No. 40 | Spring 2014
The timeless appeal of scratch ticketsSince their introduction 40 years ago, scratch tickets have provided lotteries around the world with a predictable, manageable product to help drive sales growth. Players respond to game design, prize payouts, and retail display, and have proven more than willing to move up the price point ladder as long as the value proposition is there. Licensed brands, experiential prizes, and interactive components provide even more value for players. And in one of the latest developments, a multi-country collaboration in Europe is setting the stage for further innovation.
SSSStttttep uupp ttoo theee ddrream
Instant gratificationThis issue includes a feature on how the instant
games category has taken off in many parts of the
world, overtaking terminal games like lotto in terms
of growth rates and in some cases also in terms of
overall sales. The trend was framed by Terri Markle
at the EL/WLA marketing seminar in London,
England, earlier this year, when she concluded that
instant ticket sales had grown significantly over the
past decade, owing in part to the launch of premium
priced tickets. This is a reminder that innovation is
for everyone. However, as established by Dan Thwaites at the same London
seminar in his presentation, “Innovate or Die”, it is not the same innovation
for everyone.
In a world where the emphasis is increasingly put on Internet and mobile plat-
forms, it is refreshing to see that licensed lottery operators are also investing
heavily in their instant portfolios – in some cases introducing dozens of new
products and trying out different price points each month. As a number of
lotteries have demonstrated, innovation must be mastered across all game cat-
egories and sales channels, with due respect paid to the trust and integrity that
underwrite the success of their operations over the long term.
African lottery operators talked a lot about trust and integrity when they
met in Senegal in March for the African Lottery Association’s 16th Congress,
themed on security and responsible gaming. It was an ideal opportunity
for us to promote the WLA Responsible Gaming Framework and the WLA
Security Control Standard to our African colleagues. We thank the newly
elected president of ALA, Amadou Samba Kane, and his staff at the host lot-
tery LONASE, for their hospitality and professionalism. We welcome Younès
El Mechrafi of MDJS in Morocco, who was elected Secretary General of the
ALA and will represent Africa on the WLA Executive Committee, and we
thank the outgoing representative Fofana Issiaka of Côte d’Ivoire for his
loyal service.
I should also mention the WLA’s financial situation. The net results for 2013
come to around CHF 200,000 against a budgeted deficit of CHF 171,000. The
positive net outcome is due to higher income from the WLA contributor pro-
gram and the WLA seminars, while our overall expenses remained on target.
So we can look forward with confidence to our next key milestone — the 2014
World Lottery Summit in Rome in the first week of November — and I thank
our host lottery Lottomatica for their unflagging support.
As we go to press, we are making the final arrangements for what promises to
be a highly productive business program and a fantastic networking oppor-
tunity. WLS 2014 will be a great chance to learn more about the latest trends
and innovations, but also to keep in mind the value of patience, perseverance
and planning for the long term. Just remember — Rome wasn’t built in a day!
I hope to see you there.
WLA magazine | No. 40 | Spring 2014 3
Jean Jorgensen, WLA Executive Director
Contents4–5 Interview with the President
6–9 Association business Selected news from the WLA, its members,
and the regional associations.
10–12 The World Lottery Summit 2014
With preparations for WLS 2014 well underway, we are pleased to present the cast of renowned
keynote speakers that will be on hand for the Rome convention.
14–24 The lure of scratch ticketsEver popular with players, scratch tickets are a perennial success and a sure bet for lotteries.
25–27 The University of Iceland Lottery
Serving higher education in Iceland for more than eight decades, the University of Iceland
Lottery is moving progressively into the future, innovating for a new generation of players.
28–31 Responsible gamingFor the second time running, BCLC’s New
Horizons in Responsible Gambling Conference brought together a host of international
experts on responsible gaming.
32–34 Sportradar Within five short years Sportradar’s fraud
detection system has identified over 1,250 suspicious football matches worldwide,
proving its effective in a number of high-profile cases.
35–37 ONCE wins royal recognitionThe Spanish Organization for the Blind (ONCE),
now in its 75th year of existence, received the prestigious Prince of Asturias Award for its
exemplary work in support of the rights of the disabled in Spain.
38–50 Corporate news News from members of the WLA Contributors Program and other WLA Associate Members.
51 The learning curve News from the WLA training and education
program.
WLA magazine | No. 40 | Spring 20144
INTERVIEW WITHTHE PRESIDENTINTERVIEW WITH THE PRESIDENT
Celebrating diversity:
Lottery leaders prepare to converge on Rome
The slogan for WLS 2014 is “All roads lead to
Rome”. In the context of the lottery industry,
what does that mean to you?
It’s an expression that is both ancient and
contemporary. Literally, it’s a reference to
the famous Roman roads that were con-
structed in a star shape radiating out
from the golden milestone (miliarium
aureum) erected by the Emperor Caesar
Augustus at the center of a monument in
the central Forum of ancient Rome.
Today, the popular expression is perfect-
ly suited to the WLA’s mission. Just as all
the ancient roads converged on the mili-
arium aureum, staff from all our member
organizations are converging on the
same place, pulling in the same direction
to offer attractive lottery games which re-
spect players and serve the interests of
the wider community.
Why was Rome selected as the host city for
WLS 2014? What special attributes does the
Eternal City offer delegates?
Rome is one of the most attractive desti-
nations in the world. The historic capital
of the modern world is the ideal setting
for discussing our challenges, sharing our
experiences, and gaining inspiration for
new ideas. This is why we chose Rome as
the lottery capital for 2014. The Executive
Committee is looking to bring together
visionary speakers and delegates to inject
fresh energy into our lottery community
and make WLS 2014 a truly unforgettable
event.
