November/December 2018 • How Technology Shapes the future of Gaming in Retail • JUMBO Funds WILL $50,000 Scholarship • Lottery in Latin America, Caribbean, Asia-Pacific
FEATURED INTERVIEWS
Thank you Jean-Luc for your Leadership and Service
Seah Chin Siong Chief Executive Officer, Singapore Pools limited Chair of Asia-Pacific Lottery Association
Jean-Luc Moner-Banet Luis Alberto Gama Hernández Chief Executive Officer, National Director of Lotteries and Pools of Société de la Loterie de la Suisse Romande the Oriental Republic of Uruguay President of the Ibero-American Corporation President of the World Lottery Association (WLA) of Lotteries and State Bets (Cibelae) 2 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 3 DEPARTMENTS 10 | From the Publisher Paul Jason
12 | Women’s Initiative in Lottery Leadership (WILL) Publisher & JUMBO launches the WILL Scholarship Fund with $50,000 Donation Chief Executive Officer Paul Jason 52 | Photo Collage: NASPL [email protected] North American State & Provincial Lottery Association in Cleveland, Ohio President 55 | Photo Collage: Lottery Industry Susan Jason Hall of Fame Induction Ceremony [email protected] Brand and Design 56 | Photo Collage: Global Gaming Expo (G2E) in Las Vegas Lucky Rabbit Studio 57 | Photo Collage: EL (European Lottery Association) Honored Founders Industry Days in Prague Doris & Duane Burke Contact Information 60 | Pulse of the Industry T: +425.449.3000 Synopsis of Recent Industry News F: +206.374.2600
For email address changes, subscription requests and requests to be placed on our e-Newsletter distribution FEATURED INTERVIEWS list, contact: [email protected] PGRI, Inc. 14 | The Lottery Industry is operated at the jurisdictional level. 218 Main Street, #203 But the issues we face are global. Kirkland, WA 98033 Jean-Luc Moner-Banet PublicGaming.com Chief Executive Officer, Société de la Loterie de la Suisse Romande President of the World Lottery Association (WLA) Subscriptions Annual Public Gaming 22 | The digital and online connection with the consumer International magazine as the universal key to sustainability subscription rates: Luis Alberto Gama Hernández United States: $145 USD National Director of Lotteries and Pools of the Oriental Republic of Uruguay Canada & Mexico: $160 USD President of the Ibero-American Corporation of Lotteries and State Bets All other countries: $225 USD (CIBELAE) Public Gaming 24 | Integrating games-of-chance, social responsibility, International Magazine and a commitment to Community Published six times a year and Seah Chin Siong distributed to readers all around Chief Executive Officer, Singapore Pools (Private) Limited the world. Electronic version is Chair of Asia-Pacific Lottery Association (APLA) e-mailed and is also available on our news website: PublicGaming.com.
November/December 2018 Volume 45, Issue 6 ©2018 all rights reserved. Public Gaming Research Institute cISSN: 1042-1912
4 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 5 FEATURED ARTICLES Visit Our Family 28 | 10 Games to Experience Now Scientific Games Corporation Of Websites
30 | Stepping Up to Stay Ahead: PUBLIC Sustainability within and beyond the gaming industry GAMINGGAMING IGT PGPublicGaming.comRI 32 | Beyond GLI’s Latin American and industry news & information Caribbean Regulators Roundtable: PGRITalks.com Charting a Course Toward Industry Modernization videos of conference presentations in Latin America and the Caribbean PublicGaming.org Gaming Laboratories International (GLI) PGRI conference information PGRIDigitalLibrary.com 35 | From Physical to Digital: magazine archive of past issues How technology shapes the future of Gaming in Retail INTRALOT S.A. PGRIDirectory.com listing of lotteries and vendors 40 | Lottery Success: A Kaleidoscope of Possibilities PGRIAwards.com Pollard Banknote limited Showcase of industry honorees recognized by the 42 | Growing the Kentucky Lottery’s Instant Games Lottery Industry Hall of Fame Scientific Games Corporation PGRI Lifetime Achievement Award 46 | Security and Non-repudiation in Electronic Sharp Award for Good Causes Draw Systems (EDS) Lottery Industry Statesman PGRI Interviews Helena Pereira, Marketing Director of Szrek2Solutions and Stateswoman Award Rebecca Hargrove Mentorship Award 48 | Lottery Explodes into the World of Casino Gaming JCM Collaboration Award 49 | Kambi Commitment to Regulated Markets Pays off for its Partners and Players PUBLIC GAMING DAILY NEWS DIGEST 50 | Abacus in-lane: PGRISubscribe To Our The lottery point of sale whose time has come Free Digital Newsletters Lottery Everywhere by Abacus Receive our daily newsletters at no charge, published 5 times a week 51 | On-property sports betting: laying the to bring you the latest breaking groundwork for greater US success news in the global lottery industry. SBTech Send an e-mail to: [email protected] with “add to Daily Digest list” in the subject line.
6 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 7
From the Publisher
he World Lottery Summit (WLS) And a very special thanks to everyone Rheinland-Pfalz in Germany has just convenes on November 18 in who participated at PGRI Lottery Expo prevailed in a lawsuit against a “Gibraltar- Buenos Aires. This will be a very NYC and especially to our presenters. The based operator which sells bets on the Tspecial event. First and foremost is the audience and I so appreciate the excellence outcome of the lottery draw”. Oddly, the opportunity to honor the service and and hard work that went into your presen- news story does not state who the operator leadership of our current WLA president, tations. And honestly, I have been told by is, but Lottoland is based in Gibraltar and Jean-Luc Moner-Banet. Jean-Luc’s six everyone that your extra efforts paid off and sells bets on the outcome of the lottery. In years of tireless dedication have produced made this the best Lottery Expo ever! any event, it is great news that governments an association that is poised to continue to are taking legal action to prevent online Mike Veverka, Brian shape the course of this industry. We are Thank you to criminality and violation of gambling laws Roberts, and Team JUMBO for your pleased to feature an in-depth interview and regulations. most generous donation of $50,000 to with Jean-Luc in this issue in which we fund the JUMBO WILL Scholarship review the issues of today, and discuss the . Now comes the next step. Fines and legal future of an industry in transition. What a tremendous gesture that will make action against those who violate the laws a huge difference to many talented and need to be enforced in order to be effective. We feature two other interviews with deserving women in leadership. WILL The Czech government, for instance, has world-class industry leaders. Luis Alberto is marching onward and upward. Read levied over $20 million USD (CZK455 Gama Hernández was just elected to the about it on page 12. The next network- million) in fines against illegal gambling Lottery Industry Hall of Fame and will be ing Event will be at WLS Buenos Aires, operators. But out of $20 million in fines, inducted on November 20 at a ceremony immediately following the Hall of Fame they have collected only $10,750! The at WLS Buenos Aires. Our discussion induction ceremony. problem is that some jurisdictions (possibly spans regional and global issues as well including places like Curacao, Cyprus, as the industry issues most relevant to his It appears that we may be moving to a next Malta, and Gibraltar) do not respect jurisdiction of Uruguay. Also featured is stage of regulatory actions in Europe. Legal the laws of other countries and refuse to a wonderful interview with Seah Chin decisions and judgements are affirming the domesticate judgments against companies Siong, CEO of Singapore Pools. Chin rights of governments to prohibit illegality which are based in their jurisdiction. If Siong was recently elected to be Chair on the internet. The next stage will be illegal operators are given safe harbor, of the Asia-Pacific Lottery Association installing mechanisms that enable those they will be able to continue to violate the (APLA). In a nice sequence of events, judgements to be enforced. laws of markets where they make a lot of Mr. Seah will say a few words of introduc- The Dutch Gaming Authority Kans- money by illegally offering online gambling tion for his friend and colleague who will spelautoriteit (KSA) has imposed a fine products, even in spite of legal judgements be inducted into the Lottery Industry of 350,000 euros on two i-Gaming against them. Hall of Fame. Dato’ Lawrence Lim operators for offering unlicensed and • Visit PGRItalks.com to view videos of Swee Lin, CEO of the Magnum Group illegal gambling services to players in the which operates the Malaysia Lottery is the the presentations and panel discussions Dutch market. One is based in Cyprus at PGRI Lottery Expo NYC. immediate past-Chair of APLA, and will be and the other in Curacao. ZEAL Group inducted into the Lottery Industry Hall of • Mark your calendars for February (parent company to a family of online 26 to 28. PGRI SMART-Tech Fame along with Mr. Gama. The bio’s of B2C “grey market” operators like Tipp24, Lottery Industry Hall of Famers including will be held at the Hilton Fort Ventura24, and MyLotto24, and online Lauderdale Hotel in Florida. See Mr. Gama and Mr. Lawrence can be viewed B2B technology platform providers like at www.lotteryindustryhalloffame.com. PublicGaming.org for details like Lottovate) just lost a court ruling that said hotel reservations, conference Let’s also congratulate David Gale and its Ventura24 lottery brokerage registrations and program. Team NASPL, and Dennis Berg and service requires a license from Team Ohio Lottery, for a fabulous Sociedad Estatal Loterias y conference held in Cleveland. Dennis Apuestas del Estado (SELAE), the operator Berg is now president of NASPL and we of the Spanish national lottery. No such look forward to a great year with Dennis at license has been granted, and according Paul Jason, Publisher Public Gaming International Magazine the helm. to a statement from Zeal “is unlikely to be granted in the future”. Germany has been besieged by ‘bet-on-the-outcome-of- the-lottery’ operators. And now, Lotto
10 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 Women’s Initiative in Lottery Leadership JUMBO WILL Scholarship Funded with $50,000 Donation Letter from Rebecca Hargrove Founder and Chair of WILL President and Chief Executive Officer, Tennessee Education Lottery Corporation Senior Vice President, World Lottery Association (WLA)
he mission of WILL has Provincial Lottery Association), moved from the ‘taking IGT, and Scientific Gamesfor their shape’ phase to the taking financial support. We would not have Toff stage. The first planning session gotten to where we are now without for Women’s Initiative in Lottery your most valued financial support, Leadership (WILL) was held at and your active engagement, leader- a meeting in London in February ship and guidance. And we want to 2017. Joining me were Stéphane thank JUMBO for turning the vision Pallez, Lynne Roiter, May Scheve, of WILL scholarships into a reality. and other industry leaders to clarify Creating a culture of diversity and objectives and formulate action inclusion will benefit everyone - all plans for WILL. It’s mission is to the stakeholders of our industry who drive high-performance business value the principle of inclusiveness growth through the advancement and smoothing a path for women of women in the lottery industry. to achieve their goals, and for That has led to an exciting series businesses to benefit from their of networking events in London, talent and commitment. Krakow, Prague, Nashville, Portland, Atlanta, Orlando, and Cleveland. And we want to thank all of you for It continued with an incredible your active engagement with the three-hour session of presentations mission of WILL. It is your par- and speeches by high level female captains enable emerging female leaders to partici- ticipation and support that is the ultimate pate in training and educational seminars. measure of success. of industry (from outside the Lottery We want to acknowledge that others have industry) in Atlanta in October of 2017. Next up: We hope to see you at the WILL expressed a desire to financially support Rebecca, with assistance from Tennessee Networking Event at the World Lottery WILL and we look forward to streamlining Lottery COO Wanda Young and IGT, Summit (WLS) in Buenos Aires. 5:00 pm the processes and structures to convert your launched the Mentor/Mentee program with at the Ballroom Atlantico A in the financial support into a highly productive a training webinar in March 2018. Since Hotel Hilton Buenos Aires, the WLS engine for helping women move into leader- then, over 70 lottery participants have Conference Hotel. The WILL Network- ship positions, and enabling business enter- signed up for the Mentor/Mentee program ing Event immediately follows the Lottery prises to benefit from the positive impact and embarked on their new partnerships. Industry Hall of Fame ceremony which will of talented female leadership. And for the Stay tuned for the next round of Mentor- be held in the same ballroom at 4:30 pm. ship relationship-building. financial sponsorships that have already moved WILL into the high-profile role that Photos from left to right: And now another milestone to this amazing it is destined to perform, we want to thank Rebecca Hargrove at EL Networking Event in Prague Younes El Mechrafi, Rebecca Hargrove, journey has been achieved. JUMBO’s gift the EL (European Lottery Association), Antonios Kerastaris, Stéphane Pallez at WILL Prague of $50,000 to fund scholarships will NASPL (North American State and Mike Veverka, Founder & Chief Executive of JUMBO WILL Networking Event in Orlando
12 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERVIEWS
Jean-Luc Moner-Banet Chief Executive Officer, Société de la Loterie de la Suisse Romande President of the World Lottery Association (WLA) The Lottery Industry is operated at the jurisdictional level. But the issues we face are global. on the Mobile. The operator of traditional the games they like to play change as they PGRI Introduction: games who moves into sports betting must mature. If they didn’t, then there would This is a special time indeed. prepare to undergo profound organizational not be so many lottery players! We depend Jean-Luc Moner-Banet has been changes. on that evolution to bring people who may leading the WLA through six years of have preferred long-play interactive video challenges and progress as the Asso- games in their twenties to migrate over to the ease and convenience and fun of lottery ciation evolves to meet the needs of its play in their thirties and forties. Likewise, membership. The world has changed a portion of sports betting players will so much, and the rate of change is desire something different as they have less not likely to slow down anytime time to spend on betting, as their circle of soon. Or, anytime ever. I am one of friends changes and their focus on career so many who thinks of himself as a and family changes their priorities. It is friend. And I am thankful to have important for lottery to be there when that happens. The sports betting operator is the privilege of bringing this far- in the perfect position to offer alternatives reaching discussion to our readers. to sports betting when the player gets in I hope I asked some of the question the mood to experiment with other game that you might have asked! categories. As the operator of traditional lottery games, you want the players to be More important than any question on your website when that happens, and I ask, though, is to thank Jean-Luc not the website of a competitive commer- Moner-Banet for his tremendous cial operator. service to the membership of the Sports betting is an entirely different Unfortunately, it’s challenging for U.S. World Lottery Association. Jean-Luc state lottery operators to petition for the has been a tireless and fearless business than traditional lottery games. The difference in complexity is a whole authorization to offer sports betting. advocate for our interests during a order of magnitude. In spite of the chal- J.L. Moner-Banet: Of course it is. It is tumultuous time. We so appreciate lenges, sports betting is a game category challenging for European state operators to your dedication to this industry that adds tremendous value to the portfolio convince the government that they should and our global association and hope of the gaming operator. If sports betting be the ones to offer sports betting. Com- that you realize the high esteem and is going to be offered in your jurisdiction, mercial operators invest heavily in lobbying affection held for you by so many then you absolutely want to be the one, or and public relations campaigns to convince people all across the world. one of the ones, who offer it. The sports the government that they are the ones who betting player constitutes a huge and very should be licensed to offer sports betting, important segment of the games-of-chance and that the Lottery should not be autho- Paul Jason: How important is it that market-place. One may argue about the rized to offer sports betting. They point U.S. lotteries convince legislators to degree of dynamic day-to-day cross-over out that they have experience operating authorize them to offer sports betting? between sports betting and traditional sports betting in other countries and that Jean-Luc Moner-Banet: Let’s keep in per- lottery products. What is not arguable, the Lottery does not have that experience. spective that 80% of sports betting is still though, is the fact that player preferences They do not point out that the business conducted in land-based venues. 20% is change over time. People’s lifestyle and is actually operated by a small number of
