photo: Henry Hou Software Automation CRDC (China Research Development Center) 1 Beijing, China Ahead of the Game SUSTAINABILITY REPORT 2018
2 IGT - SUSTAINABILITY REPORT 2018 As the world’s leading gaming Company, we are focused on supporting our industry, our communities, and our world. Our best-in-class solutions respect both people and the environment, while delivering innovation and excellence to keep gaming fun for all.
photo: Valerio Artusi Betting Product Dev Marketing Rome, Italy
3 Table of Contents
IGT Global Footprint 7 Letter from the CEO 10
About IGT 13 Profile 13 Mission, Vision, Values 14 Governance 15 Anti-Corruption Compliance and Ethics 16 Products and Services 17 Regulatory Framework and Recent Regulatory Changes 19 Focusing on Our Stakeholders 23
Advancing Responsibility 39 Protecting People, Products, and Processes 39 Responsible Gaming 48
Partnering with Our Customers 69 Listening to Our Customers 69 Leading Innovation 74 Responding to Our Customers’ Needs 79
Valuing Our People 89 Fostering a Positive Organizational Climate 89 Engaging Our Employees 96
4 IGT - SUSTAINABILITY REPORT 2018
Growing with Our Supply Chain 105 Selecting Our Vendors 105 Environmental Assessment of Our Suppliers 106 Respecting Human Rights in the Supply Chain 107 Conflict Minerals 108
Supporting Our Communities 113 Being Part of Our Communities 113 Investing in Projects for Our Communities 119
Caring for the Environment 129 Approach and Commitment 129 Materials Consumption 131 Energy Consumption 133 Emissions 135 Waste 136 Water 138
Appendix 141 Methodological Note 141 Social KPIs 145 Independent Auditors’ Report 149 GRI Content Index 152
5 6 IGT Global Footprint GRI: 102-4 100+ COUNTRIES WHERE WE OPERATE
50+ COUNTRIES WITH EMPLOYEES
7 11,000+ SUPPLIERS
12,100 EMPLOYEES
8 IGT - SUSTAINABILITY REPORT 2018
9 Letter from the CEO GRI: 102-14
Dear Readers, We have also taken steps in 2018 These results were made possible to support the United Nations’ by IGT employees’ dedication 17 Sustainable Development Welcome to the 12th annual IGT to fostering a safe, diverse, and Goals (SDGs). The SDGs and Sustainability Report. inclusive workplace aligned with their specific targets refer to the IGT’s business strategy and core 2030 Agenda for Sustainable values. During IGT’s first-ever Each year, the report grows Development, a 15-year plan to end Global Giving Week, hundreds of richer as we document how we’re extreme poverty, fight inequality our colleagues took a paid day off to improving our commitment to and injustice, and protect the planet. volunteer in their local communities, sustainable growth. We understand Of the UN’s 17 SDGs, IGT has from Rhode Island to Barbados, that achieving our business goals identified nine that the Company Texas to Italy, Nevada to China, requires high standards of integrity can influence, and in 2018, we have and many places in between. In and ethical conduct, professional carried out a series of initiatives as addition, IGT’s Office of Diversity development, the health and part of our long-term plan. and Inclusion was launched in 2018 safety of our employees, a positive to implement a global strategic plan impact on the communities where that supports a fair organizational we live and work, dedication to Within this global agenda, our aim is to provide value for all our culture in which all employees feel diversity and inclusion, and a valued, respected, and engaged. continued commitment to programs stakeholders, including creating solutions that help our customers Only one year later, the office has and initiatives that protect the positively impacted numerous environment. protect their players. IGT has consistently strengthened its policies and practices while engaging commitment to Responsible employees through Employee IGT’s sustainability strategy relies Business Resource Groups. on recognizing all its stakeholders’ Gaming in 2018, with recertification by the World Lottery Association legitimate interests, communicating We will continue seeking new and openly through ongoing dialogue, (WLA) for its Corporate Social Responsibility Standards and diverse ways to achieve sustainable managing direct and indirect effects and responsible growth. I invite on all stakeholders, acknowledging Certification Framework; an intermediate assessment by the you to browse the following pages and minimizing any potentially and learn more about how IGT is negative impact, and adopting Global Gambling Guidance Group (G4) for our Responsible continuously striving to be Ahead of transparent and accountable the Game. practices. Gaming accreditation; and Internet Responsible Gambling Compliance Assessment Program (iCAP) Sincerely, Along the way, we’ve improved recertification. the number and quality of the sustainability initiatives we undertake. Most important, we are constantly The Company is now able expanding our goals. In 2018, IGT to gather, monitor, and store joined the United Nations Global quantitative and qualitative Compact network, the world’s environmental data from every IGT largest corporate sustainability office for compliance purposes and sustainability matters. We have initiative, to align strategies and Marco Sala operations with universal principles increased data comparability and CEO related to human rights, labor, the accuracy to easily see year-over- environment, and anti-corruption. year differences. International Game Technology PLC
10 IGT - SUSTAINABILITY REPORT 2018 About IGT
photo: Maria Grazia Chimenz CSR Rome, Italy
11 About IGT
12 IGT - SUSTAINABILITY REPORT 2018 About IGT
ProfileGRI: 102-3; 102-7 IGT operates and provides an integrated portfolio of innovative International Gaming gaming technology products and Technology PLC is the services across all gaming markets, global leader in gaming. It including lottery management enables players to experience services, online and instant lottery their favorite games across systems, instant ticket printing, all channels and regulated electronic gaming machines, segments, from gaming sports betting, digital gaming, and machines and lotteries to commercial services to customers digital. in more than 100 countries.
The Company is headquartered in London, with principal operating facilities located in Providence Financial Highlights (Rhode Island, U.S.), Las REVENUES (US million $) Vegas (Nevada, U.S.), and Rome (Italy). Research 2018 and development, and 4,831 manufacturing are mostly 2017 centralized in North America. 4,939
We are the global leader in gaming
Approx $5 billion 12,000+ $263 million 100+ in revenue employees worldwide spend in R&D jurisdictions of operation
13 ABOUT IGT
space; and use the power of its understanding of central systems and connectivity to define the future of gaming.
Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise, and leading-edge technology, IGT’s gaming solutions anticipate the demands of consumers wherever they decide to play. The Company has a well-established Mission, Vision, Values GRI: 102-16 local presence and relationships with governments and regulators IGT’s mission is to be the global in the countries where it operates innovation leader in the gaming around the world, and creates industry. value by adhering to the highest standards of service, integrity, and The Company’s vision is to responsibility. combine the best of its legacy companies to enhance and At IGT, responsibility is one of build its capabilities; deliver the core values woven through content, technology, and every aspect of what we do expertise that drive customer as a global company. IGT is and player demand; continue committed to the principles of to grow leadership in the being responsible, collaborative, lottery and gaming space, and authentic, passionate, and become a leader in the digital pioneering.
Be the innovation leader in the gaming industry
Create content that Develop technology Provide services Engage people Grow the global entertains and drives that empowers that harness the who deliver gaming industry player demand players, retailers, power of our beyond and operators oering expectations
14 IGT - SUSTAINABILITY REPORT 2018
Governance GRI: 102-18 standards of the New York Stock required by the Company Articles. Exchange (NYSE). International Game Technology IGT’s Board of Directors has made PLC is a company organized under As of March 1, 2019, IGT’s Board an affirmative determination that the laws of England and Wales and of Directors consists of 10 directors. the members of the board meet qualifies as a foreign private issuer Seven of the current directors the standards for independence under the rules and regulations of were determined by the board to set forth in the parent’s Corporate the U.S. Securities and Exchange be independent under the listing Governance Guidelines and Commission (SEC) and the listing standards and rules of the NYSE, as applicable NYSE rules.
At March 1, 2019, the parent’s directors and certain senior managers are as set forth below:
Lorenzo Pellicioli(1) Chairperson of the Board; Non-executive Director James F. McCann Vice-Chairperson of the Board; Lead Independent Director; Non-executive Director Paget L. Alves Independent Non-executive Director Alberto Dessy Independent Non-executive Director Marco Drago(1) Non-executive Director Patti S. Hart(2) Independent Non-executive Director Heather J. McGregor Independent Non-executive Director Vincent L. Sadusky Independent Non-executive Director Marco Sala Director and Chief Executive Officer Gianmario Tondato da Ruos Independent Non-executive Director Renato Ascoli Chief Executive Officer, North America(3) Walter Bugno Chief Executive Officer, International Fabio Cairoli Chief Executive Officer, Italy Fabio Celadon Senior Vice President, Gaming Portfolio Mario Di Loreto Executive Vice President, People & Transformation Alberto Fornaro Executive Vice President and Chief Financial Officer Scott Gunn Senior Vice President of Corporate Public Affairs Wendy Montgomery Senior Vice President of Global Brand, Marketing, and Communications Robert Vincent(4) Executive Vice President for Administrative Services & External Relations
(1) Pellicioli and Drago are the Chief Executive Officer and Chairperson of the Board, respectively, of De Agostini S.p.A., the controlling shareholder of IGT. (2) Patti S. Hart retired as a member of the board on 17 May 2019. (3) The Chief Executive Officer, North America, is the Chief Executive Officer of North America Gaming and Interactive and North America Lottery. (4) Effective April 8, 2019, Vincent left his role as Executive Vice President for Administrative Services and External Relations to become the chairperson of IGT Global Solutions Corporation, the primary operating subsidiary for the U.S. lottery business. In that capacity, Vincent serves as a senior consultant to Sala and the rest of the Company’s senior leadership team.
15 ABOUT IGT
covering government officials. IGT forbids directors, officers, employees, and third parties from offering or giving to any person, or soliciting or accepting from any person, bribes, kickbacks, or any other improper benefit. IGT prohibits bribery in any form to or from any person.
To maintain the highest ethical standards and comply with global anti-corruption laws, IGT also prohibits bribery in the private Anti-Corruption Compliance sector, also known as commercial and Ethics GRI: 103-3 bribery. Any business courtesy No matter where it operates, IGT should be reasonable and for a is committed to winning business legitimate business purpose. IGT the right way by conducting itself also prohibits soliciting or accepting with integrity and maintaining the a bribe from a supplier or other highest ethical standards. IGT is private-sector party. Code of Conduct committed to acting with honesty and in good faith in all business IGT is required to keep IGT is committed to activities and dealings with accurate books and records, and adhering to the highest maintain a system of internal standards of ethical conduct government officials, customers, and our performance and and third parties. IGT’s reputation accounting controls sufficient reputation depend on all as a responsible and ethical to give reasonable assurance employees adhering to supplier of gaming and lottery that transactions are properly the rules that govern IGT products and services is critical authorized and accurately business practices, without recorded. A violation does not exception. to its success. Global compliance with anti-corruption laws and IGT- depend on the legality or illegality IGT’s Code of Conduct, related policies and procedures of the underlying transaction, as updated and released is fundamental to protecting the improperly recording or failing to to all employees in May Company’s reputation. A single properly authorize an otherwise 2018, provides a clear improper act by one person can legal transaction can be a violation description of what behavior is considered appropriate destroy the reputation earned by of law. Accordingly, all IGT and ethical in the course of the hard work and integrity of so employees must obtain all required doing business on behalf many. authorizations and provide of IGT. The code also accurate and complete information offers some examples of IGT has an Anti-Corruption for IGT’s books and records. IGT what acting with integrity will require specified employees to looks like in employees’ Compliance and Ethics (ACE) day-to-day work. Every Policy that is accessible internally complete anti-corruption training employee is responsible for and in multiple languages on on a periodic basis and certify reading, understanding, and IGT’s global public website, IGT. completion of that training. agreeing to abide by this com. This includes detailed gift, code. IGT provides Code of Everybody at IGT has a duty to Conduct training to enhance entertainment, and travel policies employees’ understanding of and limits, along with specific prevent bribery and violations of ethical and legal risks. procedures and limitations this policy and report, and fully
16 IGT - SUSTAINABILITY REPORT 2018
Products and Services GRI: 102-2; 102-6
The Company has five broad categories of products and Whistleblower Policy services: Lottery, Machine GRI: 103-3 cooperate with investigations Gaming, Sports Betting, Digital, All employees are of any attempted, suspected, and Commercial Services. encouraged to report any potential or actual violations of Lottery suspicion of a violation of this policy. IGT will not retaliate or IGT’s Code of Conduct or other activities that may be permit retaliation against anyone IGT supplies a unique set of unlawful, lead to incorrect who reports suspected misconduct lottery solutions to more than financial reporting, or raise in good faith or cooperates with an 100 customers worldwide. questions about the integrity investigation. Lottery products and services of management without any fear of retaliation. are provided through the Employees, officers, Except for a small number of North America Lottery directors and consultants, employees who have no customer (NALO), International, and Italy and representatives are or company representation business segments. Lottery encouraged to report interactions, all employees are services are provided through suspected or known violations through regular required to be trained on the ACE licenses, facilities management reporting channels or Policy (this is approximately 85+ contracts, lottery management anonymously through the percent of all IGT employees). agreements, and product sales Integrity Line. Mandatory online training and contracts. In most jurisdictions, testing is conducted on a biennial lottery authorities award The Compliance Department receives basis. Live video and audio contracts through a competitive all Integrity Line intake seminars are also conducted bidding process. telephone reports of during the training periods, and suspected or known continued training and support is IGT designs, sells, and operates violations through an provided through the IGT Legal a complete suite of point-of-sale independent provider. Department. The most recent machines that are electronically If it is reasonable to conclude training and testing was conducted linked with a centralized under the circumstances in 2017. Training and testing will be transaction-processing system that a material violation is conducted again during the latter that reconciles lottery funds ongoing or about to occur, part of 2019. between the retailer and the the Chief Compliance lottery authority. The Company Officer and/or the General Counsel shall Compliance with this policy and the provides and operates highly immediately notify the policies and processes referenced secure, online lottery transaction- Chairman of the Audit herein is mandatory, and non- processing systems that are Committee of the Board compliance is grounds for disciplinary capable of processing over of Directors. In all other action. Compliance with this policy 500,000 transactions per minute circumstances, investigation reports, findings, and and the policies and processes via more than 450,000 point-of- recommendations will be referenced herein might be sale devices. IGT also produces reviewed in a reasonable considered as a factor in promotion high-quality instant ticket and timely manner by the and compensation decisions games and provides printing Chief Compliance Officer or and, under certain circumstances, services such as instant ticket appropriate IGT department or personnel, and General non-compliance might result marketing plans and graphic Counsel where violations of in disciplinary actions, including design, programming, packaging, law are alleged. termination of employment. shipping, and delivery services.
17 ABOUT IGT
typically low-denomination gaming localized sports betting platforms, machines installed in retail outlets. secure retail betting solutions, With respect to the Company’s point-of-sale display systems, call machine gaming licenses in Italy, center facilities, internet and mobile the Company directly manages betting technology, and fixed odds standalone AWPs, as well as VLTs or pool betting options. Gaming that are installed in various retail outlets and linked to a central Digital IGT designs, develops, system. Digital gaming (or iGaming) manufactures, and provides enables game play via the internet cabinets, games, systems, and Sports Betting for real money or for fun (social). software for customers in regulated IGT designs, manufactures, and gaming markets throughout the In Italy, Lottomatica is a licensee for distributes a full suite of configurable world under fixed-fee, participation, the operation of retail and internet- products, systems, and services, and product sales contracts. The based sports betting. Specifically, holding more than 20 digital Company holds more than 450 Lottomatica: gaming licenses worldwide. In global gaming licenses and does Italy, Lottomatica acts as both a business with commercial casino • Operates an expansive, land- complete internet gaming operator operators, tribal casino operators, based B2C sports betting and a mobile casino operator. Digital and governmental organizations network through its “Better” products include poker, bingo, and (primarily consisting of lottery brand on a fixed-odds, pari- online casino table and slot games operators). Machine gaming mutuel, or virtual betting basis. with features such as single and products and services are provided multi-player options with branded through the North America • Establishes odds and assumes titles and select third-party content. Gaming and Interactive (NAGI), the risks related to fixed-odds NALO, International, and Italy sports contracts. Existing lottery game portfolios business segments. are extended to the digital channel • Collects the wagers. to provide a broad spectrum of IGT offers a diverse range of engaging content, such as instant gaming machine cabinets and • Makes the payouts. tickets. IGT’s digital systems and casino-style games in a variety of platforms offer customers an multi-line, multi-coin, and multi- IGT offers, directly to customers, integrated system that provides currency configurations. In addition, betting on sports events (including player account management, the Company develops a wide basketball, horse racing, soccer, advanced marketing and analytical range of casino games, taking cycling, downhill skiing, cross- capabilities, and a highly reliable and into account local jurisdictional country skiing, tennis, sailing, and secure payment system. requirements, market dynamics, and volleyball), motor sports (car and player preferences. motorcycle racing), and non-sports Commercial Services events connected with the world IGT provides Video Lottery of entertainment, music, culture, IGT develops innovative Terminals (VLTs), VLT central and current affairs of primary technology to enable lotteries to systems, and VLT games worldwide. national and international interest. offer commercial services over VLTs are usually connected to a The Company also provides their existing lottery infrastructure central system. In addition, the sports betting technology and or standalone networks that Company provides Amusement management services in Italy, the are separate from the lottery. With Prize machines (AWPs) and U.S. (through both the NAGI Leveraging its distribution network games to licensed operators in Italy and NALO business segments) and secure transaction-processing and the rest of Europe. AWPs are and internationally; this includes experience, IGT offers high-
18 IGT - SUSTAINABILITY REPORT 2018
volume processing of commercial outside of North America. In transactions, including prepaid Italy, Lottomatica’s commercial cellular telephone recharges, payment and eMoney services bill payments, e-vouchers and network comprises points of retail-based programs, electronic sale divided among the primary tax payments, stamp duty retailers of lottery products: services, prepaid card recharges, tobacconists, bars, petrol stations, and money transfers. These newspaper stands, and motorway services are primarily offered restaurants.
Our Products & Services
GAMING LOTTERY DIGITAL SPORTS BETTING
Gaming Systems Retail Gaming Digital Gaming Retail, Self-Service terminals, & Machines sportsbook, mobile and web
Lottery Draw-Based Games
Lottery Instant Games
Digital Lottery Lottery Self-Service
Regulatory Framework and maintaining public safety, and Recent Regulatory Changes financial and tax compliance. Proper GRI: 103-3 regulatory oversight also ensures that government authorities collect The gaming and lottery industries the appropriate amount of gaming are some of the most highly tax revenues to fund important regulated and monitored businesses government-sponsored programs in the world, wherein the public and good causes. interest must prevail over many other interests. In safeguarding Gaming laws are based upon such public interest, governments, declarations of public policy designed regulatory bodies, and local to ensure that gaming is conducted governmental organizations play honestly, competitively, and free from a key role according to primary criminal and corruptive elements. legislative objectives: legality While the regulatory requirements and public security, protection of vary from jurisdiction to jurisdiction, consumers and fair competition, the majority typically require some
19 ABOUT IGT
eight states offered single-game betting:
• Delaware
• Mississippi
• Nevada
• New Jersey form of licensing or regulatory For the purpose of reporting on • New Mexico (tribal only) suitability of operators, suppliers, regulatory changes, this report manufacturers, and distributors, as will focus on the Italy and U.S. • Pennsylvania well as its major shareholders, officers, regions, as they represent the most directors, and key employees. significant markets to IGT. • Rhode Island Regulators review many aspects • West Virginia of an applicant, including financial United States stability, integrity, and business experience. Additionally, the At the close of 2018, the prospect In the United States, the most of federal intervention in sports Company’s gaming products and significant regulatory development technologies require certification or betting was increasing on multiple occurring in 2018 was the U.S. fronts. In September, an oversight approval in most jurisdictions where Supreme Court ruling in favor of IGT conducts business. hearing was hosted by the House New Jersey in Murphy v. National Judiciary Subcommittee on Collegiate Athletic Association by Crime, Terrorism, Homeland A comprehensive network of internal overturning the Professional and Security and Investigations. In and external resources and controls is Amateur Sports Protection Act November, House Judiciary required to achieve compliance with (PASPA). PASPA was a federal Committee Crime Subcommittee the broad governmental oversight statute enacted on October 28, 1992, Chairman Jim Sensenbrenner sent of the Company’s business. IGT that prohibited any state or person a letter to the U.S. Department has a robust internal program to acting pursuant to the law of a state of Justice (DOJ) regarding ensure compliance with applicable government agency from sponsoring, interpretation of the Wire Act requirements imposed in connection operating, promoting, or authorizing and the DOJ’s views on potential with gaming and lottery activities, as any wagering based on games played issues related to sports betting. well as legal requirements generally by amateur or professional athletes. In December, Democratic Sen. applicable to all publicly traded Apart from four states (Delaware, Chuck Schumer (NY) and companies. Montana, Nevada, and Oregon), the Republican Sen. Orrin Hatch (UT) statute effectively outlawed most introduced the “Sports Wagering IGT complies with substantial states from sanctioning or sponsoring Market Integrity Act of 2018.” No oversight by specialized lottery any form of sports betting. votes or hearings were conducted authorities and related government on this legislation before a new agencies. In some instances, On May 14, 2018, PASPA was congress was seated in 2019. regulators not only govern the declared unconstitutional, thereby activities within their jurisdictions, but allowing individual states to decide In December of 2018, the also monitor IGT activities in other for themselves whether to legalize Washington, D.C. city council jurisdictions to ensure compliance sports betting. enacted legislation to authorize with local gaming operating sports betting in the district, which standards on a global basis. At the close of 2018, the following may be operational in 2019.
20 IGT - SUSTAINABILITY REPORT 2018
The Wire Act the DOJ has not yet addressed how it plans to enforce the Wire On January 14, 2019, the U.S. Act in light of the 2019 Opinion. Department of Justice, (the The New Hampshire Lottery “DOJ”) published an opinion Commission and certain private reversing its previously-issued parties have commenced litigation opinion that the U.S. Interstate in federal district court in New Wire Act of 1961 (the “Wire Hampshire challenging the 2019 Act”), which prohibits several Opinion. types of wager-related communications over a “wire In response to this and other communications facility,” was lawsuits, the DOJ issued a applicable only to sports betting memorandum in April 2019 (the “2019 Opinion”). The 2019 acknowledging that the 2019 Opinion interprets the Wire Act Opinion did not consider whether as applying to other forms of the Wire Act applies to State gambling that cross state lines, lotteries and their vendors, and though the precise scope of the the DOJ is now considering this 2019 Opinion is unclear, and issue. In connection with such
IGT HELPS THE LEGALIZED SPORTS BETTING MARKET IN THE U.S. GAIN STRENGTH Sports betting is the act of predicting the result of a sporting event and placing a wager on the outcome. A successful bet requires knowledge of the sport and players, as well as experience and luck. Legal and regulated sports betting is a logical and innovative gaming portfolio progression for state gaming markets. For states and operators, the profit margin and liability differ from other products. Under certain conditions, sports betting has the potential to provide significant, incremental tax revenues.
The legalized sports betting market in the U.S. is still in its early stages. One of the most important factors determining the ultimate success of any sports betting program is going to be obtaining a wide distribution of products, as today’s consumers will seek access to sports betting products through both retail and mobile channels. Since the current offerings in the U.S. market are mostly illegal, IGT seeks to create a more attractive product. Consumer experience will also be an important determinate of the success or failure of a state-sanctioned sports betting program.
IGT is committed to creating an attractive sports betting product that will counter illegal market offerings. It is estimated that Americans illegally wager $150 billion on U.S. sports annually. Another study estimates that Americans bet about $500 billion worldwide on sports each year. Of the estimated $4.6 billion wagered on Super Bowl 52, 97% was done illegally. IGT believes most Americans who enjoy sports wagering would stop participating in illegal sports betting and choose to place bets in a safe, legal, regulated, and transparent environment if given a competitive and convenient option. IGT seeks to ensure the integrity of sports betting through state licensing and regulation. IGT also works toward obtaining the necessary oversight to protect consumers from fraud and provide the necessary rules and consumer protections to help guard against problem gambling.
In Nevada, sports books are subject to significant and strict state oversight by the Nevada Gaming Control Board – including mandatory internal controls, recordkeeping, reporting, law enforcement oversight, and federal anti-money-laundering regulation. The aim of any IGT sports betting program will be to promote responsible gaming, prevent compulsive gambling, ensure patrons bet responsibly, and communicate with those who need help.
IGT is working and will continue to work with the many stakeholders that are interested in implementing regulated sports betting in light of the court’s decision. These stakeholders, which include important IGT commercial, tribal, and state government customers, are essential to developing the sports betting regulatory framework that is tailored to a jurisdiction’s gaming environment. IGT has vast experience navigating these complex environments and is confident that it can continue making a valuable contribution to the policy discussion. Given its footprint in the U.S., IGT is uniquely positioned to work within most states’ constitutional guidelines. The Company will be able to assist policymakers in evaluating sports betting options that provide maximum benefit to the state, ensure integrity, and work within an appropriate tax structure.
21 ABOUT IGT
• In September 2018, the Ministry of Health issued a decree on “text wording and graphic characteristics of the warnings on risks related to gambling, to be printed on instant lottery tickets.” Tickets must now feature, on the front, the wording “This game is a danger to health” and “It may acknowledgment, the DOJ also Italy cause pathological dependency.” extended the non-prosecution On the back, tickets must feature period for State lotteries and their The unstable political situation the wording “This game is a vendors indefinitely while they in Italy has traditionally entailed danger to health” and “Gambling consider the question. If the DOJ frequent amendments to the is forbidden to minors under concludes that the Wire Act does regulatory framework, and 2018 18 years” and “toll-free number apply to State lotteries and/or their is no exception: 800558822 for disorders due to vendors, they would extend the non- gambling.” prosecution period for an additional • In April 2018, the Calabria period of 90 days after the DOJ region approved a legal ruling • In December 2018, the Italian publicly announces such position. On on regional interventions to Government published the law June 3, 2019, the U.S. District Court promote compliance with the on “budget of forecast 2019 and for the District of New Hampshire law, economic responsibility, multi-year budget for 2019-2021.” ruled in favor of the plaintiffs and and transparency. Among the provisions, the law determined that the Wire Act established the following: applies only to sports betting and • In July, the Italian related activities (the “NH Decision”). Government introduced the - Payouts for AWPs must be The NH Decision also set aside the so-called “Decree on Dignity,” higher than 68% of the wager, 2019 Opinion. It is unclear whether which included “urgent and payouts for VLTs must the DOJ will appeal the ruling, provisions for the dignity be higher than 84% of the when the DOJ will conclude its of workers and companies.” wager. consideration of whether the Wire Among other provisions, the - New technical rules for the Act applies to State lotteries and decree established “the ban production of remote-gaming their vendors, or whether other courts on any form of advertising for AWPs, introducing recording, would come to the same conclusions money wager games or bets storage, and sharing with set forth in the NH Decision. The and gambling on any media, authorities of the opening DOJ has indicated that it will not including sports, cultural or hours data. enforce the 2019 Opinion with art events, TV and radio respect to other gaming operations programs, daily and periodical - Reduction in the number of until December 31, 2019, or 60 days press, print news in general, machines, with a deadline of after the entry of final judgment bill-posting, and IT channels, Dec. 31, 2019. in the New Hampshire litigation, including social media.” whichever is later. Furthermore, the decree - A tax increase, from January established that “instant 2019, of 1.35% for AWPs and IGT is evaluating the NH lottery tickets must feature 1.25% for VLTs. Decision, the 2019 Opinion and its warning messages in Italian implications to IGT, its customers, language printed on both • In January 2019, the Sardinia and the industries in which IGT sides about the risks related to region issued a law on “Provisions operates. gambling.” on gambling disorder.”
22 IGT - SUSTAINABILITY REPORT 2018
Focusing on Our Stakeholders Furthermore, IGT identified sustainability macro trends Materiality Analysis worldwide by comparing GRI: 102-49; 103-1; 103-2 documents and studies from the most relevant and influential According to the Global Reporting non-governmental organizations, Initiative (GRI), sustainability topics policymakers, and global stock are considered material when they exchanges. Finally, IGT analyzed reflect an organization’s economic, customer- and investor-specific environmental, and social impacts, requests in order to identify their or substantively influence main sustainability focus. Material stakeholders’ decisions. Therefore, topics were then ranked according such topics represent sustainability to their priorities for both IGT and matters that are pivotal to its stakeholders. IGT and reflect stakeholders’ expectations, taking into account IGT’s priorities were defined by the sustainability context of the engaging with various Company industry. departments. The Management was asked to prioritize the material The 2018 Sustainability Report topics, while considering the As a result, IGT senior is based on sustainability topics likelihood and severity of the risks management validated the identified and prioritized through related to them. following Materiality Matrix, materiality analysis processes. which reflects the Company’s Stakeholders’ priorities were defined and its stakeholders’ priorities To determine material topics for by weighing the recurrence of the for 2018. Consistent with the 2018, IGT conducted a thorough topics in the analysis of articles, GRI precautionary principle, analysis to identify its business analyzing how IGT’s competitors all the topics set by IGT above priorities and its stakeholders’ evaluate the topics, and tracking the relevance threshold were main expectations. It analyzed the topics’ presence in both sector considered material. other organizations’ sustainability documents and macro sustainability and social responsibility reports; trends. Furthermore, the Company Compared to the 2017 materiality competitors’ and peers’ official derived information about customer analysis, two new topics were websites; and sustainability- and investor expectations mainly included in the 2018 matrix due related articles and studies to from environmental, social, and to growing attention by various identify the most significant governance (ESG) questionnaire stakeholders: Climate Change, and trends in the gaming sector. analyses. Product Safety & Quality.
23 ABOUT IGT
Materiality Matrix HIGH BE
CC TA
FW
SP
LC PS EI D&I RG
HR
RELEVANCE TO THE STAKEHOLDERS TO RELEVANCE DP
I&D CR MEDIUM MEDIUM HIGH RELEVANCE TO IGT
Sustainability Priorities
Business Environmental Respect for BE EI HR Ethics Impact Human Rights
CC Climate FW Fair Work RG Responsible Change Conditions Gaming
CR Customer I&D Innovation and SP Supply Chain Relations Digitalization Management
Data Privacy and Local Talent Attraction DP Security LC Communities TA & Retention
Diversity and Product Safety & D&I PS Inclusion Quality
24 IGT - SUSTAINABILITY REPORT 2018
IGT’s Commitments to UN This process involves seven Sustainable Development Goals sub-working groups composed GRI: 102-11; 102-12; 102-13 of different IGT departments responsible for: In 2017, IGT accepted the United Nations’ call to action on its 2030 1. Analyzing the initiatives that Agenda for Sustainable Development IGT has carried out and that by committing to the UN’s Sustainable could be linked to the SDGs; Development Goals (1) (SDGs). IGT has identified the relevant SDGs 2. Setting specific targets to (shown in the picture below) it could contribute to the 2030 Agenda contribute the most to, while taking for Sustainable Development; into consideration its business activities and and material sustainability topics. 3. Defining an action plan.
In 2018, IGT started an ongoing In this Sustainability Report, the process to set up specific targets initiatives linked to the SDGs that and actions that could concretely IGT implemented during 2018 are contribute to the achievement of these marked with the respective SDG SDGs in the future. logo.