The host for WLS 2014 is Italy’s Lottomatica,
the world’s largest lottery operator. What par-
ticular strengths does Lottomatica bring to
the table?
Lottomatica and the WLA are combining
their respective strengths to organize WLS
2014. The venue for the prestigious event
(November 2-5) is the Rome Cavalieri hotel,
with its Mediterranean gardens, outstand-
ing views over the city, and of course its
world-class conference center. Lottomatica’s
extensive experience, and its outstand ing
background of success and professional-
ism, are valuable assets for WLS 2014, and
I sincerely thank CEO, Marco Sala and his
organization for their energy and engage-
ment with our activities.
These biennial World Lottery Summits would
not be possible without the generous support
of the Contributors. How have they helped
with WLS 2014?
All our WLA Platinum and Gold Con tri-
butors provide substantial support for
WLA activities, and their sponsorship
also makes it possible to organize major
events such as WLS 2014. They also en-
sure continuity in the relations between
the supplier industry and member lotter-
ies, and their major presence at the trade
show in Rome will make the event even
more dynamic and vibrant. They will also
be taking part in the business program,
notably in the Contributors’ Forum,
where some of their senior managers will
be discussing the key issues for the sector
today. The Contributors will also be help-
ing to organize special evening functions
and other hospitality events, helping to
make WLS 2014 as beneficial as possible
to all attending.
What can you tell us about the business pro-
gram for WLS 2014? Are there any keynote
speakers or special sessions that you would
like to highlight?
We have an attractive line-up of sessions
organized to the highest professional stan-
dards but on a manageable scale. Key-
note speakers include Luca Cordero di
Montezemolo, Chairman of Ferrari, and
Bertrand Piccard, Chairman and Pilot of
Solar Impulse. Dr. Jane McGonigal,
world-renowned author and designer of
alternate reality games, will also be join-
ing us to speak about the intrinsic values
of gaming and its importance in our soci-
eties. The summit will also feature a vari-
ety of break-out sessions on different
themes such as game development, re-
sponsible gaming principles, and sports
betting integrity. Many other subjects of
major importance for lotteries, such as
making the most of social media, will be
addressed in detail. The focus will be on
our strategic vision for the future and the
importance of operating games that are
ever more attractive and socially respon-
sible.
What about the social program and network-
ing opportunities? Are there any events or
tours during WLS 2014 that you would like to
highlight?
WLA staff are working around the clock with our host lottery, Lottomatica, to prepare the groundwork for the key fixture in this year’s lottery calendar – the World Lottery Summit 2014. We asked WLA President Jean-Luc Moner-Banet why he thinks Rome will be the ideal setting for lottery professionals all over the world to compare notes, work together, and draw strength from the diversity of the global gaming community.
WLA magazine | No. 40 | Spring 2014 5
INTERVIEW WITHTHE PRESIDENTINTERVIEW WITH THE PRESIDENT
The summit will be a perfect place for net-
working. An engaging social program has
been organized to help provide the right
setting for networking with peers and col-
leagues from all over the world. The festivi-
ties will begin with Lottomatica’s generous
hosting of the opening dinner at the elegant
Villa Miani, and will end with the closing
dinner and party at Rome’s Cinecittà
Studios. With a range of other optional ac-
tivities available, such as an imperial tour of
Rome, a networking day consisting of an
Italian cooking experience at Eataly, and of
course the various events sponsored by the
Contributors, delegates can be sure to have
a full schedule for the entire four days of the
convention. They will also have the chance
to discover one of the most beautiful cities
in the world. Rome is the world’s biggest
open-air museum, with an incalculable
number of cultural and artistic attrac-
tions, such as the Capitoline Museums,
the Vatican, the Borghese Gallery, the
Coliseum, and many more.
Can you give us any insights about the WLS
2014 trade show? Can we expect to see any
major new product announcements from the
WLA’s associate members?
The trade show will cover a range of dis-
ciplines and I’m sure there will be plenty
of surprises in store for visitors! New
technologies will be everywhere. The
modern exhibition space will accommo-
date around fifty suppliers, who will have
a chance to present their most innovative
products and services in fun and creative
ways. We are expecting more than 1,000
people to attend WLS 2014, so everyone
interested in coming should register as
soon as possible. For information on how
to register see the official website at www.
wls2014.com.
The last two World Lottery Summits –
Brisbane in 2010 and Montreal in 2012 –
were both resounding successes. What steps
are you taking to ensure WLS 2014 will be
similarly productive?
The program for WLS 2014 has taken
its lead from earlier summits. WLS 2014
aims to foster active collaboration be-
tween the various regional associations
and to provide terms of reference for the
whole of the lottery and sports betting
sector. One priority has been to develop
the business program to make it as rel-
evant as possible to the realities on the
ground in the different regions, each of
which has its own history and its own
economic, legal and political context.
Another key goal of the summit is to en-
courage collaboration between member
lotteries so they can share technologies
and infrastructures, particularly for inter-
active gaming, which is where the future
of our sector lies. Exchanging ideas and
sharing experiences will always be at the
heart of everything the WLA does, and
I am already looking forward to the pas-
sionate discussions that will be a feature
of this summit.
Looking ahead, is there anything you can tell
us about WLS 2016?
Preparations for WLS 2016 are already
underway and are progressing well.
The host lottery will be announced at
WLS 2014 – which is one more reason
to attend this year’s Summit in Rome!
“WLS 2014 aims to foster active collaboration
between the various regional asso ciations and to provide
terms of reference for the whole of the lottery and
sports betting sector.”– Jean-Luc Moner-Banet –
ASSOCIATIONBUSINESSASSOCIATION BUSINESS
WLA magazine | No. 40 | Spring 20146
Inmaculada García Martinez of Spain and Luis Gama of Uruguay sat on the WLA Executive Committee for the first time at its December 2013 meeting in Versailles, France. Since then, Younès El Mechrafi of Morocco has also joined the Committee as the representative of the African Lottery Association. The WLA looks forward to working with the new members and wishes them all the best in their future endeavors as part of the WLA Executive Committee.