14 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 15 technology partners who can perform the if competitors are able to offer the complete interesting people. It’s hard to do that if same services for Lottery as they perform range of gaming products and Lottery you only sell the same games you’ve been for the commercial operators. They do not operators are boxed into a limited portfolio selling for decades. point out that government lotteries now of traditional games. operate 70% of the sports betting every- This brings us to CRM where in the world except the United States. Have you observed migration from (Customer Relationship Management). They do not point out that the reason sports betting over to traditional games J.L. Moner-Banet: Exactly. Whoever is why states should operate sports betting is as people go from twenties to thirties? best at capturing, organizing, and leverag- because their commitment to responsible J.L. Moner-Banet: Absolutely. We do ing the consumer data to provide the gaming, integrity of sport competitions find that sports betting as a game category best products to the right players at the and public service is proven, and the state appeals even more to the young adult. And right time is going to win the competi- operator channels far more economic that trend is accelerating. So for Lottery to tion. Amazon has shown us the power benefit back to society. We can’t expect be able to offer sports betting is part of the of data that is leveraged to enhance the commercial operators to represent the solution to our perennial challenge of how interactive relationship with your customer. interests of Lottery stakeholders – that’s our to connect better with the young adult. The future will be all about CRM. My job! We are the ones who must represent concern is that if the competition is the the interests of our stakeholders and make We all want to optimize the lifetime value one that is capturing the player data when sure legislators understand the nature of of a player whose preferences change over the consumers come of age and enter the their decisions and make fully informed time. Clearly, that means we must offer games-of-chance market, that will put decisions that recognize the value of their a variety of games that will meet those Team Lottery at a severe disadvantage when state-owned lottery operator. When the needs as they change over time. If Brand the players mature. At least some of them decision-makers are fully informed, they X is the operator who engages the player will get tired of sports betting and become will come to the same conclusion that the in sports betting, that puts Brand X in receptive to changing over to new games majority of governments around the world the premium position to be the supplier as they grow into their thirties. But how have come to – that is that sports betting of choice when the player’s preferences will we even know that if we do not have should be operated by the state government migrate to new games. Lottery can’t a relationship with them? How will the lottery operator. afford to cede that premium position to players even know about Lottery if their competing commercial operators. Of sports betting operator is offering other You make a persuasive case! course we all want the players to play our games that are similar to lottery and giving J.L. Moner-Banet: There already exists a higher-margin traditional games. But them good reason to stay with them and vast underground sports betting market in having sports betting in our portfolio of not switch to the lottery operator? the U.S. U.S. lotteries do not want to cede gaming options is key to being available this vast player base over to commercial for the players when they become receptive CRM is all about knowing how to meet the operators. For one thing, even though the to trying out new gaming experiences. needs of your customer. Operators of the margins are much lower than for traditional future will be doing everything they can to know what those needs are, probably even before the customer herself knows how and Government lotteries now operate 70% of the sports when they are evolving. That is the first “betting everywhere in the world except the United step. The second step is having the product - in our business that means the games - to States… For Lottery to be able to offer sports betting meet those needs as the change over time. The key business asset of the future is is part of the solution to our perennial challenge of data and effective CRM. And effectively leveraging that asset is the key to maximiz- how to connect better with the young adult. ing the lifetime value of the customer, the player. That begins when they enter the lottery games, the turnover is typically Affiliating with the up-and-coming” games market as young adults and continues as much higher and so the actual income is like sports betting would also help to long as the operator succeeds at meeting still considerable and should be channeled modernize the image of Brand Lottery. the needs of their customer. This is the to the benefit of good causes. J.L. Moner-Banet: That’s absolutely right. way our competitors view the world and The main thing is that the operator wants Young adults tend to perceive Lottery to their mission to control the market-place. to build the interactive relationship with the be old-fashioned, the game their parents Is Team Lottery prepared for this level of broadest base of games-of-chance players played. It is important that we modernize hyper-competition? possible. Consumers are now exposed to the image of Lottery for it to align with the self-image of our customers. Integrat- I’ll give you an example of how this is the widest variety of gaming options ever working already. The Lottery website offered in history. Fortunately, traditional ing sports betting with traditional games, even if it is just in the form of branding typically has its portfolio of games lottery games have demonstrated a resil- displayed on the home-page in as ience and consumer appeal that is greater and proximity in the POS and advertising, confers positive brand-enhancing value organized way as possible to enable the than any other game category. But in player to easily see what game they want this world where players migrate from one to Lottery and helps us connect with the next generation of players. We want to to play and to click on that link. That’s category to another as they decide which fine but compare that to what the sports games they like to play, it will be a problem be perceived as forward-looking with the kind of product that appeals to smart, betting websites do. They identify your
16 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 17 primary interests based on the transac- working 24 hours, seven days a week and Many of our members are in both the tions, on the betting patterns. Of course, performing a variety of IT functions that technology partner and the operator sides they make all the products available to we could never afford to do on our own. of the business. B2B technology companies you since those patterns will change over We pay much less than we would otherwise on the “vendor” side are applying their time. But let’s say you are into soccer and have had to pay to build our own, and FDJ assets to add value directly to the B2C do not bet much on other games. You’re off-loads some of their operating costs to customer-facing operator side of business. a soccer fan and you only want to know us. Win-win. FDJ has a similar arrange- And customer-facing B2C operators are about soccer. The website reconfigures ment of sharing resources and costs with monetizing the assets they have developed to put soccer front-and-center, to serve Portugal and Israel as well. in the course of serving their customers by up the information that you are most selling their services, products, and in-house interested in, customizing the front page So the answer to your question is that yes, IT to other B2C operators. The arrange- to appeal to your particular focus. And the investments required to compete in the ment between Loterie Suisse Romande and Française des Jeux is an example of that. As important as freedom of the internet is, nobody More relevant and useful than the distinc- tion between technology partner “vendor” “ wants it to obliterate the rules that organize and and government operator now is that the WLA member comply with all laws of all govern a civilized society and protect the people jurisdictions everywhere in the world. It is not enough to be legal in Malta or Gibraltar from illegality. if you are not abiding by the laws of all jurisdictions. And the criteria for legality ” is determined by the nation-state where the to offer promotions that cause you to feel games-of-chance industry are increasing, player/consumer resides. Period. Full stop. like you’re a special VIP player being given but there are different ways to manage It is not enough to abide by the laws of the considerations that others are not. And those costs. jurisdiction where the operator is based, chat rooms that are made accessible to the or one’s own interpretation of EU laws or select audience of insiders that includes Can the WLA play a role in principles. The applicant must comply with you but not the visitor of the standard facilitating these kinds of the laws of each and every jurisdiction in website. That is the kind of interactive collaborative arrangements? which its games are played. We feel that relationship that the players of the future J.L. Moner-Banet: The WLA is helping this is the defining characteristic of the will come to expect. already by providing the platform and WLA membership: respect for the law, channels that enable lotteries to com- values and objectives of WLA. It seems to me that there’s no small cost to municate with each other and begin the developing the tools, IT infrastructure and process of deepening collaborations. That Our standards when it comes to compliance the competencies to do that. Increased is really the primary purpose of the WLA with the laws of all jurisdictions, as well as investment typically needs increased – to facilitate communication and the the protection of vulnerable populations revenues to pay for it. Will scaling development of cooperative relationships against addiction are uncompromising up become an increasingly important that add value to our businesses. I would and inflexible. This “true north” principle component to gaining strategic advantage add, though, that it is not for the WLA will guide us as we evolve to integrate new in the games-of-chance industry? to put in place structures and investment business models into the WLA. The world J.L. Moner-Banet: There are different instruments ourselves. What we do best is changing, the market-place and the ways to manage the increasing costs of IT is to organize the conferences, workshops, games-of-chance industry are changing, and operations. Look at our jurisdiction trade-shows, and activities that bring people and the World Lottery Association is in Switzerland. We are barely over 2.5 together and enable our members to forge changing to ensure that the service and million people in the French speaking productive relationships. support it renders to its membership remain part of Switzerland. We are not a large What are some of the current relevant and meaningful. We want to enterprise and yet we have a very complex key initiatives for the WLA? welcome new players with new ideas, new and technologically sophisticated operation technologies, new solutions and strategies. that manages to make money out of sports J.L. Moner-Banet: The World Lottery betting operations. How do we do that? Summit in Buenos Aires will be a very What is an example of someone who The way for smaller lotteries like ours to significant event. Of course, we will have is not eligible for membership under leverage the benefits of large scale, and the trade show and conference which will the current system who will be expensive, technological infrastructure all be bigger and better than ever. And the eligible under the new by-laws? required for sports betting is to share General Assembly is expected to pass some J.L. Moner-Banet: They would need to go resources. Collaborations can be forged important changes to the by-laws which through the application process, and I can’t with commercial technology partners, with define a profile for applicants to qualify for predict what the outcome of that would be, other lotteries, or with some combination membership. but a likely example is the French PMU of both. We share resources, and costs, (Pari Mutuel Urbain). PMU is one of the The defining characteristic of the past was with Française des Jeux (FDJ) which has biggest betting operators in the world. But whether the member is an operator or a a robust IT system to support its much with a focus on betting on horse racing “vendor”. Those distinctions have become larger sports betting enterprise. They and sports betting instead of Lottery, their less relevant or useful than they once were. have an excellent risk management team application would be denied under the
18 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 19 current by-laws even if it is determined more open system that allows Swiss players What are some public policy objectives that they comply with all laws of all to have access to other types of operators that seem to manifest wherever you go? jurisdictions everywhere in the world and located offshore, are not regulated by the J.L. Moner-Banet: All members of the WLA their methods of operation uphold a high Swiss government regulators, and who do support the regulated environment that has standard of integrity. not allocate their profits to good causes? as its top priority service to society, protection And the answer was overwhelming: 83% of the consumer, and optimizing economic It is my hope that opening up the member- of the Swiss population said that they do benefit for good causes. Everything else may ship to new business models will stimulate want a regulated games-of-chance environ- vary globally from region to region. But the innovation process and open up new ment that protects the public and tries to responsible gaming, security, integrity, and pathways for all of us to build the sustain- minimize social costs and problem gambling support for the regulations installed to serve able future we strive for. It is vital, of and illegality like money laundering. And the best interests of society are universally course, that the WLA maintain the integrity we support the right of the government to embraced by the membership of the WLA. of the selection process, and continue to block access to websites operators who do stand firm in its commitment to all the The internet has made games-of-chance not have valid license to conduct business in principles we hold dear, like Responsible available to everyone everywhere. This Switzerland. A resounding victory for the Gaming and Technical Security as well as has caused governments everywhere to cause of enforcing the laws against illegal respect for all jurisdictional laws. The WLA come around to the conclusion that it is online gaming operators. and all its members will always uphold the better to regulate than to prohibit. Pro- highest standards and values in the games- There are those who want to turn the issue hibition doesn’t prevent the activity from of-chance industry. Further to this, it is enforcing laws in the digital world into one happening. Instead it just sends the activity my hope that expanding the WLA’s sphere of freedom versus censorship. We all do underground so the consumer is playing of influence to include a broader variety of want to preserve freedom in the internet on unregulated websites. I was invited business models will export our values to space. But the only way to ensure freedom to the Kingdom of Bhutan to advise on other sectors and elevate the standards of for all is to enforce the laws against those how to start a lottery. There is no modern the entire gaming industry. who abuse that freedom to the detriment gaming culture in Bhutan. But like many countries, they realize that it is better to What will the WLA position be of society and its law-abiding citizens. As important as freedom of the internet is, regulate and tax the emerging internet with regards to “Charity”, also gambling industry than to try to prohibit called “Society” lotteries? nobody wants it to obliterate the rules that organize and govern a civilized society and it. And as the public policy trends towards J.L. Moner-Banet: There is no clear-cut protect the people from illegality. more regulation, the role of the WLA answer to that. Insofar as they are legally to promote best practices will become regulated, I would propose that it is better It seems that Europe is taking a more ag- increasingly important. First among those to have them within our community gressive posture over against companies practices is to clearly define what exactly is of regulated and law-abiding gaming like Google and Facebook than the U.S. legal and what is illegal. That has proven to operators. On the other hand, the WLA is. And requirements for transparency be difficult for many jurisdictions! Second has always supported the majority opinion and protection of consumer information is to install the enforcement mechanisms of WLA lotteries which prefer to maintain are much more rigorous in the EU than in that prevent illegality. the exclusivity model because it aligns the U.S. Don’t Europe and the U.S. need On behalf of the whole industry, I would with the public policy goals of responsible to get on the same page when it comes to gaming and optimizing funds for society. like to express heart-felt gratitude for regulating the online world? We are not necessarily ready to move our your six years of service. We know it has J.L. Moner-Banet: support to the multiple licensee model. I think so, but I also not been easy. Being president of the think that it is the U.S. that needs to catch WLA is never easy, but we know the last The Swiss people just voted to allow up to Europe when it comes to implement- six years were especially difficult and so your government to enforce laws against ing the laws that protect the consumer appreciate the dedication, hard work, and online illegality. Could you explain what in the world of online commerce. The time it took for you to lead the WLA. that was about and why the outcome is U.S. has always had a more laissez faire J.L. Moner-Banet: And I would like to so reassuring to those of us who feel that approach to economic regulation than conclude with a big Thank You to the online operators should be required to Europe. Combine that with the fact that WLA Executive Committee for all the abide by the laws? the internet and social media giants are support they provided me and especially J.L. Moner-Banet: The Swiss people were all U.S. companies which prefer a less two people, Lynne Roiter and Rebecca asked to vote on the question of whether regulated online world, and it’s not surpris- Hargrove, whose leadership and hard work they wanted the government to exercise ing that the U.S. is a little slower to adopt have been key to my success and the success authority to ensure a safe and secure the measures that Europe is implementing of the WLA. Their service to this industry games-of-chance environment, whether it now. I do believe that the U.S. will apply and the WLA is so appreciated and I look is on the internet or in the land-based retail stricter online regulations to protect the forward to many more years of friendship world; and also whether they wanted the consumer and prevent illegality. Hopefully and collaboration. I would add that serving entire profit to be allocated to good causes. sooner than later! To your point, yes it will this organization has been a pleasure and a It was a double question. Do you want it be important for the U.S. and Europe to privilege. Becoming friends with the leaders to be secure, safe, reliable, with protection work together to create a uniform regula- of the lottery industry from all around the against excessive gambling behaviors and tory system and collaborative enforcement world and seeing the results of what the illegal gaming, and do you want the profit mechanisms that ensures a safe and secure WLA does to support its members is its own to go to good causes? Or do you want a online world. reward which I will treasure forever.
