PUBLIC GAMING INTERVIEW UPDATE on MSL in A study in overcoming adversity in a market disrupted by politicalPUBLIC & economic GAMING INTERVIEWSturmoil. By Evgeniy Vlasenko Vice President,Evgeniy MSL, LLC, Ukraine PGRI Introduction: Paul Jason visited with Mr. Vlasenko at the EL CongressVlasenko in Antwerp to get an update on Vice President, MSL LLC, Ukraine the progress made over the last three years since our last discussion.

Paul Jason: How have things Ukraine is the largest country in Europe by land mass, and has a population of 43 mil- changed since our last interview lion. UPDATE MSL is the state onlottery MSLoperator in Lottery Ukraine. It was in launched Ukraine: in 1970 to raise A studyof September in overcoming 2016? funds for the development of sports in the Soviet Union. That mission changed when the Evgeniy Vlasenko: We live in a challenging Ukraine became independent in 1991. MSL was originally an abbreviation for “Molod adversity in a market disrupted by politicaland dynamic& economic world. European markets turmoil. of Sportloto”, but is now the brand name. traditional are under pressure from AfterPGRI Ukraine Introduction: gained independence in 1991, there was a period of time when govern- non-licensed operators, especially in the ment regulatoryPaul Jason structures visited werewith not Mr. fully Vlasenko intact. There at the ELwere Congressno regulations in Antwerp and private to get an onlineupdate world. on the Specifically progress made to the over Ukraine the lastis operators were free to start lotteries, sell tickets and take in money, then close without three years since our last discussion. that in addition to unlicensed operators on paying out prizes. Public trust in lotteries was destroyed. In the year 2000, a regulatory Ukraine is the largest country in Europe by land mass, and has a population ofthe 43 internet, million. non-licensed MSL is the outlets state lotterythat offer system was implemented. Even so, and even though MSL always operated with integrity, VLT-like games are mushrooming in brick operator in Ukraine. It was launched in 1970 to raise funds for the development of sports in the Soviet Union. That the entire industry was tainted and it was very difficult for MSL to reestablish public and mortar venues. They may not be clas- trust andmission confidence. changed But when they succeeded,the Ukraine step becameby step, inindependent re-establishing in consumer 1991. MSL confi- was originallysified as slotan abbreviationmachines, but forthey “Molod deliver all dence Sportloto”,that its operations but is are now totally the transparentbrand name. and prize monies are paid out promptly the same functionality and player experience and theAfter games Ukraine always operatedgained independencewith integrity. Thein 1991, business there of lotterywas a reliesperiod not of just time on when government– so, in reality regulatory they are slot structures machines, were which not the confidencefully intact. of the There consumer. were Retail no regulations and advertising and partners private also operators need to bewere confident free to startare lotteries, illegal. And sell becausetickets theand lotterytake in market money, then that theclose time without and resources paying allocated out prizes. to lottery Public will generatetrust in a lotteries positive ROIwas fordestroyed. them, and In the hasyear been 2000, contracting a regulatory over the system last 5 was years imple in - that themented. lottery operator Even so, will and be aeven good though business MSL partner always in every operated way. with integrity, the entireUkraine industry under wasthe pressuretainted ofand non-licensed it was very Beforedifficult the political for andMSL militaryto reestablish turbulence public which trust began and in confidence.2014, when Russia But they succeeded,, step bywe step, have into spendre-establishing more and moreconsumer annexed and turned eastern Ukraine into a war zone, the market was growing of our limited resources, and time and confidence that its operations are totally transparent and prize monies are paideffort, out promptlynot for development and the games of the always market considerably.operated MSL with sales integrity. were increasing The atbusiness an annual of lottery rate of 50-80%relies not between just on 2010 the confidence of the consumer. Retail and advertising and 2013. Total revenue in 2013 was over 2.5 billion UAH (approx. $150 million but to protect the business and defend the partners also need to be confident that the time and resources allocated to lottery will generate a positive ROI for them, and euro today but twice that before the devaluation of the Ukrainian currency in 2015). principles which the WLA and EL member Amongthat classic the lotteries, lottery operator ranks will first be at a 30%good ofbusiness revenues, partner scratch cardsin every second way. at 24% lotteries stand for.

