a publication of the Issue no. 24, Autumn 2007 World Association

Good Causes EXCELLENCE begins at home

Stakeholder engagement

Hong Kong Jockey Club Chairman John Chan Cho-chak encourages employees to serve the community by active participation in vol- unteer work themselves. Good causes: Contents our key differentiator

5 Letter from the President This issue of the WLA Magazine provides further insight into one of the key areas that makes our lottery platform so unique. Association business Most of our members play a pivotal role in the financing of 6 The WLA takes steps to structure its communications and youth and adult development. As well as actively supporting ­develop advertising best practices for the industry. Reports local and national youth and education programs, most of from regional associations around the world. you are also involved in a wide spectrum of efforts to promote health and culture and build stronger communities. Corporate Social Responsibility 10 As the WLA sets deadlines for implementation of the We all need to realize that this is our raison d’être. It puts Responsible Gaming Framework, Camelot gives an outline of us in a unique position and sets us apart from other gaming its own CSR management system operators. Communities around the world trust and rely on our capacity to generate funds and support actions that allow WLA Projects them to build a sustainable future. 12 The latest news about WLA security certification, establishing retail security best practices and defending the industry’s most Building a sustainable future can only continue if our members valued assets. around the world aim to strengthen relations with their customers. Innovation, our ability to involve our stakeholders Special series: Lottery beneficiaries in our unique approach, and above all to develop attractive 18 Serving the community is integral to operations at The gaming propositions, will allow us and our stakeholders to Kong Jockey Club. seriously compete for an increasingly critical consumer. And that is where the WLA can excel as a platform for learning Feature: World Meet 2007 and exchange of Best Practice. Building Sustainable Gaming 24 The lottery world comes together in the United States for a Excellence is our mission in life! unique learning experience – and a true taste of Kentucky. This issue of the WLA Magazine includes some great examples The case continues of lottery excellence around the world. We also report on 28 Lynne Roiter and Philippe Vlaemminck examine the delicate the great progress we are making with our Security Control relationship between sports and and how gaming leg- Standard©, as the Kentucky Lottery becomes the first operator islators around the world are addressing some thorny issues. in North America to gain certification. More than 30 lotteries have now also formally embarked on the WLA Responsible People Gaming Framework. These are all encouraging signs of 32 Clint Harris, Executive Director of the Minnesota State Lottery the progress we are making in setting ourselves apart and and President of the North American Association of State and establishing our unique positioning. Provincial Lotteries (NASPL) Many of you will have the opportunity to learn more at World The learning curve Meet ‘07 in Kentucky. With our NASPL colleagues we will 34 Short reports on recent WLA Academy seminars and the have a great opportunity to learn about how to strengthen our ­ever-popular Erewhon case study program. lottery operations further. With the enthusiastic support of some of our key industry partners we will engage and unite to Contributors be and stay the preferred choice for gaming around the world. 36 Corporate news from members of the WLA Contributors Program. I look forward to working with you and possibly seeing you in Louisville.

WLA MAGAZINE is published by the Publication Director: Hans Savonije, World Lottery Association, WLA Executive Director Lange Gasse 20, P.O. Box, Coordination, layout and production: CH-4002 Basel, Switzerland Paul Peinado, phone: +41 61 284 1111 WLA Communications Coordinator fax: +41 61 284 1350 Contributing Editor: John Smellie e-mail: [email protected] Printed by: Werner Druck AG, www.world-lotteries.org Basel, Switzerland Hans Savonije Executive Director, WLA

Autumn 2007 3 Letter from the President

The summer (winter for those of you in In Hans’s column, he emphasizes the Good causes funded by lotteries continue the southern hemisphere) has been a busy WLA’s other efforts in Building Sustainable to be a central theme of the Magazine, and time for the WLA. Our Executive Director, Gaming Excellence, including the areas this issue highlights programs funded by Hans Savonije, has been busy melding the of Corporate Social Responsibility and the Jockey Club. All members WLA staff into an efficient team carrying Responsible Gaming, the Security Control are encouraged to submit materials for out their new duties and responsibilities. Standard©, Marketing and Advertising this continuing coverage. With their assistance, the office has coor- Best Practices, and Retail and Online dinated several successful WLA Academy Distribution Best Practices. The progress As Hans notes in his column, the funding seminars, made several improvements in made with development of the Responsible of good causes and public benefit pro- member services and begun significantly Gaming Framework and Security Control grams is one of the most unique aspects of revamping the WLA website. Hans has Standard© is outlined in further detail by lotteries around the globe. It is what sets worked with many of you and our WLA articles within this issue of the Magazine, us apart from other gaming providers. It is standing committees in further develop- as is an update by Jan Stewart of the pro- an integral part of our brand identity and ing the WLA’s mission and our efforts in posed Advertising guidelines. Members a great source of our public appeal and Building Sustainable Gaming Excellence. can find additional information about acceptance. the WLA’s Security Control Standard©, Between May and August, WLA Academy the Responsible Gaming Principles and Hans has also continued his efforts with seminars were held in Australia, Europe Responsible Gaming Framework through OPAP in developing plans for the WLA and Africa. In the last week of May, a semi- the WLA website, which will be helpful 2008 Convention and Trade Show in nar on Corporate Social Responsibility and in determining how to implement these Rhodes, Greece, and the long-term devel- the WLA’s Responsible Gaming Framework principles within each lottery organiza- opment/restructuring of the WLA Academy was staged in Brisbane, Australia. An tion. Applying these standards is a sig- program. He has sought the input of our Interactive Gaming seminar took place nificant step in our mission of Building regional associations and many of our in Helsinki, Finland, and the Erewhon Sustainable Gaming Excellence. members regarding this latter effort. case study program was held in Mangalia, Romania. A workshop on certification to Efforts to develop retail and online distri- Plans for the joint NASPL/WLA World the WLA Security Standard© was also or- bution guidelines are just beginning, with Meet ’07 in Louisville, Kentucky are now ganized in Zurich, Switzerland. By all ac- recommendations from several members complete. My staff and I look forward to counts, each session was highly successful, for candidates to comprise the associated hosting you and seeing you this October. and the Helsinki seminar, in particular, working group. Significant progress in this The Call to the Post has been made and was very well attended. We are especial- area should occur over the next several the World Meet ’07 Starter’s Gun will fire ly grateful to our host lotteries, Golden months and is most timely. Potential as- on October 1 with the commencement of Casket, Veikkaus and Loteria Romana. In pects of these best practices are suggested early activities. The conference’s formal late August, an Academy seminar, Lottery in this issue’s article authored by John program breaks from the gate on October Business from A to Z, was held in Lome, Branscombe, Chair of the Security and 3 and reaches the finish line on October 5. Togo. Hans either participated or led the Risk Management Committee. Don’t miss getting your bets down on this discussions in each of these learning op- great conference! portunities. The summer has also been an active time for regulators, legislative bodies and the courts, particularly in Europe and North America. Philippe Vlaemminck and Lynne Roiter comment on these developments Arch Gleason within this issue. WLA President

4 Autumn 2007 5 Jan Stewart, Association WLA Senior Vice President and Chair of Regional the Communications Committee business associations

After our focus on NASPL in the last issue, we report on the latest projects and upcoming events being organized by Building Sustainable three other regional lottery associations – the Asia-Pacific Lottery Association (APLA), Corporación Iberoamericana de Gaming Excellence Loterías y Apuestas de Estado (CIBELAE) and the European State Lotteries and Toto Association (EL). The WLA Communications Committee, Working on the communication strategy Advertising of lottery products needs to be chaired by Jan Stewart, is pursuing its has caused us to reflect on whether the light-hearted and entertaining, but strict work to provide a framework for WLA existing WLA logo is appropriate and con- standards are needed to ensure that it is Synergy, sustainability S’s”, the three keywords that pave the way of APLA’s social value. Scheduled speakers communication processes. At the same temporary enough to provide a strong not deceptive in any way and does not en- and social value for APLA’s future: Synergy, Sustainability, include noted Japanese economist Prof. time, it has acted on the Executive visual representation of the kind of orga- courage underage play. and Social value. A wide array of presen- Motoshige Itoh, Dr. Hiroyuki Watanabe Committee’s June 2007 decision to form a nization we need to be. This has led us to A total of 150 par- tations will be given over two days with from Toyota Motor Corporation and Prof. working group on lottery marketing. begin the process of reviewing the exist- Worldwide inventory ticipants from the aim of generating discussion that will Hirofumi Takada of the National Graduate ing brand design and style guidelines for The first step in this project has been to Japan and through- hopefully lead to synergy creation in the Institute for Policy Studies. Planned communications use in visual material and to consider re- collect a range of advertising standards out the region are lottery industry, identification of sustain- The WLA is working to ensure that all design options. Over the next few months, currently being used by WLA members in expected to gather able growth scenarios, and enhancement President Arch Gleason, immediate past communications to members and external a range of options will be considered and different parts of the world. These have in Tokyo for the APLA Regional Conference president Reidar Nordby and Executive stakeholders reflect the core values of the presented to the Executive Committee for been summarized into a document out- in November 2007. Hosted by the Japan Director Hans Savonije are due to at- Association and its members as well as the approval before being submitted to the lining the core elements of each set of Lottery Association with the enthusias- APLA 2007 Regional Conference tend from the WLA. Two optional tours important information and messages that membership. standards. It is encouraging to see the tic support of other members in Japan, of Tokyo and Kyoto are scheduled for the we need to convey. As reported in the last quality of standards that our members this third regional conference follows the When: November 26-29, 2007 Networking Day in order to give partici- issue, the Communications Committee is With the many changes happening in the are already using. We believe it will be memorable events in Perth in 2004 and Where: Grand Prince Hotel pants an opportunity for relaxed interac- committed to managing all forms of WLA global lottery industry, and to meet the a relatively simple task to use the best of Hong Kong/Beijing in 2005. The Tokyo Takanawa, Tokyo tion and sharing. communication in a planned and profes- Executive Committee’s goal of ensuring these to develop a generic WLA advertis- conference will focus on the fundamentals Registration: www.apla2007tokyo.com sional way, and to building a recognizable that all our services are timely and rel- ing best practice document. This will be of growth under the theme of the “Three WLA brand. The Executive Committee evant to the needs of our members in all subsequently made available to members has adopted “Building Sustainable their diversity, it is important that we get either for adoption or for benchmarking Gaming Excellence” as the byline for the our communication strategy right in ev- purposes. Association’s future communications. ery aspect. The final draft of the best practice guide- The task of the Communications Committee Advertising standards lines for advertising standards will be has included reviewing the content and Another project underway under the aus- presented to the Executive Committee at design of the WLA Magazine, and we hope pices of the Communications Committee is World Meet ‘07 before being made avail- that members are beginning to notice the a review of the advertising standards ap- able to the entire WLA membership. continued improvements. plied by members throughout the world. The goal is to develop an agreed WLA best Members who would like to contribute Members and associate members are al- practice baseline or template which all their advertising standards to this world- so encouraged to visit the WLA website members could use either to develop their wide inventory are encouraged to send (www.world-lotteries.org) to check on cur- own advertising standards or to bench- them to the WLA office in Basel for distri- CIBELAE: bridging the continents Practical partnerships Cooperative proj- rent news items, member news, and up- mark their current practices. bution to the project team. Alternatively, ects include efforts to set up legal struc- dates on seminars and conferences. An Jan Stewart can be contacted directly at CIBELAE was formed in 1988 to seek tures to fight unlawful gaming and favor extensive review and redesign of the WLA This is an important element of our ap- [email protected]. common ground for lottery activities in the legitimate activities of cross-jurisdic- website is underway, with a view in due proach to Corporate Social Responsibility. Latin American countries sharing close tional gaming. Important steps have been course to making it a far more interactive The way that lotteries present themselves historical, cultural and linguistic bonds of levels of development. Underlying this taken to facilitate business consulting communication tool between individual in advertising communications sends im- with Spain and Portugal. The interconti- diversity, however, members have found services and technological assistance be- members and with the WLA office. portant messages to players and other nental association currently has twenty- they have a great deal in common. Indeed, tween members. An integrated training stakeholders not only about their products eight members from twenty countries, the level of cohesion between the mem- program allows less developed lotteries and services, but about our corporate val- and sixteen associate members from nine bers of this unique association is quite to face the future with greater self-assur- ues and our links with our beneficiaries. countries. remarkable. The vast majority of member ance. At the same time, an exchange pro- jurisdictions have a very long history in gram provides opportunities for groups of Diversity is one of the distinguishing fea- the lottery sector. Their role in society is employees to work temporarily in other tures of CIBELAE. In terms of technologies deeply ingrained in the local traditions in countries to gain proficiency in the hands- and business volumes, its member lotter- their respective countries, and they are all ies represent an extremely broad range united in the battle against illicit gaming. Continued on the next page.