20 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 21 PUBLIC GAMING INTERVIEWS Luis Alberto Gama Hernández
National Director of Lotteries and Pools of the Oriental Republic of Uruguay President of the Ibero-American Corporation of Lotteries and State Bets (CIBELAE) Member of the Executive Committee of the World Lottery Association (WLA) The Digital and Online Connection with the Consumer as the Universal Key to Sustainability PGRI Introduction: Paul Jason: Could you describe the Lotteries and Pools business of Instant Games are distributed through Luis Alberto Gama Hernández the Oriental Republic of Uruguay? physical Cartons and internet/web. In the began his Lottery and Gaming What games do they offer, what case of “Supermatch”, bets are received in 2 career in October 2008 when distribution channels and what does forms: electronic terminals and internet/web. he was appointed Advisor to the it include online / internet? Lottery games are marketed by physical and General Directorate of State Luis Gama: First of all, I must point out that electronic network gaming terminals. Casinos under the Ministry the National Directorate of Lotteries and Which games are the most of Economy and Finance. Pools acts as a Regulatory Entity, controls successful and why? Will that In February 2012, Luis was and supervises the operations concessioned trend line change in the future? to private companies and markets and appointed by the President of L. Gama: The games offered by the National administers the lottery games. The monopoly the Republic to the position of Directorate Lotteries and Pools is orderly, of the State is carried forward through the National Director of Lotteries and designed to meet the needs of players and Pools. He is a member of the Board to take into account the size of the market. of Directors of the Ibero-American The game with the largest participation in Uruguay is the “Quiniela”, which accounts Corporation of State Lotteries and for around 40% of the total. Quineilea is Bets (CIBELAE), where he has followed by the games of “Tombola” and presided since October 2013 and “5 de Oro con Revancha” which are 20% was recently re-elected for the third and 18% respectively. The sports betting consecutive period. In chairing game called “Supermatch” represents 13%. the Regional Association, Luis is Lottery and Instant games come it at a lower level. one of the thirteen members of the CORPORACIÓN IBEROAMERICANA DE LOTERÍAS Y APUESTAS DE ESTADO Executive Committee of the World The game of “Quiniela” is deeply rooted Lottery Association (WLA). Executing Unit that I direct, and also the in the culture of our people. Its frequency games granted to the Collective Support makes its level of bets the most important Luis was elected to the 2018 Banks of Pools (numbers), “Tómbola” (11 weekly lot). It is noteworthy that each Lottery Industry Hall of Fame. (keno), “5 de Oro con Revancha” (lotto), game has its own public and in the case of He will be admitted to a ceremony Instantaneous (scratch) and “Supermatch” the game “5 de Oro” there is a particular- ity that when the well is larger, a sector to honor the newest members of the (sports). For the marketing and distribu- tion of all these products we have about of the public that is usually not a player Hall of Fame on November is added. In the case of Instant Games 20 at the World Lottery Summit 7,800 points of sale that cover the entire country, distribution Agents, Sub Agents (scratch cards) and “Supermatch”, there in Buenos Aires. We hope to see and Brokers. The Bets are received by way was growth in the betting volumes, and you there! of three channels: electronic (terminals), the tax collection increased as well, when telephone, and the internet/web in the case the form of settlement of the Value Added of the games of “Quinielas”, “Tómbola” and Continued on page 26 “5 de Oro Revancha”.
22 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 23 PUBLIC GAMING INTERVIEWS Seah Chin Siong
Chief Executive Officer, Singapore Pools (Private) Limited Chair of Asia-Pacific Lottery Association (APLA)
PGRI Introduction: Integrating games-of-chance, Singapore Pools was formed in 1968 for the dual purpose of countering social responsibility, and a illegal gaming activities and to channel economic benefits back to society. Singapore Pools is owned by Singapore commitment to Community Totalisator Board (Tote Board), a Paul Jason: Which of your online pokers, sports betting and horse statutory board which reports directly games are increasing in sales? racing. The 4-digit game is the flagship to the Ministry of Finance. Seah Chin Siong: Sports Betting is game for Malaysia and Singapore only, growing, and this is in line with the global while Lotto is the flagship for New Zealand Singapore Pools offers three different trend. Three quarters of Singapore Pools’ and is also a major product for China draw-based games with a total 2016 sales are draw-based games with sports Welfare Lottery and China Sports Lottery. betting growing in the past few years. The revenues of SGD 5,678,000,000 HKJC, Singapore Pools, Lotto New sales of 4D game is flat and Toto 6/49 (€3,500,000,000). €1,262,070,041 Zealand and South Korea Nanum Lotto currently hovers around $850M. Sports is (36% of revenues) was turned over to have all attained World Lottery Association expected to grow further the Singapore Treasury. (WLA) Level 4 Respon- in line with global trends sible Gaming certification. and our efforts to close the Seah Chin Siong has served as deputy China Sports Lottery has gap with the illegal online chief executive of Singapore Pools also started to develop and operators. since Oct 2012 and was appointed implement a responsible chief executive of Singapore Pools on How would you describe gaming framework that January 1, 2015. Additionally, Mr some of the differences will be customised for Seah was appointed Chair of APLA, between markets within China’s unique market effective Oct. 12, 2018. the Asia Pacific region? conditions. Mr. Seah: Asia Pacific’s Before joining Singapore Pools, Mr Growth in internet and government-authorised online gaming will shape Seah was the founding chief executive lotteries are mostly either the future of gaming in of IDA International, a subsidiary of state-owned or licensed in the jurisdictions Asia-Pacific and lottery operators must the Infocomm Development Authority in which they operate. They are governed incorporate digital capabilities as part of of Singapore. He led the company in by a set of laws which includes restrictions their strategy for serving their customer helping public agencies around the on promotion of the games. In Malaysia base. Online gaming will continue to grow, and Singapore, advertising of lottery or world harness infocomm-enabled and traditional lottery operators continue to sports betting is not permitted and com- capabilities to improve their face the risks of being disrupted if they do munication on lottery or sports betting not find appropriate ways to respond. socio-economic situations. matters in Singapore is subjected to regula- Instant scratch cards have been the Mr Seah was also formerly managing tory approval. The majority of the lotteries’ revenue are from draw-based games, except biggest driver of growth in the U.S. director of Accenture’s Public Service for HKJC (Hong Kong Jockey Club) where over the past twenty years. Do they Operating Group for Asia-Pacific and only 4% of its total revenue is from draw- have the same potential in Asia-Pacific? Country Managing Director of Accenture based games. Mr. Seah: Singapore Pools has ceased the Singapore. His 25-year experience spans sales of Instant scratch cards game since across strategic planning, business The Asia Pacific lotteries offer almost every Dec 2011. The game was introduced in type of gaming and lottery products, from 2004, with proceeds going towards the development, change management draw-based numbers games and instant and strategy formulation. establishment of a national zoo and football scratch cards to video lottery terminals, association, as well as the National Heritage
24 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 Board. We used to specially design the the retail channel will remain to be the evolved with the needs of the community. scratch cards in conjunction with specific preferred channel for Lottery products. This Building upon our foundations as an events, for instance: F1. However, as our also is in line with the industry trends in enabler, we have leveraged our resources, customers’ interest are still on draw-based other countries. expertise and manpower (e.g. our office games, we have withdrawn our scratch-game. space, outlets, IT infrastructure) to do You were recently appointed to be Chair good and to do good better. It is hard to generalize when comparing of APLA. How do you think the needs and one global region to another. Still, does expectations of APLA members will be An example of that would seem to be anything strike you as an interesting changing over the next three years? iShine Cloud. What is the mission of difference between the gaming markets Mr. Seah: APLA will continue to be the iShine Cloud? (Visit ishinecloud.sg) of Asia Pacific and, for instance, Europe platform for operators in the region to Mr. Seah: Singapore Pools wants to use its or North America? exchange knowledge and best practices in resources to help the social sector embark Mr. Seah: Asia Pacific has a population base the industry. As technology continues to on digitalization. iShine Cloud Limited of 3.2 billion with a median age of 33.3 disrupt and impact the lottery industry, is a charity set up by Singapore Pools to and a per capita GDP of USD 13,471. The APLA will be the platform for members provide charities with an affordable and sales generated was USD 110,1 billion with to share and collaborate on initiatives for integrated suite of sector-specific solutions 37.5% share of the global lottery market collective benefit or which can positively via a secure cloud-based IT platform. for the year 2016. The money to good impact their home countries. iShine Cloud aims to improve the pro- causes amounted to USD 28.6 billion. Singapore Pools is also a global leader ductivity, governance and efficiencies of charities, thus enabling them to focus on Similar with the European lotteries, sales of when it comes to Responsible Gaming. draw-based games predominated, account- serving their beneficiaries better. Its services Mr. Seah: We strive to uphold the highest ing for 56.1% of 2016 sales. Sports betting are open to any charities regardless of their standards as a responsible gaming operator. represented 38.8% of 2016 sales whereas it sector and size, it is a way for Singapore We have achieved the highest standards in accounted for a relatively small percentage Pools to share its technological capabilities the World Lottery Association (WLA) of total sales in Europe and North America. with other charity organizations. We hope Responsible Gaming Framework (Level 4) that by offering a flexible, affordable, and In Asia Pacific, government-authorized in 2012 and reaffirmed it again in 2015. scalable platform to others, it would also lotteries are run at the federal level except Endorsed by the WLA, this is the highest pave the way for a stronger social sector in India and Australia where it is operated form of recognition from the international Singapore. at the state level. Approximately half are assessors. Singapore Pools is in the privileged operated by the state except in Australia group of being one of the three operators in where private operator TabCorp operates Asia to achieve this certification. Committed lotteries in all states except Western to being a world-class responsible gaming Australia. A key marker for lotteries company, our professional conduct and is the role played by sports betting. In business behaviours must be held to addition, cultural and religious sensibili- the very highest standards, ensuring ties -- particularly those related to Islam, a fair and safe gambling experience which prohibits gambling, play a key role in to protect our customers. differentiating lotteries in Asia Pacific from Singapore Pools plays a role those in Europe and North America. in the community that is more How do you retain retailer support for than an operator of games the omni-channel model that includes that channels funds to good selling lottery products online? causes. How would you Mr. Seah: Our retailers are actively involved describe your mission? in our digital transformation journey where Mr. Seah: As a fully-owned digital self-serve capabilities will also be subsidiary of Tote Board (a implemented in the retail channel. This statutory board that reports will readily help to alleviate manpower to the Ministry of Finance), related challenges faced by them and to all gaming surplus generated meet the expectations of the new generation from Singapore Pools’ op- customers who will use multiple channels erations are channelled to Tote for our products. Board for the funding of worthy How do you expect the channel mix to causes in the arts, community evolve over the next three years? Will development, social service, land-based sales continue to increase education, health and sports. alongside growth in mobile and online? Being present for the community Mr. Seah: Migration of Sports customers is important to Singapore Pools to digital channels will continue while and in this respect, we have
At Singapore Pools, Responsible Gaming (RG) is more than complying with a set of written policies, rules and manuals. It’s staff also serve as RG Ambassadors where they help to increase awareness on the importance of responsible play and spending within one’s means.
PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 25 Hernandez article continued from page 22 What do you consider to be the greatest Asia-Pacific? opportunities and the highest priorities L. Gama: Compared with other global for the business in the next three years? regions, the difference is that our region Tax (IVA) was modified and the percentage L. Gama: I am convinced that the greatest has more capacity for growth. We have paid in prizes increased. These modifica- business opportunities will be presented to countries of great influence and potential tions generated very positive changes in us through online games. We are working at the regional level that have not yet the marketing and consumer acceptance to address the phenomenon of online adequately resolved the problem of illegal of these products. Since the Parliament gaming that has been growing at an incred- gambling and online games. The lack of approved sports betting (Supermatch), ible rate. Only two countries in the region regulations that clearly address current and the Executive Power implemented have made much progress in the online technologies, methods of distribution, and regulations and enforcement instruments channel. In the year 2000, online games market-place realities make it difficult to to combat illegal gambling and prohibit were almost non-existent. Eighteen years effectively combat illegal gambling. These advertising of sports betting, sales of the later we see a global internet betting level are some of the issues that we must address state-operated Supermatch have increased over $70 billion USD a year. To the extent both individually and collectively to considerably. So far, the regulatory regime that we regulate this modality effectively, enhance the performance of our Lotteries, has proceeded to block 97 betting sites that consumers will benefit, our Organization apply more resources to modernize com- operated in our country without having the will be stronger, and we will channel more mercial operations, and evolve with the required authorization license. 81 more are economic benefit to the state. consumer market-place. in the process of being blocked. Using the best tools to combat illegal gambling is the How would you describe some of the We are moving in this direction and taking best way to defend the legal games. differences between markets in Latin action to strengthen the State through our America? The differences in promotional Institutions. A lot of work awaits us. But I What is the growth rate of online sales? methods and media, commercial opera- visualize a great commitment on the part L. Gama: Since 2002, the sports betting tions, regulatory frameworks and political of all of us who cooperate together within game called “Supermatch” has been attitudes, responsible gaming, etc.? Cibelae to create solutions and produc- operating in our country. It is the only L. Gama: In general, there are no substantial tive pathways forward that will benefit game sold online. As a result of the actions differences between the different markets everyone. Working towards these goals, developed under the current legislation, of our Region. I think we share the same transforming our organizations, preparing it has been growing satisfactorily. If we problems and the issues that go with how them for the immediate future and compare the first semester of the year 2018 we address and solve the problems. Like investing in training and technology are with the same period of the year 2017 it everywhere else in the world, regulatory the great challenges that lie ahead. has had a year-over-year growth rate of frameworks are not always keeping up with 99.42%. This growth was mainly driven How do you think the needs and expecta- changes in technology and the market-place. by two factors: the blocking of almost tions of the members of Cibelae will There are many bills that are currently being 100 non-authorized betting sites and the change in the next three years? And how studied in the different parliament, which development of the World Cup. will CIBELAE evolve to meet the needs of can cause decisions to be delayed and in its members and the changing market? Is Uruguay’s regulatory framework many cases inefficiency in management. L. Gama: Cibelae has been making great established so that it is not likely to In addition, not everyone has tackled the progress in terms of cooperation, integra- change in the coming years? Or do you issue of online gaming, the need to define tion, professionalization and training of all expect to expand your gaming portfolio, communication strategies and the need to its members. Our academic programs have or could there be other significant include new products to meet the demand grown in terms of the quality of speakers changes in the business model? of the consumer whose play-styles and as well as in the theme and the topics L. Gama: It is our understanding that the preferences are changing. The lack of clear addressed in each of the events. As a result, regulatory framework, although it may have policy guidelines or government agenda for lotteries from countries that did not much some shortcomings, is generally correct and the gaming Sector creates uncertainty about participate very much in Cibelae have come effective as it is now. Our great challenge the future. This means that, in most cases, forward to contribute experiences to the is to seek the approval of a proposal that government policy is largely conditioned other participants. This increased participa- was raised to the National Parliament by to the personal imprint of the Hierarch on tion has meant a growth and strengthening the Executive Power which -among other duty. The changes in the political conduc- of the Cibelae as a whole and its members things - separates the operating functions tions cause changes in vision for the Gaming individually. In this period, we have from those of regulation and control of the Sector. The uncertainty that creates makes focused our actions on everything related Executing Unit. It also applies administra- it hard to clarify and invest in strategies and to management and the generation of tive sanctions and penalizes the marketing objectives and action-plans that position the value from all our actions and investments. of the game without proper authorization Organization for the future. Cibelae is an Organization that represents and license, and ratifies the monopoly of 33 Regulators from 30 Ibero-American the State for all types of games and bets It is difficult to generalize when countries plus 30 commercial companies marketed to the general public. comparing one global region with another. of the Gaming Sector. All its members are However, is there anything that surprises dedicated to optimizing the contribution We must also review and analyze the you as an interesting difference between of Cibelae to the responsible growth and current portfolio of games, in order to make the gaming markets of Latin America and, integrity of the Sector, to its members com- possible the granting of new licenses related for example, Europe or North America or mercial success, and to the Institutions that to the online games. benefit from the operations of Lottery.
26 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 28 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 29 30 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 31 Beyond GLI’s Latin American and Caribbean Regulators Roundtable Charting a Course Toward Industry Modernization in Latin America and the Caribbean
GLI’s 2018 Latin American and Caribbean Regulators Roundtable team aming and lottery regulators and Roundtable Becomes an government lotteries across Latin has become an important agent of change, America and the Caribbean are Important Agent of Change helping to spur action to modernize regula- Gfacing many of the same challenges and Eleven years ago, Gaming Laboratories tions and establish a risk-based approach opportunities as they strive to modernize International (GLI®) recognized the need to benefit of new technology and new sales gaming and lottery regulations in the face to provide a forum for Latin American and channels, by giving regulators and repre- of unprecedented social, technological, and Caribbean lottery and gaming regulators sentatives of government lotteries valuable cultural change in the region’s gaming and and government lotteries to share ideas, tools and knowledge, as well as creating lottery industries. collaborate, network, learn best practices, and join in common interest to tackle issues common bonds of cooperation, collegial- The rapid development of online gaming and drive the future of lotteries and gaming ity, and collaboration among like-minded (iGaming), online lottery (iLottery) and sports in the region. As a result, GLI customized professionals. betting; maintaining effective anti-money its highly successful North American laundering (AML) controls; cybersecurity; Regulators Roundtable model to meet the This Year’s Roundtable preventing fraud, and protecting the public; unique needs of the Latin American and Sets Attendance Record mitigating illegal gaming/lottery operations; Caribbean gaming and lottery sector. The The most recent Latin American and understanding the impact of new technologies Latin American and Caribbean Regulators Caribbean Regulators Roundtable was held such as virtual reality, blockchain and crypto- Roundtable has since grown to become the this past August 6-8 in Lima, Peru. This currencies; grappling with job creation, social region’s premier networking and education- year’s educational and networking confer- responsibility, and social causes; and acquiring al event drawing regulators and government ence set new attendance records, welcoming tools and skills to enhance the professionalism lotteries from across the sector for two more than 80 representatives from 33 and integrity of the industry are just some days of stimulating discourse enlightening government entities and 19 countries of the many common themes and issues educational sessions and collaboration. representing Latin America, the Caribbean, that unite regulators and representatives of and Spain. This included representatives Through the years, GLI’s Latin American government lotteries across the region in their from Argentina, Bolivia, Brazil, Chile, and Caribbean Regulators Roundtable common pursuit of regulatory modernization. Colombia, Costa Rica, Curacao, the
32 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 Dominican Republic, Guatemala, Jamaica, represented, which included gaming and ing of government lotteries; and responsible Panama, Paraguay, Peru, Puerto Rico, Saint lottery regulatory entities and govern- gambling. Of significant relevance on the Kitts and Nevis, Spain, Turks and Caicos, ment lotteries, as well as the financial and panel were representatives of lotteries across Uruguay, and the U.S. Virgin Islands. Rep- AML supervision bodies that participated the region and CIBELAE discussing the resentatives of CIBELAE (Corporation of with a strong local representation. The importance of the dissemination of the Iberoamerican State Lotteries) also attended Roundtable traditionally shines for its industry’s facts by providing factual infor- GLI’s two-day regulatory conclave. learning, collaboration and networking mation on job creation, social responsibility qualities, and especially on this occasion, and revenue generation for social causes.” Roundtable a Year it became a window into the current status in the Making of the gaming and lottery industries of the GLI’s Latin American Karen Sierra-Hughes, GLI’s Director of countries represented in the conference; and and Caribbean Regulators Latin American and Caribbean Govern- it has contributed in building to the efforts Roundtable Strives for ment Relations and Business Development we are all doing toward the legitimization and her team of Latin American and of our industry.” Maximum Value She also noted that great care is taken to craft Caribbean gaming and lottery experts Sierra-Hughes noted that cooperation marshaled GLI’s prodigious global an event that resonates with the attendees to and collaboration with the host country’s ensure they receive maximum value. resources to ensure the event’s success, regulatory body are essential to the success spending nearly a year meticulously of the Latin American and Caribbean “Every year we challenge ourselves to make planning for the Roundtable. Presented by Regulators Roundtable. the Roundtable better than the previous GLI University®, the Roundtable featured year by soliciting input from attendees 28 speakers representing some of the most “We are extremely grateful to Mr. Manuel on the key topics and issues affecting the respected and brightest names in the Latin San Román Benavente, General Director gaming and lottery industries throughout American, Caribbean, and Spanish gaming of the DGJCMT and his team, for working Latin America, the Caribbean, and Spain. and lottery industries. These experts were with us hand-in-hand in the months prior We ask them what they want to talk joined by GLI’s President and CEO James to the event, and for the warm welcome about and learn about and then customize Maida, and GLI´s global team of experts and hospitality as a host regulator, Sierra- the Roundtable’s agenda to reflect those representing Latin America, the Caribbean, Hughes noted. “We are thankful to all the desires,” Sierra-Hughes explained. “We do Europe, Australasia, and North America, regulators who collaborated to create the this because of our strong commitment to providing the event with a global view agenda and to the speakers who contributed gaming and lotteries in the region. Our component that adds to the uniqueness of to the content of the conference with their goal is to provide our attendees with the its content. knowledge and experience.” information they need to make responsible “We are overjoyed with the results of this Lotteries a Key Focus and informed decisions in their respec- year’s Roundtable,” said Sierra-Hughes. tive jurisdictions that will lead to greater “We were very pleased to have such a of the Roundtable prosperity and success. This, in turn, has diverse range of government sectors According to Sierra-Hughes, the Latin a positive impact throughout the region; American Regulators Roundtable provided benefiting not only regulators but the entire an opportunity to discuss a variety of spectrum of gaming and lottery suppliers important issues affecting the expanding and operators.” lottery industry throughout Latin America, the Caribbean, and Spain. “From the beginning, our strategy has been to deliver the most comprehensive, thought- “Several key topics throughout the confer- provoking, and exceptional educational ence addressed specific issues regarding and networking experience for regulators lotteries, including a discussion of the and representatives of government lotteries policies and regulatory framework of throughout the region,” added Sierra- lotteries to allow for a thriving industry: Hughes. “Over the years, the Roundtable online lottery and sports betting, the prefer- has evolved and grown, providing a unique ence of a new generation, a risk-assessment balance of world-class speakers, engaging approach for the incorporation of new educational sessions, and networking games and products, regulation/supervision, opportunities that foster a spirit of coopera- mobile, player identification and protection, tion, dialogue, and collaboration among and security concerns,” explained Sierra- regulators and government representatives Hughes. “Additionally, the conference also and their peers. What makes this Round- covered other important lottery-related table such an effective and popular event issues, such as best practices in technology, is that each year the focus is different. We certification, and approval for lottery and strive to concentrate on the latest issues and sports betting operations; as well as the role important topics that continue to shape the of security in the lottery industry; profes- gaming and lottery landscape throughout sionalization and institutional strengthen- the region, embracing challenging questions and tackling tough issues, such as money laundering, illegal gaming, sports wagering, GLI’s Karen Sierra-Hughes speaks at the 2018 Latin American and Caribbean Regulators Roundtable interactive gaming, and the emergence of
PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 33 to regulators by informing them of our newest testing methodologies and how they affect the overall process of certification and approval; especially as it pertains to the testing and certification of new gaming technologies as they emerge onto the scene.” Ultimately, explained Sierra- Hughes, the purpose of GLI’s Latin American and Caribbean Regula- tors Roundtables is to empower regulators and representatives of government lotteries to return to their own jurisdictions armed with the information, skills, tools, and knowledge they can employ to address the many pressing issues facing this dynamic and growing Latin American and Caribbean lottery and gaming market. GLI Demonstrates Commitment to Latin America’s Lottery Industry Gaming Laboratories Interna- tional will once again have a strong presence at this year’s World Lottery Summit (WLS) in Buenos Aires. GLI’s team of North America, Latin American and Caribbean lottery and gaming experts will be on hand at GLI’s booth BH to demonstrate how attendees can benefit from GLI’s tested, proven, and trusted lottery experience. “GLI began nearly 30 years ago with the South Dakota Lottery as their first client and they are still a valued client today,” said Sierra-Hughes. GLI President & CEO James Maida welcomes 2018 Latin American and Caribbean Regulators “Since then, GLI has partnered Roundtable attendees with lotteries across the globe, providing
2018 Latin American and Caribbean Regulators current state of gaming and lottery technol- a comprehensive suite of services such as Roundtable attendees sign in ogy to give them a deep understanding of policy and legislation consultancy, testing the impact of technological innovation on and certification, and security audits. In current and future regulatory development fact, no other lab in the world can provide cryptocurrencies. This keeps each Roundta- throughout the region,” Sierra-Hughes global reach to all the jurisdictions in the ble experience fresh, different, and unique.” explained. “GLI’s goal is always to provide a world for the benefit of lottery operators, framework for the establishment of strong, regulators, and suppliers than GLI.” Roundtable Focuses effective, yet prudent, regulations without on New Technologies restricting technology. From our perspec- “Participating in the region’s most According to Sierra-Hughes, how regulators tive, it is imperative that future technology important and prestigious lottery confer- proactively respond to the rapid advance- can develop freely. This is a cornerstone ence underscores GLI’s commitment to ment of gaming and lottery technologies of our highly regarded GLI Technical the Latin American and Caribbean lottery is an ongoing focus of the Latin American Standards, which embrace the concept industry, as does GLI recently being and Caribbean Regulators Roundtables. of technological innovation, allowing for named to be the first test laboratory to be constant revision as new gaming and lottery accredited by the Lottery of the City of “We strive to provide regulators with the technologies emerge. This provides direct Buenos Aires (LOTBA),” Sierra-Hughes latest and most up-to-date assessment of the policy, regulatory and technical support concluded.