and growingBefore fast,the andpolitical Lotto andthird military at 6%. Sports-betting turbulence which and toto began is 40% in and2014, is the when fast- RussiaHave annexed Russian Crimea intrusions and turned and eastern est growingUkraine category. into a Only war 18% zone, of the the marketpopulation was in growingUkraine playsconsiderably. the lottery atMSL least sales wereinterference increasing at with an annual Ukraine rate dimin- of 50-80% once abetween year. That 2010 compares and 2013. to 70% Total in the revenue UK. Illegal in 2013 online was gambling over 2.5 is billionvast. There UAH (approx.ished $150 over million the last euro three today years? but twice that are morebefore than the 270 devaluation sites accessible of to the the Ukrainian Ukrainian customers. currency inThey 2015). are not Among properly classic lotteries, bingo ranks first at 30% of revenues, E. Vlasenko: The Crimea peninsula was regulatedscratch or taxed. cards second at 24% and growing fast, and Lotto third at 6%. Sports-bettingannexed and by and toto is is still 40% occupied and is by the Russia, fastest 95%growing of MSL’s category. sales are at Only land-based 18% of stores. the populationTransitioning in from Ukraine a state-owned plays the econ- lottery at andleast some once Eastern a year. Ukraine That comparesterritories toare 70% in omy tothe a capitalist UK. Illegal system onlineis a big gamblingtransition. isIt vast.is not Therejust a matter are moreof installing than 270 modern sites accessiblestill occupied.to the Ukrainian There is customers.no active warfare They are businessnot practices properly and regulated models. The or taxed. cultural adaptation as well as economic and logistical that is reported in the international press, transformation95% of MSL’s is not so sales easily are accomplished. at land-based Of course,stores. UkraineTransitioning is over twenty from afive state-owned years buteconomy people to continue a capitalist to die system on the is front a big into thetransition. process. The It iscultural not just transformation a matter of hasinstalling largely been modern accomplished business and practices so now and models.line. So, Theunfortunately, cultural veryadaptation little has as well as it is largely a matter of executing on fundamental business plans to develop new games, economic and logistical transformation is not so easily accomplished. Of course,changed. Ukraine In isaddition, over twenty trade fivewars continueyears into categories and distribution channels. which create new economic challenges the process. The cultural transformation has largely been accomplished and so now it is largely a matter of executing on Evgeniy Vlasenko has led MSL since 2011. for everyone. The additional risks posed fundamental business plans to develop new games, categories and distribution bychannels. trade wars and unrest interfere with NASPL 2019 Evgeniy Vlasenko has led MSL since 2011. investment into the economy including the lottery sector. Continued on page 45 Paul Jason: How have things changed pressure from non-licensed operators, machines, but they deliver all the same SEPTEMBER 17-21 since our last interview of September especially in the online world. Specifically 20 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2019 functionality and player experience – so, Hosted by the Arkansas Scholarship Lottery 2016? to the Ukraine is that in addition to in reality they are slot machines, which unlicensed operators on the internet, non- are illegal. And because the lottery market Evgeniy Vlasenko: We live in a licensed outlets that offer VLT-like games has been contracting over the last 5 years challenging and dynamic world. European are mushrooming in brick and mortar in Ukraine under the pressure of non- markets of traditional lotteries are under venues. They may not be classified as slot Continued on page 44 REGISTRATION NOW OPEN!

20 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2019 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2019 21 Lynne Roiter from page 18 It is already an international industry, Evgeniy Vlasenko from page 20 E. Vlasenko: If our new government pays attention to lotteries and takes the right government forwith global reach reiterating and a strong their professional confidence MSL will become 50 years old. It is a Group of the EL. Describe the mission, During the past year, several initiatives E.What Vlasenko: do you Membership think the infuture a multi- holds steps to effectively regulate the market, all ininfrastructure renewing my mandate to facilitate communicationslast February. good time to reflect on our history, our purpose, and agenda of this working group. were launched to support information and and initiatives across governmental jurisdic- jurisdictionwith respect lottery to isRussia on our respectingagenda. In game categoriesexperiences will start to and grow progress, quickly analyze the last awareness-raising activities, including a I take this opportunity to welcome the fact,the sovereigntyit is one of the ofpriorities. Ukraine? It would be within the next few years. E. Vlasenko: The International lottery two newtions and Boardcultures. members who joined the half a century and build the bridges that campaign to promote the importance of easierE. Vlasenko: if Ukraine It iswere a problem to become for awhich member and on-line lottery will increase their community is a small world. Almost board ofLottery directors already atemploys the end numerous of the fiscal will sustain growth for another 50 years. respecting set gaming limits; broadcasting women, including many who occupy ofthere the isEU. no Onready the solution. other hand, So we Euro need to shares in our portfolio as these categories everybody knows each other. Most are year, Mr. Jean-François Blais and Ms. Ann Therefore, in addition to new and very a web capsule explaining the operation positions of executive leadership. Millionsremain strong and EJP and have not arelax rather our conservative efforts are