The Timeless Appeal of Scratch Tickets

No. 40 | Spring 2014

The timeless appeal of scratch tickets

Since their introduction 40 years ago, scratch tickets have provided lotteries around the world with a predictable, manageable product to help drive sales growth. Players respond to game design, prize payouts, and retail display, and have proven more than willing to move up the price point ladder as long as the value proposition is there. Licensed brands, experiential prizes, and interactive components provide even more value for players. And in one of the latest developments, a multi- country collaboration in Europe is setting the stage for further innovation. Step up to the dream Contents Instant gratiﬁcation

4–5 Interview with the President This issue includes a feature on how the instant games category has taken off in many parts of the 6–9 Association business world, overtaking terminal games like lotto in terms Selected news from the WLA, its members, of growth rates and in some cases also in terms of and the regional associations. overall sales. The trend was framed by Terri Markle at the EL/WLA marketing seminar in London, 10–12 The World Lottery England, earlier this year, when she concluded that Summit 2014 instant ticket sales had grown significantly over the With preparations for WLS 2014 well underway, past decade, owing in part to the launch of premium we are pleased to present the cast of renowned priced tickets. This is a reminder that innovation is keynote speakers that will be on hand for the for everyone. However, as established by Dan Thwaites at the same London Rome convention. seminar in his presentation, “Innovate or Die”, it is not the same innovation for everyone. 14–24 The lure of scratch tickets Ever popular with players, scratch tickets are a In a world where the emphasis is increasingly put on Internet and mobile plat- perennial success and a sure bet for lotteries. forms, it is refreshing to see that licensed lottery operators are also investing heavily in their instant portfolios – in some cases introducing dozens of new 25–27 The University products and trying out different price points each month. As a number of of Iceland Lottery lotteries have demonstrated, innovation must be mastered across all game cat- Serving higher education in Iceland for more egories and sales channels, with due respect paid to the trust and integrity that than eight decades, the University of Iceland underwrite the success of their operations over the long term. Lottery is moving progressively into the future, innovating for a new generation of players. African lottery operators talked a lot about trust and integrity when they met in Senegal in March for the African Lottery Association’s 16th Congress, 28–31 Responsible gaming themed on security and responsible gaming. It was an ideal opportunity For the second time running, BCLC’s New for us to promote the WLA Responsible Gaming Framework and the WLA Horizons in Responsible Gambling Conference Security Control Standard to our African colleagues. We thank the newly brought together a host of international elected president of ALA, Amadou Samba Kane, and his staff at the host lot- experts on responsible gaming. tery LONASE, for their hospitality and professionalism. We welcome Younès El Mechrafi of MDJS in Morocco, who was elected Secretary General of the 32–34 Sportradar ALA and will represent Africa on the WLA Executive Committee, and we Within five short years Sportradar’s fraud thank the outgoing representative Fofana Issiaka of Côte d’Ivoire for his detection system has identified over loyal service. 1,250 suspicious football matches worldwide, proving its effective in a number of I should also mention the WLA’s financial situation. The net results for 2013 high-profile cases. come to around CHF 200,000 against a budgeted deficit of CHF 171,000. The positive net outcome is due to higher income from the WLA contributor pro- 35–37 ONCE wins royal recognition gram and the WLA seminars, while our overall expenses remained on target. The Spanish Organization for the Blind (ONCE), now in its 75th year of existence, received So we can look forward with confidence to our next key milestone — the 2014 the prestigious Prince of Asturias Award for its World Lottery Summit in Rome in the first week of November — and I thank exemplary work in support of the rights our host lottery Lottomatica for their unflagging support. of the disabled in Spain. As we go to press, we are making the final arrangements for what promises to 38–50 Corporate news be a highly productive business program and a fantastic networking oppor- News from members of the WLA Contributors tunity. WLS 2014 will be a great chance to learn more about the latest trends Program and other WLA Associate Members. and innovations, but also to keep in mind the value of patience, perseverance and planning for the long term. Just remember — Rome wasn’t built in a day! 51 The learning curve News from the WLA training and education I hope to see you there. program.

Jean Jorgensen, WLA Executive Director

WLA magazine | No. 40 | Spring 2014 3 INTERVIEW WITH INTERVIEW WITH THE PRESIDENT PRESIDENT

Celebrating diversity: Lottery leaders prepare to converge on Rome

WLA staff are working around the clock with our host lottery, Lottomatica, to prepare the groundwork for the key fixture in this year’s lottery calendar – the World Lottery Summit 2014. We asked WLA President Jean-Luc Moner-Banet why he thinks Rome will be the ideal setting for lottery professionals all over the world to compare notes, work together, and draw strength from the diversity of the global gaming community.

The slogan for WLS 2014 is “All roads lead to The host for WLS 2014 is Italy’s Lottomatica, ing to organize special evening functions Rome”. In the context of the lottery industry, the world’s largest lottery operator. What par- and other hospitality events, helping to what does that mean to you? ticular strengths does Lottomatica bring to make WLS 2014 as beneficial as possible It’s an expression that is both ancient and the table? to all attending. contemporary. Literally, it’s a reference to Lottomatica and the WLA are combining the famous Roman roads that were con- their respective strengths to organize WLS What can you tell us about the business pro- structed in a star shape radiating out 2014. The venue for the prestigious event gram for WLS 2014? Are there any keynote from the golden milestone (miliarium (November 2-5) is the Rome Cavalieri hotel, speakers or special sessions that you would aureum) erected by the Emperor Caesar with its Mediterranean gardens, outstand- like to highlight? Augustus at the center of a monument in ing views over the city, and of course its We have an attractive line-up of sessions the central Forum of ancient Rome. world-class conference center. Lottomatica’s organized to the highest professional stan- Today, the popular expression is perfect- extensive experience, and its outstand ing dards but on a manageable scale. Key- ly suited to the WLA’s mission. Just as all background of success and professional- note speakers include Luca Cordero di the ancient roads converged on the mili- ism, are valuable assets for WLS 2014, and Montezemolo, Chairman of Ferrari, and arium aureum, staff from all our member I sincerely thank CEO, Marco Sala and his Bertrand Piccard, Chairman and Pilot of organizations are converging on the organization for their energy and engage- Solar Impulse. Dr. Jane McGonigal, same place, pulling in the same direction ment with our activities. world-renowned author and designer of to offer attractive lottery games which re- alternate reality games, will also be join- spect players and serve the interests of These biennial World Lottery Summits would ing us to speak about the intrinsic values the wider community. not be possible without the generous support of gaming and its importance in our soci- of the Contributors. How have they helped eties. The summit will also feature a vari- Why was Rome selected as the host city for with WLS 2014? ety of break-out sessions on different WLS 2014? What special attributes does the All our WLA Platinum and Gold Contri- themes such as game development, re- Eternal City offer delegates? butors provide substantial support for sponsible gaming principles, and sports Rome is one of the most attractive desti- WLA activities, and their sponsorship betting integrity. Many other subjects of nations in the world. The historic capital also makes it possible to organize major major importance for lotteries, such as of the modern world is the ideal setting events such as WLS 2014. They also en- making the most of social media, will be for discussing our challenges, sharing our sure continuity in the relations between addressed in detail. The focus will be on experiences, and gaining inspiration for the supplier industry and member lotter- our strategic vision for the future and the new ideas. This is why we chose Rome as ies, and their major presence at the trade importance of operating games that are the lottery capital for 2014. The Executive show in Rome will make the event even ever more attractive and socially respon- Committee is looking to bring together more dynamic and vibrant. They will also sible. visionary speakers and delegates to inject be taking part in the business program, fresh energy into our lottery community notably in the Contributors’ Forum, What about the social program and network- and make WLS 2014 a truly unforgettable where some of their senior managers will ing opportunities? Are there any events or event. be discussing the key issues for the sector tours during WLS 2014 that you would like to today. The Contributors will also be help- highlight?

4 WLA magazine | No. 40 | Spring 2014 INTERVIEW WITH INTERVIEW WITH THE PRESIDENT PRESIDENT

“WLS 2014 aims to foster active collaboration between the various regional asso ciations and to provide terms of reference for the whole of the lottery and sports betting sector.” – Jean-Luc Moner-Banet –

The summit will be a perfect place for net- major new product announcements from the whole of the lottery and sports betting working. An engaging social program has WLA’s associate members? sector. One priority has been to develop been organized to help provide the right The trade show will cover a range of dis- the business program to make it as rel- setting for networking with peers and col- ciplines and I’m sure there will be plenty evant as possible to the realities on the leagues from all over the world. The festivi- of surprises in store for visitors! New ground in the different regions, each of ties will begin with Lottomatica’s generous technologies will be everywhere. The which has its own history and its own hosting of the opening dinner at the elegant modern exhibition space will accommo- economic, legal and political context. Villa Miani, and will end with the closing date around fifty suppliers, who will have Another key goal of the summit is to en- dinner and party at Rome’s Cinecittà a chance to present their most innovative courage collaboration between member Studios. With a range of other optional ac- products and services in fun and creative lotteries so they can share technologies tivities available, such as an imperial tour of ways. We are expecting more than 1,000 and infrastructures, particularly for inter- Rome, a networking day consisting of an people to attend WLS 2014, so everyone active gaming, which is where the future Italian cooking experience at Eataly, and of interested in coming should register as of our sector lies. Exchanging ideas and course the various events sponsored by the soon as possible. For information on how sharing experiences will always be at the Contributors, delegates can be sure to have to register see the official website at www. heart of everything the WLA does, and a full schedule for the entire four days of the wls2014.com. I am already looking forward to the pas- convention. They will also have the chance sionate discussions that will be a feature to discover one of the most beautiful cities The last two World Lottery Summits – of this summit. in the world. Rome is the world’s biggest Brisbane in 2010 and Montreal in 2012 – open-air museum, with an incalculable were both resounding successes. What steps Looking ahead, is there anything you can tell number of cultural and artistic attrac- are you taking to ensure WLS 2014 will be us about WLS 2016? tions, such as the Capitoline Museums, similarly productive? Preparations for WLS 2016 are already the Vatican, the Borghese Gallery, the The program for WLS 2014 has taken underway and are progressing well. Coliseum, and many more. its lead from earlier summits. WLS 2014 The host lottery will be announced at aims to foster active collaboration be- WLS 2014 – which is one more reason Can you give us any insights about the WLS tween the various regional associations to attend this year’s Summit in Rome! 2014 trade show? Can we expect to see any and to provide terms of reference for the

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New faces on the WLA Executive Committee

Inmaculada García Martinez of Spain and Luis Gama of Uruguay sat on the WLA Executive Committee for the first time at its December 2013 meeting in Versailles, France. Since then, Younès El Mechrafi of Morocco has also joined the Committee as the representative of the African Lottery Association. The WLA looks forward to working with the new members and wishes them all the best in their future endeavors as part of the WLA Executive Committee.

Younès El Mechraﬁ Inmaculada García Martinez Luis Gama Younès El Mechrafi was born in Rabat in Inmaculada García Martinez was appoint- Luis Gama has an extensive background 1965 and studied computer science and ed president of the Spanish state lottery, in public administration, having worked business administration in Lille, France, be- Sociedad Estatal Loterías y Apuestas del for the Uruguayan public service since fore working as a researcher with the French Estado (SELAE), after José Miguel Martínez 1979. From 2006 and 2008 he was advisor national research center CNRS. On return- Martínez stepped down last year. to the State Sanitation Department, and in ing to Morocco, he headed SOMAV, an 2008 he served as a member of a humani- agri-business, before founding a technol- Ms. García has a background in econom- tarian mission that traveled to Peru and ogy company that later provided computer ics and fiscal law. She graduated from the Venezuela. services to government clients including the Autonomous University of Madrid with a Ministry of Finance and the armed forces. In bachelor’s degree in economic science and is Mr. Gama was introduced to the world of 2003, Mr. El Mechrafi was appointed special a member of the Superior Corps of State Tax lotteries and gaming in October 2008 as ad- advisor on new technologies to the Minister Inspectors in Spain. visor to the general director of State casinos of Justice and led an award-winning e-gov- under the aegis of the Uruguayan Ministry ernment program for the Moroccan justice Before joining SELAE, Ms. García served of Economy and Finance. He served there department. In 2006, he returned to the as Minister of Finance of the autonomous as director ad interim in the absence of the private sector as Chief Executive of Archos region of Murcia. At the same time, she incumbent director until his appointment Conseil, a computer services organization held a post as professor at the University of as commercial manager for the same direc- based in Casablanca and part of the ONA Murcia where she taught tax law and cor- torate. Mr. Gama continued in this capacity group, then Morocco’s largest private con- porate tax. until his appointment to his current position glomerate. In November 2009, he was ap- of Director Nacional de Loterias y Quinielas. pointed Managing Director of La Marocaine In 2011, after the town of Lorca suffered Mr. Gama was appointed to this role by the des Jeux et des Sports (MDJS), a state lot- an earthquake, Ms. García was appoint- president of the republic of Uruguay, José tery that finances sport in Morocco. At its ed by the Spanish government to serve Mujica, in February 2012. General Assembly in Dakar in March 2014, as Commissioner of Reconstruction and the African Lottery Association (ALA) elect- Economic Revival for Lorca. At its 14th Congress in October 2013 in ed Younès El Mechrafi Secretary General Panama, CIBELAE appointed a new board of the Association. Following this appoint- In her extensive career, she has also served of directors with Luis Gama as president. ment, Mr. El Mechrafi assumes the posi- as an entrepreneurial counselor and as an Following this appointment, Mr. Gama as- tion of ALA representative on the WLA economic advisor to the administration of sumes the position of CIBELAE representa- Executive Committee. Murcia. tive on the WLA Executive Committee.

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New WLA Members and Associate Members

At its meeting in Versailles, France this past December, the WLA La Lotería del Táchira Executive Committee provisionally accepted one new lottery La Lotería del Táchira was established on member, La Lotería del Táchira of Venezuela, and accepted one February 26, 1926 in the western Venezuelan new associate member, Pro-Lite Inc. of the USA. state of Táchira. Lo cated in Táchira’s capital, San Cristó bal, La Lotería del Táchira offers conventional draw-based games, lotto, and Pro-Lite Inc. keno throughout Venezuela. California-based Pro-Lite Inc. introduced USA. This allows them to deliver optimal LED technology to the US market in 1981, pro ducts at the most competitive price Operating under the aus- and has since won numerous notable in- point. This formula has guaranteed Pro-Lite pices of the National dustry design patents. They are recognized success for more than 32 years. Lottery Com mission as a worldwide leader in LED illuminated of Venezuela, La Lote- signage and electronic scrolling messaging Pro-Lite serves more than a million custom- ría del Tá chira is seen products, due to their technological inno- ers and users worldwide in industries such as as one of the most im- vation, continual design advances, and high- airlines, big box retail, food and beverages, portant institutions of so- quality manu facturing. petroleum, Point of Purchase, transporta- cial welfare in the country. The revenue of La tion, and traffic control. They have also Lotería del Táchira goes in large part to sup- worked extensively with financial institu- port public health, environmental protec- tions, schools and government agencies, such tion, sports, education, and culture in as the US Air Force, the US Navy, and the US Venezuela. Postal Service. Pro-Lite provides their prod- Pro-Lite’s widespread success has been based ucts and services to more than 30 lotteries in The membership of La Lotería del Táchira is on a formula of using the best components North America and the Caribbean. pending ratification by the WLA General from the world’s top suppliers, and design- Meeting on Wednesday, November 5, 2014 ing and manufacturing their products with- For more information visit Pro-Lite’s website in Rome, Italy. in select facilities in Taiwan, China, and the at www.pro-litelottery.com

CIBELAE opens a second ofﬁce in Latin America

As announced at the 14th CIBELAE Congress Norma Gallardo, a colleague and former Ríos; Dr. María Fer reras, Lotería Nacional in October 2013, CIBELAE has opened a Director General of Argentina’s Lotería La Sociedad del Estado; Rodrigo Cigliutti, Lo- branch office in Buenos Aires, Argentina. The Neuquina, who passed away in July 2013. tería de Tierra del Fuego; and Mario Trucco, official opening of the new CIBELAE branch En rique Ucedo, Fernanda Belmonte, and office was celebrated on Tuesday, December Present at the opening were Dr. Felipe Cor- Carlos Stheling from ALEA. 17, 2013. The new facility is located in the of- sunsky, Lotería de Provincia de Buenos fices of Asociación de Loterías, Quinielas y Aires; Hugo Rodríguez, Lotería de Santa Fe; Together with Dr. Cotignola at the CIBELAE Casinos Estatales de Argentina (ALEA). Jorge Payeras, Instituto Seguridad Social de branch office, Ms. Carolina Cabado will be La Pampa; Julio Ledesma, IAFAS de En tre his Executive Assistant. Dr. Nestor Cotignola, Vice President of Lotería de la Provincia de Buenos Aires and Executive Director of ALEA, is now serving as Executive Director of the new CIBELAE Latin American branch office. On behalf of Mr. Jorge Rodriguez, President of ALEA, Dr. Cotignola officially welcomed the attendees Dr. Nestor Cotignola of the opening. Addressing the celebrants, (rightmost), Executive Dr. Cotignola declared the inauguration of Director of CIBELAE’s the new office a historic moment. He credit- new Latin American ed the initiative for a CIBELAE subsidiary in branch ofﬁce, celebrating Latin America to the efforts of former ALEA the ofﬁce opening President, Roberto Lopez. Dr. Cotignola al- with prominent members so used the occasion to pay homage to Ms. of ALEA.