6 Autumn 2007 7 Regional associations continued from page 7

on aspects of running a modern gaming Responsible Gaming Standards, which is organization. As part of the same down- complementary to the WLA Responsible to-earth approach, CIBELAE organizes Gaming Framework, as well as a Code of face-to-face and online seminars two or Conduct on . Over the com- three times a year focusing on specific ing years, both documents will be further problems typical of Latin American lotter- the enlargement of the European Union, developed and new codes of conduct and ies. A scholarship program is available to and the expansion of the EU internal mar- other directives on responsible gaming help members with financial difficulties to ket with almost half a billion consumers. will be added. take advantage of these opportunities. Commercial operators have also stepped up their lobbying efforts for an EU-led lib- The Code of Conduct on Sports Betting In October 2007, El Salvador will be host- eralization of services, and the was established to promote high-level ing the two-yearly CIBELAE convention, right of EU Member States to maintain a self-regulation. It demonstrates that mem- organized around the theme “Looking af- restrictive policies for reasons of public bers’ gaming rules are responsible and ter the Public Interest”. And preparations interest (as recognized by the European completely transparent, and highlights are already underway for World Meet ‘09, Court of Justice) continues to be chal- the huge differences between sports bet- which will combine the twelfth CIBELAE lenged. ting as operated by state lotteries and the Convention with the WLA Convention in gaming activities organized by commer- Santiago de Chile in 2009. EL is continuing to monitor political and cial operators. legal developments and provide decision- The CIBELAE magazine is published ev- makers with the technical expertise need- Recently, EL set up a commission on ery six months and the association web- ed for sound policy decisions. In addition Public Order and Security which will be site is currently being redesigned with a to its Secretariat General in Lausanne, EL in charge of developing a paper on mon- relaunch date scheduled for later in the has an EU representation in Brussels to ey laundering and gathering information year.. defend the interests of its members with or studies on the subject of criminality, the EU institutions and other stakehold- money laundering and other unlawful ac- ers, and to monitor and analyze develop- tivities. EL is committed to developing its EL: sustaining the pressure ments on all levels. The EU representation expertise in this field. is assisted by legal advisers Vlaemminck When sports betting operators joined the & Partners and public affairs consultants As it prepares for another decade of European State Lotteries Association in Blueprint & Partners. changes and challenges, the European 1999, the organization changed its name regional lottery association is in a per- to the European State Lotteries and Toto Raising the bar manent state of alert and vigilance. As it IS YOUR LOTTO GAME Association, or European Lotteries (EL) for In this context, upholding the principles maintains its focus on the priorities of its short. Today EL has 72 members and 25 of responsible gaming is clearly of utmost members, the association is expanding its associate members. The last decade has importance for EL member lottery orga- skill sets and sustaining its pressure on seen a lot of changes in Europe, not least nizations. The EL has developed a set of opinion leaders and policy makers. UP-TO-SPEED?

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8 Autumn 2007 9 Corporate Social Responsibility

Vision without action is merely a dream. Action without vision just passes the time. Vision Data mining technology helps with action can change the world! – Joel Arthur Barker, business writer and author prevent problem gaming Camelot’s CSR priorities Swedish lottery Svenska Spel has intro- Camelot has run the UK National Lottery since its 1994 launch and has just Time for action: Responsible Gaming duced a new system that actively prevents problem gaming. Known as Playscan, the been announced as the preferred bidder in the competition for the third lot- system analyzes the lottery’s customer tery license commencing in February 2009. Camelot puts Corporate Social Framework deadlines established database and alerts players about gaming problems, both existing and potential. Responsibility at the heart of everything it does and has identified four priori- ties in order to achieve its wide-ranging commitments in this area. Back in 2003, the WLA had a ­vision “We need to set ourselves apart, not only This is especially important when many Playscan can predict the risk of a player in thought but in action,” added Gleason. members face increased scrutiny due to developing problems in the next three that as state-controlled gaming environment, including tackling climate concerns about problem gambling, the months with more than 90% accuracy, the Responsible play: As part of its commitment change and reducing waste and carbon Members not yet familiar with the threat to monopoly status and increased lottery reports. to raise money for good causes responsibly, ­op­erators, members had a leadership emissions. Last year Camelot reduced its Responsible Gaming Framework can find competition from unregulated markets. Camelot aims to have lots of people playing role to play in addressing Responsible carbon emissions by 29% by switching to information on the WLA website. On the “Our philosophy is that gaming responsi- the lottery regularly but spending relatively green electricity, introducing changes to members-only page, there is an overview A deadline of November 30, 2007, has bility is most effective when it is placed small amounts. Seventy percent of the UK Gaming issues. its transport fleet and reducing gas and of the program, information about how been established as the first deadline for in the hands of the players themselves,” adult population play on a regular basis electricity usage . to apply and the fees involved, applica- lotteries wishing to apply for Level 2, Level says Svenska Spel CEO Jesper Kärrbrink. and the average weekly spend is less than “Since then, various WLA members tion forms, a Self-Assessment Tool and a 3 or Level 4. Members electing to commit “Playscan sustains the thrill and excite- £3. Camelot works to protect those who have acted upon this vision to create Stakeholder Engagement Guide. Additional to Levels 2, 3 or 4 by this deadline will ment of playing and helps players not to are potentially most at risk in terms of CSR management system Responsible Gaming Principles and then a material will be added as it is developed. have the fee associated with these levels transform that into an unhealthy gambling excessive and underage play, and those Camelot has a clear framework of CSR Responsible Gaming Framework that acts reduced by their Level 1 entry fee. behavior.” on a low income. Safeguards are built management, consultation structures and as a guideline to make responsible gaming “Because Level 1 is a minimum require- into every level of its operation, from policies in place. The Camelot Board is ul- an integral part of each lottery’s daily op- ment of WLA membership, we asked all “If you’re not sure of your level, a good Once a person is identified by the system game design and marketing to the sale timately accountable for its CSR strategy, erations,” recounted Arch Gleason, WLA members to send in their CEO’s letters of place to start is the online Self-Assessment as being at risk, the lottery has pledged to of tickets at retail outlets and online. A receives close support from formal Board President and CEO of the Kentucky Lottery commitment by the end of August,” stated Tool,” advised Carinci. “It will help you de- stop advertising to that person, urge them dedicated team of advisors is on hand to committees, advisory groups and stake- Corporation. Gleason. “If your lottery wasn’t able to cide the most appropriate level for your to consider their gambling habits, work out help winners deal with the changes a big holder panels. The company also has a meet that deadline, we strongly urge you lottery. It also lists the information that a gambling budget, take a test for gambling win brings and help them enjoy their good designated Corporate Responsibility team “The goal of all this hard work is to ensure to enter Level 1 as soon as possible.” must accompany the applications.” addiction and/or opt for self-exclusion from fortune. reporting directly to the Chief Executive. that the public is protected and that rev- Svenska Spel’s betting products. enues for the public good are sustained,” “We are now at a point where members Members attending World Meet ‘07 will People and communities: Camelot strives to Producing an annual, independently veri- said Dianne Thomson, Chair of the WLA must embrace the Framework,” added also have an opportunity to learn more Sophisticated technology create an environment that rewards people fied CSR report is an important way for Corporate Social Responsibility Committee Michelle Carinci, Deputy Chair of the about the Framework in one of the ses- Working with the Swedish gaming institute for giving their best, provides a healthy the company to demonstrate transparen- and Chief Executive of Camelot in the UK. WLA’s CSR committee and CEO of the sions on Corporate Social Responsibility. Spelinstitutet, data mining specialist ICU work-life balance and encourages staff to cy and accountability. The report offers a “By differentiating ourselves from gam- Atlantic Lottery Corporation. “This is vital Members of the WLA’s CSR committee will Intelligence harnessed a combination of volunteer within their local communities clear and honest view of Camelot’s annual ing operators for whom creating private if we are to demonstrate to our stakehold- be on hand to answer questions. behavioural science, psychology, math- and on larger charitable projects. Camelot achievements in each of its four priority profit is the main goal of being in business, ers that WLA members are united in our ematics, artificial intelligence and genetic is currently 13th in both the Sunday Times areas, showing performance against the we can now demonstrate that we, as WLA commitment to not only to grow sales and programming technology to develop the list of the 100 Best Companies to Work For commitments made the previous year. The members, are dedicated to raising money returns to good causes but to facilitate re- new system. The strength of ICU’s tech- and The Guardian’s list of the UK’s Top 2007 report is due out in the autumn. for good causes by operating responsibly.” sponsible play.” nology is its ability to find weak patterns Employers. in customer behavior without any human Camelot sets its CSR priorities by under- specific enough to have meaning and to sup- May 2006 – CSR Seminar, Halifax, Canada interference. The outcome is based on real Business relationships: Camelot is com­ standing what’s really important to stake- port lotteries in carrying out their mandates. Members provide feedback on the draft data, not on human assumptions and bias. mitted to open, honest and transparent holders and identifying the areas that Framework for implementation of the working relationships with all its cus­ most matter to the company as a business. November 2004 – WLA Convention Responsible Gaming Principles.. Since the end of June 2007, Playscan has tomers, suppliers and shareholders. This approach ensures that CSR is fully Responsible Gaming: WLA timeline and Trade Show, been available online to players that have It maintains regular dialogue with all integrated into day-to-day business, form- Durban, South Africa November 2006 – WLA General Meeting, already registered for the lottery’s cus- stakeholders­ through annual feedback ing part of every action and decision the October 2003 – WLA General Meeting, Members endorse the draft Principles as a Singapore tomer loyalty card. Svenksa Spel ultimately surveys, quarterly forums and regular company takes. Granada, Spain valuable complement to lotteries’ established Members adopt the Responsible Gaming aims to implement the system across all its face-to-face contact, as well as less formal Members call for a set of WLA standards with policies.. Framework, which outlines how members can distribution channels. communication throughout the year. Camelot’s score in the UK’s leading inde- respect to public order, social responsibility demonstrate measurable commitment to the Camelot was voted Best Supplier in 2007 pendent Corporate Responsibility Index, and duty of care to proactively respond to the February 2006 – World Lottery Forum, Mérida, Responsible Gaming Principles. Mark Griffiths, Professor of Gambling by retail consulting firm HIM based on published by Business In The Community challenges facing the sector Mexico Studies at Nottingham Trent University, has its dedication to understanding retailers’ (BITC), rose from 92.5% to 96.5% in 2007. The membership adopts the WLA Responsible May 2007 – CSR Seminar, Brisbane, Australia called the system “the most outstanding needs and then delivering excellent service The company also retained its position as September 2004 – WLA Round Table, Gaming Principles, which will guide lotteries Members learn how to apply the Framework innovative single project in the area of re- and support to those retailers. leader in the leisure category in the Index Hamar, Norway as they make responsible gaming an integral and use the tools that will help them through sponsible gaming I have seen worldwide. and was placed in the highest category of Lottery leaders review draft Principles broad part of their daily operations. the process. I sincerely hope that Svenska Spel’s ex- Environment: Even as a relatively small, BITC rankings last year – Platinum. enough for all WLA members to embrace but ample will inspire many others.” specialist company, Camelot knows it has a part to play in protecting the

10 Autumn 2007 11 Security and Risk Management

John Branscombe is the Security Director for the UK lottery operator Security certification: A unique tool to Camelot and serves as Chairman of the WLA’s Security & Risk ­improve lottery operations Management Committee.