mostly affectedspecial by gamesnon-licensed with a lotopera- of prizes, we are active members of the WLA and regional MacDonald. tors which we hope and expect will be of chance; and adding a tab in our With the creation of WILL – Women’s approachto preserve towards independence admission and of freedom. new planning events and campaigns and new lottery associations, with well-established subject to more regulatory enforcement. online gaming site giving easy access to Initiative in Lottery Leadership – in 2017, members.Ukraine wants So we to have determine a long wayits own to go path to games that will bring attention to this lines of communication already in place. Thank you also to my colleagues on the which is to be governed peacefully by the And I would like to point out that responsible gaming content. the industry directly addressed the need fulfill all legal, regulatory, technical and How is the channelhistory and mix help likely us to to recollect a lot of management team for their valuable rule of law that is decided by the people for more women in influential roles. Rebecca financial requirements to make it happen. evolve? Land-basedinteresting retailevents com-and accomplishments everyone appreciates the important role collaboration and support unwavering. – like Western democracies. The 2014 The responsible marketing of our offer also Hargrove, President and CEO of the But the long journey always begins with a prised over 95%from theof salespast and a fewconnect them to our that PGRI plays in this system. This is a and 2019 elections clearly showed that includes training all our employees and Tennessee Education Lottery, heads up first step. years ago. Iscompany that changing? of today, to celebrate jackpot great achievement. Ithe wish initiative. to recognize In 2018, MM. the André Executive the people of Ukraine want the stability retailers. Significant efforts will continue to E. Vlasenko: Thewinners online and channel the social contin- projects supported Dumouchel andCommittee of the François European Tremblay, Lotteries whoAs- Howand openness is the product and respect mix likely for individual to evolve I strongly believe that people are the most be made to this end. ues to grow, especiallyby MSL. its Ourmobile proud sub-chan- history has special actedsociation respectively as endorsed WILL Corporate to operate Vice at three overrights the of nextWestern-style three years? democracies. In valuable asset of any company, even more nel. As to purelymeaning on-line todaygames, because their share we need to show President,key levels: inResources Human networking, training, Resources fact, we do not blame Russian people and important than brand equity. I see the role The management of video lottery retailers E. Vlasenko: If our new government pays is still small, mostlythe role due of to the the Lottery presence in ofsociety and why and inspiration.President of With operations this action, for our WILL video think they probably want the same thing! of the EL Education Working Group as was reinforced with the adoption of attentionInstead, we to differentiatelotteries and takesRussian the peopleright illegals. we are different from gambling companies. lotterybecame network a truly international and bingo. Theyprogram. retired providing the tools to help people be the our ALV Action Plan. In addition to stepsfrom toRussian effectively official regulate politics the andmarket, their all atStéphane the beginning Pallez, (CEO of the of 2019-2020 Française desfiscal jeux) Do you haveIn a ourproblem last interview with the you mentioned best they can be, optimize performance reconfiguring the network, now comprised gameunfriendly categories policy will towards start to Ukraine. grow quickly year.and Jutta I thank Buyse them for (Deputy their Director important of EL) are bet-on-the-outcomethat the Ministry model of like Finance practically for the benefit of their careers and for of less than 9,900 ALVs, we strengthened spearheading the Initiative in within the next few years. Sports betting contribution to Loto-Québec. How has your product mix ? withdrew from regulation of the lottery the benefit of the enterprise stakeholders. enforcement of our responsible marketing Europe. Sue van der Merwe (Managing and on-line lottery will increase their shares Investing in education and personal changed over the last three years? E. Vlasenko: Lottolandmarket which so far led is notto chaos active and a decrease code that all lottery video retailers must Director Lotteries & , Tabcorp) is in our portfolio as these categories are development is key to making this happen. The excellent work of all the staff here. Maybe theyof thesee thatlegal their lottery offer market. is not What has respect. The Government also approved doing the same in Asia-Pacific; and Rhita mostlyE. Vlasenko: affected Our by lotterynon-licensed Zabava operators is the The development of human potential of Loto-Québec must also be underlined. competitive to thechanged ones providedsince then? by illegals Loto-Québec’s new socio-economic criteria Lahrou (La Marocaine des Jeux et des Sports whichmost popular we hope game and expectover the will last be twenty subject requires investment. The EL wants to helps The success of the past year is really that already operate in Ukraine. that have to be met before placing an ALV, MDJS in Africa. WILL’s mission is to toyears. more It regulatoryis a Sunday enforcement. morning bingo show. E. Vlasenko: Not that much has changed. its members get the most out of every attributable to the professionalism and We will continue to invest in it to main- Yes, we have a lot of issues with the un- which include the bar not being in a sector drive business growth through support- The market still waits for the new licensing dollar they invest in their people. The commitment of our employees. I am very Howtain its is positionthe channel as the mix market likely leader.to evolve? And protected online sphere of Ukraine - the identified as materially