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Delegates and speakers from all over the continent converged on Dakar in March for the 16th Congress of Africa’s regional lottery association. ALA 2014 Africa sets its sights on certiﬁcation

Themed on security and corporate social responsibility, the 16th Congress of the African Lottery Association in Dakar in March was an important milestone for Africa’s regional lottery association. The three-day event in the Senegalese capital was an opportunity for lottery leaders from all over Africa — and further afield — to share their vision for the future and confirm the importance of retaining player confidence by upholding universally recognized standards.

“Security and transparency are key to the critical for the players who place their hope in this respect through their multi-ju- future of African lotteries,” said Amadou in us to know that the games they play are risdictional initiatives,” he said, noting Samba Kane, Managing Director of the organized with all the necessary security their continuing efforts to work together host lottery, LONASE, during the official in place.” across borders and cultures to implement Congress opening ceremony. “With the ad- the ALA’s action plan. He welcomed the vent of new technologies, lotteries have an Sentiments echoed by Senegal’s Budget Association’s work as an illustration of ef- ever more crucial role to play in regulat- Minister, Mouhamadou Makhtar Cissé, fective South-South cooperation and rec- ing gaming activity and helping our citi- who also stressed the role of the ALA in ognized the value of sharing experiences zens to thrive and flourish,” he continued. promoting African integration. “Lottery for lottery organizations throughout the “Lotteries sell hope,” said Mr. Kane. “So it’s companies have already taken the lead continent.

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Outgoing ALA president Nestor Tchissambo The Congress included plenty of network- Makosso from Ivory Coast’s national lottery ing opportunities, including an excursion About the ALA (LONACI) said he was confident that the to historic Gorée Island in Dakar harbor, as Association was successfully expanding its well as various events hosted by members of The African Association of State horizons and attracting increasing interest the supplier community. A trade show was Lotteries (AALE) was created in Dakar from lotteries outside of French-speaking also organized at the Congress venue, the in 1981 to support the exchange of Africa. At the 2014 Congress, South Africa prestigious King Fahd Palace hotel and con- ideas and experience among state- contributed to the business program for the ference center. licensed lotteries. A new organization, first time in the Association’s history, and the African Lottery Association, was licensed lotteries from Liberia and Nigeria Making a difference in Dakar formed in 2013 to build on this 30-year sent representatives to Dakar to attend the Dakar has always played a prominent role legacy of cooperation and knowledge- event. in the life of African lotteries, and the sharing and help to broaden the hori- 16th Congress of the regional association zons of the African lottery community Also speaking at the opening ceremony, was no exception to the rule. During the in the 21st century. The regional orga- WLA President Jean-Luc Moner-Banet not- General Assembly at the end of the Dakar nization currently has nine members: ed that the choice of security and corporate Congress, member lotteries recognized the Benin, Burkina Faso, Congo Brazzaville, social responsibility as the central theme of need to improve governance and intro- Democratic Republic of Congo, Côte the Congress was a clear endorsement by duce new organizational processes to add d’Ivoire, Mali, Niger, Senegal, and Togo. the African regional association of a style of to the ALA’s credibility both within Africa governance that places compliance with rec- and at the international level. The election At the General Assembly in Dakar in ognized standards at the heart of the lottery of Amadou Samba Kane as President and March 2014, Amadou Samba Kane, community’s core values. Younès El Mechrafi as Secretary General of Managing Director of the Senegalese the Association testify to this new impetus National Lottery (LONASE), was elected World-class business program and to the ALA’s determination to make a President of the ALA for a two-year The business program for the Congress in- difference for member lotteries and the play- term. The Association also elected cluded a series of presentations about lot- ing public throughout the continent. Younès El Mechrafi, Managing Director tery security management, moderated by of La Marocaine des Jeux et des Sports Thierry Pujol, Chair of the WLA’s Security At the closing ceremony, the newly elected (MDJS) as ALA Secretary General. and Risk Management Committee. These president thanked members for their confi- The headquarters of the Association included an overview of the WLA’s Security dence and said he was well aware of the scale will now be in Casablanca, Morocco. Control Standards, which are now being up- of the task ahead of him. He said his key dated to reflect the latest changes in the ISO objectives would be to work with the ALA 27001 information security management executive committee to expand member- the critical importance of retaining the con- system standard. Security specialists from ship to include all of Africa’s state-licensed fidence of their customers,” said Amadou La Marocaine des Jeux et des Sports (MDJS) lotteries, and to encourage all members to Samba Kane. “This is why they have chosen and Gidani, operator of the South African seek certification. “Today we can move for- the path of certification — and they can rest lottery, offered delegates practical advice ward with a clear conscience, confident that assured that both the ALA and the WLA are about organizing a certification program our member lotteries are fully aware of the ready and willing to help them in achieving and the steps involved in obtaining certifica- need for a new style of management and of that goal.” tion to the universally recognized WLA security management standards.

Corporate social responsibility was the focus of the second day of the business program, with presenters and moderators from Veikkaus (Finland) and Atlantic Lottery Corporation (Canada). Again, the focus was on providing practical advice about the steps that African lotteries can take to achieve responsible gaming certification, with La Marocaine des Jeux et des Sports (MDJS) as a use case example. MDJS is currently the only African lottery organization accredited to the WLA Responsible Gaming Framework. The practical sessions continued with a presentation by Amadou Samba Kane, Managing Director of the Senegalese national lottery (LONASE), about LONASE’s experience in Left to right: Senegal’s Budget Minister, Mouhamadou Makhtar Cissé; outgoing ALA president achieving ISO 9001 certification. Nestor Tchissambo Makosso (LONACI); and WLA President Jean-Luc Moner-Banet.

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The WLS 2014 business program: Keynote speakers

WLS 2014 is fast approaching. One of the highlights of any WLA biennial convention is its business program, and one of the highlights of any business program is its list of plenary speakers. Here, we introduce the plenary speakers at WLS 2014, giving a brief biography of each speaker, along with a taste of the intended topic of their keynote address.

In November 2003, Bertrand Piccard announced a project in cooperation with the École Polytechnique Fédérale de Lausanne for a solar-powered, long-range aircraft named Solar Impulse. After developing the project’s philosophy, outlining its symbolic and political reach, and convincing financial backers, construction of the plane began in 2007. Short test flights began in 2008, and by 2009, Bertrand Piccard had assembled a Bertrand Piccard multi-disciplinary team of 50 specialists Luca Cordero di Montezemolo Adventurer, initiator, from six countries, assisted by about 100 Chairman of Ferrari S.p.A. chairman, and pilot of Solar Impulse outside advisers, to work on Solar Impulse. In 2012, the aircraft made its first interconti- The name Ferrari evokes emotion like few Born into an illustrious Swiss dynasty of ex- nental flight from Morocco to Switzerland. brands, even among non-automobile enthu- plorers and scientists – a dynasty whose Now, Bertrand Piccard, together with his siasts. In recent years, one name has been members have both plumbed the depths of business partner André Borschberg, is get- synonymous with the luxury sports cars the oceans and soared to the edges of space ting ready for the grandest challenge of all: brand: that of Ferrari’s chairman, Luca – Bertrand Piccard seems predestined to to attempt the first round-the-world solar- Cordero di Montezemolo. perpetuate one of the greatest family adven- powered flight in 2015. tures of the 20th century. Psychiatrist, aero- Luca Cordero di Montezemolo has been naut, and lecturer, chairman of the Winds of Initiator, chairman, and pilot of Solar chairman of Ferrari S.p.A. since November Hope humanitarian foundation and good- Impulse, Bertrand Piccard seeks to link sci- 1991. Born in Bologna (Italy), he graduated will ambassador for the United Nations, he ence with adventure, technological innova- in law from the University of Rome in 1971, is passionate about today’s great human tion, entrepreneurial expertise, and passion, later specializing in international commer- challenges. in a profound demonstration of humanity’s cial law at Columbia University in New pioneering spirit, long-term vision, and in- York. He joined Ferrari in 1973 as assistant A pioneer of ultralight flying in the 1970s, nate desire to explore new horizons. At WLS to Enzo Ferrari, and was the company’s an airplane and glider pilot, Bertrand 2014, Bertrand Piccard will speak on the sporting director from 1974 to 1975. His in- Piccard completed the first ever non-stop theme of adventure as an ‘extra-ordinary’ volvement with the team continued through balloon flight circumnavigation of the deed, something that pushes us outside our to 1977, during which time Ferrari won two globe in 1999. In a flight that was the lon- normal way of thinking and behaving, and Formula 1 Drivers’ World Championships gest in terms of duration and distance in into a state where we gather our inner re- with Niki Lauda (1975 and 1977). the history of aviation, Bertrand Piccard sources and follow our personal path of Subsequently, he was appointed director of travelled 45,755 km in just under 20 days. growth to the destiny that awaits us. external relations for the Fiat Group. Among other awards, he received the Harmon Trophy for an outstanding feat of aeronautics in recognition of this accom- plishment.

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In 1981, Mr. Montezemolo took up the post Law, lecturing in ethics and social responsibil- of CEO at Itedi S.p.A., the Fiat Group’s pub- ity. In addition, she has taught corporate gov- lishing division, whose titles include La ernance at SAICSA, the Singapore Association Stampa, the Italian newspaper. In 1984, he of the Institute of Chartered Secretaries and took over at the helm of Cinzano Inter na- Administrators. Ms. Lyon has also been an tional S.p.A. and also organized the Azzurra elected member of the Stakeholder Council of challenge, Italy’s first foray into the America’s the Global Reporting Initiative, a leading orga- Cup. From 1985 to 1990 he devoted himself Erin Lyon nization in the field of sustainability. to football as general director of the organiz- Executive Director, CSR Asia ing committee of Italia ’90, the taskforce Ms. Lyon was a founder and shareholder in charged with organizing Italy’s hosting of Erin Lyon is an executive director of CSR Responsible Research, a boutique Environ- the 1990 FIFA World Cup finals. At the end Asia, a leading provider of advisory, research, ment, Social and Governance (ESG) analysis of the 1990 FIFA World Cup, Mr. Monte- and training services on sustainable business firm, sold in 2012 to Sustainalytics. Her key- zemolo took over as CEO of RCS Video, be- practices in Asia. A lawyer by training, Erin note at WLS 2014, which is titled “The devel- fore making the move back to Ferrari in Lyon has worked for over seven years in Asia, opment of Corporate Social Responsibility in November 1991. advising a wide range of clients on Corporate Asia over the last decade – the good, the bad, Social Responsibility (CSR). and the ugly”, will examine a decade of re- Subsequent to his appointment as chairman of sponsible business in Asia. After surveying Ferrari in 1991, Mr. Montezemolo has held a A qualified solicitor in England and Wales, what has happened from 2004 to 2014, Ms. number of other distinguished positions. Erin Lyon trained with and worked for Lyon will look to the future, positing the pro- Between 1997 and March 2005, he was also Freshfields Bruckhaus Deringer, the interna- vocative question: are we are moving from a chairman of Maserati S.p.A. From 2001 to tional law firm. Over the course of her career, period of Corporate Social Responsibility 2004, he chaired the Italian Federation of she has advised a wide variety of clients, in- into one of Inclusive Business? Newspaper Publishers (FIEG). Between 2004 cluding Shell, HP, Dell, DHL, Bursa Malaysia and 2008, Mr. Montezemolo also held the post (the Malaysia stock exchange), Asia Pacific of president of Confindustria, the Italian em- Breweries, CDL, and Oxfam, on projects rang- ployers’ federation. From 2004 to 2010, he was ing from CSR disclosure, stakeholder enga- chairman of the Fiat Group. Since July 2009, gement, and commu nity investment, through he has been chairman of Telethon, an Italian to ISO 26000 and sustain able supply chains. foundation that raises funds for research into muscular dystrophy. In 2010, he founded With a strong in terest in the deve lop ment of Future Italy, a think-tank promoting civil and CSR in Asia, Ms. Lyon is working with orga- political debate on the future of Italy. A nizations to assess the changing regulations Cavaliere del Lavoro and a Commandeur de and voluntary agreements that are develop- la Légion d’Honneur, Mr. Montezemolo also ing in Asia, and the impact these have on Caroline de Fontenay sits on the boards of directors of several other operations. She also focuses on the develop- Google, Head of Brand Activation for important Italian and foreign organizations. ment of CSR disclosure in Asia. France, Italy, and Spain

Mr. Montezemolo intends to speak on the As well as advising companies and other orga- Caroline de Fontenay provides digital media twin topics of branding and marketing at nizations, Erin Lyon has been an adjunct at the recommendations about branding to large WLS 2014. Singapore Management University School of advertisers in France, Italy, and Spain. She

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has worked in media and marketing for al team that competed in the futsal World She is the New York Times bestselling au- about 20 years, including 10 years in total Championships in Brazil in 1986, he was in- thor of Reality is Broken: Why Games Make spent in the lottery and gaming industries. ducted into the Canottieri Futsal Cup hall of Us Better and How They Can Change the She has been with Google since 2012, man- fame in 2007. World – and is the inventor and co-founder aging a team of YouTube specialists dedicat- of SuperBetter, a game that has helped more ed to helping large advertisers better build After graduating from university in eco- than 200,000 players tackle real-life health their brands on YouTube and social media. nomics and commerce, he moved into busi- challenges such as depression, anxiety, ness and sports management. In his career chronic pain, and traumatic brain injury. She began her career in marketing at Nestlé as an entrepreneur, Giovanni Malagò has France in 1995, learning to develop and launch been a member of the board of directors of Jane McGonigal has created and deployed new products. After joining La Française des several important companies and organiza- award-winning games in more than 30 coun- Jeux in 2001, she helped realize the Euro- tions, including UniCredit Banca di Roma. tries on six continents. She has served as the Millions trans-national lottery in cooperation Since 2007 he has been an advisor, for Italy, director of games research and development at with the UK National Lottery and Spain’s to HSBC, the multi-national banking and fi- the Institute for the Future, a non-profit re- Sociedad Estatal Loterías y Apuestas del nancial services company. In 2009, he be- search group in Palo Alto, California. Her re- Estado (SELAE). In 2008, she joined Eurosport came a member of the Committee of Experts search, which merges into future forecasting, & Grou pe TF1 as director of marketing, the Made in Italy – Ministry of Economic focuses on how games are transforming the first employee of a newly created startup in on- Development. His current business roles in- way we lead our real lives, and how they can be line betting and gaming. There, she oversaw clude positions as CEO of Sa.Mo.Car S.p.A., used to increase our resilience and well-being. the launch of the company’s platform in the the Italian luxury car dealership, and CEO of As a futurist, her work has been featured in UK (June 2009, nine months from inception) Samofin S.p.A. The Economist, Vanity Fair, The New Yorker, and France (in June 2010, in time for the 2010 O(prah) Magazine, Fast Company, The New FIFA World Cup). She joined Google in 2012 In his capacity as sports manager, Mr. York Times Science section, and more. to lead a team of digital branding specialists, Malagò has been deeply connected with with a focus on YouTube and social media the sports movement. In 1997, he became Jane McGonigal has a Ph.D. from the platforms in France, Italy, and Spain. president of the Circolo Canottieri Aniene University of California at Berkeley in perfor- (the Aniene Rowing Club), one of the most mance studies, and has consulted and devel- Thanks to her experience in the lottery indus- important multi-sport clubs in Italy. He oped internal game workshops for more than try as well as her expertise in digital advertis- was chairman of the organizing committee a dozen Fortune 500 and Global 500 ing, Ms. De Fontenay is uniquely placed to of the 13th FINA World Championships Companies, including Intel, Nike, Disney, assist lotteries in better building their brands Rome 2009, and a member of the organiz- McDonalds, Accenture, Microsoft, and on YouTube. The theme of her talk at WLS ing committee of the World Volleyball Nintendo. As a speaker, Dr. McGonigal has 2014 will be Google innovations, and how Championship 2010. Elected as a member appeared at the World Economic Forum, you can better build your brand on YouTube. of the executive committee of CONI in TED and the New Yorker Conference, and 2000, he was awarded the “Stella d’Oro” by keynoted SXSW Interactive, the Game CONI in 2002 for his services to sport in Developers Conference, the Idea Festival, the Italy. He became president of CONI on National Association of Broadcasters, the February 9, 2013. Mr. Malagò intends to Web 2.0 Summit, UX Week, Webstock, and address a range of sports related topics in more. At WLS 2014, she will speak on the fu- his plenary session, including sports bet- ture of gaming. Focusing on recent discover- ting and the integrity of sport. ies in the neuroscience of digital games, Ms. McGonigal will highlight in particular how game designers have figured out how to “hack” the happiness and reward centers of the brain, encouraging players in their enjoy- Giovanni Malagò ment of games, and why this is good for us all. Chairman of the Italian National Olympic Committee And much more! In addition to the keynote sessions, WLS Giovanni Malagò is an entrepreneur, sports 2014 will feature 9 parallel sessions covering manager, and former futsal (5-a-side foot- topics ranging from traditional draw-based ball) player. Since early 2013, he has been games and instant tickets through to the latest president of CONI, the Italian National Jane McGonigal innovations in social media and online gam- Olympic Committee. Game designer and author of Reality is Broken ing. WLS 2014 will also feature the popular lotteries’ pep-talk, first introduced at WLS An avid player of futsal from his youth, Jane McGonigal, Ph.D., is a world-renowned 2012, the Platinum Contributor session, fea- Giovanni Malagò won three Italian futsal designer of alternate reality games – where turing C-level executives from GTECH, championships with Rome RCB and four real-life activities are reframed as games to Jumbo Interactive, INTRALOT, and Scientific Italian cups. A member of the Italian nation- improve real lives and solve real problems. Games, and much, much more!

