesota Lottery, Missouri Lottery, New York Gaming Commission – Lottery Division, North Carolina Education Lottery, Ohio Lottery, Oklaho- ma Lottery Commission, Oregon Lottery, Pennsylvania Lottery, Rhode Island Lottery, South Dakota Lottery, Tennes- see Lottery, Texas Lottery, International Vermont Lottery, Virginia AB Svenska Spel (Sweden), Lottery, Washington’s Lottery, Austrian Lotteries, Hrvatska Wyoming Lottery Lutrija d.o.o. (Croatia) INSIGHTS September/October 2015 17 18 INSIGHTS September/October 2015

MAKING A DIFFERENCE: Robert Tirloni, Products and Drawings Manager, Texas Lottery Commission INSIGHTS September/October 2015 19

otteries are all about games. And Robert Tirloni knows about games. After all, he oversees a portfolio of nine terminal-based games and the most complex scratch game business in the lottery industry, which together make up the Texas Lottery, the fifth-largest lottery in North America. LAs Products and Drawings Manager, he directs the lottery’s products operations and programs, which among other things includes the introduction and marketing of new products that help generate new revenue opportunities. He is also instrumental in building relationships with all industry stakeholders – including the retailer community and state agency leaders, customers and the general public. “Robert Tirloni has been critical to the success of the Texas Lottery for well over 18 years,” said Lottery Operations Director Michael Anger. “Since assuming leadership over the agency’s products portfolio in 2004, Robert and his team have continuously worked to deliver to the market new and innovative products for Texas Lottery customers. His team has been responsible for product sales delivering over $1 billion annually in revenue transfers to the state throughout his tenure, reaching a record $1.2 billion in Fiscal Year 2015.” Tirloni joined the lottery in 1997, and has risen through the ranks from Games Compliance Specialist to Instant Product Marketing Specialist to On-Line Product Manager, before assuming his current position in late 2004. With so much to look after at the lottery, Tirloni rarely has time to his own. But when he does, he enjoys spending it with his wife Kristina and their two daughters, Adrianna and Isabella. Both girls have been involved in soccer, so Tirloni lends his support to the local soccer booster club when he has the time. The family also enjoys their two rescue dogs – two of many they have rescued from local shelters over the years. Tirloni graduated magna cum laude with a BBA in marketing management from Baruch College at the City University of New York.

What first brought you to the Texas Lottery in 1997? I had started my career in sales and marketing for print publications and newspaper groups, but after I moved from the Northeast to Austin I ended up working for the Texas Higher Education Coordinating Board, primarily helping students with their loans and finances. Although I really liked it, and liked the idea of working in state government, I wasn’t really using my marketing management degree and there didn’t seem to be a good growth path with that agency. Then I saw an advertised position at the Texas Lottery for a Games Compliance Specialist. Although that particular job wasn’t sales or marketing, I thought that working for a state agency that actually markets and sells a product would be fun. I thought I could put my experience to good use.

You went from working primarily with scratch tickets to managing terminal-based games, and now you oversee them all. What do you like and dislike about each product? On the draw game side, I think it’s very, very exciting when we have those triple-digit record jackpots in Powerball and Mega Millions. The frenzy that’s created, the excitement with people standing in lines, the retailers selling thousands of tickets a minute – it’s just all very exciting. What I don’t like is that draw games are generally an older product, one I call the “invisible product.” No matter how hard you try to communicate about these games, the fact is that when 20 INSIGHTS September/October 2015

somebody walks into a retail store, there’s a terminal sitting on the another record-breaking sales and revenue year, with approximately counter, and that’s it – that’s the draw games side of the business. It’s 77 percent of our sales on the scratch side. Just for the sake of a hard product to move the needle on, and that’s frustrating. increased profitability, I would like to see a bigger portion of our In contrast, scratch games are far more creative. In Texas we have product mix come from draw-based games. If we could go back in price points from $1 all the way up to $50, and you can get a product time and play Monday morning quarterback, maybe we should have to market relatively quickly whether you come up with your own idea done more of what we are doing now, which is trying to focus on our or borrow one from another lottery. I really like that. daily draw games to help prop up that part of the overall portfolio. The only downside, if you can call it that, is that because we’ve That said, certain types of games do better in certain regions built our scratch ticket success on the launch of 90 games annually, of the country – our Pick 3 and Daily 4 games will most likely never it really requires a tremendous effort. You have to have a really generate the kind of sales that some lotteries in the Northeast, for well-oiled machine. There needs to be a tremendous amount of example, will bring in with those games. Those games are entrenched coordination among a myriad of moving pieces when you launch that in the lottery culture in that part of the country and it is just different many games in a year. here.

How effective is marketing for terminal-based games, those What do you look for in developing a new terminal-based game? “invisible products” you mention? I look for games that aren’t just ‘pick x out of y’ – All or Nothing, We have never found it very effective to market the big games for example. You need some kind of spin, so you can tell people the at lower-level jackpots. We tried years ago with Lotto Texas when game is different. All or Nothing has a unique proposition – you can the starting jackpot was – don’t laugh – $4 million. Back then, that win the top prize if you match all 12 numbers or if you match none was a lot of money, yet those campaigns still didn’t work. To this day, of the numbers. Our new Triple Chance is unique because players we really don’t believe that we can move the needle on the starting get three different sets of seven numbers for $2, yet we draw 10. jackpots of games like Powerball and Mega Millions. We do believe We think players will like the fact that we’re drawing more numbers that statistics will come back in our favor and continue to deliver than they are selecting, giving them more chances to match those huge jackpots in those games, even though we’ve kind of defied the numbers. odds recently, and we’ll again get the media attention and the excited So I think we need to try to find unique aspects of draw games retailers and players. Obviously we have no control over that, so what that we can try to communicate through point of sale, through we are doing instead on the draw game side is trying to drive sales on advertising and through our retailers, to try to get people interested. the daily games, the games that are not jackpot-driven. We’ve been But despite all that, draw games are still just pieces of paper printed doing that for the past year and will continue to do so. And we have a out of a terminal sitting on the counter. It’s always a tough sell at brand new game, Triple Chance, that started in late September, so it’s retail compared to scratch games. another chance to grow the draw game side. In your opinion, what is the future of mega-jackpot multi-state Is there anything you wish you could do differently with respect to games, given jackpot fatigue and other challenges? the balance between scratch and terminal-based games at the Texas It’s kind of like a vicious circle, isn’t it? We’ve had these Lottery? tremendous jackpots, which lead to jackpot fatigue, which leads Certainly what we have now is working – we just completed to making the odds longer so we can create higher jackpots. You INSIGHTS September/October 2015 21

understand why it has to be done, but at the same time it has to stop somewhere, because otherwise you’ll end up with one in 500 million jackpot odds. But at this point in time, we aren’t there yet. In Texas, I think we have a real challenge in that both players and retailers are confused about the differences between Powerball and Mega Millions, and between Power Play and the Megaplier. After all, there have been a lot of changes to the games in a short period of time. We want to make these games as simple as possible, but that’s not always easy. With the new Powerball change and the 10x Power Play multiplier, which is not available at all jackpot levels, there’s a lot of education you have to do on all the various nuances of Powerball and Power Play versus Mega Millions and Megaplier. We forget that Joe Q. Public doesn’t spend 50-60 hours a week thinking about the lottery and how lottery games work – if it’s not easy for them, they will walk away. And even retailers – if it gets too complex they won’t spend a lot of time trying to learn a game and push it to the public. I often wonder if perhaps there should just be one massive national multi-state game. I’ve thought about a game with two different jackpots built in – one massive rolling jackpot and a smaller rolling jackpot that is a lot easier to win. I don’t know if the math could work to make that a viable option, but it’s something I’ve thought a lot about. It might simplify things for both retailers and players in the long run. 22 INSIGHTS September/October 2015

What Veronique Taught me about Advertising Isn’t that how advertising is supposed to work?

Stephen Wade, Research and Development Manager, Washington’s Lottery and Principal, Lottery Management Consulting, LLC

Some time ago, I told the story of how our chance convey that in a photograph? It’s so subtle!” exposure to a television ad for the lingerie company that she “As distinct from, say, the ad we saw on the TV in the had once modeled for led Veronique to share her reflections bar?” on how a brand differs from a business, and how changes “Yes! The beach volleyball thing was more like ‘We are in one can drive changes in the other. We considered the spectacular, you are watching!’” lottery business, and talked about how the brand it was born “So you think we girls have been projecting messages with might need to change, if into your head?” the business is to thrive in the “Isn’t that how advertising future. is supposed to work?” Later that same evening, “So you are blaming me after dinner with some for how you felt when you colleagues, we were sitting looked at my picture?” together again and I ventured By now I was pretty “Blame? No, I’m giving to return again to the you credit! This was all impression I (as a customer) sure that it was very positive! The appeal had taken from that lingerie of an intellectual life with company’s advertising, thirty Veronique’s art that a beautiful woman? That’s years ago. By now I was pretty what it communicated to sure that it was Veronique’s art me. And I marvel at how that had made such a lasting had made such a you were able to do that… I impression. mean, OK, obviously you are “What I remember getting lasting impression. beautiful and you turn out to from the advertising was be brilliant too, but: how did something like: ‘I expect you communicate that in a your respect and your best picture?” attention, even though my I have found that it is a beauty may distract you.’ I reliable sign of trouble when, mean, that’s what the model the more I praise a woman, seemed to be saying. Wearing glasses, and reading aloud the more she seems irritated. That is what I felt happening from a book.” here. Veronique showed no inclination to own this impression, However, much to my surprise, in the next ten minutes and regarded me with what I took for tolerant amusement. Veronique turned my understanding of what I had “I mean, what I don’t get is: how did you manage to experienced upside down, and even left me feeling hopeful INSIGHTS September/October 2015 23

about Lottery advertising. She started: “You realize that I have thought a lot about this. “When I stopped being the ‘content’ and started being the user of the content, I had plenty of time to consider what had been happening when I was on the page. “I’ll tell you what: I do not think that I projected any of And of course, those things you mentioned. I think you projected them onto me. My talent was to be a good sort of screen.” She gave me a searching look, and she must have been different people will able to read that she had my full attention. “I believe that I had some success as a model because have had different some people could read, after they had projected something onto me, some sort of sharing or agreement or affirmation. questions. That is, I represented a “yes” to a question that probably was not even clearly formulated. And of course, different people will have had different questions.” She deliberately corrected her posture, gave me a warm smile, and said, “Do I seem agreeable to you?

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This affirmation is brought to you by the product I am but I think the brand is really about how sweet it is to be representing, which by the way is artful underwear.” an optimist. Do you remember the last scene in the movie Veronique’s performance proved her point for me, even Being There?” while she was explaining it. I felt cheerful, even if she was “Where the Peter Sellers character- Chance, the telling me I understood nothing about advertising. Gardener- walks across the pool?” “You do have a real talent there,” I murmured. “Yes! I wish that movie were better known. That last She continued in a reflective tone, “Advertising is just image of Chance on the water could be the icon for the communication; there are lots of ways for it to be good. But lottery player.” I’ll tell you, I like that style where we provide an affirmation (Dear reader: if you don’t know that film, please take a and sort of give the brand credit for it. I have come to think look. It’s another one of those eighties things.) that this is how a lot of “And you know,” she good advertising works: it continued, “you may be able to doesn’t tell people what resonate with both the player to want, but it affirms you have, and the player you that what they want is don’t have yet, if you stick to achievable, with the help optimism.” of something we can “Like the Minnesota ads?” provide. “Chance is a Beautiful “And practically When I came into Thing? Yes, those were great!” speaking, I like the kind Now, although I myself of ad that is affirming the lottery industry am capable of delusional because they seem to lift optimism, I generally maintain people, you know? They I recognized that what I think is a realistic point generally have a positive of view. When I came into the vibe, whether you get the there are times when lottery industry I recognized brand association or not. that there are times when They’re fun to work on. even a textbook economic man “And once they’re even a textbook would buy a lottery ticket. That done, I think they work is to say, sometimes the prize well for you in the economic man would is so high that even given the lottery industry, because very slim chance of the win, the gamblers are optimistic. buy a lottery ticket. expected value of the ticket is Sometimes, maybe, to a bigger than its price. But these fault. But really, isn’t that once-in-a while situations are an asset of character, to created by the steady optimism be optimistic? I remember of the regular players, who some famous psychologist know that the most important saying that if he could thing is to be in the game. wish for any character Without them, the opportunity trait for his kids, it would be optimism.” that attracts the jackpot-chaser would never arise. I recognized the reference. “That was probably David “So, you would want to support the attitude of Kahneman, in Thinking, Fast and Slow. Brilliant. I remember optimism with advertising…do you think you can make too, he had some thoughts about a particular kind of people more optimistic that way?” optimism that it takes to be a researcher. ‘The ability to “Of course not! Remember, I am not projecting sustain a delusional sense of the importance of one’s work.’ messages into your head! But even optimists are sensitive Delusional! Who’s to say that researchers are any better to people telling them they’re silly. They could use some than gamblers? But you’ve got to have the delusion, in affirmation. After all, often enough events don’t really order to keep at it.” go their way. They may get the message from others Veronique gave me a big smile. “I like a man who knows that they’re dumb to keep on trying. I think the real when he’s delusional.” opportunity is to celebrate their willingness to try. “It’s a kind of sanity. There’s more than one kind.” “I mean, look at what we do with sports,” she Veronique continued, “Anyway, as to brand, I suppose continued. “Most people who run do not win races, but the lottery has to feature its products, sometimes, but, we give them lots of respect for trying. We are perfectly INSIGHTS September/October 2015 25

willing to recognize the attitude and the effort as positive, even if they have nothing to show for it.” Stephen Wade “You picture ‘Just do it’ as a slogan for lottery players?” She smiled as she replied, “No, but I think there’s Research and Development probably something to learn from thinking about why that Manager, Washington’s Lottery seems funny to us. Are athletes virtuous because they make a physical effort, and gamblers are not because they and Principal, Lottery Management don’t? That doesn’t seem right. I think lottery players could probably lay claim to a better vibe than many people give Consulting, LLC them.” This is where we left that conversation. I have thought about it several times since, wondering what would be an image that would provide a “yes!” to what players probably know but are no better able to articulate than I am – something about the virtue of accepting chance. I have not come up with anything good myself, but sometimes I see it in the work of various creative folks in our industry. And, as I feel that positive vibe, I connect it back to this conversation with Veronique.

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Contact us: [email protected] 26 INSIGHTS September/October 2015 Cashing in on Cashless Solutions Consumers are increasingly expecting cashless transactions in all aspects of their lives, and the lottery industry needs to offer solutions to capture the opportunities.