deprived by the ing the advancement of women into top terms that establish clear, unambiguous courses of EL University are free of charge grateful to them. Land-basedterminal instant retail tickets comprised rank oversecond 95% today, of players can bet or play online -style National Institute of Public Health. positions of management, leadership, and and enforceable rules for on-line sales, and to members. We conduct 2 types of courses responsibility. saleswhich a fewwe believeyears ago. is a goodIs that success changing? for that games on numerous sites which have no Ukrainian registration.protection This of theis frustrating market from illegals. First and are preparing a third one for different Our support for various philanthropic Finally,WILL’s I would mentor/mentee like to say programthank you was category of games. E. Vlasenko: The online channel continues as the country sufferswe need a propershortage regulatory of cash, documents to levels of experience and expertise. causes has continued. Our employees have tolaunched our customers; in the U.S. appreciation in 2018 and for in theEurope toAre grow, draw especially games its decliningmobile sub-channel. as a has to take IMFbe credits issued; every and year,second and we il- need measures once again been generous by contributing on June 5 in Prague. Our intention is to facilitate knowledge confidence they place in us motivates us to Aspercentage to purely on-line of total games, sales? their share is legal gambling isto justmake taking sure moneythat they out are of followed. Until to the All Winners campaign, for the surpassMay our Scheve goals. Reardon, Executive Director sharing, best practices, train on how to stillE. Vlasenko: small, mostly Number due to games the presence sales are of the country. that is done, I do not expect investment to benefit of Centraide, Partenaire Santé- of the Missouri Lottery, captured the spirit handle difficult situations by using actual illegals.stable but due to the growth of other game be forthcoming from the shareholders or Québec, the Canadian Red Cross, Quebec Lynneof WILL Roiter in words that would resonate with What are some of the most i case studies and industry leaders who have the many researchers who have studied the categories with higher dynamics and more multinationals like IGT or SGI into the Division, and the Harvest Organization. President and CEO, Loto-Québec Do you have a problem with the bet-on- nteresting initiatives that MLS is experienced the whole range of lottery women in leadership equation: “Diversity entertainment-value, draw games as a Ukrainian market. the-outcome model like Lottoland? pursuing now and over the next business challenges, as well as formal Proactive Improvements should be seen as a core value of any business percentage of total sales is declining. 18 months? A new President was recently elected in education for new employees to make We continued the improvement and and a vital tool for a multi-billion dollar Bingo, though, has been growing over the E. Vlasenko: Lottoland so far is not active E. Vlasenko: Ukraine. And already there are a lot of sure the terms and EL standards, like harmonization of our procedures. The industry that provides millions to beneficia- last three years. So overall, draw game sales Within the next 18 months here. Maybe they see that their offer is not MSL will becomenew 50 faces years among old. It top is a state good positions. How RG, Security, etc., and the values of the goal is to have a convergent offer, which ries around the world.” are in a good shape. competitive to the ones provided by illegals time to reflect doon youour thinkhistory, it willour experi-change gambling in Association have the same meaning across meets player expectations and habits WILL is fueled by financial support from thatDo youalready participate operate in Ukraine.in a big multi- ences and progress,general analyze and lotteriesthe last halfin particular? the world - and to encourage the adoption and to be more efficient. In particular, JUMBO, The European Lottery Associa- state draw game like Euro Millions tion, IGT, Scientific Games, INTRALOT, Yes, we have a lot of issues with the a century and build the bridges that will of these values throughout the industry! I improvements have been made to our slot or EuroJackpot? sustain growth E.for Vlasenko: another 50 Gambling years. There- is forbidden Pollard Banknote, the North American State unprotected online sphere of Ukraine - the also see this as only the beginning. There machine park, at our online gaming site, fore, in additionin to Ukraine new and since very 2009. special So those who and Provincial Lottery Association, and playersE. Vlasenko: can bet Membership or play online in casino-style a multi- is incredible potential for the EL to be a our lottery kiosks and in the prize payment games with a lotoperate of prizes, are wein theare “greyplanning zone”. Lottery is many others. Money matters, of course, but gamesjurisdiction on numerous lottery is sites on ourwhich agenda. have Inno positive force in the industry by supporting process. events and campaignsnot classified and new as gamesgambling. that It is regulated no more so than changes in belief systems Ukrainianfact, it is one registration. of the priorities. This is It frustrating would be as its members’ ability to develop the talent easier if Ukraine were to become a member will bring attentionaccording to this to history the Law and on help Lotteries. These In recent years, we have assured the control regarding the importance of women, ethnic the country suffers a shortage of cash, has and capabilities of the thousands of of the EU. On the other hand, Euro Mil- us to recollect alaws lot of without interesting license events terms are expected of expenses and we continue to do so. minorities, and CSR in the conduct of to take IMF credits every year, and illegal people who work for the benefit of good lions and EJP have a rather conservative and accomplishmentsfor last fromseven