1) The 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals form an action program for people, the planet, and prosperity signed in September 2015 by the governments of the 193 UN member countries to meet three key objectives by 2030: end extreme poverty, fight inequality and injustice, and limit climate change. Universal, inclusive, and indivisible, the UN agenda calls for action by all countries, companies, and individuals to improve the lives of people everywhere.
25 ABOUT IGT
SDGS SUB-WORKING GROUPS
COMMUNITY COMMITMENT ENGAGEMENT TO DIVERSITY PRIORITY: Promote education programs in PRIORITY: Protect women and girls from all communities where we operate and contribute forms of discrimination and violence in the to the development of adequate livelihood workplace; prevent sexual harassment; support opportunities for people living within low-income equal opportunities, and invest in women’s communities, ensure equal access to opportunities, leadership programs. and encourage local economic development.
HUMAN CAPITAL RESPECT FOR DEVELOPMENT HUMAN RIGHTS PRIORITY: Promote full and productive PRIORITY: Protect basic labor rights and ensure employment, ensure quality education, and non-discrimination, no slavery and no human guarantee skills development. Promote partnership trafficking in all operations and supply chain; with local universities or schools through school support vulnerable groups’ rights and raise recruitment campaigns, and provide access to awareness among employees and suppliers on internship programs, funding, scholarships, or grants. human rights within the organization.
SUSTAINABLE WELLNESS PROCUREMENT AT WORK PRIORITY: Ensure respect for human rights and PRIORITY: Ensure the health and safety of all guarantee fair and favorable working conditions; workers and prevent the spread of communicable improve economic inclusion and promote measures to diseases; develop a corporate culture that fight all forms of discrimination along the supply chain. promotes physical and mental health and Improve the efficiency of operations, and promote organizational well-being. environmental protection along the supply chain.
CARE FOR THE ENVIRONMENT PRIORITY: Combat climate change by improving the efficiency of operations; mitigate pollution generated by air emissions and use of hazardous chemicals; ensure more efficient use of natural resources, and protect the environment by mitigating the impacts of products and services.
26 IGT - SUSTAINABILITY REPORT 2018
In 2018, IGT became a signatory of the 10 Principles of the to the United Nations Global UN Global Compact in Compact (UNGC) principles, the areas of human rights, and implemented a process to labor, environment, and anti- contribute to the achievement of corruption, and is committed UN Sustainable Development to the UN Sustainable Goals. IGT affirms its support Development Goals.
This is our Communication on Progress in implementing the principles of the United Nations Global Compact and supporting broader UN goals.
COMMUNICATION ON We welcome feedback on its contents. PROGRESS
“IGT is committed to making the UN Global Compact and its principles part of the strategy, culture, and day-to-day operations of our Company, and to engaging in collaborative projects that advance the broader development goals of the United Nations, particularly the Sustainable Development Goals.”
Marco Sala CEO
Direct Economic Value distribution of added value, which (for example, employees) Generated and Distributed provides an alternative framework and external stakeholders (for GRI: 103-3; 201-1 for the financial numbers example, communities and The economic dimension released by the Company. By re- public administrations) can of sustainability concerns an interpreting accounting figures with be measured in a way that organization’s impacts on the multiple stakeholders’ interests in supplements a strict financial economic conditions of its mind, the focus shifts from a mere view, where only shareholders’ stakeholders, and on economic Profit and Loss approach to one interests must be satisfied. systems at local, national, and that also considers the distribution It also provides a more global levels. of economic value generated by comprehensive picture of the the Company to shareholders as value the Company contributes In compliance with Disclosure 201-1 well as to stakeholders. to all the people involved in of the Global Reporting Initiative the value chain. IGT reports (GRI) Standards, each year IGT This value, distributed to the Economic Value Distribution on analyzes the generation and Company’s internal stakeholders an accrual basis.
27 ABOUT IGT
$ thousands 2018 2017 Economic Value Generated 4,974,538 4,505,418 Economic Value Distributed 4,670,045 4,720,594 Employee wages and benefits 1,164,265 1,161,516 Value to governments through taxation 273,929 81,690 Community investments 5,025 6,045 Operating costs 2,795,208 3,012,444 Value to providers of capital 431,618 458,899
Economic Value Distributed 9.24%
24.93% Employee wages and benefits
Value to governments through taxtation 5.87% Community investments 0.11% Operating costs
59.85% Value to providers of capital
28 IGT - SUSTAINABILITY REPORT 2018
Stakeholder Relationships and Engagement GRI: 102-40; 102-42; 102-43; 102-44
ENGAGEMENT STAKEHOLDERS APPROACH AND ACHIEVEMENTS COMMITMENTS GOALS
IGT is firmly committed to • Managed games in • Managing games in a designing and managing a way that helped way that guarantees games in a way that counteract illegal and safety, reliability, ensures safety, reliability, problem gambling. integrity, and efficiency. integrity, and efficiency. Regulators confidently • Established processes • Counteracting illegal rely on IGT’s capabilities to prevent match and problem gambling. and experience in fixing, data fraud, and preventing illegal and breaches. • Preventing match problem gambling, and fixing, data fraud, and in counteracting match • Fostered the innovation breaches. fixing. IGT’s top managers process and contributed regularly attend meetings to the constant • Fostering the innovation and workshops with public improvement and process and contributing authorities and institutions evolution of the market. to the constant Regulators at both local and global improvement and levels to actively share evolution of the market. knowledge and expertise.
IGT is committed to maintaining its position as a leading company around the globe.
29 ABOUT IGT
ENGAGEMENT STAKEHOLDERS APPROACH AND ACHIEVEMENTS COMMITMENTS GOALS
IGT’s commitment is to • Supported the creation • Refresh and rebrand have a significant and of 15 ASA technology ASA around renewed positive impact on the centers. STEAM learning communities in which the and workforce skills- Company operates. • Increased all employee- development focus. focused engagement The strategy is executed initiatives through • Increase employee through community more global effective awareness and involvement and employee communication. participation for engagement initiatives employee-driven supporting programs that • Created Community programs internationally. enrich and strengthen Ambassadors Group to those communities. improve communication • Widen engagement through the Company community local Initiatives embrace a about community- footprint through local Community wide breadth of needs, focused initiatives. Ambassadors. providing educational and economic opportunities • Implemented two global • Continue to widening for people in challenging volunteering programs global programs. socio-economic open to all employees environments around the worldwide. • Increase employee globe. awareness about community-related Community projects are Sustainability reviewed and approved Development Goals by IGT’s Social Impact (specifically about our Committee (SIC) in commitments.) quarterly meetings. SIC guidelines ensure that all approved support requests are aligned with IGT’s overall Corporate Social Responsibility strategy.
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ENGAGEMENT STAKEHOLDERS APPROACH AND ACHIEVEMENTS COMMITMENTS GOALS
IGT maintains a long- • Successfully certified • Continuously improving standing commitment Lottery, Digital, and awareness of problem to player protection Gaming operations gambling and through close relationships on responsible gaming responsible gaming, with customers, gaming programs and features. with a focus on training regulators, research customer-facing institutes, and advocacy • Created a global employees. groups that promote awareness campaign for tools to prevent problem employees and gaming • Supporting responsible gambling and supports designers during RG gaming organizations responsible gaming Awareness Month. that address problem organizations that address gambling. problem gambling • Earned and maintained and prevent underage trust of players • Preventing underage gambling. Furthermore, worldwide via programs gambling through Players IGT has created an and solutions designed effective tools and internal Responsible to guarantee fair play procedures. Gaming Working Group, and sensible data a team of global subject protection. • Earning and maintaining matter experts from the trust of players different departments to • Designed training worldwide via programs share updates on IGT’s courses that ensured and solutions designed responsible gaming employees of all levels to guarantee fair play efforts. and responsibilities have and sensible data the appropriate RG skills protection. IGT has established and to manage their daily maintains appropriate, activities: comprehensive systems and internal controls to • Promoted general enable the identification, awareness of monitoring, and RG, targeting all management of fraud employees, and; risks, while cooperating at an international level on • Tailored RG courses match fixing issues and designed for solutions. employees working in more specific roles within the Company.
31 ABOUT IGT
ENGAGEMENT STAKEHOLDERS APPROACH AND ACHIEVEMENTS COMMITMENTS GOALS
People who work for IGT, • Appointed a Vice President • Implement Diversity and representing the Company of Diversity and Inclusion to Inclusion Global Strategic and managing its lead the Office of Diversity Plan. operations, are collectively and Inclusion. the best asset for meeting • Expand global diversity and the business challenges • Created IGT’s publicly inclusion operating model posed in today’s gaming available Global Strategic to include regional advisory market. Plan for Diversity and councils and action plans in Inclusion supported by all regions. IGT’s overall goal is to leadership and Board increase the presence of of Directors to provide • Rebrand and support underrepresented groups transparency. development and at all levels and create expansion of employee a more inclusive and • Launched IGT’s first networks. equitable organizational employee business resource Employees culture within IGT. groups Diversity and Inclusion • All 1,200 IGT global Groups (DIGs) (1) through people managers, IGT is committed to WIN with IGT: Las Vegas including supervisors, will creating an engaging (Women’s Inclusion participate in Manager employee experience. It’s Network). Essentials, a management a continuous effort that development program, is fuelled by the feedback • Established a D&I over the next three years. we hear in MyVoice@IGT, ambassador program with our annual employee- over 160 ambassadors • All 400 directors and engagement survey. globally. senior directors will have attended a condensed, • Created a substantial one-day version of this investment in employees program by mid-2019 and managers by introducing to ensure managers and Harvard ManageMentor and employees are successful Manager Essentials training and supported. programs.
1) Diversity and Inclusion Groups (DIGs) formerly known as Employee Business Resource Groups (EBRGs).
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ENGAGEMENT STAKEHOLDERS APPROACH AND ACHIEVEMENTS COMMITMENTS GOALS
• Improved communication • Enhance talent management between leaders and processes (acquisition, employees through a series development, and of live webcasts with a performance) to improve specific focus on our people, employee capability and culture, and values. growth and support the goal of increasing the • Increased 2018 engagement representation of women, index by 9 points from 2017. people of color, persons with disabilities, and additional dimensions of diversity globally.
• Celebrate strengths by continuing to increase our Employees communication efforts with more town halls, and maintain our translation strategy; continue with our compliance commitments to promote an ethical work environment; continue commitment to diversity and inclusion.
• Enrich career and development opportunities at IGT through DevelopMe@IGT and MentorMe@IGT.
• Clarify IGT’s vision by finding more opportunities to discuss our strategy and direction.
33 ABOUT IGT
ENGAGEMENT STAKEHOLDERS APPROACH AND ACHIEVEMENTS COMMITMENTS GOALS
As a publicly listed company, • Prompt, transparent, • Maintain transparency and we maintain a regular dialogue and complete reporting, active engagement with with shareholders, institutional including the annual investors who are interested investors, and analysts. This is sustainability report; in Environmental Social done through a combination completed specific Governance (ESG) issues. of meetings, correspondence, questionnaires for inclusion and reporting. All relevant in sustainability indices; Shareholders information is transparently, received an “A” ESG rating promptly, and completely on the MSCI sustainability reported. index report and prime A with ISS oekom.
IGT operates as a trusted • Provided innovative products • Apply Customer growth partner for both and services, such as our Satisfaction Survey lottery and gaming PlaySpot™ product, which can feedback by adopting customers. Attention be deployed by both casino and strategies that provide and dedication to our lottery operators with different prompt and effective customers is integrated features and functionality. assistance to customers. into the strategies we use to provide them with • Released new TRUE 4D™ • Continue to improve prompt and complete games on the CrystalCurve™ the player experience, assistance. TRUE 4D cabinet - giving them interaction Ghostbusters™ 4D* and Wheel at a whole new level, IGT’s partnerships of Fortune® 4D**. These and continuing to evolve with global customers technology-rich games offer IGT’s TRUE 4D for are based on our core gaming experiences unlike casino gaming, as player values (Pioneering, anything previously offered in the expectations advance. Collaborative, marketplace. Customers Passionate, • Offer a vast range of Responsible, • Enhanced the ability to provide integrated services to Authentic) and on customers with innovative instant improve how we support integrity, respect, and ticket products by adding a new our customers and their excellence fostered TRESU press and 45,000 square go-to market strategies. over time and through a feet of secure production area vast range of integrated to our Lakeland, Florida, printing • Design and provide services and innovative, facility. solutions that help technologically advanced our customers meet • Established partnerships products. their players’ evolving marked by integrity, respect, and preferences. excellence.
• Integrate digital and • Conducted customer satisfaction traditional channels to surveys to ensure we obtain offer a wider gaming consistent feedback that is experience. used to constantly improve our Customer First approach. * GhosbustersTM & ® Columbia Pictures Industries, Inc. All Rights Reserved. 34 ** ®2019 Califon Productions, Inc. “Wheel of Fortune” is a registered trademark of Califon Productions, Inc. All Rights Reserved. IGT - SUSTAINABILITY REPORT 2018
ENGAGEMENT STAKEHOLDERS APPROACH AND ACHIEVEMENTS COMMITMENTS GOALS
IGT works with suppliers • Updated IGT’s Code of • IGT continues to that can ensure high- Conduct to include the strengthen its approach quality goods and services Company’s zero-tolerance to managing the risk of and meet high economic, approach to modern modern slavery within its ethical, and socio- slavery and its commitment business and responding environmental standards. to implementing and to changing risks. Suppliers play a key role in enforcing effective systems IGT’s ability to support our and controls to reduce the customers’ requirements. risk of contracting with IGT’s Supplier Code of suppliers who practice Conduct serves as a guide modern slavery. to the moral, legal, and ethical standards expected • Collected questionnaires of suppliers when doing from suppliers that were business with IGT. deemed high-risk during the 2017 mapping exercise. More than 90% responded.
• Improved the selection process to ensure a more sustainable and ethical Suppliers supply chain (with regard to anti-bribery and anti- corruption aspects). This started with the new selection process based on IGT requirements associated with capabilities and opportunities.
• Created a Supplier Code of Conduct that includes environmental and human rights protection requirements, among others. The code is available on IGT.com.
35 ABOUT IGT
ENGAGEMENT STAKEHOLDERS APPROACH AND ACHIEVEMENTS COMMITMENTS GOALS
As part of its promise to • Improvement of • Continuing achieve environmental existing Environmental improvement of sustainability, IGT Management System the Environmental commits to meet or (EMS) and new EMS at Management System exceed applicable Reno, Nevada, U.S. facility. (EMS). environmental legal and certification requirements. • Increased boundaries and • Obtaining full The Company strives for accuracy of the greenhouse boundary coverage continual improvement gas (GHG) emission of environmental data in its environmental monitoring and reporting collection by 2020. management systems, through a web-based tool and for the reduction of its (+48% sites involved). • Pursuing more efficient environmental impact. energy solutions, • Implemented green transportation, and Environment initiatives to reduce mobility. electricity consumption. • Raising employee • Implemented the three- awareness through year VOCs emission specific training and reduction program at communication Lakeland printing site. campaigns.
• IGT offices and facilities • Updating the Global worldwide created Environmental Policy initiatives at the local level to improve IGT’s to reduce the Company’s environmental topics environmental impact. stewardship.
36 IGT - SUSTAINABILITY REPORT 2018 Advancing Responsibility
photo: Claudio Canali Gaming Machines - Field Operations Rome, Italy
37 Advancing Responsibility
38 IGT - SUSTAINABILITY REPORT 2018 Advancing Responsibility
Protecting People, Products, security policies, and not adhering and Processes to published guidance on how to GRI: 103-3; 418-1 operate with proper cyber hygiene.
The collection and processing IGT does not rely on traditional of data related to people and perimeter security alone but transactions requires the highest rather strives to implement in- degree of responsibility toward depth cybersecurity programs. A individuals, business partners, Cyber Threat hunting team works and markets. To that end, IGT relentlessly to ensure early detection regularly monitors and upgrades all of risks, and vulnerability testing is its internal policies and processes regularly scheduled according to to fully comply with requirements industry frameworks that fully meet and regulations in all jurisdictions. audit and regulatory requirements. In addition, IGT relentlessly These types of tests typically involve pursues the higher goal of earning penetration and vulnerability scanning and maintaining the trust of of systems and environments that are its stakeholders worldwide via in scope for each audit. Most of these programs and solutions designed scans must be performed quarterly, to guarantee fair play and sensible with more extensive exercises data protection. performed yearly. Products are developed with security Cybersecurity and Business Continuity in mind before and after they are Planning delivered to customers. IGT embeds Application Security programs IGT has a robust global into its software development life Information Security Management cycle to guarantee security at the System (ISMS) that governs source-code level. Prior to delivery, all security concerns related to solutions are reviewed by the inbound, internal, and outbound Global Information Security team information flows. IGT is subject to and subject to various vulnerability all risks that most global companies assessment tests. Results are then face, such as external attempts to provided to engineering teams for breach and compromise systems, optimization until all potential issues insider threats, mishandling of are eliminated.
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Certified Security
The security of a lottery plays a critical role in maintaining the public’s confidence and trust in its lottery games. Therefore, it is vital for a lottery organization to develop and maintain a visible and documented security environment to achieve and sustain public confidence in its operations. IGT is proud to have achieved a security standard that is acknowledged by the most relevant security CERTIFICATE bodies at both the European and global OF CONFORMANCE levels.
This is to certify that WLA Security Control Standard The World Lottery Association Security IGT Global Solutions Corporation Control Standard The scope of this certifi cate covers the following sites: IGT Global Solutions Corporation, 10 Memorial Boulevard, Providence, RI, 02903, USA (WLA SCS) is the IGT Global Solutions Corporation, 55 Technology Way, West Greenwich, RI, 02817, USA IGT Global Solutions Corporation / DCA II, 47 Technology Way, West Greenwich, RI, 02817, USA lottery sector’s only IGT Global Solutions Corporation / Texas ATC, 5301 Riata Park Court, Building E, Austin, TX 78727, USA IGT Global Solutions Corporation / Texas DCA, 8200 Cameron Road, Suite D-100, Austin, TX, 78754, USA internationally recognized IGT Global Services Limited, Terhulpsesteenweg 6D, 1560 Hoeilaart, Belgium IGT Global Lottery, S.L.U / Spain Hub, C / La Selva 12, 1˚, 08820, Prat de Llobregat, Barcelona, Spain IGT Foreign Holdings Sucursal Colombia, Avenida Carrera 45 #108, A-50 piso 5, Bogota, Colombia security standard. The IGT Juegos SAS, Avenida Carrera 45 #108, A-50 piso 5, Bogota, Colombia IGT Slovakia Corporation, Drienˇová 3, 82101 Bratislava, 831 04, Slovakia, (Slovak Republic) WLA SCS couples IGT Global Solutions Corporation / Rhode Island PDC, 1425 Pontiac Avenue, Cranston, RI, 02920, USA IGT Austria GmbH, Am Seering 13-14, 8141 Unterpremstatten, Graz, Austria a comprehensive IGT Global Solutions Corporation Chile, El Rosal 5108, Huechuraba, Santiago, Chile IGT Global Solutions Corporation / Printing 4000 South Frontage Road, Building 400, Lakeland, FL, 33815, USA IGT Global Services Limited (Luxembourg Branch), 18 rue Leon Laval, Leudelange, Luxembourg information security IGT Latin America Corporation, Suite 2-A, Algico Plaza, 91-93 St. Vincent Street, Port of Spain, Trinidad and Tobago GTECH Czech Republic LLC., K Zizkovu 4, Prague 9, 1900 00, Czech Republic management baseline IGT Global Solutions Corporation / Rhode Island NRC, 75 Baker Street, Providence, RI, 02905, USA IGT Poland sp. z o.o. / Targowa Data Centre, ul. Targowa 35, 03-728 Warszawa, Poland incorporating IGT Poland sp. z o.o., Al Jerozolimskie 92, 00-807 Warszawa, Poland IGT UK Limited, 1st Floor, Building 3, Croxley Green Business Park, Watford, WD18 8YG Watford, UK International Organization has met the criteria established by the for Standardization/ International WLA Security Control Standard: 2016 Electrotechnical and has been certifi ed by the World Lottery Association*. Committee (ISO/ This certifi cation stipulates that the requirements of ISO 27001:2013** are met, together with the additional security requirements set forth by the WLA, including the Lottery and Gaming Specifi c Security and Integrity IEC) 27001:2013, a controls. These WLA security requirements are subject to the following scope: leading international Design and development of systems and services for lotteries in accordance with the Statement standard for information of Applicability version 1.4 Assessment Service Entity: DNV-GL Business Assurance, 1400 Ravello Drive, Katy, TX 77449 USA security management, Initial WLA-SCS certifi cation date: December 2, 2010 with additional lottery- Latest WLA-SCS certifi cation issued on: December 12, 2018 Expiry date of the current WLA-SCS certifi cate: December 21, 2019 specific security controls The certifi ed organization holds a valid and current representing the current ISO 27001:2013 certifi cate, reference number: 90608-2010-AIS-USA-UKAS Rev 30** best practices. The WLA SCS specifies the required practices for an effective security management structure by which a Dr. Carlos Bachmaier Johanning Luca Esposito Poleo WLA SRMC Chair WLA Executive Director lottery may maintain the integrity, availability, * The ongoing validity of this certifi cate is dependent upon the positive outcome of each mandatory annual audit. ** Details on the ISO 27001:2013 certifi cate number 90608-2010-AIS-USA-UKAS Rev 30 can be found on the reverse side of this certifi cate. and confidentiality of information vital to its secure operation.
40 IGT - SUSTAINABILITY REPORT 2018
In 2018, Information Security recover technology and systems. implemented Mandatory ERP and DRP are linked into Application Security training. the BRP to complete the whole Following preparation of its initial emergency and recovery plan for content, training took place for each office. more than 10 months. People were required to take this training A disaster may affect numerous through specific modules based operations in varying degrees. on their job roles and module The scope of a Business content. By the end of 2018, Recovery Plan assumes about 80% of the training was a significant disruption of completed. operations up to and including the destruction of an IGT facility Preserving Customers’ A global Security Incident wherever it is located. Recovery Trust Response (SIR) procedure is plans and procedures are based Individual players are available to all staff globally for upon the assumption that the the focus of a particular reporting potential incidents. infrastructure for locations has aspect of security. IGT, in These are analyzed by an been, or is being, recovered its B2C operations in Italy as Lottomatica (LTO), Incident Manager who appoints by IGT staff in accordance has defined specific a specially assembled team to with pre-determined recovery solutions for monitoring review the issue and respond. strategies. This framework and and countering cyber- An ensuing internal report model allows an office to identify attacks aimed at players: • An Anti-Phishing is delivered to executive management leaders to make solution allows for management based on the decisions during emergencies, the timely detection severity and degree of the issue. and the steps needed to of clone portals and recover. The Business Recovery fraudulent websites designed to steal IGT Business Recovery Plans are Plan undergoes yearly testing players’ credentials. modelled after the ISO 22301 and updating by the office’s framework to allow for clearer management team. • Internet and market implementation and design stores are subject to an app/brand monitoring according to three components: Data Privacy activity to identify people, processes, and non-official or fake technology. The people portion The enforcement of the internet domains that is the Emergency Response operate fraudulently, European Union’s (EU’s) General or that improperly use Plan (ERP), which outlines the Data Protection Regulation companies’ logos and initial actions required during (GDPR) 2016/679 on May brands, thus misleading notification of an emergency. 25, 2018 has radically affected customers. The process component is the data privacy management Business Recovery Procedure • Drop Zones are and processes. As its name constantly monitored (BRP), which combines all risks, suggests, the GDPR regulates through a credit card processes, time to recover, etc., data protection and privacy for data-retrieval activity. into one document and provides all individuals residing in the If player credentials the path of escalation and steps and pre-paid cards EU and in a member state of issued by LTO Group needed. The technology portion the European Economic Area are stolen on third is the Disaster Recovery Plan (EEA). The regulation applies if parties’ cloning portals, (DRP), which is created by the the data controller (an entity that they are identified various technology teams to and suspended as a determines, alone or jointly, the precaution. contemplate all steps needed to purposes and means by which
41 ADVANCING RESPONSIBILITY
into the development of business (ISMS). IGT employees, processes for products and contractors, consultants, and services. Privacy settings must other workers must be familiar therefore be set at a high level by with the security measures set default, and appropriate technical out in the ISMS Policies and and procedural measures must Standards. be addressed to assess the harm on data subjects and make sure While many privacy risks relate that processing complies with to the unauthorized access or the regulation throughout the disclosure of personal data, some entire processing lifecycle. IGT privacy risks may result from also implements mechanisms to authorized uses and other related EU residents’ personal data is ensure that personal data is not activities. For example, privacy processed), data processor (an processed unless necessary for risks may result from the creation, entity that processes data on each specific purpose. collection, use, and retention behalf of a data controller), or of personal data; the launch data subject (person whose data IGT takes appropriate technical of a new product; a merger or is being processed) resides in the and organizational security acquisition; or a new vendor EU. Under certain circumstances, measures to prevent unlawful or relationship; as well as a lack of the regulation also applies to unauthorized data processing and appropriate notice, transparency, organizations based outside the the accidental loss of, or damage or participation. EU if they are offering goods to, personal data. Such measures and services to, or monitoring are set out in the IGT Information A Privacy Risk Management behavior of, EU residents. Security Management System program is specifically designed
The GDPR aims to give IGT has designed an operational governance model with multiple layers individuals control over their to ensure that privacy by design and by default is achieved throughout the personal data and simplify the data life cycle. Also, the governance model is aimed at ensuring clearly regulatory environment for defined roles and segregation of duties for the primary teams involved in the international business by unifying governance functions. the regulation within the EU. • A Global Data Privacy Officer has been appointed to develop, manage, In particular, the GDPR seeks and maintain the Data Privacy program within the Company. Among other to ensure that personal data is duties, the Privacy Officer is accountable and responsible for developing, processed fairly, for specified implementing, and maintaining privacy policies, procedures, processes, and tools in compliance with privacy and data protection legal obligations, as purposes, and on the basis of the well as promoting training and ensuring full awareness among all employees person’s consent or some other of data protection. legitimate basis allowed by the GDPR. • The Global Data Privacy Council (GDPC) consists of members of several IGT business functions who represent that function with respect to data protection and privacy matters. Members ensure the implementation of To demonstrate compliance privacy and security controls required to mitigate privacy risks. with the GDPR, IGT has implemented measures that • A regional or jurisdictional Point of Contact within IGT is identified as an meet the principles of data individual whose primary focus is to document, operationalize, monitor, and report on processing activities involving personal data. protection and the concept of Privacy by Design and by • A Data Custodian within IGT is identified as an individual acting as a Default. This concept requires Subject Matter Expert (SME) regarding all processing activities related to a data protection to be designed business function or product.
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Fraud and Anti-Money Laundering
IGT has implemented effective processes and controls to continuously deter money laundering, monitor customer activity, and identify and report suspicious activity. IGT employees are required to be aware of the risks posed by fraud and money laundering. They are required to understand the issues and report suspicions of money laundering.
Regarding digital (iGaming) to evaluate new or existing policy, the Primary Service processing activities, as well as Provider (PSP) Fraud and potential harm to data subjects Security team analyzes player through two main components: accounts at various stages of the Privacy Impact Analysis (PIA), the customer journey, including and if appropriate, the Data Privacy registration, deposit, game play, Impact Assessment (DPIA). The and withdrawal. It manages the PIA process uses two separate risk at each stage of the customer questionnaires. The Data Privacy journey and decides appropriate Business Questionnaire (DPBQ) account actions. is required to be completed by all business functions’ data custodians IGT offers fraud monitoring and/or points of contact to payment services to U.S. determine high risks that a new customers through its Cashless processing activity may pose as a Payments Service Team. result of a new process, product, Currently, the team is supporting or service being initiated. On both digital and retail lotteries. the other hand, the Data Privacy Cashless fraud monitoring Vendor Questionnaire (DPVQ) is focuses on several areas of administered to new vendors under support, including Know Your evaluation. This questionnaire is Customer (KYC) verification to integrated with the procurement confirm age and identity, manual process and used for accountability customer due-diligence checks, and as evidence of compliance with preventive and detective controls vendor management requirements. that limit deposits, identification Each PIA may be followed by a of associated accounts, alerts on DPIA Questionnaire initiated by suspicious behavior patterns, and the Data Privacy Office whenever chargeback monitoring to prevent a processing activity or vendor abuse of the chargeback process. relationship is identified as posing a high risk to the rights and freedom of In Italy, where IGT operates a data subject. cashless and pre-paid card
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payment services through LIS control systems and procedures IP, a controlled company of to combat money laundering, Lottomatica, an automated and suggests necessary monitoring system detects changes, with the authority to suspicious transactions. The act independently from lines of system identifies operations business in carrying out their that may show a risk profile in responsibilities. terms of timing, amount, and location, according to algorithmic IGT carries out gameplay abnormality indicators applied analysis through the Gaming to e-money and pre-paid cards Management System. GMS marketed by the Bank of Italy. provides a near-inexhaustible The monitoring is carried out combination of player, gaming, through an application called and account attributes to NSR (for LIS IP cashless compile complex reports services) and Irma (CartaLis identifying profiles and suspicious e-money services), leading behavior consistent with money to monthly reports being laundering and fraudulent subsequently analyzed according activity. Typical reports may to two levels of assessment to include identifying instances determine whether conclusions where there are large deposits should be forwarded to the or withdrawals, negligible game applicable law enforcement play, or no-risk gaming. authorities. Ensuring Safe and Secure Accounts are reviewed via Payments Along with the IGT account game play alerts, and game play IGT’s solutions validate management systems, patterns are analyzed according and process payment customer due-diligence checks to gaming frequency, games methods through are performed to ensure chosen, staked amounts, and for payment processing effectiveness of account authenticity of bets. Accounts gateways and payment provider tools. restrictions and identification of are further reviewed to detect These tools: abuse aiming to violate those anomalous winning/losing ratios restrictions. and check the consistency with • Facilitate payment deposit/withdrawal patterns. method verification through configurable Subject to the Company’s Fraud and Security will also controls. Global Anti-Money Laundering consider payment methods (AML) Policy guidelines, IGT has and account details. Based • Provide restriction appointed a Money Laundering on the combined results of all models to limit, control, Reporting Officer (MLRO) investigated factors, the account and decline transactions based on defined rules to ensure that local policies can be closed or suspended to and parameters. and procedures are consistent undergo additional verification; with IGT’s global objective of otherwise, the customer will not • Support reporting for preventing money laundering be blocked from further play. KPI trend monitoring and fraud investigations. and terrorism financing, and complying with applicable local All IGT employees involved in • Support chargeback laws. The MLRO also verifies the cashless payments operations monitoring and dispute the suitability and effectiveness are required to understand and resolution. of IGT’s country-level internal adhere to AML policies and
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Centralized Monitoring Center procedures. Specific intranet- and contains advanced risk monitoring In Italy, within Risk web-based training programs capabilities and powerful Monitoring and Reporting on systems and payments, and automatic risk control. PlayShot™ (RM&R), Lottomatica has established a Center of a general AML overview, are is configured with a series of risk Excellence (COE) made designed, for IGT Cashless parameters based on specific, up of professionals in Payments team members as part anticipated aspects of betting the anti-fraud domain to of the employee onboarding behavior in each type of market. monitor transactions. They have implemented an process. This training aims to These parameters represent anti-fraud tool to detect prepare employees to review a typical volume of betting and prevent anomalous and identify suspicious behavior activity. All bets are monitored customer behaviors and and common fraud trends, and by the PlayShot™ system in real sales networks that might lead to fraud and money- reinforce appropriate actions and time across all channels (retail, laundering risks. escalation procedures to report kiosks, online, mobile, etc.). As The perimeter includes all on fraudulent activity. betting proceeds, if the system of Lottomatica’s business detects higher-than-expected areas (Digital, Sport Betting, and Lottery), Match Fixing levels of activity in a market, the with 10 monitoring system alerts the traders and dashboards and 76 key While IGT is a sports betting automatically suspends trading. risk indicators updated This allows the trading team to periodically according operator in the Italian gaming to fraudulent patterns. market with the Better brand, review the events and ensure that The system runs on a in every other legal, regulated unexpected activity during minor specialized platform where market, IGT offers its sports events is not overlooked. transaction monitoring and detection of anomalous betting technology to operators patterns are combined as either a supplier or licensor. PlayShot™ provides tools to allow to assess operations and operators to see betting patterns identify risky behaviors. IGT’s sports betting system, within player accounts. These tools Suspicious operations are forwarded from RM&R’s PlayShot™, provides operators help the operator manage their COE to specific business with active and continuous trading risk and detect suspicious units as well as the risk support for integrity monitoring patterns. They provide historical management function, activities. For event-level analysis of accounts by sport and according to internal procedures. monitoring, the PlayShot™ system bet type, and allow tagging or
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Traders’ alert console showing notification of suspicious activities.