12 WLA magazine | No. 40 | Spring 2014 Your Internet Partner

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their way Scratching to success

Lotteries around the world rely on scratch tickets to provide a predictable, manageable product to help drive sales growth. They offer the advantage of having a myriad of variables that are all under lottery control, from game design and price points to inventory management and retail distribution.

By some estimates, scratch tickets account duction of higher price points, an increase their tickets and each game builds a loyal for about €56 billion of total lottery sales in the range of games, the introduction of a player base.” worldwide. About half of that comes from market-leading supply chain and changes to the well-developed American market, which the number of facings in retail,” said Head of In other jurisdictions, lotteries might intro- across the board has excelled in making the Instants Martyn Baxter. duce 60, 70 or more games in a year with the most of the instant product. Among indi- goal of constantly keeping games fresh. After vidual lotteries, the world leader is Italy’s He echoed O’Connell’s sentiments about the all, instant tickets give lotteries a chance to Lottomatica, with €9.6 billion in instant importance of the instant product. Instant experiment, putting them in control when sales last year, followed by La Française des games play a key role in Camelot’s long-term other games rely on the luck of the draw. Jeux with almost €5.6 billion in instant sales. strategy of “offering players an enhanced and These are staggering numbers for a product regularly refreshed range of games with differ- Maximizing retail partnerships which is, at its essence, a piece of paper with ent themes, prize levels and price points to ap- Instant games also put the retailer into the pretty images on it. But what a piece of pa- peal to all tastes,tastes, and more ways lottery business, noted Jim Kennedy, per it is! toto playplay to better suitsu people’s Executive Vice President and Chief Executive, changingchanging lifestyleslifestyles andan shopping Lottery Group, for Scientific Games. “The ba- Keeping it fresh habits.”habits.” To that end,end, CamelotC in- sic criticism of the instant business is that it “The scratch product is the sizzle when there troducestroduces betbetweenween 353 and 40 has a lower percentage margin [than termi- is not a big jackpot,” said Cynthia O’Connell, scratch nal-based games]. In order to have a healthy Secretary of the Florida Lottery, which has tickets instant business, you have to have a better beenbeen oneo of the fastest- a year. product for the consumer, and a better prod- growinggr American uct for the consumer means more prizes, lotteries in recent There are almost as many philosophies better positioning and better category man- years, due in no about how to best manage instant tickets as agement.” small part to de- there are lotteries. While there are a number velopments in of best practices out there, what will work in And with a better product, one that comes its instant pro- individual jurisdictions varies widely due to from really understanding what drives play- gram. “[Lotto] resources, legislation, management tech- ers to purchase, retailers make money on jackpots are more niques and even cultures. lottery – not only in terms of lottery sales, frequentf than they but also considering additional store traffic. were, but they cannot be counted on, so the “When the lottery becomes a vital part of a scratch portfolio has to be vibrant, active retailer’s economics of business, it takes a and engag ing, and must change often in or- front and center position,” added Kennedy. der to keep the product fresh.” “Lottery gets better placement, and clerks and sellers are more focused on selling lot- The U.K. National Lottery is another that has For example, the Massachusetts Lottery, tery. As a result, it really is the instant game seen great success in its instant game portfolio where the modern secure instant ticket got that puts the retailers into a commercial recently. Operated by Camelot, the lottery’s its start 40 years ago, is often cited as one partnership with the lottery.” instant sales (includ ing scratch tickets and of the best in the world when it comes to online instant win the games. Its model consists of fewer That partnership in action has really impact- games) grew 20 per- games with larger print runs than the “aver- ed the Florida Lottery in a most favorable cent annually in both age” lottery, which supports a tremendous way. Florida led the American lottery indus- fiscal 2012 and 2013, prize structure and favorable prize pay- try in fiscal 2013 in terms of percentage reach ing £2,062 mil- outs. “It sounds like a simple mix,” said growth in traditional sales. Total sales grew lion. “Our recent sales Executive Director Beth Bresnahan. “We 13 percent year-over-year to top US$5 bil- success has been introduce only 29 to 31 new games a year, lion for the first time, while instant sales of driven by the intro- so we create a following – players find US$3 billion were up 18 percent. That suc-

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cess came in part from a new brand, launched in early 2013, which revitalized the entire culture of the organization. But it also came from a continuation down the path of really focusing on its instant product, which continues to set records for weekly sales.

“It’s not magic,” said O’Connell. “It’s just con- centrating on the fundamentals, really div- ing down on how to improve organic growth.” For the instant category, it meant ensuring that retailers activate their ticket packs quickly, most within 48 to 64 hours, so that the lottery realizes the sales as soon as possible. Auto-replenishment is another important feature, which allows for automatic shipment of new ticket stock based on retailers’ sales rates. Plan-o-grams, which visually Some of Camelot’s define the optimal placement of scratch tick- online instant ets at retail, have been quite successful. The win games mirror lottery is also using vending machines to successful paper reach new outlets – there are about 1,500 tickets available ITVMs with only scratch tickets and another at retail, like 500 full-service machines that sell scratch £100,000 PURPLE. tickets and the lottery’s major terminal games. “That’s making a difference for us – it’s giving us a larger footprint. It’s very difficult to expand retailers because there are only so many retailers out there.”

Of course it’s also about having a great product and providing support for that product. Florida has concentrated on developing games with consistent play styles that offer great prize structures including experiential prizes not available elsewhere. It puts advertising dollars behind every major scratch game rollout. So it has all come together. “Advertising support, time of launches, great inventory management and distribution, and that high public confidence rating of the Florida Lottery by consumers in Florida – over 70 percent – that’s what’s helping our sales,” said O’Connell.

Florida has been successful because there has been “a very sustained and systemic approach to category management all the way from the design through the supply chain, and to the retailers as commercial partners,” said Kennedy, whose Scientific Games works closely with the Florida Lottery. “Florida is a great example of how we try to minimize the amount of the retailer’s burden by using really tight retail-specific just-in-time inventory management. That focus on the supply chain, combined with a good product, mitigates a lot of pain. And the better product you have, the less of a burden it becomes for retailers.”

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Cynthia O’Connell, As well as good products, “advertising support, Secretary time of launches, great inventory management and of the Florida distribution, and a high public confidence rating are all Lottery helping our sales.” Cynthia O’Connell, Secretary of the Florida Lottery

Optimizing price points As for the upper limit of price points – the in- pansion of the retailer base as the low-hang- and payouts dustry probably hasn’t gotten there yet. In the ing fruit. While that also may vary by Opinions may vary about just what consti- United States, the Texas Lottery has had a jurisdiction, depending on the degree of re- tutes a good scratch ticket. Certainly ticket great deal of success with US$50 instant tail penetration, successful lotteries are design and quality play a role, as do themes games. Texas – with US$3.2 billion in instant finding ways to reach new retail outlets, in- and play styles. But there’s no doubt that ris- sales in fiscal 2013 – now introduces some 70 cluding non-traditional retailers. One way is ing price points and prize payouts have been games per year and releases a new US$50 through vending machines, such as those the primary drivers behind scratch ticket game every 12 to 18 months. used by the Florida Lottery. sales growth over the past decade or more. Lotteries have moved up the scale, and gen- Executive Director Gary Grief explained Another path is being taken in the U.K. erally speaking higher price points come that there was a lot of focus group research Twenty percent growth in instant sales two with higher payouts – more than 81 percent when the US$50 price point was first consid- years running is a tough act to follow, but for a few select games. ered. Players already choosing US$20 games Camelot has ambitious plans to grow its didn’t have a problem with spending US$50 business by further increasing the number of But that’s not always the case. Part of Camelot’s on a ticket, as long as there was a much bet- retail locations that sell scratch tickets. recent success, noted Baxter, is indeed an ter value proposition on the higher-priced Camelot currently sells the games in nearly overall increase in payouts (from an average ticket. Accordingly, these games in Texas 37,000 full-service retailers across the U.K., of about 64 percent to 66 percent) , but with have a US$7.5 million top prize and a high and is in the process of adding 10,000 or an emphasis on the lower price points in- prize payout percentage. more locations which will sell only scratch stead of the higher ones. This strategy was tickets. designed “to help drive further sales growth, The US$50 games are and it has been focused at the lower price displayed with other These new scratch ticket-only outlets will in- points to drive player penetration, win belief games at retail but are clude traditional lottery locations, such as and trade-up opportunities.” He added that not supported with convenience stores and independent shops, Camelot is still in the early stages of evaluat- any specific advertis- and Camelot is also looking at non-tradi- ing this program and continues to review ing. “These games sup- tional locations such as cafes and greeting the impacts. port themselves,” said card shops, according to Baxter. Grief. “I believe they Every lottery’s goal is to provide revenues are filling a niche with “These new standalone scratch terminals are for good causes, and while higher price the players who can afford them and those really good news for independent retailers points and higher price points drive sales, who are seeking the prizes which are being and smaller stores in general, because they there’s a balancing act to ensure that bot- offered in the US$50 game prize structures.” will allow those outlets that might not gener- tom-line revenues also increase. “Our ate enough revenue or footfall to qualify for a US$10 and US$20 scratch games help drive Texas also looked into player attitudes about full National Lottery terminal the chance to sales and payouts, because of their more fa- a US$100 game, and the responses were fa- have The National Lottery in-store.” vorable odds, but lotteries have to balance vorable. However, since sales are strong at all what is expected in terminal game sales price points, Grief said there were no plans The new terminals are not vending machines, with what they can pay out in scratch at present to move in that direction. but include a customer-facing screen and the games,” said Florida’s O’Connell. “It be- ability to scan tickets to determine winners. comes a dynamic marketing model. How Growth through distribution can we get to the maximum transfer amount While increasing price points certainly drive By adding thousands of additional outlets, [for our beneficiaries], while at the same sales, as long as there is a prize structure that Camelot hopes to satisfy untapped demand time not diminishing anything in the prod- provides value at those higher prices, there is for the tickets and provide millions in addi- uct mix? It is quite a process that every lot- a limit to how often a lottery can go to that tional funding for the National Lottery’s tery director has to go through.” well. Many in the industry consider an ex- good causes.

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The Texas Lottery has had considerable success with US$50 scratch tickets, which offer a top prize of US$7.5 million and an average prize payout percentage of 78 percent.

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Gary Grief, Executive With the Texas Lottery’s new contract model for instant Director of the games, “the ticket printing vendors are effectively Texas Lottery ‘competing’ for our business every day, rather than only during the RFP process.” Gary Grief, Executive Director of the Texas Lottery

A novel contract approach Camelot hopes to keep instant Lotteries around the world always seek to sales growing in the U.K. responsibly grow sales with the goal of in- by reaching new retail creasing the net revenue to their benefi- locations through the use ciaries. While good products and of standalone scratchcard expanded distribution can drive sales, terminals like this one. the cost part of the equation also comes into play. After all, lotteries must pay the large number of individu- their vendor partners for the physical al games introduced each tickets and for any requested services. year. He acknowledged that “the economics for the ticket Many lotteries have contracts with multi- printing vendors would likely ple printers, often with a primary contrac- not work for smaller jurisdic- tor and one or more secondary contractors tions with much less volume.” that can provide specialty games. In this He added that all three compa- way a lottery can have access to licensed nies have performed in “excellent fashion” products or tickets with unique attributes since the contract was executed in 2012. that will work well in its own market. Creating the multi-channel The Texas Lottery has taken another ap- instant game proach. In 2012, new contracts were signed The appeal of instant games has moved be- with Scientific Games, GTECH Printed yond paper tickets and into the online realm Products and Pollard Banknote, awarding in many jurisdictions. Camelot has Europe’s about one-third of the lottery’s ticket business largest online lottery business in terms of to each company. The six-year contracts had sales, thanks in no small part to online in- common pricing, excluding certain licensed stant win games, which are available to play- or proprietary games, and at the end of each ers who are physically located in the U.K. year, the lottery is able to reallocate the num- and Isle of Man. ber of games printed by each vendor based on various performance goals such as qual- There are around 35 games available online ity, security, customer responsiveness, and at any given time, compared to about 16 pa- innovation. “In taking this approach, the per scratch tickets in stores. Some are identi- ticket printing vendors are effectively ‘com- cal or very similar to a paper game, but the peting’ for our business every day, rather online environment allows for a wider range than only during the RFP process,” ex- of games. Given the unique aspects of the plained Grief. “The vendors must con- online world, price points are typically low- tinually bring their best ideas forward er online (ranging from 25p to £5 online, and propose their latest innovations, compared to £1 to £10 on scratch tickets), knowing that any slippage in perfor- with higher average payouts (71 percent mance could result in fewer games online compared to about 66 percent). being printed by them the next year.” Still, the ubiquitous paper scratch ticket This model has been successful remains the bread and butter for many of in Texas, said Grief, because of its the world’s lotteries. Sales have remained US$3.2 billion annual ticket sales and strong in most jurisdictions while terminal-

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based games often lag. Many lotteries have already taken advantage of the sales growth It all started with a scratch provided by higher price points and payouts, Innovator John Koza created the math but that doesn’t mean the end of opportunity. “Just by good execution there are so many behind the scratch ticket things with which you can grow the instant ticket business,” said Paul Stelmaszyk, Senior Forty years ago, the Director and General Manager of GTECH world’s first secure lottery Printed Products. scratch ticket was introduced in Massachusetts, Massachusetts’ Bresnahan agrees – her lot- home to one of just nine tery is probably at the maximum achievable American lotteries oper- payout percentage (greater than 72 percent ating at the time. The across all products) so it needs to find other new product launched ways to drive growth. “We’ll be really look- what would become a ing at our existing portfolio to see what areas sustainable driver of sig- we can improve upon – making the games nificant growth for the more attractive, making the play styles more lottery industry. Today, exciting and adding bonus features, for ex- instant games generate ample.” US$75 billion in sales for lotteries around the John Koza (on right) with Daniel Because individual lotteries are at various world – by conservative Bower at Scientiﬁc Games’ stages of the product life cycle, globally estimates – and are re- 20th anniversary in 1993. At right, there’s a lot of room to grow sales, noted sponsible for continued the very ﬁrst secure scratch ticket. Stelmaszyk. Everything from price points industry growth while and payouts to inventory management and other game categories often lag. validation systems are tools that may be old news in some markets but innovations in The technical genius behind the innovation was John Koza, a others. “That’s why organizations such as the computer scientist who was clearly ahead of his time, having WLA are extremely important – they pro- cobbled together his own rudimentary “personal computer” vide a means to freely share information and as a high-school student in the 1950s. While studying for his best practices.” Ph.D., he worked for J&H International, a company specializing in rub-off games for supermarkets, calculating game Indeed, information is critical for future probabilities. Shortly after he received his doctorate, the company growth. The most advanced lotteries with the went bankrupt. Bad news for them, good news for Koza and a fellow J&H employee, latest inventory management systems prob- Daniel Bower. The two men were convinced the scratch-off concept had a future in the ably aren’t taking full advantage of the data lottery industry, which at the time consisted primarily of weekly raffle-type games. those systems are capturing. “Even in very Koza and Bower thought lotteries should offer games with instant gratification – prizes mature, successful lotteries around the world, that players could realize right away, without having to wait for periodic drawings. So there are an awful lot of data mining oppor- with Koza’s mathematical prowess, which ensured that the games would be complete- tunities to help them continue to grow by ly random, and Bower’s marketing expertise, which made the games appealing to the isolating non-obvious relationships,” said public, the scratch ticket was born. Koza and Bower formed a new company in 1973, Stelmaszyk. For example, an individual called Scientific Games, and proceeded to trumpet the features of their new product game’s sales combined with store penetration to American lotteries. First to bite was the Massachusetts Lottery, which introduced the data might give a completely unexpected pic- modern scratch ticket to the public in May 1974. Of course, today that lottery is recog- ture of how successful that game really is. nized as a global leader with one of the best instant ticket programs in the world.

There are also opportunities to grow the Koza stayed with Scientific Games until 1987, serving as Chairman and Chief Executive player base by finding ways to move players Officer. Upon leaving the company, he turned his intellectual focus to genetic algo- from one type of lottery product to another, rithms and artificial intelligence, inventing genetic programming, a way to solve com- or to introduce them to alternative channels plex engineering problems with almost no human guidance. such as online and mobile play, where available. Lotteries are using licensed games to Certainly the lottery industry is blessed to have such an innovator in its past. And introduce more consumers to well-known Koza knew what he had set in motion. In an interview with scratchcards.org later in brands, some that may already be in the in- his career, the computer scientist marveled at the revenues lotteries have raised for teractive space. “People buy these because good causes around the world. And because instant gratification “is bound to be ap- they are useful and relevant to their life. If pealing,” it comes as no surprise that his invention plays an increasingly important you can make it easier for them to cross over, role in the industry to this day. that’s always a good thing.”