Younès El MechrafiYounès El Mechrafi was born in Rabat in
1965 and studied computer science and
business administration in Lille, France, be-
fore working as a researcher with the French
national research center CNRS. On return-
ing to Morocco, he headed SOMAV, an
agri-business, before founding a technol-
ogy company that later provided computer
services to government clients including the
Ministry of Finance and the armed forces. In
2003, Mr. El Mechrafi was appointed special
advisor on new technologies to the Minister
of Justice and led an award-winning e-gov-
ernment program for the Moroccan justice
department. In 2006, he returned to the
private sector as Chief Executive of Archos
Conseil, a computer services organization
based in Casablanca and part of the ONA
group, then Morocco’s largest private con-
glomerate. In November 2009, he was ap-
pointed Managing Director of La Marocaine
des Jeux et des Sports (MDJS), a state lot-
tery that finances sport in Morocco. At its
General Assembly in Dakar in March 2014,
the African Lottery Association (ALA) elect-
ed Younès El Mechrafi Secretary General
of the Association. Following this appoint-
ment, Mr. El Mechrafi assumes the posi-
tion of ALA representative on the WLA
Executive Committee.
New faces on the WLA Executive Committee
Inmaculada García MartinezInmaculada García Martinez was appoint-
ed president of the Spanish state lottery,
Sociedad Estatal Loterías y Apuestas del
Estado (SELAE), after José Miguel Martínez
Martínez stepped down last year.
Ms. García has a background in econom-
ics and fiscal law. She graduated from the
Autonomous University of Madrid with a
bachelor’s degree in economic science and is
a member of the Superior Corps of State Tax
Inspectors in Spain.
Before joining SELAE, Ms. García served
as Minister of Finance of the autonomous
region of Murcia. At the same time, she
held a post as professor at the University of
Murcia where she taught tax law and cor-
porate tax.
In 2011, after the town of Lorca suffered
an earthquake, Ms. García was appoint-
ed by the Spanish government to serve
as Commissioner of Reconstruction and
Economic Revival for Lorca.
In her extensive career, she has also served
as an entrepreneurial counselor and as an
economic advisor to the administration of
Murcia.
Luis GamaLuis Gama has an extensive background
in public administration, having worked
for the Uruguayan public service since
1979. From 2006 and 2008 he was advisor
to the State Sanitation Department, and in
2008 he served as a member of a humani-
tarian mission that traveled to Peru and
Venezuela.
Mr. Gama was introduced to the world of
lotteries and gaming in October 2008 as ad-
visor to the general director of State casinos
under the aegis of the Uruguayan Ministry
of Economy and Finance. He served there
as director ad interim in the absence of the
incumbent director until his appointment
as commercial manager for the same direc-
torate. Mr. Gama continued in this capacity
until his appointment to his current position
of Director Nacional de Loterias y Quinielas.
Mr. Gama was appointed to this role by the
president of the republic of Uruguay, José
Mujica, in February 2012.
At its 14th Congress in October 2013 in
Panama, CIBELAE appointed a new board
of directors with Luis Gama as president.
Following this appointment, Mr. Gama as-
sumes the position of CIBELAE representa-
tive on the WLA Executive Committee.
ASSOCIATIONBUSINESSASSOCIATION BUSINESS
WLA magazine | No. 40 | Spring 2014 7
Dr. Nestor Cotignola (rightmost), Executive Director of CIBELAE’s new Latin American branch office, celebrating the office opening with prominent members of ALEA.
Pro-Lite Inc.California-based Pro-Lite Inc. introduced
LED technology to the US market in 1981,
and has since won numerous notable in-
dustry design patents. They are recognized
as a worldwide leader in LED illuminated
signage and electronic scrolling messaging
products, due to their technological inno-
vation, continual design advances, and high-
quality manu facturing.
Pro-Lite’s widespread success has been based
on a formula of using the best components
from the world’s top suppliers, and design-
ing and manufacturing their products with-
in select facilities in Taiwan, China, and the
USA. This allows them to deliver optimal
pro ducts at the most competitive price
point. This formula has guaranteed Pro-Lite
success for more than 32 years.
Pro-Lite serves more than a million custom-
ers and users worldwide in industries such as
airlines, big box retail, food and beverages,
petroleum, Point of Purchase, transporta-
tion, and traffic control. They have also
worked extensively with financial institu-
tions, schools and government agencies, such
as the US Air Force, the US Navy, and the US
Postal Service. Pro-Lite provides their prod-
ucts and services to more than 30 lotteries in
North America and the Caribbean.
For more information visit Pro-Lite’s website
at www.pro-litelottery.com
As announced at the 14th CIBELAE Congress
in October 2013, CIBELAE has opened a
branch office in Buenos Aires, Argentina. The
official opening of the new CIBELAE branch
office was celebrated on Tuesday, December
17, 2013. The new facility is located in the of-
fices of Asociación de Loterías, Quinielas y
Casinos Estatales de Argentina (ALEA).
Dr. Nestor Cotignola, Vice President of
Lotería de la Provincia de Buenos Aires and
Executive Director of ALEA, is now serving
as Executive Director of the new CIBELAE
Latin American branch office. On behalf of
Mr. Jorge Rodriguez, President of ALEA, Dr.