“risk factoring” of accounts based During the betting activity, on historical levels of activity. If the Risk Management an account shows higher-than- function controls betting normal levels of activity, the volumes through the Wager trading team is automatically Wise platform. Pre-set alerts alerted and the tool may identify anomalous situations, automatically block the account. from disproportional betting volumes to the prominence of The PlayShot™system also the match involved. The weekly provides features to support payout will then be analyzed to operators in terms of their identify matches and markets reporting and monitoring where anomalous volumes and requirements. Historical as well as win concentration occurred. current bets are stored in full detail Once suspicious behaviors and for an extended period, and this actors are detected, new game data can be exported to provide limits are set, and information full audit or other evidence where is shared within the bookmaker required. community for further analysis.
As well as providing statutory Lottomatica sports betting AML reporting, the PlayShot™ activity is carried out through system is also linked to third-party the automated trading Betting AML systems to automatically Intelligence Platform (BIP). consolidate not only large single The platform generates transactions, but any transactions automated alerts on suspicious tagged by the operator staff and/ betting activities by players or the trading team. through analysis of betting accounts, and shown at the In Italy, where IGT is a sports sports event level, through the betting operator, detection of real-time analysis of patterns suspicious match fixing activities based on market benchmarks is carried out at different stages. and historical series.
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GLMS KEY PROCESS FLOW
EDUCATION Cautious selection of betting events: Non-professional and young athletes are too vulnerable and may be tempted to fix a match; therefore, betting on minor sports / leagues in certain contexts should not be oered High-level automation : A peerless monitoring system to allow robots to analyze real-time odds volatility and detect suspicious odds movements Info/Odds/Money Flow Monitoring
DETECTION GLMS System and Individual Member Suspicious Betting Pattern Alert trigger Key Betting Event Information Acquisition Bet description Wager value Time/odds Distribution channel Retail/digital Geographical location MANAGEMENT GLMS containment action recommends members to: Increase limit thresholds Change drasticaly Odds/Leg Close Betting on a given market Close betting on the whole event
GLMS and members communicate formally to: Regulators Law Enforcement Agencies Sport Federations Integrity Units Sport Prosecutors
Global Lottery Monitoring System
The Global Lottery Monitoring System (GLMS) is lotteries’ mutualized monitoring system on sports betting. It was founded by European Lotteries and the World Lottery Association, and currently counts 32 individual members as well as two associate members. It aims to detect and analyze suspicious betting activities that could affect the integrity of a sport competition. GLMS facilitates the sharing of sports betting information as part of the collective efforts of its members in ensuring sports betting integrity globally. It is dedicated to effective cooperation with all key stakeholders, namely regulators, law enforcement authorities, and sports organizations. Lottomatica collaborates with GLMS by sharing information on suspicious match-fixing activities, feeding a global exchange of data from several sources that is continuously updated.
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customers and players.
Advancing responsibility is not merely a choice; rather, it is the condition required for sustainable growth over time. Whether voluntary or driven by regulations, responsible gaming (RG) is a vital aspect of every reputable gaming company, and just as important as sales results. Responsibility and growth cannot be mutually Responsible Gaming exclusive. IGT believes that it is GRI: 103-3 incumbent upon all stakeholders in the gaming industry to take a Strong integrity, close attention proactive approach to problem to customer needs, and a and underage gambling. proactive approach to providing To that end, IGT has steadily best-in-class customer service increased its efforts to prevent year after year has made IGT gambling behavior that may the global leader in gaming. adversely affect a player. IGT Working in highly regulated works closely with our customers to markets across jurisdictions understand and accommodate their throughout the world, where needs related to providing turnkey differences are related not only solutions and assistance embedding to laws and regulations, but also RG features into their offerings. cultural and social attitudes, IGT is fully aware of the risks As an employer in more than 50 as well as the responsibilities countries, IGT designs training associated with the gaming courses that ensure employees industry. of all levels and responsibilities have the appropriate RG skills Despite the industry’s inherent to manage their daily activities. complexities, as part of its Courses are offered in two corporate commitment, IGT categories: works relentlessly to make sure that state-of-the-art tools and • General awareness of RG procedures are embedded targeting all employees, and; throughout all business • Tailored RG courses designed segments to protect people, for employees working in products, and processes. In more specific roles within the addition, IGT’s responsibility Company. is not limited to compliance protocols. As a market leader, it IGT works with a wide variety places the highest importance of stakeholders to promote on establishing and nurturing and support RG, including a level of trust within the problem gambling researchers, Company and among its advocacy groups dedicated to
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promoting awareness of RG, and players love, anytime, anywhere, policymakers. on any device, in ways that are anchored by a sound approach to Setting the Pace social responsibility. in Responsible Gaming IGT’s RG efforts are based on As one of the world’s leading the following objectives: gaming and technology vendors, • Promote protective tools to IGT has a unique approach to prevent problem gambling. sustainably growing its business.
By working with global customers • Support RG organizations that to engage players across all address problem gambling. gaming channels, IGT is always mindful of providing games • Prevent underage gambling.
LOTTOMATICA’S AWARENESS AND PREVENTION FOR PLAYERS: LET’S SPREAD THE WORD
In Italy, Lottomatica has carried out the sixth edition of its underage gambling prevention tour, in partnership with MOIGE (Movimento Italiano Genitori, Italian Parents Movement) and FIT (Federazione Italiana Tabaccai, the Italian Tobacconists Association). A reception stand visited 105 points-of-sale in 26 cities to increase exposure and raise awareness of underage gambling and the prohibition of gambling by minors (those under 18). The communication campaign “Facciamo Girare la Voce” (Let’s Spread the Word), running mainly in the media and on social media, has generated more than 21 million contacts in the press and more than 8 million on the web.
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IGT INDIANA: WORKING ON BEHALF OF THE HOOSIER LOTTERY
IGT Indiana has focused on consistently improving the Responsible Gaming marketing campaigns developed on behalf of the Hoosier Lottery by creating a lighthearted and memorable responsible gifting campaign that reminded shoppers to only gift lottery tickets to individuals over 18. The message was communicated through a series of six social media graphics that depicted tips for “adulting,” a pop culture trend.
NORTHSTAR NEW JERSEY MANAGES RESPONSIBLE GAMING FEATURES ON BEHALF OF THE NEW JERSEY LOTTERY
NorthStar Nwew Jersey supports RG programming through employee and retailer training, the production of RG advertising campaigns, social media messaging, and the production of RG materials in the form of brochures, stickers, magnets, and underage play prevention materials. Additionally, responsible play and problem gambling support are available online via the New Jersey Lottery website.
Pictured: Images of Northstar New Jersey print and social media campaigns supporting the New Jersey Lottery.
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IGT’s Responsible Gaming Commitment
In compliance with the industry’s best practices and IGT continually focuses on being standards, IGT has identified eight RG commitments in a forward-thinking company that support of the RG Working weaves RG into the fabric of all its Group’s goals: products, programs, and policies. • We work with appropriate This is demonstrated by IGT’s stakeholders on RG issues to ensure IGT follows best adherence to globally recognized practices and is aware of programs, such as those of the current RG research as it World Lottery Association relates to our operations. (WLA) and the Global Gambling • We create internal Guidance Group (G4) aimed at awareness about RG and protecting players and minimizing provide specific education problem gaming risks and other and training to relevant potential harms. employees as it relates to their daily activities. To promote awareness and best • We incorporate RG tools practices within the organization, into our products and IGT has established the IGT services to minimize potential risks. Responsible Gaming Working Group, which includes subject • We ensure IGT’s remote matter experts (SMEs) within many gaming platforms offer departments at the global level. Its operators the ability to monitor players’ behavior contribution is key in incorporating and minimize any RG features into products and potentially excessive or educational programs for both illegal gaming activities. staff and customers, and including Embedding Responsible Gaming in the Customer • We ensure all advertising them in internal and external Satisfaction Survey and promotional activities communications. comply with IGT’s In September 2018, Responsible Gaming In 2018, as a result of the ongoing IGT conducted the Code of Principles. efforts of the working group, IGT Global Customer Satisfaction Study of • We support customers IGT’s lottery and gaming business 289 individuals at 84 with RG best practices to segments mutually agreed on a lotteries by using online promote RG. process for tracking advertising and telephone interviews, and marketing compliance. and for the first time, IGT • We engage with included a responsible- stakeholders to align our Consequently , it is now standard gaming-related question. RG strategies according for all external-facing advertising The question explored to their expectations. and marketing communications how IGT’s RG efforts and to be vetted through the RG support are aligned with • We report IGT’s customers’ RG programs. RG activities to key members of the Corporate Social IGT received a 75% stakeholders. Responsibility (CSR) team. positive rating.
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“As the world’s leading gaming Constant Learning and Training marketing and advertising, game Company, IGT design, and contact centers. is focused in IGT has created several employee-focused training supporting our In 2018, IGT developed the Global courses to consistently uphold Responsible Gaming Awareness industry and our a balanced and responsible training and video to educate all communities. We approach to gambling to ensure employees on the Company’s have a leadership long-term value creation. These commitment to RG and problem courses are regularly scheduled gambling education. The training role in balancing for all employees and new video features CEO Marco Sala, hires to encourage growth sustainable growth who explains the importance of in an ethical and responsible RG and how IGT is committed and Responsible manner. They are designed to to remaining the global leader in Gaming while educate all employees about the gaming sector. The video also the Company’s commitment to delivering features SMEs who describe the RG, and highlight the consumer innovation and Company’s RG capabilities in the protections built into IGT’s excellence to keep various gaming platforms. lottery, gaming, and digital business gaming fun for all. segments. IGT conducted a survey to gauge awareness levels, as well We are committed to Training courses are designed to include the more than as the overall effectiveness of the ensuring the integrity 12,000 employees worldwide course. It found 93% of employees of our products and at all levels and responsibilities strongly felt that the training was useful for their work, 96% strongly services. We adhere within the Company. And as stated previously, while general agreed on having an obligation to to a strict Code awareness training is provided promote RG, and 100% agreed of Conduct and a to all employees, more focused on the importance of working rigorous compliance courses are designed for those with customers, associations, and employees working in specific experts to understand and manage program, while areas of the Company, such as potential problem gambling issues. helping protect players through our longstanding Specific Training for Retailers in Italy collaborations with Lottomatica provided the training course on Responsible Gaming exclusively the world’s most for retailers. The course can be accessed through the retailers’ portal and is divided into modules focused on the ban on gambling by individuals under recognized industry 18, as well as problem gambling. Each module features a situation that could organizations.” happen at the point of sale, and explains the right behavior for managing critical situations, such as keeping a minor from gambling. The course provides evidence and expert advice regarding how to manage the most difficult CEO Marco Sala, situations, with explanations of current regulations. Upon passing the final test, retailers receive a certificate that can be displayed at the point of sale. In as quoted in IGT’s Responsible addition, a training program for the sales network included three short videos Gaming Awareness training permanently available through the Lottomatica retailers’ portal.
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While much of the focus thus far has been on safer strategies for operators as they interact with consumers, RG planning should start even before consumers begin interacting with operators and their products. The games themselves also influence the players’ safe gambling journey. PIONEERING GAME AWARENESS IN PLAYER Content developers and suppliers, PROTECTION (GAPP) TRAINING therefore, have a much bigger role to play in ensuring safe and IGT took a pioneering stance while working with Dr. Jonathan Parke to design responsible gambling. Indeed, a GAPP, a specialized pilot training program to educate IGT’s lottery and digital game designer’s education is key game designers. Minimizing problem gambling in the design phase, and in incorporating RG into products developing the technological aspects accordingly, implies a deeper knowledge in accordance with the overall of the possible risks from a psychological point of view. goals of IGT’s RG efforts. For this The program focuses on the latest academic thinking on the relationship reason, IGT has designed specific between game design and safer gambling to further employees’ work in education programs for game designing more responsible games and gaming environments. The course covers designers. the structural characteristics of games, including the cost of play, payment, speed and frequency of play, content, and themes.
Game Awareness in Player The learning objectives of the GAPP course include: Protection (GAPP) training is • Designing responsible games and gaming environments. being developed to help those • Discussing safer gambling options with operators and/or customers. • Engaging with regulators by demonstrating some understanding of how working in the gaming industry to products may influence problem gambling to help better shape effective and promote a better understanding of fair regulatory policies. product-related risks and consider opportunities to develop safer and more sustainable games. IGT is the first gaming company worldwide COST GAME PAYMENT to adopt this program and is OF PLAY REWARDS committed to ensuring that it has a positive impact.
SPEED AND WITHDRAWAL FREQUENCY
ARCHITECTURE CONTENT CHOICE AND THEMES INFORMATION
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Partnering at the International Level to Advance Responsible Gaming Partners in Research Research and Adoption GRI: 102-13 IGT is a proud partner of Responsible Gaming IGT seeks to help its customers research conducted in the create environments where players U.S. as well as Europe. can play safely. To that end, we Among IGT’s contributions: • IGT is supporting the contribute to the research of Tennessee Education problem gambling prevention and Lottery Corporation in its the risks of gambling. In addition, quarterly tracking study IGT has built relationships with of how the lottery makes a positive contribution to RG stakeholders, both within and the state, is respectful to outside of the industry. Through all ethnic groups, markets various studies, IGT strives to its games to people increase awareness and promote of all income levels, communicates the overall the understanding of RG by odds of each game, sharing findings with customers discourages underage and the research community as play, and ensures that appropriate. games and drawings are run fairly and securely. IGT’s marketing professionals also • Lottomatica is complying conduct a wide range of studies with the Italian regulatory body Agenzia Dogane on an annual basis that guide e Monopoli (ADM) in recommendations using market- conducting research specific insights and knowledge. IGT also uses results of the most focused on mechanisms important and recognized public triggering the willingness to play. Lottomatica IGT’s corporate market research research from trusted resources participates in cooperation team focuses on three primary to understand international best with SNAI, University areas of concentration: practices and implement them in of Genova, La Sapienza its RG program. It aims to review University (Rome), and Doxa (research institute). • Facilitating primary research evidence and theory regarding studies through third-party gambling products. Providing a • IGT in Indiana is vendors/partners. better understanding of structural supporting “Positive Play characteristics to stakeholders Scale,” a study measuring the amount of positive • Leveraging secondary research. should better equip them to play in a player base and promote and evaluate RG and the effectiveness of RG • Implementing additional harm-minimization strategies. tools. This study was research initiatives. conducted by Gamres, an independent research and Throughout the world, IGT works consultancy service that This information is used to help with a wide variety of external designs, implements, and jurisdictions explore and develop stakeholders, including advocacy evaluates RG strategies. new game concepts and marketing groups, audit firms, and certification initiatives across various player • IGT was happy to partner bodies dedicated to promoting with the National Center groups. Furthermore, IGT has awareness of RG. Each entity is on Responsible Gaming access to insights, experiences, and a partner to the Company and (NCRG) in support of its other relevant information from dedicated to ensuring that IGT new Center of Excellence jurisdictions throughout the world for Research on Sports continually improves and fully Wagering. that can be shared with customers. supports RG best practices.
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IGT is an Associate Member of the World Lottery Association (WLA). The WLA’s values are based on a commitment to the highest standards of corporate responsibility, including the WLA Responsible Gaming Principles and Framework, and respect for the duly authorized legal systems that determine where, and in what form, gaming products can be provided to the citizens of a geographical or national territory.
The WLA is committed to sharing knowledge and experience amongst its members and improving its business in the interest of stakeholders as determined by the authorities in its respective jurisdictions. IGT is part of the CSR/RG WLA Working Group, and Fabio Cairoli, IGT CEO Italy, is member of the WLA Executive Committee.
IGT is a Premium Partner of the European Lotteries (EL), the umbrella organization of national lotteries operating games of chance for the public benefit. EL brings together state-owned and private operators, both for-profit and non-profit, that operate on behalf of the state. Members only offer gambling and betting services in the jurisdictions in which they are licensed by the respective national government. EL promotes the sound and sustainable gaming model for the benefit of society, based on the values of subsidiarity, precaution, solidarity, and integrity. IGT representatives cooperate with all EL working groups.
IGT is a Platinum Member and Annual Sponsor of the Conference of the National Council on Problem Gambling (NCPG), the U.S.- based organization working with state and national stakeholders in the development of comprehensive policies and programs for all those affected by problem gambling. The Company has obtained the Internet Compliance Assessment Program (iCAP) certification from the NCPG. Jade Luchauer, Corporate Social Responsibility Manager of Indiana’s Hoosier Lottery, is the chairwoman of the NCPG Communications Committee.
Partnering with the IGT participates in state health agencies, National Council on the NCPG’s national gambling companies, Problem Gambling observance of Problem recovery groups, (NCPG) for Problem Gambling Awareness and a wide range of Gambling Awareness Month, a grassroots healthcare organizations Month campaign held in March and providers. In 2018, every year that includes IGT rolled out its new To emphasize the NCPG state affiliates, RG awareness training importance of RG to organizational and to all its employees all employees globally, individual members, worldwide.
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IGT is an Annual Member of GambleAware, the leading charity in the U.K. committed to minimizing gambling-related harm. As an independent national charity funded by donations from the gambling industry, GambleAware funds education, prevention, and treatment services, and commissions research to broaden public understanding of gambling-related harm. The aim is to stop people from experiencing problems related to their gambling, and ensure that those who do develop problems receive fast and effective treatment and support.
IGT is a Conference Supporter of the National Center for Responsible Gaming (NCRG), the only U.S. organization exclusively devoted to funding research that helps increase understanding of pathological and youth gambling, and which seeks effective methods of treatment for the disorder. IGT was happy to partner with the NCRG in support of the new Center of Excellence for Research on Sports Wagering. The Center of Excellence ensures that high- quality research — not bias or political expediency — determines the steps to regulating sports betting. In 2018, IGT was asked to chair the NCRG’s Responsible Gaming committee.
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ONGOING PARTNERSHIP BETWEEN NORTHSTAR NEW JERSEY(NSNJ) AND THE COUNCIL ON COMPULSIVE GAMBLING OF NEW JERSEY
NSNJ partners with the Council on Compulsive Gambling of New Jersey (CCGNJ) to remain impactful and relevant in its RG programming, advertising, and outreach. The CCGNJ regularly provides NSNJ with background information, research, and data to ensure NSNJ’s advertising campaigns reach those most in need.
Northstar New Jersey’s Gift Responsibly Holiday Press Conference. Featured in the photo is the Acting Executive Director of the New Jersey Lottery, James Carey, and the Executive Director of the CCGNJ, Neva Pryor.
IGT is Member of the CSR and Responsible Gaming committee of the American Gaming Association (AGA), the U.S.-based national trade group representing commercial and tribal casino operators, suppliers, and other entities affiliated with the gaming industry.
PARTNERING WITH AGA FOR RESPONSIBLE GAMING EDUCATION WEEK IGT proudly supports the American Gaming Association (AGA)’s annual Responsible Gaming Education Week. RGEW provides an opportunity to showcase the industry’s year-round dedication to RG programs, and is an important part of the industry’s steadfast commitment to promoting RG. Every year, IGT joins the AGA and casino operators throughout the U.S. to increase awareness of RG among gaming employees, casino customers, and the general public. In August, to support to RGEW 2018, IGT Subject Matter Experts (SMEs) representing different business operations created the internal social media campaign, “Five Facts You Didn’t Know About Responsible Gaming,” which featured videos highlighting the RG tools in their various segments.
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NASPL IGT is an Associate Member of IGT is a Member, Conference IGT is a voting member of the the North American Association Participant, and Presenter of the Association of Gaming Equipment of State and Provincial Lotteries European Association for the Manufacturers (AGEM). Voting (NASPL). Its mission is to Study of Gambling (EASG), and members are limited to companies assemble and disseminate attends its bi-annual Conference that hold or have an application information and the benefits on Gambling Studies and Policy pending for a manufacturer and/ of state and provincial lottery Issues. The association provides or distributor license in a regulated organizations through education a forum for the systematic study, gaming jurisdiction and whose and communications and, where discussion, and dissemination principal business is manufacturing or appropriate, publicly advocate its of knowledge about all matters distributing gaming devices, gaming positions on matters of general related to gambling in Europe. systems, and/or gaming equipment. policy. Voting members represent a true “who’s who” of companies dedicated to the advancement of technology and innovation that drives the global gaming industry forward.
CONFERENCE IN MALTA TO SHOWCASE IGT’S BEST PRACTICES At the 12th edition of the European conference on gambling studies and policy issues hosted in Malta by the European Association for the Study of Gambling (EASG), IGT presented “RG Awareness and Education @ IGT - Our Journey: Ahead of the Game”, the keynote on RG communication efforts undertaken by IGT to address both external and internal audiences.
Our Journey: Ahead of the Game
What’s next?
RGEW 2018 RG RGEW 2017 brochure SR 2017 SR CEO’s 2016 Video GAPP PGAM PGAM 2018 2017 RG Awareness Training
MARCH AUGUST 2017 2018 8
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CertificationsGRI: 102-12 being a responsible vendor, and demonstrates the effectiveness The certifications awarded to IGT of the RG technology solutions by the most important gaming it provides to gaming operators industry associations worldwide are worldwide. a testament to IGT’s commitment to RG. These various certifications Doing the right thing for players and require renewal on a regular basis. the broader community has made Therefore, IGT must continuously CSR – specifically, the Responsible improve its RG programming to Gaming Principles and Framework fulfill recertification requirements – a priority for the WLA. IGT has and prevent any gaps in actions or been awarded certification for its CERTIFICATE procedures that might hinder the lottery operations for the WLA OF ALIGNMENT Responsible Gaming Framework eventual recertification processes. Associate Member Corporate Social Responsibility Standards and This is to certify that International Game Technology (IGT) PLC, IGT is the first gaming vendor in the Certification Framework. IGT was Lottery and Digital Operations world to achieve RG accreditation commended for its commitment to has achieve alignment with establishing sustainable CSR and The WLA Responsible Gaming Standards from the Global Gambling for Associate Members RG programs as a vendor to the and has been granted accreditation by the World Lottery Association in accordance Guidance Group (G4) – a group with the criteria set in the Responsible Gaming Certification Standards for Associate Members. of problem gambling experts global lottery industry for nearly 40 years. Certification date: November, 2018 promoting a worldwide accreditation and certification program for land- Jean-Luc Moner-Banet Lynne Roiter WLA President WLA Secretary General based casino and lottery operations. An external appraisal was performed To maintain G4 certification, IGT by a WLA-approved assessor who was independently assessed to provided an informed, complete, confirm that the Company goes and impartial assessment of the above the industry standards of Company’s lottery operations, and who completed a Statement providing player protection tools and RG information on gaming of Alignment reflecting IGT’s This certificate is awarded to the machines. G4 also requires compliance with the eight sections International Game Technology vendors to make a commitment to of the WLA CSR standards. The
and hereby declares that your internet gaming platform is compliant with the eight standards include research, National Council on Problem Gambling Internet Responsible Gambling Standards. conducting research, establishing employee programs, product and February 1, 2019 Expiration Date dedicated policies, and training February 1, 2018 employees. This certification service development, remote Signature Date reinforces IGT’s commitment to gaming environment, advertising and
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LOTTOMATICA’S RESPONSIBLE GAMING CERTIFICATIONS
Lottomatica earned a certificate of compliance with the Responsible Gaming Standard of the European Lottery program in 2009 and renewed it to 2021. It also earned a certificate of compliance with the Responsible Gaming Standard of the World Lottery Association at the highest level of certification (Level 4) in 2009 and renewed to 2022. Finally, it achieved the first international certification of conformity for all gaming portals, granted by G4, in 2009, and renewed it until 2022.
marketing communications, client Certificate of compliance with the Responsible Gaming Standard of awareness, stakeholder engagement, European Lottery program, achieved in 2009 and renewed to 2021. and reporting. Certificate of compliance with the Responsible Gaming Standard of World Lottery Association program at the highest level of In February 2018, IGT achieved certification (Level 4), obtained in 2009 and renewed to 2022. the Internet Responsible Gambling Compliance Assessment Program First international certification of conformity for all gaming portals, (iCAP) re-certification. The iCAP granted by G4 – Global Gambling Guidance Group, achieved in 2009 and renewed until 2022. certification provides assurance to operators and consumers that IGT’s business-to-consumer (B2C) websites and platforms in the business-to-business (B2B) market are compliant with the Internet Responsible Gambling NEW JERSEY LOTTERY’S AND HOOSIER LOTTERY’S Standards (IRGS) developed by RESPONSIBLE GAMING CERTIFICATIONS the National Council on Problem
Gambling (NCPG). In 2018, the NCPG decided to focus its iCAP The New Jersey Lottery and the Hoosier Lottery of certification program solely on Indiana have achieved WLA Level 4 Certification lottery operators; thus, the iCAP in Responsible Gaming. Northstar New Jersey will help the New Jersey Lottery apply for recertification recertification process for vendors in the fall of 2019. IGT Indiana assisted the Hoosier was discontinued. In response, IGT Lottery in attaining WLA Level 4 in Responsible partnered with the G4 to assess and Gaming recertification through 2021. certify its online platform beginning in 2019.
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Embedding RG in Systems and Design CONFERENCE IN MALTA TO SHOWCASE IGT’S BEST PRACTICES As gaming continues to expand among different channels, IGT is balancing sustainable growth with innovation and excellence to keep gaming fun for all. IGT’s products, systems, and portals include advanced RG tools that help safeguard players’ interests and address regulators’ concerns.
These tools are significantly more effective when offered across every gaming channel, including at the retailer counter, on a video lottery terminal (VLT), on a laptop at home, IGT INDIANA: SHOWING HOW TO EMBED or on a mobile device. Experienced and technologically advanced RESPONSIBLE GAMING FEATURES INTO GAME lottery operators have recognized DESIGN the need for holistic, omnichannel In 2018, IGT Indiana employees presented at the National Council on RG solutions that maximize growth Problem Gambling’s Annual Conference and provided information to in a responsible and secure manner. conference attendees on how the Hoosier Lottery approaches RG design. IGT works closely with each of The presentation included information on how the Hoosier Lottery its customers to understand and approaches RG concerns and employs risk mitigation strategies since the accommodate their needs to embed development of its Responsible Game Design Self-Assessment tool in RG features into their offerings. 2016. Since then, the tool has been used to help document how the Lottery considers RG in its game design process, and every scratch-off ticket is evaluated using the tool before it goes to market using criteria from its Lottery Marketing Code of Conduct. As one of the world’s leading operators of highly secure online lottery transaction-processing systems, IGT strives to recognize and respond to issues affecting the community, from implementing a new lottery that is compatible with a particular culture, to being a good corporate citizen.
IGT’s approach to RG is at the forefront of lottery product development. From player-facing Featured: Jackie Koenig, Senior Product Manager, IGT Indiana, presenting at vending machines and devices the National Council on Problem Gambling’s Annual Conference. She used the to analytics and retailer controls, Pinball Wizard Scratch-Off ticket as an example of a game that was modified by RG features are built in. IGT’s game designers as a mitigation strategy when they felt the artwork could appeal comprehensive approach considers to individuals under 18. all the elements of a lottery
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program, including design, launch, encourage players to play CONFERENCE IN MALTA TO SHOWCASE IGT’S BEST PRACTICES retail, promotions, and advertising. responsibly. IGT encourages lotteries to label all lottery All of this is done with the support of solutions seen by the public a suite of RG best practices based with messages to play on IGT’s experience supporting responsibly. Trim kits on self- and operating gaming programs service devices can be used throughout the world. Lottery system to clearly identify that a player features for RG ensure operational must be 18 or older to play. control over all components that Helpline contacts on the labels manage processing, reporting, provide a contact for players security, and retailer management, seeking RG assistance. while supporting customers as they implement RG structures and play IGT’s online and instant styles. system installations and conversions include complete The point of access in the retailer communication and training setting plays a critical role in programs to ensure the the way IGT incorporates RG jurisdiction’s site staff and parameters into its systems. All of retailer base are fully prepared, IGT’s current TouchPoints (retailer properly trained, and highly and player-facing terminals) equipped to handle all sales are capable of reading personal activities. Individual terminals identification cards (like a driver’s are also equipped with a license) containing a barcode, Training Mode so new game providing customers with reliable and sales features can be age-verification technology for practiced and perfected before retailers. sales go live. More than 60 customers worldwide use RG The age-verification process features that are a part of IGT’s becomes even more critical with lottery software. self-service devices. Lottery customers could implement the actual scanning of a player’s driver’s license or other government ID card for each transaction on self- service devices, virtually eliminating underage play. If the driver’s license age verification is not used, retailers can remotely disable the machines. A notification of the minimum age to purchase can also be displayed on the self-service screen.
Furthermore, IGT’s multimedia digital signage provides the opportunity for the lottery to display RG messages that
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Gaming warning) and alert players if they activate one of these triggers. Jurisdictional requirements are aimed at protecting players and In addition, IGT provides a new RG minimizing problem gaming risks application that is currently available and other potential harms. IGT’s through the casino management customer products are compliant system (CMS), Casinolink. It differs with each region’s regulations and from the RG Monitor in that it can fulfill 100% of each operator’s RG be used either as a back-office tool rules and requirements. IGT’s or with direct interaction with players, compliance is also verified by testing where they can set their own limits agencies appointed by operators (time, wagers, losses, visits), see their and regulators. gaming history, receive notifications about reaching limits, and eventually IGT provides RG features across its activate gaming restrictions (exclusion casino systems product portfolio. for a period of time). This solution is These features track player gaming expected to be available on other activity and detect situations where CMS platforms in the future. players are reaching preset limits, either set by the player or defined IGT has developed RG technology according to casino operator policy for VLTs and VLT central or regulations. The IGT casino management systems that is based system RG Monitor is a tool that on extensive research among lottery enables back-office monitoring and operators and players, and developed provides staff with information to in consultation with experts in guide and inform players about their problem gambling. IGT’s solution play habits. RG Monitor provides for the distributed market is the most real-time information about average comprehensive in the industry today, bet, number of games played, as it consists of a broad selection amount spent, and theoretical loss. of different RG features offered to For each of these, the casino can players. set up parameters to define two levels of triggers (information and The RG tools include on-machine
Harnessing the Power of visitors are active on visitors before, during, and The PlaySpotTM system Mobile with PlaySpotTM their smartphones, even after each visit. allows operators to have while playing. IGT has Operators are able to a full view of the gaming PlaySpot™ is an integrated developed a completely set the Reality Check behavior for assessment, suite of technologies new kind of mobile betting period in the secure back from money deposits and enabling casinos to experience with casino office. When a player withdrawals to frequency harness the power of games and race and sports reaches a break, the of login, while players have mobile and deepen betting, featuring patent- session is automatically access to RG information customer relationships. pending technology and closed and a configuration from the account screen Throughout a visit, 90% RG features that attract option introduces a new and direct links to help of land-based casino and hold the attention of login after this break. websites.