After constructive discussions and knowledge sharing, the latest version of situation was, the new standards allow for Business improvement exercise Certification: a first in North America! © an approach based on a risk assessment, The process should not be viewed as cer- the WLA Security Control Standard – the worldwide lottery sector’s security in line with the real business needs. tification for certification’s sake but as an The Kentucky Lottery • Putting into place an overall information management baseline – was released in November 2006. As more members ap- overall business improvement exercise. Corporation (KLC) has security management system. Various Using ISO 27001 as the base, the secu- become the first North areas and personnel with any type of ply for certification, we review the current status of the standards and examine rity committee worked on the identified As before, depending on the starting point, American lottery organi- security-related responsibilities are now how the process creates value for lottery organizations in their continuous im- “must’ requirements that would ensure the financial cost will vary but most of it is zation to gain certifica- better coordinating their activities to en- that the WLA crown jewels were kept in- for the internal resources needed to im- tion to the WLA Security sure a well-integrated security environ- provement efforts. tact. The committee were helped in their plement the standard. Control Standard©. Obtaining certifica- ment. work of formulating and structuring the tion to the WLA standards has been an • Significantly improving the KLC’s security new standards by Tony Steinegger of Qlot Common pitfalls can be avoided by ap- important priority for the lottery for some risk assessment model so that manage- Previous versions of the standards have well-known international security stan- Consulting and are grateful for the direc- pointing an experienced external coach time – but completing this process pro- ment can allocate its limited resources to been described as the “crown jewels” of dard BS7799 was recognized by ISO as tion, enthusiasm and general profession- or consultant to assist in the process. This vided the organization with additional the areas of highest risk and exposure. the WLA’s resources for its members and ISO 27001. This provided a perfect oppor- alism he displayed when assisting with helps to put the requirements in perspec- benefits that few staffers had anticipated. • Implementing a risk acceptance policy it is hoped that the latest version will be tunity for the global security management this difficult process. tive, avoiding the tendency to think that and process that documents any cases equally well received and respected. “I am baseline to be used within a new version more is required that actually is, and it Security management in perspective where the implementation of security very confident, as are all the members of of the WLA document. Simple structure helps to dispel fears of staff resistance and The process of applying for the certifica- controls is not adequate to provide the the committee, that the 2006 version of The structure of the 2006 standards is high costs. tion gave KLC the opportunity to formally highest level of assurance to manage- the standards is robust, serves a neces- quite simple. In addition to the ISO 27001 address certain areas that had been on- ment. In these cases, the actual, specific sary requirement and can be compared As well as the many requirements there are 24 WLA basic The certification process itself is prob- ly informally addressed or partially ad- risk and related exposure is documented. favorably with previous versions,” says recognized benefits of controls which include requirements for ably the smallest cost involved. This is dressed in the past. In other words, it This allows executive management to John Branscombe, Chair of the WLA’s the overall organization, human resourc- conducted by one of the two certification gave the lottery a chance to step back make business decisions based on all Security and Risk Management Committee WLA certification, the es management, physical security, access bodies authorized by the WLA, the British and look at its organization through a dif- available data. This process also results (SRMC). process is a chance control, business continuity and other con- Standards Institute (BSI) and Det Norske ferent lens. This in turn led to several im- in a common understanding of decisions to identify potential siderations. There are 72 lottery specific Veritas (DNV). provements and benefits in areas which made and documents those decisions for Reduced maintenance controls (very similar to the 2003 version) previously may not have been examined future reference and/or review. The 2003 version was an imposing docu- improvements in areas which cover instant tickets, lottery draws, Recognized benefits with such a critical eye. They include: ment with more than 69 single controls which previously may retailer security and prize money protec- The following are some of the recognized The process of certification to the WLA and over 430 “must be met” statements. not have been examined tion, gaming terminals, Internet gaming benefits of taking the certification path: • Developing and implementing an internal Security Control Standard© does not nec- It was extremely detailed and very com- systems and other areas. audit tool so that executive management essarily address specific control tech- prehensive, but noted for not being user with such a critical eye. • Continuous improvement of business can determine the status of all corrective niques and standards. Instead, it provides friendly or easy to work with for auditors Compliance and certification processes processes whilst lowering the risks to action implementation plans and perform management with a process to formal- and certifying bodies. Also, although well With the standards in place, the next step the operation. follow-up as necessary. This includes all ly manage, update, and continuously regarded by lottery operators, it was of was to set up clear compliance and inde- • Enhancement of regulatory, stakehold- types of audits, both internal and those improve its security controls. For the little use to lottery suppliers. This approach had a number of advan- pendent certification processes. As a rule er and player confidence and reassur- performed by third parties. Kentucky Lottery Corporation, the exer- tages: of thumb, an average-sized organization ance in the operation of the lottery. • Implementing a corporation-wide docu- cise has proven highly beneficial across It has always been an overriding SRMC ob- with about 100 staff will need approxi- • Provision of an identifiable framework ment management policy and protocol to the entire organization. jective to have an agreed usable standard • With an internationally recognized mately 6-9 months to implement the re- for investigating and resolving security provide better control until an electronic for information security within the lottery standard available, the SRMC would quirements of the standard and be ready issues. solution is implemented later this fiscal world. As a result, the committee invested not have to “reinvent the wheel” on in- for certification. This is a very approxi- • Tangible, visible proof and reassurance year. a tremendous amount of time and effort in formation security. mate time frame as it is dependent on the that a lottery operator has reviewed reviewing and maintenance work. • Using the ISO standard as a base ver- starting point of the lottery concerned. the business risks and managed them sion means much less maintenance in a structured and formal way with Structure of the WLA-SCS:2006 Due to the pressure of time constraints work, thereby saving resources and It is important to understand that in or- appropriate mitigation in place. and the changing technological environ- freeing up time for other important der to achieve the review of the business • Higher overall awareness of security WLA Security Control Standard Introduction ment it was obvious that a better and projects. critical processes and to ensure that there within the lottery and of the impor- more efficient way had to be found, to en- • Incorporating ISO 27001 into the new is an information management system in tance of security and integrity to the Part A Part B sure that the standards were dynamic and WLA standards allows for a much more place, the organization must undertake operation. remained “fit for purpose”. applicable implementation approach. a thorough assessment in order to effec- • Confidence for all involved with part- General Security Requirements Lottery Specific Security tively and systematically analyze the risks ners when operating multi-jurisdiction- ISO/IEC 27001 (133) Requirements (72) Complementing ISO 27001 While previous versions of the WLA to the business. This is followed by imple- al games. Scope Requirement At the same time as the future of the Security Control Standard© prescribed the menting appropriate measures for risk • Future competitive advantage. WLA Basic Controls (24) WLA standards was being considered, the security requirements no matter what the mitigation.

12 Autumn 2007 13 Security and Risk Management

website indicating that integrity and • Monitoring of unusual retailer activity be read by the terminal and incorpo- Retail security: defending the security are at the forefront of the op- including excessive cancellations, ex- rated into the printed ticket issued. eration. The statement could include cessive attempts at validations of non- a user-friendly guide for a complaints winning tickets and player complaints Protecting the winning experience winning experience procedure. regarding allegations of underpayment The public play lottery games for the win- • The complaints procedure should be or non-payment of prizes. ning experience. However simple or com- audited independently on a regular ba- • Zero tolerance of dishonest retailer ac- plex games are made, it is the winning As our interactive public face, agents tickets are checked, the winners identified siderations do not constitute best practices sis. tivity. experience that seals the satisfaction of and the correct prize money is paid. But formerly promulgated by the WLA, they • Vigorous and comprehensive vetting of • Random visits to retailers to check playing. It is integral to that experience and retailers are an integral part of potentially in this situation there is an op- will be considered by the new Retail and all retailers and potential retailers to instant ticket stock for tampering. (pre- and to maintaining player confidence that any lottery operation. They are gen- portunity and a temptation for fraud. Online Distribution Committee for such ensure that they are of good character. scratching, pin pricking, etc.). the fear of retailer fraud must not be al- purposes. Not all of the measures will be Information and intelligence relating to • Tracking of all prizes over a set limit lowed to mar the process. To this end we erally very honest and have the best A winning ticket could be discovered and suitable for all lotteries, and care should the dishonesty of a retailer, including to ascertain whether the claimant is a must keep our guard up, maintaining our interests and integrity of the lottery at the player could be told that they haven’t be taken to ensure compliance with local non-lottery matters, to be followed up retailer, a member of the retailer staff existing measures and always remaining won. Later, the retailer or an associate regulations and license conditions. and the appropriate action taken. or involved with the lottery. open to the consideration of new solu- heart. But as in most cash enterprises, could attempt to claim the prize (big or • Toll-free phone number to check re- • Payout of high-tier prizes at lottery tions. there is always a potential and op- small) in the usual way, and keeps the Prevention better than cure sults of draws both current and recent. centers only. money. The result: The trust and integrity The Committee has identified various po- • The capability to carry out compre- • Implementation of a player registration The actions highlighted above are not ex- portunity for things to go wrong. John fundamental to a lottery’s success is com- tential preventive measures with respect hensive independent investigations system ensuring that any prizes won clusive and the WLA welcomes news from Branscombe outlines some initial promised and its reputation is severely to players, retail locations, lotteries or op- into complaints of dishonesty or mal- under the registration program are members about any other initiatives cur- tarnished. erators, and new technology. practice. These to be conducted by an automatically paid into that player’s rently operating in a lottery environment considerations as a starting point for investigation team separate from other account. to ensure that a winning player is paid the the work of the new Retail and Online How can this opportunity be minimized? Communication with players departments to ensure there is com- correct prize. Earlier this year, the WLA Executive • An awareness program highlighting plete segregation of duties and trans- New technology Distribution Committee. Committee agreed to establish a Retail the various ways of checking whether parency. • A new generation of terminal technolo- and Online Distribution Committee, which or not a ticket is a winner. This may • Investigation of all complaints with gy to assist with the integrity issue. The Despite all the checks, balances and con- will gather best practice in this important include visiting the lottery website or feedback given directly to the com- playslip completed by a player could trols we may have in place, a retailer or lottery contact center, checking news- plainant. include the player’s name, which would (more likely) a member of their staff can It is integral to the papers or other publications, using act dishonestly. Recent events involving win-checkers at retail locations, etc. retailers in North America and in Europe winning experience that • Clear advice for players’ own protec- have clearly illustrated the ongoing care the fear of retailer fraud tion on writing/signing their names of and vigilance that is required to maintain must not be allowed to the back of any ticket at the time of the overall integrity and trust of a lottery. purchase and not just when they are mar the process. We aware that the ticket is a winner. Here are a few examples of potential dis- must keep our guard • User-friendly advice on how to make a honest practices by lottery retailers: up, maintain existing complaint for investigation if they feel they have not been paid the correct $AUBINGISDATED • Checking a winning ticket but declaring measures and remain prize. to the player that it is a non-winner, open to new solutions. #JOHPJTUIFPOMJOFHBNFPGDIPJDFBNPOHBOFX *OUFSOFU and later attempting to claim the prize. Retail locations TBWWZBVEJFODFXIPIBWFOFWFSPXOFEBEBVCFSɨFZFOKPZ • Deliberately under-paying a prize • Audible fanfare and flashing light when JUPOMJOFXIFSFUIFDIBUSPPNJTXIFSFJUBMMIBQQFOT amount, and later attempting to claim a winning ticket is scanned on a termi- the correct prize. area to help lotteries improve their opera- nal. 8FVOEFSTUBOENPEFSOCJOHPBOEUIFDPOUFNQPSBSZXBZ • Selling a ticket to a player and imme- tions even further. The first proposals for • Customer-facing screen to inform the UPTPDJBMJTF-FUPVSFYQFSUJTFIFMQZPVDSFBUFBTFDVSFPOMJOF diately carrying out the “void” process, retail and distribution best practice are player in real time whether or not the keeping payment for the ticket. awaited by the end of 2007. The release of ticket being scanned is a winner. HBNJOHIBWFOGPSZPVSDVTUPNFST KVTUBTJUIFMQFE4WFOTLB the 2006 WLA Security Control Standard© • A clear retailer agreement ensuring 4QFMPG4XFEFO4WFOTLB4QFMPĊFSTJOUFSBDUJWFHBNFTTVDIBT Cheating at the checkout also provides procedures and valuable that only tickets that have been signed TDSBUDIUJDLFUT CJOHPBOEQPLFS"MMQSPWJEFECZ#PTT.FEJB Let’s examine one of these vulnerabilities guidance for lotteries in the areas of gen- on the back by the player are checked in more detail. A player visits his local lot- eral security incidents, vetting procedures by scanning. tery store with a quantity of lottery tickets and systems security. • Win-checkers installed enabling a play- that have been purchased over the previ- er to privately self check a ticket. ous month or so. The player, as many do, Many anti-fraud measures are already • An obligation to issue a printed receipt asks the retailer to check the tickets to in place in lotteries across the world. at the time of scanning to show the sta- establish whether or not there is a winner However, the WLA Security and Risk tus of a ticket. among them. Management Committee has outlined some key considerations for lottery opera- Lotteries or operators In the overwhelming number of instances tions that could further strengthen their • A statement of commitment to be pub- of this type there is not a problem. The operational effectiveness. While these con- lished in the press and on the lottery !LLYOUNEEDFORASUCCESSFUL)NTERNETGAMINGOPERATIONWWWBOSSMEDIACOM 14 ).34!.44)#+%43").'/3/&4'!-%30/+%2#!3)./'!-).'-!.!'%-%.43934%-0!9-%.43 WLA Global Insurance Scheme Honesty and integrity: Protecting our most important assets