By Patricia McQueen INSIGHTS September/October 2015 27

Despite all the forecasts of a cashless society, cash will probably never disappear entirely. It does, however, account for fewer and fewer payment transactions around the world as time goes on. Some countries are actually committed to removing cash from their commercial payments systems – the movement seems strongest in the Scandinavian countries. “The beauty of this For example, Denmark made headlines last spring when the Danish government proposed a new law that would allow store owners to refuse is that you set up the cash payments in favor of non-cash methods. In the cashless realm, consumers have more choices than ever – credit Starbucks ‘wallet’ and debit cards, Apple Pay, Google Wallet and a host of other services – and all of them offer many advantages that cash can’t touch. These include speed, convenience, guaranteed payment for merchants, and on your phone or the security and transparency for all parties. Mobile payments are by far the fastest-growing non-cash segment, internet and manage and the medium is accelerating as major players like Apple and Google make giant strides forward. A recent report by Future Foundation, which your account from studies trends in consumer behavior, noted that “...as smartphones are slowly becoming capable of organizing every aspect of our lives, so it seems a natural process that they become the central device for handling there.” all aspects of our retail transactions – with peripheral wearable tools paired with our devices likely contributing to the payment experience.” - Andrew Crowe The report concluded that “Cash will not disappear and will still be highly favored in certain contexts (and among certain demographic groups). But, elsewhere, it will come to be viewed as an increasingly inconvenient option – too slow, too clunky, too imprecise.” In particular, it is the smaller everyday purchases where cashless transactions will really shine. And as expectations evolve, consumers expect better service and speed in the retail environment. “Mobile phones (and paired, wearable devices) will remain at the forefront of this trend, progressively able to facilitate more and more of our routine commercial needs.” Perhaps no one understands this as well as Starbucks, which is the shining example of mobile payment success to date. Its mobile app is linked to the company’s loyalty program and what is essentially an electronic wallet, so consumers can manage their accounts, add funds and make in-store purchases while earning points. In 2013, Starbucks claimed to account for as much as 90 percent of the $1.6 billion in smartphone purchases made in all U.S. retail stores. And by the end of 2014, the company reported more than 13 million mobile users in the United States alone; those users made about seven million mobile transactions a week, about 16 percent of the chain’s total transactions. “The beauty of this is that you set up the Starbucks ‘wallet’ on your phone or the internet and manage your account from there,” said Andrew Crowe, IGT’s Vice President, iLottery, North America, “then simply launch a barcode on your mobile screen and present it to the cashier to complete a purchase. You could easily do the same thing for lottery – scanning your phone via the lottery terminal.” This is not unique to coffee – it’s just a mobile cashless payment method that consumers are increasingly adopting. A similar type of system is already being used by the Georgia Lottery. There, as part of its iLottery program, an e-wallet was developed that also allows players to purchase lottery tickets at retail using funds in that e-wallet. Players can present their player card at a retail establishment when purchasing lottery tickets; their card is scanned and the funds are deducted from their account for the purchase. In addition, any winnings on terminal-based games, up to $5,000, are automatically deposited back into the e-wallet. Players can also add funds to their e-wallet at retail, in addition to funding it online via bank transfer or debit cards. “The system is transforming the retail lottery experience in Georgia,” said Crowe. That system is just one type of closed-loop cashless models lotteries can use that offer convenience and security. Another involves using 28 INSIGHTS September/October 2015

self-service lottery vending machines with card readers installed, added Paul Riley, IGT’s Vice President, Product Innovation and Research Development. The machines could, depending on the rules in each jurisdiction, accept debit and/or credit cards, Apple Pay and similar In addition to systems, or a lottery’s player ID card of some sort that would link back to an e-wallet the player manages online. Such machines would have a providing a new number of additional benefits for lotteries and their retail partners. For example, self-service machines that require cash are more way to interact with expensive, larger and more complex to operate and labor intensive, since they require someone to physically remove the cash among other things. A machine which doesn’t allow cash can be smaller, cheaper and less consumers, cashless operationally complex. In addition to providing a new way to interact with consumers, cashless vending machines “could open up whole vending machines new trade styles for lotteries,” said Riley. “They would be more retailer “could open up friendly.” whole new trade The road to cashless There are three aspects to how and when the lottery industry makes styles for lotteries.” inroads in cashless payments, explained Riley. Perhaps the easiest is the technology – the ability to cover all the variations from jurisdiction to jurisdiction, solutions that satisfy lottery security requirements and - Paul Riley everything else involved in lottery sales. “That’s all being worked on, and I know we can get there,” said Riley. A second aspect, one much less certain and not under industry control, is the regulatory and legal perspective – what is allowed in each jurisdiction. Once the industry figures out the technical aspects of what it can do, it still must comply with individual rules and regulations, which can vary widely by jurisdiction. Some only allow payments by cash only, some are cash and cash equivalents (like debit cards), others allow everything including credit cards. And finally, the business model must be proven – that incremental costs from card interchange fees and other elements will be more than compensated for with increased sales. “Based on precedents in other industries, we feel pretty strongly that if it’s done correctly, it’s going to be worth it,” said Riley. “There’s almost always a good business case for going cashless,” agreed Crowe, citing McDonald’s. As recently as 10 years ago, most of the fast food giant’s stores didn’t accept credit cards. They did a pilot test, and it wasn’t long before every single store had a card reader front and center at the registers. “They saw a significant lift in sales and average purchase, so the incremental sales more than covered the banking fees that they were incurring.” And it could very well be the same for lottery. “If ultimately it drives more sales, even if you are paying a little more incremental cost for each transaction, it’s still worth it in the long run because we are making more money for good causes,” said Riley. An e-wallet goes the furthest to reduce the banking interchange fees charged by credit and debit card usage. By having consumers fund their accounts in larger increments, the fees for each individual card use are minimized – instead of a $1 lottery purchase using a card, the player might make that purchase using an e-wallet that has been funded in $10 or $20 increments, lessening the impact of fixed banking fees incurred. That model has been smartly used by Starbucks to limit the fees it incurs on each cashless purchase. And it’s not a long leap from the mobile apps many lotteries are using today to the addition of an e-wallet feature. More and more lotteries offer increasingly sophisticated mobile apps that are loaded with player conveniences – check-a-ticket functions, retailer locators, and the ability to build number selections in an electronic play slip to be scanned at INSIGHTS September/October 2015 29

retail, are just the tip of the iceberg. Adding an e-wallet, connected to payments when lottery rules and regulations were established, to a lottery’s player’s club, is a natural evolution regardless of a lottery’s change their lottery statutes. ability to offer actual sales through online and mobile channels. And if the industry doesn’t achieve a widespread adoption of Even if a lottery never gets the ability to offer interactive cashless payment options? “It will be a huge missed opportunity” sales, going this route “improves the retail experience for both for the lottery industry, especially given the impulse nature of many the consumer and the retailer – lottery will be a faster, easier lottery purchases, emphasized Riley. For example, if there’s a self- transaction,” said Crowe. And should that lottery ever get internet service machine showing off a large jackpot up for grabs, and there’s sales, it has a valuable built-in database of active mobile users. a card reader or Apple Pay option, a shopper can easily purchase a ticket if so inclined. If that shopper has no cash, that impulse buy is potentially lost. Consequences of inaction Not only is it a missed opportunity at retail, but failure to adapt to a cashless society could also contribute to lottery becoming even less So what will it take for the lottery industry to catch up with relevant to younger generations. other industries and meet consumer expectations for payment “There are many examples where other industries have adapted experiences? Riley said the first step could be to get card acceptance to consumer preferences,” said Riley, noting that many beverage deployed on self-service retail lottery vending machines. It will take vending machines now take cards. “Cash is never going to go away, some effort to ensure that all the industry security requirements are but consumers are increasingly adopting or preferring other ways to met, but he doesn’t see that as a road block. pay. And lottery is not yet keeping pace with that – we are still a 100 Once the sales data starts coming in from the machines with percent cash business in most cases. We have to follow where the cashless options, it can be analyzed in great detail – whether there consumers go. If consumers start to adopt new payment processes, are incremental sales, how large the average purchase is, variations then we have to support what they are using at both self-service and by state, by trade style and even by product, and how the economics retail.” are with respect to interchange fees. A successful introduction in one And what’s out there tomorrow may be nothing like what’s out jurisdiction will lead to adoptions in others, and could even be used there today. “The bottom line is that we all have to keep an eye on to convince government regulators, who didn’t envision cashless this, because it’s morphing quickly.” NASPL 2015 Insights Ad.pdf 1 9/2/15 2:57 PM

CMY

K Debunking Lottery I

e’ve all heard them – erroneous beliefs about lottery operations and Mythsgames that often proliferate in mainstream media. These lottery myths can lead the uninformed, the critics and even the players to Wbelieve what is simply not true. Over the years, NASPL has countered some of the most common myths with the underlying truths. Recently, the organization’s Public Relations Committee took on the task of updating those myths to reflect recent research results and new developments in the industry. The following dozen debunked lottery myths have been prepared by lottery public relations professionals in Idaho, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Tennessee and Virginia. These and other hard-working communications leaders in the industry regularly share the issues and concerns lotteries have to deal with on daily basis. I INSIGHTS September/October 2015 31 Myth #1: The odds of being struck by lightning are better than the odds of winning a lottery. While lightning may strike somewhere in the United States 25 million times a year, it does not strike citizens in the United States as often as the luck of winning a Powerball or Mega Millions jackpot does. Over the past three years, there have been 82 winning tickets that have shared, or won outright, a Powerball or Mega Millions jackpot. Through the first eight months of 2015 alone, California, Illinois, Missouri, New Jersey, New York, Pennsylvania, Tennessee and Washington have more jackpot winners than lightning fatalities. Beyond jackpots, more than 1,300 tickets have won at least $1,000,000 on either Powerball or Mega Millions since 2013. For the three similar reporting years, the National Oceanic and Atmospheric Administration (NOAA) reports 67 lightning fatalities in the United States where these games are played. In truth, you have a better chance of striking it rich than you do of dying from a lightning strike in the United States. Of course there is one fact we do know: players have a zero chance of winning the jackpot if they never purchase a ticket.

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Learn more. Visit us at berrydunn.com or call 800.432.7202. 32 INSIGHTS September/October 2015 Myth #2: Lottery is a form of taxation.

A tax is compulsory payment to support government. Citizens have no option in contributing to state revenue with mandated levies and other tariffs. In fact, they may go to jail if they don’t pay their taxes and fees.

Playing the lottery is entirely voluntary. Whether as a regular purchase or as an occasional play, buying a lottery ticket is an individual choice just like buying any other product. The only consequence to not playing lottery is missing some fun and possibly a prize.

Some people argue that the lottery is an implicit tax, because it has higher administrative costs and is a less efficient way of raising money, but state lottery revenues go for education and other state-supported programs just like other tax money does. The lottery is simply a form of entertainment that happens to benefit your state.

Myth #3: Lotteries prey on the poor and lottery purchases are made mostly by low-income people.

People from all walks of life and all income levels like to play lottery games. Across the United States, players bought more than $70 billion in tickets in 2014. Clearly, the industry didn’t achieve sales of that magnitude by focusing on low-income players. Lotteries market games to society as a whole, just like any other business selling a product in a competitive marketplace. The result is that players come from across the income spectrum. A recent Virginia study found 55 percent of those who play lottery games at least once month have incomes of $55,000 or more. A third of those who play at least once a month have incomes of $85,000 or more. In Michigan, 43 percent of players have incomes of $50,000 or more and 75 percent have incomes of $25,000 or more. A national study (by Vision Critical) found 44 percent of lottery players have incomes of $55,000 or more and 77 percent have incomes of $25,000 or more.

Some lottery critics that want to “prove” otherwise often rely on “zip code studies.” That’s when you take a certain zip code, look at total lottery sales within that area, and then assume that everyone in it has the same income and refuses to play the lottery anywhere else. Of course, the reality is people don’t always buy their lottery tickets in the neighborhoods where they live. They purchase them on their way to or from work, while shopping or running other errands, or even at the airport. Zip code studies fail to take that into account. It’s like saying that gasoline purchases are made mostly by poor people, because there are few gas stations in wealthy neighborhoods. INSIGHTS September/October 2015 33 Myth #4: You get nothing for your lottery purchase if you don’t win a prize, and since there are relatively few winners, hardly anyone actually benefits from lottery.

All residents benefit financially from having a lottery in their state. Each state decides how to spend its lottery revenue and all revenue goes to such worthy causes as education, economic development, veterans, tourism, the environment, care of the elderly and much more. Without lotteries, states would have to pay for these programs with taxes. On average across the United States, for every $1 spent on traditional lottery tickets, about 27 cents goes to the beneficiaries lotteries support. A lot more than that, about 63 cents of the $1, goes back to players in the form of prizes! Not everyone wins a jackpot or a life-changing prize, of course, but millions of players win every day. Which brings us to the whole idea of why people play the lottery in the first place. Lotteries provide fun and exciting entertainment that lets players dream about what they would do if they won. In our stressful world, the ability to dream is well worth the price of a lottery ticket. 34 INSIGHTS September/October 2015 Myth #5: The lottery makes and keeps all the money.

As much as 96 percent of funds generated from traditional U.S. lottery games goes directly back into the economy through prizes, public beneficiaries and retailer commissions. While individual jurisdictions vary, across the industry lotteries return an average of 63 percent in prizes to players, 27 percent to public beneficiaries and six percent to retailers. The remainder supports lottery operations, providing direct and indirect employment and other benefits. Lottery proceeds fund different programs according to each jurisdiction’s guidelines and are dedicated to a variety of causes, including education, the environment, health care, capital construction projects, programs for seniors, cultural activities and more. According to NASPL, U.S. lotteries generated almost $21 billion for beneficiaries in fiscal 2014 alone, including additional revenue coming from lottery-operated casino-style games in some jurisdictions.

Myth #6: Compulsive gambling has grown because of lotteries.

To begin with, there’s little evidence linking lotteries and problem gambling. Problem gambling help lines throughout North America report very few callers who cite lotteries as the source of their problem. A University of Minnesota study of 944 gamblers in treatment found that less than one percent cited lottery as their preferred game. The National Survey on Gambling Behavior conducted by the University of Chicago’s National Opinion Research Center concluded that “it does not appear that the availability of a lottery has an impact on (problem gambling) prevalence rates.” A study of 2,274 U.S. adolescents found that “The forms of gambling that were most associated with gambling problems were card games, casino gambling, ‘other’ gambling on routine activities, and betting on games of skill such as basketball, pool, or golf.”