63 ADVANCING RESPONSIBILITY features and system-supported is reached and the ability for players PlayDigital functionalities, with the main to further reduce their limits within objective of helping players make the current session. Some program The rapidly evolving world of digital informed choices. Therefore, the formats permit players to further gaming requires a sophisticated majority of IGT’s VLT RG features limit their play within parameters that approach to implementing RG are designed to enhance player have been defined by the operator. best practices and security tools for education and self-awareness. IGT strives to develop tools that the protection of players. As the Some jurisdictions require features are easily configurable for operators industry has progressed into the to help players in a user-friendly while being player-friendly and world of remote gaming, operators and unobtrusive manner, as accessible. In some cases, this type have worked with suppliers to well as to keep track of the time of RG measure may be associated reproduce the in-store lottery and money they have wagered. with a player loyalty card. and instants playing experience VLT pop-up reminders might by optimizing lottery play online, indicate the time remaining in a A limit-setting program provided while ensuring the presence of play period as determined by the by IGT in Canada includes the RG controls at each stage of the player or operator, or by regulatory following features: migration of digital gaming over requirement. the internet.
• An opening screen that allows a Other features include age player to select the length of play IGT has implemented a range of verification; education about for up to one hour. player-protection tools on its digital randomness, probability, and demo portal interactive.igtgames. independence of events to dispel • The ability for an operator to com, where B2B customers can see myths and erroneous perceptions control the maximum length applications that can be embedded that players might have about of play and the amount of the into their websites. Operators can gambling; setting time and monetary wager. implement these features and limits for sessions; self-assessment functionalities to be compliant with surveys on problem gambling; • VLT pop-ups that remind players their market rules and regulations, or permanent clocks displaying time how long they have been playing to exceed the minimum requirement. and game/session duration; credit and ask if they wish to continue. meters showing monetary amounts; IGT’s online player-protection restriction of money inserted; When the last session’s duration tools have been designed to spending predictions; and automatic expires, players are informed that provide operators with baseline session stops. their time has elapsed, and they features and functionalities that can must cash out. be implemented to allow players IGT has experience with several easy access to features such as: forms of system-based limits using a In jurisdictions requiring the display variety of factors. These factors can of additional information to players, • Self-Exclusion and Timeout: be as basic as the length of a session IGT has worked with regulators and Players can choose a timeout, and the amount wagered; or they operators to create RG information which allows a short break from can be more robust, such as limits on and tools for the gaming screens. gambling by blocking their player losses per day, per week, and/ These gaming-information screens account for 24 hours, 48 hours, or per month. Limit-setting features include: seven days, or 30 days. Players can be enacted on a mandatory also have the option to choose or voluntary basis and set by the • Signs of a gambling problem. self-exclusion, a formal process operator or player depending on where they request prevention the regulatory requirements. Other • RG tips. of access to their online account variations include enforced timeouts for a period from six months to or “cooling-off” periods once a limit • Budget-setting suggestions. permanently.
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to understand their current • Game Limits: Players can select their daily deposit and daily, situation. The higher the score, the more likely it is that IGT Sports Betting weekly, and monthly game limits. By completing the fields, players their gambling could be a For account-level will activate automatic checks problem. monitoring, IGT Sports performed by the system. Once Betting provides tools completed, their deposits and • My Financial Transactions: to allow operators to Players can view the date, see betting patterns play behavior will be regulated within player accounts. and monitored. amount, type of transaction Most regulated betting made, description, and game markets enable some details. form of account-based • Myths and Misconceptions: sports betting, whereby Players are provided with a list • Game Transactions: Players players create an account of common myths that they can to place wagers, which look through for clarification. can view the game name, links information about session ID, start date, end the wagering activity date, duration, wager amount, • Gambling Risk Test: Players and wagering history win amount, and status. to an individual. Within can take a self-assessment any IGT PlayDigitalTM installations, account-level monitoring is performed both within the IGT Sports Betting system and within the Player Account Management (PAM) system, whether the PAM is IGT PlayCommandTM or a third-party system. Attributes like geographic grouping and financial patterns are all monitored from within the PAM. The PAM also features Know Your Customer, a process of verifying player identity, assessing potential risks, and monitoring transactions.
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66 IGT - SUSTAINABILITY REPORT 2018 Partnering with Our Customers
photo: Claudio Canali Gaming Machines - Field Operations 67 Rome, Italy Partnering with Our Customers
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Partnering with Our Customers GRI: 103-3
Customer relationships lie at products and solutions that meet Listening to Our Customers the core of IGT’s leadership. their specific requirements. IGT’s Customer First philosophy IGT consistently seeks feedback of service, collaboration, The Company evaluates markets from customers to improve responsiveness, and accountability differently, based on several products and services. Customer to customers all over the world business-relevant factors, to find Satisfaction Surveys are part has led to IGT’s good standing in those areas where customers’ of IGT’s ongoing efforts to the gaming industry, and ensures products can drive and support provide best-in-class service to the Company is aligned around sustainable revenue growth. IGT lottery and gaming customers customers’ goals to help drive consistently conducts global by understanding how well the responsible growth. research and pilot projects with Company is meeting their needs customers, retailers, and consumers in specific areas and identifying IGT serves customers in more than to provide innovative cross-channel products and services requiring 100 countries, and each customer products and services. Beyond improvements. presents different business needs implementing state-of-the-art and goals, diverse cultures, and equipment and systems, IGT Two distinct surveys are varying regulatory frameworks. is committed to working with customized according to two This worldwide experience customers to understand their different customer types provides IGT with a unique business challenges and design (commercial gaming and lotteries), understanding of how markets solutions that not only fit their with survey content further intertwine with global trends, and requirements and needs, but also customized according to the how it can provide customers with meet their players’ evolving tastes. customers’ geographical regions.
Customer Satisfaction of interviewees claimed which is of paramount customers are satisfied Surveys Among Lotteries they are satisfied with their importance to them. IGT with IGT’s hardware and Commercial Gaming relationship with IGT, and has proven to have a and software (78%), and Customers Worldwide 84% would select IGT strong understanding of considered them stable and again as a lottery solutions the goals and priorities of reliable. In 2018, IGT carried out partner. The validation was the customers, although the biennial customer evidenced in the high scores there are some areas for IGT has also carried out a satisfaction survey among attributed to customers’ improvement. In terms customer satisfaction survey lotteries worldwide. satisfaction with IGT of service and support, on commercial gaming A total of 69 lotteries employees. Customers also customers agreed that IGT customers worldwide. participated (33 from the validated their trust in IGT consistently delivers on Respondents claimed they U.S. and Canada, 11 from as a growth partner. This its promises (74%) and is are satisfied (71%) with Latin America and 25 was all predicated on their responsive to their needs IGT’s overall performance International). Customer belief that the Company (79%). As far as products and the machine quality at satisfaction is strong: 83% is aligned with their goals, and solutions are concerned, the time of installation.
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These surveys are 360-degree products, hardware, systems, and studies measuring multi-functional new games. This is conducive areas including technology, quality to the commercial gaming and performance of games and space, where customers can hardware, day-to-day operations, provide this type of information marketing, and innovation. in person. Breakout sessions on specific topics are offered over In addition to surveys, IGT also the course of multiple days so hosts Customer Advisory Boards that customers can provide very (CABs) where customers from specific feedback on products around the world are invited that are most relevant to them to provide candid feedback on and their facilities.
CAB ELEVATES THE GAMING Each year, IGT hosts approximately 70 of its top gaming CUSTOMER EXPERIENCE customers from all over the world as a part of the CAB meeting. The CAB provides IGT with an opportunity to gain valuable feedback from customers and demonstrate how their feedback can be used to continuously improve products and services. During the Executive Roundtable, customers have the unique opportunity to ask IGT senior executives questions related to how IGT can help their businesses or improve its own. Attendees take part in a spirited discussion on the issues, trends, and innovations that influence the gaming industry, led by some of the industry’s most respected and experienced leaders. In spring 2018, the event took place in the Reno-Tahoe area of Nevada, while the 2019 meeting was hosted at the Palms Casino and Resort in Las Vegas.
IGT leverages trade shows as a American Association of State and primary mechanism for connecting Provincial Lotteries (NASPL) trade with customers and showcasing the show in Cleveland, Ohio. In addition, latest innovations across all of IGT’s IGT supported the Public Gaming product segments. Additionally, Research Institute and La Fleur’s these events provide a platform for conferences, with participants offering IGT to gain meaningful feedback thought leadership and speaking on from customers. other topics relevant to the industry and our customers. In North America in 2018, IGT exhibited at events such as the In countries outside of North America, Global Gaming Expo (G2E) in IGT exhibited at industry events such Las Vegas, Nevada; the National as ICE Totally Gaming in London, Indian Gaming Association (NIGA) UK; G2E Asia in Macau; the South Trade Show & Convention, also in American Gaming and Suppliers Expo Las Vegas; the Oklahoma Indian (SAGSE) in Buenos Aires, Argentina; Gaming Association (OIGA) the Australasian Gaming Expo (AGE) annual conference and trade show in Sydney, Australia; and the World in Oklahoma City; and the North Lottery Summit, also in Buenos Aires.
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IGT is proactive in terms of Throughout 2018, IGT organized a pursuing new ways to capture series of events designed to meet and analyze actionable data to with customers and discuss topics support customers, taking the of interest. Such initiatives allowed time to listen and evaluate their IGT to nurture its relationship with businesses from every angle, customers while providing them with an and taking collective ideas from opportunity to bring forward issues and analysis to action. suggestions.
LOTTERY CUSTOMERS EXCHANGE RESEARCH IDEAS AT THE GLOBAL GAMING INSIGHTS EXCHANGE MEETINGS In April 2018, IGT invited 13 representatives from nine lotteries from around the world to attend the 10th annual IGT Global Gaming Insights Exchange, the only Sports Betting Expertise workshop in the gaming industry that focuses solely on market research. For the on Display at GiGsE second year, IGT hosted the event at its Instant Ticket Services facility in Lakeland, in Miami Florida. Participants were asked to provide a presentation of interest to their research colleagues and join multiple roundtable discussions. Under the theme At the 2018 Global iGaming “exchanging experiences,” the event created a unique opportunity for attendees to share and discuss research programs, methodologies, successes, and challenges, Summit and Expo (GiGsE) while expanding their professional and personal networks. annual event dedicated to the U.S. digital gaming In-house attendees’ knowledge was impressive, as they represented 162 collective industry, IGT marked its years of lottery research experience. Participants included the Atlantic Lottery Corporation (Atlantic Canada), Loterie Nationale (Belgium), the Missouri Lottery, presence as an expert in National Lotteries Control Board (Trinidad and Tobago), Nebraska Lottery, New digital gaming and sports Jersey Lottery, Ontario Lottery and Gaming Corporation, Washington’s Lottery, betting. GiGsE gives and the Wisconsin Lottery. Given the success of the event, IGT hosted a second operators, regulators, and Global Gaming Insights Exchange a month later in Madrid, Spain. suppliers the ideal platform to network, learn, and drive the digital industry forward. GiGsE created an immense opportunity to show the U.S. that IGT is a major contender when it comes to sports betting, as the show was held shortly after the U.S. Supreme Court’s decision to overturn the Professional and Amateur Sports Protection Act of 1992 (PASPA).
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CUSTOMER EVENTS HELP GROW LATIN AMERICA BUSINESS
LOTTERY LEADERS GATHER AT SMART-TECH
IGT brought together 80 gaming customers in Cuzco, Peru, in September 2018 for the Company’s first-ever, large-scale Product Gallery dedicated to the Latin American market. The four-day event gave customers exclusive access to innovative content and products dedicated to the market and tailored to their players. The Cuzco Product Gallery event was part of the launch of the Signature Club program, a preferred customer program that was implemented in the region.
An earlier event in Argentina allowed IGT to further IGT reinforced its partnership with customers while develop customer relationships and growth initiatives stressing efforts to support long-term growth at the in the region. The IGT Buenos Aires Showroom annual SMART-Tech conference in March 2018. Thirty- 2018 at Complejo Costa Salguero in April 2018 six lotteries, 23 of which are IGT customers, attended the was another opportunity for IGT to showcase the event hosted by the Public Gaming Research Institute most current cabinets and games, offer educational (PGRI) in Miami, Florida. IGT was one of the Platinum talks, and pave the way for business exchanges. Sponsors, and senior leaders took part in many conference These types of events show that IGT is committed sessions, presentations, and panel discussions. At the event, to sharing experiences and designing customized IGT executives spoke about ways customers can grow products, thus supporting growth for customers and their business, reinvigorate retail, enhance content, and the Company itself. modernize payments.
development. The event their achievements and set the tone for an extremely European Lotteries Share Growth-Driving Ideas provided customers from challenges, any innovations collaborative environment. in London various jurisdictions with they developed, and the Participants then formed an opportunity to engage discoveries made along the smaller groups for an IGT Thirty-four participants, in close conversation and way. This flexible format Brainstorming Innovative featuring 12 lotteries idea sharing, and hear generated interesting Games (BIG) session to from across Europe, about instants business conversation and allowed tackle challenges facing gathered at IGT’s 11th successes, including sales participants to share lotteries across jurisdictional annual International figures, market share, important learnings. borders, resulting in several Instants 360° Workshop in benchmarks, and trends. Question-and-answer new ideas to be developed London to share ideas and Additionally, lottery sessions followed each into concepts for new games collaborate on new game participants highlighted lottery’s presentation and and play styles.
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Customer training is integral When IGT is delivering a to IGT’s global organization. major project, training support Providing valuable on-site, online, is included in many sales and classroom training is also an agreements. In these instances, important component of IGT’s IGT employees facilitate on- Customer First approach, and a property training that includes process that continues to create extensive classroom education, value for IGT and its customers. practical on-floor training, and IGT has training facilities in Nevada, go-live support to ensure that Oklahoma, Mississippi, New Jersey, the IGT solution is working as it is Rhode Island, and Argentina. intended.
CUSTOMERS IN SHAPE WITH TRAINUP+ SERVICES
TrainUp+ is a service IGT provides to customers focused on training lottery sales organizations. IGT’s TrainUp+ services provide lotteries with comprehensive programs to ensure new sales employees effectively learn the skills and behaviors necessary to be an integral part of a world-class sales force. Customized content and materials are developed for individual lottery training needs, while providing various service levels and programs leveraging IGT’s certified training resources and award-winning third-party learning and development partners.
TRAINING AND EDUCATING CUSTOMERS WITH IGT UNIVERSITY
For technical product training, IGT University has a comprehensive course that gives gaming customers helpful information on topics such as slot machine maintenance, system products and functionality, system upgrades, new bonus modules, and more. This type of training is often opt-in and can be accomplished online via IGT University training modules at one or more of IGT’s global training facilities. This type of training empowers IGT customers to be more self-sufficient and better-equipped to independently manage minor service issues, rather than relying on the IGT Global Support Center or IGT to dispatch a field service technician to an individual casino for every service disruption.
Prioritizing Quality testing processes that on casino floors (at no in the Core Video enable the Company charge to customers). Segment with the Test to produce higher- Game performance is Bank Program performing games and then closely monitored In 2018, IGT completed improve IGT’s position during a 90-day period the core video in the market along the and, based on the turnaround to increase way. A driver of this performance, IGT either the quality of the turnaround is IGT’s Test releases the game, products in the segment. Bank Program, under re-works the game, IGT has rigorous which IGT deploys new or scraps the game internal and external slot games on test banks altogether.
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To help drive performance and innovation across IGT’s game content, the Company hosts gaming Player Focus Groups in more than 12 locations around the world, including the Las Vegas campus. In 2018, the Company hosted more than 2,400 players who were able to experience new IGT games and provide candid Leading Innovation feedback. Thinking BIG with Instants IGT is committed to pursuing The Company has brought innovation when developing its many innovations to the lottery IGT’s BIG sessions, short products, services, processes, and industry through BIG sessions, a for Brainstorming Innovative management across all gaming collaborative process through which Games, are commonly categories and global markets. new and exciting game designs, held at the center of IGT’s The extensive knowledge play mechanics, and added-value instant ticket operations and experience that IGT has features are developed in a casual, in Lakeland, Florida, often gathered over the years as a creative environment. BIG sessions with participating lottery leader in the gaming industry are opportunities to develop customers or licensors. allows the Company to deeply solutions to specific customer Customer requests and understand customers’ needs challenges and prompts. unique portfolio needs and design turnkey solutions. get the innovation process IGT recognizes that digital is rolling, and concepts are In the commercial gaming transforming the gaming landscape, more fully developed in segment, innovative TRUE which is why, in 2018, IGT announced BIG sessions, with IGT’s 4D™ technology combines the creation of IGT PlayDigital™, BIG team collaborating with mid-air haptics technology with with a formalized team dedicated lotteries and harnessing glasses-free TRUE 3D and to the digital growth of customers. Company-wide expertise gesture recognition technologies, This new group is set apart from the and third-party partners to enabling players to experience rest of the IGT organization due to develop revenue-driving tactile feedback when they the importance of digital for all IGT ideas. These range from new interact with the games’ 3D customers, and is forging new digital game designs and themes graphics. This new technology opportunities in all areas for all digital and unique play actions allows players to literally reach products in casino, tribal, lottery, and to new ways to extend a out and touch graphics that online gaming, and across all global traditional printed product appear in free space without markets. The PlayDigital brand into other channels, including the need for haptic gloves. represents a unified “digital factory” draw and digital games. Additionally, IGT’s PowerSight™ committed to ensuring faster, more Throughout the process, the technology gives players the responsive, high-quality deliveries BIG team engages graphic option to use their eyes instead of high-performance games with design, programming, of their hands to control several more innovative features. The team manufacturing, and player-selectable components provides a one-stop-shop through merchandising perspectives of gameplay by simply gazing at a simplified, fully integrated digital to ensure that ideas are both on-screen graphics. platform, as well as product experts valuable and producible.
74 IGT - SUSTAINABILITY REPORT 2018 who understand the global market and features diversified centers to meet the customers’ needs and and work closely with customers to of excellence in San Francisco, enhance the players’ experience. answer questions and foster their Providence, London, Manchester, program’s growth every step of the Rome, Belgrade, and Beijing. In June 2018, IGT’s PlayShot™ way. platform processed one of the first IGT is ready to leverage the sports bets placed in New Jersey, IGT currently holds one of the potential of its distinctive which was the first new market in the world’s largest and broadest positioning in the digital U.S. to legalize sports betting after the portfolios of digital gaming business with a multi-channel repeal of the federal law prohibiting products and the largest patent offering across all products. this type of wagering. In the months portfolio. More than 500 The Company is committed leading up to the repeal, IGT worked employees are involved in digital to improving the offering of with the casino customer and local projects across business units and products and services through regulators to prepare the launch and serve more than 100 customers the design of technologically train the customer’s staff on how to globally in more than 30 countries. advanced systems intended to process bets. In the following months, The Company holds a leading increase products’ security, and the PlayShot platform went live in five B2C position in the Italian market new hardware and software more U.S. states.
TRANSFORMING PLAY AT In September 2018, IGT participated in the NASPL NASPL 2018 IN CLEVELAND conference under the powerful theme “Transforming Play,” and showcased breakthrough solutions to enhance the player experience.
IGT PlayDigital™ made its official trade show debut at the event, demonstrating to attendees how the team supports lotteries as they enter or expand into the digital world. All eyes were also on PlayShot™, IGT’s end-to- end sports betting platform, a complete turnkey solution built with player insights and more than 350,000 hours of development. The platform is ready to assist states in entering sports betting. IGT also identified a need to support lotteries as they work with their state governments to define sports betting regulations. IGT’s Sports Betting Academy is a no-charge service provided by IGT’s team of experts to educate our customers so they can better educate their legislators as states consider regulating sports betting. This is a partner service that IGT offers prospective customers before they make any decision about a provider. IGT’s mobile solution, PlaySpot™, also had a presence, depicting solutions for lotteries that allow players to purchase and play lottery games on their mobile devices while at a lottery retailer. Throughout the event, IGT participated in a number of speaking opportunities to share insights and perspectives on some of the major topics affecting the industry, and sports betting was top-of-mind for all. IGT stressed the need for lotteries to support states as they work through the regulatory requirements and infrastructure needs. Lotteries are uniquely positioned to offer sports betting, and quick action will benefit not only the states but also the entire industry.
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Augmented Reality in Lottery Offering
New lottery services are In addition to creating solutions for production and marketing being developed using new and developing markets, IGT’s services. In 2018, IGT produced augmented reality (AR) innovation processes encompass more than 700 games from the technology that can provide the latest technological advances to printing facility and headquarters engaging and functional 3D develop products for new and hard- in Lakeland, Florida. experiences during a visit to-reach demographics. Because to a retail store. Through only a few U.S. states currently IGT’s Instant Ticket Services an AR lottery app for allow full digital lottery products, facility in Lakeland underwent smartphones that uses the IGT has developed a unique digital a dramatic and exciting device’s camera, “targets” enhancement for lotteries’ instants transformation in 2018. such as AR-enabled lottery portfolios that encourages players The Company added a signs and products at a local to expand their playing preferences, 45,000-square-foot expansion retailer come to life. The while also appealing to a new to the building, centered around Lottery AR concept adds potential player base. Augmented the addition of a new TRESU visual, animated experiences reality-enabled tickets encourage flexographic printing press. The for lottery players at a players to connect with their TRESU press has increased lottery retail store. These physical scratch tickets in a more the facility’s ticket production games present players with digitally inclined world. capacity by 30%, benefitting two options to reveal the customers by not only adding outcome: they can scratch as IGT is a global leader in providing efficiency and flexibility, but also they would any other game, instant ticket printing and related creating new opportunities for or, by scanning with an services to lotteries all over the innovation. The expansion is a associated app using their world. The Company manages clear indication of the Company’s phone, the ticket comes the world’s largest instant lottery ongoing efforts to proactively to life in an immersive 3D through Lottomatica, and supports meet industry changes in terms environment, letting the seven of the 10 largest ones of growing market demand, player reveal the outcome globally. Altogether, more than security challenges, and via an engaging, interactive 60 customers worldwide place continued innovation of instant game. their trust in IGT’s instant game games.
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INVESTING IN CUSTOMERS, PLAYERS, AND LAKELAND’S LOCAL ECONOMY
experience products and services first-hand in an engaging, trade-show-like environment. Consequently, the Company designed a Player Experience Lab that closely mirrors the one in its Providence location, and filled the space with interactive demos, dynamic videos, and the latest advancements and innovations in physical tickets. Visitors leave with a better understanding of IGT’s instant products and services, and appreciate how the Company has become the trusted growth partner for its lottery customers worldwide.
IGT hosted tours of the building and new TRESU press for lottery personnel, scheduled around the NASPL Professional Development Seminar being held in nearby Orlando in 2018. IGT’s new printing press and updated facility in Lakeland, This session was an exciting opportunity for customers to see Florida, represent a $15 million investment in the lottery the new press in action. industry, IGT’s customers, and the greater community. Employment at the facility has grown 112% since opening For customers located around the world who were not able in 2009, and the expansion will boost full-time employment to attend the seminar, IGT developed a unique way for them at the plant by 24% in the coming years. This growth has to share in the same excitement as their colleagues who supported nearly $5 million in spending with local Lakeland- attended in person. The Company created a virtual reality area businesses. (VR) tour of key areas of the facility’s expansion, including the new press, upgraded security and warehouse areas, and As part of the expansion of the printing facility in Lakeland, the building’s new lobby. This VR tour was presented at trade IGT wanted to give visiting customers the opportunity to shows around the world through the second half of 2018.
IGT’S TRUE 4D™: IGT is the first gaming company to apply mid-air haptics UP CLOSE AND PERSONAL technology to a commercial product. TRUE 4D technology amps up the glasses-free TRUE 3D™ visual experience by combining mid-air haptics technology with glasses-free TRUE 3D and gesture recognition technologies. The mid- air haptic technology enables players to experience tactile feedback when they interact with the games’ 3D graphics. Players can see an object floating in front of them with TRUE 4D and reach out to move it and feel it in their hand, creating a multi-sensory gaming experience.
TRUE 4D has been released on IGT’s CrystalCurve™ TRUE 4D hardware, and no other gaming cabinet offers this experience. Scenery and symbols are all modeled to add depth to the visuals. TRUE 4D applies a mathematical representation to the surfaces, calculating their distance to the player’s hands. This allows the game to know where the player’s hand is in relation to a door, for example, and calculates the moment the hand makes contact with it to push it open. IGT has also added the ability to feel the object with ultrasound technology, which uses those mathematical calculations to deliver touch sensations to the hand, meaning the player can also feel the door as they push it.
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PIONEERING GEO-MONITORING TROUBLESHOOTING IN ITALY
Lottomatica retailers do not always identify the specific component that is causing a problem, only the malfunction. By leveraging accurate asset data and the ability to identify the correlation between design, delivery, and behavior of the various components, IGT can take a step toward a new way to be proactive, detecting the problem and quickly identifying the main path for root causes. Lottomatica has developed an innovative Geo-monitoring platform, designed in collaboration with Google, to constantly check and integrate the Lottomatica network status and issues received by the Contact Center across Italy. The platform enables a new customer assistance service that focuses on promptly detecting the root cause and preventing the issue from becoming a service outage. A Control Room working 24 hours a day, 365 days a year activates itself upon receiving alarms from infrastructural and application components, or due to reporting by the Customer Care teams. All services are in real time; therefore, speed of U.S. In Italy, 30,000 new intervention and restoration of infrastructural failures New High-Density (hardware and software) are fundamental to guaranteeing Barcode for Lottomatica’s Lotto HDBC-ready service continuity. Best practices and market tools are Lottery Tickets terminals were already in used for infrastructure monitoring but, unfortunately, place in 2018 and 35,000 a component does not give a warning before it stops running. For this reason, the Control Room proactively Lottomatica has improved more are ready to be captures all of the signals that represent the non- the verification process for installed, although manual functioning component at the point-of-sale, which may be winning tickets to counter validation will always be coming from network connections, terminals, peripherals, fraud risks with the use possible. Consumers will or another source. of the High Density Bar be able to scan the code The platform collects data from different systems used Code (HDBC), a bi- with their smartphones by Lottomatica, aggregating and quickly accessing data dimensional code that and check their tickets, to perform a root-cause analysis of the service status can carry multiple types while Lottomatica will be to promptly identify a possible common cause of the of information and be able to check the correct detected alarms or received issues. Through a predictive module, the system quickly intercepts any weak or latent read exclusively with a application of responsible signals and identifies any common causes, prompting an dedicated reader. The gaming features, profile inspection to detect and solve eventual problems before HDBC is currently being gaming habits, and they manifest on the network. used to validate almost detect emerging atypical all lottery tickets in the behaviors.
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• Staffing Levels and Performance Measurements are continuously reviewed against statistics and trends to maintain optimal field staffing levels. Field Service leadership measures the performance of each staff member as well as the team Responding provide industry-leading to provide guidance and to Our Customers’ Needs uptime, whether during normal feedback. The Local Field daily routines or record- Service Management Team Listening to and meeting breaking jackpots: then provides performance customers’ needs across all the reports to the customer for full world’s time zones is a challenge, transparency and accountability. • Field Service Standards as customers differ in terms of size, outline all Field Service services required, and status, from Technician (FST) Lottery customer satisfaction state lotteries and regional gaming responsibilities and ratings indicate that IGT Field halls to local gaming retailers and performance requirements, Services performs at an overall single players. Needs also vary including procedures for excellent level. IGT Field Services in terms of jurisdiction-specific service visits and preventive achieved its internal target of regulations and agreements at maintenance on each piece 98% (satisfied plus very satisfied both the national and local levels. of equipment serviced by customers), which indicates strong While embracing such complexity, IGT. They also include performance in relation to dispatch IGT has increasingly fine-tuned the training for FSTs to follow response times and call handling organizational aspects of serving when working with peers, across lotteries. customers, pursuing excellence in customers, and third-party its processes as well as through its resources. Field Service people. Standards help every FST provide the highest level of IGT Field Services service consistently across IGT’s comprehensive service plan the retailer base, regardless begins with reliable equipment, of the type of equipment cutting-edge peripherals, and a being serviced. robust communications network. Our Global Field Services • Performance Levels and organization is unique in the Expectations are set service industry, as it offers a according to Field Service turnkey solution by maintaining all Standards. Staffing levels equipment, third-party signage are reviewed to ensure and, in some cases, competitors’ that customers can rely equipment, from communications on adequate in-state staff devices to terminals along with any equipped to respond to other connected device. all service calls in a timely manner. IGT understands The IGT Field Services the importance of staffing organization applies three principles each customer base with an to every aspect of its Quality appropriate number of FSTs Process to minimize issues and to match demand.
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Types of Global Field Services offered by IGT BUSINESS TYPE LOTTERY GAMING Defined in all lottery contracts; each Casino and gaming operations vary jurisdiction provides specific service in many ways based on regulatory deliverables for the lottery retailer. compliance, property ownership, management and beneficiaries. As a result of the varying degree of contracts, IGT provides multiple levels of service response. The services can consist of on-site service personnel, remote service personnel, and rent-a-tech. In some cases, the casino/gaming venue has its own service personnel on site.
Service In each lottery agreement, there are With the wide variety of contract types Responses specific response time requirements for managed in the casino and gaming retailer terminal and network repairs. This platforms, response times vary across each Time time varies by jurisdiction and could be as location. aggressive as 60 minutes to respond or as lenient as 24 hours to respond, based on the response type determined by the transaction status of the retailer terminal and network.
Service A service dispatch is when a lottery retailer When a casino or gaming operator Dispatch contacts the IGT services hotline to contacts the local or national support line report an issue with any piece of lottery and reports an issue with the machine, an equipment or communications device. If FST is dispatched to the site to handle the the contact center representative is unable repair. to help the retailer bring the equipment to operational status immediately, they generate a dispatch for the local FST.
Preventive Some lottery customers need a This is determined by the varying Maintenance maintenance plan that requires local field agreements with casino operators, as service personnel to perform routine preventive maintenance requirements maintenance visits that ensure the retailer differ. That said, maintenance on machines terminal and network remain in a state of is generally performed on a 120-day cycle. high performance.