Recent media coverage has highlighted the damaging effects of retailer and formance, thereby putting the insured in a stronger position,” continues Beamish. employee dishonesty, from the more obvious financial impact of a claim to the often underestimated damage to the lottery’s integrity, reputation and brand Filling the gaps However, even with practical steps such as image. Although insurance alone is clearly not the perfect solution, lotteries customer-facing displays on lottery termi- can mitigate these risks by obtaining cost-effective insurance cover through nals, a creative fraudster may still exploit ® an opportunity to act in a dishonest man- HineSight , the range of risk services endorsed by the WLA as part of its ner by incorrectly scanning the ticket or Global Insurance Scheme launched in 2005. not scanning it at all. As a result, there are some exposures that no amount of practi- Like other businesses, the lottery commu- “Sometimes insurers are reluctant cal procedures and creative thinking can nity is facing a range of new challenges. to ­provide an adequate level of cover- eliminate. This is where bespoke insur- From litigation to computer crime and age, and this can lead to inadequate ance coverage can be a cost-effective solu- major fraud, the nature and scope of risks ­protection,” says Barry Beamish, special- tion to filling the gaps. to be managed by lottery operators are ist professional indemnity and crime risk constantly evolving. The gaming sector is protection consultant at Miller Insurance “Insurance purchased as a ‘tick a box’ at the forefront of new technologies con- Services. “Through HineSight®, Miller has exercise, without careful consideration, nected with the growing requirements of the ­expertise to place professional indem- can leave the policy holder exposed,” says game distribution, regulation and gover- nity and crime risk protection for vari- Beamish. “The key to effective coverage is nance. This in itself can put operators at ous financial institutions, including the to work with an insurer that understands considerable risk from employee and re- lottery community. We are continuing to the dynamics associated with the lottery tailer dishonesty. work with insurers and the lottery com- sector. Through HineSight®, Miller has munity to fill current gaps in the insurance the expertise to place professional indem- Perception of risk ­market.” nity and crime risk protection for various In November 2006, HineSight® surveyed financial institutions, including the lottery WLA members from 26 countries to un- It would be naïve to think that insurance community, either direct to insured par- derstand their attitudes towards various alone will provide a perfect solution. The ties or via independent insurance inter- types of risk. A full 80% of respondents quality of systems and procedures must be mediaries.” For more information about (64% of them lottery operators) viewed scrutinized. Not only does this protect the HineSight® or to discuss your current risk customer, employee and retailer dishones- integrity of the games and ensure player management policy, please contact Neil ty as a risk to their business. However, less confidence, but it also has financial ben- Daly at Miller Insurance Services on +44 then 30% of respondents were insured efits when considering risk transfer op- (0)20 7031 2717. against losses resulting from fraudulent tions. “Risk management tools such as the activities by employees and retailers. WLA Security Control Standard© provide a measure of a lottery organization’s se- curity control and risk management per-

New MECN Report: Lottery Benchmarking and Success Factors Report about benchmarks, success factors, and best practices in the global lottery industry. Autumn 2007 More information: www.lottery-benchmarking.mecn.net 17 GOOD CAUSES:getting the message across

Sporting entertainment and community support

Our series on Good Causes continues with the first spotlight on a member lottery organization. As the lottery arm of The , HKJC Lotteries is a respected benefactor and provider of sporting entertainment to the 7 million people who call this unique jurisdiction home. The principal trading gateway to and from mainland China and The Hong Kong Jockey Club Scholarship Winfried Engelbrecht-Bresges, Chief When thousands were killed or made Scheme is aimed at encouraging Executive Officer of the Hong Kong homeless in the Southeast Asia tsuna- a leading global trade and finance center, Hong Kong ranks as one of the world’s most affluent cities. But community the brightest and best local and Jockey Club, uses sign language to call mis, the Hong Kong Jockey Club pulled projects actively supported by the Club help to ensure that the affluence benefits the largest possible number of Hong Mainland students to pursue their higher for participation in Asia’s first bilingual- in about half of the HK$110 million ulti- and serve the ism and co-enrolment program for deaf mately raised in Hong Kong for the relief Kong citizens and enhances the quality of life for the next generation. community. students. operation.

18 Autumn 2007 19 Horseracing was introduced in Hong Kong by the British in Born in Kentucky in 1999, thoroughbred racehorse Bullish Luck Recipients of Hong Kong Jockey Club scholarships design Funding community projects for young and old: young people the 1840s, but it wasn’t long before the local Chinese population trained at Newmarket before moving to Hong Kong. Five years workshops and share broad-ranging expertise with teenagers are invited to bring along a senior to attend a pop song award caught on to the unique excitement of hooves pounding later, his outstanding performances earned him the coveted to help them broaden their horizons, identify their goals and presentation ceremony – a unique way to promote inter-gener- along the turf. Hong Kong Horse of the Year award. pursue their dreams in life. ational care.

Possibly one of the most delightful and erate off-course betting to tackle illegal despite a lengthy period of decline in rac- history, but from the early 1950s onwards, unit and the upgrading of others. To cope attracting more than 25 million visitors a enduring legacies of Hong Kong’s color- gambling head on. Two years later, the ing turnover due to the region’s economic as Hong Kong struggled to cope with post- with the growing population in urban ar- year. ful history is the population’s passion for Club was asked to run the Mark Six lot- downturn, coupled with a new wave of war reconstruction and a massive influx of eas and the rural New Territories, over 20 horse racing. On the busiest race days of tery in order to combat chi fa – a popular competition from illegal and unauthor- immigrants, this role became integral to basic healthcare clinics were established Through these years of dramatic change, the year, up to 80,000 people pack into illegal lottery game at that time. Then in ized offshore bookmakers, spawned by the its operations. In 1955 the Club formally with Club support, including two floating The Hong Kong Jockey Club’s charita- the main racecourse at Sha Tin and HK$1 2003, the Club was authorized to operate rapid growth of the Internet. decided to devote its surplus each year to clinics to serve the city’s island dwellers. ble contributions have evolved in nature billion (US$128m) will be wagered on the regulated football betting in Hong Kong, charity and community projects, and in alongside the changing needs of the com- horses. Inevitably there will be winners as illegal wagering on football had become Some of the major community facilities 1959 a separate company, the Hong Kong Many of Hong Kong’s public swimming munity. While most donations are still and losers on the day, but in the end, the rampant as live TV coverage of matches built with Club funding over the years Jockey Club (Charities) Ltd was formed pools were also built with Club funding in directed at four core areas – Community biggest winners are always the commu- increased. have included Victoria Park, Ocean Park to administer donations. This company this period, as were major recreational fa- Services, Education and Training, Medical nity at large – because all The Hong Kong (a major theme park), the Hong Kong has in turn evolved into The Hong Kong cilities like Victoria Park and Morse Park. and Health, and Sports, Recreation and Jockey Club’s surpluses are ploughed back Besides serving the community as a pro- Stadium, the Hong Kong University of Jockey Club Charities Trust, established Culture – the Club is increasingly paying into charitable and community projects. vider of sporting entertainment and a ma- Science and Technology and the Center for in 1993. Dramatic change attention to new issues of community con- jor charitable benefactor, therefore, the Health Protection. The past 40 years, however, have seen cern like the environment, heritage con- The history of horse racing in Hong Club has played an important role over In those difficult years of the 1950s and Hong Kong undergo a dramatic economic servation and sports development. Kong can be traced back more than 160 the years in supporting the Government’s Touching lives early ‘60s, most of the Club’s donations transformation, as it first became a major years. Within months of the arrival of efforts to channel gambling in Hong Kong The Hong Kong Jockey Club has become were directed to meeting urgent commu- manufacturing center and then – after the Proactive approach the British in 1841, a malarial swamp on through a responsible and properly reg- one of Hong Kong’s best-known and re- nity needs in such areas as healthcare, opening-up of China from the late 1970s In recent years the Club has also adopted the north side of Hong Kong Island was ulated operator. The Club has long im- spected organizations, touching the lives education, and recreational facilities. onwards – evolved into the principal trad- a more proactive approach to its com- drained to form what is now Happy Valley plemented a comprehensive responsible of most local residents in one way or an- Epidemics like tuberculosis were still rife, ing gateway to and from the Mainland. munity contributions, not only address- Racecourse. In the early days, racing was gambling policy throughout its opera- other. More than one-third of the adult a problem eventually brought under con- Today, in its new post-1997 status as a ing areas of immediate concern, but also infrequent and mainly a pastime of the tions. population are Club customers, and inde- trol by Club donations to the Ruttonjee Special Administrative Region of China, identifying emerging social issues with colonial elite, but it wasn’t long before pendent surveys have shown that some 30 Sanatorium. Hong Kong’s high post-war Hong Kong ranks as one of the world’s the aim of enhancing the quality of life the local Chinese population caught on to Hong Kong’s largest community benefactor per cent of residents or their families have birth rate also stretched maternity servic- most affluent cities and a leading global for the next generation. In addition, it has the unique excitement of hooves pounding The Club is the city’s largest taxpayer. made use of Club-supported charity and es to the limit, prompting the Club to fund trade and finance center. It is also a major been getting more actively involved in along the turf. In 2006/07 season it contributed some community projects. the rebuilding of one hospital maternity air transport hub and tourist destination, the projects it supports, working closely HK$12.6 billion (US$1.6 bn) to public The Hong Kong Jockey Club was officially funds – an estimated 8.2% of the total The Club’s commitment to serving the The horseracing continues established in 1884 and changed from an tax collected by the Government’s Inland community also extends into other areas, amateur to a professional racing organi- Revenue Department. Most importantly with the employees themselves playing an After the Joint Declaration was signed ing will stay, the horseracing will continue” With its football betting and lotteries op- zation in 1971 – though it remains to this of all, perhaps, the Club contributes more active role. More than 700 of its current by Britain and China in 1984, providing for – and that has been very much the case. erations also thriving, not to mention its day a not-for-profit enterprise with no than HK$1 billion (US$128m) a year to and retired staff have joined a group called Hong Kong’s return to Chinese sovereignty top-class and highly-coveted membership shareholders. charitable and community projects, each CARE@hkjc which undertakes a variety of in 1997, doubts were expressed in some Indeed the horseracing has not only services, the Club now ranks as a global year benefiting over 100 local projects and volunteer services around town, ranging quarters as to whether the cherished continued since 1997, it has gone from leader in the sporting entertainment sec- Combating unlawful gambling organizations large and small. This makes from tree-planting in country parks to tradition of horseracing could survive the strength to strength, and Hong Kong is to- tor, with an annual turnover of over HK$100 The growing popularity of horseracing it not only Hong Kong’s largest commu- visiting elderly people living alone. Many change, given China’s strict curbs on gam- day considered one of the world’s premier billion (US$12.8 bn). It is also one of Hong in the 1960s and ‘70s was accompanied nity benefactor but also one of the largest bring their young families along, helping bling. However, China’s then paramount horse-racing jurisdictions. The quality of Kong’s largest employers, with over 24,000 by an increase in illegal bookmaking, as worldwide, on a par with the Rockefeller spread the message of volunteerism to the leader Deng Xiaoping, the architect of the its racehorse population and racecourse full- and part-time staff. racing fans who could not gain access to Foundation in the United States. next generation. “One Country, Two Systems” concept, was facilities rank among the finest worldwide, the racecourse were motivated to place quick to reassure Hong Kong people with as do its highly sophisticated betting sys- bets with illegal operators. In 1973, the Significantly, this level of commitment Contributing to the community has been his now famous statement that “the danc- tems and products. Government authorized the Club to op- has never faltered in the past 10 years high on the Club’s agenda throughout its