the years. past If and the new government The $ 20 million decline in our expenses business. gambling is just taking money out of the causes provided by lottery. I see a lot of With WILL, a potent vehicle to smooth approach towards admission of new mem- connect them toteam our findscompany time of to today, address these issues that compared to the previous year - which also country. opportunities in this area of EL support a path for women to achieve their full bers. So we have a long way to go to fulfill to celebrate jackpotaffect winners the sector and ofthe lotteries, social the proper and to its members. The next step is to collect showed a decline from the prior year - is projects supported by MSL. Our proud potential, along with the efforts of everyone Whatall legal, are regulatory, some of the technical most interesting and financial effective regulatory framework based on feedback from the members to understand evidence of our fiscal discipline. history has special meaning today because in our industry, the lottery industry can initiativesrequirements that to MLS make is itpursuing happen. now But andthe EL\WLA standards and expertise can be their training needs and reflect accordingly. we need to show the role of the Lottery Thanks consolidate its role as a beacon of light in overlong thejourney next always18 months? begins with a first step. implemented quickly and would boost the So the works continues and the show must in society and whyLottery we aremarket. different from I thank the board of directors and the the New Era of organizational inclusiveness, go on! exemplary corporate citizenship, and optimal E.How Vlasenko: is the Withinproduct the mix next likely 18 months to gambling companies. service to all its stakeholders. evolve over the next three years? You are chairContinued of the on Education page 50 Working

PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2019 44 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2019 JULY/AUGUST 2019 • PublicGaming.com 45 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2019 45 Lynne Roiter from page 18 It is already an international industry, Evgeniy Vlasenko from page 20 E. Vlasenko: If our new government pays attention to lotteries and takes the right government forwith global reach reiterating and a strong their professional confidence MSL will become 50 years old. It is a Group of the EL. Describe the mission, During the past year, several initiatives E.What Vlasenko: do you Membership think the infuture a multi- holds steps to effectively regulate the market, all ininfrastructure renewing my mandate to facilitate communicationslast February. good time to reflect on our history, our purpose, and agenda of this working group. were launched to support information and and initiatives across governmental jurisdic- jurisdictionwith respect lottery to isRussia on our respectingagenda. In game categoriesexperiences will start to and grow progress, quickly analyze the last awareness-raising activities, including a I take this opportunity to welcome the fact,the sovereigntyit is one of the ofpriorities. Ukraine? It would be within the next few years. Sports betting E. Vlasenko: The International lottery two newtions and Boardcultures. members who joined the half a century and build the bridges that campaign to promote the importance of easierE. Vlasenko: if Ukraine It iswere a problem to become for awhich member and on-line lottery will increase their community is a small world. Almost board ofLottery directors already atemploys the end numerous of the fiscal will sustain growth for another 50 years. respecting set gaming limits; broadcasting women, including many who occupy ofthere the isEU. no Onready the solution. other hand, So we Euro need to shares in our portfolio as these categories everybody knows each other. Most are year, Mr. Jean-François Blais and Ms. Ann Therefore, in addition to new and very a web capsule explaining the operation positions of executive leadership. Millionsremain strong and EJP and have not arelax rather our conservative efforts are mostly affectedspecial by gamesnon-licensed with a lotopera- of prizes, we are active members of the WLA and regional MacDonald. tors which we hope and expect will be of chance; and adding a tab in our With the creation of WILL – Women’s approachto preserve towards independence admission and of freedom. new planning events and campaigns and new lottery associations, with well-established subject to more regulatory enforcement. online gaming site giving easy access to Initiative in Lottery Leadership – in 2017, members.Ukraine wants So we to have determine a long wayits own to go path to games that will bring attention to this lines of communication already in place. Thank you also to my colleagues on the which is to be governed peacefully by the And I would like to point out that responsible gaming content. the industry directly addressed the need fulfill all legal, regulatory, technical and How is the channelhistory and mix help likely us to to recollect a lot of management team for their valuable rule of law that is decided by the people for more women in influential roles. Rebecca financial requirements to make it happen. evolve? Land-basedinteresting retailevents com-and accomplishments everyone appreciates the important role collaboration and support unwavering. – like Western democracies. The 2014 The responsible marketing of our offer also Hargrove, President and CEO of the But the long journey always begins with a prised over 95%from theof salespast and a fewconnect them to our that PGRI plays in this system. This is a and 2019 elections clearly showed that includes training all our employees and Tennessee Education Lottery, heads up first step. years ago. Iscompany that changing? of today, to celebrate jackpot great achievement. Ithe wish initiative. to recognize In 2018, MM. the André Executive the people of Ukraine want the stability retailers. Significant efforts will continue to E. Vlasenko: Thewinners online and channel the social contin- projects supported Dumouchel andCommittee of the François European Tremblay, Lotteries whoAs- Howand openness is the product and respect mix likely for individual to evolve I strongly believe that people are the most be made to this end. ues to grow, especiallyby MSL. its Ourmobile proud sub-chan- history has special actedsociation respectively as endorsed WILL Corporate to operate Vice at three overrights the of nextWestern-style three years? democracies. In valuable asset of any company, even more nel. As to purelymeaning on-line todaygames, because their share we need to show President,key levels: inResources Human networking, training, Resources fact, we do not blame Russian people and important than brand equity. I see the role The management of video lottery retailers E. Vlasenko: If our new government pays is still small, mostlythe role due of to the the Lottery presence in ofsociety and why and inspiration.President of With operations this action, for our WILL video think they probably want the same thing! of the EL Education Working Group as was reinforced with the adoption of attentionInstead, we to differentiatelotteries and takesRussian the peopleright illegals. we are different from gambling companies. lotterybecame network a truly international and bingo. Theyprogram. retired providing the tools to help people be the our ALV Action Plan. In addition to stepsfrom toRussian effectively official regulate politics the andmarket, their all atStéphane the beginning Pallez, (CEO of the of 2019-2020 Française desfiscal jeux) Do you haveIn a ourproblem last interview with the you mentioned best they can be, optimize performance reconfiguring the network, now comprised gameunfriendly categories policy will towards start to Ukraine. grow quickly year.and Jutta I thank Buyse them for (Deputy their Director important of EL) are bet-on-the-outcomethat the Ministry model of like Finance practically for the benefit of their careers and for of less than 9,900 ALVs, we strengthened spearheading the Initiative in within the next few years. Sports betting contribution to Loto-Québec. How has your product mix Lottoland? withdrew from regulation of the lottery the benefit of the enterprise stakeholders. enforcement of our responsible marketing Europe. Sue van der Merwe (Managing and on-line lottery will increase their shares Investing in education and personal changed over the last three years? E. Vlasenko: Lottolandmarket which so far led is notto chaos active and a decrease code that all lottery video retailers must Director Lotteries & Keno, Tabcorp) is in our portfolio as these categories are development is key to making this happen. The excellent work of all the staff here. Maybe theyof thesee thatlegal their lottery offer market. is not What has respect. The Government also approved doing the same in Asia-Pacific; and Rhita mostlyE. Vlasenko: affected Our by lotterynon-licensed Zabava operators is the The development of human potential of Loto-Québec must also be underlined. competitive to thechanged ones providedsince then? by illegals Loto-Québec’s new socio-economic criteria Lahrou (La Marocaine des Jeux et des Sports whichmost popular we hope game and expectover the will last be twenty subject requires investment. The EL wants to helps The success of the past year is really that already operate in Ukraine. that have to be met before placing an ALV, MDJS in Africa. WILL’s mission is to toyears. more It regulatoryis a Sunday enforcement. morning bingo show. E. Vlasenko: Not that much has changed. its members get the most out of every attributable to the professionalism and We will continue to invest in it to main- Yes, we have a lot of issues with the un- which include the bar not being in a sector drive business growth through support- The market still waits for the new licensing dollar they invest in their people. The commitment of our employees. I am very Howtain its is positionthe channel as the mix market likely leader.to evolve? And protected online sphere of Ukraine - the identified as materially deprived by the ing the advancement of women into top terms that establish clear, unambiguous courses of EL University are free of charge grateful to them. Land-basedterminal instant retail tickets comprised rank oversecond 95% today, of players can bet or play -style National Institute of Public Health. positions of management, leadership, and and enforceable rules for on-line sales, and to members. We conduct 2 types of courses responsibility. saleswhich a fewwe believeyears ago. is a goodIs that success changing? for that games on numerous sites which have no Ukrainian registration.protection This of theis frustrating market from illegals. First and are preparing a third one for different Our support for various philanthropic Finally,WILL’s I would mentor/mentee like to say programthank you was category of games. E. Vlasenko: The online channel continues as the country sufferswe need a propershortage regulatory of cash, documents to levels of experience and expertise. causes has continued. Our employees have tolaunched our customers; in the U.S. appreciation in 2018 and for in theEurope toAre grow, draw especially games its decliningmobile sub-channel. as a has to take IMFbe credits issued; every and year,second and we il- need measures once again been generous by contributing on June 5 in Prague. Our intention is to facilitate knowledge confidence they place in us motivates us to Aspercentage to purely on-line of total games, sales? their share is legal gambling isto justmake taking sure moneythat they out are of followed. Until to the All Winners campaign, for the surpassMay our Scheve goals. Reardon, Executive Director sharing, best practices, train on how to stillE. Vlasenko: small, mostly Number due to games the presence sales are of the country. that is done, I do not expect investment to benefit of Centraide, Partenaire Santé- of the Missouri Lottery, captured the spirit handle difficult situations by using actual illegals.stable but due to the growth of other game be forthcoming from the shareholders or Québec, the Canadian Red Cross, Quebec Lynneof WILL Roiter in words that would resonate with What are some of the most i case studies and industry leaders who have the many researchers who have studied the categories with higher dynamics and more multinationals like IGT or SGI into the Division, and the Harvest Organization. President and CEO, Loto-Québec Do you have a problem with the bet-on- nteresting initiatives that MLS is experienced the whole range of lottery women in leadership equation: “Diversity entertainment-value, draw games as a Ukrainian market. the-outcome model like Lottoland? pursuing now and over the next business challenges, as well as formal Proactive Improvements should be seen as a core value of any business percentage of total sales is declining. 