Provisioning IGT Global Field Services is a full-service As a full-service network provider, IGT network provider. As such, IGT staff staff provide gaming machine service, as provide point-of-sale service as well as well as installations, removals, relocations, network infrastructure installation, removal, and pre-sites. Depending on the venue and and relocations. Networking includes game types offered, the communications either satellite or cellular communications network supporting IGT’s games is along with pulling cabling and coaxial cable generally established by the location and to transmit data. typically consists of a specialized network infrastructure.
Retailer Many lottery customers require on-site Not applicable. Training retailer training, which is provided by trained FSTs.
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leadership level. To enhance employee safety and training opportunities, key individuals are appointed as regional safety managers.
IGT’s Global Field Services Safety Committee (GSSAFE) The Field Services organization publishes a weekly safety tip and makes employee safety a high monthly newsletter alerting field priority via annual training, service employees to common and equipment inspections, and job seasonal hazards on the job. Tips task assessments. IGT provides and newsletters are also posted on all personal protective and the internal Yammer network for all related training to its field service employees to read. employees specific to the jobs they perform. For example, an FST In 2018, GSSAFE collaborated with installing satellite equipment is corporate Environment, Health provided with Fall Prevention gear, and Safety (EH&S), enhancing which includes a full-body harness, IGT’s Fall Prevention and Ladder lanyards, and anchor points. Safety Safety programs. Additionally, leaders are established at each these teams worked with the IGT site, as well as at an organization training team to deliver the IGT Sign Installation program.
New safety programs released in 2018 based on these collaborations In 2018, 12 newsletters, 52 safety tips, and 2 include: bulletins were published. Topics included the following: • Electronic Game Machine (EGM) Safe Handling. DRIVER SAFETY • Casino Sign Installation. PROPER LADDER USE AND INSPECTION • Updated Fall Prevention FALL PROTECTION Program (which aligns with the U.S. Occupational Safety and Health Administration [OSHA] ENVIRONMENTAL HAZARD AWARENESS general industry standards). (SUCH AS ZIKA VIRUS PROTECTION) The efforts of the GSSAFE SEVERE WEATHER SAFETY GUIDANCE organization and collaboration with IGT EH&S has led to a steady ELECTRICAL SAFETY, BOTH AT WORK decrease in reported injury rates AND HOME year over year. In 2018, there was a 9.5% decrease in injury reports SAFE LIFTING TECHNIQUES compared to 2017, and a 15% decrease compared to 2013.
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Moreover, safety training curricula IGT Contact Centers has been established for the FSTs, and varies based on the work The Contact Centers’ mission is to tasks. The safety training programs provide 24/7 business assistance, offered to the Field Services accurate information, and effective staff include: procedural safeguards to all locations where IGT provides this service to its • Health Hazard Awareness. customers. In particular, its mission is to maximize customer satisfaction with • Outdoor Heat Exposure. a specific focus on both responsible gaming and compliance while • Ladder Safety. ensuring sustainable costs through
• Fall Prevention. the identification and implementation of best practices (e.g., streamlined • Fire Extinguisher Use. processes, quality management, and common tools). Contact Centers and • Electronic Gaming Machine dispatch teams in multiple geographic (EGM) Handling. locations provide superior redundancy and disaster recovery capabilities, in • Warehouse Safety. addition to offering service in local
• Universal Waste. languages to enhance the customer experience. This solution has boosted • Powered Industrial Trucks. response times and overall customer satisfaction while reducing call • Safe Lifting. volumes.
WORLD-CLASS Technology Training and Support Services (TTSS) delivers extensive training EXTENSIVE to IGT internal organizations in many different business units throughout TRAINING the year, including Field Services, Product Management, Manufacturing, Compliance, Engineering, and other internal support organizations. For all new products and ongoing product conversions, upgrades, and modifications, TTSS is the organizational entity that consumes technological information, merges it with expert business awareness, and delivers manuals, videos, knowledge bases, online help systems, webinars, classroom training (both on-campus as well as at IGT customer sites globally), and highly customized consulting. Training services are individually analyzed and contracted with each customer to ensure that their needs are met. IGT’s lottery customer trainers are under the direct leadership of managers who participate in training delivery directly and have more than 20 years of experience delivering lottery training globally. Each lottery training course is tailored to the lottery’s users, workflows, and technology choices through a detailed training needs analysis process. TTSS provides a major conduit through which many of the benefits of IGT’s industry leadership are delivered to customers directly in the form of knowledge and expertise. In short, IGT’s trainers have trained more lottery customers in more places than any other company or team of individuals in the world.
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The Contact Centers track multichannel assistance to America) for which IGT provides performance daily. In addition players worldwide, as well as to technology and services. to the various operational lottery and commercial partners reports generated daily, weekly operating within the entire digital Organizationally, Global Consumer performance meetings are held offering – iLottery, sports betting, Services are coordinated via a to review the previous week’s poker, casino, skill games, bingo, dedicated team in the Rome office, performance. Service-level metrics and, in Italy, pre-paid cards – and rely on local operational sites provide insight into any problems through nine centers from six in the U.S., Canada, and Italy, that have occurred in the previous countries and in four different and through outsourced centers week. The Contact Centers also languages. The centers focus on in Romania and Albania. As a generate reports to review the responsible gaming, compliance, core element of its philosophy, year’s performance. and customer satisfaction, acting management ensures that all Global as a partner and advisor directly Consumer Services employees B2C Services to players where IGT manages (part IGT, part outsourced via third (Global Consumer Services) the customer base via a lottery parties) are always provided with contract or commercial license the best working conditions, from IGT Global Consumer Services (Italy, UK), and to third-party ensuring workspaces are compliant Business-to-Consumer (B2C) organizations (e.g., World Lottery with all relevant regulations to Contact Centers provide 24/7, Association members in North providing up-to-date training.
IGT B2C Contact Centers Across the World
Providence, Rhode Island, U.S.
Toronto, CANADA Rome (Governance) and Venice, ITALY
Bucharest, Buzău and Costanta, ROMANIA
Tirana, ALBANIA
MORE THAN 1.3 MILLION CONTACTS IN A YEAR 24/7 MULTI-CHANNEL ACCESS
4 LANGUAGES 189 FTES CUSTOMERS IN EUROPE COUNTRIES AND NORTH AMERICA 8 5 CENTERS
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Global Consumer Services The Trinidad and Tobago Contact consistently measure performance Center supports regional lottery using the same KPIs across each and commercial services, while location. In addition to the various Costa Rica, Colombia, and operational reports, a monthly Jamaica provide assistance to regional lotteries, and Chile and Measuring report keeps track of each Contact Customer Satisfaction Center’s performance and emerging the Dominican Republic provide issues. The main indicators include support to commercial services. Each year, an external research the phone call response rate, institution is engaged to chats conducted, and emails sent IGT’s Europe, Middle East, measure customer satisfaction within a specific timeframe, as and Africa (EMEA) Contact of 1,500 online Italian players well as the rate of incoming issues Center operations provide lottery (lottomatica.it) and 1,500 pre- solved upon reception. In 2018, retailers, lottery customers, and paid cardholders (CartaLis) all Global Consumer Services commercial services clients with a among: Contact Centers handled a total of dedicated team of associates that • 19,195 online players who approximately 1.3 million contacts can be reached during system consented to participating across all channels (voice, chat, and working hours, in accordance with in market research and email), and more than 80% of calls customers’ requirements, 24/7, 365 contacted lottomatica.it in were answered within 120 seconds. days a year. the five weeks preceding the Furthermore, the Global Consumer survey delivery, and Services unit measures customer The EMEA Contact Center • 20,567 pre-paid cardholders satisfaction by administering surveys manages its operations from (with marketing research to several customers. five locations: Poland (Warsaw); authorization) who Spain (Madrid); Czech Republic contacted CartaLis in the Periodically, the IGT audit/control (Prague); Slovakia (Bratislava); three weeks preceding the team asks Global Consumer and Turkey (Ankara). Its services survey delivery. Services to describe the Contact include a call center and service Centers’ procedures and show real The key measure is the overall cases; furthermore, each contact satisfaction and percentage center periodically sends reports to SUPPORT TO of customers who are either all stakeholders that certify control of ALL COUNTRIES “satisfied” or “very satisfied.” overall performance. IN LATIN AMERICA Lottomatica strives to achieve a minimum of 3.85/5 on the B2B Services Mexico’s Call Center provides overall score, and no less three different levels of assistance than 75% on the second Key IGT’s Business-to-Business to the entire Latin America and Performance Indicator (KPI). (B2B) Contact Centers provide Caribbean (LAC) region, including assistance in the form of accurate regional lottery support services, For Canada, IGT started information and effective point-of-sale commercial services, monitoring customer procedural safeguards to IGT’s and gaming support to all LAC satisfaction scores for end users of systems and terminals gaming customers (casinos) located players from playOLG.ca in retailer locations and casinos in 19 countries in the region. Also, (Ontario Lottery and Gaming by identifying and applying the Mexico Call Center provides Corporation) on a daily basis. appropriate optimizations with gaming system support by native IGT’s Service Level Agreement a specific focus on Responsible Spanish speakers to all Latin (SLA) requires a score of 7 in Gaming, also in cooperation with American customers, resulting in a range of 1-10 on a monthly areas managed by IGT corporate better service. basis. partners.
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desk that provides a single contact In addition to daily generation of other departments, such as point for customers. Its capabilities various operational reports, the Operations or Field Services, include first-line lottery retailer Contact Centers hold weekly and which are usually co-located support, including field service monthly performance meetings. with the Contact Center in technical support. It is supported They also generate reports to the territory where the services by a project-oriented team that review the year’s performance. are provided. One of the most is focused on the creation of important reasons to maintain high added values, and prides The Contact Centers’ locations Contact Centers in the EMEA itself on its long-term and highly may serve as a disaster recovery region is to ensure compliance professional cooperation with all or extraordinary circumstance with the new EU General customers. option for other locations. This Data Protection Regulation allows the Contact Centers to (GDPR). At the global aggregated level, maintain service levels as per in 2018, B2B Contact Centers contractual agreements in any In New South Wales, Australia, received more than 2.1 million such event. a third-party Contact Center contacts (voice, chat, and emails) dispatches IGT FSTs to service from retailer locations and casinos The locations meet language calls on gaming machines for across LAC, EMEA, and U.S. and client requirements, and club and hotel gaming operator regions. ensure close cooperation with customers in the region.
IGT B2B Contact Centers Locations and Countries Served
SPAIN
CZECH REPUBLIC
USA COSTA RICA POLAND
JAMAICA SLOVAKIA
MEXICO COLOMBIA TURKEY DOMINICAN REPUBLIC
TRINIDAD EMEA MORE THAN & TOBAGO 280,000 U.S. MORE THAN ITALY APPROX. CONTACTS 950,000 1,500,000 CONTACTS CONTACTS
LAC MORE THAN 990,000 CONTACTS B2B Contact Center Location
85 86 IGT - SUSTAINABILITY REPORT 2018 Valuing Our People
photo: Stella Biccini Betting Product Development Marketing Rome, Italy
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88 IGT - SUSTAINABILITY REPORT 2018 Valuing Our People
IGT values, respects, and engagement through focused appreciates the contributions of initiatives such as employee our more than 12,000 employees ideation programs to showcase, who work and live in 58 countries. on a global level, innovative In the heavily regulated global business solutions created by gaming market, the diversity employees. For IGT, diversity, represented by our people enables inclusion, and innovation IGT to anticipate global business continue to be at the core of needs, identify local market our People and Transformation opportunities, and better connect organizational strategy. IGT has partnered with to our customers and communities. the All-in Diversity Diversity and Inclusion GRI: 103-3 Project as a founding Fostering a Positive member and participant. IGT understands that The project aims to Organizational Climate the varying backgrounds, support the progress of the global gaming Employees who are more experiences, and perspectives industry in terms of engaged are able to contribute of its employees should reflect diversity, inclusion, and in more positive ways and have the global customers it serves workplace equality increased motivation to deliver and the communities where it through data collection innovative products and solutions operates. Diversity is supported and measurement and benchmarking progress to customers. There are a number by a fair and inclusive culture of the industry as a of factors that influence employee that enables all employees whole through an Annual engagement, including a healthy to feel valued, respected, Report called the All- work environment, leadership engaged, and empowered Index. The organization presence and expectations, work-life to contribute to the business. also provides toolkits, With the support of leadership, hosts events, and integration, and an inclusive culture produces white papers that values diverse employee IGT’s Global Strategic Plan for the industry. contributions and personal and for Diversity and Inclusion is professional experiences. built on three prongs: people and processes, organizational In 2017, IGT launched a two-year culture, and customers and roadmap to increase employee communities.
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Supporting a Fair and communities, and supports a fair, and Inclusive Culture inclusive culture in which all employees feel valued, respected, and engaged. The Executive Diversity and Inclusion After a search conducted by the Council, comprising a cross-functional council, in 2018 IGT hired the first Vice team of senior and emerging leaders President of Diversity and Inclusion, who from around the world, helps IGT deliver is responsible for creating the Office of on its commitment to a workforce that Diversity and Inclusion and the Global reflects the diversity of global customers Strategic Plan for Diversity and Inclusion.
IGT created and staffed the Recognizing that diversity and built around underrepresented Office of Diversity and Inclusion inclusion is a leadership initiative, dimensions of diversity. Sometimes as a new center of excellence all members of the executive referred to as Employee Networks within People and Transformation, leadership team, including the Chief or Affinity Groups, DIGs help to formerly Human Resources. Executive Officer, participated attract, retain, and develop talent; The office drafted IGT’s written in inclusive leadership education foster inclusion; and drive business Global Strategic Plan for Diversity briefings focused on specific innovation. The groups are open to and Inclusion, which is publicly leadership qualities that promote all employees regardless of affiliation available on IGT’s website, inclusion at IGT. The goal is to or identity. These groups receive and includes the input of IGT’s ensure that by 2020, all employees formal, structural, and financial CEO, business unit leaders, and will participate in education and support from the Office of Diversity employees. The overall goal of engagement opportunities that and Inclusion and IGT more the strategic plan is to create promote a collective understanding broadly. DIGs support employees’ a more inclusive and equitable of diversity and behaviors and professional development, assist in organizational culture within IGT support an inclusive culture. the improvement of IGT’s policies and increase the representation and processes, and support various of underrepresented groups at all IGT established Diversity and business needs – from recruitment levels, consistent with applicable Inclusion Groups (DIGs)(1), which to marketing and everything in regulatory requirements. are networks of employees between.
PURPOSE AND DIG activities are primarily internally focused, but may also have an external component (e.g., recruiting fairs, charitable activities, professional associations, community boards, parades, IMPORTANCE OF etc.). Uniquely, DIGs enhance each of these strategic elements through their work. Executive THE DIVERSITY AND leadership sponsors provide guidance and oversight, help to remove organizational barriers, INCLUSION GROUPS review progress, and use their platform to communicate results to the organization. (DIGs) DIGs: • Provide a forum in which to share career interests and experiences that will promote career growth and satisfaction while working. • Generate an environment that welcomes, leverages, and enhances the experience and skills of employees. • Promote appreciation and respect for diversity and inclusion, thus creating a comfortable and safe work environment for all. • Provide professional development opportunities, mentoring, and networking. • Promote the efforts of the diversity and inclusion strategy to colleagues. • Strengthen the communication vehicles that support employee information and participation. • Assist in structured events, activities, and community outreach programs.
1) Diversity and Inclusion Groups (DIGs) formerly known as Employee Business Resource Groups (EBRGs).
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In 2018, IGT launched its first DIG welcome and encouraged to join Each chapter establishes a with “WIN with IGT: Las Vegas any DIG regardless of identity. leadership team to support the (Women’s Inclusion Network),” needs of that office or region, which was approved for expansion The application period for new and identify the priorities that to include chapters in Italy; DIGs opens each year from are valuable to the group, Latin America; Reno, Nevada; September through December. demonstrating a clear connection and Rhode Island. Additionally, Applications for new chapters to IGT’s business objectives new DIGs are being launched, of existing DIGs are welcome and the Company’s diversity including Military Veterans at year-round. Some groups might and inclusion strategy. Executive IGT, SuperAbilities at IGT (visible be specific to local regions, while leadership sponsors will provide and invisible disabilities), PRIDE others might be created with a guidance and oversight, help to with IGT (lesbian, gay, bisexual, global mission, vision, and goals, remove organizational barriers, transgender, queer, plus), and with local chapters developing review progress, and use their Greater Than 50 at IGT (ages specific targets and programs for platform to communicate results 50+). All of IGT’s employees are their local members. to the organization.
“VALORE D” IN ITALY
Lottomatica in Italy has signed the “Valore D” Employment Manifesto, a nine-point program defining specific instruments to enhance female talent in the Company. By signing the manifesto, companies commit to considering both genders in the talent selection stage, and monitor gender balance and pay gaps at all levels of the organization, with specific attention to maternity management and parental support. In 2018, Lottomatica confirmed its commitment to support women’s employment through several tools, such as maternity leave policies, flexible work, Company benefits, and smart working programs.
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with fairness, dignity, and respect. Any behavior that goes against these principles and diminishes the wellbeing of its employees, customers, or community is unacceptable and will not be tolerated. In 2018, IGT launched proactive, worldwide harassment prevention training for all employees, starting with the Chief Executive Officer. The length and content varied based upon regulatory requirements. IGT encourages anyone who believes they have Equal Employment GRI: 103-3 “reasonable accommodation” is been subjected to harassment one that enables an employee to to come forward with the IGT is committed to providing perform the essential functions understanding that they will be equal opportunity in employment of the job and may result in protected from retaliation and and a work environment that job restructuring, a change in appropriate action will be taken. values workplace diversity and use of tools and equipment, respect for all employees. This a policy adjustment, or work Protecting Human Rights policy applies to all terms and from home. As such, reasonable GRI: 102-41; 103-3 conditions of employment, accommodation is available to including, but not limited to, the all employees and applicants, IGT adheres to the principles application and hiring process. provided the accommodation set by the International Labor IGT provides equal employment does not create an undue Organization Declaration on opportunities for all employees hardship for the Company and Fundamental Principles and based on qualification and can be provided without posing Rights at Work in the countries merit, and in accordance with a substantial safety risk to the where it operates. applicable laws, does not permit employee or others. Employees discrimination on the basis of in the U.S. are provided a link The Company publishes its any characteristic, such as race or to an Accommodation Request Modern Slavery Statement gender, or any legally protected Form to initiate an interactive in accordance with the 2015 status. process to determine if an Modern Slavery Act, as part accommodation is required. of the UK’s efforts to prevent To the extent reasonably modern slavery in the businesses possible, IGT will accommodate Society’s heightened focus of large organizations and their employees with disabilities. In on the quality of the work supply chains. The statement the U.S., IGT adheres to the environment has sparked a rich discloses the steps IGT has guidelines of the 1990 Americans global dialogue and brought taken during the financial year to with Disabilities Act (ADA), much-needed attention to ensure that modern slavery is not as amended. Under the ADA, the problem of harassment taking place in any of its supply employers are required to enter in the workplace. IGT stands chains or parts of its business. a good-faith, interactive process firmly behind its commitment The full version of the Modern to assess an individual’s need to maintain an environment Slavery Statement is available at for a work accommodation. A where everyone is treated www.igt.com.
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in Austria, China, Finland, Italy, Portugal, Serbia, Spain, and Sweden are covered by collective agreements.
In locations with collective agreements, the notification period of significant changes that could substantially affect personnel is communicated to employees and their elected representatives Positive Employment Practices according to national laws. GRI: 103-3 Leaders at IGT are dedicated to In line with the United Nations’ maintaining an environment that Global Compact, IGT recognizes encourages open communication the value of using dialogue and and collaboration between negotiation to achieve positive employees at all levels, and outcomes in employment fostering a culture of positive practices. The Company abides employee relations. IGT respects an by non-discriminatory policies and employee’s right to associate freely procedures with respect to trade or seek the representation of unions. unions and union memberships and Where there are unions, IGT works their activities. IGT provides workers’ in a productive partnership with representatives with appropriate their representatives and members. services to assist in the development This message is reinforced through IGT’s Zero-Tolerance of effective collective agreements. various communication channels, Approach to Modern Slavery Consequently, IGT is involved in such as training, employee focus collective bargaining in different groups, and employee bulletin The Company demonstrates its countries and is committed to boards related to union information commitment to acting ethically and updates. and with integrity in all business accommodating specific local laws dealings and relationships by and regulations, providing union implementing and enforcing representatives with every tool Workplace Health and Safety effective systems and controls needed to perform their duties. to reduce the risk of Modern GRI: 103-3 Slavery and general violations of human rights in its businesses In some countries, collective IGT is committed to providing, and those of its suppliers. agreements regulating maintaining, and promoting a Starting with its supply chain, employment terms and conditions safe, healthy, and productive work IGT is committed to working follow a collective negotiation environment for all employees, toward the goal of eliminating between management and trade such breaches of human rights and ensuring compliance with all globally as part of its Corporate unions. Various locations have applicable environmental health Social Responsibility initiative. voted to become unionized within and safety regulations. The An Integrity Line, which is the United States, with a total of responsibilities for health and safety confidential and managed by 86 employees electing to do so are shared. The Safe and Healthy an independent third party, through two formal union contracts can be used anonymously to Work Environment policy covers report activities that may involve in the State of New York, and one topics such as workplace violence, unethical and/or unlawful contract still under negotiation in illegal drug and alcohol use, tobacco conducts. Las Vegas, Nevada. All employees use, fitness for duty, and what
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Health & Safety team, led by IGT’s To enhance employee safety Director of Environmental, Health and training opportunities, & Safety, engages IGT leadership leadership assigns key and regularly presents information individuals as regional safety on potential risks and injury trends, managers. upcoming projects and programs, actions should be taken if someone as well as initiatives to reduce risk IGT provides all personal needs to report a violation. In and prevent injuries. In addition, protective training related 2018, IGT released in the U.S. there is a number of site-level to the job tasks its Field a new sexual harassment policy safety committees, most of which Service employees perform. designed to set the expectations are at the facility level. and standards of behavior required For example, a Field Service of all U.S.-based IGT employees, Technician installing satellite The Global Solutions team promote best practices, and equipment is supplied with has a business unit-wide safety influence the Company’s culture. Fall Prevention gear, such as committee (GSSAFE) that a full-body harness, lanyards, publishes a weekly safety tip as well IGT also launched an eight-week and anchor points. Moreover, as a monthly newsletter alerting these employees completed Mindfulness Essentials program employees to common and in its Providence and West the IGT Fall Prevention training seasonal hazards on the job. This program. Greenwich offices in Rhode Island committee also assesses risks and designed to help employees work works to develop training tools to and live better. mitigate the potential for injury. IGT’s Field Services Safety Committee publishes a weekly All employees are responsible As an example of how the safety tip as well as a monthly for ensuring that all operations Company makes employees’ newsletter alerting field service are performed with the utmost safety a high priority, the Field employees to common and regard for the health and safety Service department maintains a seasonal hazards on the job. of all personnel involved. Indeed, safe work environment by: The tips and newsletter are employees are responsible for a posted on Yammer for all full commitment to all aspects of employees to read. 1) Providing annual training. the health and safety program, including compliance with all rules In 2018, IGT Field Service and regulations for continuously 2) Performing equipment Safety collaborated with practicing safety while performing inspections. corporate Environmental, their duties. Health and Safety enhancing 3) Performing job task the IGT Fall Prevention and Numerous IGT locations have joint assessments. Ladder Safety programs. management-worker health and Additionally, these teams safety committees. 4) Establishing safety leaders worked with the IGT training at each site, as well as at an team to deliver the IGT Sign The IGT Global Environmental, organizational leadership level. Installation program.
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HEALTH AND SAFETY Health and safety topics are considered matters of bargaining for IN COLLECTIVE inclusion in the Collective Bargaining BARGAINING Agreements that cover bargaining unit members. The health and safety AGREEMENTS of IGT’s employees is recognized as an organizational priority, and the Company is committed to ensuring all employees are provided the proper guidance and instruction in terms of promoting a safe work environment and complying with all regulatory requirements. In the U.S., members of unions adhere to the organization’s Safe and Healthy Health and Safety Work Environment policy. Topics Initiatives in Italy addressed within the policy include workplace violence, illegal drug or Prevention plays a key role in alcohol use, tobacco use, and fitness an environment committed for duty. to protecting the health and safety of workers. In addition, members of trade Every year, Lottomatica unions are provided best practices for safely handling Electronic provides all employees Gaming Machines on the following with medical examinations topics: for prevention. In 2018, a • Worker Personal Protective prevention campaign to fight Equipment (PPE). melanoma, organized with • Transportation and installation the Associazione Nazionale of equipment. Tumori (ANT) Foundation, • Equipment handling devices. reached 800 employees • Establishing safe work zones. who submitted to voluntary • Unloading, moving, installing, dermatological examinations. and removing equipment. In 2018, Lottomatica carried • Identification of safety and out an environmental warning labels. analysis of the workplace’s microclimatic comfort, and applied thermal-dimming films to the windows of the In the case of a workplace-related comply with all jurisdictional laws external façade of one of the two corporate buildings in injury or illness, the Company regarding reporting requirements, Rome. In 2019, Lottomatica is committed to providing and all applicable ones about will install semi-automatic appropriate medical attention to providing insurance to reimburse defibrillators in all offices and the employee. If the injury or illness employees for lost wages and provide training to appointed personnel for their use. is work-related, the Company will medical expenses.
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Engaging Our Employees Engagement matters because engaged people usually perform better, thus improving achievement. The anticipation of success fuels further engagement, and the loop continues. Engagement is linked to individual and team performance, customer satisfaction and loyalty, employee retention, quality of service, safety metrics, profitability, and market share growth. IGT works continuously to better understand how to improve the engagement of its employees. Among the highest-rated employee development, Measuring Engagement items on the survey, acting and provide constructive with integrity and working feedback. Compared to other Each year, IGT measures the level of in an ethical environment organizations, IGT’s people engagement reported by employees. are very important to IGT’s reported a greater trust and In 2018, the Company rebranded people, as 4 out of 5 believe respect for one another, with its annual engagement survey to that acting with integrity 83% saying they can depend MyVoice@IGT to emphasize the takes priority, and 92% on their team. From a diversity importance of giving employees believe the Company’s and inclusion standpoint, since a voice in terms of improving Code of Conduct was 2017, 81% of IGT colleagues their experience. An invitation to clearly communicated. continue to feel like they can participate was sent to all employees A solid portion (77%) be themselves at work, and and an overall 81% response rate was believe that direct managers inclusion perceptions have consistent with 2017’s results. model IGT values, support improved the most.
Engagement Index has improved (%)
81% 2018 75.5 17.5 6.0 OF EMPLOYEES RESPONDED 2017 67.1 26.9 6.8 TO THE SURVEY
Favorable Neutral Unfavorable
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To identify what drives Engaged answered all the other employees and subtitled in all engagement, all respondents items against how the remainder corporate languages (see “A were split into two groups: Highly responded, the survey investigated Translation Strategy to Foster Engaged and Remainder. The the biggest differences in an Inclusive Workplace,” on the Highly Engaged are the 55% of perceptions, thus identifying the following page). employees who agreed or strongly drivers of engagement. agreed with all five engagement The three engagement statements (“I would like to be IGT’s people communicated improvement commitment areas working at IGT one year from that they would like more clarity are: today;” “I enjoy working for this regarding IGT’s vision and where Company;” “I am proud to work they fit in with that, expecting • Celebrating strengths. here;” “My work gives me a sense better communication regarding of personal accomplishment;” and how changes will help IGT • Enhancing career development. “I recommend IGT as a great place further improve engagement. to work”). Career development continues • Clarifying IGT’s vision. to be an area of opportunity. The remainder makes up 36% of Consequently, they are more likely IGT has designed a People respondents who agreed with some to be engaged. Employees want Communication strategy with the but not all engagement index items, to know how they can grow in intent of becoming a storytelling and 9% who did not agree with any their roles and have future career organization, informing, inspiring, engagement index item. opportunities within IGT, expecting connecting, and educating promotion processes to be fair and employees in support of IGT’s Understanding the key differences transparent. mission, vision, goals, and values. between those who are engaged All employee communication and the remainder will provide The main drivers of engagement will be developed and funneled insight into what can be done to and overall engagement survey through a global, holistic, internal make IGT an even better place to results were communicated in communication team to raise work. In comparing how the Highly a video that was shared with all engagement levels by connecting employees to the mission and helping leaders use the power of communication to reach business Understanding Positive Divergence goals, build trust, and create loyalty.
9% IGT stories will be told daily, from and to all levels of the business, with the goal of creating a communication climate of openness, honesty, and transparency through the adoption of a more Agreed with all conversational, familiar tone Engagement Index items with employees. A two-way communication between Agreed with some employees and leaders will but not all... be facilitated, while educating Did not agreed with any employees about key business 36% 55% Engagement Index item drivers and the Company’s goals.
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A TRANSLATION Effective communication, accessible to increasingly inclusive workplace. STRATEGY TO FOSTER all employees, is an important piece of Communication targeted to all AN INCLUSIVE IGT’s inclusive culture and engagement employees is now offered into 10 WORKSPACE of employees. Part of supporting languages: Chinese, Czech, English, inclusion in IGT’s workforce means French, German, Italian, Polish, speaking to people in their native Serbian, Spanish (for Latin America), language as much as possible. IGT has and Turkish. Translated all-employee successfully piloted and implemented a communication includes global policies, new language strategy that expanded IGT’s Code of Conduct, CEO translations of the most critical all- announcements, the IGT engagement employee communication. While survey, and much more. This language English is the official working language strategy is an evolving process. As at IGT, many employees use a different different opportunities for translation primary language. The following are identified, such as more time- approach aims to accommodate sensitive communication, IGT will most employees and help build an explore ways in which to expand.
IGT intends to continue increasing new and current employees’ its communication efforts by skills, making sure they hosting more town halls and align with the Company’s maintaining the translation strategy. organizational structure and IGT also confirms its commitment overall goals. The process to compliance by promoting also aims to retain employees an ethical work environment, by designing, implementing, introducing more DIGs, and and driving programs that continuing to provide career enhance the employee development opportunities. Details experience. about these initiatives follow in the next section. Through Talent Management, IGT provides employees with opportunities and resources Professional Development GRI: 103-3 to drive their performance Development at IGT is a and allow them to own their partnership between the employee, development. Starting with managers, and the Company Goal Setting, followed by itself, wherein employees own and Individual Development drive their development, managers Planning and discussions, and support and encourage it, and IGT Succession Planning as well provides the tools and resources. as continuous feedback in Through the latest engagement Performance Reviews, Talent surveys, employees have clearly Management helps drive expressed their expectation to see performance. Additionally, more opportunities for growth and Talent Management provides development. programs such as onboarding, engagement, career pathing, IGT Talent Management is the and global mentoring and strategic process of developing coaching.