Cotignola officially welcomed the attendees
of the opening. Addressing the celebrants,
Dr. Cotignola declared the inauguration of
the new office a historic moment. He credit-
ed the initiative for a CIBELAE subsidiary in
Latin America to the efforts of former ALEA
President, Roberto Lopez. Dr. Cotignola al-
so used the occasion to pay homage to Ms.
Norma Gallardo, a colleague and former
Director General of Argentina’s Lotería La
Neuquina, who passed away in July 2013.
Present at the opening were Dr. Felipe Cor-
sun sky, Lotería de Provincia de Buenos
Aires; Hugo Rodríguez, Lotería de Santa Fe;
Jorge Payeras, Instituto Seguridad So cial de
La Pampa; Julio Ledesma, IAFAS de En tre
Ríos; Dr. María Fer reras, Lotería Nacional
Sociedad del Estado; Rodrigo Cigliutti, Lo-
tería de Tierra del Fuego; and Mario Trucco,
En rique Ucedo, Fernanda Belmonte, and
Carlos Stheling from ALEA.
Together with Dr. Cotignola at the CIBELAE
branch office, Ms. Carolina Cabado will be
his Executive Assistant.
CIBELAE opens a second office in Latin America
New WLA Members and Associate MembersAt its meeting in Versailles, France this past December, the WLA Executive Committee provisionally accepted one new lottery member, La Lotería del Táchira of Venezuela, and accepted one new associate member, Pro-Lite Inc. of the USA.
La Lotería del TáchiraLa Lotería del Táchira was established on
February 26, 1926 in the western Venezuelan
state of Táchira. Lo cated in Táchira’s capital,
San Cris tó bal, La Lotería del Táchira offers
conventional draw-based games, lotto, and
keno throughout Venezuela.
Operating under the aus-
pices of the National
Lottery Com mission
of Venezuela, La Lo te-
ría del Tá chira is seen
as one of the most im-
portant institutions of so-
cial welfare in the country. The revenue of La
Lotería del Táchira goes in large part to sup-
port public health, environmental protec-
tion, sports, education, and culture in
Venezuela.
The membership of La Lotería del Táchira is
pending ratification by the WLA General
Meeting on Wednesday, November 5, 2014
in Rome, Italy.
ASSOCIATIONBUSINESSASSOCIATION BUSINESS
WLA magazine | No. 40 | Spring 20148
“Security and transparency are key to the
future of African lotteries,” said Amadou
Samba Kane, Managing Director of the
host lottery, LONASE, during the official
Congress opening ceremony. “With the ad-
vent of new technologies, lotteries have an
ever more crucial role to play in regulat-
ing gaming activity and helping our citi-
zens to thrive and flourish,” he continued.
“Lotteries sell hope,” said Mr. Kane. “So it’s
critical for the players who place their hope
in us to know that the games they play are
organized with all the necessary security
in place.”
Sentiments echoed by Senegal’s Budget
Minister, Mouhamadou Makhtar Cissé,
who also stressed the role of the ALA in
promoting African integration. “Lottery
companies have already taken the lead
in this respect through their multi-ju-
risdictional initiatives,” he said, noting
their continuing efforts to work together
across borders and cultures to implement
the ALA’s action plan. He welcomed the
Association’s work as an illustration of ef-
fective South-South cooperation and rec-
ognized the value of sharing experiences
for lottery organizations throughout the
continent.
ALA 2014 Africa sets its sights on certification
Delegates and speakers from all over the continent converged on Dakar in March for the 16th Congress of Africa’s regional lottery association.
Themed on security and corporate social responsibility, the 16th Congress of the African Lottery Association in Dakar in March was an important milestone for Africa’s regional lottery association. The three-day event in the Senegalese capital was an opportunity for lottery leaders from all over Africa — and further afield — to share their vision for the future and confirm the importance of retaining player confidence by upholding universally recognized standards.
ASSOCIATIONBUSINESSASSOCIATION BUSINESS
WLA magazine | No. 40 | Spring 2014 9
Outgoing ALA president Nestor Tchissambo
Makosso from Ivory Coast’s national lottery
(LONACI) said he was confident that the
Association was successfully expanding its
horizons and attracting increasing interest
from lotteries outside of French-speaking
Africa. At the 2014 Congress, South Africa
contributed to the business program for the
first time in the Association’s history, and
licensed lotteries from Liberia and Nigeria
sent representatives to Dakar to attend the
event.
Also speaking at the opening ceremony,
WLA President Jean-Luc Moner-Banet not-
ed that the choice of security and corporate
social responsibility as the central theme of
the Congress was a clear endorsement by
the African regional association of a style of
governance that places compliance with rec-
ognized standards at the heart of the lottery
community’s core values.
World-class business programThe business program for the Congress in-
cluded a series of presentations about lot-
tery security management, moderated by
Thierry Pujol, Chair of the WLA’s Security
and Risk Management Committee. These
included an overview of the WLA’s Security
Control Standards, which are now being up-
dated to reflect the latest changes in the ISO
27001 information security management
system standard. Security specialists from
La Marocaine des Jeux et des Sports (MDJS)
and Gidani, operator of the South African
lottery, offered delegates practical advice
about organizing a certification program
and the steps involved in obtaining certifica-
tion to the universally recognized WLA se-
curity management standards.
Corporate social responsibility was the fo-
cus of the second day of the business pro-
gram, with presenters and moderators from
Veikkaus (Finland) and Atlantic Lottery
Corporation (Canada). Again, the focus was
on providing practical advice about the steps
that African lotteries can take to achieve
responsible gaming certification, with La
Marocaine des Jeux et des Sports (MDJS) as a
use case example. MDJS is currently the only
African lottery organization accredited to the
WLA Responsible Gaming Framework. The
practical sessions continued with a presen-
tation by Amadou Samba Kane, Managing
Director of the Senegalese national lottery
(LONASE), about LONASE’s experience in
achieving ISO 9001 certification.