34 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 35 36 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 37 38 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 39 40 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 41 42 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 43 44 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 45 PUBLIC GAMING INTERVIEWS
Helena Pereira
Marketing Director of Szrek2Solutions Independent Review of Security and Non-repudiation of the Szrek2Solutions Electronic Draw System (EDS) by Bulletproof, a GLI Company For this reason, we believe the industry as a are due to hardware faults, software faults, PGRI Interviews whole would benefit from transparency in or fraud. Helena Pereira the draw process through proof of integrity Who is this Review most relevant to— which guarantees the integrity of the who are you trying to communicate the Marketing Director of whole random number generation process. results of this Bulletproof independent Szrek2Solutions, about the This independent review by Bulletproof review to? significance of the independent highlights the importance of proof of security review performed integrity in draw systems and confirms Helena Pereira: We need to reach security by Bulletproof that our technology provides this unique directors, IT directors, and draw staff, but value proposition. Lotteries that use our our audience is very much the executive directors and key decision makers in Paul Jason: Helena, can you tell us Trusted Draw and Trusted Audit systems lotteries who are determining whether to the motivations for why Szrek2Solutions are guaranteed that they will not have any use an electronic draw system. We want did this review with Bulletproof? undetected draw problems, whether they to make them all aware that the risks of Helena Pereira: Yes, of course. In 2005, Szrek patented a method for random number generation that generates unpredictable random numbers with verifi- ability of those same random numbers. Szrek developed this into a technology and offered it to many lotteries. Elsewhere in the industry, there have been problems with electronic draw results which were difficult to trace and conclusively detect. More generally, we believe that the reliability of electronic random number generation must be related to whether the random numbers can be verified for integrity. To say that a problem has not been noticed is not to say that one has not occurred, as random numbers all look the same! See Figure 1
46 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 using random number generators can be At the PGRI conference in NYC, represented as chutes. They include software eradicated by using RNGs which provide you illustrated this differentiating substitution, hardware substitution, draw nonrepudiation of draw outcomes. We factor of your technology using a game. time substitution, phishing, hardware de- believe that transparency and 100% fault It was a wonderful presentation. terioration, substitution of numbers drawn, and fraud detection need to become a Helena Pereira: Yes. I illustrated the and inadequate RNG design and implemen- standard required from any RNG solution potential risks and benefits of an electronic tation. Each time a lottery encounters one used by the industry. The industry draw system using the game Chutes and of these risks, it falls behind in the game, continues to be exposed to security risks, Ladders. (See Figure 1.) In this game, “the moving away from its goals. unless transparency and nonrepudiation of Chutes and Ladders of Electronic Draw However, when the electronic draw system the draw outcomes is being enforced. Systems” lotteries can benefit from the that the lottery uses has nonrepudiation unique opportunities offered by electronic We hope to change the way of thinking with proof of integrity, all of these risks draw systems - the ability to develop new regarding electronic draw systems: with can be eradicated - immediately detected games, reach new customer segments, to proof of integrity for every draw and con- by a verification process on an independent make draw processes more efficient, and sistent verification, electronic draw systems system. We illustrate the playing field for an to save money. In the game, the benefits provide a viable, secure alternative to electronic draw system with nonrepudiation are represented by ladders, and each time mechanical machines at a much lower price and verification in Figure 2: you will notice the lottery climbs a ladder it moves closer point. Similarly to how gaming systems that the risks still exist, but there are no to meeting its goals. However, there use an independent ICS system to ensure chutes. This is because all faults and attacks are different risks associated with using gaming system integrity, an electronic draw are immediately detected, and thus the risks electronic draw systems as well. These are system must also provide nonrepudiation are greatly mitigated. the vectors of attack or ways that a draw and independent verification of integrity for system can be compromised and they are the draw process. The outcome: Lottery benefits from the advantages of electronic draw systems without worrying about the risks.
Bulletproof, a GLI company, recently The use of the independent Trusted Audit evaluated Szrek2Solutions’ RNG system completes the chain of trust in solution, Trusted Draw™ and Trusted random number generation through Audit™. The final report ‘Independent validation and independent audit of Review of Security and Non-repudiation the draw results. It verifies the seed for of the Szrek2Solutions Electronic Draw the random number generation and the System (EDS)’ validated Szrek’s RNG supplied result data. Then it recreates the draw solution as meeting or exceeding draw results and thus provides conclusive the best practices by providing conclu- proof of integrity and non-repudiation sive auditability and proof of integrity. in the random number and draw result generation process.” To quote from the executive summary of the report: “The assessed electronic Bulletproof identified the key integrity draw system, Trusted Draw, utilizes factors of the Szrek RNG: “The capabil- cryptographic hardware and algorithms ity to detect hardware faults, software in its methodology to problems and fraud provide proof of integrity attempts, and to reproduce through non-repudiation or verify the draw results, in the generation of are key integrity factors in random numbers. It the Szrek2Solutions EDS. creates unpredictable, In Bulletproof’s experi- unmodifiable data which ence, primarily protective is independently verifi- security measures have been able. Hardware as well as the focus in EDS solutions software faults and attacks in the industry so far, against the RNG and its lacking reproducibility and components are conclusively conclusive verifiability of the detectable. draw results.”
Figure 2
PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 47 Lottery Explodes into the World of Casino Gaming
MAGINE A WORLD where the slot screen attached to the newer machines. And has – the massive footprint of tens of machine can be utilized in new ways when you walk away, the communication is thousands of slot machines. These devices to unlock greater value for the operator automatically disconnected.” are already bought and paid for, and they Iand the players. That is the game-changing already have the attention and engagement technology called JCM FUZION. When With their capability to combine multiple of millions of consumers. you connect JCM’s new GEN5 printer features, and services, slot machines fueled and the iVIZION bill validator to the by FUZION technology are well-positioned “Instead of figuring out how to launch compatible back-end CMS, you unleash to attract non-traditional slot machine new products and struggle through the the power of FUZION. Every machine on players, while also giving traditional slot high-cost and unprofitable introduction your slot floor has the potential to deliver players more entertainment options right at and growth stages of the product life cycle, a server-driven suite of player-focused, their fingertips. why not figure out how to extend the revenue-driving features. FUZION can mature stage, which is the most profitable turn every slot machine into a multi-line stage. The costs of product development, profit center, with lottery tickets, sports launch, building the brand, acquiring the wagering, promotions, and more at your early adopters, and investing to drive for players’ fingertips. FUZION is at the core mass-market acceptance are in the past. of the future-ready casino floor. Slot machines are in the stage where all these costs have been borne and you have a The makers of last-generation slot Here are some of the features: product with mass-market appeal. It’s time machines would not recognize the slot Lottery: Slots with FUZION technology to innovate for the purpose of reaping the machines of today and their enhanced have the ability to sell and redeem lottery rewards from decades of investment and capabilities powered by JCM Global’s new tickets and trigger targeted promotional massive consumer engagement.” FUZION™. This breakthrough technol- messages before large jackpot drawings The FUZION-powered slot machines ogy turns slot machines into multi-line Race and Sports Betting: Slots with not only benefit the casino by expanding profit centers. They can vend and redeem FUZION technology have the potential profit-generating capabilities, but they also lottery tickets, conduct race and sports to place race and sports bets and print a dramatically improve the gaming experi- betting, deliver cross-enterprise promo- wager ticket. Casinos also may enable daily ence for the player. The player is provided tional coupons, enable real-time currency fantasy sports gaming through their own the convenience of conducting all types of exchanges, streamline IRS tax form platform or through a third party’s. processing, and allow players to participate transactions at the slot machine. The player Promotions: FUZION ties the enterprise no longer has to interrupt their gaming in Daily Fantasy Sports. And players don’t together with system-generated promotions, even have to leave their seats! experience to walk across the room to buy delivered directly to the player, both carded chips, exchange currency for tickets, place a FUZION-powered slots can also be and non-carded. This can include drawings, wager on their favorite sports team, cash-out, connected by Mobile I/O™ technology, which collectible promotions, special events, and or report winnings to tax authorities. allows casinos with legacy, reel spinners, player outreach. or other games without picture-in-picture Currency Exchange: The system’s bill JCM Global is the world’s leading transac- capabilities to use FUZION to enable players validator accepts the world’s currencies, tion technologies supplier for the banking, to connect with the game via smartphones with exchange rates that can be preset or retail, kiosk, and gaming industries. With through JCM’s Intelligent Bezel. calculated in real-time. unsurpassed service and support, JCM Global is trusted by operators, manufactur- JCM Global Vice President of Worldwide Enhanced Ticket Templates: FUZION ers and integrators on six continents. Its Marketing Tom Nieman said, “You can take delivers server-based graphic templates that extensive line of award-winning products your smart phone, tap it to the bill validator can be updated as often as needed, like set global standards with ground-breaking bezel, and your phone creates a temporary sports book tickets, promo coupons, lottery peripheral transaction components, digital connection with the FUZION tickets, etc.. High quality graphics enhance innovate digital media hardware, and the interface through a BlueTooth connec- the customer experience. systems to tie them together. tion. When your mobile device is in close In a recent interview, Nieman described the proximity to the slot machine, you can do all thinking that propelled the development of the things that you would be able to do on the the FUZION technology. video screen attached to the newer machines. Now you’re carrying around a screen on your “At JCM, we took a step back and asked mobile device and you can do all of the things how could operators better leverage the For more information, visit that you would be able to do on the video most incredible asset this industry already www.jcmglobal.com.
48 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 Kambi commitment to Regulated Markets Pays off for its Partners and Players
ambi’s growth is being driven by a growing global customer base. Now poised to become the leading Ksportbook in the U.S., Kambi customer- focus is paying off for all Lottery industry stakeholders. Kambi appreciates the oppor- tunity to serve and appreciates the thought- ful and intelligent approach to regulation that U.S. jurisdictions are implementing. The U.S. market is Kambi’s primary focus. Kambi’s product and value proposition have been molded to meet the needs of its U.S. partners and its U.S. focus will continue to drive its strategic direction and initaitives. The New Jersey launch has been fantastic for the industry and for Kambi which now has more than 70% of the New Jersey online market. U.S. customer-facing operators like DraftKings and Rush Street rely on Kambi sportbook to ensure reli- ability and profitability. And as markets like Sweden open up to multiple licensees to serve the players, there is The launch comes after Kambi and 888 888 partnership, which has been successful also tremendous global potential for Kambi’s received a Transactional Waiver from New in Europe, has been extended to support expertise to drive success for its partners. Jersey’s Division of Gaming Enforcement, 888’s visionary sports wagering plans in the third time Kambi has successfully New Jersey and further afield in the U.S. Kambi powers 888’s New completed the thorough regulatory process, Jersey sports betting launch highlighting its clean technology and “As the only operator active in the country’s corporate probity credentials. three regulated online gaming states, 888 is 888sport becomes the third Kambi- already a recognised brand in the U.S. and powered wagering brand in the U.S. Kambi and 888 will look to replicate the I’m confident that, with a Kambi Sportsbook, state. Kambi has strengthened its long- success 888sport has enjoyed across a 888sport will establish itself as a successful standing relationship with 888 Holdings number of regulated markets in Europe, multi-state sports wagering operator.” after the operator launched its Kambi- including Spain, Denmark and the UK, powered 888sport wagering brand into the which has transformed 888sport into a U.S. state of New Jersey. tier-one sports betting brand. About Kambi: Kambi is a provider The launch sees 888sport become the seventh of premium sports betting services online wagering option in New Jersey and to licensed B2C gaming operators. the third operator to leverage Kambi’s Kambi Group plc is listed on First flexible sports betting platform and range of North at Nasdaq Stockholm. Its managed services in the Garden State. services encompass a broad offering from front-end user interface through In addition to offering players the widest 888sport switched to the Kambi Sports- to odds compiling, customer intel- selection of pre-match and in-game book from its previous sports wagering ligence and risk management, built wagering options, 888sport has access to supplier in May 2013 and has since seen on an in-house developed software Kambi’s price differentiation tool, giving it its sports betting revenues grow 10-fold to platform. Kambi’s 22 customers the freedom to adjust odds across all major $75m in 2017. sports in line with their market strategy. include DraftKings, Rush Street In- The performance turnaround led to Kambi teractive, ATG, Kindred Group, 888, urthermore, Kambi will provide 888sport and 888 agreeing a new commercial LeoVegas, Mr Green and Napoleon with its Cash Out product, which hands agreement in 2017, which extended the Games. Kambi employs more than players the opportunity to trade their wager partnership for the long-term. 600 staff across offices in Malta for a live cash valuation, as well as the (headquarters), Bucharest, London, recently launched Teaser+, which delivers Kristian Nylen, Kambi Chief Executive Manila, Stockholm and Sydney. greater value on teaser parlays. Officer, said: “I’m delighted the Kambi and
PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 49 Abacus in-lane: The lottery point-of-sale whose time has come
he games-of-chance industry And all operational methods have been Today, ABACUS is working with all the and retailing is rapidly changing vetted over five years of real-world success- major lottery system suppliers. We are to adapt to changing consumer ful execution in Europe and other parts of likewise engaged with many national Tbehaviours. Thankfully, the consumers’ the world. And now, the time has come retail chains and we partner the largest love for lottery games continues to grow. for in-lane sales to transform the U.S. retail vendors working within their The key is to make Lottery easier to play market-place. It’s game-on! new retailer ‘Ecosystems’. We are also for its core players, and more accessible preparing to roll out in-lane to our first to a broader range of consumer groups. ABACUS has been the technology partner American jurisdiction, using the NASPL And Lottery is making all the right moves enabling in-lane lottery sales in Europe for API technologies in early 2019. over five years. Our blue-print for success is One of the things that makes ABACUS unique is that we are vendor agnostic - we want everyone to be successful. • For multistate retailers, we offer the exact same experience, regardless of the states they operate in or the lotteries whose tickets they sell. • For lotteries we want to help expand to new retailers and grow sales to new records. • For players we want to create a hassle-free, fee-free purchase, as easy as cornflakes. ABACUS makes this easy, we are already integrating with your vendor, and may already be integrating with your dream retailer. Take a look at your system contract, you may have in-lane sales as an to accomplish that mission-critical goal. fine-tuned and ready to apply for the benefit offered option today, in which case sales Increasing the number of retailers and of U.S. lotteries, retailers and consumers. growth is an email away. the diversity of POS and trade-styles has long been viewed as the key to increasing ABACUS shares the NASPL values and lottery sales. That is why the impact of principles for in-lane sales: Make it easy Give us a call and we can walk you enabling in-lane POS is so transforma- for players, with no additional cost and no through the details and the potential tional. In-lane has become a truly vital difference from a terminal-ticket, no new new sales opportunities for your lottery. initiative for Team Lottery to open up hardware for retailers, easy for retailers to these new channels of distribution and sell tickets, supporting both instants and meet the needs of its players and its retail draw-based games (DBGs). And in-lane partners alike. Whatever obstacles existed must have MUSL-approved security and in years past that impeded the implemen- be expandable to new trade-style retailers. tation of in-lane have all been overcome. So, when NASPL started the API initia- tive, ABACUS was an eager and active participant. We worked with lotteries and vendors to develop a well-thought-out API framework, together with the governance and administration. Abacus is the only technology partner whose sole focus and mission is API. We have always been Simon Butler pleased to share the insights, experience, Email: [email protected] and expertise gained from five years of Website: www.lotteryeverywhere.com successfully implementing APIs in the Tel.: +44 1604 212314 banking industry.