20 Autumn 2007 21 with Government departments, non-gov- nel through which the graduates can The Club is keen to support the promo- ernment organizations, academic bodies continue their involvement in commu- tion of Chinese medicine worldwide, with and local community groups to study how nity causes. Scholars have assisted chil- Hong Kong’s professional expertise at the issues of concern can best be tackled and dren of new immigrant families; mentored forefront, and has also invested HK$500 solutions implemented, drawing on best displaced youths; helped mentally dis- million into the Jockey Club Institute of practices worldwide. abled children develop their potential and Chinese Medicine to fund its research and confidence and most recently, launched development capabilities. An early example of this more proactive Schoolala, helping senior secondary stu- approach came in 1999 when the Club dents “seek their dreams”. One recent Club project, “Read & Write: A started looking at the issue of dementia Jockey Club Learning Support Network”, among the elderly. It became clear that is intended to address the issue of dys- longer-term solutions were required rath- lexia, which presents particular challeng- er than short-term funding, as this was Keen to support the es for Chinese students as most existing a problem that would intensify with the promotion of Chinese support programs have been developed ageing population. Hence the Jockey Club around alphabetic languages. Center for Positive Ageing, established in medicine worldwide, the collaboration with the Chinese University Club has invested HK$500 The Jockey Club Sign Bilingualism and Co- of Hong Kong, is based on a social model enrolment for Deaf Education Program is of care, offering day or overnight care million into the Jockey aimed at establishing an alternative edu- services as well as carer training pro- Club Institute of Chinese cation model for the hearing impaired, grams. Now that break-even mode has by teaching hearing and deaf children to- been reached, it is conducting applied re- Medicine to fund its gether in both conventional and sign lan- search programs alongside the university research and development guage. and other agencies. capabilities. Rapid response More recently, the Club has launched Being proactive also means being ready to “CADENZA: A Jockey Club Initiative for respond quickly and flexibly when unfore- Seniors” a HK$380 million (US$48.7m) Some of the Club’s most far-sighted proj- seen events occur. When the SARS (Severe project that brings together local and ects have grown out of more straightfor- Acute Respiratory Syndrome) outbreak overseas experts in gerontology with the ward funding requests. For instance, a dealt a devastating blow to Hong Kong aim of fostering totally new attitudes and biotechnology research project proposed early in 2003, the Club didn’t wait to be approaches within the community to care by the Hong Kong University of Science asked for help. At a time when there was for the aged. and Technology effectively became a real concern among parents and the com- The Club has played an important role over the years in supporting the government’s HK$175 million venture capital invest- munity at large, it immediately stepped in efforts to channel gambling through a responsible and properly regulated operator. The Hong Kong Jockey Club Scholarship ment after it became clear that the con- to fund comprehensive cleaning programs Posters at off-course betting branches reiterate the importance of responsible play. Scheme, launched in 1998, is aimed at en- cept had strong commercial potential and for schools, kindergartens and community couraging the brightest and best local and could serve to stimulate other biotech- centers. Mainland students to pursue their higher nology research and investment in Hong education in Hong Kong, whilst also build- Kong. A new joint venture company has In addition, while easing the public’s im- first facility dedicated to the prevention er as it has provided Hong Kong with its golfers, and introduce adaptive golf to the ing a linkage with care for the community. now been set up between the university mediate concerns, the Club was anxious and control of infectious diseases, it was first golfing facility, making this once-elite disabled. Since its launch, 211 scholarship recipi- and a US corporation which is pioneering to help the Government find longer-term officially opened in October 2004. sport more accessible to the population at ents have benefited from this program. the development of anti-ageing drugs, us- solutions to disease control. The HK$500 large. At the same time it has transformed The Club has also opened three public ing compounds identified from traditional million funding approved to set up the Less than two years after SARS, thou- the environment of an island that had riding schools around the city and com- The Jockey Club Scholars Alumni Chinese medicine. Center for Health Protection was there- sands were killed or made homeless in the been badly scarred by its former use as mitted funds to establishing Hong Kong’s Association now provides a further chan- fore a progression. Hong Kong’s Southeast Asia tsunamis. The Club was an artillery training range. The flora and first Sports Medicine and Health Sciences on hand again with an immediate dona- fauna have since returned in strength and Center. Olympic spirit tion of US$250,000. Then, making full use the island has become an important wild- of its Off-Course Betting Branch network life habitat. With the 2008 Beijing Olympics certain For more than 120 years, The Hong Kong In July 2005, the Club’s commitment to the By making full use of its existing world- and other customer channels, it launched to focus the world’s media on China in Jockey Club has not only provided Hong community broke exciting new ground class racing, veterinary and laboratory a relief fund which raised a remarkable The Club is now constructing a third pub- the coming months, and Hong Kong play- Kong people with sporting entertainment, when it agreed to commit well over HK$800 facilities, the Club has been able to create HK$53 million from Hong Kong people. lic course at Kau Sai Chau, which will ing proud host to the Olympic equestrian but has also been a major community million (US$103m) to building competition the Olympic equestrian venues in well adopt a unique funding mode whereby events, The Hong Kong Jockey Club be- benefactor through its unique, not-for- venues that would enable the equestrian under two years, less than half the normal Sports development future operational cash flows will be rein- lieves that a new sporting culture is ready profit business model. Its value to the com- events of the 2008 Beijing Olympics and lead time. Moreover, most of the facilities As Hong Kong’s small land area tends to vested in a series of long-term, golf-relat- to emerge across the region. And as Hong munity has been further enhanced over Paralympics to be moved to Hong Kong. can be put to further sporting and commu- make it quite a crowded and stressful city, ed developments on the island, including Kong’s oldest and most respected provider the past decade as Hong Kong’s racing This has given Hong Kong people a once- nity use after the Olympics. the Club has been putting a strong focus the establishment of a Golf Academy to of sporting entertainment, the Club in- and betting operations have progressed in-a lifetime opportunity to share in the on sports development and the environ- offer vocational training in golf course tends to remain firmly in the forefront. to new heights, becoming recognized as excitement of the Olympics and in their ment in recent years. The Jockey Club management for young people keen to world leaders in the industry. nation’s glory. Kau Sai Chau Public Golf Course, opened enter the industry. The Academy will also in 1995, achieves both objectives togeth- promote golf at grassroots level, train elite

22 Autumn 2007 23 for-profit lottery operators. Panelists will present their views on and Home Depot, and Camelot’s in-lane terminal application with World Meet: a tradition in the making the pros and cons of those forms of organization and their ability to Tesco. An update on the NASPL Corporate Development Commit- effectively conduct lottery operations in an increasingly competi- tee’s efforts will also be provided. tive environment. Ad agency relationships | Room 108, level one Best new instant game | Room 100, level one theater How can lottery and advertising agencies best work together? This session will include presentations by finalists for the NASPL Insights from both sides of this relationship will be explored, with a Best New Instant Game award, selected for the innovative aspects discussion of ways to cultivate new ideas and build brands. of their games, costs and benefits, strategic analysis and insight, and overall visual appeal. Friday, October 5: 3:45 pm – 4:45 pm Our playing field – legislation update | Cascade ballroom A Handling big events | Room 101, level one This update on legislative, regulatory and judicial challenges in Lessons learned by the communications team for one of the pre- North America, Europe and other parts of the world will include a mier sporting events in the country –The Kentucky Derby – show review of Internet gaming legislation and recent court decisions. parallels that can be used in the lottery industry. Whether it is a monster jackpot announcement or a scheduled new game launch, Are mega-games saving or killing lotto? | Room 100, level one the staff from Churchill Downs will share tried-and-true media rela- Industry leaders will investigate why lotto-style games continue tions techniques that can work just as well in our industry. to flourish in Europe but are seeing steady declines in the United States. Have multi-jurisdictional mega-games in North America Maximizing retailer relations | Room 104, level one caused the lotto demise? What are best practices in maintaining an existing retailer base? Areas of discussion will include retailer incentive plans, retail pro- Web-based marketing | Room 101, level one motions and the struggle for POS and product placement. How can lottery organizations best engage Internet users who may just be looking for winning numbers online? This session will World Meet ‘07 will be the third combined event organized by the North American Association Corporate and social responsibility: case studies explore ways to best present fresh and dynamic content, player of State and Provincial Lotteries (NASPL) and the WLA. Attended by upwards of 1,000 delegates, Room 105, level one services and interactive features. New applications such as lottery A presentation of responsible gaming case studies – what is being blogs and player story submissions will also be examined. previous World Meets in Vancouver (1996) and Albuquerque (2001) were considered major successes done in North America and around the world? by both organizations and there has been growing enthusiasm among the memberships for staging Tools, techniques and technology – optimizing retailer visits Friday, October 5: 10:45 am – 11:45 am Room 104, level one combined conferences on a more regular basis. Corporate and social responsibility – The WLA Responsible Technology has revolutionized sales calls, allowing retailers and Gaming Framework | Cascade ballroom A sales reps to focus on marketing and sales efforts. Tools such as Members of the WLA Corporate Social Responsibility Committee order pads, instant ticket vending machines and terminal-based ap- The organizers of World Meet ‘07 have faced the same basic challenge as their predecessors – how will provide an overview of the WLA Responsible Gaming Frame- plications help to make a sales representative’s limited time in front to connect the culture and traditions of regional lottery associations with the worldwide culture of work and updates about the tools and methods being developed of a store manager more productive. to support and monitor implementation by lottery organizations the WLA. In an increasingly interconnected world, rising to this challenge is key to the future of the around the world. Preparing our industry for tomorrow | Room 105, level one gaming sector as we know it. The WLA holds its own major Convention and Trade Show every two This session will highlight a variety of NASPL and WLA standards Coming through the storm – lessons learned from the Canadian programs, including the Global RFP Best Practice, the WLA Secu- years. Starting this year, WLA events on alternate years will systematically be coordinated with the prize payment controversy | Room 100, level one theater rity Control Standard© and the NASPL Standards Initiative (NSI). regional lottery associations. In 2009, for example, Polla Chilena de Beneficencia will host a joint Following the retailer prize payment controversies in several Ca- nadian provinces, a panel of Canadian lottery leaders will discuss CIBELAE/WLA event in Chile. the reviews by government officials and third-party experts, the A five-part education program procedural deficiencies they reported and the corrective action The World Meet ‘07 education track was built around the following that has been taken. five segments: Breakout sessions: communicating on a human scale Legal Roundtable | Room 101, level one • Operations and Administration Breakout sessions play a crucial role at any major sions on the Thursday and Friday. They cover an ex- Experts in and lotteries will discuss developments in • Sales conference, accounting for a sizeable proportion of tremely extensive range of subjects, ensuring that every the legal and legislative environment around the world. • Marketing and Communications the huge amount of information that is exchanged Louisville delegate finds something of interest and direct • Product Development and Innovation during the course of the educational program. Based relevance to their jobs – and can make a personal con- Best new online game | Room 104, level one • Potpourri around formal presentations, panel discussions or less tribution to the critical process of sharing information. This session will include presentations by finalists for the NASPL structured formats, they provide a perfect opportunity Best New Online Game award, a category just established this In addition to keynote presentations by prominent experts, each for lottery professionals to meet peers and address Thursday, October 4 | 3:45 pm – 4:45 pm year. Selections were based on the innovative aspects of the segment features four or more breakout sessions designed for max- shared concerns together. Because they focus on a US privatization initiatives and operating structures games, costs/benefits, strategic insight, and overall player appeal. imum relevance to international audiences. Offering a good bal- single topic, breakout sessions are welcomed by many around the world | Cascade ballroom A ance between North America and other regions was one of the top delegates for the high quality of the input they generate This session will review recent US lottery privatization New retail environments | Room 105, level one priorities of the organizing committee in charge of selecting panel and for providing a unique chance to compare notes proposals and examine three lottery operating struc- How are outlets such as airports and big-box retailers being members for these ses- and opinions with other subject-matter specialists. tures: state government subsections, quasi-government brought into the lottery retail fold. Presentations will cover Califor- sions. The World Meet ‘07 schedule includes breakout ses- lottery corporations, and non-North American licensed- nia’s experience with Costco, Ontario’s kiosk project with Wal-Mart