The Congress included plenty of network-
ing opportunities, including an excursion
to historic Gorée Island in Dakar harbor, as
well as various events hosted by members of
the supplier community. A trade show was
also organized at the Congress venue, the
prestigious King Fahd Palace hotel and con-
ference center.
Making a difference in DakarDakar has always played a prominent role
in the life of African lotteries, and the
16th Congress of the regional association
was no exception to the rule. During the
General Assembly at the end of the Dakar
Congress, member lotteries recognized the
need to improve governance and intro-
duce new organizational processes to add
to the ALA’s credibility both within Africa
and at the international level. The election
of Amadou Samba Kane as President and
Younès El Mechrafi as Secretary General of
the Association testify to this new impetus
and to the ALA’s determination to make a
difference for member lotteries and the play-
ing public throughout the continent.
At the closing ceremony, the newly elected
president thanked members for their confi-
dence and said he was well aware of the scale
of the task ahead of him. He said his key
objectives would be to work with the ALA
executive committee to expand member-
ship to include all of Africa’s state-licensed
lotteries, and to encourage all members to
seek certification. “Today we can move for-
ward with a clear conscience, confident that
our member lotteries are fully aware of the
need for a new style of management and of
the critical importance of retaining the con-
fidence of their customers,” said Amadou
Samba Kane. “This is why they have chosen
the path of certification — and they can rest
assured that both the ALA and the WLA are
ready and willing to help them in achieving
that goal.”
Left to right: Senegal’s Budget Minister, Mouhamadou Makhtar Cissé; outgoing ALA president Nestor Tchissambo Makosso (LONACI); and WLA President Jean-Luc Moner-Banet.
The African Association of State Lotteries (AALE) was created in Dakar in 1981 to support the exchange of ideas and experience among state- licensed lotteries. A new organization, the African Lottery Association, was formed in 2013 to build on this 30-year legacy of cooperation and knowledge-sharing and help to broaden the hori-zons of the African lottery community in the 21st century. The regional orga-nization currently has nine members: Benin, Burkina Faso, Congo Brazzaville, Democratic Republic of Congo, Côte d’Ivoire, Mali, Niger, Senegal, and Togo.
At the General Assembly in Dakar in March 2014, Amadou Samba Kane, Managing Director of the Senegalese National Lottery (LONASE), was elected President of the ALA for a two-year term. The Association also elected Younès El Mechrafi, Managing Director of La Marocaine des Jeux et des Sports (MDJS) as ALA Secretary General. The headquarters of the Association will now be in Casablanca, Morocco.
About the ALA
ASSOCIATIONBUSINESSASSOCIATION BUSINESS
WLA magazine | No. 40 | Spring 201410
Bertrand PiccardAdventurer, initiator, chairman, and pilot of Solar Impulse
Born into an illustrious Swiss dynasty of ex-
plorers and scientists – a dynasty whose
members have both plumbed the depths of
the oceans and soared to the edges of space
– Bertrand Piccard seems predestined to
perpetuate one of the greatest family adven-
tures of the 20th century. Psychiatrist, aero-
naut, and lecturer, chairman of the Winds of
Hope humanitarian foundation and good-
will ambassador for the United Nations, he
is passionate about today’s great human
challenges.
A pioneer of ultralight flying in the 1970s,
an airplane and glider pilot, Bertrand
Piccard completed the first ever non-stop
balloon flight circumnavigation of the
globe in 1999. In a flight that was the lon-
gest in terms of duration and distance in
the history of aviation, Bertrand Piccard
travelled 45,755 km in just under 20 days.
Among other awards, he received the
Harmon Trophy for an outstanding feat of
aeronautics in recognition of this accom-
plishment.
In November 2003, Bertrand Piccard an-
nounced a project in cooperation with the
École Polytechnique Fédérale de Lausanne
for a solar-powered, long-range aircraft
named Solar Impulse. After developing the
project’s philosophy, outlining its symbolic
and political reach, and convincing financial
backers, construction of the plane began in
2007. Short test flights began in 2008, and by
2009, Bertrand Piccard had assembled a
multi-disciplinary team of 50 specialists
from six countries, assisted by about 100
outside advisers, to work on Solar Impulse.
In 2012, the aircraft made its first interconti-
nental flight from Morocco to Switzerland.
Now, Bertrand Piccard, together with his
business partner André Borschberg, is get-
ting ready for the grandest challenge of all:
to attempt the first round-the-world solar-
powered flight in 2015.
Initiator, chairman, and pilot of Solar
Impulse, Bertrand Piccard seeks to link sci-
ence with adventure, technological innova-
tion, entrepreneurial expertise, and passion,
in a profound demonstration of humanity’s
pioneering spirit, long-term vision, and in-
nate desire to explore new horizons. At WLS
2014, Bertrand Piccard will speak on the
theme of adventure as an ‘extra-ordinary’
deed, something that pushes us outside our
normal way of thinking and behaving, and
into a state where we gather our inner re-
sources and follow our personal path of
growth to the destiny that awaits us.
Luca Cordero di MontezemoloChairman of Ferrari S.p.A.
The name Ferrari evokes emotion like few
brands, even among non-automobile enthu-
siasts. In recent years, one name has been
synonymous with the luxury sports cars
brand: that of Ferrari’s chairman, Luca
Cordero di Montezemolo.
Luca Cordero di Montezemolo has been
chairman of Ferrari S.p.A. since November
1991. Born in Bologna (Italy), he graduated
in law from the University of Rome in 1971,
later specializing in international commer-
cial law at Columbia University in New
York. He joined Ferrari in 1973 as assistant
to Enzo Ferrari, and was the company’s
sporting director from 1974 to 1975. His in-
volvement with the team continued through
to 1977, during which time Ferrari won two
Formula 1 Drivers’ World Championships
with Niki Lauda (1975 and 1977).