WLA magazine | No. 40 | Spring 2014 19 INSIGHT INSIGHTINSIGHT Adding value to the instant ticket experience

Licensed products have long been a way to provide extra value for players, often including unique experiential prizes related to the brands. And second-chance opportunities have moved beyond the basics and now include such things as interactive game-playing and progressive jackpots.

There is no limit to imagination when it to provide a tie-in to a well-known brand, “Licensed products are important because comes to instant games, but in the end they often providing unique experiential prizes they not only appeal to people who al- are still a paper ticket – even with extended that are unavailable to most consumers. Even ready play our games, but also to people play games, once you scratch, that’s all there in the absence of a brand, lotteries may use who might not play our games but who are is. So it’s not surprising that lotteries and their second-chance drawings to give players an- interested in the licensed property,” said vendor partners have come up with numer- other chance at a prize, or in some cases, just Camelot’s Head of Instants Martyn Baxter. ous ways to add value to that basic scratch a chance to play an interactive game for fun The U.K. National Lottery operator has ticket. In many cases, licensed games are used on the Web or on mobile devices. used a number of licensed games, includ-

The popular online casual game Bejeweled has become a successful Licensed brands can have a local ﬂair, such as the Guy Harvey licensed lottery game from GTECH, helping attract younger players. series of scratch tickets produced by the Florida Lottery.

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ing film-themed games such as James Bond started Dec. 30,” said Executive Director Local content and Indiana Jones, popular online game May Scheve Reardon. “Players really like the Not all licensed games are well-known na- brands such as Bejeweled, and the timeless interactive second chance to win cash prizes tional or international brands. Regional MONOPOLY. instantly and the chance to get entries into interest is a strong determinant of success- the monthly progressive jackpot.” ful lottery products. The Florida Lottery, MONOPOLY is in fact the most success- for example, created a Guy Harvey series ful brand in the global lottery industry, Some licensed properties may help attract of licensed scratch tickets. “Guy Harvey and Scientific Games has held the license young adult players, one of several goals was not on the landscape in the scratch since 2003. Since 2006, there have been lotteries might have in using the games. market until we created it,” said Cynthia over 170 MONOPOLY games launched Because they are usually more expensive O’Connell, Secretary of the Florida Lottery. at retail and they typically perform well to offer, licensed games have to provide ex- Harvey, an acclaimed marine wildlife art- above average. One of the latest iterations – ceptional benefits for the lotteries selling ist, offered unique promotional and sec- MONOPOLY Jackpot – adds a new second- them. “Some of the brands, including very ond-chance opportunities for the Florida chance opportunity that includes an online popular casual games, will hopefully attract market. She noted that the tickets became collector’s game and builds a monthly pro- a much younger demographic for us,” said collector’s items that Harvey would sign. gressive jackpot across several jurisdictions. Amy Morin, GTECH’s Marketing Director “That’s a draw because you are bringing in Several U.S. lotteries are participating in the for Printed Products, citing games like a new demographic of players.” And the ex- game, and a small percentage of sales funds Bejeweled and Plants vs. Zombies, which periential prizes offered through the game the jackpot. have taken off as lottery games in several were things not attainable for the average countries. Licensed products are also used person, like going with Harvey on a fishing The Missouri Lottery is one of those lotter- to drive membership in lotteries’ players’ trip to Panama. ies. “We are very pleased with the success of clubs, which provide a direct link for lotter- our US$5 MONOPOLY Jackpot game that ies to connect with their players. Sometimes the brands are professional or college sports franchises – many lotteries around the world have successful relationships with their local or regional teams. For example, the Massachusetts Lottery has had a great deal of success in its team partnerships with the Boston Red Sox, the Boston Bruins, the Boston Celtics and the New England Patriots. Second chance prizes have included game experiences, player meet-and-greets and team travel getaways. “We are really trying to find innovative ways to attract players with prizes and experiences that can’t be obtained elsewhere,” said lottery Executive Director Beth Bresnahan.

Gateway to the Internet Interactive and second chance games offer another big benefit to lotteries, especially those which cannot actively sell tickets online. Interactive games tied to scratch tickets are a great way for lotteries to attract consumers already in the online space.

Not surprisingly, these types of second- chance opportunities have really taken off for American lotteries in particular, where instant games dominate the landscape. Indeed, scratch tickets accounted for 60 percent of traditional U.S. lottery sales in fis- Adding interactive components to games, such as Frogger cal 2013, generating some US$37.5 billion or Cashword from Pollard Banknote, provides additional value for players. in sales.

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MONOPOLY is the most successful brand in the history of the lottery industry, and Scientiﬁc Games has produced more than 170 MONOPOLY lottery games since 2006.

“In the past 18 months to two years, the inter- games have been offered since then, in- Holyfield. “The main thing is that you have active element has really gone to a new level,” cluding the aforementioned Cashword and to give players a quality experience in order said Sina Aiello, Vice President, Marketing, Bingo, plus Wild Time, another core game to compete in the online space.” for Pollard Banknote. “Prior to 2013, most of providing fast-action entertainment. The in- our interactive games, elements and offerings teractive games were tied into the lottery’s And that quality experience is the key to have been attached to licensed games, where player’s club in 2011, providing chances to keeping consumers playing lottery games, it makes a great fit. More recently they have play for points and prizes, and a mobile app driving growth for lotteries and the good migrated to lotteries’ core products.” was introduced in 2012. causes they support. “What is even more valuable than the brand itself is the inter- “iGaming is out there, so having that path- “Our view is that it offers more value and more active experience you create for the player way to the Internet is very important to us,” entertainment to our players,” said Public around that brand,” said Mike Lightman, added Aiello. “It’s an important strategy to Relations Director Jeff Holyfield. “We see this Vice President, Lottery Interactive, for offer products that will help a lottery prepare as an evolution of our operation, because we Scientific Games. “More and more, lotteries their players.” She noted that the Michigan want to be where our players are.” He noted – and more importantly certain segments of Lottery is a perfect example, starting with that the majority of players buy the scratch players – will be looking for games that have free interactive games attached to core tick- games because they simply like the ticket, but those really rich interactive engaging experi- ets like Cashword and Bingo, and moving knows there is a small, but growing, percent- ences to go along with them.” into apps and social games. “They’ve nur- age of players who buy the ticket and then go tured their consumer along this pathway, online for an opportunity to get more value, Indeed, it all boils down to entertainment. and they are ready to go” when Michigan have a little fun and another chance to win. “We all like to say we are in the entertainment launches online lottery products for sale business, so this gives us the opportunity to later this year. Michigan’s experience with interactive offer things that are more entertaining,” said games is helping it learn what players want Chuck Kline, Senior Vice President of MDI Michigan’s first for-fun interactive game was from the online experience, as the lot- Entertainment. “Anything we can do to make tied to the licensed scratch game Dubble tery prepares to launch Internet sales. “We lottery games more entertaining is good for Bubble in June 2010. A number of other have a sense of what our players like,” said the long-term health of our business.”

22 WLA magazine | No. 40 | Spring 2014 INSIGHT INSIGHTINSIGHT With a scratch, borders fall Lotteries are known for their willingness to work together and share information, and for decades multi-jurisdictional lotto games have been an important part of many lotteries’ portfolios. Earlier this year, four European lotteries took that sense of cooperation to a new level with the launch of a common-themed scratch ticket.

There is no doubt that instant tickets provide the most dynamically growing segments,” lotteries with many significant benefits, and said Kálmán Szentpétery, Chairman of the four Central European WLA members have Board and General Manager of Szerencsejáték. come together in a ground-breaking collab- “Instants are one of the most popular prod- oration that launched the Big Four scratch ucts in our portfolio and we are proud to wid- game on March 28. Sazka (Czech Repu- en the palette with this unique game.” blic), Szerencsejáték (Hungary), Totalizator Sportowy (Poland) and TIPOS (Slovakia), Instant games also provide lotteries with man- recognizing that their countries have much ageable expectations – they don’t suffer from in common, developed a scratch ticket that the unpredictable swings in performance ex- would have broad appeal in all four markets. perienced by lotto games, for example. And each of the four lotteries has a world of experi- “We are approaching a breaking moment in ence with instant games, and understands lottery history,” said Wojciech Szpil, Chairman what their customers want in a new game. of the Management Board of Totalizator Sportowy, when the new game was announced. Big Four offers a near-identical design across “I strongly believe that this instant will not all four countries, with similar game structures only scratch borders symbolically but that it and the same number of prize levels. The ac- will also be a strong impulse for new 21st cen- tual ticket price and prize structure vary by tury products and new cooperation patterns.” country in order to adhere to local legislative requirements, but the overall look and feel of The four countries share historical and cul- the tickets make them stand out as one. They tural backgrounds and their recent econom- are done in rich colors of red and gold with im- ic performance is similar. The four lotteries agery reflecting the region’s royal medieval his- share strong growth in instant ticket sales and robust game portfolios, and have a common mind about what they need to ensure growth: innovation, flexibility and the willingness to consider unusual approaches to satisfy customers’ needs. It seemed a simple Poland Slovakia Czech Republic Hungary conclusion that they should come together to create a special new product that would Population 38,5 M 5,4 M 10,5 M 9,9 M provide the same experience for players in Points of Sales # 13 500 2480 6850 6500 all four countries. The instrument of choice was a scratch ticket. Payout 57,45 % 64 % 60 % 65 % Odds 3,90 3,90 3,88 3,52 “The best area for experimenting was defi- Tickets # 4 000 000 1 000 000 1 000 000 5 000 000 nitely instants: they not only offer the widest range of opportunity by freely choosing the Top prizes (4x) 150 000 PLN 40 000 € 1 000 000 CZK 25 000 000 HUF number of games (play areas) and the materi- Price of BIG FOUR 5 PLN 3 € 50 CZK 500 HUF als, colors and artwork applied, but are also

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Each of the Big Four tickets has a similar look and feel, with luxurious red and gold colors reﬂecting the countries’ royal heritage.

tory. The common appearance allows the four games annually, and last year there were a total games on the market each year. TIPOS ex- lotteries to continue to work together in devel- of 62 games on the market. That variety allows pects to launch 18 games in 2014 – some are oping marketing communications materials. lottery officials to meet the needs of its players new products, while others are core games with popular base games, new and innovative that stay in the market but always receive de- “Big Four is historically the first instant lot- games, extended play games and families of sign changes. Its Big Four game offers four tery in our scratch card portfolio created on games. At PLN 5 (about €1.20), Big Four is a top prizes of €40,000. an international platform in close coopera- premium game at the lottery’s second-highest tion with four lotteries, which gives it a brand price point and is marketed as a special limited Each of the Big Four versions represents the new dimension as well as international cred- edition product – the print run is actually a hard work done by a core group of eight indi- it,” noted Ladislav Kriška, Chairman of the little smaller than is usual for games at this viduals across the four lotteries. They worked Board and General Manager of TIPOS. “I price point. In Poland, there are four top prizes tirelessly from the beginning (the process be- believe it will become another of the many of PLN 150,000 (about €36,000). gan in late 2012), working out details like successful products of our company.” game design and developing marketing com- The Czech Republic has a competitive mar- munications materials to launch the product Each lottery has positioned its Big Four game ket for instant games, with Big Four partici- in the four countries. They continue to share as a premium and limited-edition game. pant Sazka holding about 55 percent of the information for data analysis and bench- market in terms of sales. Market-wide, there marking across their product lines. And they Hungary has the largest print run of the four are a total of about 60 different instant believe that the successful teamwork will be lotteries, with five million tickets. That is typ- games offered each year across four lottery just the first step towards even more complex ical for games at this price point, and companies. Sazka’s portfolio averages about collaboration in the future. Szerencsejáték normally offers 10 to 12 dif- 20 games, with 15 new games introduced ferent instant games annually. Four games each year in a wide range of price points. “I am very glad we have started a successful are permanent fixtures due to their popular- Instant ticket sales growth has been very cooperation with Poland, Slovakia and ity; the rest are new games designed to keep strong over the past two years. One million Hungary – our closest neighbors with whom the palette colorful and attractive, with an Big Four tickets were printed for the Czech we share historic roots and cultural tradi- average of six new games per year. Big Four is market, at a CZK 50 price point (about tions,” said Robert Chvátal, Chairman of the positioned as a premium game at the lottery’s €1.80). Four top prizes of CZK 1 million Board and Chief Executive Officer of Sazka. second-highest of four price points (HUF (€37,000) are available. “The excellent teamwork proved that the 500, or about €1.60). There are four top priz- four lotteries can cooperate successfully and es of HUF 25 million (about €80,000). TIPOS in Slovakia also produced one mil- effectively. We believe we should be looking lion Big Four tickets, at a price point of €3 – at further targets, new challenging opportu- By far the largest population base of the four about the middle range in the lottery’s nities for cooperation. The launch of Big countries is in Poland, which printed four mil- instant ticket portfolio. The smallest of the Four is also confirmation of the large poten- lion Big Four tickets. Totalizator Sportowy in- four countries, Slovakia has been on an up- tial for future collaboration in the lottery troduces on average about 35 new instant ward path in terms of the number of instant business.”

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The University of Iceland Lottery: building a brighter future

Iceland’s longest-established lottery organization recently celebrated its 80th anniversary at a time when lotteries are standing at a crossroads. Bryndís Hrafnkelsdóttir, CEO of the University of Iceland Lottery, talks about the situation today and the direction she would like to see the lottery taking in the years ahead.

pays an annual license fee, which currently The lottery has fared very well during the re- amounts to ISK 150 million (just under 1 cent economic crisis, according to Bryndís: million euros), and its support is widely rec- “The UIL has stayed on course and managed ognized as crucial to the university and to to continue contributing to the university Founded back in 1933, the University of Icelandic society as a whole. just as much as before,” she says. “The UIL Iceland Lottery (UIL) is the oldest operator has funded almost all of the construction in Iceland’s domestic market. Its first draw A diverse product mix cost of the university’s 22 buildings to date was held on March 10, 1934. The lottery has “The UIL is currently authorized to run and ensured maintenance in addition to ac- been at the same headquarters down by the three types of lottery products,” says Bryndís quisitions of research equipment.” lake in Reykjavik city center since 1944 and Hrafnkelsdóttir, who has been CEO since today has a staff of 24 people. Under Iceland’s 2010. “First there is the class lottery, which is Independent funding gaming regulations, separate licenses are the ticket lottery we have been running from “This contribution has been absolutely cru- granted for different types of gaming activi- the very beginning. Then there are scratch cial to the University of Iceland,” Bryndís ties and the proceeds are earmarked for spe- tickets, which were introduced in 1987. And stresses. “In fact the university would never cific community causes. The UIL’s license is finally we have been running Video Lottery have been able to grow without the existence unique in that it covers a range of different Terminals (VLTs) since 1993. With this di- of the UIL. Lottery funding has enabled the game types, some of them offering major verse product mix, we have been able to al- university to flourish on its own terms, with- cash prizes, and its proceeds support the locate considerable sums to fund the out being totally dependent on the govern- construction and maintenance of all of the construction and maintenance of university ment for capital contributions. The license University of Iceland’s buildings. The UIL buildings.” fee the UIL pays is channeled into the uni-

Bryndís Hrafnkelsdóttir has served as CEO of the University of Iceland Lottery since 2010.