24 Autumn 2007 25 The Kentucky keynotes

World Meet ‘07 features a line-up of keynote speakers from outside the world of gaming whose insight is of direct rel- evance to the lottery business. They include a world-famous explorer, an international marketing guru, the woman who helped transform a small regional discount chain into a national fashion destination – and a rocket scientist turned mar- keting genius whose family-owned distillery has changed the world of American whiskey.

Maker’s Mark Distillery Federal Hill Keeneland Old Friends Farm Partner program: a true taste of Kentucky

The World Meet ’07 partner program has been designed to give visitors a true Day two – October 5 Old Friends Farm taste of what Kentucky has to offer. Over the course of two days, program par- This day starts at a working farm with ticipants will visit historic sites, meet famous racehorses, take in a day of rac- special significance in the heart of horse Robert Ballard Peter Dart Robyn Waters Bill Samuels country. Old Friends Farm is home to a ing at one of Kentucky’s most pristine thoroughbred tracks, and observe one of non-profit organization dedicated to pro- the world’s best-known bourbons being made – with a special twist at the end viding a dignified and comfortable re- One of the world’s most accom- An Oxford graduate who was As Target’s former Vice Bill Samuels’ life story reads tirement home for racing’s elite. Here plished deep-sea explorers, Dr. trained as a physicist, Peter President of Trend, Design, and like something out of a novel – of their visit! companions will see a tremendous collec- Robert Ballard is best known Dart has become a global mar- Product Development, Robyn he’s an engineer turned rocket tion of Grade 1 stakes winners and Hall for his historic discovery of the keting professional with over Waters helped a small regional scientist turned lawyer turned Day one – October 4 books sought lodging here during their of Fame champions including Bonnie’s Titanic. During his long career 30 years’ experience. He is discount chain become a na- president of one of the pre- Bourbon is the king of corn-based whis- travels; as a young boy Abraham Lincoln , the dam (or mother) of Kentucky he has conducted more than currently a senior manager at tional fashion destination. She mier bourbon distilleries in the keys! In 1795, bourbon production be- and his family stayed here, Gen. George Derby winner Silver Charm, and Popcorn 120 deep-sea expeditions us- London-based WPP Group, one has more than thirty years’ ex- world, Makers Mark. A rocket came one of the first industries in the Rogers Clark, Daniel Boone, and exiled Delights, one of the horses that portrayed ing the latest in exploration of the world‘s largest com- perience tracking and translat- scientist by training, Samuels state. The way bourbon is produced hasn’t French King Louis Philippe and his entou- Seabiscuit in the award-winning film. technology, and he is a pioneer munications services groups, ing trends into sales and profit. designed the thrust injection changed much over the past 200 years, rage stayed here, even painting murals on in the early use of deep-diving which employs 97,000 people Robyn provides a thought-pro- nozzle for the second stage and this day will give you a flavor for life the upstairs walls. There are noticeable Keeneland Race Course submarines. He has led or par- in 106 countries. WPP Group‘s voking environmental scan of of the Atlas 2 missile in 1964. in bourbon country and show you how bullet holes in the now faded paintings The rest of the day will be spent at one ticipated in missions including advertising agency holdings in- the marketplace that takes the He was fired shortly thereafter “Kentucky Nectar” is made. The day will and Jesse James is said to be responsible of the premier racetracks in America, the discovery of the German clude the Grey Global Group, listener deep into the hearts for what he describes as “in- start with a motorcoach trip to a place for them. Keeneland Race Course. For more than 70 battleship Bismarck, eleven Ogilvy & Mather Worldwide, and minds of the consumer. competence”, and a few years many people think only exists in song, My years, Keeneland has set the standard for warships from the lost fleet of Young & Rubicam and JWT. Her visual presentations chal- later his father asked him to Old Kentucky Home. Maker’s Mark Distillery some of racing’s richest traditions. With its Guadalcanal and exploration Dart serves as the Global Client lenge the audience to look at return to the family business. The day ends with a trip to one of the ivy-covered walls, tree-lined paddock and of the luxury liner Lusitania. Leader for Team Unilever, a trend “from the inside out” by “Dad said rocket fuel and whis- My Old Kentucky Home most famous bourbon distilleries in the picturesque surroundings, the track pre- multi-national company that focusing their attention on key were about the same any- Known as Federal Hill, this stately world, Maker’s Mark. Maker’s Mark is serves the tradition and ambiance of thor- owns many of the world‘s con- what’s important instead of way,” Samuels remembers. He Georgian Colonial mansion was visited the only operating distillery in the United oughbred racing. Before each race, horses sumer product brands in foods, just what’s next. She is the returned to the distillery in by Stephen Foster in 1852. He wrote the States to be designated a National Historic are saddled in the paddock with its stately beverages, cleaning agents author of The Trendmaster’s Loretto, Kentucky in 1967, and famous “My Old Kentucky Home” song Landmark. Companions will see how tall trees that will be vibrant with color in and personal care products. Guide: Get a Jump on What become president and CEO of after visiting the house. During the tour Maker’s is made by hand every step of the October. It all makes for a beautiful set- He spends time in many of the Your Customer Wants Next, Makers Mark in 1975. participants will be escorted by guides in way, from the antique roller mill crushing ting, unmatched by any other facility in markets where Unilever and The Hummer and the Mini: period costumes as they take in a snap- the grain to the giant cypress tubs full of the United States. Companions will have WPP have a significant interest, Navigating the Contradictions shot of home life in the South prior to the sour mash to the “white dog” (new whis- lunch at the track and enjoy the afternoon such as the US, China, India of the New Trend Landscape, Civil War. key) running through the “spirit safe”. At racing card before returning to Louisville. and Brazil and contributing author (along the end of the tour, participants have the with Tom Peters, Seth Godin Talbott Tavern option of creating a very special souvenir and Malcolm Gladwell) for From there it’s on to Talbott Tavern for – hand-dipping their own bottle of Makers The Big Moo: Stop Trying to lunch. Talbott Tavern is said to be the old- Mark in red wax to create the label’s sig- Be Perfect and Start Being est western stagecoach stop in America as nature seal. Remarkable. Fast Company the westward expansion brought explor- magazine featured her as one ers from the east into Kentucky. According of the top twenty “Creative to legend, figures straight from the history Mavericks” in 2004.

26 Autumn 2007 27 The case continues

Lynne Roiter, facilitator of the Global Sports betting and the law: the field is open Legal Network, is head of the WLA Montréal office and VP Corporate Affairs and Corporate Secretary at Loto-Québec.

The relationship between sport and lotteries is of the utmost importance to was a national problem with harmful ef- to prosecution for handling online gam- with the football clubs who have decided The Victorian Commission for Gambling fects that spread beyond the borders of bling transactions from the US. Under a to participate. The revenues will be used Regulation (VCGR) is the body that will both sides of this delicate equation. But the way the relationship is addressed the States that sanctioned it. In 1992, settlement this summer, Neteller not only to reimburse the clubs’ debts to the gov- have to approve a sporting event or class by lawmakers and judiciaries differs significantly from one continent to the the Professional and Amateur Sports forfeited US$136m and returned $94m ernment (over US$450m) and then fi- of events for betting purposes before any Protection Act made sports betting ille- to its US customers, but also admitted to nance club operations. To take part in the betting activity will be allowed to take next. From prohibition in the United States and schemes to improve financial gal. Under the legislation, no government violating US laws on Internet gambling scheme, the clubs will first have to provide place on them. To obtain this approval the transparency and public confidence in Brazil and Australia, to infringement entity or person may sponsor, advertise, and agreed to cooperate fully with US au- financial details of their operations, un- VCGR must determine that the events are promote, license or authorize a lottery, thorities in all matters relating to the on- dergo independent audits and participate not exposed to unmanageable risks, that cases in Europe, gaming legislators around the world have the bit firmly be- sweepstakes or other betting, gambling going investigations by the United States in the government’s social programs. they are administered by an organization tween their teeth. But are they pulling in the same direction? or wagering scheme based, directly or in- Attorney’s Office. capable of enforcing rules of conduct that directly (through the use of geographical Australia: boosting public confidence ensure their integrity, and that betting on reference or otherwise), on amateur or Neteller seems to have learnt from its In Australia, the Victorian Parliament re- them is not offensive or contrary to the As is the case with Internet gambling, the common practice by manufacturers that professional games or on the performance American experience, announcing in mid- cently adopted new sports betting legisla- public interest. United States has taken a prohibitive ap- make seat covers for specific cars, for ex- of athletes in such games. July that it was withdrawing its Israeli on- tion that can qualify as a first worldwide. proach to sports betting. Contrary to the ample, tour operators who organize bus line gambling payment services due to the The Gambling and Racing Legislation To benefit from the provisions of the Bill, European Union there has not been any trips to special events, and even makers of Sports lotteries conducted in Oregon and court decisions in that country as to the il- Amendment (Sports Betting) Bill 2007 re- sporting bodies must be recognized as a recognition of lotteries having a role to gadgets to help people choose lotto num- Delaware were exempted from the appli- legality of Internet betting providers offer- ceived assent on May 29, 2007 but has not “controlling body” by the VCGR. This rec- play in this area – in fact this role has been bers. The League failed to provide proof cation of the law, as were licensed sports ing online wagering to Israeli residents. yet come into force. ognition will only be given if the integrity legislatively denied. that sports betting was damaging its repu- pools in Nevada. However the law applies criteria of the law are met and if policies tation or its integrity. to all other states and effectively put an Brazil: greater transparency Based on the same principles as were ad- are in place for the purpose of investigat- In 1976, the Delaware State Lottery in- end to the expansion of legal sports bet- Under a new policy adopted by the opted last year for the Victorian racing ing suspicious activity. Betting providers troduced a sports lottery based on the When the Oregon State Lottery intro- ting in the United States. Brazilian government, the national lot- industry, the Bill aims to improve public must then reach an agreement with the outcome of American football games. The duced sports betting on basketball games tery operator Caixa Econômica Federal confidence in sporting events and provide controlling body about fee payments and National Football League (NFL) imme- in 1988, the National Basketball League Mobilizing in support of UIGEA will play an active role in helping solve the sporting bodies with a share of the rev- information sharing. diately sought an injunction to stop the went to court to try to stop it. Its argu- The professional sports organizations con- financial and transparency problems that enues wagered on their events. The minis- game, arguing that the lottery was infring- ments were basically the same as those tinue to be vigilant on the legislative front. football clubs have been experiencing in ter responsible for gaming has stated that ing its copyrighted calendar (database) raised by the NFL a decade earlier. They In a letter to the House Financial Services that country for the past several years. the Bill’s objective is to provide confidence and trademarks as well as profiting from were not successful in court and eventu- Committee, all five associations have also to all concerned that “every outcome with- the NFL’s notoriety and goodwill. ally the case was dropped. stated that they would oppose any legisla- Under a law that came into effect on July in a match is determined in the spirit of tion that would legalize and regulate non- 30 this year, football clubs from the top the game and free of manipulation”. The court did not agree. It found that the Lawmakers weigh in sports gambling, because they “do not three divisions will be able to register to lottery could use the information con- The courts having upheld the right of state believe that the differential treatment of participate in a revenue sharing plan for The Bill has an international dimension tained in the calendar as long as it pre- lotteries to offer sports betting, the US sports gambling and other gambling on- a new football pools game, Timemania as its regulatory framework will apply to sented it in a different manner (order of Congress intervened to prevent the spread line would be sustainable in the current (team mania) to be introduced by Caixa both Australian and overseas betting pro- matches, choice of matches, graphic pre- of this form of lottery. The professional environment”. Consequently the sports in 2008. Twenty-five percent of the reve- viders for sporting events taking place in sentation and other information on the sporting leagues all made representations organizations are strong supporters of the nues from this new product will be shared Victoria. documents) thus making it a result of its supporting the need for restrictive federal Unlawful Internet Gambling Enforcement own calculations, imagination, research legislation, claiming that sports gambling Act (UIGEA). and work and not that of the League. The court found that the lottery was not using Find out more Signed into law on October 13, 2006, the trademarks of the NFL or the football UIGEA gave the Federal Reserve 270 teams, since the name of a city, even if The WLA’s Global Legal Network is be- days to issue regulations establishing used in a team’s name, cannot be part of coming an increasingly valuable way for the responsibilities incumbent on finan- its trademark. WLA members to keep abreast of legal cial institutions to identify and block il- developments as they occur. Registered legal gambling transactions. The Federal Acceptable collateral service participants have access to more detailed Reserve did not meet the July 10 deadline Finally the court held that while the lot- information on the matters discussed here and it may be some time before the regu- tery could be benefiting from the public’s and on a wide range of other legal top- lations are published. interest in the NFL’s activities, this did not ics. For more information on the Network, by itself give it a right of action. The lot- please contact Lynne Roiter in Montéal at However, this should not be taken as a tery was offering a collateral service, and [email protected]. sign that payment processors and credit this is not illegal. On the contrary, it is a card companies will not be vulnerable

28 Autumn 2007 29 The case continues

Philippe Vlaemminck, Lotteries and sport: an EU perspective advisor to the WLA and EL on European and international legal questions

Sports betting is currently the central lems. It seeks to enhance the visibility of The same problem could occur in other body. The case has been taken up by the Nobody knows where check accuracy, and to establish fixture sport in EU policy-making, raise aware- jurisdictions where betting on horseraces Commission in the infringement proce- dates and times for football matches, were focus of the European Commission’s ness of the needs and specificities of the is organized to support horse breeding. dure against France, while Belgium was the battle will lead, not covered the Directive as they relate to infringement procedures against ten sector, and identify the appropriate level Noble and important as the cause may requested to provide a full explanation but clearly none of the the creation of the data. of further action at EU level. be, both the European Commission and about the Belgian policy. Nobody knows EU Member States. Unlawful Internet the EFTA Court consider it to be driven by where this battle will lead, but clearly Member States involved Not just a business relationship gaming operators face legal battles When the Commission met sport direc- business considerations. Similarly, in the none of the Member States involved intend intend to permit sport For lotteries, retaining the right to use tors from the EU Member States in July WTO Internet gambling case, the dispute to permit sport sponsorship by an illegal fixtures lists was logical, and the rulings as they attempt to gain visibility in this year, the discussions included the panel pointed to inconsistencies in US pol- remote gambling operator. sponsorship by an illegal came a welcome victory after years of un- sports and grab market share in sports issue of sport financing and the legal icy on Internet gambling. The Interstate remote gambling operator. certainty and battling in the courts. For framework with regard to gambling, par- Horseracing Act proved to be a bridge Data protection back in court BHB the loss was quite unexpected. They betting and there is also a widening ticularly Internet gambling. The meeting too far and was considered too business- Third, intellectual and commercial prop- had made substantial investment in cre- public debate about commercial and concluded that it was necessary to main- oriented to fall within the scope of public erty rights remain a thorny problem, es- ating a serious database including more tain state control over gambling in order order. pecially in the horseracing sector. Remote than only horseracing data. intellectual property rights as they to ensure funding for sports. At the same gambling operators have frequently used substantial part of a database in which a pertain to sports betting. time, Member States were encouraged to Sponsorship by remote operators data from protected racing databases as substantial investment has been made to The three quite different areas show how identify alternate sources of funding for Second, there is growing concern over well as pictures of well-known football obtain, verify or present the contents. This difficult the relation between sport and amateur sport given the uncertain future sport sponsorship that enhances the vis- players to support unlawful operations. right was. The database maker’s sui gen- lotteries can be – and how much tougher The White Paper on Sport recently ad- of the gambling market. ibility of unlawful remote gambling op- eris right is violated by the unauthorized it would be in a more liberalized gambling opted by the EU Commission specifically erators. This battle is emerging in various Recently ATG, the Swedish state-owned extraction and/or re-utilization of the con- environment. The sustainable future of recognizes the role of lotteries in this area: As a contribution to the reflection on the jurisdictions in the EU, where Bwin and monopoly on horserace betting announced tents of the protected database. sport, especially amateur and grass root “In many Member States sport is partly financing of sport, the Commission is to Unibet are indeed using sponsorship to it was taking Unibet to court for stealing sport, depends largely upon lottery sup- financed through a tax or levy on state- carry out an independent study on the gain market access. Bwin became the information from ATG’s horseracing da- Readers will remember the case in 2000 port. Private gambling operators simply run or state licensed gambling or lottery funding of grass-roots sport and sport for main sponsor of the Portuguese foot- tabase over a period of several years. The in which the British Horseracing Board do not provide the same level of support, services. The Commission invites Member all in the Member States from both public ball league and has a link on the home database includes race results, upcoming (BHB) sued William Hill over the unau- whatever they promise or claim, and how- States to reflect upon how best to maintain and private sources, and on the impact of page of the league’s website. This violates race information and other details. thorized use of BHB’s horse track data- ever visible they may be in the sports are- and develop a sustainable financing model ongoing changes in this area. Portuguese legislation, and in particular base on William Hill’s website. In three nas of the world. for giving long-term support to sports or- the sports betting monopoly of Santa Casa Four cases relating to football and horser- very different cases, Fixture Marketing ganizations.” Business goals de Misericordia de Lisboa, and the dispute acing databases have been referred to Ltd also took legal action against Oy EL Code of Conduct Financing sport through betting or related has been referred to the European Court the European Court of Justice to date. Veikkaus, Svenska Spel and OPAP over the To enhance this interaction between lot- State control needed products or services does indeed raise a of Justice in Luxembourg. Although the football cases were totally use of the Premier League fixture lists. All teries and the sport sector, European The White Paper covers both the societal number of problems. First, there is debate different from the horseracing case, the these cases were referred to the European Lotteries (EL) has adopted the EL Code role and the economic dimension of sport, about whether the financing of sport or The case of the Unibet cycling team raises ECJ took all the cases together. Court of Justice. of Conduct on Sports Betting, outlining and is the first comprehensive initiative on related activities can justify a restrictive similar questions. In court proceedings in fundamental rules of ethics that lotteries sport undertaken by the Commission since gambling environment or even be consid- France and Belgium, Unibet requested the Database protection within the EU is regu- The English judge who referred the BHB agree to uphold when organizing sport the Nice Declaration on the Specificity of ered an ancillary objective of gambling right to participate in the cycling events lated by Directive 96/9/EC, which defines case to Luxembourg did this with the con- betting. The President of UEFA has wel- Sport in 2000. restrictions. Betting on horseraces is seen organized by ASO, including the Tour a database as “a collection of independent viction that the ECJ would consider the comed the initiative in a letter to the as the optimal method for financing horse de France. ASO refused to allow Unibet works, data or other materials arranged sui generis right fully applicable. However, President of EL. The White Paper aims to provide strategic breeding in a number of jurisdictions, to compete in their races, citing anti- in a systematic or methodical way and in- Luxembourg’s surprising interpretation orientation on the role of sport in the EU but at the same time this causes serious betting laws in countries such as France dividually accessible by electronic or other of the right led to both BHB’s and Fixture and encourage debate on specific prob- problems to several governments. The and Belgium as the reason behind their means.” Marketing’s claims being denied. government of Norway, for example, was decision, which is now under scrutiny by criticized in the EFTA Court for maintain- the European Commission. Surprisingly, The Directive introduced a new form of As the European Court established, even ing a policy on horserace betting that was Unibet was supported in this endeav- protection, largely based upon an old though BHB and Fixture Marketing had solely driven by the intention to finance or by the Union Cycliste Internationale Scandinavian catalogue protection right. made substantial investments in develop- horse breeding. Betting on horseraces (UCI ), international cycling’s regulatory The EU’s “sui generis right” regulates the ing their sports database or fixtures list, was therefore considered to be “business- extraction and re-utilization of all or a those investments were related to the cre- oriented” – unlike other games of chance, ation of the data, which is not what the sui which could only be organized on a non- generis right tends to protect. profit basis. The Court decided that the resources used to draw up a list of horses in a race and

30 Autumn 2007 31 SPOTLIGHT People who make lotteries work

Clint Harris Executive Director, Minnesota State Lottery IT’S NO LONGER OUT THERE... IT’S HERE.