Subsequently, he was appointed director of
external relations for the Fiat Group.
The WLS 2014 business program:
Keynote speakersWLS 2014 is fast approaching. One of the highlights of any WLA biennial convention is its business program, and one of the high-lights of any business program is its list of plenary speakers. Here, we introduce the plenary speakers at WLS 2014, giving a brief biography of each speaker, along with a taste of the intended topic of their keynote address.
ASSOCIATIONBUSINESSASSOCIATION BUSINESS
WLA magazine | No. 40 | Spring 2014 11
In 1981, Mr. Montezemolo took up the post
of CEO at Itedi S.p.A., the Fiat Group’s pub-
lishing division, whose titles include La
Stampa, the Italian newspaper. In 1984, he
took over at the helm of Cinzano Inter na-
tional S.p.A. and also organized the Azzurra
challenge, Italy’s first foray into the America’s
Cup. From 1985 to 1990 he devoted himself
to football as general director of the organiz-
ing committee of Italia ’90, the taskforce
charged with organizing Italy’s hosting of
the 1990 FIFA World Cup finals. At the end
of the 1990 FIFA World Cup, Mr. Monte-
zemolo took over as CEO of RCS Video, be-
fore making the move back to Ferrari in
November 1991.
Subsequent to his appointment as chairman of
Ferrari in 1991, Mr. Montezemolo has held a
number of other distinguished positions.
Between 1997 and March 2005, he was also
chairman of Maserati S.p.A. From 2001 to
2004, he chaired the Italian Federation of
Newspaper Publishers (FIEG). Between 2004
and 2008, Mr. Montezemolo also held the post
of president of Confindustria, the Italian em-
ployers’ federation. From 2004 to 2010, he was
chairman of the Fiat Group. Since July 2009,
he has been chairman of Telethon, an Italian
foundation that raises funds for research into
muscular dystrophy. In 2010, he founded
Future Italy, a think-tank promoting civil and
political debate on the future of Italy. A
Cavaliere del Lavoro and a Commandeur de
la Légion d’Honneur, Mr. Montezemolo also
sits on the boards of directors of several other
important Italian and foreign organizations.
Mr. Montezemolo intends to speak on the
twin topics of branding and marketing at
WLS 2014.
Erin LyonExecutive Director, CSR Asia
Erin Lyon is an executive director of CSR
Asia, a leading provider of advisory, research,
and training services on sustainable business
practices in Asia. A lawyer by training, Erin
Lyon has worked for over seven years in Asia,
advising a wide range of clients on Corporate
Social Responsibility (CSR).
A qualified solicitor in England and Wales,
Erin Lyon trained with and worked for
Freshfields Bruckhaus Deringer, the interna-
tional law firm. Over the course of her career,
she has advised a wide variety of clients, in-
cluding Shell, HP, Dell, DHL, Bursa Malaysia
(the Malaysia stock exchange), Asia Pacific
Breweries, CDL, and Oxfam, on projects rang-
ing from CSR disclosure, stakeholder enga-
gement, and commu nity investment, through
to ISO 26000 and sustain able supply chains.
With a strong in terest in the deve lop ment of
CSR in Asia, Ms. Lyon is working with orga-
nizations to assess the changing regulations
and voluntary agreements that are develop-
ing in Asia, and the impact these have on
operations. She also focuses on the develop-
ment of CSR disclosure in Asia.
As well as advising companies and other orga-
nizations, Erin Lyon has been an adjunct at the
Singapore Management Uni versity School of
Law, lecturing in ethics and social responsibil-
ity. In addition, she has taught corporate gov-
ernance at SAICSA, the Singa pore Association
of the Institute of Chartered Secretaries and
Administrators. Ms. Lyon has also been an
elected member of the Stakeholder Council of
the Global Reporting Initiative, a leading orga-
nization in the field of sustainability.
Ms. Lyon was a founder and shareholder in
Responsible Research, a boutique Environ-
ment, Social and Governance (ESG) analysis
firm, sold in 2012 to Sustainalytics. Her key-
note at WLS 2014, which is titled “The devel-
opment of Corporate Social Responsibility in
Asia over the last decade – the good, the bad,
and the ugly”, will examine a decade of re-
sponsible business in Asia. After surveying
what has happened from 2004 to 2014, Ms.
Lyon will look to the future, positing the pro-
vocative question: are we are moving from a
period of Corporate Social Responsibility
into one of Inclusive Business?
Caroline de FontenayGoogle, Head of Brand Activation for France, Italy, and Spain
Caroline de Fontenay provides digital media
recommendations about branding to large
advertisers in France, Italy, and Spain. She
Advertisement
ASSOCIATIONBUSINESSASSOCIATION BUSINESS
WLA magazine | No. 40 | Spring 201412
has worked in media and marketing for
about 20 years, including 10 years in total
spent in the lottery and gaming industries.
She has been with Google since 2012, man-
aging a team of YouTube specialists dedicat-
ed to helping large advertisers better build
their brands on YouTube and social media.
She began her career in marketing at Nestlé
France in 1995, learning to develop and launch
new products. After joining La Française des
Jeux in 2001, she helped realize the Euro-
Millions trans-national lottery in cooperation
with the UK National Lottery and Spain’s
Sociedad Estatal Loterías y Apuestas del
Estado (SELAE). In 2008, she joined Eurosport
& Grou pe TF1 as director of marketing, the
first employee of a newly created startup in on-
line betting and gaming. There, she oversaw
the launch of the company’s platform in the
UK (June 2009, nine months from inception)
and France (in June 2010, in time for the 2010
FIFA World Cup). She joined Google in 2012
to lead a team of digital branding specialists,
with a focus on YouTube and social media
platforms in France, Italy, and Spain.