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versity community and has been used to buy understanding of the problem. The UIL has Video lotteries are a good example. When much-needed equipment and to fund re- also provided strong support for associa- VLTs were introduced in 1993, access was search.” tions that offer assistance to people grap- immediately restricted and a great deal of pling with gambling problems and addiction, emphasis has been placed on ensuring that Risk management and such as the National Centre of Addiction the ban on children and youths under the responsible gaming research Medicine (SAA). age of 18 using them is fully enforced. VLTs The issue of gambling addiction regularly are still only available in places where the crops up with every kind of money game Partnership to promote minimum age is 18 or 20. Leaflets on re- and lottery, and the UIL has demonstrated responsible gaming sponsible gaming are also available in front solid leadership on these issues and the The UIL has teamed with two other Icelandic of all the video lottery terminals. In addi- promo tion of responsible gaming. “The UIL lotteries (Íslandsspil and Íslenska Getspá) to tion, the UIL has installed an informative has been entrusted with the authorization to run a responsible gaming website, which media window on all of its VLTs to inform run lottery games and we need to use it sen- provides information on responsible gaming and guide customers on responsible gaming sibly,” says Bryndís. “We are fully aware of and, among other things, offers people the and gambling problems. “I don’t know of the obligations placed on us to fulfill our opportunity to assess themselves in an on- any other lottery that uses an information statutory role, which is to generate funds to line test. As a member of European Lotteries window of this kind on its VLTs,” says build up the university. Our commitment to and the World Lottery Association, the UIL Bryndís. corporate social responsibility and respon- also keeps a close eye on what is happening sible gaming behavior is embedded in all of in other countries, particularly in Europe. The importance of our activities. Participation in a lottery is a At the beginning of 2012, the UIL obtained product development leisure activity, which entails the hope of European Lotteries certification for im- Bryndís Hrafnkelsdóttir has no doubt in her winning. Participation in money games will plementing the association’s standards for mind that the future of the UIL will involve therefore always include some level of risk, responsible gaming behavior. The UIL sys- some form of online gaming, but for the which varies according to the specific game tematically emphasizes the code of ethics to time being the lottery has not yet been and the different ways in which individuals be followed in marketing, supporting re- granted the license required to operate over handle it. We are very conscious of that and search and disseminating knowledge and the Internet. “Like with most companies, our role is to research, analyze and keep expertise to customers and employees. product development is vital for the UIL,” people informed about these risks – and to Bryndís tells us. “Radical changes are taking refer them to professional associations if Bryndís believes the UIL has taken equal, or place in this market and most of them are they need help.” in many cases, greater measures than those happening online, particularly through the taken in other Scandinavian and European use of smartphones and other mobile devic- Over the years, the UIL has also given direct countries. “Importantly, these UIL measures es. It’s a very exciting world that offers all financial support to Icelandic research into were not taken as the result of instructions kinds of possibilities. We can sense that gambling problems and addiction. Twelve received from supervisory authorities or there has been a contraction in the use of years ago it commissioned the University of ministries,” she says, “but based on the com- our VLTs and this can naturally be attributed Iceland’s psychology department to conduct pany’s own resolve to perform its function to the rise in online gaming, since people in- research on problem gambling and gam- in the best possible way.” creasingly like to spend their leisure time bling addiction to further knowledge and online.”

The 23 buildings that the University of Iceland Lottery has funded over the years

Aðalbygging 1940 Eirberg 1956 Aragata 9 1963 Neshagi 1966 ÁrnÁ agarðuð r 1969 VR-I 1972 1934

Setberg 19371937 Íþróttahús 1948 Háskólabíó 1961 Hús Raunvísindastofnunar 1966 Lögberg 1972 Aragata 14 1973

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Hopeful of an online future Bryndís believes there will eventually be a consensus on the UIL’s authorization to operate games online, since it’s a logical ex ten- sion of the operator’s existing license. “Hope fully the government will realize that it would be to everyone’s benefit to change this situation,” she continues. “The money that Icelanders are al ready spending on online gaming needs to be channeled back into the Icelandic community to support important pro jects. On top of that it’s easier to promote responsible gaming online than it is on our VLTs, since all players are registered. Another persuasive factor is that Icelanders will be able to play on an Icelandic gaming site that they trust and in the knowledge that the proceeds are going to wor thy national causes in the Icelandic community.”

Iceland’s oldest lottery held its ﬁrst draw exactly 80 years ago. As the country’s longest-serving lottery organization, the University of Iceland Lottery But the growing popularity of the World class lottery. Back then, Icelanders were avid (Happdrætti Háskóla Íslands) has been a Wide Web brings the UIL into direct compe- players of the Danish lottery and the new consistent source of independent university tition with gaming providers based outside class lottery was seen as a good way to make funding for 80 years. Throughout its history, of Iceland. “We are primarily in competition sure that the local community benefitted it has successfully introduced new product with foreign companies offering Icelanders from gaming proceeds. families and stayed abreast of player prefer- foreign money games online,” says Bryndís, ences, remaining on course even in the “and it’s sad to see that the proceeds of that “Now it’s the Internet,” says Bryndís. “The toughest economic times thanks to constant participation are not being channeled into Internet is basically just a distribution me- innovation and a solid commitment to re- the Icelandic community.” dium for current products that presents lots sponsible gaming. As it looks to the future, of other exciting opportunities. We are the UIL fully intends to continue to support Today, the University of Iceland Lottery lagging behind other European countries Iceland’s higher education community stands at a crossroads. In fact, the current since no progress has been made so far. while tapping into the exciting new oppor- situation is not unlike the one that Iceland There is nothing to prevent the authorities tunities of online distribution channels in faced just over 80 years ago when the deci- from issuing licenses for online games with order to stay relevant to the Icelandic play- sion was made to launch the first Icelandic money prizes, if they look into it.” ing public.

VR-II 1975 Oddi 1985 VR-III 1987 Tæknigarður 1988 Nýi garður 1996 Háskólatorg 2007

Læknagarður 1983 Sóltún 1987 Hagi 1991 Askja 2003 Gimli 2007

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New Horizons in Responsible Gambling Conference celebrates a second successful year

With the success of the inaugural event in 2013 setting a high bar for this year’s New Horizons Conference, host BCLC delivered a follow-up conference this past January that surpassed expectations. A diverse group of delegates came together to a world-class venue in Vancouver to hear from experts around the globe. Ninety-five percent of attendees surveyed indicated satisfaction with the experience, with 91% planning to return next year.

Now in its sec- each shining the light on social responsibil- ond year, the ity in the gaming industry. Presentations New Horizons were geared towards specialists – researchers in Responsi- and academics, problem gambling treatment ble Gambling providers, and prevention experts – on the Con ference highlighted the notable devel op- one hand, and gaming operators committed ments that continue to be made in responsible to delivering exceptional and responsible gam bling research and practices around the programming on the other. Education, out- world. It provided delegates the opportunity reach, and responsible marketing were the to engage with professionals, to network in an main themes. industry-focused environment, and to hear a variety of speakers share their experience, Kicking things off research, best practices, and innovations. The event kicked off with lively discussion at a pre-conference workshop, Energy The 2014 conference featured 21 expert Conservation in Gambling Facilities, where speakers and panelists from across the globe, operations managers shared ideas about managing facility sustainability. Delegates were officially welcomed the following morn- ing with an address from the Honorable Michael de Jong, British Columbia’s finance minister. Minister de Jong, who has responsibility for gambling oversight in the jurisdiction, re-affirmed the commitment of the province and BCLC to establish the Center for Gambling Research at the University of British Columbia. The minister then introduced Dr. Luke Clark as the Center’s first director. Dr. Clark comes to the Center from a position as senior lecturer in neuroscience at the University of Cambridge, England.

This year’s conference keynote was expertly delivered by Dr. Jeff French, professor at Brunel University and CEO of Strategic Social Marketing Ltd. His presentation, How to Design and Deliver Social Programs that Influence Behavior, used several illustrated Conference host Paul Smith, Director of Corporate Social Responsibility at BCLC, examples in reviewing contemporary social welcomes delegates to the 2014 New Horizons conference.

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Drs. Alex Blaszczynski of the University of Sydney and Robert Ladouceur of Laval University in Quebec retraced the development of their inﬂuential 2004 position paper, A Science-based Framework for Responsible Gambling: the Reno Model in a special lunchtime session that kept the midday audience entertained.

programs aimed at influencing behavior. He South Wales, Australia, to impress delegates explored how people make decisions, and the with her research on electronic gaming ma- About BCLC implications of this when developing effec tive chines. Dr. Gainsbury, a respected clini- programs for minimizing harm and protect- cal psychologist and lecturer in the Centre British Columbia Lottery Corporation ing those with potential gambling problems. for Gambling Education and Research, (BCLC) is a leader in responsible gam- Dr. French demonstrated the importance of Southern Cross University, shared updates ing, having been certified in 2010 marketing in attempting to drive behavior and findings on an Australian trial cur- to Level 4 of the WLA Responsible and the obligation and responsibility that rently in progress. In the trial, dynamic Gaming Framework (WLA-RGF), the comes with this. His lively session was sup- warnings are used to encourage players to highest level of certification possible. ported with graphic facilitation, with Aftab manage their gambling responsibly. Dr. (See WLA Magazine number 39, Winter Erfan of Whole Picture Thinking providing an Gainsbury showed that warning messages 2013/2014, pp. 34–35.) Level 4 of the impressive visual recording of his message. can be important components of a strat- WLA RGF is focused on continuous egy to minimize problem gambling, and improvement, and marks a milestone Cutting-edge research demonstrated the effect of the design, fre- on BCLC’s continuing journey to First time New Horizons speaker Dr. Sally quency, format, and content of such mes- socially responsible gaming. Gainsbury travelled all the way from New sages on players.

Aftab Erfan’s visual interpreta- tion of plenary speaker Dr. Jeff French’s keynote speech on how to design and deliver social programs that inﬂuence behavior.

WLA magazine | No. 40 | Spring 2014 29 INSIGHT INSIGHTINSIGHT

The inaugural poster session at this year’s New Horizons conference was a huge success. The session featured 19 posters, on topics ranging from gambling and homelessness to rodent decision-making behavior.

Dr. Mark Griffiths, director of the Interna- evolved, injecting their insightful observa- issue, it is generally con sid ered something tional Gaming Research Unit at Nottingham tions into conversation on an ever-changing that happens to someone else. In light of Trent University, returned for his second year industry. these results, delegates were asked to con- at the conference to build on his very well sider potential unintended consequences of received presentation from 2013. This year What the Public Thinks (and Why it Matters), key messages in their campaigns, and how to he addressed social responsibility in market- a session led by Mr. Don Feeney, Director effectively target the right audience. ing and advertising, addressing speculation of Research and Planning at Minnesota on the impact of advertising as a possible State Lottery, featured an interactive dis- Diverse viewpoints stimulus of problem gambling. Dr. Griffiths cussion about the results of interviews and One of the most talked about sessions in asserted that more research is needed to de- focus groups held in different juris dic tions 2013 was the live focus group, which asked termine if there is an actual causal link be- across North America. Mr. Feeney’s research seniors for their insights and experience tween advertising and problem gambling. showed that while the typical member of the gambling. This year’s conference featured a His presentation provoked lively discussion public thinks problem gambling is a serious focus group of regular gamblers who were in what proved to be a vibrant session. asked for their thoughts on What Responsible Gambling Really Means to Players. Delegates Drs. Alex Blaszczynski of the University watched attentively as participants discussed of Sydney and Robert Ladouceur of Laval the reasons they enjoy gambling games, the University in Quebec entertained the au- concepts of randomness and risk, and the dience in a special lunchtime session that effectiveness of responsible gambling mes- retraced the development of their influen- saging. tial 2004 position paper, A Science-based Framework for Responsible Gambling: the New in 2014, New Horizons invited delegates Reno Model. The model frames gambling re- to take part in a poster session. Posters from lated problems as a public health issue, and students, researchers and industry profes- calls on key stakeholders to join together to sionals displayed research theories, methods, reduce gambling related harm in the com- outcomes, and information across a wide munity. Through a prepared video and a Don Feeney, Director of Research and variety of topics, and authors were on hand live interview, the two men reflected on les- Planning at the Minnesota State Lottery, to answer questions and discuss their stud- sons learned and the way the industry has addresses the audience. ies. The opportunity to share preliminary re-

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praise for the combination of a hard work- About the Center for Gambling Research ing organizing committee, conference vol- unteers, and sponsors. “We don’t use an The Center for Gambling Research at and programming in British Columbia event management company to organize the University of British Columbia has and beyond. Research activities from this event. It’s entirely the product of an en- been established to conduct indepen- the center will contribute to scientific thusiastic group of BCLC employees deliver- dent, innovative research on the social knowledge internationally and help build ing an event of which we’re all proud. We’re and behavioral aspects of gambling, to local expertise by supporting graduate also delighted that so many of our first year help inform and advance responsible and post-graduate student training in sponsors endorsed New Horizons and came and problem gambling prevention policy this field. back again to form the core of an expanded list of sponsors.”

search amongst delegates was an added value from the University of British Columbia, “This year our total number of delegates was that seemed to be appreciated by all delegates. took home CAD 500 each in funding to- up, our total number of sponsors and spon- wards a future gambling related conference. sorship dollars was up, and overall delegate Student posters were assessed by a team satisfaction with the event was up. I’d have of judges including Paul Smith of BCLC, It’s all about the people to say it was a tremendous success, and we’re Dr. Sally Gainsbury from the University of In addition to presentations and sessions, already thinking about how to improve for Sydney, and Sue Birge from the Responsible networking social events encouraged in- New Horizons 2015.” Gambling Council, Canada. Parisa Hedayat- dustry professionals to connect with others mofidi of the University of Toronto received who are also passionate about responsible the award for best poster. Her prize was gambling. For more information on the New Horizons CAD 1000 in funding towards a future in Responsible Gambling Conference please gambling related conference. Runners up Conference host Paul Smith, BCLC’s visit www.horizonsrg.com. You can also fol- Melanie Tremblay and Michael Barrus, both Director of Social Responsibility, had high low New Horizons on Twitter@HorizonsRG.

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Sportradar security services help prevent match-ﬁxing

Eradicating the global threat of match-fixing isn’t going to be easy. But when sports officials, law enforcement, judicial authorities, and gaming operators work together to improve awareness and governance, the chances of fighting back effectively get a little better. Sportradar’s fraud detection system has already proven effective in a number of high-profile cases. The Swiss company is also providing sports leagues and federations with customized education and consultancy packages that could usefully be supported by sports betting operators.

In 2005, the infamous Robert Hoyzer was ex- Today, over 55,000 matches are monitored posed for manipulating matches in Germany per annum in football, tennis, futsal, cricket, at the behest of a Croatian crime syndicate, security services rugbyThe sculpture union, and handball. The FDS com- at the head of which was a man named prisescreated the exclu- following core features: compre- Ante Sapina. It all started quite innocently, After the Hoyzer scandal, Sportradar de- hensivesively forbetting the database; scientific alerting with two meetings in a Berlin café. What veloped an Early Warning System for the Princesystem; of Asturias fraud scoring database of individu- transpired not only paved the way for German Football Federation (DFB) to mon- als; Awardsvast professional by analytical experience; Sportradar’s Fraud Detection System as we itor betting patterns for signs of manipula- Spanishan unrivaled sculptor level of coverage; and a proven know it today; the story also shows that tion. By 2009, with the help of UEFA, the abilityJoan to detect Miró suspicious betting. Since May prevention measures and education are es- most sophisticated system to date – the Fraud 2009, Sportradar has identified over 1,250 sential to combating match-fixing. Prior to, Detection System (FDS) – was born. Initially suspicious football matches worldwide. during, and after Hoyzer’s time, a major monitoring over 31,000 matches per season, Singaporean crime syndicate has manipu- its primary aim was to track betting odds The long arm of the law lated matches on every continent. The threat movements across hundreds of different bet- But a sports monitoring system and federa- of match-fixing is real and perennial, gener- ting operators around the world and to de- tion cooperation are not enough to combat ating vast profits for those corrupting sport. tect suspicious betting patterns in real time. match-fixing. Law enforcement agencies are

From left to right: Betaland Marketing & Communication Manager, Sara Rosa; Malta FA Treasurer, Ivan Mizzi; Betaland Director, Luigi Discornia; Malta FA President, Norman Darmanin Demajo; Sportradar Managing Director, Andreas Krannich; SportsLawyer partner, Anja Martin.