Moreover, there is also little evidence that compulsive gambling from any source is growing. A 2014 study from the Research Institute on Addictions at the State University of New York at Buffalo compared national surveys taken in 1999 and 2013 and concluded that “rates of pathological and problem gambling remained stable… This occurred even though there was a general expansion of legal gambling and liberalization of gambling laws in the US during this time.” And a study prepared for the Ontario Ministry of Health and Long Term Care reviewed 202 problem gambling prevalence surveys from around the world concluded “There has been a general worldwide downward trend in both gambling and problem gambling rates beginning in the late 1990s for North America…” INSIGHTS September/October 2015 35 Myth #7: If lottery sales are allowed on the internet, retailers will lose considerable sales.

Although new to the United States, online games are a staple in other countries, where they have increased public awareness and interest in lottery games as well as attracting new customers for all games. Offering games through digital channels can create new sales opportunities for retailers as well as lotteries. For example, online play “gift” cards that are available only at retailers. Or rewarding online players with free ticket coupons that must be redeemed at retailers. Providing an online games option to players is a proven success in other countries and holds great promise in the United States to broaden the industry’s customer base by attracting new – and younger – players to all lottery games. The public increasingly is turning to the internet for personal, business and entertainment uses. Adapting to the widespread use of that technology can position lotteries and retailers for ongoing success in the future.

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In many respects, online lottery sales provide a MORE responsible platform due to a key element that’s not available at retail – imposed limit setting. Available platforms provide daily, weekly and monthly deposit limits that address how much a player can put in their account for wagering. There’s no way we can track how much an individual spends at a retailer on a given day – but through the internet we have this ability, and can throttle down how much a person spends. This is in addition to other activities laid out in the National Council on Problem Gambling’s Internet Gambling Standards that include self-exclusion, time outs and informed decision making to name a few. Stringent age verification measures at registration – including checking numerous databases – combats underage gambling issues.

Myth #9: There is no assurance that lottery drawings are conducted fairly.

Given the cynical nature of today’s players, official lottery drawings are carefully watched and closely scrutinized. And they should be. Lotteries are a significant source of much-needed revenue for state budgets – generating millions of dollars to support important programs and services. Lottery games are also a popular form of entertainment that offers players the potential to win money – sometimes lots of money – quite literally, based on the luck of the draw.

Comprehensive and often tedious security measures and drawing procedures are standard across the industry and crucial to the success of any lottery. As a general rule, all state lotteries are subject to internal and independent audits to verify that their equipment and processes are providing random results. Equipment used for drawings is regularly tested and procedures are recorded on video in the presence of witnesses. In addition, the machines are securely stored, often in a locked vault, and accessed by a limited number of authorized personnel.

While the precise methods vary from state to state, all lotteries have multi-faceted checks and balances to ensure the accuracy, honesty and transparency of every drawing that is conducted. These measures are vital in maintaining player confidence and ensuring the public that the integrity of the lottery is reflected in each and every drawing. INSIGHTS September/October 2015 37 Myth #10: Big lottery winners are worse off than if they hadn’t won the lottery.

History shows that the vast majority of lottery winners make positive long-term decisions with their winnings to fulfill the real-world aspirations so many of us share: they invest for retirement, plan for their children’s or grandchildren’s education, buy or remodel their homes, contribute to charities, and invest in their communities. Lottery jackpots are no different in that regard than any other large source of income that a person may receive, from an inheritance to the proceeds from the sale of a business. Careful planning is required to ensure that the money is handled appropriately. Some lottery winners through the years have made poor choices with the money they received. And perhaps it’s just human nature that causes us to remember those examples rather than positive ones. Studies have demonstrated that it takes numerous positive impressions to balance out a single negative one. But when it comes to lottery winners, the facts generally reflect favorable outcomes for them following a big win. 38 INSIGHTS September/October 2015 Myth #11: Because state governments benefit from lottery proceeds, they can’t be trusted to regulate their industry.

We trust states to make their own tax policy – and many other decisions regarding their citizens – so why shouldn’t states be trusted to regulate their own lottery organizations? There is nothing to hide. In fact, lottery files are public record and open to scrutiny by the media and by the citizenry. Lottery board meetings and legislative hearings also are open to the public. And these state lottery proceedings are much more accessible than those of federal regulatory agencies. Thus, states are not hiding lottery information, and if you think they are, you can check it out for yourself. There is no reason not to trust the state’s regulation of lottery programs.

Myth #12: “I’ve won the lottery because I got an email or phone call that said so. All I have to do is pay a fee.”

This is a scam more than a myth but deserves mention here. Scams operated by people claiming to represent lotteries are just one of the ways that criminals today attempt to separate you from your hard-earned money. The scams almost always involve an offer of big winnings in return for a bit of your personal information – and more than a bit of your cash. Maybe you’ve gotten an email, letter or a phone call saying, “You’ve won the lottery!” And for a split second you wonder if it’s real. The first question you should ask yourself is: Did I buy a ticket? The only way to win a lottery prize is if you’ve purchased a ticket or entered a drawing.

Never believe someone who claims they can guarantee you a prize. Legitimate lotteries do not guarantee that you will win and do not require people to join prize pools to play.

Never pay processing fees, insurance or commissions to claim a lottery prize. Legitimate lotteries do not require winners to pay anything up front to receive their winnings.

Protect yourself by never giving out your personal information to strangers or sending money to someone who says you’ve won a prize. Remember, you really can’t have won if you didn’t play. WizAd_2015_NASPL_FINAL.pdf 1 6/10/15 12:52 PM

INSIGHTS September/October 2015 39

CMY

THE WIZARD OF OZ and all related characters and elements are trademarks of and © Turner Entertainment Co. Judy Garland as Dorothy from THE WIZARD OF OZ. (s15) www.scientiﬁcgames.com 40 INSIGHTS September/October 2015

Managing Games, Texas Style The host lottery for NASPL 2015, the Texas Lottery has been busy with a lot of moving parts in its games and operations.

By Patricia McQueen

You can’t argue with success. And the Texas Lottery has a recent track record of success with the largest portfolio of scratch games in the business and a still-growing collection of draw-based games. With another year of record sales – and more importantly, record profits to the state – under its belt in FY15, Texas is not about to sit on its laurels.

“We offer more new scratch games every year than any other lottery, across the widest variety of price points,” said Executive Director Gary Grief. “And we are currently applying this same approach on the draw games side. So to a certain extent, our overall approach has been to ensure that we have something for everyone across our product portfolio.” And everyone has responded – certainly players are finding their favorites among the offerings and supporting the lottery like never before. Sales have grown for seven straight years, reaching $4.5 billion for the year that just ended August 31. Scratch strategies Success has not always come easy, however. The Texas Lottery’s scratch game strategy was certainly influenced by events out of its control shortly before the turn of the century, when a legislative directive cut the prize payout significantly. Although payouts were restored after two years of subpar results, the lottery had to scramble to regain the confidence of players – and that meant offering a steady diet of new scratch games to bring them back. It hit a peak of about 110 game launches a few years ago, when officials decided to start scaling back. Gradually the numbers were reduced, and for the time being the lottery is settling in at about 90 games a year – “the sweet spot for us,” said Lottery Operations Director Michael Anger. “We actually went down a little further last year, but we really INSIGHTS September/October 2015 41

didn’t like the impact on our sales,” “The real challenge is how to he explained. “We think we’ve found design $1 and $2 games and make the right place at 90.” them appealing enough for people to In that mix is a wide variety of want to play them,” added Products games – seven price points from $1 and Drawings Manager Robert to $50 are regulars on the menu, Tirloni. So Texas and its partner IGT with $5 games being the best sellers, are looking at ways to bring down followed by $10 and $20 games. As the overall odds a little bit – after important as those price points are, all, if you assume those games the lottery won’t lose sight of the $1 are for introductory players, you and $2 players. “We feel very strongly want to provide them with winning that we need to protect the $1 and experiences. But rather than increase $2 price points, investing in quality the overall prize payout – which has products and design to make sure bottom line impacts – Texas’ efforts we have good games,” said Anger. “are really more focused on the Even as sales of those games have intricacies of game design and how declined, it’s still the introductory we move around prize money within level for new players. “If in Texas prize tables to create that value and as an industry we allow the proposition for the lower level price importance of those games to slip point player,” said Anger. “We can both in the minds of our retailers and create better overall odds than we also in our own minds with regard to typically have in the past, focus more the quality effort we put into those on the chatter prizes and maybe not products, we run the risk of closing use up so much of the prize structure the door to new players coming into with top prizes in the game.” our games.” In addition to examining the odds 42 INSIGHTS September/October 2015

“We want to give players something new and Texas Lottery Commission different, with quite a bit of value,” said Grief. “We need to show players that they are getting Total Sales Net Revenue to State a value proposition.” Last year, the lottery launched its first holiday game book and its first 8x12 Super Ticket, both of which were FY11 $3,811,270,135 $1,023,782,895 extremely successful. These will be repeated FY12 4,190,815,913 1,155,523,040 during the current year, but with new play features added. FY13 4,376,286,456 1,214,101,786 Game suites are also something relatively FY14 4,384,597,063 1,220,722,920 new in Texas – a concept already proven popular FY15 4,529,700,425 1,242,701,623 in other jurisdictions. For example, the lottery’s $2 Weekly Grand, a staple that has been in the market for 20 years, was given a successful line Note: FY15 figures are preliminary extension with new price points from $1 to $10. Spotlight games are another area that has had a tremendous positive sales impact for Texas. With very large print runs – 20 million or more for a $10 game – these $10 and $20 and prize structures of the $1 and $2 games, Texas is trying to introduce games games feature lots of big top prizes. “Callouts that stand out from the crowd and that might appeal to younger adult audiences on the face of these tickets bring attention to – for example, Emoji Match is a new $1 game that has the emojis that everybody the substantial prize structure and strong game uses while texting. And $1 and $2 games using premium printing processes are attributes compared to other games at the same also in the works, in an effort to make them jump out of the dispensers. The price point,” said Anger. lottery’s first $1 game using Pollard’s Scratch FX will come out later this year. “We And finally, licensed products are also a want to see if we can have an impact by trying these different things to increase regular part of the product mix, especially when sales at the lower price points,” said Tirloni. combined with experiential prizes players can’t Across all its games, Texas’ prize payouts seem on par with most in the get elsewhere – such as exclusive opportunities industry, perhaps even a bit low at some price points. But with sales growing, with the Dallas Cowboys, the Houston Texans there doesn’t seem to be the need to increase payouts – especially as some and Circuit of the Americas Formula 1 racing. of the new concepts, at the same payout rates as older products, have sold “We think they are an important part of our tremendously well. “So we don’t really feel that increasing prize payout is portfolio with regard to bringing in new players,” the answer,” Tirloni said. “I think there are other creative things we can do by said Grief, because they bring in players who adjusting top prizes and moving money around within the prize structure,” as is have an affinity for a brand but who may not be already happening with the $1 and $2 games. regular lottery players. “I think people buy the tickets with the top prizes in mind, but they continue to play based on their experience of winning, so we are always trying to find the right balance,” added Anger. “You have to have the chatter prizes that give people the experience of winning something of substance – maybe it’s $100 on Drawing a $20 game. Something substantial they can do something with – maybe dinner and a movie.” In addition to the focus on the $1 and $2 games, Texas has been introducing on variety new or innovative games that have never been brought to market in the state. Although scratch tickets currently account for about 77 percent of the lottery’s sales, draw games are a crucial part of its portfolio. Certainly they provide more relative profitability due to their lower prize payout percentage, and they also offer additional variety for players. With the launch of the new Texas Triple Chance in late September, Texas now has nine terminal- based games: Pick 3, Daily 4, Cash Five, Lotto Texas, Texas Two Step, All or Nothing, Texas Triple Chance and of course Powerball and Mega Millions. The strategy is borrowed from the scratch side – to have various categories that appeal to the broadest group of consumers. “As we’ve brought new draw games to market, we have looked for products that we felt offered a unique twist and a different value proposition for the consumer than those of our existing INSIGHTS September/October 2015 43

games,” said Anger. And the lottery has given each game its own identity – an “elevator pitch,” explained Tirloni, which the sales staff can provide retailers with to help sell specific games to players. That identity, that value proposition, helps put a face on the games which are otherwise “invisible” – they live inside a terminal instead of in a flashy counter display. Texas Triple Chance, the lottery’s newest game, offers a new twist for Texas because players get three sets of seven numbers for $2, yet the lottery draws 10 numbers (out of 55). So not only do players get three chances on a single play, there’s a pool of more numbers they can match. “We think that will be an appealing hook,” said Tirloni. Players can choose the first set of seven, but the second the third sets are always quick picks. The top prize is $100,000, and the game games. With a working title of Lone Star Lineup, for $5 players will is drawn six days a week. get $6 worth of game plays – one ticket each for Pick 3, Daily 4, Cash The successful All or Nothing offers something really unique 5, All or Nothing and Texas Triple Chance. It’s part of a concerted – it goes to the heart of complaints players always have that they effort to support the daily games, letting players sample games that never match any numbers. Its hourglass matrix also keeps players perhaps they don’t normally play. interested longer – as you watch the drawing or check your numbers, Texas has also experimented a bit with prize payouts on the it’s no longer over after the first three or four numbers are drawn. draw games – there’s always been an industry standard of about You can win big if you get through all 12 numbers drawn without a 50 percent. “That’s nice profitability, but you have a product that single match. “This game keeps their attention for a little bit longer, doesn’t have significant visibility at retail, it’s hard to message about and we think that’s part of the excitement and anticipation of the and has no instant gratification, so it’s got a lot of product attributes game,” said Anger. that don’t compare favorably to scratch,” said Anger. All or Nothing Next summer, Texas will introduce package play for its daily debuted with a 56 percent payout and Triple Chance is around 54