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EMPLOYEE AND MANAGER DEVELOPMENT
In addition to the existing suite of activities, audio downloads for mobile development resources, IGT has made devices, video insights, and other a substantial investment in employees downloadable tools. All curricula are and managers by introducing Harvard based on Harvard University research ManageMentor and Manager and teaching. Harvard ManageMentor is Essentials. These programs align with the gold standard in digital learning, with the 10% of IGT’s 70/20/10 learning and more than two million global users. development model, which captures Manager Essentials is a four-day the optimal types of learning in three classroom experience focused on clusters — Experiential, Social, and Formal the role of the manager, which is to Education — and explains the relationship attract, develop, and retain talent; drive to one another. execution; and foster collaboration. All Harvard ManageMentor is a digital 1,200 IGT global people managers, learning solution available to all including supervisors, will participate in employees globally 24/7. It is a this program over the next three years. comprehensive online resource All 400 directors and senior directors will containing 44 topics on how to manage have attended a condensed, one-day oneself, others, and the business, aligned version of this program by mid-2019 to with IGT’s core competencies. These ensure managers and employees are modules contain interactive learning successful and supported.
IGT is reviewing its existing simulations) that are available to all leadership programs to identify employees on-demand, 24/7. the best direction for future development. Developing the IGT-specific content is available, Leader in You, known as DTL, along with general skills development is a classroom experience for content, including leadership, Research on Employees in Italy over 50 emerging leaders. In 2018, IGT management, communications/ expanded the global footprint interpersonal skills, business Lottomatica in Italy of this program to increase the processes/systems, safety, and conducted a research study opportunity for participation and technical skills. Management and called “Ageless Talents,” professional development, language which was endorsed by development. Global Leadership Valore D. Development, known as GLD, has and technical programming are been on hold to better understand also available, along with options to The study, designed with the development needs of the develop custom courses as required the collaboration of the Company’s people, with a new by the business. Catholic University of Milan program ready for 2019 for director- on a sample of 30 Italian companies, explored the level and senior leadership teams. Additionally, IGT’s tuition potential of women over 50 reimbursement program in the to improve their employee IGT strongly encourages U.S. allows employees to receive experience. In 2018, the employee education. Annually, expense reimbursement for courses study covered the male IGT leads various processes completed at accredited higher population as well. The goal of the research was to to fund and develop learning educational institutions. In Italy, collect the most complete initiatives that align with business Lottomatica has drafted a training data available on over-50 objectives and core competencies. catalog to support the development employees from a gender Learning formats include of global skills aligned with the and generational diversity classroom, virtual classroom, and Company’s values. The catalog point of view, in order to identify improvement a robust catalog of digital learning includes sessions scaled according measures. options (self-paced, videos, and to role (supervisor or contributor).
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Training Hours No. of Unique Total Average Number Training Group Participants Training Hours of Training Hours
Executives 594 4,657 7.5 Middle Management 1,446 19,918 13.35 Office Staff 6,593 44,607 4.65 Production Workers 2,516 24,476 64.04 Total 11,149 93,659 7.74
Evaluating Performance 1) Definition and sharing of objectives with the manager. Performance Management is a 2) Discussion of the Individual process necessary for the strategic Development Plan between management of resources. It manager and employee. allows the definition of corporate priorities and objectives, and 3) Feedback on the progress is a guide for the continuous toward objectives and improvement of managerial and development actions. professional results and skills. 4) Evaluation of year-end performance. The process is divided into four phases: The last phase also includes:
WHO WHAT All employees Complete self-assessment for both work goals and Management by In 2018, IGT Objectives (MBO) delivered more Managers Complete assessment than 92,000 P&T Partners/Managers hours of training Calibration to employees at Managers/Employees Complete 1:1 performance all levels of the meetings and acknowledgement in organization. the system
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THE NINE BOXES GRID Matching the performance assessment and the potential assessment, the resources are ranked in the corresponding boxes.
EXCEPTIONAL CORE PERFORMERS STRATEGIC FEW ACHIEVEMENT 4 - 5 HIGH HIGH HIGH PROFESSIONAL PERFORMER POTENTIAL
SUCCESSFUL TRUSTED CONSISTENT EMERGING ACHIEVEMENT 3 PROFESSIONAL PERFORMER LEADER PERFORMANCE LOW INCONSISTENT POTENTIAL PROFESSIONAL PERFORMER PERFORMER
UNSATISFACTORY ACHIEVEMENT 1 - 2 AT GROWTH HIGH POTENTIAL
In 2018, 99% of employees Health Educational monthly globally received a regular seminars on various health topics, performance and career and Online Wellness Programs. development review, while 24% of them were managed by MBO The eligibility of workers to (Management by Objectives). leave greatly varies according to each jurisdiction, under which Rewards and Benefits employees may be entitled to take paid or unpaid job-protected IGT takes pride in fostering a leave for specified family and family-friendly culture and a medical reasons, with continuation healthy work-life balance. In all of group health insurance countries where IGT operates, coverage under the same terms eligible employees are provided and conditions as if the employee with time off for the employee’s had not taken it. For instance, serious health condition and/or to U.S. employees may be entitled attend to family responsibilities, to leave under the Federal or allowing, where applicable, part- State Family and Medical Leave time work and teleworking. IGT Act (FMLA). Employees who implements various wellness are not entitled to such leave initiatives in the U.S., such as the may still be eligible for medical Employee Assistance Program or personal reasons. The FMLA on work-life balance, the Onsite entitles eligible employees to a
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access voluntary health insurance by paying a health insurance premium.
IGT carries out several Health & Wellness initiatives at the local level to support employees in improving their lifestyle and general health, as well as managing situations related to the working environment or private life. Because benefits providers and statutory requirements number of welfare measures, such differ across the globe, resource as 12 work-weeks in a 12-month availability may differ, too, period to care for a newborn depending on the country and child or a parent with serious healthcare providers. health conditions, extended to 26 weeks if the eligible employee is a IGT provides employees with military service member’s spouse, outplacement assistance through son, daughter, parent, or next an external supplier to assist of kin (military caregiver leave). employees in obtaining new Outside the U.S., IGT adheres employment due to workforce to all statutory requirements reductions and restructuring for employers with regard to efforts. They are also provided maternity, paternity, and family with severance payments as a time. financial bridge while seeking new employment. These In 2018, IGT released a new outplacement services provide set of Global Compensation web-based programs that offer Salary Increase Guidelines, with on-call coaching support, live the purpose of ensuring that coach-led webinars, and self- compensation programs are directed e-learning. It also provides competitive when compared to opportunities to keep the job relevant external standards. This search productive with the creation supports the Company’s Pay for of an effective online presence Performance Philosophy, and and social media profile to reach ensures compliance with local recruiters and hiring managers. labor laws and statutes. Due to the variations in local laws and regulations, the benefits offered to employees vary accordingly. In Italy, for instance, the Life Insurance and Accident benefits are offered to all employees with employment terms. Following an agreement with the Italian labor unions, employees can choose to
102 IGT - SUSTAINABILITY REPORT 2018 Growing with Our Supply Chain
photo: Roxana Di Franco Technical Training - LAC 103Buenos Aires, Argentina Growing with Our Supply Chain
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moral, legal, and ethical standards Growing with Our Supply Chain expected of suppliers when doing GRI: 102-9; 103-3; 204-1 business with the Company. In 2018, IGT’s supply chain consisted of more than 11,000 Selecting Our Vendors vendors worldwide, which accounts for about USD 2.23 billion in IGT works with suppliers that annual spending in both direct ensure high-quality goods and and indirect supply categories. services and meet high economic, “Indirect” supplies include ethical, and socio-environmental technology, computers, hardware, standards according to five software, networking equipment, informal, strategic requirements:
communications services, and • Capability standard maintenance, repair, and operations (MRO) commodities • Competency that are purchased to support • Compliance (quality) the Company’s customer-facing deliveries, as well as its internal • Value infrastructure. “Direct” supplies • Support support the manufacturing of IGT products that are delivered as part IGT uses suppliers selected and of IGT’s customer-facing solutions. evaluated based on a scorecard, Geographical Distribution with a numerical score that of Spending * IGT purchases most of the parts, considers the quality of the goods components, and subassemblies and services supplied, the capacity necessary for manufacturing to adapt to the delivery deadlines its terminals and slot machines requested, costs, and financial from outside sources. It also stability of the supplier. 21% ITALY outsources all the manufacturing and assembly of certain lottery All suppliers of goods and services terminals to a single supplier; are required by law to receive other products have portions specific certifications, making them outsourced to multiple qualified subject to periodic inspections suppliers. Local suppliers are and visits. Obtaining International 57% USA based in the U.S. and Italy, where Organization for Standardization the majority of employees are (ISO) quality certifications is a situated and the greater portion of priority for all IGT suppliers. revenues are generated. IGT requires the suppliers to certify Sound business relations with compliance with the Declaration of 22% REST OF suppliers play a key role in IGT’s the European Union on restrictions THE WORLD ability to support customers’ regarding the use of hazardous requirements, as they are essential substances (RoHS, or Restriction to maintaining a dependable, of Hazardous Substances). competent source of supply for the uninterrupted flow of quality goods IGT also requests suppliers that and services. The Supplier Code of operate in countries characterized * Distribution of spending on suppliers Conduct serves as a guide to the by weak legislation regarding
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Qualified Minority ticket printing businesses. • Disabled veterans thus allowing lotteries Business Enterprises To be identified as a Typically, in U.S. lottery to contribute to the Qualified Minority Business competitive procurements, generation and distribution In the U.S., IGT works Enterprise, a public agency the Request for Proposal of economic value. In with top-quality suppliers, must certify that the (RFP) includes an another approach, the RFP including suppliers supplier is owned (at least obligation to allocate a awards additional points to classified as Qualified 51%) by one or more of the share (approximately 10%, a proposal if a share of the Minority Business following: usually) of the total budget total budget is allocated Enterprises, especially in • Minority group members to Qualified Minority toQualified Minority the lottery and instant • Women or Business Enterprises, Business Enterprises. the protection of human rights of strategic suppliers, and first article policy. The use of local, small, and/or to acknowledge receipt of IGT’s submissions. Furthermore, IGT has disadvantaged businesses, including Supplier Code of Conduct, which undertaken an initiative to standardize minority and women-owned requires suppliers to share the ethical payment terms across its supply base, companies, is considered when commitments listed within the Code negotiating existing, non-standard making sourcing decisions. of Conduct, with particular reference terms, and tracking suppliers featuring to the practices of environmental unique payment terms. Environmental Assessment protection, proper management of of Our Suppliers personnel (rights of association and By working with IGT’s quality collective representation, ban on engineering department, IGT’s IGT designs and manufactures using child labor, and forced labor). procurement team monitors products that are environmentally suppliers’ quality and metrics. compliant with the jurisdictions The suppliers that do not fall within By using advanced inspection where the Company operates. the legislation of western nations — equipment, onsite audit reviews, and IGT’s environmental compliance specifically so-called “developing timely communication techniques, policy encompasses processes, countries” — are subject to screening quality engineering ensures that including design, source of of their compliance with human rights suppliers have the data required to procurement, warehousing, based on the principles expressed manufacture raw material that meets manufacturing, reconditioning, in the United Nations International IGT’s needs at the point of use. and delivery. Therefore, IGT Bill of Rights. The major Original This helps IGT meet its customers’ has developed procedures for Equipment Manufacturer (OEM) expectations for quality, cost, and engineering materials, quality suppliers are visited periodically to delivery. engineering, logistics, customer check their compliance with rules service, and suppliers to ensure that regarding social and environmental IGT expects suppliers to effectively its products meet environmental responsibility, in addition to quality, assess, select, develop, and compliance requirements. The costs, capitalization, and other monitor their material sources and IGT process ensures reasonable financial aspects. subcontractors, thus complying with measures are taken to determine IGT’s Environmental Compliance environmental compliance of IGT’s procurement departments Policy, as well as its regulatory, existing products, convert existing adhere to their respective ISO jurisdictional, and environmental products to meet environmental documents that outline the supplier policies and regulations. IGT retains compliance requirements, and ensure engagement process, including a the right to use alternate suppliers reasonable precautions concerning supplier questionnaire, commodity if an existing supplier is unwilling environmental compliance on an team responsibilities, classification or unable to comply with IGT’s ongoing basis.
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operations, mitigate the risk of such exposure in its supply chain, and undertake proper preventive actions to ensure human rights are properly protected, both now and In line with its core value of being in the future. responsible, IGT strives to carry out In 2018, IGT mapped all businesses’ and suppliers’ steps to protect human rights. activities by industry, sector, and geographical area of operation to identify and prioritize those areas that could put IGT’s business at The supplier’s management discussed on the spot with the risk. As a result, IGT determined approach to environmental supplier for correction. Exception that 9% of the analyzed suppliers assessment is where IGT directs conditions are noted in the supplier had a high risk of exposure to the material supplier’s management visit report and followed up during modern slavery. team to conduct an informal the next visit. inspection of conditions while During the 2018 financial year, onsite. Environmental assessments In 2018, there was no formal IGT collected questionnaires are more intense for suppliers environmental policy or contractual from suppliers that were in high-risk, loosely regulated obligation for compliance with the deemed high-risk during the jurisdictions (like China and suppliers. Any environmental audit 2017 mapping exercise. More Mexico) than in low-risk, highly was done informally and in good than 90% responded. The results regulated areas (like the U.S., faith with the suppliers. demonstrated that IGT’s suppliers Canada, and the European Union). are aware of issues surrounding Respecting Human Rights human-rights-related topics. When visiting suppliers in in the Supply Chain GRI: 103-3 high-risk areas, members of In 2018, IGT’s Code of Conduct the supply management team In line with its core value of being was updated to include the conduct informal assessments responsible, IGT strives to carry Company’s zero-tolerance of environmental conditions, out steps to protect human rights, approach to modern slavery and checking if appropriate licensing both in its business and along its commitment to implementing from the local government is in supply chain. IGT published its first and enforcing effective systems place. Special attention is paid to Modern Slavery Act Statement and controls to reduce the risk of waste management from industrial in June 2017 and, since then, has contracting with suppliers who processes that produce hazardous increased its efforts by raising practice modern slavery. solid waste, like the chroming, awareness among suppliers. plating, and painting processes. As one of its corporate social Because of the questionnaires’ IGT adheres to preventive responsibility (CSR) initiatives, analysis in 2018, IGT published maintenance (PM) procedures and IGT is working toward eliminating its Supplier Code of Conduct schedules for related equipment to the risks of human rights violations in March 2019. The Supplier confirm that PM schedules support related to its global operations. Code of Conduct includes hazardous liquid containment requirements related to business integrity. Regarding the supply chain, ethics and regulatory compliance, IGT established a due-diligence human rights and labor practices, Observable exceptions to the system to identify the risks related environmental regulations and standard are communicated and to the supply chain structure and protections, responsible mineral
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international law.
Since certain minerals are required to manufacture land- based machine products (including, but not limited to, slot machines, video poker machines, video lottery terminals, electronic Conflict Minerals or video bingo machines, lottery Diligence Program and terminals, instant ticket vending Due Diligence Process machines, and ticket scanners), To identify and trace we must diligently eliminate conflict minerals in IGT’s supply chain, sourcing, health and safety, and conflict minerals in this process. IGT has implemented policies IGT established a due- confidential and proprietary diligence program based information. and procedures, including a on procedures and tools conflict minerals report, to provided by the: • OECD IGT continues to strengthen its ensure the minerals IGT and its suppliers use are DRC-conflict- • Electronic Industry approach to managing the risk of Citizenship Coalition modern slavery within its business, free and that IGT complies with (EICC) and respond to changing risks. the SEC’s rules. • Global e-Sustainability Initiative (GeSI) IGT developed its policies, Conflict Minerals The Responsible Minerals procedures, and processes Initiative (RMI), an entity following the second edition of founded by members of the IGT complies with the final rule the Organization for Economic EICC and GeSi, provides a on conflict minerals adopted by Cooperation and Development’s Conflict Minerals Reporting the U.S. Securities and Exchange Template. The template (OECD) Due Diligence standardizes the way in Commission (SEC). This rule Guidance for Responsible which country-of-origin, requires the implementation Supply Chains of Minerals smelter, and refinery of reporting and disclosing from Conflict-Affected and information is reported, procedures regarding conflict and facilitates the transfer High-Risk Areas, and its related of this information through minerals. Conflict minerals supplements. the supply chain. IGT - which include tantalum, requests that in-scope tin, tungsten, and gold - are suppliers contributing to defined as those originating in IGT’s procedures include: 95% of IGT’s expenditure and whose products contain the Democratic Republic of • Defining suppliers that are conflict minerals use the Congo (DRC) or adjoining affected by conflict minerals template to convey the countries, and any other mineral required information to the Company. or derivative thereof determined • Identifying risks IGT also requests that by the U.S. Secretary of State to its suppliers 1) adopt a • Communicating supplier finance conflict in the DRC or conflict mineral policy with adjoining countries and therefore responsibilities the RMI’s Conflict-Free enabling armed groups to Smelter Program (CFSP) • Establishing and using a cross- assessment protocols, commit, contribute to, or benefit functional team to complete all and 2) establish their own from serious violations of human parts of the reporting process due-diligence program to rights, violations of international ensure their own suppliers are CFSP-compliant and humanitarian law, or violations • Collecting necessary provide a detailed report to amounting to crimes under information IGT on that effort.
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• Maintaining records of activity, responses, and conclusions.
IGT established a cross-functional team to comply with the SEC’s rule. The team’s duties are to:
• Identify which suppliers provide products to IGT containing Reasonable Country of conflict minerals. Origin Inquiry (RCOI)
The Responsible Minerals • Distribute a conflict minerals Initiative’s (RMI’s) Conflict- letter with an environmental Free Smelter Program policy and the RMI’s Conflict list in the current RMI Reporting (CFSP) audits smelters and refineries to identify Mineral Reporting Template to Template those that are Democratic all suppliers determined to be in Republic of Congo-conflict scope • Report IGT’s due-diligence free. As part of the RCOI process and compliance process, IGT adopted the RMI approach and • Track which suppliers have obligations to senior traced the origin of conflict responded, and retain the management annually. minerals by identifying completed RMI Reporting smelters, refineries or Template and policies To identify relevant suppliers recyclers, and scrap supplier subject to due diligence, IGT sources. IGT used the RMI and its CFSP to trace • Review the responses and reviewed the 389 suppliers where the conflict minerals back conduct further diligence if more than 95% of the Company’s to the mine of origin. warranted production occurs in 2018. From Because some suppliers the list of 389, IGT removed source material from a number of sub-suppliers, • Maintain smelter information suppliers that do not sell the IGT has determined that from suppliers, and check Company conflict minerals. If there it may take time for some smelter identification against the was uncertainty, the supplier was suppliers to verify the origin Compliant Smelter & Refiners considered in scope. As a result, of conflict minerals (directly or indirectly) as required by list (at www.conflictfreesourcing. IGT identified 53 suppliers subject the RCOI. org) and the Smelter Reference to further due diligence.
109 110 IGT - SUSTAINABILITY REPORT 2018 Supporting Our Communities
photo: Stefano Sberna Betting Operations & Services Rome, Italy
111 Supporting Our Communities
112 IGT - SUSTAINABILITY REPORT 2018 Supporting Our Communities GRI: 103-3
IGT strives to enrich and strengthen the communities where the Company operates. It does this through a variety of programs, sponsorships, and donations. The Company engages in a broad spectrum of community involvement and employee engagement initiatives, providing educational and economic opportunities for people in varying socio-economic environments around the globe.
Being Part of Our Communities
Charitable giving and community POUND-FOR-POUND GLOBAL engagement are built into IGT’s FOOD DRIVE CHALLENGE culture. In November 2018, IGT’s Community Ambassadors held The first initiative inspired by IGT’s Community Ambassadors was the their inaugural meeting. This group Pound-for-Pound Global Food consists of nearly 100 employees Drive Challenge over the 2018 from around the world who share holiday season. Fifteen sites from a passion for their communities six continents entered the friendly competition to see which could and good causes. The group collect the greatest amount of non- has three primary goals: improve perishable food items in support of communication throughout the local food banks. The challenge ran Company about community- from November 19 to December 7, with IGT Virginia finishing first. focused activities around the world; The 10-employee team collected ensure community engagement 563 pounds of food for Feed More activities are visible and well- in Richmond, Virginia. IGT Oregon represented; and provide locations finished second and IGT Sacramento finished in third. Overall, more than around the world with information 7,000 pounds of food were collected about our Employee Giving and donated to local food banks programs. around the world.
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VOLUNTEER AT PROJECT MUSCULAR DYSTROPHY ASSOCIATION OPEN HAND IN SAN FRANCISCO EGG HARBOR FAMILY HOLIDAY PARTY
In May 2018, IGT PlayDigital team members in San Francisco In October 2018, IGT’s Egg Harbor, New Jersey office volunteered at Project Open Hand, where they helped to prepare supported the Muscular Dystrophy Association by meals for the sick and elderly members of the San Francisco hosting the charity’s Halloween party, providing dinner community. Approximately 2,500 meals and 200 bags of groceries and crafts for about 100 guests. are prepared daily by Project Open Hand to help sustain those battling illness, isolation, or the health challenges of aging.
U.K. COOKS UP MANY WAYS TO HELP OTHERS
What started as an ironic fashion statement has transitioned into a mainstream event, as millions now don not-so-pretty holiday apparel for charity. On December 12, 2018, employees in IGT’s Finsbury office in London helped the world be “better with a sweater” and raised funds for charity by participating in Christmas Jumper Day, an annual campaign in the U.K. organized by the charity Save the Children. Employees donated £2 to participate. The Finsbury office also hosted a cake sale to benefit Macmillan Cancer Support, one of Britain’s largest charities, providing health care information and financial support to people affected by cancer.
A MOVING GIFT FOR CHILDREN IN FINLAND BELGRADE GIVES THE GIFT OF WARMTH
IGT Finland employees ran in the Enterprise Marathon of IGT Belgrade employees collected winter clothes Helsinki in May 2018, joining nearly 350 companies and and other necessities in December 2018 on behalf 4,000 participants. Proceeds from the run directly support of the Center for Independent Living Serbia. The the physical activity of elementary school children through organization has spent the last 22 years advocating on the Children’s Movement (Lasten Liike). behalf of adults with disabilities.
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MERCER COUNTY PARK AND JOEY’S LITTLE ANGELS TOY DRIVE
In November 30, 2018, Northstar New Jersey, IGT, and New Jersey Lottery employees volunteered to clean up the local Mercer County Park for a full day, and collected new toys for sick children spending the holidays in the hospital. The toys were given to the Joey’s Little Angels organization for distribution to families in need.
BRINGING CHEER TO 365 KIDS HOME IN BEIJING
This year marks the fifth year that employees at the China Research Development Center (CRDC) in Beijing have supported 365 Kids Home. Sponsored by the China Social Welfare Foundation, the home serves orphaned children who have developmental disabilities. The need is great at the home, and CRDC staff spent two days shopping to support the kids in 2018. The final tally was a cash donation, as well as 32 sets of brand-new bedsheets and quilt covers. This volunteer event takes place in August and December each year. BASSA sullo SP
CLOSING THE GAP – COSTA RICA
In May 2018, Costa Rica employees strengthened IGT’s Un Click para Educar program by retraining SOS Village caregivers in Santa Ana with courses in digital literacy and programming. These resources will enable caregivers to further encourage children and young adults to immerse themselves in computer science. Employees also volunteered for Lifting Hands, a foundation in Escazú that aims to create a safe place for children to learn and play with the goal of raising academic performance. Employees donated painting supplies and time toward the renovation of two classrooms..
ANTILLES EMPLOYEES COMMIT TO BEAUTY MEANINGFUL CHRISTMAS IN CHILE
The Caribbean Lottery team, based in Antigua, IGT Chile organized a Christmas party for a local completed a beautification project at the Lottery’s kindergarten class, where they welcomed children from office in Saint John on September 15. It was their low-income families. Employees had breakfast with the contribution toward the Clean up the World 2018 students and organized contests and games. Employees campaign. The Barbados Lottery team tackled a who were unable to attend the event donated gifts, section of Browne’s Beach in Bridgetown as part of an which were given to the children by Santa Claus. island-wide clean-up campaign. Organized by Future Centre Trust, a non-governmental organization, several private sector groups, schools, and individuals joined forces in the removal of the large amounts of garbage littered across Barbados.
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EMPLOYEE-DRIVEN PROGRAMS $
MATCHING GIFTS DOLLARS FOR DOERS DAY OFF FOR VOLUNTEERISM
IGT encourages its employees to be actively engaged with organizations that align with the Company’s overall community support endeavors. IGT’s Employee Engagement programs reflect the Company’s values, and provide employees the opportunity to give back to their local communities. The Matching Gifts, Day Off for Volunteerism, and Dollars for Doers programs embody the Company’s commitment to social programs that positively impact our global communities, as well as critical areas of daily life:
• The Employee Matching Gifts Program is designed to honor the diversity of our employees’ charitable giving by supporting a broad spectrum of non-profit, charitable organizations. The minimum gift eligible for matching is US$25, with a maximum of US$100 per calendar year.
• Employees with exceptional community service may apply for grants from the IGT Dollars for Doers Program. When an employee volunteers 25 hours or more during the year to a charitable organization, IGT will provide a Dollars for Doers grant for US$250 to that organization.
• IGT recognizes the value of giving back and supporting the communities where employees live and work. The purpose of the global IGT Day Off for Volunteerism is to allow employees to share in that effort by supporting and recognizing employee volunteer activities that serve our communities. The program provides employees one paid workday off per year.
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#IGTcares GLOBAL GIVING WEEK - A DAY FOR DOING
“IGT Global Giving Week – A Day for Doing” was created in 2018 as a global initiative for employees to volunteer and give back to their local communities. Global Giving Week is a week-long initiative where employees are encouraged to take a paid day off to volunteer for a charitable, non-profit, tax-exempt, and/or registered charity or public service organization of their choosing in their local community. In 2018, more than 600 employees took part globally, volunteering over 4,100 hours. The non-profit/registered charity that had the largest IGT volunteer team received a monetary donation (USD 500) following the volunteer week. The largest volunteer team during the 2018 Global Giving Week was located in New Jersey. Twenty-eight employees volunteered for Mercer County Parks System in New Jersey to help clean up litter on the playground, in picnic areas, and all around Mercer Lake.
1) GUANAPO, TRINIDAD & TOBAGO 2) SAN FRANCISCO, CA, U.S. 3) PROVIDENCE, RI, U.S.
4) RENO, NV, U.S. 5) ST. MICHAEL, BARBADOS 6) JEFFERSON CITY, MO, U.S.
7) AUSTIN, TX, U.S. 8) LAKELAND, FL, U.S. 9) TRENTON, NJ, U.S.
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10) MONCTON, CANADA 11) COON RAPIDS, MN, U.S.
12) BEIJING, CHINA 13) PRAGUE, CZECH REPUBLIC 14) ROME, ITALY
1) IGT Trinidad & Tobago volunteered its time at the Mamisa Centre in East Trinidad. Members were involved in a variety of tasks including meal prep and cooking, gardening and uprooting weeds, and singing songs with the residents and students. 2) IGT San Francisco prepared and handed out 150 peanut butter and jelly sandwiches around the streets of SF to help fight hunger. 3) The P&T Providence team partnered with Woonasquatucket River Watershed Council for a park beautification volunteer project. The team helped to stain fences and swing sets, paint picnic tables, and pick up litter around the park. 4) IGT Reno Finance at Keep Truckee Meadows Beautiful park cleanup. 5) IGT Barbados gave donations and volunteered services at The Learning Centre, which provides educational needs to 70 children with learning and physical challenges. 6) Employees in Jefferson City, Missouri organized a food and donation drive for the Food Bank of Central and Northeast Missouri. 7) Austin Technology Center (ATC) employees at Warehouse Distribution organizing food at the Central Texas Food Bank. 8) Members of the Marketing team from Lakeland spent their day volunteering at Volunteers In Service to the Elderly (VISTE). They helped make birthday cards and decorate and deliver cakes to two 91-year-olds on their birthday! 9) NorthStar New Jersey members spent their day volunteering at Mercer County Park. The team helped to clean up garbage at the playground, picnic areas, and all around the lake. 10) Members of IGT’s Corporate Communications team volunteered at the Multicultural Association of Greater Moncton and Area (MAGMA) in Canada. They spent their time with 14 newcomer and refugee preschoolers, and assisterd a class of adult English Second Language learners. 11) IGT Minnesota volunteered at Feed My Starving Children. 12) Beijing employees assisted Ren-A-Eco-Protection Program Professionalists by picking up trash from open areas in the woods and on hiking pathways. 13) The Prague Giving Unit spent their day volunteering at a dog shelter. In the morning, some members built a bio compost heap, while the rest helped prepare meals. The afternoon was spent playing with the animals. 14) Lottomatica employees volunteered at Villaggio dell’Ospitalità “Un Sorriso Una Mano Tesa”, which offers support and hospitality to families with children who are in a situation of fragility and discomfort.
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• The requesting organization must be a verifiable, charitable, non-profit, tax-exempt, and/ or registered charity or public service organization, (501c3, non-governmental organization or NGO, etc.) in at least one of the countries where the Company operates.
• Organizations seeking a charitable donation or sponsorship must comply with all applicable laws, including Investing in Projects jurisdictional laws regulating for Our Communities charitable donations and sponsorships. IGT supports charitable giving and community engagement in the • Applicants must be a verifiable, areas of education, social programs, charitable, non-profit, tax- and cultural initiatives. This exempt, and/or registered charity support is driven by contributions or public service organization, to non-profit organizations and (501c3, NGO, etc.) and registered charities, as well as supporting documentation must employee engagement programs. be included in the application. • In general, IGT does not Community projects supported support capital campaigns. through global charitable giving • All sponsorships and charitable program are reviewed and approved contributions are based on The SIC meets quarterly, by the Social Impact Committee funding availability. at a minimum, to evaluate (SIC). progress toward meeting the • Requests from organizations Company’s philanthropic IGT created its SIC to manage that discriminate on the basis goals, as well as ensuring the complexity of planning and of age, sex, gender identity consistency and compliance carrying out charitable initiatives or expression, race, religion or with corporate objectives. involving people and communities belief, ancestry, national origin, IGT’s SIC Guidelines ensure from countries and regions across citizenship, sexual orientation, that all approved charitable the world. The SIC represents the marital status, pregnancy or requests are aligned with our collection point for all community parenthood, military or veteran overall CSR strategy. The SIC projects and programs that may be status, medical condition comprises senior leaders from supported by IGT, with applications or disability, or other legally different IGT departments submitted using an online portal via protected status with respect and regions who ensure the IGT.com and compiled for quarterly to employment, volunteer appropriate governance of SIC review and approval. participation, or the provision of the committee in terms of services will not be considered. evaluating submitted projects Requests are evaluated based on and guaranteeing transparency a set of criteria including, but not • IGT does not support pageants and accountability to limited to, the following: or contests. applicants.
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ALL HANDS AND HEARTS - SMART RESPONSE
Throughout 2018, natural disasters brought widespread destruction to the United States and abroad. All Hands and Hearts - Smart Response has a mission to efficiently and effectively address the immediate and long-term needs of communities affected by natural disasters. In 2018, All Hands and Hearts operated 23 programs in nine countries, helping 21,757 people. They repaired or rebuilt 20 schools, helping 3,265 children return to environments that are safe and conducive to learning. They mobilized 7,869 volunteers from 116 nationalities, contributing 96,710 volunteer days. All Hands and Hearts puts its smart response strategy into action by engaging volunteers, partners, and local community members to determine the greatest needs and most direct impact to help families recover faster. IGT proudly contributed to the relief efforts with volunteers and a monetary donation.