50 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 On-property sports betting: Laying the groundwork for greater US success sbtech.com
ith a string of successful US US partners, with integrations for both full redefines the in-play experience by offering launches under its belt, leading platform and sportsbook-only options. incrementally rising payouts during a chosen sports betting technology provider period. Inspired by the dynamics of casino SBTechW is now eyeing further growth, For example, Churchill Downs has chosen gaming, it’s set to become the ideal way for building on early achievements in NJ and SBTech for both on-property and online to casino brands to introduce their players to MS. CEO Richard Carter explains the make full use of both our market-leading the thrill of sports betting. company’s stateside strategy. sportsbook and platform solution, utilizing the Chameleon360 iGaming Platform’s In-play is at the heart of both the on- SBTech has been busy working with its full array of player management services, property and mobile experiences, and one partners in the US, launching five on- analytics, AML safeguards, and configu- of our primary goals is to use live betting to property locations in two states for Churchill rable responsible gambling functionalities. unite the two touchpoints through a true Downs, Golden Nugget and Resorts Casino, omni-channel offering that exceeds the and the stage is now set for us to leverage our In addition, with tailored front ends, expectations of all key demographics. early momentum and expand across the US. bespoke trading strategies, non-pooled risk management and the industry’s most Regulation-ready for We will spearhead this strategy with our best- in-class betting kiosks, which have proved to the omni-channel future be very popular with our partners and their As the proud partner of Tier 1 operators patrons, complementing the strength of our and state lotteries in 15 of the world’s most sportsbook with the sector’s best UI. competitive regulated markets, our unrivaled experience of achieving full compliance, Across all our clients’ US properties, players unmatched speed to market, the depth and appreciate the huge choice of events and breadth of our event coverage and range markets on offer, and the percentage of bets advanced automation technology, all three of markets, and our proven track record of placed as parlays is already far higher on self- operators offer unique pricing across all delivering exceptional ROI all stood us in service terminals than via cashier. This trend sporting events as they increase market good stead as we prepared to enter the US has been key to delivering higher margin share and build the foundations of success arena. We’re now looking forward to many return for our operators and will be crucial in other states. years of close collaboration with our partners to future performance across all touchpoints. in multiple states, inspired by a shared vision Masters of in-play of creating the very best customer journeys. We’ve been delighted with the response Another critical dimension of the SBTech from players across all five properties. US solution is our industry-leading in-play As the US market grows, we’ll be rolling out sports have been a key element of our sports product. Thanks to the talent and hard work additional mobile and mobile on-property product for many years and by fine-tuning of our R&D teams, which consistently go solutions over the coming months, comple- our offering in line with local regulations above and beyond to build innovations that menting our retail product as we construct and promoting a wide range of player props, move our industry forward, we’ve dominated America’s most complete sports betting enhanced odds parlays and competitive the live betting field for many years, winning offering, one that constantly evolves to meet spreads, we’ve been able to tap into the every award going and leading the line in the targets of our clients and the demands of passion of American bettors through an the development of new features that rapidly their players. intuitive understanding of their preferences. become industry staples. With in-state server hosting, data centers Leading-edge tech Action Betting, our bet recommendation and geo-compliance protocols in place, we Our core proprietary technology, all built engine based on a proprietary machine have already established the technological in-house, will continue to underpin our on- learning algorithm, provides players with and regulatory infrastructure to deliver full property and online success. The modular real-time suggestions, derived from their omni-channel betting that both partners and construction and flexible architecture of our previous behavior and – above all – their players know they can rely on, setting the systems power the varying approaches of our prior successes. Pulse Bet, meanwhile, industry gold standard for years to come.
PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 51 NASPL Conference September 25 to 28 in Cleveland, Ohio 1 2 3 4 5
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1. Rose Hudson and Jim Kennedy 2. Barbara Hutchins and Jan Kirk 3. Doug Pollard and Leo Mamorsky 4. Mike Pinkus and Art Kiuttu 5. Tamika Ligon and Rose Hudson 6. Karen Fournet, Anne Marie Hayden, Rose Hudson and Charles Armstrong 7. Carole Hedinger 8. Chryssa Amanatidou and Chista Estrella 9. Nicole Kostura, Pat McDonald, Gregory Bowers, and Byron Boothe 10. Paul Ostendorf, Jennifer Bohlig, Rollo Redburn, Annette Redburn 11. John Pollard and Steven Fingold 12. Nikos Nikolakopoulos, Emmanuel Bailey, Charles McIntyre 13. Rose Longo-White, Vasia Bakalis, Linda Plante, John Conforti 14. Gordon Medenica, Tom Spiegel, and Randy Marriner 15. Flora Jones, Carole Hedinger, Sarah Taylor, Carrie Stroud 16. Linda Saferin, Steve Saferin, Carole Hedinger 17. Beth Bresnahan 18. Brian Roberts 19. Tom Spiegel and Gretchen Corbin 20. Dennis Berg and Jocelyn Kremer 21. Michael Capen and Armando Perez Cruz 22. Adam Caughill and Paul Jason 23. Peg Rose and Marty Morrow 24. Bill Breslo 25. Jennifer Westbury, Teresa Immel, Shay Wahl, Doug Pollard 26. Sylvia Main and Dr. Stephen Wade 27. Gardner Gurney, Nancy Bettcher, Byron Peterson, Herb Delehanty
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28. Shay Wahl, Doug Pollard, Teresa Immel 29. Darrell Smith 30. Helena Periera 31. Scott Bowen, Robert O’Neil, Paul Sternberg, Bill Hanson 32. Paul Riley, Angela Wiczek, Michelle Carney, Wendy Montgomery 33. Rebecca Hargrove 34. Jay Gendron 35. Pat McHugh 36. Antonios Kerastaris 37. Doug Pollard 38. Charles McIntyre 39. Dennis Berg and Charles McIntyre 40. Renato Ascoli, Gerry Aubin, Jay Gendron 41. James Hutchinson and Nat Worley 42. Bret Toyne and Robert Tirloni 43. Wendy Montgomery and Cameron Waldie 44. Stefano Monterosso, Gary Grief, Larry King 45. Fabio Celadon and Robert Vincent 46. Gerry Aubin, Wendy Montgomery, Gary Grief 47. Todd Handzo and Michael Capen 48. Scott Jensen and Chris Robertson 49. Peg Rose and Vernon Kirk 50. Nick Papadoglou, Nikos Nikolakopoulos, May Scheve Readon, Antonios Kerastaris 51. Fabio Celadon, Tom Spiegel, Renato Ascoli 52. Rhonda Muehlenbruch and Simone Harrison
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53. Angela Wiczek and Lisa Levine 54. Gayle Kennedy and Jeanna King 55. Keith Cash, Michelle Carney, Renato Ascoli 56. Rachel Barber and Renato Ascoli 57. Edith McCarthy and Arjan van’t Veer 58. Michelle Carney, Fabio Celadon, Arjan van’t Veer, Rachel Barber, Renato Ascoli 59. Joni Hovi and Paul Jason 60. Ron Borusso, Fran Gruden, Patti Gruden 61. David Barden, May Scheve Reardon, Bret Toyne 62. Gordon Medenica 63. Emily Fussell, Bonnie Fussell, and Steve Saferin 64. Randall Lex and Leo Mamorsky 65. Andrew White, Mackenzie Whitacre, Tamika Ligon, David Gale 66. Angela Wiczek and Renato Ascoli 67. Lorne Weil, Rebecca Hargrive, Brooks Pierce 68. Antonios Kerastaris, Rose Hudson, Jeff Anderson 69. Chris Sfatos and Chryssa Amanatidou 70. Scott Hoss 71. Emmanuel Bailey, Byron Boothe, Nikos Nikolakopoulos 72. Chryssa Amanatidou and Nick Papadoglou 73. Greg Smith and Antonios Kersastaris 74. Team Missouri Lottery and friends 75. Jeff Anderson and John Donahue 76. John Barrett, Brendan McCarthy, Dennis Miller 77. Craig Fitzgerald and Carole Hedinger 78. Gordon Medenica, Randy Marriner, Renato Ascoli
54 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018
Lottery Industry Hall of Fame Induction Ceremony NASPL, Cleveland, Ohio
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PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 55 Global Gaming Expo (G2E) October 9 to 11 in Las Vegas
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1. John Donahue, INTRALOT and Robert Vincent, IGT 2. Michael Capen and Karen Sierra Hughes, GLI 3. Team GLI 4. Tom Nieman, JCM 5. David Delgado and Team Arrow International 6. Rachel Barber, IGT 7. Max Goldstein and Team Carmanah Signs 8. Moti Malul, NeoGames on right side 9. Lorne Weil, Aimee Remey, and Team Inspired Entertainment 10. Barry Cottle and Pat McHugh, Scientific Games 11. Barak Matalon, NeoGames and John Pollard 12. Michael Conforti, Scientific Games 13. Pat McHugh and Sean Athey, Scientific Games Corp. 14. Jay Gendron and Marco Tasso, IGT 15. Max Goldstein (Carmanah Signs) and Tony Fontaine (InComm) 16. Julien Boinet, Francaise des Jeux 17. Warren Allen and Team Grover Gaming 18. Colleen Stanton and Aimee Remey, Inspired Entertainment 19. Nick Weil, Inspired Entertainment 20. Tom Napolitano (IGT), Scott Bowen(NeoPollard), Yariv Sarig (NeoGames) 21. George Kerrigan and Tom Shortall, IGT 22. Yariv Sarig and Moti Malul, NeoGames
56 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 57 EL Industry Days 2018 Navigating Towards Digital Opportunity
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1. Arjan van’t Veer 2. Hansjörg Höltkemeier 3. Robert Chvatal 4. Arjan van’t Veer & Jutta Buyse 5. Antonios Kerastaris 6. Jutta Buyse & Wendy Montgomery 7. Kamil Ziegler 8. Paul Riley 9. Younes El Mechrafi & Thierry Gabarret 10. Robert Chvatal 11. Hansjörg Höltkemeier 12. Dermot Griffin 13. Jari Vähänen 14. Hansjörg Höltkemeier and audience 15. Joni Hovi 16. Robert Chvatal & Hansjörg Höltkemeier 17. Antonios Kerastaris 18. Chryssa Amanatidou and Jeanna King 19. Women’s Initiative in Lottery Leadership Reception 20. Rebecca Hargrove and Catherine Barba Chiaramonti
58 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 The European Lotteries Industry Days 2018, held in the beautiful city of Prague from June 4-6, was a huge success, drawing 323 delegates from over 60 lotteries - a record to date for the European Lotteries.
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7. Robert Chvatal & Hansjörg Höltkemeier 8. Paul Riley 9. Robert Chvatal 10. Pall Palsson & Agnieszka Rylska 11. Younes El Mechrafi & Marine Egnel 12. Robin Bowler 13. Stéphane Pallez & Rebecca Hargrove & Antonios Kerastaris 14. Jannie Haek and awards presenters 15. Catherine Barba Chiaramonti 16. Pall Palsson 17. Younes El Mechrafi & Jeanna King 18. Rebecca Hargrove & Catherine Barba Chiaramonti 19. Jutta Buyse & Arjan van’t Veer 20. Paul Riley 21. Catherine Barba Chiaramonti 22. Arjan van’t Veer & Jutta Buyse & George Vassilaras 23. Olli Sarekoski 24. Younes El Mechrafi & Stéphane Pallez 25. Hansjörg Höltkemeier 26. Jack Skinner & Olli Sarekoski & Matthew Forsyth
PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 59 Pulse of the Industry
These news stories comprise a very small fraction of the gaming and lottery news stories posted every day to PublicGaming.com. Too, these stories are the highly edited short versions. You can visit our news website PublicGaming.com and access all of its departments for free, including search to read the full version of the articles. Sign up for our free e-newsletter by sending your e-mail address to [email protected].