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needed. They can use Sportradar’s information and data for gathering intelligence and investigatory evidence as well as expert wit- ness statements for prosecution. Indeed, in 2013, the FDS detected suspicious betting in both Austrian and Australian soccer competitions, which led to significant police investigations. The Acting Chief Commissioner of the Victoria Police in Melbourne, Australia, acknowledged Sportradar’s expertise in 2013: “Sportradar identified the match-fixing issue within the Victorian Premier League and subsequently supported and provided specific match odds advice to Victoria Police during the investigation. Operation Starlings was a successful investigation, and Victoria Police appreciates the valuable expert assistance provided by Sportradar.” Marcello Presilla, International Integrity Agent at Sportradar (left), with Alessandro Zarbano, CEO of Genoa CFC. Sportradar detected the initial match-fixing and reported it to the Victoria Police as the ventive measures – the FPS offers solutions Genoa CFC Integrity Program 2013 match-fixing was ongoing, allowing for a tailored individual needs and budgets. These real-time and highly effective investiga- include induction workshops, tailored ed- r (FOPB$'$JTJO*UBMZT4FSJF" tion. In addition, Sportradar explained the ucation workshops, reviews of processes, r &EVDBUJPOXPSLTIPQJO/PWFNCFS nuances and jargon of the betting markets rules and procedures, and e-learning solu- r "UUFOEFECZĐSTUUFBN ZPVUIQMBZFST so that law enforcement could understand tions to support education and prevention. and coaches as well as local media what was occurring. r 4QPOTPSFECZBCFUUJOHPQFSBUPS Education has a lasting impact on the con- In addition to Victoria Police, Sportradar tinued fight against corruption. When Malta Football Association has supported the State Office of Criminal players, officials, and coaches are aware of Integrity Tour 2014 Investigations in Hessen, Germany, the pub- incoming threats, understand the conse- lic prosecutor’s office in Frankfurt, prosecu- quences of manipulation, and know what to r FEVDBUJPOXPSLTIPQTGPSQMBZFST tors of the Bochum case, the Austrian Federal do if approached, those seeking to corrupt youth players, and coaching staff from Police, and Hong Kong’s Independent sport will have little place to turn. all 1st & 2nd Division clubs Commission Against Corruption (ICAC). r FEVDBUJPOXPSLTIPQGPSSFGFSFFT In the case of the Austrian Federal Police, The Sportradar Fraud Prevention r "CPVU QBSUJDJQBOUTJOUPUBM Sportradar supported the ongoing investiga- Service: use cases r &MFBSOJOHUVUPSJBMTGPSBMMQMBZFST tion by analyzing matches and the individu- The FPS has helped Italy’s Lega Pro with and referees als involved. its workshops and e-learning tools and is r 4QFDJĐDBOUJNBOJQVMBUJPODPEF currently conducting an Integrity Tour in developed for players and referees Fraud Prevention Service Malta. In addition, Genoa CFC in Italy has based on work by German Sport Credible, comprehensive monitoring of the organized a club-specific tailored workshop University of Cologne and external worldwide gambling market by Sportradar’s as part of the FPS. Highlights of these recent legal experts FDS is an important requirement to tackle initiatives are detailed below. r $POTVMUJOHPODPEFJNQMFNFOUBUJPO manipulation in the future. However, edu- and escalation cational and preventive measures must also Lega Pro Integrity Tour 2013-2014 r 4QPOTPSFECZBCFUUJOHPQFSBUPS be taken to inform athletes, coaches and officials about the possible dangers and conse- r -FHB1SPJTUIFrd & 4th tier in Italy One of the major successes of the FPS oc- quences of match-fixing. r FEVDBUJPOXPSLTIPQTXJUIBMM-FHB curred after the Lega Pro Integrity Tour 1SPDMVCTQMVTBEEJUJPOBMXPSLTIPQT 2013. As part of the tour, Sportradar con- Aware of this need and building on its ma- for youth teams ducted a full education workshop with the ny years of experience in this unique area, r FEVDBUJPOXPSLTIPQXJUISFGFSFFT club Salernitana. In May 2013, Salernitana Sportradar has now developed its Fraud r FEVDBUJPOXPSLTIPQXJUIJOTQFDUPST player David Mounard reported an ap- Prevention Service (FPS). The FPS offers every r QBSUJDJQBOUTJOUPUBM proach made to him by a former teammate sport federation all the necessary support and r QMBZFST to help fix a league match against Gavorrano. information needed to tackle match-fixing. r ZPVUIQMBZFST He immediately knew what to do, passing Whatever problems a sport federation faces – r DPBDIFT NBOBHFST BOEDMVCQSFTJEFOUT the information to the Procura Federale, whether they already have problems with r SFGFSFFT and the match was ultimately not manip- manipulation or simply want to take pre- r JOTQFDUPST ulated.

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In addition, during the 2011-2012 season, maker or lottery operator. It would be an Sportradar detected 14 Lega Pro matches opportunity for operators to give something About Sportradar that were suspected of being manipulated. back to the game they draw their profits Due to the subsequent monitoring of their from, demonstrate their ethical approach to Headquartered in Switzerland with matches by the FDS, combined with the par- the industry, and show they have the integ- branch offices and representations in allel organization of an Integrity Tour, com- rity of sport at the core of their business. In Europe, Asia, Africa, and the Americas, prising comprehensive education of Lega practical terms, particular operators would Sportradar is the world’s leading suppli- Pro’s clubs (players, youth players, presidents, be seen to be helping their league prevent er of sports and betting-related data. and referees) as well as an accompanying match-fixing by supporting the FPS and its e-learning program, just two matches were ability to ensure that match-fixing in that Sports authorities all over the world escalated to report status for the 2012-2013 particular country diminishes. rely on the company’s fraud detection season. This represents a huge decrease in the system to identify betting-related level of suspicious activity observed within Match-fixing is able to generate vast amounts manip ulation of sporting events, and a their competitions and highlights the posi- of profits with little risk and/or punishment, range of education and consultancy tive effects of liaising with the FPS. so eradicating the problem is not going to services is also available to help leagues be easy or straightforward to achieve. And and federations prevent match-fixing. Sponsorship opportunities yet, it is becoming more difficult for would- Sportradar is actively encouraging compa- be match fixers and players to execute their Sportradar has been a WLA Associate nies to sponsor an Integrity Tour to help schemes efficiently. And every time moni- Member since 2012. local federations to tackle their match-fixing toring systems, educational services, sports problems – past, present, and future. The federations, and law enforcement agencies For further information visit most obvious choice to sponsor an Integrity work together, the window of opportunity www.sportradar.com Tour would be a responsible licensed book- for match-fixers closes a little more.

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ONCE receives royal honors for its model of social inclusion

Coinciding with its 75th anniversary, the Spanish Organization for the Blind (ONCE) won a prestigious Prince of Asturias Award in 2013 for its role in enhancing the dignity and quality of life of millions and setting an example for community organizations around the world. The prize is a powerful endorsement of this lottery operator’s role as a standard-bearer for the rights of disabled people, and validates its continuing engagement with the principless of self-reliance and social responsibility.

The sculpture created exclusively for the Prince of Asturias Awards by Spanish sculptor Joan Miró.

Ofﬁcial photograph of TRH the Prince and Princess of Asturias with the Laureates. From the left, bottom row, Cristina Lucchese, representing ONCE; François Englert; Peter Higgs; Saskia Sassen; Liv Parlee Cantin, representing ONCE; Michael Haneke; Antonio Muñoz Molina; Annie Leibovitz; and José María Olazábal. From the left, second row, Rolf Heuer, Director General of CERN; Miguel Carballeda, President of ONCE; Peter Gruss, Director General of the Max Planck Society for the Advancement of Science; and Soojin Ryu, Ali Shahmoradi, Damián Refojo, and Matthias Weißenbacher, representing the Max Planck Society for the Advancement of Science.

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The Prince of Asturias is the historical and Spanish citizens, but for the example it has for numerous international initiatives that official title given to the heir to the Spanish set for community organizations outside have followed in the wake of this valuable throne. The current holder of the title – Spain, all of which have made a significant endeavor.” Felipe, son of King Juan Carlos of Spain difference to the lives of disabled people and Queen Sofía – instituted the annual around the world. Three representatives of the organization at- Prince of Asturias Awards in 1980 to pro- tended the Awards ceremony at the historic mote scientific, cultural, and humanistic International prominence Campoamor Theatre in Oviedo, sharing the val ues and strengthen ties between the royal Award-winners are selected by a jury made world media spotlight with such luminaries family and the Principality of Asturias in up largely of prominent Spanish dignitaries as scientist Peter Higgs, film-maker Michael Northern Spain. Prizes in various catego- and thought leaders, but the awards are res- Haneke, sociologist Saskia Sassen, and Peter ries, including the Arts, Liter a ture, So cial olutely international in scope and have pro- Gruss, President of the Max Planck Society Sciences, Communication and Human ities, gressively gained prestige and recognition for the Advancement of Science. Technical and Scientific Re search, Inter- on the world stage. The prizewinners come national Cooper ation, Sports, and Concord from every corner of the planet. In the Con- “Being blind and disabled, with all the dif- are awarded to individuals, entities, or orga- cord category, for example, previous winners ficulties that entails, we are proud to achieve nizations from around the world who make of the Prince of Asturias Award for Concord the highest possible accolade,” said ONCE notable achievements in the sciences, hu- include Heroes of Fukushima, the dedicat- President Miguel Carballeda on receiving manities, and public affairs. ed workers who volunteered to stay behind the 2013 Concord Award. “We dedicate it to after the nuclear disaster in 2011 to help se- all those who turn to us every day to share The Awards are presented in September cure the devastated site; the City of Berlin their hopes, and to so many organizations, each year at a widely publicized ceremo- on the 20th anniversary of the fall of the both large and small, which do an outstand- ny in Oviedo, the capital city of Asturias, Wall; Yad Vashem, the Holocaust Museum ing job on a daily basis to support people where the winner in each category receives in Jerusalem; J.K. Rowling; Steven Hawking; with disabilities. It is a triumph for orga- a cash prize of 50,000 euros and a sculpture and UNICEF. nized civil society.” specially created for the Prince of Asturias Foun dation by Spanish sculptor Joan Miró. In announcing its decision in September Run by blind people 2013, the jury bestowed the Concord Award for blind people This year’s Concord award went to the on ONCE “in view of its extraordinary work, ONCE (Organización Nacional de Ciegos Spanish Organization for the Blind (ONCE). carried out for over three quarters of a cen- Españoles) was created in 1938 when several The 75-year-old institution was selected tury, which has enhanced the dignity and existing blind associations joined together to from of a field of 37 contenders not only in quality of life of millions of disabled people provide a means for blind and visually im- recognition of its work to promote the so- in Spain, promoting their integration in paired people to earn a living and improve cial inclusion of blind and visually impaired society and thereby serving as an example their quality of life.

The institution is authorized by the Spanish State to organize ticket sales for ONCE lottery games, which fund the organization, create jobs for more than 20,000 people with disabilities, and provide assistance to over 71,000 blind or severely visually impaired people living in Spain. ONCE and the ONCE Foundation also invest in a range of other businesses, which have created jobs and helped to integrate more than 30,000 people with disabilities in the workplace.

Further afield, ONCE is involved in a wide range of international projects, in particular in 19 Latin American countries, which have benefited more than 121,000 blind school- children and provided workplace training for more than 50,000 people in the last four years. ONCE is also an active member of the European Blind Union, the World Blind Union and the International Council for Education of the Blind, as well as playing a “Mucha concordia y muchas gracias!” enthused ONCE President Miguel Carballeda, pictured prominent role in promoting the rights of here accepting the Concord Award with fellow ONCE representatives Liv Parlee Cantin (left) disabled people in the key United Nations and Cristina Lucchese (right, with Brizzy the guide dog). and European institutions.

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Self-reliance and responsibility ing their place in society. As a seller of gaming team of scientists at the University of Duesto For ONCE, the model of social integration products, the organization is acutely aware of received ONCE funding in 2011 for a two- commended by the Awards jury in Oviedo its responsibility to the broader community year research project on problem gaming risk goes even further than protecting the rights and is actively involved in promoting new factors among adolescents, and a second In- and well-being of blind people and promot- avenues of research into problem gaming. A ter national Contest on Responsible Gaming Research was launched by ONCE in July 2013 (see WLA Magazine N°38). By helping to finance new areas of academic study, ONCE’s goal is to stimulate research into the identifi- cation of problem gambling risk factors and to minimize the negative effects of gaming on society. The winners of this second competition are due to be announced later this year.

The Prince of Asturias 2013 Award for Con- cord is a particularly fitting accolade and a significant landmark for this Spanish institution, which also celebrated its 75th anniversary last year. It epitomizes the core principles and values that have guided the organization on a day-to-day basis throughout its history, and comes as a further endorsement of its exemplary role in promoting solidarity, self- reliance and responsibility not only in Spain ONCE: an example of concord and self-reliance for community organizations worldwide. but, increasingly, on the international stage.

WLA magazine | No. 40 | Spring 2014 37 CORPORATE NEWS CORPORATECORPORATE NEWS NEWS

New player on the lottery market – NOVOMATIC acquires Betware

NOVOMATIC AG, through its subsidiary NOVOMATIC Lottery Solutions GmbH, has acquired a majority shareholding in Betware, the Icelandic gaming pioneer and one of the leaders in online gaming solutions for lotteries. NOVOMATIC AG now owns a 90% stake in the Icelandic company, with the remaining 10% retained by the Betware management.

sparked NOVOMATIC’s interest in the new brand ambassador and will support Ice landic company and eventually led to NOVOMATIC at selected national and in- the acquisition. Betware’s offering will now ternational events. complement NOVOMATIC’s product portfolio and provide a bridge into the lottery NOVOMATIC plays a dual role on the gam- world. NOVOMATIC, one of the largest ing market. First, the company is a manu- conglomerates in the international gaming facturer and operator, offering high-tech industry, now intends to build its presence gaming equipment and operating casinos, in the lottery industry in conjunction with electronic casinos, and sports betting outlets. Founded in 1996, Betware has built a strong Betware. At the same time, NOVOMATIC is a content position in the gaming market with its provider for licensed online and offline gam- clear focus on developing and delivering a Winning technology ing operators. Among NOVOMATIC’s oper- state-of-the-art, flexible gaming platform Operating over 1,500 gaming facilities ations are the most profitable Swiss, German and solutions for lotteries to support their world wide, NOVOMATIC is the undisput- and Czech casinos as well as one of the largest online and mobile operations. An emphasis ed market leader in Europe for electronic casino resorts in South America. The Group’s on an open architecture is what has made casino operations and one of the prime subsidiaries are leading companies in their Betware’s offering so versatile: operators gaming technology companies in the world, mar ket segments: ADMIRAL Sportwetten have the ability to seamlessly integrate any with over 30 years of experience. The GmbH, for example, is the largest sports bet- third-party content, thus creating a unique NOVOMATIC Group is one of the largest ting provider in Austria, with 205 outlets. And offering best fitted to their players. corporations in the industry and a top player Greentube Internet Entertainment Solutions in the international gaming field. Just recent- GmbH is a leading developer of gaming solu- It was this clear focus and innovative ap- ly, Niki Lauda – three-time Formula 1 World tions for Internet, mobile and iTV, specializing proach to designing lottery solutions that Champion and entrepreneur – became its in the development of 3D download games.

Corporate headquarters of the NOVOMATIC Group near Vienna, Austria. NOVOMATIC is a The Group manufactures gaming machines global player with companies in 45 countries. Inset: Thomas Graf, Chief Technology Ofﬁcer. as well as operating casinos.

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Adding lottery to the mix ence, talent and expertise,” said Betware NOVOMATIC has now decided to en- CEO Stefan Hrafnkelsson. “We are confi- ter the lottery market and Betware’s dent that this transaction will create new products and services are a great fit to value in the lottery market, linking to- complement its gaming technology port- gether the strength of NOVOMATIC with folio. Betware’s aim has always been to of- Betware’s innovative lottery solutions. I fer its customers top-class solutions that strongly believe together we will become the are best fitted to their lottery operations. market leader within the lottery segment.” Its R&D teams keep track of the market and how trends evolve in line with the needs of Thomas Graf, CTO of NOVOMATIC com- the players. This has enabled the company mented: “Our acquisition of Betware has to consistently anticipate the expectations of been a logical step to further enhanc- lottery operators, ensuring access to the most ing our competency in electronic and advanced technologies on the market and video lottery technologies. Betware’s helping them to be among the most innova- open platform architecture is second tive lotteries in their respective jurisdictions. to none, providing tailor-made so- As part of the NOVOMATIC Group, Betware lutions to any small- or large-scale will continue to further develop its lottery so- lottery operation. It seamlessly inte- lutions, based on the strength, openness and grates a complete range of product flexibility of the Betware gaming platform. verticals, including those of third- party vendors. With our combined Both NOVOMATIC and Betware share the resources, know-how and indus- mission of offering products and services try expertise, we will be able to only in markets with precise regulatory offer any lottery operator a frame works. For both companies respon- 360-degree solution for all dis- sible gaming and player’s safety and secu- tribution channels, including Winning technology: rity are a very important aspect of running online, mobile, and land-based, World racing champion their business. The combined resources which will be a clear advantage and entrepreneur Niki and industry expertise will provide a com- in an increasingly competitive Lauda recently became plete solution, including all sales channels operating environment. I am NOVOMATIC’s new (online, mobile, and land-based), for lotter- convinced that with Stefan brand ambassador. ies of all sizes and in every jurisdiction. Hrafnkelsson’s experienced and dedicated management “We are very excited and are looking for- team, we will fully lever- ward to joining the NOVOMATIC Group age our potential and surprise and jointly contributing industry experi- the industry.”

Thomas Graf, Chief Technology Ofﬁcer of NOVOMATIC. Betware offers lottery solutions for all channels.

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Instant games drive lottery growth in Europe

Responding to changing player demands and despite a tough economy, Portugal’s Jogos Santa Casa has reinvented the instant game over the last ten years to realize untapped potential. Europe’s fastest-growing lottery for instant games shares the story behind its recent 500% growth in the category.

No story makes a bigger impact in the global instant product category now accounts for Jogos Santa Casa’s instant games were the lottery industry than a story told by num- 16% of Szerencsejáték Zrt’s total sales. only category in the lottery’s portfolio to bers. And these numbers make for a big grow more than 50% in recent years. In story. Between 2009 and 2013, draw game In Portugal, Jogos Santa Casa has also real- 2013, instant games became its second-larg- sales in Europe decreased by US$2.9 billion, ized the untapped potential of instant lot- est product category, accounting for 33% of according to data collected by La Fleur’s tery games over the last decade as it sought all sales. Almanac. During this same period, instant revenue solutions in a challenging economic game sales in Europe increased by US$9.4 climate. As a result, instant game sales have Bigger prize payouts billion. In fact, instant games are proving to grown a remarkable 500% since 2010, mak- An upside to the challenging climate, ac- be a strong growth driver for European lot- ing Jogos Santa Casa the fastest-growing cording to Fernando Paes Afonso, Jogos teries’ product portfolios. European lottery in the instant game cat- Santa Casa’s CEO, was the renewed excite- egory today. ment among Portuguese players for greater The growth trend in the instant product prize payouts. For Jogos Santa Casa, this category is one that analysts have observed Although Jogos Santa Casa launched instant has meant rethinking how they serve their emerging over the last several years with games in 1995, it wasn’t until 2005 that a player base. high-profile European lottery operators such steady growth pattern in the category began. as Camelot (U.K.), Lotterie Nazionali S.r.L. The lottery began to fully embrace global “We had to reinvent our lottery products (Italy), and La Française de Jeux (France). best practices in instant game design and so people could play responsibly and be In Hungary, Szerencsejáték Zrt grew instant portfolio management. Sales grew steadily enter tained at the same time. We also had game sales 29% in one year – from €116 mil- for several years and then began a rapid to re member the social essence of playing lion in 2012 to €150 million in 2013. The growth period (see chart). games.”