HABITAT FOR HUMANITY IGT has supported various chapters of Habitat for Humanity, a global organization committed to making decent shelter a matter of social TRINIDAD AND TOBAGO conscience and national action. In 2018, the Trinidad and Tobago team lived up to the charity’s mantra, “A hand up, not a handout,” by supporting those affected by the October 2018 floods in Trinidad and Tobago.
ARTOWN - RENO, NEVADA
IGT continues to support Artown, a 31-day multi-disciplinary arts and culture festival that reaches an estimated 300,000 attendees. Artown has been inspiring the community since 1996 and continues to showcase the City of Reno as the center stage for bringing vibrant cultural experiences to the community. Artown presented more than 500 events during the month, ranging from music, dance, and theater to hands-on art projects. By programming numerous events at fun and different art spaces, Artown connected the community by bringing the arts directly to the people and encouraging them to visit some of the unique and beautiful spaces in the area. The annual festival has evolved to become a vital contributor to the region’s economy and quality of life.
ROOTS OF DEVELOPMENT – Roots of Development’s mission is to support and promote a community- driven approach to development by strengthening local capacity to improve HAITI the quality of life in marginalized communities.
With IGT’s support, the organization greatly expanded its programming on the island of La Gonâve, Haiti in 2018, bringing the leaders of all counties together to build a network with the drive and skill to improve quality of life.
In March, the organization carried out a series of workshops to train leaders on subjects such as budgeting, leadership development, strengthening value chains, and organizing local resources. Roots of Development will continue to develop this network of leaders on the island.
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AMERICAN HEART For the past 15 years, IGT has been a supporter of Go Red for ASSOCIATION Women chapters in Nevada and other states throughout the U.S. The Company’s direct support of the Reno Chapter has helped make RENO, NEVADA a dramatic impact on the lives of women in the Reno community. The organiztion’s belief that with the right information, education, and care, heart disease in women can be treated, prevented, and even terminated. With the help of supporters like IGT, more than 627,000 women throughout the United States have been saved from heart disease and 330 fewer are dying each day. IGT is also a great supporter of the Heart Walk, which brings the community and businesses together to promote heart healthy living.
HASBRO CHILDREN’S HOSPITAL MAKE A WISH PROVIDENCE, RHODE ISLAND ITALY
Hasbro Children’s Hospital, a division of Rhode Island Hospital, In Italy, the Company supports Make-A-Wish Italia Onlus, a non- is one of IGT’s longstanding community partners. As the region’s profit organization that grants wishes to children from 3 to 17 who premiere provider of pediatric clinical care, the hospital offers are affected by life-threatening medical conditions. a broad spectrum of both routine care and specialty programs For a child suffering from serious illness, these wishes bring joy not available elsewhere. Hasbro Children’s has the only pediatric and the strength to fight, while helping the child and their family emergency department, Level 1 Trauma Center, pediatric critical find hope. care teams, and 24-hour ambulance in the region. The approach to pediatric medicine makes parents an essential part of the care team. Proceeds are used to establish and grow programs throughout the hospital.
SACRAMENTO IGT proudly supported The Sacramento Children’s Home as the charity CHILDREN’S HOME celebrated 150 years of service to the most vulnerable children and families in the California community. The Sacramento Children’s Home offers a CALIFORNIA comprehensive spectrum of prevention, early intervention, and mental health treatment programs to strengthen families and stop the generational cycle of child abuse and neglect. From educating parents of infants and toddlers, to teaching independent living skills to young adults, the organization addresses the widest range of needs of any child and family service organization in the county.
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After School Advantage and public schools with digital workforce development skills Program in Support learning centers, addressing in young people. IGT believes of the United Nations’ the increased digital learning this STEAM focus will enhance Sustainable Development needs of today’s young global competitiveness Goals people. Each digital learning and better serve the future center is unique in terms of its employment needs of The After School design and is specific to each communities. Advantage (ASA) program organization’s needs. IGT is The ASA program has been is IGT’s flagship community refreshing the program to implemented throughout initiative, devoted to improve technical literacy and to North America, South providing young people align with the UN’s Sustainable America, Latin America, and with access to technology Development Goals (SDGs), the Caribbean. Since the in a safe, nurturing after- which support inclusive and launch of the ASA program school environment, while equitable quality education on April 14, 1999, IGT has promoting opportunities and future employment with installed more than 300 digital in digital learning centers an emphasis on Science, learning centers in customers’ in communities where the Technology, Engineering, Arts, communities – including 15 in Company operates. and Math (STEAM), cultivating 2018 alone. IGT employees IGT’s ASA program creates volunteer their time and shared value in providing technology skills to restore and non-profit community agencies establish each computer lab.
EDUCATE TOMORROW MIAMI, FL , U.S.
YWCA HIGH POINT HIGH POINT, NC, U.S.
LINCOLN ELEMENTARY SCHOOL NORTH BERGEN, NJ, U.S.
NAPAVINE ELEMENTARY SCHOOL NAPAVINE, WA, U.S.
BOYS GIRLS CLUB OF EMERALD VALLEY EUGENE, OR, U.S.
GARDEN PATHWAY DOWNTOWN EDUCATION CENTER BAKERSFIELD, CA, U.S. LITTLE ANGELS LEARNING CENTRE, SOPHIE’S PLACE JAMAICA
SMYTHE ELEMENTARY SCHOOL SAN YSIDRO, CA , U.S. MUSTARD SEED COMMUNITIES MATTHEW : KINGSTON, JAMAICA LUELLA MERRETT ELEMENTARY SCHOOL ST. MAARTEN YOUTH FORT WORTH, TX, U.S. COUNCIL ST.PETERS ST MAARTEN LITTLE CYPRESSMAURICEVILLE CONSOLIDATED INDEPENDENT SYPHIL HOME IN LOV SCHOOL DISTRICT ORANGE, TX, U.S. PASCALL VILLAGE TOBAGO
L.I.F.E. CENTRE TRINIDAD TOBAGO
RAINBOW RESCUE MARAVAL, TRINIDAD ASA LABS TO DATE ASA LAB OPENINGS
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Providence After School Alliance (PASA), RI
Education is IGT’s key focus for community giving. In 2018, the Company was pleased to support the CITY YEAR City Year’s mission is to build democracy Providence After School PROVIDENCE, RI, through citizen service, civic leadership, and social entrepreneurship. City Year is an education-focused, Alliance’s (PASA’s) Police U.S. After School Sports (PASS) non-profit organization that trains and deploys teams AfterZone program. PASA’s of young adults (AmeriCorps members) from diverse mission is to expand and ethnic, educational, and socioeconomic backgrounds improve quality after- to serve full-time as Student Success Coaches in school, summer, and other under-resourced schools. As tutors, mentors, and role learning opportunities models, these young leaders make a difference in the for Providence’s youth by lives of underserved children and youth, helping them organizing a sustainable reach their full potential. public-private partnership that contributes to student During the 2017-2018 school year, AmeriCorps success and serves as a members reached nearly 5,000 students in six national model. Annually, Providence schools with whole-class and whole-school the organization serves support, and roughly 1,000 students with the following approximately 1,700 middle individualized services (some students received more school students through than one service): AfterZone after-school and • In literacy, 379 students received tutoring; 93% summer learning programs, received at least 15 hours, and 47% improved to and 250 high school grade-level performance or above. students through Hub • In math, 395 students received tutoring; 81% programs. of students received at least 15 hours, and 37% improved to grade-level performance or above. PASA’s PASS AfterZone • 288 students received targeted attendance program is operated in coaching. Among students completing the program, close partnership with 29% improved their Average Daily Attendance by the Providence Police two percentage points over the prior year. Department. The program • 229 students participated in a social-emotional offers police officers working skill development curriculum and 67% of students in low-income communities demonstrated significant improvement in their the opportunity to build social-emotional skills, as measured by the Devereux positive, healthy relationships Students Strengths Assessment. with students by leading sports programming. After receiving professional development that improves their coaching SUPPORT FOR In 2018, IGT began supporting the lesbian, gay, skills − including training in THE LGBTQ bisexual, transgender, and queer (LGBTQ) positive youth development community in new ways. In March, IGT sponsored practices − the officers lead COMMUNITY the First Annual Empowerment Breakfast hosted flag football and basketball by the TGI (transgender, gender diverse, and games at each of the five intersex) Network of Rhode Island, in celebration of AfterZone schools. At its the Transgender Day of Visibility. Later in the year, heart, the program uses IGT sponsored The Gay & Lesbian Community sports as a vehicle for Center of Southern Nevada as it celebrated its youth and police officers 25th anniversary. This support is in line with IGT’s to cultivate trusted and increased commitment to diversity and inclusion close relationships with one within the LGBTQ community. another.
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NATIVE AMERICAN GIVING
With its Native American customer provides warm clothing, food, and provided within the Native American base of 280 tribes in 400 locations, popular toys to children living in community. IGT recognizes the importance of the most impoverished reservation • The Native American Basketball supporting its clients through charitable communities. Hundreds of children are Invitational (NABI) Foundation is a contributions, education, and social served every year by this program. national foundation committed to service-related initiatives. • Northwest Indian College (NWIC) supporting Native American youth • Spirit of Sovereignty provides grants on the Lummi Indian Reservation is by implementing programs that that allow Native American tribes the only accredited tribal college in encourage higher education, sports, and individuals to build on the self- the states of Washington, Oregon, health and wellness, and community determination of their sovereign status. and Idaho. Today, NWIC is approved building. The mission of the NABI The Spirit of Sovereignty Scholarship as a baccalaureate degree-granting Foundation is to create, encourage, Program provides approximately institution. Enrollment averages 600 and support Native American youth US$75,000 per year to students students per semester. The educational now and throughout their journey as attending each of the nation’s 37 Native philosophy of NWIC is based on they discover who they are, what they American tribal colleges. Also, each the belief that the post-secondary want to be, and how they can impact year at Christmastime, the foundation education opportunity must be future generations.
PROJECT GENERATION CULTURE The emerging challenges taken on by Project Generation Culture include the future of young generations and the public-private synergy of development projects, particularly in the area of culture. The project is designed and supported by Il Gioco del Lotto in collaboration with the Ministry for Arts, Culture, and Tourism (MiBACT), together with Arte Lavoro e Servizi (ALES) and LUISS Business School.
Italian artistic and cultural heritage represents an opportunity for economic growth for the country and could become an attractive working area for youth. By offering 100 young talents the opportunity to access the job market by developing new skills in the area of culture, the project is establishing a valuable network between institutions, universities, territories, and corporations, which will help cultural institutions to innovate their offering through the proactive contribution of the youth who participate. A scholarship for new graduates under the age of 27, selected through a public process, were granted six weeks of approximately 200 classroom hours of higher training at the LUISS Business School, one of Europe’s most prestigious management schools. Upon completion of the training, more than 30 important cultural institutions across the country welcomed these young people for a six-month paid internship. The program ended with a contest whereby participants submitted their ideas for creating a cultural enterprise, and four of the best ideas were supported by Il Gioco del Lotto and LUISS Business School in preparation of the business plan.
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IDEE VINCENTI In 2018, Lottomatica demonstrated its commitment to innovation and WINNING IDEAS transformation by engaging the best talent in start-up incubation to apply innovative solutions and new users’ experiences to the world of culture. Together with Polihub, the university incubator of Milan Polytechnic, and other prestigious Italian universities, Winning Ideas is a “Call4Ideas” free of charge and open to any student, entrepreneur, non-profit organization, and whomever may be capable of suggesting innovative entrepreneurial projects that incorporate technology such as virtual/augmented reality, blockchain, the Internet of Things, and artificial intelligence to promote the realization, protection, and enhancement of the Italian culture.
Among hundreds of candidates, 10 finalists were selected to attend three training days to perfect their ideas, with each assisted by a mentor from Polihub. The five winning projects were subject to a six-month acceleration program, including classroom and workshop sessions with mentors, to develop adequate business models and market their ideas. The five winners were: Aerariumchain.com: This project will mark the new frontier for arts and archeological heritage protection and realization, thanks to a highly sophisticated system of 3D scans for archiving. AuthclicK: A project centered on photography enhancement of arts and cultural heritage, enabling the development of an advanced system for image digitalization. CityOpenSource: A platform (web app) enabling collaborative storytelling projects through the localization of multimedia content on interactive maps to empower citizens to promote community-based tourist services. Tactile Contamination Pathways: A project to create a way to enjoy art through touch, and provide a social inclusion service for blind people. Seeing the Invisible: 3D reconstruction of long-lost artistic places, such as the Royal Gardens in Monza or the Caryatids Hall in Milan.
LIGHTING UP THE NEW SACRISTY AT THE MEDICI CHAPELS IN FLORENCE
Lottomatica takes pride in learning an organization’s history when supporting a project, as this leads to a very useful collaboration with partners. Restoring the lighting of a highly valued artistic place has allowed Lottomatica to create longterm cultural partnerships. The New Sacristy at San Lorenzo church in Florence is one of the most important monuments of the Italian Renaissance, entirely designed and almost entirely made by a single artist, Michelangelo. The place is now shining a new light thanks to the illumination, maintenance, and restoration project promoted by the Bargello Museums in partnership with Lottomatica.
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126 IGT - SUSTAINABILITY REPORT 2018 Caring for the Environment
photo: Stefania Colombo CSR 127 Rome, Italy Caring for the Environment
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Company cars and trucks, Caring for the Environment electricity and natural gas is used for offices and manufacturing and printing activities, and propane is used for warehouse activities.
• Emissions: Energy use has As a global Company, IGT is a direct and indirect impact committed to complying with on emissions, as does the accepted environmental practices, transportation of goods by including the promise to meet service providers. or exceed applicable legal and certification requirements. The • Waste production: Assembling Company strives to continually and printing processes do not improve its environmental generate a significant amount management systems and reduce of waste. Generally, the waste its environmental impact. Effective produced in these processes is and reliable monitoring systems not hazardous, and most is sent A Principled Approach allow IGT to assess its progress in to recycling, consistent with to Conservation terms of reaching these goals. corporate policies.
IGT’s approach to Approach and Commitment • Sub-processes: The potential environmental activities is guided by the following GRI: 103-3 indirect impact can be significant principles: for some sub-product assembly • Setting and regularly The Company’s activities that processes in Reno (such as assessing goals for could potentially affect the chroming); the suppliers used for improving environmental such processes are periodically performance. environment include hardware and • Following operating software implementation, research monitored via on-site inspections guidelines that protect the and development, warehousing, to verify their compliance with environment, employees’ and administrative tasks. IGT’s regulations. health, and the integrity of communities influenced by industrial activities include printing the Company’s business. in Lakeland, Florida, and Tito Scalo, Since 2016, IGT has used an • Complying with current Italy, and assembly in Reno, Nevada. internal, web-based tool to collect regulations and applicable environmental data from sites authorization requirements The potential environmental impact all over the world. The tool has at all levels. • Applying principles for on IGT facilities is related to: systemized and harmonized the ongoing improvement of data collection process, giving a pollution prevention. • Material consumption: IGT’s more comprehensive overview • Reducing the facility in Reno assembles sub- of the Company’s environmental environmental impact of production processes in an products provided by suppliers, impacts. economically effective way. having an indirect impact on • Sharing information about material consumption. IGT’s In 2018, improvements were made the environmental impact printing facility uses paper and to the tool, which allowed IGT to of its business performance in a transparent manner. inks, having a direct impact on further increase the number of sites • Guaranteeing that material consumption. reporting compared to the previous staff have the skills and year, and covering about 95% of resources needed to • Energy consumption: Energy all Company facilities. Due to a achieve the established environmental goals. is used in fuel for heating and wider reporting boundary, the 2017
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environmental data is compared • The Austin Technology Center • Tito Scalo, Italy. to both 2018 and adjusted 2018 (ATC) in Austin, Texas. • Reno, Nevada. figures. The latter only considers the impact of sites within the 2017 • Lakeland, Florida. Through these EMSs, IGT is boundary to ensure the most committed to improving its accurate comparability of IGT • Rome, Italy. environmental performance. environmental performance over the years. IGT expects to increase reporting to cover 100% of the Company’s sites in 2020.
In accordance with the International Organization for Standardization (ISO) 14001 standard, the Company has Environmental Management Systems (EMSs) in the following locations:
Significant Improvements Reno, Nevada in Environmental Data Collection: Number of Sites Covered and Related Employees
+4% +48% ENVIRONMENTAL CERTIFICATION
The ISO 14001 Environmental Certification relates to the management of major environmental issues (energy consumption, waste production and management, office paper consumption, and supply management with environmental impact), the limitation of harmful substances, and the maintenance of information technology (IT) facilities. IGT has started the process to achieve certification.
The main actions taken on sites with an active ISO 14001 EMS are: • Complete compliance with applicable environmental provisions of state or 113
167 federal laws. 9,647
10,043 • Specific improvements in printing facilities such as reduction of solvent- related air emissions. • Reduction of paper consumption through implementing software to measure employee paper use and a process to monitor the quantity of printed copies. • Reduction of energy consumption through replacing air conditioning systems, adopting more efficient technology platforms, installing air conditioning fan coil sensors, replacing windows, and substituting fluorescent tubes with LED lights. • Reduction of water consumption. • Increased recycling. 2017 2018 2017 2018 • Extensive food waste composting at Rhode Island facilities. EMPLOYEES SITES
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Materials Consumption Moreover, nine sites worldwide Directive of 2006 and its GRI: 103-3; 301-1 provide a local presence, subsequent amendments, customized products, and regional IGT manufactures RoHS- IGT designs, develops, production where it is beneficial compliant machines for European manufactures, and provides devices, or required. Manufacturing distribution. games, systems, and software for operations primarily involve the customers in legal gaming markets. configuration and assembly of Although IGT is not required to IGT uses a variety of raw materials electronic components, cables, do so, manufacturing now includes to assemble gaming devices harnesses, video monitors, and many parts that meet or exceed (e.g., metals, wood, plastics, glass, prefabricated parts purchased the RoHS standards in machines electronic components, and Liquid from outside sources. IGT designs for the U.S. and countries outside Crystal Display [LCD] screens). and manufactures products that the EU. Moreover, IGT machines IGT’s main manufacturing and are compliant with all regulations comply with the European production facility is in Reno, of the jurisdictions where IGT Waste Electrical and Electronic Nevada, with approximately places products. For example, in Equipment (WEEE) Directive on 594,000 square feet dedicated to compliance with the European recycling. Recycling symbols may product development, warehousing, Union (EU) Restriction of be present on some parts, but shipping, and receiving. Hazardous Substances (RoHS) they are not required by IGT.
PURCHASED MATERIALS IGT uses a variety of different non-renewable materials, such as raw materials (e.g., metals, wood), semi-manufactured materials (e.g., assemblies and electronic components), and other materials (e.g., cardboard for packaging, paper, plastic, toners, and inks).
Materials Purchased (ton) 2018 2018 Adjusted 2017 2016
Assemblies 327 12
Electronic components (including monitors, printers, batteries and network hardware) 1,955 1,954 2,398 2,520
Cables 6 6
Plastics (including packaging and foams) 492 491 907 917
Metals 4,692 4,591 6,440 6,049
Wood 572 572 643 524
Cardboard for packaging 432 392 421 396
Office paper 110 101 84 95
of which is FSC1-certified 29 24 9 10
Paper for lottery tickets * 14,350 13,964 28,447 27,496
Toner and liquid inks 1,766 1,730 1,761 1,576
1 FSC: Forest Stewardship Council * This amount includes the consumption of paper used for machine testing at the Reno facility.
131 CARING FOR THE ENVIRONMENT
The Company relies heavily on the aimed at reducing the use of non- supply of paper for instant ticket recyclable materials, such as foam production, and is committed used for packaging. to reducing the impact of paper consumption on natural resources. Machine End-of-Life Management This is in line with the commitments of its major paper suppliers that The Reno facility manufactures abide by several environmental two types of machines: ITVMs standards. The Forest Stewardship and EGMs. ITVM maintenance Council (FSC), Sustainability and replacement programs vary Forest Initiative (SFI), and Program depending on the lottery contracts. for the Endorsement of Forest The ITVMs’ end-of-life treatment Certification (PEFC) all promote is determined by each individual sustainable forest management, jurisdictions’ regulations, and these reforestation, and continuous machines are not returned to the improvement of standards and Reno facility. EGMs, conversely, Most materials purchased were for practices to certify environmentally can be sold or rented. In the latter IGT’s Reno facility and used for responsible paper-sourcing case, rented EGMs in the U.S. assembling Instant Ticket Vending processes. . are returned to Reno to undergo Machines (ITVMs), Electronic reconditioning or updating (software Gaming Machines (EGMs), and Considering the same reporting or hardware). Older or outdated packaging. In 2018, about 33,000 boundary, the Company’s machines are scrapped, and ITVMs and 40,000 EGMs were consumption of office paper in 2018 components that can’t be reused assembled in Reno. increased by 19%. On the other are delivered to providers of disposal hand, purchases of cardboard for services. Below is the consumption of packaging consumption decreased materials used by the Reno facility, by 7%, as well as lottery paper In 2018, IGT continued to carry out expressed as a percentage of the consumption (-51%) and purchases gaming equipment refurbishment total materials consumed by the of toner and liquid inks (-1.7%). (mostly in the U.S.), with an annual Company : volume of approximately 3,900 Sustainability activities are carried units equal to 9.71% of total EGMs • 84% of electronic components. out at the Reno facility to recycle assembled in 2018. The volume and
• 98% of plastics. materials and reduce the use of percentage of reused materials at non-recyclable materials. In 2018, a the Reno facility are below: • 98% of metals. recycling program for wood pallets was initiated to return them to • 613.5 tons of metal (13.4%). There is also significant paper, toner, suppliers. When the facility receives • 66.4 tons of plastic (14%). and ink consumption in IGT offices unassembled cabinets, they are removed from shipping pallets and and at ticket printing facilities. A • 131.4 tons of electronic large portion includes packaging, the latter are stored in the warehouse. components and cables (16.8%). most of which involves cardboard Once a specific quantity of pallets and paper. IGT’s printing presses (120) is reached, they are returned • 145.3 tons of monitors (12.7%). in Florida are servo-driven and can to the supplier for reuse. During be operated solely on water-based the reporting year, 51,840 pounds Outside of the U.S., machines’ ink systems. The servo-driven press of pallets have been returned for end-of-life management is handled optimizes job changeover times, reuse, resulting in 824 trees saved. In according to local regulations minimizes material waste, and offers addition, the logistics department on reuse, recycling, and waste high print quality. of Reno is implementing activities reduction.
132 IGT - SUSTAINABILITY REPORT 2018
REDUCING THE ENVIRONMENTAL IMPACT AT IGT FACILITIES AROUND THE WORLD
In 2018, IGT offices and facilities worldwide implemented initiatives at the local level to reduce the Company’s environmental impact: Natural ventilation system installed in the Amsterdam office. • Billings, Montana: All outdoor and warehouse lights were Energy Consumption IGT has earned Leadership converted to LED and the new GRI: 103-3; 302-1; 302-4 in Energy and Environmental service area now uses 100% LED lights. The estimated Design Certification for its energy saving is between 1,500 Reducing energy consumption is Reno facility, and an ISO – 2,500 kWh in 2018. a priority for the Company. IGT’s 50001 Energy Management • Dover, Delaware: By shutting direct energy consumption mainly Systems certification in Rome for all lights off at night and on concerns heating fuel (primarily weekends, the site saved about improving energy management. 8,448 kWh. natural gas) and its corporate fleet • Galwin, Netherlands: A natural (cars and small trucks). In case of a Moreover, in 2018, the Reno ventilation system based on power-outage emergency, fuel is facility was recognized with compressed air was installed in used for back-up electrical supply. the warehouse to minimize the a Green Globes certification use of energy and achieve a good The indirect consumption of energy following several sustainability work climate. This installation also includes electric consumption for performance assessments (such decreased the need for heating offices, data centers, manufacturing, as those related to energy and thanks to a glass wall in the and printing. Considering the same production site, making it possible resources used). The facility to heat the space with the sunlight reporting boundary, the Company’s earned four Green Globes, the coming in. consumption in 2018 is in line with highest mark that can be achieved • Reno, Nevada: In a continuous that of the previous year. by an existing facility. effort to increase energy efficiency, the Reno site implemented projects Energy Consumption contributing to reduced electricity and gas consumption. 2018 The electricity consumption Gigajoule (GJ) 2018 Adjusted 2017 2016 registered a reduction of 1,166,837 kWh compared to Natural gas * 110,526 105,729 57,724 55,843 2017. • Beijing, China: Eco-friendly Electricity 405,029 332,514 378,814 375,520 behaviors are encouraged, such as shutting down EGMs during Gasoline (Fleet) 316,857 316,857 323,081 328,295 holidays. Diesel consumption • Moncton, Canada: LED lights were installed in the building, for vehicles and generators 41,987 38,929 29,797 31,210 replacing fluorescent tubes and resulting in 65,000 kWh Liquefied Petroleum Gas (LPG) 290 290 354 390 saved per year; at the end of 2017, the largest heating and Propane * 270 39 492 - air conditioning system in the Total energy consumption 874,399 794,027 790,262 791,258 building was modified, resulting in an estimated saving of 131,527 kWh. * The difference between 2017 data and 2018 adjusted data is due to the fact that not all sites involved in the collection process provided data in 2017
133 CARING FOR THE ENVIRONMENT
• Eliminated approximately 1,530 Moreover, IGT’s Reno campus is tons of Greenhouse Gas (GHG) an ISO 14001:2015-certified facility, annually from commuting which provides many benefits for employees by providing a fitness organizations with environmental center, cafeteria, and on-site management systems. childcare services; Organizations and companies find that the standard helps them to: • Diverted 81% of waste from the landfill through IGT Reno’s • Improve resource efficiency. extensive waste management Overall, these initiatives program. • Reduce waste. contributed to reducing IGT’s environmental impact in terms of • Finished in the 35th percentile • Drive down costs. CO2 emissions by saving about above the national median for 546.5 tons of CO2, equivalent to energy efficiency performance. • Provide assurance that the CO2 emissions generated by environmental impact is being charging 69,694,153 smartphones. • Installed efficient water fixtures measured. that have decreased water usage by 15%. • Gain a competitive advantage in Leadership in Energy and Environmental terms of supply chain design. Design (LEED) Certification • Reduced water used for irrigation by 50% from initial design. • Increase new business The Reno facility has LEED opportunities. Gold certification, awarded • Purchased energy-efficient by the United States Green electrical and electronic • Meet legal obligations. Building Council. In 2015, the equipment, high-recycled- Reno facility was certified content furniture, and low- • Increase stakeholder and customer LEED Gold until 2025, mercury fluorescent lamps. trust. entailing tax savings of $1.5 million over 10 years. IGT Reno • Converted all hydraulic • Improve overall environmental operates as Nevada’s first gold- trash compactors to auger impact. certified facility, combining compactors, reducing the office, data processing, and number of hauls per year by 15%, • Manage environmental manufacturing activities under further reducing GHGs. obligations with consistency. the LEED “Existing Buildings: Operations & Maintenance” distinction. The Reno facility operates with less water and systematic approach to continually ISO 50001 Certification improving energy performance, energy, reducing greenhouse including energy efficiency, energy gas emissions and, as a bonus, Since 2011, IGT has implemented use, and energy consumption. Also, saving money. an ISO 50001-certified Energy ISO 50001:2011 requirements with Management System (EMS) for regard to energy use and consumption the Rome, Italy, location. The ISO include measurement, documentation, Among the benchmarks met by 50001:2011 certification specifies reporting, design, and procurement the Reno office to earn LEED requirements to establish, implement, practices for equipment, systems certification are: maintain, and improve an EMS that processes, and personnel that/who enables an organization to follow a contribute to energy performance.
134 IGT - SUSTAINABILITY REPORT 2018
keeping the vehicles in service longer with less mileage, but also limit IGT’s exposure to liability.
• Scope II Emissions: These refer entirely to electrical consumption. IGT, beyond its commitment to reduce energy consumption, strives to use green energy where suitable.
Emissions GRI: 103-3; 305-1; the country. To fulfill these • Scope III Emissions: These 305-2; 305-3; 305-5 contractual obligations, the Company uses a domestic derive from paper consumption (both for office and production GHG Emissions fleet that fluctuates between 1,550 and 1,650 vehicles. In use), shipments of IGT goods by third parties, and business travel. The GHG emissions produced 2018, the fleets numbered 1,606 In 2018, IGT continued a strategy by IGT activities are caused by vehicles. The fleet comprises in Italy aimed at increasing fuel and electrical consumption gasoline and diesel-powered shipping efficiency by preventing and transportation of goods and service vans, as well as gasoline- vans from leaving when not people. GHG emissions are powered sales force vehicles. fully loaded, and reorganizing divided into three categories: IGT continues to focus on driver behavior by addressing routes and deliveries. In 2018, considering the same reporting • Scope I Emissions: These refer fuel consumption affected by boundary, CO2 emissions to fuel consumption (natural idle time, rapid acceleration, were reduced by about 8% gas and Liquefied Petroleum and cargo weight. In addition, compared to 2017. To reduce the Gas [LPG] for heating, diesel the Company strives to keep environmental impact, IGT has consumption for generators, and its fleet appropriately sized for implemented Cisco Solutions to diesel and gasoline consumption specific contractual needs and securely teleconference between for vehicles such as fleet cars territorial requirements. In 2018, offices to reduce travel and its and small trucks), and fugitive IGT eliminated the unlimited associated carbon footprint. emissions from refrigerant personal use of Company gases. Many of IGT’s U.S. vehicles, which affected Within the same reporting contracts require the Company approximately 150 employees. boundary, Scope II emissions have to install, maintain, and service This was an effort to not only decreased by 13% compared to 2017, lottery equipment throughout reduce overall vehicle costs by
Greenhouse Gas (GHG) Emissions 2018 Tons CO2 eq 2018 Adjusted 2017 2016
Scope I 36,514 36,047 27,784 27,222
Scope II * 47,941 40,217 46,028 44,689
Scope III 34,937 34,763 37,886 41,650
* In 2018, Scope II emissions based on market-based methodology are equal to 52.264 ton CO2
135 CARING FOR THE ENVIRONMENT
while Scope I emissions increased and office sites). The two printing VOC EMISSION mainly due to the increasing natural facilities in Lakeland, Florida PROGRAM AT gas consumption and diesel for and Tito Scalo, Italy, as well as THE LAKELAND generators. the Reno manufacturing facility, PRINTING adopted a similar approach to FACILITY At the Lakeland, Florida facility, VOCs, ensuring the monitoring a GHG emissions reduction activities are compliant with the At the Lakeland facility program details the most energy- law, and staying significantly below in Florida, a three-year efficient ways to run the printing the limit set by local authorities. volatile organic compound press, including: (VOC) emission reduction In 2018, VOC emissions from program was implemented • Using natural gas to dry ink. printing activity in Lakeland to eliminate all solvent inks dropped by more than 24% from IGT processes. Thanks • Using better operating practices, compared to 2017. The other to this program, IGT won in such as shutting down the dryers printing plant, located in Tito the Sustainability Programs when it doesn’t impact quality Scalo, constantly monitors VOC category in the 2019 FTA and reducing downtime as Sustainability Excellence emissions while fully complying operating efficiencies improve. Award competition. The with stringent Italian regulations. In transition covered about a 2018, VOC emissions amounted two-year period, with 2018 • Using faster-drying inks. to 79 tons. as the first operating year • Eliminating propane-driven using an all-water-based Waste GRI: 103-3; 306-2 system. IGT developed a forklifts. suitable all-water-based Most of IGT’s waste is produced product and completed the internal testing to ensure the Other Emissions at the Company’s manufacturing required two-plus-year shelf and printing plants. Each one life of the instant tickets, IGT’s production processes do not has obtained ISO 14001 EMS resulting in a significant have a significant impact on the or LEED certification to ensure reduction of the VOC atmosphere. The only significant proper waste management output and 65% reduction of emissions are volatile organic and a commitment to hazardous waste compared compounds (VOCs) resulting improving performance. In to 2017. The most positive from printing activities, and very 2018, IGT produced more impact was to the well- low emissions of ozone-depleting than 11,000 tons of waste, of being of employees and the which 86% was non-hazardous environment, as it made the substances for cooling systems plant a safer place to work. at various sites (both production and 14% was hazardous.
