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Public Gaming Magazine May/June 2017 MAY/JUNE 2017 PGRI ࠮ >VTLU»Z0UP[PH[P]LPU3V[[LY`3LHKLYZOPW PUBLIC ࠮ ;OL-PNO[(NHPUZ[0SSLNHS¸:LJVUKHY`¹ 3V[[LYPLZ ࠮ >OH[PZ(¸:VJPL[`3V[[LY`¹& GAMING ࠮ ;OL>PYL(J[>HZ(SYLHK`9LZ[VYLK0U I N T E R N A T I O N A L Lottery Today: To Transform Or Be Disrupted (ZPH7HJPÄJ3V[[LY`(ZZVJPH[PVU(73(*OLUNK\*OPUH Player Registration = Revitalization ,ɈLJ[P]L3V`HS[` of the 9LZWVUZPISL.HTPUN Hong Kong and CSR Programs Jockey Club Åsne Havnelid, Norsk Tipping NOVOMATIC LOTTERY SOLUTIONS GROWTH COMES FROM INNOVATION Companies that do not change or who do not innovate do not survive – ask a formally famous maker of mobile phones. Innovation does not only mean survival, it helps us to thrive. Innovation always brings value; innovation delivers an improvement on an existing condition. That value is a key component of sustainable growth. Perpetuating invigorated, sustained growth is the purpose of NOVOMATIC Lottery Solutions (NLS). Let us show you. NOVOMATICLS.COM Lottery Leaders Don’t Cut Corners. As leaders, you take your business seriously, and so do we. We don’t cut corners. Lottery regulators, operators and suppliers have come to rely on us for the most accurate and efficient testing and our commitment to gaminglabs.com the lottery industry is as strong as ever. We understand you have a world of choices, which is why no other test lab in the world serves more lottery clients. When It Comes to Quality, Leave Nothing to Chance. 4(@1<5,7<)30*.(405.05;,95(;065(33 INSIDE THIS ISSUE DEPARTMENTS 10ܷFrom the Publisher Paul Jason PUBLISHER & CHIEF EXECUTIVE OFFICER 33ܷ :JLULZMYVT(ZPH7HJPÄJ3V[[LY`(ZZVJPH[PVU(73( Paul Jason Conference in Chengdu, China [email protected] 76ܷ7\SZLVM[OL0UK\Z[Y`5L^Z PRESIDENT Susan Jason [email protected] 82ܷ Philippe Vlaemminck The Impact of the General Data Protection Regulation on Lotteries in Europe: ART DIRECTION/DESIGN From Compliance to Governance; Philippe Vlaemminck, Partner & Jenna Diana Stuart Auwerx, Senior Associate, Pharumlegal Brussels [email protected] HONORED FOUNDERS FEATURE INTERVIEWS Doris & Duane Burke CONTACT INFORMATION T: +425.449.3000 F: +206.374.2600 14ܷ 3OD\HU5HJLVWUDWLRQ (σHFWLYH/R\DOW\ 5HVSRQVLEOH*DPLQJDQG&653URJUDPV For email address changes, subscription requests and Åsne Havnelid requests to be placed on *OPLM,_LJ\[P]L6ɉJLY our e-Newsletter distribution list, contact: [email protected] PGRI, Inc. 218 Main Street, #203 Kirkland, WA 98033 FEATURE ARTICLES PublicGaming.com SUBSCRIPTIONS 12ܷ :RPHQâV,QLWLDWLYHLQ/RWWHU\/HDGHUVKLS Annual Public Gaming $&DOOWR$FWLRQ International magazine subscription rates: United States: $145 USD 18ܷ 0DQDJLQJ3HRSOH$QG2SHUDWLRQV7KURXJK$Q Canada & Mexico: $160 USD All other countries: $225 USD 2UJDQL]DWLRQDO7UDQVIRUPDWLRQ (YHO\Q*RK6HQLRU'LUHFWRU3HRSOHDQG&XOWXUH6LQJDSRUH3RROV PUBLIC GAMING INTERNATIONAL MAGAZINE Published six times a year and 22ܷ 3URYLQJ7KH5HDO%XVLQHVV9DOXH2I distributed to readers all around %LJ'DWD6WHSV7RZDUGV%LJ the world. Electronic version is 'DWD'ULYHQ([FHOOHQFH e-mailed and is also available on 3HWHU=ÃOOIRUPHU933URGXFW0DUNHWLQJDQG$QDO\WLFVDW6YHQVND6SHO our news website: QRZLQGHSHQGHQWFRQVXOWDQWDQGFKDQJHDJHQWDW=,QVSLUHG$% www.PublicGaming.com. May/June 2017, 24ܷ 1DYLJDWLQJ7KURXJK7KH1RLVH2I'LJLWDO Volume 43, No. 3 © 2017 all rights reserved. 