Jogos Santa Casa is committed to providing its products in a healthy manner and with a long-term view. While people like to play lottery games – and a large majority like to play in a social context – the lottery is sensi- tive to the reality that most people have limited disposable incomes.

Instant games, sold under the Raspadinha brand in Portugal, are core to the lottery’s vision for a well-balanced, sustainable product offering. Its instant product portfolio includes a variety of games at lower price points, which resonates with budget-conscious players. Last year, Jogos Santa Casa took a calculated risk, launching its first €5 game, which has since become the lottery’s strongest revenue generator.

“The Super Pe-de-Meia™ game has the highest price of the Raspadinha portfolio, which In recent years, Jogos Santa Casa has reinvented the instant game category, which responds to a wider demand by the public accounted for 33% of the lottery’s sales in 2013. for higher prize payouts,” says Paes Afonso.

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“A higher prize payout and a new distribution framework were the two major factors that drove the growth of our instant games,” he explains.

The lottery also worked with the legislature to eliminate taxes on prize money, a move that has also helped their instant game category thrive.

Winning partnership Paes Afonso credits the lottery’s nearly decade-long partnership with global lottery industry provider Scientific Games for its dramatic success in growing the instant games business.

“Scientific Games has contributed its expertise both in physical game production and in the development of game options with the highest success potential, based on their deep experience with other lottery markets worldwide,” says Paes Afonso.

In 2009, Scientific Games helped Jogos Santa Casa modernize its distribution system, which serves nearly 4,500 retailers. Retailers used to buy tickets in bulk packs at the bank; now they use the lottery’s distribution system and can order tickets through their POS terminals. The terminals act as a just-in-time system to validate tickets, which assures players they are receiving authentic A selection of the Raspadinha portfolio of instant games that has helped Jogos Santa Casa tickets. The prize can only be paid if the tick- to adapt to changing player demands. et is not damaged, which serves to prevent fraud. Retailers receive their tickets within 72 hours of ordering them, with no need to “We’re excited to help Jogos Santa Casa take out our history. We’re obliged to manage pay up front. their instant game strategy to the next level. the lottery in a way that assures that we The collaboration between our companies is will be there for at least 500 more years,” “The retailers were very pleased with the based on a practical, open approach and we Paes Afonso concludes. change as it represents less cash investment, are very proud of the efforts of Fernando Paes more security and more product availabil- Afonso and his team. Its ability to meet chal- “As European lotteries look to increase ity,” says Paes Afonso. lenges, overcome obstacles and drive success revenues by adjusting product portfolios should position Jogos Santa Casa as an instant primarily comprised of draw-based games, What’s next? lottery leader in Europe in 2014 and beyond.” Portugal’s success allows them to see how As Jogos Santa Casa looks to grow its market instant games can add revenue and provide share by 16% in the next few years, key ini- For Paes Afonso, the continued success of an exciting experience for their players,” tiatives in the next year include optimizing the lottery is embedded in his vision for a said Anderson. the retail environment to better position in- sustainable future. Since Portugal’s first lot- stant games, and offering instant games with tery draw in 1784, the gaming operator has more diverse price points and themes. been generating funds for good causes. The lottery supports Santa Casa da Misericórdia “Portugal is a shining example of what a Eu- de Lisboa, a 500-year-old charity that allevi- Fernando ropean lottery can achieve by listening to its ates suffering. Foster homes, homes for the Paes Afonso, customer base, adopting best practices and elderly, hospitals, and schools are all benefi- CEO of Jogos Santa bringing innovative products to market,” ciaries of the charity. Casa, the Games says Kevin Anderson, vice president, Inter- Department of Santa national Business Development for Europe, “We’ve built a strong reputation of integrity, Casa da Misericórdia Middle East and Africa at Scientific Games. security and social responsibility through- de Lisboa in Portugal.

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INTRALOT in Oceania: looking forward to an exciting year!

INTRALOT is proud to be reaching a decade of successful operations in Oceania. Ever since it was awarded a New Zealand government contract in early 2005 to monitor all gaming machines in the country, INTRALOT has been successfully building its local brand in the Australian and New Zealand markets and is looking ahead to further expand its presence in the region.

INTRALOT started its Australian opera- This was a major achievement for the coming technologies, such as game and software tions in 2007 with the award of one of the pany locally and globally and it testifies to download, server-based gaming, central two lottery licenses on offer in the State of the technical compliance and operational con figuration control, unlimited flexibility Victoria. The company started its lottery excellence of INTRALOT’s technology, as for linked jackpots and game offerings, and business primarily offering instant scratch well as its ability to provide value-added player-based services. tickets (‘scratchies’) and a number of on- services and support to a very demanding line games, such as Bingo, Lucky 3, Lucky 5, regulator. iGEM uses multi-protocol interface boards Lucky Lines, and Keno (with a jackpot of to enable connectivity and support of any AU$2 million on offer every day). Since Certiﬁcation and interoperability type of electronic gaming machine (EGM), July 2008, these same games have also been iGEM, INTRALOT’s cutting-edge central regardless of the communications protocol available in Tasmania through INTRALOT’s monitoring system, is certified to the latest used. As a result, the system has removed distribution channels of local retailers and standards of the Gaming Standards Associ- technical restrictions across Victoria’s newsagents. ation (GSA), which are designed to enable gaming sector, allowing operators to lever- interoperability of the most innovative gam- age their existing games and at the same In 2011, a million-dollar instant scratch ticket – a first for INTRALOT in the region – was an instant hit and has since been followed by two more successful AU$1 million instant scratch tickets in Australia.

Having established a solid position in this highly competitive lottery market, its strategy is to further enhance its position in both Victoria and Tasmania by introducing a new and innovative family of games never, before offered in the region.

Leading technology provider In addition to this successful track record as an operator, INTRALOT is also the supplier of gaming technology to the Lottery Commission of Western Australia (Lottery- west). This relationship continues to mature as Lotterywest capitalizes on INTRALOT’s investment in advanced technology and leading-edge technological solutions.

INTRALOT substantially expanded its activities and strengthened its position in Australia in 2011, when the company was awarded the exclusive license to monitor As well as distributing instant games across the retail network, INTRALOT is one of about 27,000 gaming machines installed the region’s leading providers of gaming technology and advanced monitoring systems in clubs and hotels throughout Victoria. to help ensure regulatory compliance.

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limits, before they play, to reduce the risk of problem gambling and encourage them to make rational and conscious decisions about their gambling. The program is due to become operational in all gaming venues, including Melbourne’s Crown Casino, in late 2015. As a result, INTRALOT is currently working with the Victorian State Government and all relevant stakeholders to design and build this pre-commitment system. The project comes as recognition of the company’s innovation, quality of service, and dedication of talent and resources focusing on the Australian market.

In New Zealand, INTRALOT has been successfully operating its Electronic Monitoring System (EMS) since 2007, monitoring about 20,000 EGMs across 1,500 venues around the country. This has been covered by a five-year contract with the Department of Internal Affairs (DIA), which has already been extended until the year 2020.

INTRALOT’s latest technological innovation in New Zealand has been the development of the Gaming Licensing System (GLS), which has been successfully deployed as the “integrated gambling platform” of the Department of Internal Affairs. The integrated platform offers end-to-end pro- cessing and workflow management for all gaming licensing and compliance processes. New Zealand’s GLS provides for regulatory compliance audits and investigations, including remote online access by the regula- The highly ﬂexible iGEM monitoring system technology supports all global gaming protocols: tor’s mobile compliance teams. SAS, QCOM, G2S as well as a number of proprietary protocols. Building on solid ground time source the best games and EGMs avail- being delivered to allow gaming operators Having built a reputation for excellence able from all major EGM manufacturers. to diversify their jackpot product offering to and solid leadership in the Oceania mar- their gamers. ketplace by providing bespoke technolog- In Victoria, INTRALOT managed to com- ical solutions tailored to customer needs, plete a very complex monitoring implemen- Ongoing support for regulators INTRALOT is preparing to capitalize on tation project that involved the migration The innovative iGEM technology and the upcoming opportunities, to expand its pres- from two legacy systems to iGEM, the tran- technological approach for venue cabling ence, and enhance its technology and ser- sition from two licensed operators to mul- and WAN network configuration is guar- vice offerings for the gaming sector. This tiple single-venue/retail licensed operators, anteed to fully serve additional needs of includes monitoring programs in new juris- and a complete overhaul of technical stan- the industry and is already used as enabling dictions, loyalty and player tracking services dards and operational procedures. The mi- infrastructure to approved third-party pro- for operators, solutions to enable the shift to gration of more than 27,000 EGMs in more viders, so that gaming operators can offer cashless transactions, and more. than 500 venues was concluded in a re- loyalty programs to their customers. cord time of six months with no issues and INTRALOT’s product and service portfolio, min imal downtime and costs to the venue Upon successful completion of the EGM the quality of its people and its unrelenting operators. monitoring deployment, the State of Victoria dedication to customer service and satisfac- entrusted INTRALOT to become the pre- tion make it confident that it will continue In addition, about 4,500 EGMs were con- ferred supplier of the first state-wide volun- to excel as opportunities arise. INTRALOT nected to iGEM progressive and mystery tary EGM pre-commitment system. Under looks forward to another exciting year in jackpots, and wide-area jackpots are now a pre-commitment program, players pre-set Oceania in 2014!

WLA magazine | No. 40 | Spring 2014 43 CORPORATE NEWS CORPORATECORPORATE NEWS NEWS

Digital sales channels — a timely boost for lotteries

The power of digital sales channels not only appeals to new demographics of players, but can be a response to many of the concerns that lotteries constantly face. Social, political, and operational issues can cause roadblocks — but early adopters of digital sales channels, such as Camelot in the UK, Veikkaus in Finland, and Jumbo Interactive in Germany, are now reaping enormous tangible and intangible benefits from their Internet deployment strategies.

A lottery’s mission is to operate in a manner that merce. For a lottery, that means creating aware- secures the honesty and integrity of the lottery ness of the games, jackpots, draw dates, the real- and its games, and to protect the well-being of its time dissemination of drawings and results, and customers while maximizing revenues for the the convenience to purchase the lottery games good causes it supports. The Internet and per- anytime, anywhere. sonal connected devices represent powerful technologies that can enhance a lottery’s mission. Protecting the well-being of customers Jumbo Interactive works with lotteries An Internet initiative for a lottery is no different Unscrupulous retailer clerks: It is an unfortunate to deploy safe, balanced Internet strategies to any other business or government agency: to fact of life that there are dishonest people in our combining connectivity, convenience cost-effectively improve operational efficiencies, society. Our retailers are not immune from these and a sense of community. create greater awareness, and enhance access people, who have on occasion cheated our cus- and convenience through wider access to goods tomers through various means, such as telling and services through e-commerce and m-com- them that a winning ticket was not a winner or telling them that a ticket won a lesser amount, and then cashing the ticket for his or her benefit. In the digital world, the payment process is divorced from clerk intervention as prizes are deposited au- tomatically into the customer’s account.

Responsible gaming: Many will argue that the ability to purchase lottery tickets using the Internet will create many more problem gamblers. In fact the exact opposite is the case. In the traditional lottery retail world, there are no mechanisms to prevent a player purchasing more than they can afford, spending the prover- bial paycheck as the argument goes. In the digital world, there are many checks that can be effectively imposed — such as self-exclusion, lottery-specified daily limits, and player-set limits — to prevent such activity.

Protection of minors: As a society we all want to protect our children from doing certain things until they are of an age to judge for themselves

44 WLA magazine | No. 40 | Spring 2014 CORPORATE NEWS CORPORATECORPORATE NEWS NEWS

the merits of undertaking certain activities, one tion of our messaging but provides endorse- nience and community. The Internet provides of which is being allowed to purchase lottery ment of the lottery by friends telling friends connectivity to access the lottery, convenience tickets. In the traditional retail environment, — it’s the digital equivalent of word of mouth. to purchase, and a feeling of community as they there has to be a reliance on the retail clerk to share everything with friends. perform such age verification. In the digital More cost-effective distribution: It is no secret world, on the other hand, the customer must that one of the key ingredients for a successful Maximizing revenue first register with the lottery and establish an ac- lottery is purchase convenience. Even with a for good causes count, a process that includes age verification. large retail network that provides a high termi- Increased sales and revenue: Over the past sev- There are several ways to verify a player’s age, nal-to-population density, the retailer’s operat- eral years, lotteries have embarked on many ini- such as cross-checking with commercial or gov- ing hours can hinder the player’s convenience tiatives including multi-jurisdictional games, ernment databases and uploading government- and ability to purchase. Expanding the network cross-selling, and price-point strategies to main- issued documentation such as a driving license. by adding more terminals to the traditional re- tain growth. Unfortunately, over time, the tail network is costly, not only due to the capital success of these initiatives has faded. As an in- The black market: Players are currently being cost but also the ongoing service and mainte- dustry, we are now looking for the “next big solicited to purchase lottery tickets over the nance expense. By comparison, the deployment thing” to increase sales and maintain revenues. Internet by unauthorized lottery resellers. This of digital sales channels is far more efficient and Fortunately, mega-jackpot draw games such as black market is unsafe for consumers and our cost-effective, affording customers more conve- Powerball, Mega Millions and Euro Millions are children. A lottery providing a regulated and se- nience to purchase. our greatest products and represent the greatest cure alternative will help eliminate these activi- opportunity to sustain growth through more ef- ties and stop the outflow of funds that would The mobile jackpot: The past few years have ficient and convenient distribution. As the early otherwise come to the lottery. seen the explosive penetration of mobile devic- adopters of the Internet can attest, new demo- es, which now outnumber the entire global pop- graphics of consumers can be engaged when lot- Driving operational efﬁciencies ulation. Whilst not everybody has a mobile tery products can be purchased conveniently. Marketing and promotion: Communicating device, an enormous number of consumers do, These new consumers can be reached via social and engaging the public at large is of paramount and this statistic can signal a huge opportunity media, which represents another opportunity to importance to maximize revenues. Until the ad- to drive sales and a real jackpot for lotteries. efficiently and cost-effectively expand a lottery’s vent of the digital world, this was a costly un- Lotteries can reach players on their mobile de- reach. With digital sales channels, lotteries can dertaking and involved using mass media to vices to provide alerts, announce special offers, communicate and interact with consumers in spread a wide net. Now our messaging can be and prompt a purchase. ways that have not previously been possible. tailored and targeted to a diverse community of demographics and delivered cost-effectively. A younger audience: Lotteries face decline The needs of traditional retailers: The success The same is true of all of the lottery’s informa- from an aging demographic, so there is a need of lotteries, in large part, has been due to the tion, from real-time streaming of draws and to cater to a younger audience. The Internet cer- size and diversity of the traditional retail net- communicating results and prizes, to new game tainly provides access in a form that a younger work — a fact that must not be overlooked with announcements and ‘how-to-play’ video clips. audience understands and wants to engage with. the introduction of digital sales channels. Social media not only enhances the dissemina- In their world it’s all about connectivity, conve- Lotteries need to capitalize on the retailers’ web

WLA magazine | No. 40 | Spring 2014 45 CORPORATE NEWS CORPORATECORPORATE NEWS NEWS

stores. At the same time as increasing lottery sales, they use the lottery in new ways to grow associated retail business.

GPS Check-In: Lotteries miss many opportunities to recruit retailers in the social space category (bars, taverns, cafés, etc.) because the retail staff does not have the time to operate the lottery terminal to sell or cash tickets. This is particularly the case with Keno games that have a draw every four minutes or so.