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percent. “We are inching up that payout percentage on some of can’t be standardized across the industry, Anger noted, but there are our in-state draw games to experiment with creating better prize certainly things that can be standardized that “will make lottery as valuations and win frequency for our players, while still maintaining a whole more appealing to these big box retailers, and help make it sound profitability.” make sense within their business models.” That said, Texas is excited about its new venture with Walmart Neighborhood Markets – lottery self-service machines are now in about 100 locations throughout Texas, with more stores continuing Retailing inroads to open. “We continue to work with Walmart to grow sales and awareness that lottery is now available at these locations, which the While games are at the core of any lottery, other parts of the consumer is not used to seeing,” said Anger. In addition to developing business also help drive sales – especially the retailer. Anger credits the working relationship with Walmart, many of the Neighborhood a retailer cash incentive program for helping to drive record sales Markets are in cities and towns where self-service lottery machines in recent years. The performance-based program sets an individual are new, so it’s a learning curve all around. He expects that sales will sales goal for each of the lottery’s 17,000 retailers, and if those goals continue to grow over time, just as they did years ago with major are met or exceeded, the retailer gets a cash payment. Meeting their grocery chain H.E.B., which has evolved into one of the lottery’s top sales goal in a program also gets them entries into a drawing where retailers. they can win up to a $50,000 prize. “We are just really excited about the opportunity to work with In determining what kind of incentive program to add after Walmart, and hopefully build our relationship while refining our receiving legislative authority, Texas looked at what was out there operating procedures with them so that selling Texas Lottery products in the lottery industry – cashing bonuses, for example, and other is a success story for Walmart,” added Tirloni. types of programs. But in evaluating the packaged goods industry – products that often compete with lottery products for a retailer’s attention – there is almost always an incentive program based on same-store sales performance. So that’s the route Texas took. “We More for the consumer are really focused on driving enhanced sales performance at retail and rewarding that performance,” said Grief. So as Texas continues to introduce innovations in scratch games Texas is also looking forward to making progress with some of and draw games with unique value propositions, while moving the big box chains, and is an enthusiastic supporter of the current forward with critical retail developments, there’s one more new NASPL effort to standardize settlement terms to attract stores such development coming on the direct-to-consumer side. Late next as Walmart, Target, Lowes, Home Depot, Costco – all the big players spring, Texas will launch its first mobile app, one designed with many that could bring in new opportunities for lotteries around the country. player convenience features that will make it even easier for players Every state is different, and there are some things that probably to choose their numbers, check their tickets, find retailers and locate INSIGHTS September/October 2015 45

specific scratch games at retail. Players will also be able to enter their non-winning tickets into promotional second chance drawings through the app. For draw games, choosing and saving their favorite numbers can be as simple or complex as the player wants, from one game to multiple games. Once the numbers are saved, the app generates a QR code that can be scanned at retail to produce a ticket(s) in the store. It all goes back to the basic philosophy of offering something for everyone. And in Texas, more is more. 46 INSIGHTS September/October 2015

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New Hampshire Lottery Best New Draw Game Commission I Heart Bacon Connecticut Lottery Corporation GYK Antler Lucky Links with 2XPOWER SMZ New Jersey Lottery Cash Extravaganza Connecticut Lottery Corporation Ferrara & Company on behalf of 16 Lucky for Life Participating Lotteries Western Canada Lottery Lucky For Life, The Game Corporation of a Lifetime $30 Cash Spectacular SMZ WCLC Georgia Lottery Corporation Wisconsin Lottery Jumbo Bucks Lotto SKEE-BALL BBDO ATLANTA HYC Western Canada Lottery Corporation WESTERN 649 WCLC 60 INSIGHTS September/October 2015 NASPL 2015 Awards Judges

Sean Thompson Lori Martin Partner & Creative Director Director of Development lookthinkmake Paramount and Stateside Theatres

From drawing and painting to Lori Martin is a life-long Texan, born strategizing and storytelling, Sean in Amarillo. Since coming to Austin has always been a maker, and at in 1980 and graduating from the lookthinkmake, he is the maker in University of Texas with a degree in chief. Sean attended Colgate University, Journalism, Austin has been her home. graduating with a BA in English Her career has included time as a small Literature. He then earned his MA in business owner and as an administrator Advertising at The University of Texas at for an Austin law firm. After leaving Austin in 1998, where he concentrated the law firm, she began a new career on advertising creativity. Upon earning in fundraising and development for his graduate degree, Sean worked at nonprofits, specifically for organizations Leo Burnett Worldwide in Chicago, with a preservation focus. She where he devised television, print, and branding campaigns for previously served as the Development Director of Preservation McDonald’s, General Motors, Delta Airlines, USPS, Kellogg’s and Texas and the Antiques Show Director for the Heritage Society of more. Sean returned to Austin to serve as the Creative Director Austin, now Preservation Austin. Currently, Martin is the Director for NetSpend and, hooked on the thrill of startup culture, of Development for the Paramount and Stateside Theatres, started a habit of building brands from the ground up. From this, focusing efforts on cultivating and maintaining the Theatres’ lookthinkmake was born. Formerly, Sean was a 15-year veteran major donors as well as the preservation of the theatre. She is of the UT-Austin Advertising faculty. Most recently he served as also a former board member of Preservation Texas and have a Senior Lecturer and leader of internationally-recognized Texas volunteered for Meals on Wheels for over 20 years. Creative Program, where he was recognized with a 2014 UT System’s Regents’ Outstanding Teaching Award. Martin enjoys traveling and entertaining and her favorite pastime is puttering around her 1950s ranch-style home in central Austin, followed by shopping as a close second.

April Terrazas Edd Patton Educator, Writer and Entrepreneur Chief Graphic Designer of Web Content Texas State Controller’s Office April Chloe Terrazas is an educator, writer and entrepreneur. She graduated Edd Patton is a web graphic designer, from The University of Texas at Austin, illustrator, and artist. He is a native of College of Natural Sciences with a BS Austin, and lived in San Francisco from specializing in Human Biology and is a 1997-2001 where he did freelance Life Member of the Texas Exes Alumni illustration and worked in interactive Association. For 11 years, she has been advertising design at Foote, Cone, and a teacher and tutor for all ages from Belding on accounts such as Taco Bell, pre-kindergarten through college. She Compaq, and Major League Baseball. is the creator of The Complementary He has also taught at the college Method—a classroom platform for level from 1992 until today at Austin empowerment, kindness and anti- Community College and the Academy bullying. April also owns a publishing company, Crazy Brainz, of Art University in San Francisco. He where she is a math, science and family author and illustrator. was self-employed as an illustrator from graduating the University She incorporates art and color with math and science, bringing of Texas-Austin in 1982 until joining FCB in San Francisco in a new perspective to the field and making it enjoyable for all 1998. His illustrations were used in national advertising (Sprint, ages. Her books are available at Amazon, Barnes & Noble and Pepsi, Burger King, etc.) and magazines. He now works as chief the iBooks Store online. She tours the United States presenting graphic designer of web content for the Texas state comptroller’s science discussions to elementary schools and along the way office, where he has been since 2001. He also does pen and donates books to schools and families in need. Additionally, she ink drawings, and is an advocate of xeriscaping in the desert works as a family, portrait and pet photographer in Austin, Texas. southwest and especially central Texas. INSIGHTS September/October 2015 61

Andrew Leeper Ami Smith Creative Coordinator Marketing Planning Director Texas Lottery Commission Texas Lottery Commission

Andrew Leeper is Creative Ami Smith is the 360◦ Marketing Planning Coordinator at the Texas Coordinator at the Texas Lottery Commission. Lottery in Austin, Texas. As a member of the Products & Drawings He received his Bachelor’s department she works closely with product degree in Advertising from development, advertising, promotions, media the University of Texas, with a relations and IGT Texas staff. She is responsible focus on creative marketing. for planning, tracking and implementing His work has been recognized various marketing activities to ensure all efforts by the American Advertising are cohesive, effective and successful. Federation and American Marketing Association. As a Since joining the Texas Lottery in 2006 she champion of big ideas, Andrew has worked as a promotions specialist in the has worked on high profile advertising and promotions department as well as an accounts examiner brands such as Texas Tourism, Seagate and Dell. He is in the Charitable Bingo Operations Division. proud to be a part of the Texas Lottery marketing team since 2006. Ami is a graduate from Texas A&M University where she received a B.A. in Communications. She resides in Austin, Texas with her miniature schnauzer, Max.

450,000 1 BILLION points of global 20 years consumers distribution of innovation

$28 BILLION 186 annual transaction 500+ global patents volume brand partners

incomm.com 62 INSIGHTS September/October 2015 NASPL 2015 Responsible Gambling Judges

Keith S. Whyte Jeffrey Derevensky, PhD Executive Director Professor and Chair/Director of Clinical Training in School/Applied National Council on Problem Gambling Child Psychology, Department of Educational and Counselling Psychology; and Professor, Department of Psychiatry Keith S. Whyte became the Executive McGill University Director of the National Council on Problem Gambling (NCPG) in October Jeffrey L. Derevensky, PhD, is Professor 1998. NCPG is the national advocate and Chair as well as Director of for programs and services to assist Clinical Training in School/Applied problem gamblers and their families. Child Psychology, Department NCPG was founded in 1972 and is the of Educational and Counselling oldest and most objective organization Psychology; and Professor, Department on gambling issues. of Psychiatry at McGill University. He has published widely in the fields of Previously, Mr. Whyte served as child development, developmental Director of Research for the American psychopathology, gambling studies Gaming Association where he was responsible for research and education and is on the editorial and public policy issues, including problem gambling. His prior board of numerous journals. Since experience includes the American Bar Association’s Section 1992 he has developed a comprehensive research program of Individual Rights and Responsibilities where he dealt with investigating many facets of gambling, is actively involved in policy issues relating to civil rights, human rights, healthcare, treating young people with severe gambling problems, and has and immigration law. He began his career working on healthcare been a consultant to gaming corporations and governments policy in the office of the Assistant Secretary for Planning and throughout the world. He is the author of over 160 published Evaluation at the U.S. Department of Health and Human Services. refereed peer-reviewed journal articles, 60 book chapters, and 3 Keith graduated from Hampden-Sydney College with a Bachelor books as well as being the Director of the McGill University Youth of Arts in History and a Certificate in International Relations. He Gambling Research and Treatment Clinic and the International also studied at Leiden University, the Netherlands. Centre for Youth Gambling Problems and High-Risk Behaviors. Dr. Derevensky has been the recipient of numerous awards, is considered an international expert in the field of gambling Maureen Greeley studies and has testified before legislative committees in North Executive Director America, Europe, Asia and Australasia. Evergreen Council on Problem Gambling and President, NCPG

Maureen has worked with and for the Dr. Jon Kelly Council on Problem Gambling since 1998. CEO In her role as Communications Director Responsible Gambling Council for the Washington Lottery for six years, Maureen was that agency’s Problem Dr. Jon Kelly joined the Responsible Gambling Program Manager and served Gambling Council as CEO in January as a charter member of the Council’s 1998. Jon has invested many years Gaming Industry Work Group. Maureen in public services and the non-profit has served as Executive Director of the sector. In the past, Jon has held several Evergreen Council on Problem Gambling Policy Advisor positions in the Ontario since November 2006, helping to broaden government, including Director of the Council’s reach and strengthen its Services for Disabled Persons and the programs and services. Maureen holds a Bachelor of Science degree first Director of the Ontario’s Provincial in Communications/Journalism from the University of Kansas, with Anti-Drug Secretariat (1989) – an minors in Psychology and Political Science, and has done graduate organization established to co-ordinate work in Psychology, Sociology, and Communications at San Diego Ontario’s drug and alcohol prevention State University. She recently completed her second term as strategy. Jon is a graduate of the University of Western Ontario President of the National Council on Problem Gambling, where and holds a doctorate from the University of Edinburgh. He she has previously served as Vice-President, Secretary, Chair of the has been invited to present on responsible gambling issues at Membership and communications committees, and Co-Chair of the conferences and seminars around the world. In 2012, Jon was Standards, Policies, and Regulations Interest Group (SPRIG). In 2005, appointed to the Advisory Panel of Gambling Safeguards for the she was appointed by the Governor as a Washington State Arts Government of Singapore. Commissioner. INSIGHTS September/October 2015 63

Marlene Warner Executive Director Massachusetts Council on Compulsive Gambling

Marlene D. Warner is the Executive Director of the Massachusetts Council on Compulsive Gambling and is currently serving as Vice President of the NCPG Board of Directors.

She has been with the Massachusetts Council since 2001, serving first as Program Director and becoming Executive Director in 2011. During that time Ms. Warner has led the Council to achieve many milestones including: offering both online and regional training opportunities for clinicians, working with veterans and corrections communities to build the capacity of professionals to understand the impact of problem gambling, and developing programming and services to serve ethnic and linguistic minority populations experiencing problems with the disorder.

Also under her leadership, the Council successfully secured grant funding and developed curriculum and materials to support financial education programs, managed the development and promotion of the state’s first certificate for problem gambling clinicians, reinitiated the Mass. Partnership for Responsible Gambling (MPRG) with key industry and vendor partners, planned and facilitated Your First Step to Change recovery weekend for people in crisis, and established a workforce development program to assist people in recovery to be retrained for a new career. Ms. Warner received her M.A. from The George Washington University in Washington DC and B.A. from Gettysburg College in Gettysburg, Pennsylvania. Prior to joining the Mass. Council, she worked for The National Breast Cancer Coalition in Washington, DC.

www.carmanahsigns.com 64 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

Scientific Games Corporation

6650 S. El Camino Road Las Vegas, NV 89118 Phone (702) 897-7150 Fax (702) 897-2284 www.scientificgames.com

Gavin Isaacs, President and Chief Executive Officer Derik Mooberry, Group Chief Executive of Gaming Jim Kennedy, Group Chief Executive of Lottery Barry Cottle, Group Chief Executive of Interactive David Smail, Chief Legal Officer Scott Schweinfurth, Chief Financial Officer Steve Beason, Enterprise Chief Technology Officer Larry Potts, Chief Compliance Officer Gary Melampy, Chief Human Resources Officer Dan Savage, Chief Administrative Officer Mike Conforti, President, Global Strategic Accounts & Corporate Development Steve Saferin, President, Properties

Year of inception: 1973

Contact: Therese Minella, Director, Lottery Communications (770) 825-4219, [email protected]

As a global leader in the gaming and lottery industries, Scientific Games’ mission is to empower our customers by creating the world’s best gaming and lottery experiences. Our games, systems, content, services, gaming machines and interactive products are designed to reach players wherever they are, whenever they want to play, and in any channel they choose: retail, casino, or digital.

For more than 83 years through our acquired companies, Scientific Games has delivered what customers and players value most: trusted security, creative content and innovative technology. Beginning with the world’s first slot machine, the “Bally Baby” in 1936, to our development of the breakthrough technology that launched the world’s very first secure instant lottery game in 1973, we have been a driving force behind the success of customers across the globe.

Headquartered in Las Vegas, Nevada, with nearly 8,500 employees worldwide, we serve our customers from manufacturing and operational facilities on six continents. Scientific Games offers customers a fully integrated portfolio of end-to-end technology, platforms, content and services for the robust gaming and lottery industries.

Success is a reflection of talent, and Scientific Games’ history of success has been driven by our highly experienced professionals. Our lottery and gaming products have been developed by some of the top game designers, mathematicians, marketing research analysts and product managers in the world. We have been an industry leader in developing and using market research and analytics to gain a deep understanding of player demand and preferences.