Jesús Huerta Almendro was six successful years in the role. Malul has been with NeoGames for 10 years and has served as WORLD NEWS appointed President and CEO executive VP of sales and business development. of Sociedad Estatal Loterías y “We are grateful to Ilan Rosen, who has been Patrik Hofbauer appointed CEO Apuestas del Estado (SELAE). with us for nine years, serving as CEO for six of them, for driving the company to its current for Svenska Spel in Sweden The Lottery is one of the most profitable busi- strong position as market leader in many The Board of Directors of Svenska Spel has nesses in the Spanish State. It is responsible for segments and we wish him continued luck and named Patrik Hofbauer as the company’s new the management of state-controlled games of success in his future endeavors,” commented CEO. Patrik succeeds Lennart Käll who previ- chance such as the Euromillions, the Bonoloto, NeoGames founder and chairman Barak ously announced that he was resigning to pursue the Gordo de la Primitiva, the Quiniela and, of Matalon. his own business interests and directorships. course, the National Lottery. In 2017, it generated Patrik Hofbauer is 49 years old and is currently an annual turnover of almost 9 billion euros and “Moti has been pivotal to the success of CEO of Telenor Sweden. He will be taking up redistributed 2.4 billion euros back to the State. NeoGames in the last decade, opening new markets and ensuring that our customers see the position as President and CEO of Svenska Jesús Huerta Almendro was born in Cadiz/ significant growth in their operations with our Spel no later than mid-December 2018. Spain in 1965. He holds a Law degree, a Master’s products and services. We have no doubt that Patrik Hofbauer has extensive senior manage- degree in Healthcare Management and a diploma he is the right person to lead the company’s ment experience and, in addition to his current in People Development & Management. growth and expansion into exciting new business role as CEO of Telenor Sweden, he has previ- Previously in his career, he has been the opportunities.” ously been CEO of Telenor Broadcast, Canal economic and general services director of the Digital, NEC Scandinavia and Clear Channel. Hospital-University Puerto Real, managing “I’m honored and thrilled to be given this vote of Patrik’s CV also includes a 10-year career as a director of the public company Hospital Alto confidence by the company and the board,” said professional ice hockey goalkeeper with Örebro, Guadalquivir, and General Secretary of Andalu- Malul. “It has been an amazing opportunity to Björklöven and Djurgården. sian Healthcare Public Services, with an annual lead the relationships with our customers for the budget of around 10 billion euros. past 10 years, as our customers are our biggest “I’m delighted to welcome Patrik Hofbauer to asset and will always continue to be. The growth Svenska Spel. The experience he brings with him In 2012 he was appointed managing director opportunities we have are phenomenal – espe- both from commerce and the world of sports of Andalusian Social Services and Dependence cially with current developments the US market, will be invaluable, especially given the exciting public company (The Agency‘s mission is in which we have been operating successfully for prospects facing Svenska Spel as the new Swedish to improve the social welfare of citizens and several years already, and with the recent strategic gambling legislation enters into force in the new guaranteeing the care and protection of people in deal we signed with William Hill.” year. I am convinced that Patrik Hofbauer is the situations of dependency). right person to lead the company into this new From 2013 to 2017, he was Director of Digital Malul joined NeoGames to establish and lead gambling market,” says Erik Strand, chairman of Policy for the Junta de Andalucía (government sales, marketing and customer growth. His prior Svenska Spel. of the Autonomous Community of Andalusia). experience included 12 years in the telecom During the past year, he worked as General and Internet industries, serving in key sales, “Svenska Spel occupies a strong position, enjoys Director for the Budget in the same Junta. marketing and product management positions a strong brand and is facing exciting challenges in companies such as Ericsson and Smile Media. as a result of the new gambling legislation. I Moti holds an MBA from Tel Aviv University. enjoy the connection between business and sport, something that is very close to my heart. UK Gambling Commission: I am now very much looking forward to leading the company into the next phase together with Moti Malul appointed Sixteen European, US Gambling the employees of Svenska Spel,” says Patrik NeoGames CEO Regulators Teaming Up to Tackle Hofbauer. Svenska Spel’s previous CEO Lennart NeoGames, a global leader in providing Loot Boxes, Skin Gambling Käll departed on 19 July. iLottery and iGaming solutions and services, Agreeing to work together to address the “risks announced the appointment of Moti Malul as created by the blurring of lines between gaming CEO to replace Ilan Rosen, who resigned after and gambling,”, the collaboration will also tackle
60 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 third-party websites that offer players the chance Instant Games, Betting and Online Casino. Albania passes law banning to gamble or sell in-game items. Hrvatska Lutrija is the state licensed lottery sports betting, online gambling organization, with a long and successful The legislation will force the closure of slot Jean-Luc Moner-Banet, tradition of 45 years in organizing games machine parlors, betting shops and all other WLAPresident, announces of chance in Croatia, offering full variety forms of sports wagering including via online the appointment of Luca of gaming products, including the lotteries, sites. It will, however, allow gambling at casinos instant lotteries, betting, casinos and slot clubs, in large hotels and a televised bingo game and Luca Esposito Poleo named participating also in the multijurisdictional national lottery will continue to operate because lottery games, EuroJackpot. In 2017 Hrvatska they have an ongoing concession. WLA Executive Director Lutrija generated over €150 million in stakes. Dear WLA Members, The chosen model of cooperation is a Gross Casinos Austria International I am pleased to announce the appointment of Gaming Revenue share model where Croatian earnings up 17.6 per cent in Luca Esposito Poleo as the new WLA Executive lottery and INTRALOT share investment first half of 2018 Director. Luca is no stranger to the lottery world. cost, responsibility, risks, and ultimately profits Having worked the past ten years for IGT, he according to a pre-negotiated split. brings with him a wealth of lottery knowledge. The Swedish administrative Specifically, the agreement includes the deploy- court of appeal (Sw. Kammarrätten) Luca hails from Italy, where he received a ment, customization and integration of IN- Master’s Degree in Computer Science and Tele- TRALOT’s holistic and cross-channel Lottery upholds decision to impose fines communication from the University of Calabria Gaming Platform based on the L10 Product, against Swedish evening papers in 2003. Shortly thereafter he began working as the next generation of LOTOS platform, along for providing links to offshore a consultant for such major global concerns as with the terminal software for the operation Accenture and Cambridge Technology Partners. of its 3.000 terminals, the Interactive Gaming gambling services In 2009 he joined IGT Switzerland, working Platform (based on the Player PULSE CRM- The Swedish administrative court of appeal the first four years as Technology Director for Platform) supporting all Hrvatska Lutrija concluded that gambling advertisements are of the Central European region. In this capacity he gaming verticals, the innovative cross-channel commercial nature and, as such, not protected served the technological needs of gaming-indus- Content Management System (based on the by the Swedish Fundamental Law on Freedom try clients in Switzerland, Germany, Belgium, CANVAS Platform) and the Retailer Manage- of Expression. Furthermore, the court did not and Luxembourg. In 2013 Luca assumed the ment System (based on the Retailer PULSE assess that the prohibition against promotion position of Country Manager for IGT, where he CRM-Platform), including full subset of the of offshore gambling services is incompatible remained until joining the WLA. In his role as respective software components. INTRALOT with EU law. As such, the Swedish administra- Country Manager for IGT, Luca worked closely will also provide the Lottery with dedicated tive court rejected the appeal and upheld the with the lotteries of Switzerland, Belgium, training and knowledge transfer, as well as Swedish Gambling Authority’s decision to issue and Luxembourg. It is here that he gained related system operation, software maintenance the injunction. deep insight into day-to-day lottery operations and supporting activities. and developed a sensitivity for the needs and Majority of New Gambling concerns of lotteries. French grocer Casino goes Accounts in Sweden Registered cashierless in a preemptive Owing to his solid technological background with International Operators and his close ties to the lottery sector, we are move against Amazon Go Nearly 60% of all Swedes aged between INTRALOTcertain CMYKthat as MattWLA Guide Executive Director, Luca Facing the looming threat of ecommerce giant 18-74 have an online gambling account, up will be an asset to the Basel Business office and Amazon’s automated stores, French grocery 12% from last year. Svenska Spel, the state-run a great value to the WLA as a whole. Please join chain Casino has opened its first cashier-free operator that holds the monopoly over most of me in welcoming him. location in Paris. the gambling services provided in Sweden, still “The retail business is now innovation-centric, holds the largest share of all registered accounts. and this goes beyond mere technology,” However, international operators seem to be said Jean-Charles Naouri, chair and CEO of the gaining momentum as approximately 60% of Casino Group, in a statement. “In the future, all new registrations made over the past twelve the gap between brick-and-mortar and digital months were namely with companies targeting INTRALOT signs 10-year stores will close. Physical and digital distribu- Swedish gamblers from outside the country. contract with Croatian State tion channels will not only need to adapt to Israeli Court Takes Aim tastes and trends but also to anticipate them.” Orange:Lottery CMYK 0/70/100/0 Hrvatska Lutrija at Online Gambling Domains Grey: CMYKINTRALOT 70/50/65/50 was awarded a 10-year contract Poland Totalizator Sportowy Three unauthorized gambling domains for the implementation of the new integrated announced its iLotto will be – p2vbet.com, 1xbet.com, and totobet777. Lotos10 ecosystem with the Omni Channel com – were blocked from targeting Israeli capability, the deployment of innovative Retail launched in November customers by a court-ordered injunction. As technology and the provision of operational Following the launch of non-cash payments a result of the domain blockage, visitors to the support. All of the above will be customised to at official terminals earlier this year, Totaliza- sites are met with a message stating the sites are the specific needs and requirements of Hrvatska tor Sportowy has continued to roll out card prohibited by law. However, experts say there Lutrija and the Croatian gaming market, sup- payment options with partners like Carrefour are easy workarounds. Israel is just the latest porting the strategic and operational objectives stores, Inmedio, and Totolotek. Additionally, country to blacklist gambling domains. Poland’s for the extensive growth and future expansion of Polish people will soon be able to play the state blacklist is comprised of more than 2,400 Hrvatska Lutrija in the verticals of Numerical & lottery online. domains, while Italy’s new coalition government
PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 61 is anti-gambling and has enacted a ban on Ontario Lottery & player registration and player accounts. It will gambling advertisements. Meanwhile, Greece Gaming breaking sales also have world-leading Responsible Gambling and Bulgaria have blacklists of more than 400 (RG) options built in, giving players the ability and 100 domains respectively. and profit records to set limits, self-exclusions and other supports Net profit to the province was $2.49 billion in tailored to their needs. Swedish Gaming Regulatory the 2017-18 fiscal year, an increase of more than Receives Over 60 Applications five per cent from the previous year. Casinos, from Gambling Operators slots and online gaming all showed higher profits, while the take from lottery ticket sales was down The Swedish gaming regulatory body Lotteriins- slightly, says OLG’s new annual report. pektionen has received more than 60 applications from gambling operators. Sweden’s regulated gambling market will present an opportunity for gambling operators to reap legal revenue from next year. At least 55 of these applicants are Loto Quebec Posts Strong seeking online casino and sports betting licenses in the liberalized gambling market, which will Fiscal Q1 2018-19 kick in action on January 1, 2019. Maine Lottery sets record for Loto-Québec reports positive results for the start of the 20182019 financial year. Consoli- Czech Govt Struggling To sales and net funds transferred dated revenues reached $686.5 M, an increase of Collect Fines Levied against The Maine Lottery recorded its best 12 months $41.6 M (+6.4%) compared to the same period ever in the fiscal year 2018 that just ended, last year. Net income amounted to $359.8 M, a Unlicensed iGaming Operators setting records for sales, prize money, com- gain of $34.7 M (+10.7%). “Loto-Québec was Czech Republic’s online gambling market had missions to retailers and funds transferred able to attain positive results during this first undergone a regulatory revamp which took to the state. Total lottery sales were $294.1 quarter thanks to the efforts of all of its sectors. effect in January last year. A report claims million, with retailers earning $19.4 million in I’d like to thank all our teams for their excellent that the Ministry only collected CZK240k commissions — both all-time high totals since work,” said Lynne Roiter, Loto-Québec’s ($10,750) out of CZK455 million ($20.4 the lottery was established in 1974. Instant President and CEO. The lotteries sector million) in fines imposed on some gambling ticket sales totaled more than $223.5 million, performed best: Increase of 22.5% in revenues operators since new regulations were imple- also a record. Total sales in 2018 were almost and 28.7% in net income. Lotto Max offered mented. The report says that the Ministry $22 million higher than the previous high of record prizes, and the $60 M jackpot was once does not have adequate tools and legal recourse $272,339,484. again won in Québec. The 100 $ ULTIME to compel companies operating without a lottery was also very popular and produced physical presence in the country to hand over “This has been the Maine Lottery’s best year ever, which resulted in a contribution of $62.3 several millionaires. Instant lottery sales are the money. With the regulated market in place growing thanks to original concepts that for close to two years now, the Ministry has million to Maine’s general fund, the highest total to date,” said Gregory Mineo, director of customers love. Casinos revenues and net gathered 116 names on their blacklist of illegal income were stable at increase 1.4%. Revenues operators who make money from Czech punters the Bureau of Alcoholic Beverages and Lottery Operations. from the lotoquebec.com website, all types of without local approval. games combined, rose by 34.9%. Massachusetts State Lottery returned $997 million in net NORTH AMERICAN profit for the Commonwealth Record-setting revenues result in second-highest NEWS net profit in Lottery’s 47-year history. The John Myers appointed Director Lottery produced its record net profit of $1.039 of the West Virginia Lottery billion in the 2017 fiscal year. Lottery revenues Scientific Games announced rang in at a record high of $5.291 billion, sur- One day after lawmakers asked tough questions that major national retailers passing the previous record of $5.233 billion in about leadership at Lottery, Gov. Jim Justice has FY 2016 by $58 million and topping last fiscal continue piloting the Company’s named John Myers as director of the agency. year’s total of $5.097 billion by $194 million. He replaces Alan Larrick, who resigned Sept. new SCiQ®lottery instant game 1. Myers has been serving as Secretary of Ontario Lottery and retail technology Administration for the Justice Administration, Gaming (OLG) is investing “Lottery instant games are an $87.5 billion a but he has a long work history with Lottery. year global consumer product, including $50 He worked at the West Virginia Lottery from in a new digital foundation billion sold in North America, and they are 2008 to 2017 and was acting director from Greg McKenzie, OLG’s Chief Operating a major driver of consumer retail store visits. 2015-2017. Before working at the agency, Myers Officer: “This platform will allow OLG to add Now for the first time in the lottery industry, was the manager of corporate administration for new games, improve our online offering and SCiQ offers unit-level technology that provides Toyota Motor Manufacturing in Buffalo, West enable mobile responsiveness. We are looking inventory control, security, speed-of-service, Virginia. forward to developing our relationship with merchandising and simplified accounting Bede as OLG continues its digital transforma- functions for retailers,” said Jim Kennedy, tion.” The new digital platform will add to Group Chief Executive, Lottery for Scientific OLG’s existing digital capabilities in areas like Games. “SCiQ is set to revolutionize the way