Jumbo’s GPS Check-In allows customers to check-in at these retailers using their smartphones to gain access to permitted games and watch draws that are streamed to their phones. When they leave the retail location they are au- tomatically disconnected. The retailers benefit simply by being a lottery retailer with no staff Enormous numbers and no equipment needed. of consumers now own one or more mobile devices, Supporting lotteries’ Internet signaling a huge opportunity to strategies drive sales and a real jackpot for lotteries. Today lotteries can utilize the power of the Internet in the form of digital sales channels to of- presence to reach both new and existing cus- geo-location and age verification — are com- fer customers the convenience they expect with- tomers. Most retailers understand the power of pleted to allow the player to purchase lottery out necessarily expanding overall gaming activity the Internet: they utilize it to promote their tickets. Upon completion, the player is returned or endorsing unregulated Internet gambling. If stores and have created large databases of cus- to the retailer’s website. revenue growth is the goal, digital solutions can be tomers. Enabling retailers to promote the sale of built accordingly. If social responsibility is the lotteries to their customers under an e-retailer The e-Retailer solution creates a diverse network goal, solutions can also be built accordingly. In solution, like that offered by Jumbo Interactive, of e-retailers within the lottery’s jurisdiction, and most cases a combination of many goals is needed will find new players and drive sales without ensures that each e-retailer’s website has consis- — and yes, the solutions can be built accordingly. cannibalizing in-store sales. tent messaging reflective of the lottery’s standards. Jumbo provides a complete turnkey Jumbo Interactive believes that deploying a bal- Embracing traditional retail solution at no cost to the lottery, operating on anced Internet strategy is the logical next step channels retailer commissions and covering the expense for lotteries virtually everywhere, not only to Over the past decade, Jumbo Interactive has of maintaining system hardware and software. serve their customers better but also to realize been pioneering the application of new technol- business efficiencies and protect the revenue ogies to develop tools for lotteries, retailers, and Smart Sign: Jumbo Smart Signs can be displayed that is generated for good causes. The tangible players that complement the digital sales chan- anywhere inside or outside a retail location, allow- and intangible benefits are compelling when nels to maximize sales and re venues for good ing customers that see a lottery sign to instantly framed in the correct context. causes. To address the needs and concerns of the “snap, tap or check-in” to buy tickets instantly us- traditional retailers, Jumbo has developed and ing their smartphone. ‘Snap’ refers to the familiar deployed several innovative solutions to provide QR code (Quick Response code); ‘tap’ refers to traditional retailers with tools to better serve NFC (Near Field Communications); and ‘check- their lottery customers. These include e-Retail- in’ refers to using GPS to verify location. er, Smart Signs, and GPS Check-In. Customers are given the convenience of purchas- e-Retailer: This innovative solution provides a ing their ticket direct from their smartphone, and gateway between the retailer and the lottery that the retailer that owns the sign location is credited enables the retailer to sell via the digital chan- with the sale and commission. Bonuses and in- nels. The lottery retail simply assigns a portion centives can also be offered as a way of driving of their website to “lottery”, which Jumbo man- customers back into the retailer’s store. ages for them with relevant up-to-date lottery information like results, jackpots, prizes, and Jumbo Smart Signs have been devised specifi- drawings. By clicking “Play Now”, the player is cally with the retailer in mind. They ensure that By Brian J. Roberts, seamlessly directed to the Jumbo site where all retailers share in benefits of the digital sales Jumbo Interactive President, of the regulatory requirements — registration, channel and increase foot traffic into their North America

46 WLA magazine | No. 40 | Spring 2014 ALL ROADS LEAD TO ROME IN 2014

WORLD LOTTERY

ROME SUMMIT NOVEMBER 2 – 5, 2014 All roads lead to Rome

WORLD LOTTERY SUMMIT NOVEMBER 2 – 5, 2014

ROME IS WAITING TO WELCOME YOU SO SAVE THE DATE!

Rome is rightfully considered the historical capital of the western world. This year, Rome will also become the capital of the lottery world as lottery professionals from around the globe converge on The Eternal City for the World Lottery Summit 2014 (WLS2014).

8LI;0%ERHLSWX0SXXSQEXMGELEZITYXXSKIXLIVEFYWMRIWWERHWSGMEPTVSKVEQJSV;07XLEX[MPPVI¾IGXEPPXLIUYEPMXMIW XLEXQEOI6SQIRSXSRP]EGMX][MXLEQEKRM½GIRXTEWXFYXEPWSSRIXLEXMWTVITEVIHJSVEKPSVMSYWJYXYVI Preparations are well under way for this once-in-a-lifetime experience. Come join us in Rome, Italy, from November 2 – 5, 2014 at the Cavalieri Convention Hotel, one of the most prestigious addresses in the city! www.wls2014.com

World Lottery Association Lottomatica Lange Gasse 20 Viale del Campo Boario, 56/D P.O. Box, CH- 4002 Basel 00154 Roma Switzerland Italia Phone: +41 61 284 1502 Phone: +39 06 518 991 Fax: +41 61 284 1350 Fax: +39 06 518 943 60 world-lotteries.org lottomatica.it CORPORATE NEWS CORPORATECORPORATE NEWS NEWS

Turnkey second chance marketing programs engage new players

GTECH’s second chance marketing programs leverage the equity of popular brands to win over loyal lottery players as well as to attract new players from younger demographics. Its $1,000,000 Caesars Jackpot instant ticket with unique VIP experiential second chance prizes and its complete, multifaceted Bejweled® and Plants vs. Zombies® promotional programs offering money-can’t-buy second chance VIP experiences are just two scintillating examples of GTECH’s branded licensed content strategy.

Second chance programs with unique con- commodated all these elements. The pro- Additionally, GTECH handled all the mer- sumer experiences offer lotteries an excellent gram centered on a unique experiential chandise prize procurement and fulfillment opportunity to diversify their game portfolio prize package and included: as well as travel arrangements for the win- and attract new players. As part of its wide ners. GTECH is also designing, managing, range of professional strategy solutions, r 4FDPOEDIBODFESBXJOHTGPSBMMFYQFOTFT and hosting the $1,000,000 Caesars Jackpot GTECH provides complete turnkey expe- paid VIP trips for winners plus guest to Party, to be held in Las Vegas for winners riential marketing campaigns that grab the Caesars Palace in Las Vegas. Benefits in- and their guests. Included are food, drink, attention of new players, generating excite- cluded travel, deluxe accommodations, and entertainment, plus cash prizes for each ment and entertainment, driving purchase, food and beverage credit, and spending player, and all 30 winners of this luxury trip and creating consumer loyalty. GTECH can money, plus attendance at an exclusive BSF HVBSBOUFFE UP XJO BU MFBTU 64 design, implement, and track promotional $1,000,000 Caesars Jackpot Party. One lucky winner will go home with at least programs to support your licensed games. r $BFTBSTCSBOEFE NFSDIBOEJTF QSJ[F US$100,000, with the chance to win up to It brings these programs, suitably packaged packs. US$1 million (US$1 million prize insured). and customized, to each local market. It then r "NVMUJNFEJBNBSLFUJOHBOEQSPNPUJPOT provides end-to-end service to support the campaign. The $1,000,000 Caesars Jackpot instant implementation of those solutions to increase ticket at the US$30 price point has per- bottom line profits. GTECH provided the $1,000,000 Caesars formed strongly for the Minnesota State Jackpot game itself, complemented by a rich Lottery, reversing a downward sales trend at Spectacular Caesars promotion oversized black and gold foil ticket with five this price point, with a 6% gain in sales com- revitalizes high price-point DBTJOPUIFNFE HBNFT DIBODFT UP XJO pared to the Lottery’s previous US$30 game. program and three US$1,000,000 instant top prizes. Like all of GTECH’s games and promotions, A spectacular example of a turnkey solution offered by GTECH is its $1,000,000 Caesars Jackpot program. When the Minnesota Lottery (U.S.) chose to reenergize instant ticket sales at the US$30 price point, it turned to GTECH and Caesars, a name synonymous with luxurious days, extrava- gant nights, and unparalleled gaming entertainment. The first licensed property the Minnesota Lottery has launched at the US$30 price point, this game was a natural fit, owing in part to the upscale value of the Caesars brand and its previous success in other jurisdictions.

An attitude and usage study conducted by GTECH identified promotions, large jackpots, second chance drawings, and merchandise prizes as the top drivers of increased spend. To ensure the success of the $1,000,000 Caesars Jackpot game, GTECH The name Caesars is synonymous with entertainment. GTECH’s custom Caesars second- created a comprehensive, luxury-themed chance promotion offers players a second chance to win a fabulous all-expenses paid trip program for the Minnesota lottery that ac- to Caesars Palace in Las Vegas to attend an exclusive $1,000,000 Caesars Jackpot Party.

48 WLA magazine | No. 40 | Spring 2014 CORPORATE NEWS CORPORATECORPORATE NEWS NEWS

the $1,000,000 Caesars Jackpot program can r #FKFXFMFE #MJU[ HBNFT GPS ZPVS MPUUFSZT stage containing cubes in the shape of a be completely customized and adapted to Facebook and other social sites. Bejeweled board will be revealed. Players meet your lottery’s specific needs. GTECH are then called up to open a cube of their will work with you to identify the best pa- GTECH’s end-to-end marketing program choice to reveal a prize amount. Whatever rameters for any event and put together a also offers money-can’t-buy experiential amount is revealed will be what the win- winning package for your players. prizes, such as: ner takes home. GTECH will work with you to customize game mechanics, such as Dazzling, multi-faceted r "TFDPOEDIBODF7*1USJQUIBUTIJOFTBT number and amounts of prizes, and levels promotional programs brightly as Bejeweled. GTECH will work of competition. They will also help iden- Multichannel marketing strategies are a with you to identify the best location for tify various funding and prize options, in- necessity in today’s markets, and GTECH the event and put together a once-in-a- cluding insuring the top prize. is at the forefront of both multichannel lifetime package for winners. The trip and cross-channel marketing techniques. includes transportation, VIP hotel accom- Live events GTECH has put together 100% turnkey modations, spending money, and custom- GTECH can also develop and host Bejeweled programs that will dazzle your players. For ized events for the weekend. or Plants vs. Zombies live events, as well as example, GTECH can work with PopCap® r "#FKFXFMFE(FN1BSUZ XIFSFFWFSZPOF tournaments at shopping centers, festivals, Games to customize a Bejeweled or Plants wins cash and someone might go home a and iconic venues across your jurisdiction. vs. Zombies program unique to your juris- millionaire! Parties can include full meals, Leverage the popularity of this alluring and diction. Nearly 30 lotteries have signed on to hors d’oeuvres, music, cocktails, or dancing fun brand! Bejeweled live events can al- bring these instant games to their jurisdic- – it’s your choice! Parties can take place in low those who purchase a Bejeweled instant tions, where they have enjoyed great success, your capital city, aboard a cruise ship, or at ticket to compete in a tournament or to en- indexing above average, and attracting mil- a different fabulous venue of your choice. ter into on-site drawings for prizes such lions of people to second chance websites. r #FKFXFMFE (FN (BNFT "U UIF QBSUZ B as Bejeweled games for multiple platforms,

Using Bejeweled – one of the top-10 selling games of all time – as a sample, GTECH offers a scintillating end-to-end marketing program, including:

r (BNFEFWFMPQNFOUBOEEFTJHO r " TFDPOE DIBODF XFCTJUF XIFSF QMBZFST submit codes from their Bejeweled ticket to be entered in second chance drawings. r $PNQMFUF TFDPOE DIBODF ESBXJOH NBO- agement, including prize procurement, inventory, and fulfillment, as well as player communication and winner notifica- tion. Prizes can include experiential prizes (see below for more information), tablet computers, related merchandise, or even “rare gems,” each with its own unique gameplay effect, to enhance the Bejeweled Blitz play experience and increase scores. GTECH will work with you to identify various funding and prize options for your second chance programs. r "DVTUPNNJDSPTJUFDPNQMFUFXJUIBQMBZ for-fun Bejeweled Blitz game and tournament where players compete to be on your lottery’s leaderboard. r 0OMJOF QMBZGPSGVO HBNF GPS EFTLUPQ and mobile devices, including tablets and Bejewled is one of the top 10 best-selling games of all time. GTECH can offer your lottery smartphones. a customized Bejeweled promotion unique to your jurisidiction.

WLA magazine | No. 40 | Spring 2014 49 CORPORATE NEWS CORPORATECORPORATE NEWS NEWS

licensed properties, including Plants vs. adults and extend it to a lottery product of- Zombies. fering. (Fifty-four percent of Bejeweled Blitz and 41% of Plants vs. Zombie players fall in- Innovative games and inventive second to the 18–34 age group, while 32% of Caesars chance programs enable lotteries to develop guests are ages 21–40.) By extending these new consumer value propositions and make programs across multiple channels, oppor- lottery more relevant to Generation Y and tunities abound to interact with and engage Mil len nials. Products such as Caesars, customers where they can be found today. Bejew eled, and Plants vs. Zombies provide a unique opportunity to take a well-established Plants vs. Zombies and Bejeweled are trade- brand especially popular among young marks of Electronic Arts Inc. gift cards, lottery tickets, and merchandise. GTECH can also develop and implement Bejeweled tournaments at retail, using the retailer’s advertising display screen and creating site-specific leaderboards. Players compete in tournaments for high-score bragging rights and small merchandise prizes.

GTECH can also work with your lottery to:

r $SFBUFDVTUPNSFUBJMQPJOUPGTBMFQSPNP- tions. r $SFBUFSFUBJMFSMPDBUPSNPCJMFBQQMJDBUJPOT r 5BLFZPVS#FKFXFMFEJOTUBOUUJDLFUTUPUIF next level with entertaining and stimulat- ing augmented reality. When scanned, a QR code on the ticket reveals an interactive how-to-play component or a video showcas- ing the game’s second chance promotion.

GTECH is also equipped to help you develop relevant and entertaining social media campaigns, such as:

r 'BDFCPPLBOENPCJMFi#FKFXFMFETDSBUDI game now available!” marketing messages to your lottery’s fans. r 8JOOFS BXBSFOFTT DBNQBJHOT UP SFBDI customers using your lottery’s Facebook and YouTube pages. r ĂFi-JLFUIF#MJOHu'BDFCPPLQSPNPUJPO In this promotion, a Bejeweled gem appears randomly on your Facebook page over a 60-day period. The first 20 likes each time it appears win a lottery gift. r 5XJUUFSUXFFUTQSPNPUJOHUJDLFUMBVODIFT r #FKFXFMFEUSJWJBRVFTUJPOT5XJUUFSUXFFUT where followers with correct answers will be randomly selected to receive merchandise prizes.

GTECH is happy to incorporate any or all of the above solutions to create a plan tailored to your jurisdiction’s needs and budget. All promotional components are modular and can be selected or modified at the lottery’s GTECH can offer a complete end-to-end marketing package based on other popular discretion. In addition, all of these ideas can licensed content, such as Plants vs. Zombies, that includes game development and design, be adapted to apply to other of GTECH’s game promotion, second chance draw management, and more.

50 WLA magazine | No. 40 | Spring 2014 LEARNING LEARNING CURVECURVE

▶ Addressing the integrity of sports risk and vulnerable to new threats. The es- Upcoming ▶ Regional market updates sence of good security is to remain watchful ▶ Combating fraud internationally: the move and up-to-date in relation to the constantly from ELMS to a global monitoring system evolving world of security hazards. Predators WLA seminars ▶ FIFA – “Organizing the World Cup”. are relentlessly inventive … so too must lot- June 22–25, 2014 tery security staff be in their responses. Sports betting seminar: In addition, the WLA, CIBELAE, and the EL Samba do Brasil! have been able to secure a limited number of This joint EL/WLA security and integrity Seminar in association with CIBELAE tickets for the Group C World Cup qualifica- seminar in Gdánsk will provide WLA mem- and the European Lotteries – Fortaleza, tion match between Greece and the Ivory bers with the opportunity to get up-to-the- Brazil Coast, to be held in Fortaleza on June 24! minute information about the latest Tickets are limited, so if you don’t want to developments in security and integrity from The WLA, CIBELAE, and the EL will be host- miss this unique opportunity of learning and experienced professionals, from both within ing a most exciting sports betting seminar in living sports, register for the seminar through and outside the lottery sector. Highlights of Fortaleza, Brazil, right during the middle of the the WLA website today! the seminar program include: 2014 FIFA World Cup. Football will undoubt- ▶ WLA Security Control Standard edly be the central topic of the seminar – espe- October 7–9, 2014 and certification cially in light of the dangers of match-fixing – but Security and integrity seminar: ▶ Retailer fraud and counterfeit fraud the marketing of sports and sports wagering Tackling threats for a safe and ▶ IT and information security will also receive prominent coverage. Reputed secure future! ▶ Business continuity and risk management speakers from within and beyond the lottery Seminar in association with the ▶ Cybercrime related issues. industry will tackle a seasonable range of sports European Lotteries, hosted by Totalizator betting-related topics, while our global suppli- Sportowy Sp. z.o.o. – Gdánsk, Poland Ensure your lottery stays ahead of the pack in ers will be challenged to deliver state-of-the- tackling security threats by registering for the art products to ensure we stay on the ball. Even with best-in-class security measures joint EL/WLA security and integrity seminar Highlights of the seminar program include: already in place a lottery will always be at through the WLA website today!

Advertisement OUR CONTRIBUTORS OUR CONTRIBUTORSOUR CONTRIBUTORS

Many thanks to our PLATINUM Contributors

Many thanks to our GOLD Contributors

WLA MAGAZINE is published by: The World Lottery Association Lange Gasse 20 P.O. Box CH-4002 Basel, Switzerland www.world-lotteries.org

Publication Director: Jean Jorgensen, WLA Executive Director Editor: Paul Peinado, WLA Communications Coordinator Contributing Editors: Matthew Spinks, Assistant Communications Coordinator; Patricia McQueen; and John Smellie. Print: Werner Druck & Medien AG, Basel, Switzerland Layout: 3satz GmbH, Thalwil, Switzerland

52 WLA magazine | No. 40 | Spring 2014 gtech.com GTECH is an advocate of socially responsible gaming. For more information visit gaming. For more GTECH is an advocate of socially responsible

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