As a result, we continue to generate new ideas and innovative gaming solutions that provide players with exciting choices and experiences. We are also committed to working closely with our customers, governments, regulators and industry associations to support player protection and responsible gaming. INSIGHTS September/October 2015 65 NASPL ASSOCIATE MEMBER PROFILES

INTRALOT USA

11360 Technology Circle Duluth, GA 30097 Phone (866) INTRALOT (468-7256), (678) 473-7200 Fax (770) 295-2590 www.intralot.com

Tom Little, President and Chief Executive Officer Chris Tzoumaras, Senior Vice President and Chief Operating Officer John Pittman, Vice President Marketing Lynn Becker, Vice President Business Development Terry Patterson, Vice President Operations Toula Argentis, Vice President and Chief Financial Officer Byron Boothe, Vice President Government Relations Jay Lapine, Vice President and General Counsel George Mermigas, Vice President Software Development

Year of inception: United States 2002; Greece (Parent Company) 1992

Contact: John Pittman, (678) 473-7218, [email protected]

INTRALOT is one of the leading gaming companies worldwide with presence in 57 regulated jurisdictions on six continents. INTRALOT Group counts approximately 5,400 employees worldwide and its revenues in 2014 exceeded €1.85billion. In the U.S., INTRALOT has 13 contracts and has done the last two start-ups (Arkansas and Wyoming).

Within 23 years of operation the company has achieved an impressive global expansion and is a leading innovator of the industry, bringing state-of-the-art technology and operational expertise to the gaming sector. Being the leading supplier of integrated gaming and transaction processing systems, innovative game content, sports betting management and interactive gaming services to state-licensed gaming organizations worldwide, INTRALOT covers the full spectrum of gaming products and services.

Our values Committed to the global principles of innovation, excellence, integrity, responsible gaming and shareholder value creation, INTRALOT aims to retain its leading position in the gaming industry and consistently offer increased value to its customers, shareholders and employees.

Gaming industry contributor INTRALOT contributes decisively to the future developments of the industry. It actively engages the global gaming community being a member of the major lottery and gaming associations, such as NASPL (North American Association of State and Provincial Lotteries), WLA (World Lottery Association), EL (European Lotteries and Toto Association), CIBELAE (the Hispanic Association that covers South America and the Iberian Peninsula), APLA (Asia Pacific Lottery Association) and GSA (Gaming Standards Association), and a gold member of AGEM (Association of Gaming Equipment Manufacturers).

Certifications INTRALOT is the first international vendor in the gaming sector that has been certified according to the World Lottery Association (WLA) Security Control Standard and the highest standards of the industry.

Moving forward In 2015 INTRALOT entered a new era presenting the new strategy of the Group, which focuses on three main pillars. The first is to further expand and strengthen the company’s product offering. The second pillar is the company’s transition from technology provider (B2B) to the B2C operations. This constitutes a shift from the traditional B2B business to the end consumer and B2C operations, a field that the Group systematically has developed in recent years. Last but not least, the third major pillar is the focus on the company’s operations on six different continents. 66 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

International Game Technology PLC (IGT)

Corporate headquarters: 66 Seymour Street London, U.K. WH1 5BT Phone +44 02075353200

Providence operating headquarters: 10 Memorial Boulevard Providence, RI 02903 Phone (401) 392-1000; Media line (401) 392-7452 Fax (401) 392-1234 www.igt.com

Marco Sala, Chief Executive Officer, International Game Technology PLC Michael Chambrello, Chief Executive Officer, North America Lottery Renato Ascoli, Chief Executive Officer, North America Gaming/Interactive (DoubleDown Casino) Walter Bugno, Chief Executive Officer, International Fabio Cairoli, Chief Executive Officer, Italy

Contact: Reach our employees by email at [email protected]

IGT is the global leader in lottery and gaming. We enable players to experience their favorite games across all channels and regulated segments, from lotteries and gaming machines to interactive and social gaming. Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships with governments and regulators in 100 countries around the world, and create value by adhering to the highest standards of service, integrity and responsibility. IGT has more than 13,000 employees and $6 billion in revenues. The Company is listed on the New York Stock Exchange under the ticker symbol IGT.

Lottery – designs, assembles, installs, operates and maintains draw-based lottery systems, lottery terminals and communications networks for governments and licensed operators worldwide. IGT is the industry’s leading private lottery manager, with the most extensive and proven operator capabilities. The Company operates the world’s largest lottery in Italy, and manages other operator contracts in the United States and Latin America/Caribbean. Additionally, IGT provides printed products and related services, self-service lottery product vending machines, game design/content, marketing services/best practices, field service for retailers, responsible gaming and promotional and interactive lottery capabilities.

Gaming – designs, manufactures, and distributes top-performing games, slot machines, central systems, video lottery terminals (VLTs) and associated software to gaming markets around the world. IGT offers a complete range of end-to-end gaming products for diverse gaming segments, including distributed government-sponsored markets, commercial casino markets and Amusement With Prize (AWP) markets.

Interactive – offers comprehensive solutions for the interactive market, providing a full suite of award-winning products and services for Internet gaming/social gaming. IGT designs, manufactures and distributes Internet poker, bingo, table games, slots and gaming management systems (GMSs). Additionally, IGT provides player services including marketing, portal, player acquisition, CRM, VIP, player support, payment solutions, fraud and collusion prevention, responsible gaming, game management, migration and trading services.

Betting – offers solutions for the development of real-time operations and computerized systems for the sports betting market. IGT offers trading services, fully managed partnerships or “software only” technical solutions, to create a complete one-stop solution or to integrate new functionality to existing operations. IGT provides secure retail betting solutions, point-of-sale display systems, call center facilities, Internet betting technology and fixed odds or pool betting options. INSIGHTS September/October 2015 67 NASPL ASSOCIATE MEMBER PROFILES

Pollard Banknote Limited

1499 Buffalo Place Winnipeg, MB R3T 1L7 Canada Phone (204) 474-2323 www.pollardbanknote.com

Doug Pollard, Co-Chief Executive Officer John Pollard, Co-Chief Executive Officer

Year of inception: 1905

Contact: Jennifer Westbury, Executive Vice President, Sales & Customer Development, (204) 474-2323 ext. 217, [email protected]

Primary products and services: • Instant scratch tickets • Licensed games and promotional support • Product category management • Integrated marketing solutions • Market research services • Retail development services • Lottery management services • Interactive instant solutions • iLottery platform and game portfolio

For over 30 years, Pollard Banknote has been a trusted and reliable full-service instant ticket printing and related services partner. The company currently serves over 50 clients worldwide, including 35 NASPL members, supplying high quality instant ticket products, licensed games, and strategic marketing and management services for both traditional instant games and the emerging interactive space. The company’s successes are grounded in its unrivaled ability to form strong partnerships with its customers, focusing on the mutual goal of maximizing player engagement, sales, and proceeds for good causes.

Pollard Banknote is a proven innovator and has brought some of the most important, revenue-generating product innovations to the lottery industry. The company continues this trend by constantly introducing fresh and innovative print features, as well as a number of exciting new ‘Space Between’ products and services that leverage emerging technologies into viable avenues for driving instant ticket revenues at retail, effectively bridging bricks-and-mortar products with the Internet.

Recently, Pollard Banknote created a strategic joint venture with NeoGames, a leading global Internet lottery provider with strong expertise in online and mobile products, to form NeoPollard Interactive. The joint venture leverages the strengths of both companies to develop, implement, operate, and maintain innovative iLottery solutions for regulated lottery clients in response to an ever- evolving marketplace.

Lottery customers: Pollard Banknote currently has 35 lottery customers in North America and more than 20 lottery customers in other jurisdictions worldwide. 68 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

Alchemy3, LLC Camelot Global

860 Warsaw Rd. Suite 200 Tolpits Lane Roswell, GA 30075 Watford WD18 9RN Phone (770) 442-6993 United Kingdom Fax (678) 389-8514 Phone +44 1923 425 000 www.alchemy3.com www.camelotglobal.com

Paul Guziel, Chief Executive Officer Nigel Railton, Chief Executive Officer Jeffrey Schweig, President Nikos Kryvossidis, Chief Technology Officer Duncan Malyon, Senior Vice President, North America Year of inception: 2007 Richard Bateson, Senior Vice President Sales & Marketing Gareth Gardner, Vice President Finance Contact: Matt Osgood, Vice President of Games & Marketing Jeffrey Schweig, (770) 442-6993, [email protected] Steve Davidson, Vice President of Strategy & Insight

Primary products and services: Year of inception:2008 • Strategic planning and execution • Integrated marketing programs Contact: Laura Pearson, Head of Global Corporate Affairs, • Branded games + 44 (0) 2076 325 716 / + 44 (0) 7968 939 340, • Mobile applications [email protected] • Collect ‘N Win promotions • Loyalty programs Camelot Global is a leading technology and professional services • Web/drawing services provider to lotteries around the world. We are owned by the Ontario Teachers’ Pension Plan (OTPP), which is also the owner Founded in Alpharetta, Ga., in 2007 by lottery industry of Camelot UK Lotteries Limited (the operator of the UK National veterans, Alchemy3 has quickly become a leader in lottery Lottery) and majority shareholder in Premier Lotteries Ireland, the strategic planning. The company creates “smart gaming operator of the Irish National Lottery. Our mission is to provide solutions” that often times merge licensed consumer brands proven and pioneering solutions for responsible lottery growth. and lottery games. Alchemy3 represents a select group We do this through three distinct propositions: of brands including The Home Depot, Honda, Toyota, CBS Consumer Products, Bass Pro Shops and Royal Caribbean to 1. Industry-leading lottery technology, content and managed name a few. Alchemy3 has achieved its market position by service solutions. Our four products and services are: putting clients’ needs first – providing them with “boutique” type attention. We execute programs with the highest level of • Camelot iLottery platform – a modern open robust platform integrity, honesty and thoughtfulness. • Interactive instant win games content • Fully-managed service Lottery customers: • In-lane retail solutions Alchemy3 provides marketing services to all North American state and provincial lotteries. 2. Strategic consulting and support. Camelot Global advises lotteries and lottery owners on the key issues facing their organizations. We have worked with the world’s leading lotteries on critical decisions around game, channel and technology strategy. Camelot Global also supports large and complex technology programs such as vendor transitions and mass retail roll-out. In addition to advising lotteries on a short-term basis, Camelot Global also partners with client lotteries on a long-term basis to support the delivery of their chosen strategies.

3. Strategic Investment. Camelot Global works in partnership with its shareholder, OTPP, to identify and support the management of strategic investments within the lottery sector. INSIGHTS September/October 2015 69 NASPL ASSOCIATE MEMBER PROFILES

Diamond Game/INNOVA Jumbo Interactive Ltd.

9340 Penfield Ave. Level 1, 601 Coronation Drive Chatsworth, CA 91311 Toowong, Queensland 4066 Phone (818) 727-1690 Australia Fax (818) 727-1692 Phone +61 7 3831 3705 www.diamondgame.com www.jumbointeractive.com

Richard Weil, Chairman and Chief Executive Officer Mike Veverka, Chief Executive Officer and Director/Founder Stephen Koo, Chief Financial Officer Jim Breslo, President Year of inception: 1999 Bill Breslo, Vice President of Sales and Marketing Bryan Greene, Vice President of Technology and Operations Contact: Brian Roberts, President North America, Rob Siemasko, Vice President of Product Management (760) 521-2929, [email protected]

Year of inception: 1994 Primary products and services: • Internet and mobile lottery e-retailer sales solutions Contact: Bill Breslo, (818) 727-1690 x203, bbreslo@ • Internet and mobile lottery e-marketing diamondgame.com • Interactive gaming solutions • Lottery loyalty programs Primary products and services • Subscription program management • ITVMs • Turnkey solutions for digital sales channels • Lottery systems Jumbo Interactive Ltd. is a publicly listed company trading on Diamond Game develops new and innovative products to help the highly regulated Australian Stock Exchange (ASX:JIN). Jumbo lotteries expand their retailer base and increase revenues. is an innovative and successful Internet lottery retail business. Most notable is the LT-3 Suite of Products – modernized We partner with World Lottery Association members and are ITVMs with animated video displays that enhance the player dedicated to growing their online presence and driving sales experience of instant tickets. The LT-3 is ideal for non- through digital channels. Jumbo follows the traditional retailer/ traditional stay-and-play environments, and can be deployed agency model common to virtually all lotteries and applies this in a variety of configurations based on unique lottery needs. model to the modern environment of Internet and mobile. Employing the right combination of assets, skills, experience and Lottery customers: technology, Jumbo has proven over the past decade its ability to Maryland, Michigan, Missouri, Ontario Lottery & Gaming grow new markets in the digital channel for its lottery partners. Corporation, Loto-Québec We own key Internet lottery properties – akin to owning well- located traditional storefronts – designed to appear wherever lottery players are searching on the Internet.

Jumbo Interactive has been promoting and selling lottery tickets via its flagship web-site, www.ozlotteries.com, for over 15 years and mobile for the past six years in the heavily regulated Australian market. More recently Jumbo launched its German web-site, www.jumbolotto.de, that provides digital sales channels for all 16 state lotteries in Germany in an equally regulated market. Jumbo has all the credentials and capabilities to enable digital sales channels to market and promote a lottery’s game portfolio that is budget neutral to the lottery. Jumbo provides its services as a lottery retailer under similar arrangements and the same commission as the traditional retailers. Through its e-Retailer program Jumbo partners with the traditional brick and mortar retailers to broaden the lottery’s awareness, reach and convenience for players – a successful and profitable arrangement all stakeholders. 70 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

Linq3 Technologies, LLC LottoInteractive Inc.

One Buckhead Plaza 41 Marietta St. 3060 Peachtree Road, NW, Suite 1500 Atlanta, GA 30301 Atlanta, GA 30305 Phone (404) 680-6047 Phone (678) 942-1950 www.lottointeractive.com www.Linq3.com Brian Ward, Chief Executive Officer Daniel Cage, Chief Executive Officer Kurt Freedlund, President Tricia Bertero, Chief Operating Officer Year of inception: 2007 Year of inception:2013 Contact: Tom Shaheen, Executive Vice-President and Chief Policy Officer Contacts: (646) 837-7086, (919) 337-7620 mobile, [email protected] Brian Ward, (310) 985-3385, [email protected] Primary products and services: Kurt Freedlund, (404) 680-6047, Secure technology platforms to enable sales of lottery games [email protected] through ATMs, fuel pumps, taxicabs and other unmanned point of sale by aggregating payments networks and secure Primary products and services: integration with lottery systems. • The highest-rated interactive lottery games for web-based and mobile platforms, incorporating advanced game mechanics, Linq3 is a technology solutions provider focused on leveraging graphics, access and replay-ability with innovative, multi- existing terminal footprints to provide cost efficient avenues tiered reward systems. for lottery distribution. With Linq3’s aggregated solution • Platform integration technology for end-to-end online game across the payments networks, lotteries and their operators deployments in conjunction with existing systems or as stand- can harness these new outlets to maximize sales. Linq3 is alone installations. headquartered in Atlanta, Ga., with offices in New York City and Long Beach, Calif. SAS70 datacenters and technology LottoInteractive is focused on making lottery and iGaming fun, locations are located in Irvine, Calif., and Suwannee, Ga. Linq3 interactive and mobile, by creating compelling entertainment is a PCI Tier One rated development and processing firm. that appeals to a broad spectrum of consumers. LottoInteractive The three-year development cycle has yielded systems and connects demand for high quality mobile games with the thrill architecture that represent new possibilities for secure lottery of winning tangible prizes across devices worldwide. In turn, transactions. Linq3’s focus centers on combining innovation LottoInteractive creates value for governments by ensuring that and competence while fostering a culture of integrity and the good causes funded by lotteries will be adequately supported professionalism. in the future via optimization of digital channels.