Instant Lottery Ticket Volume Growth VOC/KSU* Reduction Monitoring
2015 2016 2017 2018 2015 2016 2017 2018 * In 2018, Scope II emissions based on market-based methodology are equal to 52.264 ton CO2 * Thousand Standard Used produced 136 IGT - SUSTAINABILITY REPORT 2018
Considering the same reporting is registered as a Small Quantity boundary, IGT waste production Generator of hazardous waste. in 2018 compared to 2017 has Since 2017, the Reno facility has decreased mostly because of diverted 80% of waste by using the considerable reduction in multiple balers to segregate hazardous waste production. This waste streams. IGT’s Reno office is because, in 2018, all electronic is making a continuous effort to devices (such as monitors, routers, eliminate the majority of expanded televisions, and video lottery polystyrene cups used at the office terminals) at retailers in Italy were coffee stations, and has supplied replaced to comply with the new each employee with a reusable Lotto concession and the Italian coffee mug. WEEE (Waste Electrical and Electronic Equipment) regulation, In 2018, IGT’s printing facility in and, as a consequence, hazardous Lakeland was able to complete waste production was much higher. the full transition from solvent ink to a fully water-based system, IGT’s manufacturing facility in significantly reducing the hazardous Reno complies with the RoHS and waste by 65% compared to 2017.
Waste Produced
2018 2018 adjusted 2017 2016
Waste Waste Waste Waste Sent to Sent to Sent to Sent to Recovery, Waste Recovery Waste Recovery, Waste Recovery, Waste Reuse and Sent to Reuse and Sent to Reuse and Sent to Reuse and Sent to (Tons) Recycling Landfill Recycling Landfill Recycling Landfill Recycling Landfill
Non-hazardous waste 7,094 2,425 7,094 2,256 6,929 2,605 6,846 1,388 Hazardous waste 54 1,545 54 1,545 19 23,718 78 18
137 CARING FOR THE ENVIRONMENT
Water GRI: 103-3; 303-1
As a rule, all IGT facilities – except the printing facilities – receive water from local municipal sources. Water is primarily used in the cafeteria and washrooms, as well as for office purposes and silkscreen printing activities. Consequently, IGT is not a major user of municipal water. IGT does not currently reuse or recycle water in its facilities.
Water Consumption 2018 (m3) 2018 Adjusted 2017 2016 Consumption 306,122 186,170 200,340 240,052 Discharge 244,647 124,696 143,243 181,259
Regarding consumption, 89% of water used comes from water utilities, and 11% is reclaimed water. More than 95% of wastewater is discharged through the local municipal water system for treatment and a little less than 5% into different wastewater plants. Considering the same reporting boundary, in 2018, water consumption decreased by about 7% compared to that of the previous year.
138 IGT - SUSTAINABILITY REPORT 2018 Appendix
photo: Roxana Di Franco Technical Training - LAC 139Buenos Aires, Argentina 140 IGT - SUSTAINABILITY REPORT 2018 Appendix
Methodological Note impact, regardless of whether they occurred inside or outside the Introduction organization.
This Sustainability Report is issued Topics were identified as internally by International Game Technology relevant by qualitatively assessing PLC and its subsidiaries (or “IGT” their economic, environmental, and or the “Company” unless otherwise social performance, while taking stated) to disclose its sustainability into account Company initiatives, performance and preserve an procedures, policies, and functions. important communication channel with its stakeholders. External relevance was determined by considering the main categories Identifying material of stakeholder and business aspects and boundaries impacts at local, regional, and GRI: 102-46; 102-47; 103-1 global levels. For the 2018 Sustainability Report, some proxy Materiality Definition Process data has been used to measure the topics’ relevance in stakeholders’ The subjects covered in the report assessments and decisions. have been identified through a materiality definition process that In particular, the following analyses IGT used to identify the most have been carried out: relevant economic, environmental, and social topics for the Company. • Benchmark analysis: The Global Reporting Initiative sustainability and social (GRI) Sustainability Reporting responsibility reports and Standards require the Sustainability official websites of a panel of 30 Report to include information companies, both competitors related to topics deemed material and peers, to identify the most – those that reflect significant widely discussed sustainability impact of the organization from issues. economic, environmental, and social viewpoints and substantially • Media analysis: publicly available influence stakeholders’ assessments articles related to relevant and decisions. The material topics sustainability areas, to identify were examined in four phases: the influences from public identification, prioritization (and opinion and the media. determination of the materiality), validation, and review. • Sector trend analysis: main sustainability documents In the identification phase, all topics published by the most important were considered according to their international sustainability
141 APPENDIX
organizations and the level to identify the main documents produced by sustainability issues at the specific sector associations international level. and organizations (e.g., gaming sector outlook • Customer and investor studies published by leading pressures analysis: international consulting firms, documents and specific Sustainability Accounting ESG (environmental, social, Standard Board Materiality governance) questionnaires Map for the “Casinos & submitted to IGT in 2018 to Gaming” sector and “Software identify the main sustainability and IT Services”). issues on which customers and IGT investors focus their • Sustainability macro trends attention. worldwide: documents and reports of the most The analysis in the table below relevant and influential non- identifies the boundaries of relevant governmental organizations, topics where impacts might occur, policymakers, and the main both within and outside IGT. stock exchanges on a global
Relevance Relevance within the outside the IGT Relevant Topic Related Topic-Specific GRI Standards Organization Organization
Business Ethics Anti-Corruption, Public Policy, Economic Performance
Customer Relations -
Environmental Impacts Materials, Water, Effluents and Waste
Climate Change Energy, Emissions
Innovation and Digitalization -
Local Communities - Product Safety & Quality Responsible Gaming Customer Health and Safety, Marketing and Labeling
Supply Chain Management Procurement Practices Diversity and Inclusion Diversity and Equal Opportunity, Non-Discrimination
Talent Attraction & Retention Employment, Training and Education
Fair Work Conditions Occupational Health and Safety
Data Privacy and Security Customer Privacy
Respect for Human Rights Child Labor, Forced or Compulsory Labor, Human Rights Assessment
142 IGT - SUSTAINABILITY REPORT 2018
Report profile GRI: 102-1; 102-48; 102-50;102-52; 102-53; 102-54
Boundary and Reporting Period
This is the Sustainability Report edited by International Game In the following phase, we Technology PLC and its prioritized the economic, subsidiaries, covering fiscal year environmental, and social 2018 (January 1, 2018 - December significance as well as the 31, 2018). subsequent influence on stakeholders’ assessments and The perimeter of the report decisions. Based on the principles regarding economic and social of materiality and stakeholder performance includes the total inclusiveness, this phase was Consolidated Financial Statement divided into two parts. of International Game Technology PLC and its subsidiaries as of The first part identified a topic’s December 31, 2018. In 2018, significance according to its there was in increase in the influence on stakeholder decisions environmental reporting boundary and impact on stakeholder that began in 2016 with the launch perceptions and expectations. of an internal web-based data collection tool. This expansion The second part identified a continued and the reporting topic’s significance related to IGT’s boundary included data from more performance, considering: than 220 sites worldwide.
• The likelihood of the risks related For a better understanding of to the material aspect being the Company and its business, prioritized. please refer to International Game Technology PLC Annual • The potential severity of these Reports and Accounts 2018 and risks. to International Game Technology PLC’s 2018 Form 20-F as of The topics are represented in the December 31, 2018. Materiality Matrix reported on page 24 according to their external The 2018 Sustainability Report and internal priority. describes activities, initiatives and significant events that took place In this matrix, a threshold was in 2018, as well as comparative defined to identify material topics data related to 2017 and 2016, reported by IGT. Consistently where available. Due to the with the precautionary principle, aforementioned increase in the all relevant topics have been environmental reporting boundary, considered material. the 2017 environmental data is
143 APPENDIX compared to both 2018 figures and assurance engagement, 6. “Supporting Our adjusted(1) 2018 figures to ensure according to International Communities” evaluates accurate comparisons of IGT Standard on Assurance the Company’s initiatives on environmental performance during Engagements (ISAE) 3000 behalf of the community. those years. (revised) criteria. 7. “Caring for the Environment” illustrates the Company’s Preparation Principles Report Structure environmental impacts and the efforts made to reduce The 2018 Sustainability Report The document is made up of them. has been edited according to the seven sections and an appendix: Global Reporting Initiative (GRI) Moreover, in the appendices of Sustainability Reporting Standards, 1. “About IGT” describes the the document, both universal issued in October 2016. international gaming space and topic-specific GRI Standards in which the Company are reported within the content The content index is shown on operates, as well as the index in accordance with the Core page 152. Company’s activities, option of the GRI Sustainability sustainability strategy, and Reporting Standards. Based on the current coverage of governance structure. both “Universal Standards” and The 2018 Sustainability Report is “Topic-Specific Standards” linked 2. “Advancing Responsibility” edited and published in English to material topics, this report has provides an overview of the on www.igt.com under “Global been prepared in accordance Company’s commitment to Responsibility.” with the GRI Standards, “Core Responsible Gaming and option.” how the Company protects More information and in-depth its people, products and analysis about topics disclosed in processes. the report can be requested via Sources and Data Gathering Systems email at [email protected] The contents of the report 3. “Partnering with Our are based on the results of the Customers” presents and stakeholder engagement, which analyzes the relationships involves both external stakeholders between the Company and and corporate functions. Data its customers. sources include internal documents, market surveys, and other official 4. “Valuing Our People” sources indicated in the report. provides an overview of Financial and economic data and the IGT workforce and the information relate to Form 20-F of Company’s commitment to International Game Technology fostering a positive climate PLC and its subsidiaries, published and engaging with its 1) 2018 adjusted figures are calculated (2) on December 31, 2018 . employees. based only on the sites that were in the 5. “Growing with Our 2017 boundary. Assurance Process Supply Chain” provides 2) The financial information is presented a description of the in U.S. dollars, unless otherwise The 2018 Sustainability Report has Company’s supply chain specified. Any reference to “$” refers been verified by an independent and activities carried out to to the currency of the United States of auditor who carried out a limited ensure its sustainability. America (or “U.S.”).
144 IGT - SUSTAINABILITY REPORT 2018
Social KPIs GRI: 102-8; 401-1; 403-2; 404-1; 405-1
2018 2017 Employment contract Men Women Total Men Women Total Permanent contracts 8,234 3,719 11,953 8,334 3,772 12,106 Temporary contracts 81 66 147 104 68 172
2018 2017 Employees by region Men Women Total Men Women Total U.S. 2,079 4,476 6,555 4,486 2,104 6,590 ITALY 1,141 628 1,769 1,138 622 1,760 Rest of the world 2,698 1,078 3,776 2,814 1,114 3,928 Total 5,918 6,182 12,100 8,438 3,840 12,278
Employment type Men Women Total Men Women Total Employees on full-time contract 8,126 3,653 11,779 7,983 3,607 11,590 Employees on part-time contract* 189 132 321 455 233 688
* Employees scheduled under 30 hours per week (part time)
2018 2017 New Employee Hires Employee Turnover New Employee Hires Employee Turnover Age group Number Rate (%) Number Rate (%) Number Rate (%) Number Rate (%) Up to 30 658 48 472 35 747 52 528 37 30-50 619 9 823 11 722 9 1,070 14 Over 50 147 4 301 9 157 5 370 12 Total 1,424 12 1,596 13 1,626 13.2 1,968 16
145 APPENDIX
2018 2017 New Employee Hires Employee Turnover New Employee Hires Employee Turnover Number Rate (%) Number Rate (%) Number Rate (%) Number Rate (%) U.S. 978 15 1,019 16 1,073 16 1,351 21 ITALY 64 4 35 2 64 4 35 2 Rest of the world 382 10 542 14 489 12 582 15 Total 1,424 12 1,596 13 1,626 13 1,968 16
2018 2017 New Employee Hires Employee Turnover New Employee Hires Employee Turnover Number Rate (%) Number Rate (%) Number Rate (%) Number Rate (%) Male 901 11 1,020 12 1,034 12 1,328 16 Female 523 14 576 15 592 15 640 17 Total 1,424 12 1,596 13 1,626 13 1,968 16
Number of employees per employee category 2018 2017 Up to 30 30-50 Over 50 Up to 30 30-50 Over 50 Category Men Women Tot Men Women Tot Men Women Tot Men Women Tot Men Women Tot Men WomenTot Senior Management - - - 227 96 323 243 59 302 - 257 111 368 205 40 245 Middle Managament 21 9 30 676 311 987 355 120 475 18 17 35 742 309 1,051 304 107 411 Office staff 837 400 1,237 3,964 1,809 5,773 1,766 825 2,591 887 419 1,306 4,308 1,929 6,237 1,467 717 2,184 Workers 63 34 97 77 56 133 86 66 152 61 36 97 110 88 198 79 67 146
Percentage of employees per employee category 2018 2017 Up to 30 30-50 Over 50 Up to 30 30-50 Over 50 Category Men Women Tot Men Women Tot Men Women Tot Men Women Tot Men Women Tot Men WomenTot
Senior Management - - - 36.3 15.4 51.7 38.9 9.4 48.3 - - - 41.9 18.1 60.0 33.4 6.5 40.0 Middle Managament 1.4 0.6 2.0 45.3 20.8 66.2 23.8 8.0 31.8 1.2 1.1 2.3 49.6 20.6 70.2 20.3 7.1 27.5 Office staff 8.7 4.2 12.9 41.3 18.8 60.1 18.4 8.6 27.0 9.1 4.3 13.4 44.3 19.8 64.1 15.1 7.4 22.5 Workers 16.5 8.9 25.4 20.2 14.7 34.8 22.5 17.3 39.8 13.8 8.2 22.0 24.9 20.0 44.9 17.9 15.2 33.1
Governance bodies 2018 2017 Up to 30 30-50 Over 50 Up to 30 30-50 Over 50 Gender Number Rate% Number Rate% Number Rate% Number Rate% Number Rate% Number Rate% Men - - 1 7 11 79 - - - - 11 92 Women - - - - 2 14 - - - - 1 8
146 IGT - SUSTAINABILITY REPORT 2018
2108 2017 Total training hours Average number of training hours Average number Total training hours of training hours
Professional category Men Women Total Men Women Total Men Women Total Men Women Total Senior Management 3,624 1,033 4,657 7.71 6.66 7.45 2,001 967 2,968 4.33 6.40 4.84 Middle Management 13,677 6,241 19,918 13.00 14.18 13.35 16,704 9,941 26,645 15.70 22.96 17.80 Office Staff 25,609 18,998 44,607 3.90 6.26 4.65 33,849 15,880 49,729 5.08 5.18 5.11 Workers 22,251 2,225 24,476 98.46 14.26 64.07 900 390 1,290 3.60 2.04 2.93 Total 65,162 28,497 93,659 7.84 7.53 7.74 53,454 27,178 80,632 6.33 7.08 6.57
2018 2017 Italy Italy Men Women Total Men Women Total No. of employees entitled to parental leave 1,137 625 1,762 1,133 620 1,753 No. of employees that took parental leave 80 142 222 88 136 224 No. of employees that returned to work 79 124 203 87 124 211 No. of employees still employed after 12 months 80 120 200 61 132 193 Return to work rate (%) 99 87 91 99 91 94 Retention rate (%) 92 97 95 1 99 99
* 2018 data from U.S. and the rest of the world not available
Annual total ratio compensation* 2018 2017 Ratio 265.659 227.580
* The ratio has been calculated considering the CEO’s annual total compensation and the median basic salary of employees.
147 APPENDIX
2018 2017 U.S* U.S Rate Men Women Total Men Women Total Injury Rate (IR) 0.67 0.67 0.67 1.45 0.96 1.30 Lost Day Rate (LDR) 18.49 19.64 18.84 36.56 25.41 33.00 Absentee Rate (AR) 0.74 0.79 0.75 1.46 1.02 1.32 *2018 U.S. data have been estimated
2018 2017 Italy Italy Rate Men Women Total Men Women Total Injury Rate (IR) 1.21 1.62 1.35 1.29 1.98 1.52 Lost Day Rate (LDR) 18.87 28.25 22.15 23.36 37.73 28.32 Absentee Rate (AR) 23.88 29.07 25.69 22.08 32.41 25.63
2018 2017 Rest of the world* Rest of the world Rate Men Women Total Men Women Total Injury Rate (IR) 0.73 - 0.58 0.33 0.41 0.35 Lost Day Rate (LDR) 0.56 - 0.43 5.78 12.68 7.78 Absentee Rate (AR) 9.26 14.88 10.48 7.61 12.92 9.09
* 2018 data takes into consideration countries in which IGT operates with more than 50 employees, ex- cept the following countries due to lack of data: Canada, China, Colombia, Costa Rica, India, Jamaica, Netherlands, Poland, Serbia, South Africa, Trinidad and Tobago, and UK.
2018 2017 IGT total IGT total Rate Men Women Total Men Women Total Injury Rate (IR) 0.77 0.78 0.77 0.95 0.81 0.91 Lost Day Rate (LDR) 16.39 19.80 17.42 26.14 24.32 25.57 Absentee Rate (AR) 5.61 7.68 6.24 6.05 8.81 6.92
148 IGT - SUSTAINABILITY REPORT 2018
Independent Auditor’s Report GRI: 102-56
149 APPENDIX
150 IGT - SUSTAINABILITY REPORT 2018
151 APPENDIX
GRI Content Index GRI: 102-55
“For the GRI Content Index Service, GRI Services reviewed that the GRI content index is clearly presented and the references for all disclosures included align with the appropriate sections in the body of the report.”
GRI STANDARD DISCLOSURE PAGE NUMBER(s) AND/OR URL(s) OMISSION GRI 101: Foundation 2016
GRI 102: GENERAL DISCLOSURES 2016
ORGANIZATIONAL PROFILE 102-1 Name of the organization Methodological Note - Report Profile - p. 143 102-2 Activities, brands, products, and services About IGT - Products and Services - p. 17 102-3 Location of headquarters About IGT - Profile - p. 13 102-4 Location of operations IGT Global Footprint - p. 7 102-5 Ownership and legal form Please refer to Form 20-F 2018 - p. 81 102-6 Markets served About IGT - Products and Services - p. 17 102-7 Scale of the organization About IGT - Profile - p. 13 Please refer to Form 20-F 2018 - p. 8 102-8 Information on employees and other workers Appendix - Social KPIs - p. 145 102-9 Supply chain Growing with Our Supply Chain - p. 105 102-10 Significant changes to the organization and its supply chain In 2018, there has not been any change in capital structure (please refer to 20-F - p. 81-82), operations, or supply chain. 102-11 Precautionary Principle or approach About IGT - Focusing on Our Stakeholders (IGT’s commitments to UN Sustainable Development Goals) - p.25 102-12 External initiatives About IGT - Focusing on Our Stakeholders (IGT’s commitments to UN Sustainable Development Goals) - p. 25; p. 59 Advancing Responsibility - Responsible Gaming (Certifications) - p. 25; p. 59 102-13 Membership of associations About IGT - Focusing on Our Stakeholders (IGT’s commitments to UN Sustainable Development Goals) - p. 25 Advancing Responsibility - Responsible Gaming (Partnering at International Level to Advance Responsible Gaming Research and Adoption) - p. 54
STRATEGY 102-14 Statement from senior decision-maker Letter from the CEO - p. 10
ETHICS AND INTEGRITY 102-16 Values, principles, standards, About IGT - Mission, Vision, Values - p. 14 and norms of behavior Please also refer to IGT’s Code of Ethics for Principal Executive Officer and Senior Financial Officers (http://phx.corporate-ir.net/phoenix. zhtml?c=119000&p=irol-govHighlights_pf)
GOVERNANCE 152
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GOVERNANCE 102-18 Governance structure About IGT - Profile (Governance) - p. 15 Please refer to 20-F - p. 77
STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups About IGT - Stakeholder Relationships and Engagement - p. 29 102-41 Collective bargaining agreements Valuing Our People - Protecting Human Rights - p. 92 102-42 Identifying and selecting About IGT - Stakeholder Relationships stakeholders and Engagement - p. 29 102-43 Approach to stakeholder About IGT - Stakeholder Relationships and Engagement - p. 29 102-44 Key topics and concerns raised About IGT - Stakeholder Relationships and Engagement - p. 29
REPORTING PRACTICE 102-45 Entities included Please refer to 2018 UK Annual Report and in the consolidated financial Accounts 140-147 statements 102-46 Defining report content Methodological Note - Identifying Material and topic Boundaries Aspects and Boundaries - p. 141 102-47 List of material topics Methodological Note - Identifying Material Aspects and Boundaries - p. 141 102-48 Restatements of information Methodological Note - Report Profile - p. 143 102-49 Changes in reporting About IGT - Focusing on Our Stakeholders (Materiality Analysis) - p. 23 102-50 Reporting period Methodological Note - p. 143 102-51 Date of most recent report Previous edition of Sustainability Report was published in 2018 102-52 Reporting cycle Methodological Note - Report Profile - p. 143 102-53 Contact point for questions regarding the report Methodological Note - Report Profile - p. 143 102-54 Claims of reporting in accordance with the GRI Standards Methodological Note - Report Profile - p. 143 102-55 GRI Content Index GRI Content Index - p. 152 102-56 External assurance Independent Auditor’s Report - p. 149
MATERIAL TOPICS
SUPPLY CHAIN MANAGEMENT
PROCUREMENT PRACTICES GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management approach Growing with Our Supply Chain - p. 105 GRI 204: Procurement 204-1 Proportion of spending Practices 2016 on local suppliers Growing with Our Supply Chain - p. 105
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RESPECT FOR HUMAN RIGHTS
CHILD LABOR GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 Please also refer to IGT’s Modern Slavery Act Statement 2018 (www.igt.com) 103-3 Evaluation of the management Valuing Our People - Protecting Human Rights - p. 92 approach Growing with Our Supply Chain - Respecting Human Rights in the Supply Chain - p. 107 Please also refer to IGT’s Modern Slavery Act Statement 2018 (www.igt.com) GRI 408: Child Labor 408-1 Operations and suppliers at In 2018, no situations at risk of violating laws and 2016 significant risk for incidents of child labor regulations concerning child labor were identified.
FORCED LABOR GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 Please also refer to IGT’s Modern Slavery Act Statement 2018 (www.igt.com) 103-3 Evaluation of the management Valuing Our People - Protecting approach Human Rights - p. 92 Growing with Our Supply Chain - Respecting Human Rights in the Supply Chain - p. 107 Please also refer to IGT’s Modern Slavery Act Statement 2018 (www.igt.com) GRI 409: Forced or 409-1 Operations and suppliers at In 2018, no situations at risk of violating laws Compulsory Labor significant risk for incidents of forced and regulations concerning forced or 2016 or compulsory labor compulsory labor were identified.
HUMAN RIGHTS ASSESSMENT GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Growing with Our Supply Chain - Respecting Human Rights in the Supply Chain - p. 107 GRI 412: Human 412-2 Employee training on human rights More than 4% of total IGT employees received Rights Assessment 2016 policies or procedures 856.5 hours of training about human rights topics in 2018.
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BUSINESS ETHICS
ECONOMIC PERFORMANCE GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note - p. 141 (Identifying material aspects and boundaries) 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management About IGT - Focusing on Our Stakeholders approach (Direct Economic Value Generated and Distributed) - p. 27 GRI 201: Economic 201-1 Direct economic value generated About IGT - Focusing on Our Stakeholders Performance 2016 and distributed (Direct Economic Value Generated and Distributed) - p. 27
ANTI-CORRUPTION GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note - p. 141 (Identifying material aspects and boundaries) 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 Please also refer to IGT’s Anti-Corruption Compliance and Ethics Policy (https://www.igt.com /en/explore-igt/about-igt/compliance) 103-3 Evaluation of the management About IGT - Anti-Corruption Compliance and Ethics approach Policy; Whistleblower Policy; Regulatory Framework and Recent Regulatory Changes - p. 16; p. 17; p. 19 GRI 205: 205-3 Confirmed incidents of corruption In 2018, no confirmed incidents of Anti-corruption 2016 and actions taken corruption were registered.
PUBLIC POLICY GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 Please also refer to IGT’s Anti-Corruption Compliance and Ethics Policy (https://www.igt.com /en/explore-igt/about-igt/compliance) 103-3 Evaluation of the management About IGT - Anti-Corruption Compliance and Ethics Policy; approach Whistleblower Policy; Regulatory Framework and Recent Regulatory Changes - p. 16; p. 17; p. 19 GRI 415: Public Policy 2016 415-1 Political contributions Please refer to UK Annual Report 2018 - p. 62
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ENVIRONMENTAL IMPACT
MATERIALS GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141
103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23
103-3 Evaluation of the management Caring for the Environment - Approach approach and Commitment; Materials Consumption - p. 129; p. 131 GRI 301: Materials 2016 301-1 Materials used by weight or volume Caring for the Environment - Materials Consumption - p. 131
WATER GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Caring for the Environment - Approach approach and Commitment; Water - p. 129; p. 138 GRI 303: Water 2016 303-1 Water withdrawal by source Caring for the Environment - Water - p. 138
EFFLUENTS AND WASTE GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Caring for the Environment - Approach and approach Commitment; Emissions; Waste - p. 129; p. 135; p. 136
GRI 306: Effluents 306-2 Waste by type and disposal method Caring for the Environment - Waste - p. 136 and Waste 2016
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CLIMATE CHANGE
ENERGY GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Caring for the Environment - Approach approach and Commitment; Energy Consumption - p. 129; p. 133 GRI 302: Energy 2016 302-1 Energy consumption within the organization Caring for the Environment - Approach and Commitment; Energy Consumption - p. 133 302-4 Reduction of energy consumption Caring for the Environment - Energy Consumption - p. 133
EMISSIONS GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Caring for the Environment - Approach approach and Commitment; Emissions - p. 129; p. 135
GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions Caring for the Environment - Emissions - p. 135 305-2 Energy indirect (Scope 2) GHG emissions Caring for the Environment - Emissions - p. 135 305-3 Other indirect (Scope 3) GHG emissions Caring for the Environment - Emissions - p. 135 305-5 Reduction of GHG emissions Caring for the Environment - Emissions - p. 135
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FAIR WORK CONDITIONS
OCCUPATIONAL HEALTH AND SAFETY GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Valuing Our People - Fostering a Positive approach Organizational Climate (Workplace Health and Safety) - p. 93 GRI 403: Occupational 403-2 Types of injury and Appendix - Social KPIs - p. 145 Information unavailable. Health and Safety 2016 rates of injury, occupational diseases, In 2018 Sustainability lost days, and absenteeism, and number Report, health and safety of work-related fatalities data are not gathered for the entire reporting scope because of information system constraints. An integrated system should be active partially in 2019 for some regions, and totally in 2020 worlwide.TALENT
ATTRACTION AND RETENTION
EMPLOYMENT GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Valuing Our People - Fostering a Positive approach Organizational Climate; Positive Employeement Practices - p. 93 GRI 401: Employment 2016 401-1 New employee hires and employee turnover Appendix - Social KPIs - p. 145
TRAINING AND EDUCATION GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23
103-3 Evaluation of the management Valuing Our People - Engaging Our Employees approach (Professional Development) - p. 98 GRI 404: Training 404-1 Average hours of training and Education 2016 per year per employee Appendix - Social KPIs - p. 145
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DIVERSITY AND INCLUSION
DIVERSITY AND EQUAL OPPORTUNITY GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Valuing Our People - Fostering a Positive approach Organizational Climate (Diversity and Inclusion; Equal Employment) - p. 89; p. 92 GRI 405: Diversity 405-1 Diversity of governance bodies and Equal Opportunity and employees Appendix - Social KPIs - p. 145 2016
NON-DISCRIMINATION GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Valuing Our People - Fostering a Positive approach Organizational Climate (Equal Employment) - p. 92 GRI 406: Non-discrimination 2016 406-1 Incidents of discrimination In 2018, a case of discrimination has been found. and corrective actions taken Corrective actions have been taken during the first months of 2019.
PRODUCT SAFETY & QUALITY
CUSTOMER HEALTH AND SAFETY GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management approach Advancing Responsibility - Responsible Gaming - p. 48 GRI 416: Customer 416-1 Assessment of the health All IGT products are certified for design Health and Safety 2016 and safety impacts of product and manufacturing compliance to applicable and service categories environmental, health and safety requirements. 416-2 Incidents of non-compliance During 2018, there were no incidents of non-compliance concerning the health and safety concerning health and safety of products and services. impacts of products and services
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RESPONSIBLE GAMING
MARKETING AND LABELING GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management approach Advancing Responsibility - Responsible Gaming - p. 48 GRI 417: Marketing 417-2 Incidents of non-compliance During 2018, there were no incidents of and Labeling 2016 concerning product and service non-compliance concerning product information and labeling and service information and labeling. 417-3 Incidents of non-compliance During 2018, there were no incidents concerning marketing communications of non-compliance concerning marketing communications.
DATA PRIVACY AND SECURITY
CUSTOMER PRIVACY GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Advancing Responsibility - Protecting People, approach Products, and Processes - p. 39 GRI 418: Customer 418-1 Substantiated complaints concerning Advancing Responsibility - Protecting People, Privacy 2016 breaches of customer privacy and losses Products, and Processes - p. 39 of customer data
CUSTOMER RELATIONS GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Partnering with Our Customers - p. 69 approach Customer satisfaction Results of customer satisfaction Partnering with Our Customers - p. 69
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INNOVATION AND DIGITALIZATION GRI 103: Management 103-1 Explanation of the material topic About IGT - Focusing on Our Stakeholders Approach 2016 and its Boundary (Materiality Analysis) - p. 23 Methodological Note (Identifying material aspects and boundaries) - p. 141 103-2 The management approach About IGT - Focusing on Our Stakeholders and its components (Materiality Analysis) - p. 23 103-3 Evaluation of the management Partnering with Our Customers - p. 69 approach IGT constantly monitors effectiveness of its approach to ensure its research & development investments, as the Company is fully aware that only the development of new products and services can guarantee to mantain the leader position in the gaming business. In the last year, economic resources dedicated to R&D activties have grown more and more.
161 Graphic design and layout Lottomatica
Corporate Graphic Design and Brand Book
Cover pictures and chapter dividers were taken by IGT employees who participated in the 2019 Photo Contest for the Sustainability Report
162