7UDQVIRUPDWLRQ Public Gaming Research Institute 0DUNXV:DOWHU3Z&6RXWK(DVW$VLD&RQVXOWLQJ ISSN: 1042-1912 4 // PUBLIC GAMING INTERNATIONAL // MAY/JUNE 2017 FEATURE ARTICLES (CONTINUED) Visit Us Online Our Family Of Websites 26ܷ &DXVHVRI'LVUXSWLRQDQG7UDQVIRUPDWLRQLQWKH/RWWHU\ DQG*DPLQJ,QGXVWU\ .DPOHVK9LMD\*URXS&(26XJDODQG'DPDQL*URXS 3XEOLF*DPLQJFRP 28ܷ 7KH5HYLWDOL]DWLRQRIWKH+RQJ.RQJ-RFNH\&OXE industry news & information 3*5,7DONVFRP 30ܷ %ORFNFKDLQDQGWKH/RWWHU\,QGXVWU\ videos of conference presentations $ODQ/HH&KLHI([HFXWLYH2τFHU5LVNVLV7HFKQRORJ\ 3XEOLF*DPLQJRUJ PGRI conference information 36ܷ 7KH:LUH$FW:DV$OUHDG\5HVWRUHG,Q$/HJDO 2SLQLRQ%\7KH86'HSDUWPHQW2I-XVWLFH 3*5,'LJLWDO/LEUDU\FRP 0LFKHOOH0LQWRQ)HOORZDWWKH&RPSHWLWLYH(QWHUSULVH,QVWLWXWH magazine archive of past issues 3*5,'LUHFWRU\FRP 38ܷ /RWR4XÒEHF2σHUV3OD\HUV%HVW6KRWDW:LQQLQJ listing of lotteries and vendors 0LOOLRQ &$' ZLWKWKH8OWLPDWH*DPH 6FLHQWLðF*DPHV 3*5,$ZDUGVFRP Showcase of industry honorees 41ܷ $OWHUQDWLYH)DFWV5RXQGWDEOHRQ5HJXODWRU\,VVXHV recognized by the 0RGHUDWRU*RUGRQ0HGHQLFD([HFXWLYH'LUHFWRU0DU\ODQG/RWWHU\ Lottery Industry Hall of Fame 3DQHOLVWV PGRI Lifetime Achievement Award 0DUN+LFKDU3DUWQHU +HDGRI*DPLQJ/DZ3UDFWLFH+LQFNOH\$OOHQ/DZ)LUP Sharp Award for Good Causes %LOO0XUUD\9LFH3UHVLGHQW *HQHUDO&RXQVHO1RUWKVWDU1HZ-HUVH\/RWWHU\*URXS /\QQH5RLWHU$FWLQJ3UHVLGHQWDQG&(2&RUSRUDWH6HFUHWDU\DQG9LFH3UHVLGHQWRI Lottery Industry Statesman /HJDO$σDLUVDW/RWR4XÒEHF and Stateswoman Award 3KLOLSSH9ODHPPLQFN0DQDJLQJ3DUWQHUDQG+HDGRI*DPLQJ/DZ3UDFWLFH Rebecca Hargrove Mentorship Award 3KDUXPOHJDO/DZ)LUP Collaboration Award 44ܷ 7KH'DPDJHWR%UDQG/RWWHU\&DXVHGE\/RWWRODQG SUBSCRIBE DQG,OOHJDOì6HFRQGDU\ú/RWWHULHV$&DOOWR$FWLRQ TO OUR FREE DIGITAL NEWSLETTERS 47ܷ /RWWRODQG/DXQFKHV:RUOGPLOOLRQV7KH:RUOGâV)LUVW *OREDO/RWWHU\ Receive our daily newsletters 50ܷ 'ULYLQJ5HYHQXHV$FURVV7KH0XOWL(QWLW\/RWWHU\ at no charge, published 5 times a week to bring you the latest (FRV\VWHP breaking news in the global lottery ,175$/27 industry. Send an e-mail to: [email protected] with “add to Daily Digest list” 52ܷ 6WDWH/RWWHULHVâ3DWKZD\7R6XFFHVV,Q$:RUOG2I in the subject line. 2SHUDWRU&RQVROLGDWLRQ$QG*OREDO6FDOH -RQL+RYL([HFXWLYH'LUHFWRU6WDWH/RWWHU\%XVLQHVV.DPEL 54ܷ $QDO\WLFV 5HVHDUFK&RQYHUJHQFHDW,*7âV6SULQJ 5HVHDUFK([FKDQJH 6 // PUBLIC GAMING INTERNATIONAL // MAY/JUNE 2017 FEATURE ARTICLES (CONTINUED) 56ܷ 6SHHFKE\6DUDK+DUULVRQ&KLHI([HFXWLYH 8.*DPEOLQJ&RPPLVVLRQWRWKH6RFLHW\/RWWHULHV &RXQFLO$QQXDO&RQIHUHQFH 58ܷ 6HFUHW6DQWD,QWHUDFWLYH3URPRWLRQ6HWV86,QGXVWU\ 5HFRUG:LWK0LOOLRQ(QWULHV 6FLHQWLðF*DPHV 60ܷ 3UHYHQWLQJì'HDWK%\$7KRXVDQG&XWVú 12920$7,&/RWWHU\6ROXWLRQV 62ܷ 0RGHUQL]LQJ5HWDLO&ORVLQJ7KH&RQVXPHU'DWD*DS 'DQQ\%RJXV7KH'LJLWDO*DPLQJ*URXS 64ܷ 0RELOH(YROYHG3ODQQLQJIRU:KDW&RPHV1H[W -LP$FWRQ/RWWHU\&RQVXOWDQWDQG3*5,HGLWRULDOFRQWULEXWRU 66ܷ 6RFLDO0HGLD52,7KH(OXVLYH0HDVXUHPHQW /HH6WXDUW0DQDJHPHQW&RQVXOWDQW$QG(GLWRULDO&RQWULEXWRUIRU3*5, Atlanta 6J[VILY 69ܷ 8QGHUVWDQGLQJ$WWHQWLRQLQD6KLIWLQJ/DQGVFDSH 6KDDQ&RHOKR9LFH3UHVLGHQW9D\QHU0HGLD/RQGRQ 05;/,;/*,5;<9@ ܷ .96>;/>(: 70 $UWLðFLDO,QWHOOLJHQFH$6PDUWHU)XWXUHIRU*DPLQJ )(:,+65796+<*; /HH6WXDUW0DQDJHPHQW&RQVXOWDQWDQGHGLWRULDOFRQWULEXWRUIRU3*5, 3(<5*/,:05;/, :;*,5;<9@ 80ܷ ,QVSLUHG(QWHUWDLQPHQW9LUWXDO6SRUWVIRU/RWWHU\ +0.0;(30A(;065/(: ),*64,;/,+90=,9 6-.96>;/ :(+23(726((<28 7+(5(9,6,7 38%/,&*$0,1*25* 25)2//2:8621 7:,77(5)25 &21)(5(1&( ,1)250$7,21 &2+267('%<7+( *(25*,$/277(5< 8 // PUBLIC GAMING INTERNATIONAL // MAY/JUNE 2017 From the Publisher hat a pleasure and honour it is to be invited to “Significant shifts in market share and fortunes occur not Wparticipate in and cover the Asia-Pacific Lottery because companies try to play the game better than the compe- Association (APLA) Lottery Today: To Transform tition… but because they change the rules of the game.” or be Disrupted conference in Chengdu, China. I Costas Markides, Professor of Strategic Leadership at London so value the graciousness of our hosts, the quality of the program Business School and speakers and entire conference experience, and the friendships I made. Chengdu is itself representative of the conference theme The “rules of the game” are changing in all industries. And that is of Disruption and Transformation. The population of the city certainly true in the Lottery industry. In spite of the relentless break- has doubled over the last sixteen years to over 14 million people. ing of the rules by illegal operators, and in spite of constraints on our And it is now a magnificent city - clean, modern, well-organized, own ability to “change the rules of the game”, Lottery continues to an overall delightful “consumer experience”. grow its revenues year after year, and that growth comes on top of a revenue baseline that delivered over $76 billion in net funding to The China Welfare Lottery and the China Sports Lottery are society in 2016. That is far more than any other gaming category the two biggest lotteries in the world. Each sold over $25 Billion pays back to society in the form of taxes or any other form. USD in 2015. That’s 25% more than the third biggest lottery in Stéphane Pallez (CEO of Française des Jeux and Chair of the the world. And that is in spite of a per capita spend on Lottery Public Affairs Coordination Committee for the European Lotteries) of less than $2 per month. One of the least penetrated markets made reference to the above quote by Costas Markides in her presen- in the world has produced the two biggest lotteries in the world. tation at the Lottery Today: To Transform or be Disrupted APLA With a population of 1.4 billion people, China is itself in quite conference in Chengdu, China. Rules, regulations and laws serve the state of transformation. to protect the interests of true innovators who produce real value for their customers and society. Ms. Pallez explains “Effective regula- The hallmark of the Asia-Pacific Lottery region is diversity. 160+ tion should actually promote innovation and allow adaptation to representatives from China, Australia, Malaysia, Singapore, Japan, consumers’ demands and needs.” Korea, Philippines, New Zealand, Taiwan, Thailand, Vietnam, Next up is the European Lotteries Association (EL) Congress Cambodia, Hong Kong participated in Lottery Today: To in Krakow. This is a special event
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