Thanks to her experience in the lottery indus-
try as well as her expertise in digital advertis-
ing, Ms. De Fontenay is uniquely placed to
assist lotteries in better building their brands
on YouTube. The theme of her talk at WLS
2014 will be Google innovations, and how
you can better build your brand on YouTube.
Giovanni MalagòChairman of the Italian National Olympic Committee
Giovanni Malagò is an entrepreneur, sports
manager, and former futsal (5-a-side foot-
ball) player. Since early 2013, he has been
president of CONI, the Italian National
Olympic Committee.
An avid player of futsal from his youth,
Giovanni Malagò won three Italian futsal
championships with Rome RCB and four
Italian cups. A member of the Italian nation-
al team that competed in the futsal World
Championships in Brazil in 1986, he was in-
ducted into the Canottieri Futsal Cup hall of
fame in 2007.
After graduating from university in eco-
nomics and commerce, he moved into busi-
ness and sports management. In his career
as an entrepreneur, Giovanni Malagò has
been a member of the board of directors of
several important companies and organiza-
tions, including UniCredit Banca di Roma.
Since 2007 he has been an advisor, for Italy,
to HSBC, the multi-national banking and fi-
nancial services company. In 2009, he be-
came a member of the Committee of Experts
Made in Italy – Ministry of Economic
Development. His current business roles in-
clude positions as CEO of Sa.Mo.Car S.p.A.,
the Italian luxury car dealership, and CEO of
Samofin S.p.A.
In his capacity as sports manager, Mr.
Malagò has been deeply connected with
the sports movement. In 1997, he became
president of the Circolo Canottieri Aniene
(the Aniene Rowing Club), one of the most
important multi-sport clubs in Italy. He
was chairman of the organizing committee
of the 13th FINA World Championships
Rome 2009, and a member of the organiz-
ing committee of the World Volleyball
Championship 2010. Elected as a member
of the executive committee of CONI in
2000, he was awarded the “Stella d’Oro” by
CONI in 2002 for his services to sport in
Italy. He became president of CONI on
February 9, 2013. Mr. Malagò intends to
address a range of sports related topics in
his plenary session, including sports bet-
ting and the integrity of sport.
Jane McGonigalGame designer and author of Reality is Broken
Jane McGonigal, Ph.D., is a world-renowned
designer of alternate reality games – where
real-life activities are reframed as games to
improve real lives and solve real problems.
She is the New York Times bestselling au-
thor of Reality is Broken: Why Games Make
Us Better and How They Can Change the
World – and is the inventor and co-founder
of SuperBetter, a game that has helped more
than 200,000 players tackle real-life health
challenges such as depression, anxiety,
chronic pain, and traumatic brain injury.
Jane McGonigal has created and deployed
award-winning games in more than 30 coun-
tries on six continents. She has served as the
director of games research and development at
the Institute for the Future, a non-profit re-
search group in Palo Alto, California. Her re-
search, which merges into future forecasting,
focuses on how games are transforming the
way we lead our real lives, and how they can be
used to increase our resilience and well-being.
As a futurist, her work has been featured in
The Economist, Vanity Fair, The New Yorker,
O(prah) Magazine, Fast Company, The New
York Times Science section, and more.
Jane McGonigal has a Ph.D. from the
University of California at Berkeley in perfor-
mance studies, and has consulted and devel-
oped internal game workshops for more than
a dozen Fortune 500 and Global 500
Companies, including Intel, Nike, Disney,
McDonalds, Accenture, Microsoft, and
Nintendo. As a speaker, Dr. McGonigal has
appeared at the World Economic Forum,
TED and the New Yorker Conference, and
keynoted SXSW Interactive, the Game
Developers Conference, the Idea Festival, the
National Association of Broadcasters, the
Web 2.0 Summit, UX Week, Webstock, and
more. At WLS 2014, she will speak on the fu-
ture of gaming. Focusing on recent discover-
ies in the neuroscience of digital games, Ms.
McGonigal will highlight in particular how
game designers have figured out how to
“hack” the happiness and reward centers of
the brain, encouraging players in their enjoy-
ment of games, and why this is good for us all.
And much more!In addition to the keynote sessions, WLS
2014 will feature 9 parallel sessions covering
topics ranging from traditional draw-based
games and instant tickets through to the latest
innovations in social media and online gam-
ing. WLS 2014 will also feature the popular
lotteries’ pep-talk, first introduced at WLS
2012, the Platinum Contributor session, fea-
turing C-level executives from GTECH,
Jumbo Interactive, INTRALOT, and Scientific
Games, and much, much more!
www.jumbointeractive.com [email protected]
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WLA magazine | No. 40 | Spring 201414
INSIGHTINSIGHTINSIGHT
Lotteries around the world rely on scratch tickets to provide a predictable, manageable product to help drive sales growth. They offer the advantage of having a myriad of variables that are all under lottery control, from game design and price points to inventory management and retail distribution.
Scratching their way to success
By some estimates, scratch tickets account
for about €56 billion of total lottery sales
worldwide. About half of that comes from
the well-developed American market, which
across the board has excelled in making the
most of the instant product. Among indi-
vidual lotteries, the world leader is Italy’s
Lottomatica, with €9.6 billion in instant
sales last year, followed by La Française des
Jeux with almost €5.6 billion in instant sales.
These are staggering numbers for a product
which is, at its essence, a piece of paper with
pretty images on it. But what a piece of pa-
per it is!