62 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 lottery products are sold at retail. We believe an opportunity to help drive IGT’s success, and tive ordering technology included in the new that the lottery retail environment will never be a meaningful platform to cultivate the next program means retailers will receive inventory the same.” generation of women in gaming.” based on their individual players’ game demand. SCiQ is an intelligent instant game ecosystem Schenk has more than 14 years of experience in “For any consumer product business, having developed by Scientific Games that modernizes public relations and strategic communications. the appropriate levels of inventory in stores is how the instant game is sold at retail. It improves In her current role, she drives awareness for IGT crucial,” said Kentucky Lottery President and the performance of lottery products and products by managing global gaming communica- CEO Tom Delacenserie. “This proven system eliminates existing challenges to selling lottery in tions including partnership agreements, game and of predicting exactly what individual retailers retail stores. To sell lottery instant games using systems installations, and new game launches. need and ensuring their supply meets consumer the SCiQ system, the retail sales associate simply She also fosters thought leadership by creating, demands will absolutely help us grow sales of selects the games the customer wants to purchase identifying, and facilitating executive speaking this essential product.” through the digital ordering screen, dispenses opportunities to contribute to the overall success “We are honored that the Kentucky Lottery the games with the touch of a button, and gives of IGT. has trusted the full category management of its the games to the customer. Scientific Games’ The Great Women of Gaming Awards bring Scratch-off products to Scientific Games,” said proprietary SCiQ technology automatically global recognition to meaningful contributions Jim Kennedy, Group Chief Executive, tracks every unit, providing lotteries and retailers by exceptional women in the gaming industry by Lottery for Scientific Games. “This program greater visibility into the management and sales annually recognizing a highly vetted select group has been refined over the last several decades, of instant games in real-time. of women for their outstanding contributions. in part by developing advanced technologies, For retail customers, SCiQ also brings the ease to help lotteries create more growth within the Schenk earned two bachelor’s degrees in jour- and convenience of mobile technology to retail product category and responsibly grow proceeds nalism and communications studies from New lottery purchases. The SCiQ ecosystem offers to their good causes, like education in the state Mexico State University, and a master’s degree user-friendly features that, depending on the of Kentucky.” in communications studies from University of options selected, can further speed the purchase Nevada, Las Vegas. The Lottery’s bottom line will be helped not process and even offer customers the ability to only by these increased sales, but also through advance-order games before arriving at a lottery the efficiencies realized through the Scientific retail store. Games Enhanced Partnership program. The SCiQ is now operating as part of pilot programs program is used by more than 20 lotteries in Arizona, Georgia, Maine, New York, North globally, including some of the top performing Carolina, Pennsylvania, South Carolina and lotteries in the world. Texas, with a 300-store production rollout “Any savings and additional sales we can realize currently underway in Ohio. The Kentucky Lottery are vital to our mission,” said Delacenserie. “The Corporation and Scientific Kentucky Lottery isn’t a faceless corporation Games Corporation officials making profits for investors - the more profits have cut the ribbon on a new we make, the more kids get to go to college here in the Commonwealth. That’s something which facility to manage the Lottery’s drives us every day.” IGT Senior Manager, Scratch-off tickets across NHL to announce plans Global Communications, the Commonwealth This signifies the beginning of a full product to dive into lucrative Michelle Schenk, Honored by category management program for instant sports betting industry Global Gaming Women games in the state, the first such change in the International Game Technology PLC Lottery’s 29-year history. Scientific Games Creates announced that Michelle Schenk, IGT’s Senior The new program, called Scientific Games Sportsbook Operations Manager of Global Communications, Gaming, Enhanced Partnership (SGEP), covers every has received a Great Women of Gaming Award Team in Gibraltar aspect of the Kentucky Lottery’s Scratch-off in the Rising Star category from Global Gaming The new team will be led by Stuart Weston, VP, tickets, including game development and Women. The award was presented to Schenk at Sportsbook Operations for SG Digital and will portfolio management, advanced logistics for the Global Gaming Expo (G2E). support customers directly with a sportsbook warehousing and distribution, and Lottery operations service to help grow their sportsbook retailer optimization. The Kentucky Lottery’s “Michelle is strategic and intelligent in her businesses. approach to provide media results that expand instant game product line last year realized $613 the scope of coverage for IGT,” said Renato million in sales. The creation of SG Digital’s Sportsbook Opera- Ascoli, CEO, North America. “She is a proven tions team instantly builds on the company’s Scientific Games has constructed a state-of-the- performer who continuously maximizes on world-class sports betting products and ignites art 41,000-square-foot warehouse in Louisville opportunities to drive the business forward a fast-to-market, full-stack sportsbook portfolio to serve as its hub in the Commonwealth. through global gaming communications.” that includes sports betting, portal, mobile Scratch-off tickets are shipped from the new betting, and retail services. SG Digital can now “Receiving the ‘Great Women in Gaming’ dis- location, and all Kentucky Lottery retailer manage an entire Sportsbook operation for tinction is a tremendous honor, especially among ticket orders are taken and processed here as multiple customers, enabling long-term success the many inspiring and talented women within well. While retailers are still able to call and with less heavy lifting for installations and the gaming industry,” said Schenk. “Working request certain games, the Company’s predic- ongoing sportsbook management. in communications for IGT provides me with PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 63 Keith O’Loughlin, SVP Sportsbook for SG dispensers, ticket menu boards, check writers, benefit our core instant-win scratch ticket sales, Digital, said, “Given the massive opportunity in literature holders, promotional products, highlighting the strategic and financial benefits the U.S. and the continued success of existing mounting fixtures, pop-ups, stands, play of bringing together a variety of lottery solutions markets, the addition of Sportsbook Operations is stations, and game centers in a variety of sizes, in one organization. Pollard Banknote’s commit- a natural step up for our business. The team will configurations, and materials. ment to grow our organization both organically work directly with our partners to operate and run and through acquisitions will continue and we “We are extremely excited about bringing the their sportsbooks, ramping up the value of sports look forward to continued success with Schafer.” Schafer team into the Pollard organization and betting for everyone involved. It’s a new ball game, believe it will be a strategically important new and our partners have asked to tap into our vast IGT Pioneers Tribal Gaming product for us to help lotteries maximize their knowledge to help with day-to-day sportsbook retail sales and generate greater proceeds for Sports Betting with Mississippi operations. Now, we’re completely equipped to their good causes,” said Doug Pollard, Co-Chief Band of Choctaw Indians offer that capability and support customers in Executive Officer of Pollard Banknote. “The Under the agreement, IGT will provide growing their business like never before.” addition of the world’s leading lottery retail its PlayDigital™ sports betting solution, Stuart Weston has been appointed to Vice dispensing experts is another key component PlayShot, at Pearl River Resorts’ Golden President, Sportsbook Operations for SG Digital. in Pollard’s strategic focus on being the partner Moon Hotel & Casino and Silver Star Hotel Stuart brings with him two decades of industry of choice for the lottery industry. We welcome & Casino in Choctaw, MS., and at Bok Homa experience, most recently as Managing Director our new team members from Schafer and Casino in Sandersville, MS. By leveraging IGT for Superbet and previously as Sportsbook are confident their three decades of setting sports betting technology, Golden Moon Hotel Product Director at William Hill. Weston will the standard with innovative leadership and & Casino made gaming history last month lead the Sports Operations team to maximize award-winning products will continue to drive when it became the first non-Nevada tribal sports betting operations output and gear up for retail lottery excellence. This acquisition ticks all casino to open a sports book post-PASPA repeal. continued global growth in the sports betting of the important boxes for us, both strategically IGT technology and services will enable casino market. The Sportsbook Operations team’s capa- and financially.” patrons to place pre-match and in-play wagers bilities now span decades, industries and extensive “Schafer’s business will be extremely complimen- over-the-counter at the three Mississippi casinos. expertise to better serve our customers’ needs. tary to our existing portfolio of lottery products The casinos agreed to add IGT kiosks and other The move reflects Scientific Games’ deep such as loyalty solutions, sales force management essential sports betting peripherals to their commitment to the sports betting industry as and warehousing and distribution services offerings in the future. well as its Gibraltar office, where the team will currently offered by Pollard in addition to our core “IGT’s leading entry into the tribal gaming be based. instant-win scratch ticket operations. Continued sports betting space demonstrates how a wide innovation will be critical in expanding and variety of casino operators can benefit from growing lottery revenue through the use of our flexible, market-ready PlayShot sports efficient, eye-catching consumer and retailer betting solution, today,” said Enrico Drago, friendly dispensing solutions, and the Schafer IGT Senior Vice President PlayDigital. “With team will now be supported by the Pollard group IGT PlayDigital’s technology and expertise, of companies and resources to fuel their growth.” Pollard Banknote the Mississippi Band of Choctaw Indians intro- duced sports betting to players with confidence, The management team of Schafer will be acquires Schafer Systems knowing that PlayShot is already the trusted continuing in their roles after the transaction Pollard Banknote Limited has signed a defini- sports betting platform provider at more than 15 and will work closely with our lottery focused tive agreement, subject to closing conditions, U.S. casinos across multiple states.” to purchase substantially all of the operating team in Pollard to ensure a smooth transition assets and business of Schafer Systems, Inc., the and integration to continue supporting the leading global provider of lottery ticket dispens- lottery industry. ers and play stations. Schafer was founded in The total Acquisition purchase price is $23.5 1986 in Adair, Iowa and has built its business million U.S. dollars plus standard working largely on creating innovative products including capital adjustments, with 100% all cash con- lottery ticket dispensers and point of purchase sideration being funded from existing Pollard American Gaming Association displays for the lottery industry. As the foremost Banknote cash resources and availability under sent a letter to Senate Minority supplier of lottery ticket dispensers, Schafer has our existing senior credit facility. Schafer has a partnered with all 44 existing U.S. lotteries and long history of profitability and the Acquisition Leader Chuck Schumer over 50 lotteries in other countries during its is expected to be accretive to Pollard Banknote’s (D-NY) reinforcing AGA’s three decades in business. Based in western Iowa, net income. Closing conditions include standard priorities for successful Schafer employs approximately 50 full-time consents and approvals consistent with a employees and is the recognized leader in assisting transaction of this size and nature. legal sports betting markets The American Gaming Association letter lotteries to efficiently and effectively distribute John Pollard, Co-Chief Executive Officer of further reinforced AGA’s commitment to work their instant-win scratch tickets to consumers. Pollard Banknote concluded, “We are thrilled with Senate Minority Leader Chuck Schumer with the opportunity to join together with With a focus on solutions to increase sales at the (D-NY) and all stakeholders working to stamp the Schafer team and are confident that with retail location for the lottery industry, and on out the vast illegal market. “AGA has long the closing of this transaction Pollard will add the development of innovative and proprietary been a leading advocate for eliminating the another industry leading solution dedicated to products, Schafer is a leader and key partner to vast illegal sports betting market in the U.S., helping our lottery customers succeed. Assisting the lotteries for on-counter and wall mounted which was largely enabled by the Professional lotteries in maximizing their retail sales will also modular dispensers with promoters, in-counter and Amateur Sports Protection Act (PASPA),”
64 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 the letter stated. “We believe this can best be Szrek’s Trusted Draw “We have long viewed ourselves as a player-cen- achieved through law enforcement oversight and Solution and Electronic tric lottery,” said Charlie McIntyre, Executive robust state regulation. AGA firmly believes that Director of the New Hampshire Lottery. “Our additional federal engagement is not warranted Draw System Attested for focus in everything we do is how best to make at this time.” Nonrepudiation and Conclusive our products entertaining and accessible to our Fault and Fraud Detection customers by creating a strong and positive play IGT Delivers Online and Mobile experience. Launching iLottery is the critical Sports Betting Platform for Bulletproof, a GLI company, validated Szrek’s RNG next wave component in enhancing our players Szrek2Solutions Electronic Draw System as meeting FanDuel in New Jersey direct interaction with our games. We wanted or exceeding the best practices by providing to get it right and believe our choice of NeoPol- IGT PlayShot sports betting platform now conclusive auditability and proof of integrity. lard Interactive would best ensure a successful powers online and mobile sports betting rollout and early adoption of the online lottery in New Jersey via FanDuel Group’s consumer- experience. NPi’s domestic and international facing wager website, sportsbook.fanduel.com. experience in this space has demonstrated FanDuel is leveraging PlayShot’s built-in critical best practice technology and created content management system to deliver a an enhanced player experience in that online bespoke mobile and desktop user experience. space.” The system integration enables FanDuel to New Hampshire Lottery “We are thrilled to be working with the New create betting promotions and dynamic content Hampshire Lottery to deliver iLottery to its for retail, mobile and online all from a single successfully launches iLottery players,” said Liz Siver, General Manager, source. “We have long viewed ourselves as a player-cen- NeoPollard Interactive. “We are pleased to “Leveraging IGT’s PlayShot platform to tric lottery,” said Charlie McIntyre, Executive introduce iLottery strategies and products that power FanDuel’s online and mobile sports Director of the New Hampshire Lottery. “Our will strengthen the Lottery’s portfolio and wagering in New Jersey was the natural focus in everything we do is how best to make increase sales across all channels. With the extension of our technology partnership with our products entertaining and accessible to our launch of an iLottery platform, the robust inter- IGT,” said Niall Connell, General Manager customers by creating a strong and positive play active and mobile components of our solution & SVP Sportsbook, FanDuel Group. “We are experience. Launching iLottery is the critical will provide new insights into player preferences confident that IGT’s proven technology and next wave component in enhancing our players and behaviors, while our responsible gaming quick delivery will enable FanDuel to continue direct interaction with our games. We wanted initiatives will support the New Hampshire offering unparalleled sports betting entertain- to get it right and believe our choice of NeoPol- Lottery’s mission of providing secure and ment to our players with an intuitive and lard Interactive would best ensure a successful entertaining gaming products.” reliable user experience.” rollout and early adoption of the online lottery experience. NPi’s domestic and international “IGT’s online and mobile PlayShot platform experience in this space has demonstrated deployment with FanDuel Group in New Jer- critical best practice technology and created seyreinforces the omni-channel sports betting an enhanced player experience in that online expertise of our PlayDigital organization, and space.” continues the Company’s momentum in seizing and maximizing U.S. sports betting market Just launched recently, the New Hampshire opportunities,” said Enrico Drago, IGT Senior Lottery’s iLottery program leverages NPi’s Michigan Lottery Awards Vice President PlayDigital. “The integration of platforms and a full suite of NPi services IGT’s PlayShot platform into FanDuel’s online including Customer Engagement Marketing, NeoPollard Interactive and mobile sports betting site creates extraor- Player Support and NPi’s Games Studio which iLotteryContract Extension dinary user experiences for sports fans in New will give players throughout the state access to a Under this agreement, Pollard Banknote Jersey and builds on the momentum that full suite of engaging, interactive scratch games, and NeoGames will continue to serve as the we created with FanDuel at Meadowlands as well as draw games such as Powerball® and providers of the Lottery’s iLottery platform, Racetrack.” Mega Millions. The launch of the iLottery games, and managed services through program provides the Lottery with exciting new IGT integrated PlayShot into GAN’s player their joint venture, NeoPollard Interactive, opportunities to enhance its product offering, through July 2022. account management system utilized increase player engagement, and maximize by FanDuel to complete the solution, and revenue for public education in the state. Pollard Banknote and NeoGames first teamed deployed a responsive HTML site for desktop The New Hampshire Lottery will leverage up with the Michigan Lottery to launch and mobile designed by FanDuel. PlayShot’s NPi’s turnkey iLottery 360° Solution to enable their turnkey iLottery 360° Solution in 2014, end-to-end sports betting management tools players to conveniently access and play their providing the platform, managed services, and and its modular HTML 5 framework enable favorite lottery games through web and mobile games required to deliver a comprehensive operators to develop promotions, bet structures channels. The New Hampshire Lottery’s interactive solution to players throughout and offers that are unique to each channel, iLottery solution will also feature sophisticated the state. Since then, NPi and the Lottery while delivering unique user experiences that CRM capabilities that support the cross- have worked collaboratively to establish the meet individual operator requirements. promotion of traditional lottery products with top-performing iLottery program in North interactive games, enhancing and strengthening America. the Lottery’s retailer network.
PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 65 66 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018 NOVEMBER/DECEMBER 2018 • PUBLIC GAMING INTERNATIONAL 67 68 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2018