Lottery customers: We have an unparalleled track record and understanding of Missouri, California, North Carolina and Pennsylvania consumer engagement and monetization via 510 game launches on 32 platforms, and more than 300 Game Of The Year awards. INSIGHTS September/October 2015 71 NASPL ASSOCIATE MEMBER PROFILES

NeoPollard Interactive LLC Novomatic Lottery Solutions GmbH

920 N. Fairview Avenue Wiener Strasse 158 Lansing, MI 48912 2352 Gumpoldskirchen www.neopollard.com Austria Phone +43 2252606-0 Doug Pollard, Co-Chief Executive Officer www.novomaticls.com Ilan Rosen, Co-Chief Executive Officer Frank Cecchini, Chief Executive Officer and Managing Director Year of inception:2014 Miriam Lindhorst, Chief Executive Officer Helena Hallgrimsson, Chief Financial Officer Contact: Heidar Karlsson, Deputy Operating Officer Doug Pollard, (204) 474-2323, [email protected] Steindór Gudmundsson, Chief Product and Marketing Officer Ilan Rosen, +972 54 522 5746, [email protected] Year of inception: 1996 Primary products and services: • State-of-the-art, fully hosted and managed iLottery 360° Contacts: technology platform Sales and customer-related matters: [email protected] • Operational services including staff to manage all relevant Partnership and cooperation opportunities: Frank Cecchini, subsystems and functionality of a complete iLottery solution [email protected] • MUSL-certified central gaming system for the delivery of e-instant, interactive Keno, and draw-based games Omni-Channel solution for lotteries including: • Full portfolio of market-proven interactive games including • Full service Retail solutions for lotteries over 140 existing e-instant games • Open and flexible gaming platform for online and mobile • Centralized player database that maintains player profile gaming for lotteries information, transaction records, and virtual wallets • Portfolio of all classical lottery games, with full support for • CRM platform designed to attract, retain, and engage players instant ticket games via promotions, bonuses, and other incentives • Comprehensive facilities management service • Fully PCI-compliant end-to-end financial solution that accepts and processes credit cards, ACH, and pre-paid card transactions Novomatic Lottery Solutions is the new full solution alternative vendor for the lottery market. NLS delivers a complete set of games and NeoPollard Interactive LLC is a strategic joint venture between services, using modern technology and open architecture, allowing for Pollard Banknote Limited and NeoGames S.A.R.L. – two of the lottery fast time to market and easy integration with any third party systems industry’s most respected vendors. The company combines the instant or games. The NLS system supports all sales channels simultaneously, ticket expertise, marketing proficiency and extensive worldwide giving a truly seamless OMNI-Channel experience to players while at lottery experience of Pollard Banknote with the proven leadership and the same time increasing lottery revenues and returns to good causes. superior technology of NeoGames in providing iLottery solutions to lotteries around the world. This joint venture leverages the strengths With the ISO 27001 certification, WLA Security Control Standard of each partner company in order to develop, implement, operate Certification and numerous lottery audits, NLS has proven to be and maintain iLottery services for regulated lottery clients in North extremely secure and reliable. NLS is a member of the World America. Lottery Association (WLA), the European Lotteries (EL), the North American Association of State and Provincial Lotteries (NASPL) and NeoPollard Interactive offers a complete iLottery 360° solution that the Corporación Iberoamericana de Loterías y Apuestas de Estado comprises an extensive portfolio of market-proven games optimized (CIBELAE). for mobile, tablet and desktop; a robust and agile technology and operating platform; and a comprehensive set of online player Novomatic Lottery Solutions is part of the NOVOMATIC Group - one operations services, including customer support, compliance, of the biggest producers and operators of gaming technologies and payments, marketing, CRM and more. Further, the company’s “mobile one of the largest gaming companies in the world with revenues first” approach delivers the best performing and most adaptable in excess of $4bn and over 23,000 employees and activities in 80 mobile solutions in the industry. countries. In 2013, Betware was acquired by the Novomatic Group. In 2015 it became the vibrant heart of Novomatic Lottery Solutions NeoPollard Interactive is the ideal partner to help lotteries drive (NLS). Betware, the a pioneer in Internet lottery, was the first company significant revenues in order to maximize contributions and proceeds globally to launch and sell lottery games on the Internet in 1996, for the good causes they support as they venture into the iLottery and has been developing innovative solutions for licensed gaming space. operators since then. 72 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

AdMart/Identity Group BerryDunn

124 Daniel Drive 100 Middle Street Danville, KY 40422 PO Box 1100 Phone (800) 354-2102, (859) 236-7600 Portland, ME 04104 Fax (859) 236-9050 Phone (207) 775-2387 www.admart.com/lottery www.berrydunn.com

Ed Cahoon, National Account Executive John Chandler, Managing Principal

Year of inception: 1975 Year of inception: 1974

Contact: Ed Cahoon, [email protected] Contacts: Mark Caiazzo, Principal, (207) 541-2321, Primary products and services: [email protected] • Digital, illuminated jackpot total signs: Chris Ellingwood, Manager, (207) 541-2290, window, wall, countertop, in-case [email protected] • Manual jackpot signs • Illuminated “play here” signs Primary products and services: • Illuminated and dimensional logo signs • SOC examinations and readiness assessments • Play center kiosks • IT audits and reviews • Floor graphics • Security assessments • Window clings • Risk assessments and risk management consulting • Sidewalk signs • SOX 404 compliance • Custom designs and applications • ISO 27000 consulting • IT internal audit Manufacturer of point-of-sale signs for in-store lottery promotion. Custom branded window signs, counter BerryDunn is a full service Certified Public Accounting (CPA) and top easels, lottery logos and wall signs are produced in consulting firm. We provide IT assurance services to a variety of dimensional, illuminated and digital formats. Illuminated clients in the public gaming industry in addition to a full variety of LED jackpot and “play here” window signs provide high services to clients in 46 states nationwide; also serving clients in street visibility and entice consumer interest. Interactive Canada, the Caribbean and Europe. We are independent of the digital signs display video promotions, explain gameplay, industry and do not sell or manufacture products. make announcements and much more. Complete custom fabrication to lottery specifications or utilize our in-house Lottery customers: design staff. Scientific Games, Inc. (SOC examination services at operations sites in Delaware, Indiana, Iowa, Maine, Minnesota, North Carolina Maryland, Oklahoma and Pennsylvania), IGT (SOC examination services at operations sites in Georgia, Florida, Kentucky, Indiana, Michigan and South Dakota and for IGT Printed Products); Intralot, Inc. (SOC examination services at operations sites in New Hampshire and Vermont); other services for the Tri- State Lotto Commission and lotteries in Colorado, Michigan, New Hampshire, Oregon and Rhode Island. INSIGHTS September/October 2015 73 NASPL ASSOCIATE MEMBER PROFILES

Carmanah Signs Inc. Delehanty Consulting LLC

6025 12th Street SE, Suite 5 110 Enterprise Drive, Suite 201 Calgary, AB T2H 2K1 Verona, WI 53593-1254 Canada Phone (608) 848-1751 Phone (403) 252-6047 Fax (608) 848-1752 Fax (403) 252-5580 www.delehantyconsulting.com www.carmanahsigns.com Herb Delehanty, Principal Cameron Waldie, President Maxwell Goldstein, Vice President, Sales Year of inception:2003 David Roy, International Business Development Director Jon-Paul Bussoli, Vice President, Technology Contact: Herb Delehanty, (608) 848-1751, Ryan Ali, Marketing & Interactive Design Manager [email protected] Sarah Vance, Sales Coordinator Primary products and services: Year of inception: 1993 • Performance reviews and consulting • Performance improvement consulting Contacts: • Social media evaluations Maxwell Goldstein, (416) 322-2860, • Vendor management services [email protected] • Security reviews and audits David Roy, +44 777 581 7673, [email protected] • Risk assessments Cameron Waldie, (403) 930-4272, [email protected] • Gaming system procurement and implementation • System acceptance testing Primary products and services: • Professional development workshops • Wireless jackpot signs • Disaster recovery plan reviews and testing • Point of sale digital sign networks • Gaming system log reviews • Interactive digital playstations and kiosks • Digital sports betting kiosks Delehanty Consulting LLC was created to assist lotteries in • Video walls, advertising networks and menu boards enhancing their security, integrity and performance. Our • Casino LCD table limit signs consultants collectively have over 60 years of lottery experience • EvenLit™ LED light panels from having worked with more than 40 lotteries on four continents. Our experience covers a broad spectrum of disciplines. Carmanah Signs helps casinos and lotteries activate and engage We are the industry leader in providing independent lottery players by supplying digital sign networks, interactive digital consulting services. We have served more than 25 lotteries in the media experiences and value-added LED signs. U.S. and Canada. Trust us with your unique lottery requirements.

Carmanah is the world leader for the global lottery market in Lottery customers: the development and production of wirelessly-updated lottery Arizona, D.C., Florida, Georgia, Indiana, Iowa, Kentucky, North jackpot signs, which increase jackpot awareness, sales and Carolina, Wisconsin ultimately revenues for good causes. Carmanah has provided over 110,000 wireless jackpot signs for lottery retailers in 46 lottery jurisdictions.

Carmanah is the gaming division of Stratacache, a leading global provider of digital sign software, touch interactive hardware and network operation services. Carmanah and Stratacache’s digital technologies improve in-store shopper experience, promote retail conversion and assist with mobile activation.

Lottery customers: Carmanah currently has 46 lottery customers worldwide. 74 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

Delivery & Distribution Solutions, LLC Elsym Consulting, Inc.

16W 251 S. Frontage Road, Suite 21 1825 Barrett Lakes Blvd., Suite 260 Burr Ridge, IL 60527 Kennesaw, GA 30144 Phone (630) 537-1544 Phone (770) 590-7400 Fax (630) 590-5894 Fax (770) 590-4949 www.deliveryanddistribution.com www.elsym.com

Denis S. Monroe, President and Chief Executive Officer Len Simonis, President, Chief Executive Officer and Founder Marvin Freeman, Vice President of Sales & Marketing Brad Parker, Vice President of Product Development Ken Wyman, Vice President of U.S. Lottery Services Year of inception: 2005 Year of inception:1988 Contacts: Denis S. Monroe, (630) 537-1544, ext. 301, Contact: Michele Coffsky, Comptroller (678) 564-5073, michele. [email protected] [email protected] Marvin Freeman, (630) 537-1544, [email protected] Primary products and services: Patrick Dean, Operations Manager, (630) 537-1544, ext. 303, • Internal control systems [email protected] • Multi-jurisdictional game control software • Tax form processing Primary products and services: • Custom lottery programming • Courier services • Warehousing Since 1988, Elsym Consulting has provided software services to • Order fulfillment audit computer-generated transactions, including customized • Customized logistics programs software internal control systems. Elsym is dedicated to providing the highest level of customer service, reaching the Delivery & Distribution Solutions, LLC (DDS), is a family owned peak of technical innovation and fulfilling customers’ individual and operated courier and logistics company that embraces requirements with integrity and timely performance, while technology. DDS uses state-of-the-art systems and devices keeping within set budgets. The company’s focus is always on to offer the same “bells and whistles” the larger companies detail and quality, while selecting the most cost-effective solution, do, but with better results. Whether it’s our standard parcel customizing the software to fit the customer’s needs, and delivery service or a customized logistics program, DDS’ people providing outstanding support service – allowing the customer to specialize in delighting our customers. focus on its core business. Elsym Consulting, Inc. is ISO 9001:2008 certified. Lottery customers: Illinois Lottery, Scientific Games, IGT and Northstar Lottery Elsym - We Create Certainty Group Lottery customers: Our current customers include 29 U.S. lotteries and 10 international lotteries. INSIGHTS September/October 2015 75 NASPL ASSOCIATE MEMBER PROFILES

EquiLottery LLC Gaming Laboratories International (GLI)

2853 Belle Haven Place 600 Airport Road Lexington, KY 40511 Lakewood, NJ 08701 Phone (502) 644-1454 Phone (732) 942-3999 www.equilottery.com Fax (732) 942-0043 www.gaminglabs.com Brad Cummings, President and Chief Executive Officer James Maida, President and Chief Executive Officer Year of inception: 2014 Paul Magno, Executive Vice President

Contact: Brad Cummings, [email protected] Year of inception:1989

Primary products and services: Contact: • EquiLottery, a daily $2 draw game based on the results of live Michael Capen, (702) 914-2220, [email protected] horse races • Race replay mobile support app for EquiLottery. Demo version Primary products and services: at www.WatchEquiLottery.com/demo • System integration and client acceptance testing • Consulting services related to EquiLottery including racetrack • Security/IT audit and racing industry partnerships, state-specific race calendar • Network vulnerability testing and penetration testing construction, marketing support and intellectual property • Gaming project management licensing. • Project health check • WLA security and responsible gaming training Ushering in a new generation of live action draw games, • Technical consulting EquiLottery LLC currently offers its core game, EquiLottery, to • RNG testing for server and terminal lotteries across North America. This game is offered daily and • iGaming testing in regulated markets is available to any state that has both lottery and pari-mutuel • Game math analysis and modeling wagering, as a portion of each wager is run through the racetrack • Statistical forensic analysis wagering pools. This builds bigger pools and payouts, and • Physical ball measurement therefore encourages both lottery and horseplayers to invest more in races supported by EquiLottery. Gaming Laboratories International, LLC, delivers the highest quality land-based, lottery and iGaming testing and consulting services. The game is a daily $2 quick pick found at retailers and also GLI’s laboratory locations are found on six continents, and the available for those lotteries looking to open online lottery options. company is the only global organization of its kind to hold U.S. and Along with the game structure and consulting services provided international accreditations for compliance with ISO/IEC 17025, by EquiLottery LLC, our mobile app and website easily delivers 17020 and 17065 standards for technical competence in the live and replayed races to lottery players at their convenience. An gaming, wagering and lottery industries. GLI is an associate member Ipsos study conducted over the summer of 2015 shows this game of the World Lottery Association, European Lotteries Association, has strong appeal among core players, draws in a significant base CIBELAE and NASPL. of those not currently playing the lottery, and its mobile approach is attractive to the difficult-to-reach millennial generation. 76 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

Grover Gaming Inc. Hudson Alley Software, Inc.