When Clint Harris in Mobridge, South Dakota (population Secretary, and Treasurer. He was recently arrived from South 3,500) where his father worked on minis- elected chair of the Powerball group of the Dakota to become try to Indian reservations in the area. Multi-State Lottery Association (MUSL), Minnesota’s second making him responsible for the strategic lottery director on After graduating from high school Clint direction of the country’s most widely dis- October 11, 2004, attended Northern State University in tributed lottery game. he did so under cir- Aberdeen, South Dakota, where he earned cumstances faced a Bachelor of Science degree. He later Setting standards of leadership by few others in the received a Master’s degree in Business Under his direction, the Lottery hosted lottery industry. His Administration from the University of the 2005 NASPL annual conference and appointment followed the death of George South Dakota. While getting his two de- earlier this year played host to the WLA Andersen, the Lottery’s longtime director, grees, he also began a 17-year career Academy seminar on Key Performance and the release of a legislative audit criti- in the retail grocery business, working Indicators. Harris has also been a lead- cal of the Lottery’s financial and market- for a large independent grocery store in er in NASPL’s standards initiative. “Our ing practices. While the initial response Aberdeen. This proved to be of great value growth depends on our success in working to the audit had fallen to Interim Director for a career in the lottery industry. “We with a changing retail environment,” he Mike Vekich, it was up to Harris to imple- were a lottery retailer,” Harris recalls, explains. “The development of industry- ment many of the recommendations, to “and so in addition to everything I learned wide standards is critical to our ability to re-energize a badly demoralized staff, and about managing a business, I learned work successfully with the multi-state and to continue the rebuilding effort Vekich about selling lottery tickets, and I learned multi-national corporations that have an had begun. it from the retailer’s perspective. When I increasingly large presence in the retail environment.” “Clint Harris has a remarkable track re- cord of careful stewardship and solid Harris has also continued Minnesota’s revenue growth in South Dakota,” said leadership role in corporate social respon- Minnesota Governor Tim Pawlenty when sibility. “We work very closely with the or- he announced his selection of Harris. “We ganizations that assist problem gamblers are extremely fortunate to have found at both the state and national level and such an effective and responsible leader have been involved in the development of like Clint Harris to head up the Minnesota talk to our retailers, I know what they are the WLA Responsible Gaming Framework. Lottery.” The Lottery’s record since then up against and I know how the Lottery fits It is my goal to be the first US lottery to The IMAGINETM Terminals from GTECH: bears out Governor Pawlenty’s confidence. in with the rest of their business. I can ex- achieve Level 4 of the framework, and A wide array of innovative features and thinking. Harris’ three years at the helm are the plain the value of the Lottery in terms they I hope every other director will strive three highest for sales and revenue in the understand.” for this as well. It’s the right thing to do, The look is lean and contemporary. The functionality is just as progressive. GTECH’s newest 17-year history of the Lottery. and it needs to be a top priority for every lottery terminal, the IMAGINE, represents a monumental breakthrough in point-of-sale design Harris joined the South Dakota Lottery in member of the WLA and NASPL.” Harris and function with its never-before-seen ImageCamTM digital camera technology. To better serve Growing up in the Philippines 1993 as a research analyst and was named adds that the Minnesota State Lottery for the needs of individual retailers, GTECH offers the IMAGINE as both an integrated and modular Yet Harris’ path to the position was any- director of administration two years later. the first time has included specific social terminal. Contact your local GTECH representative to learn more about the IMAGINE. thing but conventional. He was born in Governor Bill Janklow appointed him act- responsibility goals and objectives in the New Jersey but spent much of his child- ing executive director in May 2000, and Lottery’s strategic plan. hood in the Philippines, where his fa- three years later Governor Mike Rounds ther worked as an Episcopal priest. “My officially appointed him to the executive Along the way, Harris married his college time in the Philippines was a very valu- director position. His four years at the sweetheart. Clint and Dawn have been able learning experience,” says Harris. “I helm in South Dakota resulted in four married more than 30 years and have learned how to adapt to a completely dif- years of record transfers of revenue to three children: Eric, Chad and Samantha, ferent culture and what it is like to be a the State. as well as three grandchildren. And the INTEGRATED TERMINAL TICKET SCAN MODULAR TERMINAL member of a minority group.” These les- avid baseball fan has discovered a side sons would prove useful when the fam- Since then, Harris and the Minnesota State benefit to the move to Minnesota. “I now ily returned to the United States, where Lottery have become known as industry can buy season tickets to my beloved he attended school first in inner-city New leaders in North America. Clint is finishing Minnesota Twins.” Jersey and then in a mining community his term as NASPL President and previous- in rural Pennsylvania before winding up ly served the association as Vice-President, GTECH® is an advocate of socially responsible gaming. Our business solutions empower customers to develop parameters and practices, appropriate to their needs, that become the foundation of their responsible gaming programs.

32 Autumn 2007 33

GTECH-18144 WLA Panorama ad.indd1 1 8/17/07 5:16:29 PM www.aceinteractive.se The learning curve WLA Academy Upcoming seminars

November 25-28 Responsible Gaming Framework of lottery will be increasingly interactive, Creative Sports Betting Workshop and Seminar, participants traveled to Helsinki seeking Punta del Este, Uruguay Brisbane, Australia answers to the following questions: May 29-June 1, 2007 WLA seminar supported by CIBELAE • How are these changes affecting lotter- For more details and a complete list of The Future is Our Game Thirty executives from lotteries and ies today and what do we need to do to other organizations gathered in Brisbane stay ahead of the game? 2007 WLA seminars, please visit our to share experiences and support the • What is entertaining for the consumer website: www.world-lotteries.org WLA Responsible Gaming Framework and what do consumers perceive as under the inspiring leadership of Golden added value? Casket CEO Bill Thorburn. Presentations • How can lotteries use interactivity to WLA Conventions by outside experts, including Graham increase business? Paterson from the Westpac banking October 19-24, 2008 organization, provided solid learning from In a brief overview of lottery interactiv- Discover the island of Rhodes non-lottery enterprises, underpinning the ity worldwide, it was established that the 2008 WLA Convention and Trade Show need for a solid, trusted framework for potential of new technologies has not yet hosted by OPAP. Corporate Social Responsibility in general been fully realized. The presentations that Rhodes, Greece and responsible gaming in particular. followed confirmed that consumers do indeed want interactivity and that online The WLA Responsible Gaming Framework gaming can and does provide it. However, was enhanced and adjusted to fit the a brand will never be stronger than its opportunity and immense potential for the The ACE Interactive™ modular server based practical realities faced by lotteries ev- perceived value. Consumers want to get worldwide lottery community and we look ery day. Under the guidance of Anne involved but only if they perceive added forward to continuing this track of the system architecture is developed to enable Pattberg and Janet MacBeth, specific el- value. Creating a good time for consumers WLA Academy curriculum in the future. easy integration with external systems, products and ements of the Framework were updated. is creating value for them, and this is es- The Framework is now ready for imple- sential in online gaming. Social interaction Erewhon case study program games. Based on industry de facto standards, it gives mentation (see page 10). and value-adding content are therefore Mangalia, Romania key success factors for online gaming. June 17-21, 2007 you full fl exibility and freedom of choice. Key questions raised by the participants at the Brisbane seminar included: Online poker was a hot topic at the Twenty-two eager lottery profession- • How does this framework help me to Helsinki seminar. The onslaught of private als from around the world gathered in Our entire business model is based on openness. run my lottery more responsibly online poker rooms has put pressure on Romania to provide the Erewhon State From system software to hardware, games and • What does my lottery need to do to state lotteries, and Svenska Spel is one of Lottery with guidance on numerous real- become and stay a benchmark for re- the first to beat the private poker rooms at life lottery problems and opportunities. services. Our Open Content Space gives you sponsible gaming? their own game. Groups of five or six participants got to- • How do I conduct a self-assessment? gether to develop strategies and day-to- access to a wide variety of games from top suppliers. • What specific elements must be Gaming via mobile handset is another day responses to issues ranging from There is also the possibility to continuously adapt checked? growing trend. As lotteries move ahead, scam tickets to lost tickets and retailer • How do I apply for this best practice it will be important for them to integrate mistakes. them to the ever changing market conditions. certification? mobile services into the next generation of interactive content. Here again, Svenska WLA members from Australia to Greece Participants concluded that the new WLA Spel has been expanding its value propo- and from Mali to the United States were Now and in the future. Responsible Gaming Framework, with its sition to consumers in Sweden, extending represented, and gave the solutions their four different levels, is robust, workable the gaming experience from the web to best collective energy. It must be said and necessary. All members are expect- the mobile phone. that the energy put into the sessions by ed to become active ambassadors of the Guy Simonis stimulates participants to Framework and thus build our joint repu- The mobile entertainment market is grow- do their very best and more! The WLA tation as the global platform for Building ing by up to 20% a year and the trend is thanks Loteria Romana for their hospital- Sustainable Gaming Excellence! expected to continue. Participants agreed ity, and looks forward to using Guy’s think- that convergence is necessary to meet the ing again for the Lottery Business from A Interactive Gaming demands created by the new technology. to Z seminar in Togo from August 28-30, Joint WLA/EL seminar The same content available on the web 2007.

Helsinki, Finland must be adaptable to multiple devices. Australia. ACE INTERACTIVET™ and the INTERACTIVE LOGO are trade marks or registered of Aristocrat Technologies June 10-13, 2007 The WLA thanks Veikkaus and European Electronic media are evolving ever faster, Lotteries for their cooperation in making changing consumer needs and habits on this an exciting and informative seminar. Founded in 2003 as a focused effort to develop and market the next a daily basis. Recognizing that the future Interactive gaming is clearly an area of generation of systems for operations of interactive gaming terminals, ACE Interactive ACE Interactive™ is today a wholly owned subsidiary 34 Autumn 2007 of Aristocrat Leisure Ltd. 35

ACE_The future is our game_WLA f1 1 2007-02-06 13:18:57 Platinum Contributors

WLA Contributors 7D?D:KIJHOOB7KD9>7I9H7J9>8:CH:9 E6I:CIE:C9>C< <6B:H7N ly new approach to IT platform design that The supplier industry is helping to har- optimizes the delivery of services while ness the latest technology at every level capturing important insight about the cus- of the lottery operation. As well as pro- 210x145 16/8/07 10:47 Page 1 tomers using them. viding state-of-the-art terminals for lot- tery points of sale, IBM is working with Know your customer the Danish Gaming Board to develop and maintain sophisticated control systems, Lottery operators and their suppliers are helping to ensure that adequate security well aware of the growing importance of measures are in place and that the correct customer databases – not only as a mar- amount is paid to bona fide winners. keting tool but as a way of protecting the integrity of the lottery and promot- Content is king ing responsible gaming. ACE Interactive’s parent company Aristocat, for example, However they are distributed, what sells recently joined forces with a Nevada- lottery products is high-quality content. based company specializing in Customer Pollard Banknote of Canada recently add- Relationship Management and business ed Mr. Bean™ to its licensed properties intelligence solutions for gaming compa- portfolio. Associated with the type of side- nies. splitting, universal humor that appeals to a wide demographic, the character is a Ireland’s largest bookmaker, Paddy Power, perfect fit for an instant ticket. And like has selected Boss Media to deliver an on- the character himself, Pollard’s timing is line gaming system based on the Swedish impeccable, coinciding with the world- company’s latest platform. It in- wide release of Mr. Bean’s Holiday, which cludes a sophisticated back-office toolkit has already grossed more than $160 mil- that will be integrated with the existing lion at the box office. customer base and payment solution, en- Silver Contributors abling cost effective communication with the established player database.

Whatever the distribution channel, gam- ing operators need to handle enormous quantities of data. From its base in the graphical industry, Strålfors is now also a market leader in “information logistics”.

36 SG CSP #22 WLA ad:Layout 1 7/13/07 2:38 PM Page 1

a publication of the Issue no. 24, Autumn 2007 World Lottery Association

Good Causes EXCELLENCE begins at home

Stakeholder engagement

Hong Kong Jockey Club Chairman John Chan Cho-chak encourages employees to serve the community by active participation in vol- unteer work themselves.