18 months? A new President was recently elected in education for new employees to make We continued the improvement and and a vital tool for a multi-billion dollar Bingo, though, has been growing over the E. Vlasenko: Lottoland so far is not active E. Vlasenko: Ukraine. And already there are a lot of sure the terms and EL standards, like harmonization of our procedures. The industry that provides millions to beneficia- last three years. So overall, draw game sales Within the next 18 months here. Maybe they see that their offer is not MSL will becomenew 50 faces years among old. It top is a state good positions. How RG, Security, etc., and the values of the goal is to have a convergent offer, which ries around the world.” are in a good shape. competitive to the ones provided by illegals time to reflect doon youour thinkhistory, it willour experi-change gambling in Association have the same meaning across meets player expectations and habits WILL is fueled by financial support from thatDo youalready participate operate in Ukraine.in a big multi- ences and progress,general analyze and lotteriesthe last halfin particular? the world - and to encourage the adoption and to be more efficient. In particular, JUMBO, The European Lottery Associa- state draw game like Euro Millions tion, IGT, Scientific Games, INTRALOT, Yes, we have a lot of issues with the a century and build the bridges that will of these values throughout the industry! I improvements have been made to our slot or EuroJackpot? sustain growth E.for Vlasenko: another 50 Gambling years. There- is forbidden Pollard Banknote, the North American State unprotected online sphere of Ukraine - the also see this as only the beginning. There machine park, at our online gaming site, fore, in additionin to Ukraine new and since very 2009. special So those who and Provincial Lottery Association, and playersE. Vlasenko: can bet Membership or play online in casino-style a multi- is incredible potential for the EL to be a our lottery kiosks and in the prize payment games with a lotoperate of prizes, are wein theare “greyplanning zone”. Lottery is many others. Money matters, of course, but gamesjurisdiction on numerous lottery is sites on ourwhich agenda. have Inno positive force in the industry by supporting process. events and campaignsnot classified and new as gamesgambling. that It is regulated no more so than changes in belief systems Ukrainianfact, it is one registration. of the priorities. This is It frustrating would be as its members’ ability to develop the talent easier if Ukraine were to become a member will bring attentionaccording to this to history the Law and on help Lotteries. These In recent years, we have assured the control regarding the importance of women, ethnic the country suffers a shortage of cash, has and capabilities of the thousands of of the EU. On the other hand, Euro Mil- us to recollect alaws lot of without interesting license events terms are expected of expenses and we continue to do so. minorities, and CSR in the conduct of to take IMF credits every year, and illegal people who work for the benefit of good lions and EJP have a rather conservative and accomplishmentsfor last fromseven the years. past If and the new government The $ 20 million decline in our expenses business. gambling is just taking money out of the causes provided by lottery. I see a lot of With WILL, a potent vehicle to smooth approach towards admission of new mem- connect them toteam our findscompany time of to today, address these issues that compared to the previous year - which also country. opportunities in this area of EL support a path for women to achieve their full bers. So we have a long way to go to fulfill to celebrate jackpotaffect winners the sector and ofthe lotteries, social the proper and to its members. The next step is to collect showed a decline from the prior year - is projects supported by MSL. Our proud potential, along with the efforts of everyone Whatall legal, are regulatory, some of the technical most interesting and financial effective regulatory framework based on feedback from the members to understand evidence of our fiscal discipline. history has special meaning today because in our industry, the lottery industry can initiativesrequirements that to MLS make is itpursuing happen. now But andthe EL\WLA standards and expertise can be their training needs and reflect accordingly. we need to show the role of the Lottery Thanks consolidate its role as a beacon of light in overlong thejourney next always18 months? begins with a first step. implemented quickly and would boost the So the works continues and the show must in society and whyLottery we aremarket. different from I thank the board of directors and the the New Era of organizational inclusiveness, go on! exemplary corporate citizenship, and optimal E.How Vlasenko: is the Withinproduct the mix next likely 18 months to gambling companies. service to all its stakeholders. evolve over the next three years? You are chairContinued of the on Education page 50 Working