3506 N.E. Greenville Blvd. 174 Hudson Street Greenville, NC 27834 New York, NY 10013 Phone (252) 329-7900 Phone (212) 625-6500 Fax (252) 413-0381 Fax (212) 625-6501 www.grovergaming.com www.hudsonalley.com

Garrett S. Blackwelder, President Adam Perlow, Chief Executive Officer Scott Michalcyzk, Vice President Technology & Operations Year of inception: 2013 Joe Hallett, Ph.D., Chief Technology Officer

Contact: Warren Allen, Marketing Director, (252) 902-7730, Year of Inception:2004 [email protected] Contact: Adam Perlow, (212) 625-6520, Primary products and services: [email protected] • Electronic pulltabs • Instant interactive lottery solutions Since entering the U.S. lottery market in 2004, Hudson Alley • Skill / redemption – games and platforms Software, Inc. has remained the undisputed innovator and market • Software licensing leader in lottery sales force automation. Today, Hudson Alley has agreements with 21 U.S. lotteries to provide lottery sales force Grover Gaming, Inc. is a software and game development automation solutions. In mid-2012, Hudson Alley introduced company specializing in lottery products, charitable gaming and OnePlace, its next-generation iPad and web-based sales force software licensing. All content is created in house, such as the automation solution. In the first two years following its launch, new electronic pulltab system that has sold over 500 million Hudson Alley has added 13 U.S. lottery OnePlace customers, tickets in several charitable gaming markets since its launch making OnePlace the most rapidly adopted sales force automation in 2013. Grover Gaming’s new instant game concept for state solution in the history of the lottery industry. lotteries uses scratch-off play vouchers, sold and redeemed by retailers, to access the exciting world of advanced, online In 2014, Hudson Alley launched InTouch, a new retailer interactive gaming. See the Grover Gaming difference at the communications platform to help lotteries boost sales by NASPL 2015 annual conference. improving education and merchandizing at retail. InTouch is available on the web, mobile web, and through iOS (iPhone and iPad) and Android apps; it rewards retailers with points and badges for watching training videos, reading lottery news and viewing information on their inventory and sales. InTouch contains powerful Dynamic Planograms™, which ensure that the right product is on display at the right time, maximizing valuable retail space and increasing sales.

Lottery customers: California, Georgia, GTECH Indiana, Idaho, Iowa, Kentucky, Maine, Maryland, Michigan, Missouri, Northstar-Illinois, Northstar-New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Tennessee, Virginia, Washington INSIGHTS September/October 2015 77 NASPL ASSOCIATE MEMBER PROFILES

InComm Ipsos Reid Corporation

250 Williams Street, 5th Floor 700-6th Ave SW, Suite 1950 Atlanta, GA 30303 Calgary, AB, Canada T2P 0T8 Phone (770) 240-6100 Phone (587) 952-4871 Fax (404) 601-1000 Fax (403) 294-1535 www.incomm.com www.ipsos.ca www.ipsos-na.com Brooks Smith, President and Chief Executive Officer Scott Meyerhoff, Chief Financial Officer Didier Truchot, President Directeur Generale, Ipsos Phil Graves, Executive Vice President Rob Myers, President, Ipsos Reid Michael Gruenhut, General Counsel Andrew Cochrane, Chief Financial Officer, Ipsos Reid

Year of inception:1992 Year of inception:1979

Contacts: Contact: Paul Lauzon, Senior Vice President, (587) 952-4871, Karina Grotz, Business Development, (213) 210-9913, [email protected] [email protected] Tony Fontaine, Vice President Business Development Primary products and services: Interactive Gaming and Lottery Solutions, • Market research (702) 429-5959, [email protected] • Segmentation studies • Tracking studies of all types Primary products and services: • Concept testing of online and scratch products Extensive prepaid product portfolio • Product/volumetric forecasting • Financial services • Market and opinion tracking • Toll and transit • Media habits and shopping behavior assessments • Digital downloads • Retailer interviews • Gaming • Qualitative research • Music and entertainment • Loyalty/promotions With more than 20 years of experience conducting gaming • Healthcare marketing research, our Lottery & Gaming team has earned an • Wireless/long distance international reputation for producing the total market intelligence • Bill pay required to build strong business strategies. We employ a broad • Interactive gaming and lottery solutions range of methodologies to support an even wider range of research approaches: market segmentation, game development research, Leveraging deep integrations into retailers’ point-of-sale systems, marketing communications and public policy reviews. InComm provides connectivity to a variety of service providers that allow consumers to conduct everyday business at more than Lottery customers: 450,000 points of retail distribution. Whether those consumers Current agency of record for: Florida, Texas, Minnesota, New York, are activating prepaid products, paying bills, enjoying real-time Hoosier Lottery, Alberta Gaming & Liquor Commission, Western discounts through a membership card, purchasing digital goods Canada Lottery Corp, and Washington’s Lottery in-store or adding funds to an online account, InComm is there Others: Michigan, Arizona, Montana, Atlantic Lottery Corp., to provide unique gift-gifting opportunities, cater to on-the-go Nebraska, British Columbia Lottery Corp., California, New Mexico, shoppers, deliver added value through loyalty programs and Connecticut, New Jersey, Colorado, Ontario Lottery & Gaming serve cash-based consumers. With 186 global patents, InComm is Corp., Georgia, Oregon, Idaho, Rhode Island, Illinois, Saskatchewan headquartered in Atlanta with a global presence in more than 30 Gaming Corp., Interprovincial Lottery Corp., Wisconsin, Manitoba countries in North and South America, Europe and the Asia-Pacific Lotteries, Maryland region. Learn more at www.incomm.com or connect with us on www.twitter.com/incomm, www.facebook.com/incomm, www. linkedin.com/incomm or www.incomm.com/blog.

78 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

Karma Gaming International Inc. KDM P.O.P. Solutions Group

1115-1498 Lower Water Street 10450 N. Medallion Drive Halifax, NS B3J 3R5 Cincinnati, OH 45241 Canada Phone (513) 769-3500 Phone (902) 463-2280 Fax (513) 956-3889 www.karmagaming.com www.kdmpop.com

Paul LeBlanc, Chief Executive Officer Bob Kissel, President Jay Aird, Chief Innovation Officer Year of inception: 1970 Year of inception: 2012 Contact: Gaines Gromek, Director of Branding Solutions, Contact: Paul LeBlanc, (902) 456-7525, (248) 446-7327, [email protected] [email protected] Primary products and services: Karma offers gaming and technology solutions designed for the • Turnkey retail solutions that help lotteries build their brand… modern lottery. inside and out. • KDM is your marketing supply partner for custom point-of- Retail innovations:Karma offers mobile/retail solutions designed purchase, merchandising and branding solutions that cover to bring a digital dimension to the retail channel. Online gaming every facet of the retail brand experience. legislation is not required and solutions can be deployed by all lotteries. KDM P.O.P Solutions Group is an innovative retail solutions provider headquartered in Cincinnati, Ohio. We are a family- Digital lottery content:Over 60 titles and growing monthly. owned company with a focus on strategic growth that includes Karma’s games can be offered cross-platform – HTML5, Flash or continual investments, acquisitions and technology that will native applications (iOS and Android). provide a single source solution for our consumer brand and retail partners covering big box to small footprint verticals. Business Intelligence: Solutions designed to deepen player insights and drive revenues. In business since 1970, we have grown to include over 350 • InstantScout – Delivers powerfully simple instant ticket employees with locations in Cincinnati, Nashville, Atlanta and analytics designed to increase the profitability of lottery Cleveland. Our comprehensive in-store marketing services retail ticket sales. include: • GameScout – Lottery app analytics. Individual apps and market benchmarking. • Creative design services • POP print production: 5 print methods & 30 presses Lottery customers: • Custom merchandising solutions: temporary to permanent Loto-Quebec, Atlantic Lottery, Georgia, Minnesota, Lottomatica • Custom retail fixtures: kiosks and play stations (Italy), IGT, Scientific Games, INTRALOT • Branded promotional products: 300,000 items • Fulfillment and national distribution • POP program management technology

Lottery customers: IGT, Scientific Games, California, D.C., Illinois/Northstar, Indiana, Kentucky, Massachusetts, Tennessee, Caribbean Lottery INSIGHTS September/October 2015 79 NASPL ASSOCIATE MEMBER PROFILES

La Fleur’s Magazine Lapis Software Associates LLC

20 Courthouse Square, Unit 207 601 Jefferson Road Rockville, MD 20850 Parsippany, NJ 07054 Phone (301) 610-6070 Phone (973) 884-4006 Fax (301) 610-6072 www.lapis.com www.lafleurs.com Jean Lombard, Chief Executive Officer Terri Markle, Founder, CEO and President, TLF Publications, Inc. Ted Pease, Chief Technology Officer Bruce La Fleur, Executive Vice President, TLF Publications, Inc. Adam Shapiro, President Lottery Products Byron La Fleur, Associate Publisher, TLF Publications, Inc. Chris Coyle, Vice President Business Development

Year of Inception:1991 Year of inception:1994

Contact: Terri Markle, (301) 610-6070, [email protected] Contact: Jean Lombard, (201) 248-8033, [email protected]

Primary products and services: Primary products and services: • Publishing trade magazine gemIntelligence™ – the Lottery industry’s most flexible sales • Organizing two annual educational lottery conferences force automation/customer relationship management system. • Publishing statistical research books gemIntelligence is helping lotteries improve retail performance • Publishing digital data reports and instant ticket sales, and offers a customizable platform • Producing La Fleur’s TV for each lottery’s unique business rules and requirements, Always-On™ architecture for online and offline support, and La Fleur’s Magazine is the global lottery industry’s most trusted gemScore™, an automated retail performance benchmarking source for lottery data and information vital to this $285 billion system. market. It’s published by TLF Publications. Its founder, Terri Markle, has reported on the lottery industry for the past 35 years. La Fleur’s gemRetailer™ – a customizable lottery retailer web portal Magazine was launched in 2003 and is published in both paper and for real time, self-serve information for corporate accounts digital versions. The magazine is a must-read for lottery executives and individual retailers. A growing number of lotteries and to evaluate their organization’s sales performance. TLF Publications corporate chain stores are using gemRetailer to improve also publishes multiple statistical books including La Fleur’s 2015 communication and provide lottery information whenever World Lottery Almanac, La Fleur’s 2015 European Lottery Abstract, retailers and corporate accounts need it, in any format they La Fleur’s FY15 VLT Special Report and La Fleur’s 2015 Compendium require. of Best Instant Games. Finally, TLF Publications will organize its La Fleur’s 2015 Lottery Conclave & Interactive Summit in Orlando, gemEnterprise™ – a customizable lottery back-office platform Florida (Dec. 1-4, 2015) and its La Fleur’s 2016 Lottery Symposium that allows lotteries to maintain their own independent back- & Retailing Summit in Washington, DC (May 3-6, 2016). office system even as they upgrade their gaming systems, retail devices, etc. North American lottery customers: Arizona, ALC, BCLC, California, Colorado, Connecticut, D.C., Since 1994, Lapis has provided the global lottery industry Delaware, Florida, Georgia, Hoosier, Illinois, Iowa, Kansas, Kentucky, with a wide range of software and software development Loto-Quebec, Louisiana, Maryland, Massachusetts, Michigan, and project management services spanning all aspects Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, and components, including point of sale terminals, New Mexico, New York, North Carolina, Ohio, OLG, Oregon, communications, gaming transaction systems, back-office Pennsylvania, South Carolina, Texas, Vermont, Virginia, Washington software solutions and mobile applications. State, WCLC, West Virginia, Wisconsin and Wyoming Lottery customers: Pennsylvania, Massachusetts, Michigan, Kansas, Minnesota, Florida, Televisa Mexico, IGT Colombia, IGT Chile, Norsk Tipping, Colorado, Loteria de Concepcion 80 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

Lazlo Milestone Entertainment

5755 Northpoint Pkwy, Suite 41 1012 N. Roxbury Drive Alpharetta, GA 30022 Beverly Hills, CA 90210 Phone (770) 664-2775 Phone (310) 281-0111 www.playlazlo.com www.milestoneentertainment.com

Chris Demetree, Chief Executive Officer Randall Katz, Chief Executive Officer Mike Pinkus, President, Founder, Chief Technology Officer Gary Dawson, Chief Creative Officer Robert Tercek, President Year of inception:2014 Scott Jensen, Executive Vice President and General Manager, North America Contact: Chris Demetree, (770) 855-0486, [email protected] Year of inception: 2000 Mike Pinkus, (678) 662-1861, [email protected] Contacts: Lazlo is a mobile app-based lottery ticket experience for in-store Randall Katz, [email protected] purchase. Scott Jensen, (310) 866-3534, [email protected]

Product features: Primary products and services: • Produces secure digital lotto tickets, highly encrypted with • Internet and mobile games wager and PIN information. • TV game shows • Offers players an easy, convenient way to use their mobile • Marketing and go-to-market planning phones to select, store and validate tickets, before completing • Game development workshops and consulting their purchase in-store. • International distribution • Supports retailers via in-store transactions as well as through its easily integrable system that co-exists with any legacy Milestone Entertainment’s executive team has created breakthrough system provider. interactive entertainment on all screens for over 20 years. Collectively, • Drives marketing with unlimited ticket branding potential. they have designed, developed, produced and marketed 150+ highly successful games, game shows and interactive entertainment Lazlo is lottery for the mobile lifestyle. It is the first mobile lottery experiences on every platform in every market globally. experience that offers wager selection and ticket storage on iPhone, Android, and Windows phones – with the convenience, Milestone creates interactive omni-screen experiences with features privacy and security of a traditional paper ticket. designed to reach a wide audience – even the latest generation that expects innovation and true engagement in digital entertainment. We How it works: Player selects games and draws; player visits develop content in native formats optimized for television, computers, retailer; clerk “sees” player app on tablet or integrated POS; player tablets and smart phones, and leverages our catalog of patented game mechanics and dynamics. Our expertise with well-known brands and pays for ticket(s); and player’s app downloads ticket images. legendary game franchises is also unmatched in the lottery industry. Lazlo drives marketing, supports retailers and engages players. Milestone collaborates with its partners to define go-to-market Lazlo has been developed by leaders in the gaming-tech space. strategies and launch compelling marketing campaigns, which can be custom-tailored for a specific state or region and aligned with product roadmaps and metrics-based performance goals. We also offer international distribution experience with a full range of localization, customization and integration services. We can successfully conceptualize and launch original entertainment on every popular device and screen in the United States and worldwide.