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In our last interview you mentioned sector of lotteries, the proper and effective that the Ministry of Finance prac- regulatory framework based on EL\WLA tically withdrew from regulation standards and expertise can be implemented of the lottery market which led to quickly and would boost the Lottery market. chaos and a decrease of the legal lottery market. What has changed You are chair of the Education since then? Working Group of the EL. Describe E. Vlasenko: Not that much has changed. A new President was recently the mission, purpose, and agenda The market still waits for the new licensing elected in Ukraine. And already of this working group. terms that establish clear, unambiguous there are a lot of new faces among E. Vlasenko: The International lottery and enforceable rules for on-line sales, and top state positions. How do you community is a small world. Almost ev- protection of the market from illegals. First think it will change gambling in erybody knows each other. Most are active we need proper regulatory documents to general and lotteries in particular? members of the WLA and regional lottery be issued; and second we need measures E. Vlasenko: Gambling is forbidden in associations, with well-established lines of to make sure that they are followed. Until Ukraine since 2009. So those who operate communication already in place. And I that is done, I do not expect investment to are in the “grey zone”. Lottery is not classi- would like to point out that everyone appre- be forthcoming from the shareholders or fied as gambling. It is regulated according ciates the important role that PGRI plays in multinationals like IGT or SGI into the to the Law on Lotteries. These laws with- this system. This is a great achievement. Ukrainian market. out license terms are expected for last seven I strongly believe that people are the years. If the new government team finds most valuable asset of any company, even time to address these issues that affect the more important than brand equity. I see the role of the EL Education Working Group Post-PASPA continued from page 41 as providing the tools to help people be the best they can be, optimize performance for The following jurisdic- and does offer betting on sports. There are the benefit of their careers and for the ben- other tribal in the state that may tions have no legislative efit of the enterprise stakeholders. Investing attempt to follow the lead of the Tamya measures under consider- in education and personal development is Nation. ation as of this writing: key to making this happen. The develop- These states have Alaska ment of human potential requires invest- ment. The EL wants to helps its members authorized sports gambling, Florida Idaho get the most out of every dollar they invest but have not yet in their people. The courses of EL Uni- operationalized it: Nebraska Wisconsin versity are free of charge to members. We New York – New York is wrangling Wyoming conduct 2 types of courses and are preparing through differing opinions on mobile betting Utah a third one for different levels of experience platforms and requests for integrity fees by In Utah, a change in the state constitu- and expertise. sports leagues. A public comment period on tion would be required to legalize betting; Our intention is to facilitate knowledge rules and regulations set forth by the state that is very unlikely. sharing, best practices, train on how to gaming commission concluded in late May. All the remaining states are in varying handle difficult situations by using actual Oregon – The Oregon Lottery in 1989 stages of considering legislation to authorize case studies and industry leaders who have created an NFL parlay game that was exempt betting. experienced the whole range of lottery busi- from PASPA, but the game was discontinued Analysts estimate that 20-25 states will ness challenges, as well as formal education because of pressure from sports leagues and have fully operational sports betting by 2022, for new employees to make sure the terms the NCAA (the collegiate governing body). and that a dozen others will follow as lessons and EL standards, like RG, Security, etc., Now, 30 years later, the Oregon Lottery will learned are gleaned from the early-adopter and the values of the Association have the offer sports wagering through a mobile app states. same meaning across the world - and to just in time for the 2019 NFL season. As more states legalize sports betting, the encourage the adoption of these values Arkansas – Betting will begin in early question will be raised regarding whether throughout the industry! I also see this summer federal legislation is needed to establish a as only the beginning. There is incredible The tax rate is 15 percent on the first baseline of standards. The Sports Wagering potential for the EL to be a positive force $150 million in GGR and 20 percent beyond Market Integrity Act of 2018 was introduced in the industry by supporting its members’ that figure. There is no restriction on bets in the U.S. Senate last year, but the bill ability to develop the talent and capabilities involving the state’s college teams. stalled. It called for minimum age require- of the thousands of people who work for the Tennessee – This state’s new law has an ments, mechanisms to detect illegal betting benefit of good causes provided by lottery. effective date of July 1. Tax rate is 20 percent activity, and the earmarking of money to I see a lot of opportunities in this area of of GGR. fund gambling addiction programs. EL support to its members. The next step Washington, D.C. – Sports betting One thing is certain: the PASPA dam has is to collect feedback from the members to already has received mayoral approval, but burst and the flow of sports betting will only understand their training needs and reflect the “on” switch awaits a U.S. Congressional increase. accordingly. So the works continues and the review since the law impacts D.C.’s budget. show must go on!

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