Lottery customers: California, Idaho, South Carolina, Folkspel (Sweden), Française des Jeux (France), New Zealand, South African National Lottery, UK National Lottery, Veikkaus (Finland) INSIGHTS September/October 2015 81 NASPL ASSOCIATE MEMBER PROFILES

Pro-Lite, Inc. Public Gaming Research Institute

3505 Cadillac Ave., Building D (PGRI, Inc.) Costa Mesa, CA 92626 Phone (855) 568-8652, 218 Main Street, Suite 203 Fax (714) 668-9980 Kirkland, WA 98033 www.pro-litelottery.com Phone (425) 449-3000 Fax (206) 374-2600 Andy Kaoh, Owner/President www.PublicGaming.com www.PublicGaming.org Year of inception:1981 www.PGRItalks.com

Contacts: Paul Jason, Publisher and Co-Chief Executive Officer Linda Turner, Sales Manager, Lottery Division, Susan Jason, Publisher and Co-Chief Executive Officer [email protected] Tom Yerke, Vice President Sales, (714) 668-9988, Year of inception:1975 [email protected] Contacts: Recent Innovations: Paul Jason, (425) 449-3000, [email protected] • Day of drawing feature indicates the day on which games are Susan Jason, (425) 985-3159, [email protected] drawn – adopted by the Minnesota Lottery in 2014. • Billion dollar feature accurately conveys jackpots in excess of a Primary products and services: billion dollars – adopted by the Florida Lottery in 2014. • Public Gaming International Magazine, published six times a year Pro-Lite Inc. of Costa Mesa, Calif., introduced LED technology to • www.PublicGaming.com, an industry news website the U.S. in 1981. A supplier to names such as Walmart and Costco, • www.PGRItalks.com, for video-recorded presentations Pro-Lite delivers to more than 1,000,000 customers and end-users and interviews worldwide. • “Morning Report” e-newsletter sent out every Monday • Four daily e-newsletters, Monday through Thursday In 2000, Pro-Lite introduced updatable LED jackpot signage to the • Smart-Tech: Conference held annually (April) in New York U.S. and holds the distinction of supplying New York Lottery, the City largest lottery sign program. The LED product line now includes • Lottery Expo: Conference held annually (November) in models for window, countertop, floor and outdoor applications. Miami

Recent lottery deliveries: Public Gaming Research Institute is dedicated to the support Over 100,000 LED signs have been made for more than 30 North and growth of lottery organizations around the world, American, Caribbean, Central American and European lotteries. government sponsored gaming of all varieties, preservation of In the last three years, Pro-Lite has manufactured signs for the responsible regulatory policies and the forging of an informed following U.S. lotteries: Connecticut, Delaware, Florida, Hoosier, and enlightened approach to public policy issues. We do this Kansas, Kentucky, Massachusetts, Minnesota, Missouri, New by providing information resources, daily e-news services and Hampshire, North Carolina, North Dakota, Ohio, Oregon, South in-depth commentary by experts and leaders in the gaming Dakota, Tennessee, and Washington. Abroad, Pro-Lite supplied industry, and by keeping our readers and constituents abreast British Colombia, Ontario and Honduras. The first European delivery of the status of legal, political and regulatory matters that so (modular signs) was recently made under NDA. affect our industry. Our mission is to serve the government gaming industry. Our constituents include everyone who supports lottery and government-gaming. 82 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

QLot Consulting AB Schafer Systems Inc.

P.O. Box 159 1000 Flag Road Marsta 19524 Adair, IA 50002 Sweden Phone (641) 742-3266, (800) 222-4489 Phone +420 777 729 777 Fax (641) 742-3624 www.QLot.com www.ssi-ia.com

Ales Kulich, President Don Hudak, President and Chief Executive Officer Chris Moumouris, Vice President Business Development John Worth, Vice President and General Manager Tony Steinegger, Vice President Projects & Technology Diane Littler, Vice President Finance and Corporate Secretary

Year of inception:1998 Sales Contacts: Teresa J. Immel, Director of Sales and Marketing, Contact: Ales Kulich, [email protected] (641) 742-5133, [email protected] Shay Wahl, Sales and Marketing Manager, Primary products and services: (573) 415-5455, [email protected] • Supplier-independent lottery and gaming consulting • Procurements and tenders Primary products and services: • Feasibility studies and business plans Instant ticket dispensers, play centers, literature holders and point • Lottery start-ups of purchase display products. • Licensing • Operations Since 1986, Schafer Systems is an innovative leading manufacturer • Game development of plastic products for the lottery industry. Servicing clients domestically and internationally, Schafer Systems has a solid QLot Consulting AB is a Swedish corporation with consultants reputation for quality and customer service, producing and in Europe as well as in North America. All of QLot’s Principal manufacturing products for over 25 years. Consultants have extensive prior working experience with various lotteries and/or suppliers in senior positions. This brings detailed We know that each lottery retail location is unique and we want knowledge of literally all major suppliers to the industry and to be the ones inspiring and partnering with you on new ideas, enables QLot to provide its clients, whether lotteries, internet functionalities and looks within your needs. We recognize that gaming operators, governments or suppliers, with well-informed, you have ideas too, so don’t hesitate to reach out to us as we unbiased and independent consulting and support services as well have top-of-line designers and engineers taking many ideas from as the understanding of “both sides.” thought to reality, and we can do that for you too. From instant ticket dispensers, ticket menu boards, play centers, promotional Unlike general consultants, QLot’s exclusive focus is on the lottery items and literature holders to so much more, we have what the and gaming business, making it a renowned and respected lottery industry needs. expert in its field. Established lottery and gaming operators, governments, and existing as well as start-up businesses are Schafer Systems sales are led by Teresa Immel and Shay Wahl. benefitting from QLot’s thorough knowledge of all industry- Teresa and Shay have worked in the lottery industry for a related issues. Our clients include lotteries and other gaming combined 40 years. They work together to provide product companies, governments, gaming commissions, lottery suppliers expertise, new product ideas and excellent service for their and investors. clients. Our newest products are sure to make your lottery items stand out, integrating technology, lighting and so much more. If Lottery customers: you haven’t experienced the new products yet, now is the time. Minnesota, Puerto Rico, Ministry of Finance (Austria), OPAP (Greece), Belgian National Lottery, Ministry for Public Expenditure and Reform - PER (Ireland), World Lottery Association, and many others. INSIGHTS September/October 2015 83 NASPL ASSOCIATE MEMBER PROFILES

Smartplay International Spectra Systems Corporation

1550 Bridgeboro Road 321 South Main Street, Suite 102 Edgewater Park, NJ 08010 Providence, RI 02852 Phone (609) 880-1860 Phone (401) 274-4700 www.smartplay.com Fax (401) 274-3127 www.spsy.com David Michaud, President Thomas Markert, Executive Vice President Nabil Lawandy, Chief Executive Officer Doug Anderson, Chief Financial Officer Year of inception: 1993 Scott Tillotson, Director - Secure Transactions Group

Contacts: Year of inception:1996 David Michaud, [email protected] Thomas Markert, [email protected] Contact: Mariana Mokritski, [email protected] Scott Tillotson, (401) 274-4700 ext. 3009, [email protected]

Primary products and services: Primary products and services: Lottery and gaming products including traditional ball drawing • ICS (independent control systems) for all forms of lottery machines and digital draw systems. – traditional draw games, instants, iLottery interactive, mobile and pari-mutuel gaming We provide the highest quality lottery and gaming products to the • Electronic RNG draw monitoring and auditing world’s most prestigious lotteries. We service all the products we • Dashboard portal for at-a-glance game and draw status sell, providing peace of mind to our clients. across all games • Central gaming system independent, our interface supports Lottery customers: all major gaming vendors We actively service over 185 lotteries in 75 countries. Spectra Systems is an established world leader in providing technology for securing transactions, from banknotes, brand protection and gaming. Spectra’s Premier internal control system is the industry’s most advanced ICS offering for real-time protection and is the leading supplier of real- time auditing, fraud control and risk management systems to government-sanctioned gaming operators. Prior to the strategic acquisition of the ICS business for regulated gaming markets, the company has penetrated the currency and document security markets through a series of supply and licensing agreements with governmental, institutional and corporate partners.

Lottery customers: Spectra Systems serves over 20 lottery jurisdictions across the U.S. and worldwide. Currently deployed in North America, the Caribbean, Europe and Asia, Premier Integrity systems monitor and audit more than US$25 billion in annual sales for lotteries and pari-mutuel organizations. 84 INSIGHTS September/October 2015 NASPL ASSOCIATE MEMBER PROFILES

Sunshine Electronic Display Szrek2Solutions LLC (S2S)

Corporation 60 Spencer Ave. East Greenwich, RI 02818 316 South 6th Street Phone (401) 398-0395 St. Joseph, MO 64501 www.szrek.com Phone (800) 821-9013 www.sunshine.us.com Irena Szrek, Managing Director and Partner Walter Szrek, Senior Technologist and Partner Kendall L. Randolph, Chief Executive Officer Joe Tewell, Vice President Year of inception: 2003 Bonnie Fussell, Vice President Contact: Irena Szrek, [email protected] Year of inception: 1972 Primary products: Contact: Casey Taylor, National Lottery Rep. (816) 387-4238, • Trusted Products Suite™ high performance Trusted RNG™ [email protected] Platform for random number generation and verification/fraud detection Primary products and services: • Trusted Draw™ secure digital draw system • LED and TallDigit® technologies • Trusted Play™ secure RNG server for instant games • Lottery jackpot displays for billboards, point of sale (window • Trusted Audit™ verifying data integrity in all products, fraud units, StandSigns®, pump toppers, StripeSigns) detection • Trusted Monitor™ provide view of processes and transactions Sunshine is the preferred vendor for 33 out of 45 state lotteries. • Trusted Transactions™ securing bets before draw / event A leader in outdoor signage since its inception in 1972, Sunshine’s • Trusted Ticket™ securing 3rd party wager receipts forward strides in innovation and technology continue to make it a visible force in secure, reliable and effective numeric displays. RNG games support: Our Skylink® online updating system allows lotteries to connect • 2nd chance draws, raffle games (regular raffle, lotto to hundreds of displays, from billboards to point of sale, with just combination and Joker raffle) one transmission – simultaneously updating jackpot information • Lotto, numbers, bingo, keno, multiplayer games, instant win across the state in minutes. games, many other games

Sunshine proudly manufactures all of our products in the United Primary services: States and operates a nationwide network of service technicians Trusted RNG system implementation, delivery, support; draw available to assist clients 24 hours a day, 7 days a week. services and audit; consulting services, RNG design / security.

Lottery customers: Szrek2Solutions is a private international service and product supplier 33 lottery customers within the U.S. offering secure solutions for the gaming industry. Headquartered in Rhode Island, for the last twelve years S2S has provided a secure RNG and time-stamping platform; the Trusted Product Suite™ addresses demand in the industry for secure automated generation of winning numbers and game outcomes for all game types and gaming environments; the S2S platform offers built-in fraud detection solutions for draws, transactions and tickets. S2S designed and patented innovative technologies and solutions for the gaming industry, including breakthrough RNG and time-stamping technology, providing transparency and fraud detection; S2S technology offers provable security – based on real-time securing of critical data and providing mathematical verification of data integrity.

Our motto:“When I play I trust.”

Lottery customers:Danske Spil SA, Lottomatica SpA, Sisal SpA, Luxembourg, South Carolina, Florida, Kansas, Texas, Oregon, Georgia INSIGHTS September/October 2015 85 NASPL ASSOCIATE MEMBER PROFILES

Take-A-Ticket, Inc. JNA Advertising dba

130 NE Montgomery Street Yellow Barn Promotions Albany, OR 97321 Phone (800) 253-4295, (541) 967-0433 7101 College Blvd., Suite 120 Fax (541) 967-8415 Overland Park, KS 66210 www.tatinc.com Phone (913) 327-0055 Fax (913) 327-0059 Calvin Tigner, President www.jnaadvertising.com Donald Tigner, Production Manager John Nohe, President and Chief Executive Officer Year of inception: 1985 Jolee Roberts, Business Manager

Contact: Year of inception:2004 Calvin Tigner, (800) 253-4295, (541) 223-1118 (mobile), [email protected] Contact: John Nohe, [email protected]

Primary products: Primary products and services: • On-counter dispensers • Unique product sourcing for game prizes • Motorized and hand turned lottery ticket displays/dispensers and game themes • Fabricated and injection molded on-counter dispensers • Licensing services • In-counter dispensers • Promotional production support • Models with a variety of ways to display the games • 32 game units requested by some of the largest convenience Yellow Barn Promotions creates innovative promotional store chains. opportunities for lotteries that will help them expand their player base and generate incremental revenues. Yellow Barn Take-A-Ticket, Inc. was the first lottery dispenser company and sources unique products for game prizes, second chance was founded by Cal Tigner in 1985. TAT has designed numerous drawings or game design. Yellow Barn has capabilities to dispensers to meet the needs of the lotteries through the years. provide lotteries with full-scale marketing support including The company’s latest ticket display combines movement and lights graphics, commercials, point of sale, digital and interactive to make the most eye-catching display piece in a convenience services. store. The small on-counter footprint makes it ideal for lotteries expanding into non-traditional sales locations. Lottery customer: Kansas Lottery customers: Arizona, California, Colorado, Connecticut, D.C., Delaware, Florida, Georgia, Indiana, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, Wisconsin 86 INSIGHTSINSIGHTS September/OctoberSeptember/October 2015 2013 Save the Dates!

October 12 - 16, 2015 NASPL 2015 Hosted by the Texas Lottery Dallas, TX

2015 CONFERENCE CALENDAR 2016 CONFERENCE CALENDAR

January 2016 October 3 - 7, 2016 October 12 - 16, 2015 National Council of Legislators from Gaming NASPL ‘16 Annual Conference NASPL ‘15 Annual Conference States Georgia World Congress Center Hilton Anatole Omni Hotel Dallas, TX February 2 - 4, 2016 Atlanta, GA ICE Conference 2016 ExCel London Exhibition Centre October 18 - 21, 2016 December 1 - 4, 2015 London, UK NACS La Fleur’s 2015 Lottery Conclave Georgia World Congress Center & Interactive Summit March 2016 Atlanta, GA Loew’s Portofino Bay Resort GLI University Roundtable 2016 Orlando, FL November 6 - 9, 2016 April 17 - 21, 2016 World Lottery Summit NASPL Lottery Leadership Singapore Renaissance Hotel Cleveland, OH

June 2016 NASPL Spring Directors’ Meeting

July 2016 NASPL Professional Development Seminar

July 2016 NASPL Game Developers Conference

September 26 - 29, 2016 G2E Las Vegas, NV Become a NASPL Associate Member! “An Associate Membership is a way for your organization to be ‘at the table’ to hear about the key issues affecting our Industry and how we can better service and grow our industry

For More Information Contact: Jake Coy Vendor Relations [email protected] 440.466.5630

NASPL Associate Membership www.naspl.org

Lottery Insider lotteryinsider.com

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