Keeping it fresh“The scratch product is the sizzle when there
is not a big jackpot,” said Cynthia O’Connell,
Secretary of the Florida Lottery, which has
been one of the fastest-
growing American
lotteries in recent
years, due in no
small part to de-
velopments in
its instant pro-
gram. “[Lotto]
jackpots are more
frequent than they
were, but they cannot be counted on, so the
scratch portfolio has to be vibrant, active
and engag ing, and must change often in or-
der to keep the product fresh.”
The U.K. National Lottery is another that has
seen great success in its instant game portfolio
recently. Operated by Camelot, the lottery’s
instant sales (includ ing scratch tickets and
online instant win
games) grew 20 per-
cent annually in both
fiscal 2012 and 2013,
reach ing £2,062 mil-
lion. “Our recent sales
success has been
driven by the intro-
duction of higher price points, an increase
in the range of games, the introduction of a
market-leading supply chain and changes to
the number of facings in retail,” said Head of
Instants Martyn Baxter.
He echoed O’Connell’s sentiments about the
importance of the instant product. Instant
games play a key role in Camelot’s long-term
strategy of “offering players an enhanced and
regularly refreshed range of games with differ-
ent themes, prize levels and price points to ap-
peal to all tastes, and more ways
to play to better suit people’s
changing lifestyles and shopping
habits.” To that end, Camelot in-
troduces between 35 and 40
scratch
tickets
a year.
There are almost as many philosophies
about how to best manage instant tickets as
there are lotteries. While there are a number
of best practices out there, what will work in
individual jurisdictions varies widely due to
resources, legislation, management tech-
niques and even cultures.
For example, the Massachusetts Lottery,
where the modern secure instant ticket got
its start 40 years ago, is often cited as one
of the best in the world when it comes to
the games. Its model consists of fewer
games with larger print runs than the “aver-
age” lottery, which supports a tremendous
prize structure and favorable prize pay-
outs. “It sounds like a simple mix,” said
Executive Director Beth Bresnahan. “We
introduce only 29 to 31 new games a year,
so we create a following – players find
their tickets and each game builds a loyal
player base.”
In other jurisdictions, lotteries might intro-
duce 60, 70 or more games in a year with the
goal of constantly keeping games fresh. After
all, instant tickets give lotteries a chance to
experiment, putting them in control when
other games rely on the luck of the draw.
Maximizing retail partnershipsInstant games also put the retailer into the
lottery business, noted Jim Kennedy,
Executive Vice President and Chief Executive,
Lottery Group, for Scientific Games. “The ba-
sic criticism of the instant business is that it
has a lower percentage margin [than termi-
nal-based games]. In order to have a healthy
instant business, you have to have a better
product for the consumer, and a better prod-
uct for the consumer means more prizes,
better positioning and better category man-
agement.”
And with a better product, one that comes
from really understanding what drives play-
ers to purchase, retailers make money on
lottery – not only in terms of lottery sales,
but also considering additional store traffic.
“When the lottery becomes a vital part of a
retailer’s economics of business, it takes a
front and center position,” added Kennedy.
“Lottery gets better placement, and clerks
and sellers are more focused on selling lot-
tery. As a result, it really is the instant game
that puts the retailers into a commercial
partnership with the lottery.”
That partnership in action has really impact-
ed the Florida Lottery in a most favorable
way. Florida led the American lottery indus-
try in fiscal 2013 in terms of percentage
growth in traditional sales. Total sales grew
13 percent year-over-year to top US$5 bil-
lion for the first time, while instant sales of
US$3 billion were up 18 percent. That suc-
been o
gr
f
peal to all tastes, and
to play to better su
changing lifestyles an
habits.” To that end, C
troduces between 3
WLA magazine | No. 40 | Spring 2014 15
INSIGHTINSIGHTINSIGHT
cess came in part from a new brand,
launched in early 2013, which revitalized the
entire culture of the organization. But it also
came from a continuation down the path of
really focusing on its instant product, which
continues to set records for weekly sales.
“It’s not magic,” said O’Connell. “It’s just con-
centrating on the fundamentals, really div-
ing down on how to improve organic
growth.” For the instant category, it meant
ensuring that retailers activate their ticket
packs quickly, most within 48 to 64 hours, so
that the lottery realizes the sales as soon as
possible. Auto-replenishment is another im-
portant feature, which allows for automatic
shipment of new ticket stock based on retail-
ers’ sales rates. Plan-o-grams, which visually
define the optimal placement of scratch tick-
ets at retail, have been quite successful. The
lottery is also using vending machines to
reach new outlets – there are about 1,500
ITVMs with only scratch tickets and another
500 full-service machines that sell scratch
tickets and the lottery’s major terminal
games. “That’s making a difference for us –
it’s giving us a larger footprint. It’s very diffi-
cult to expand retailers because there are
only so many retailers out there.”
Of course it’s also about having a great prod-
uct and providing support for that product.
Florida has concentrated on developing
games with consistent play styles that offer
great prize structures including experiential
prizes not available elsewhere. It puts adver-
tising dollars behind every major scratch
game rollout. So it has all come together.
“Advertising support, time of launches, great
inventory management and distribution,
and that high public confidence rating of the
Florida Lottery by consumers in Florida –
over 70 percent – that’s what’s helping our
sales,” said O’Connell.
Florida has been successful because there has
been “a very sustained and systemic approach
to category management all the way from the
design through the supply chain, and to the
retailers as commercial partners,” said
Kennedy, whose Scientific Games works
closely with the Florida Lottery. “Florida is a
great example of how we try to minimize the
amount of the retailer’s burden by using really
tight retail-specific just-in-time inventory
management. That focus on the supply chain,
combined with a good product, mitigates a lot
of pain. And the better product you have, the
less of a burden it becomes for retailers.”
Some of Camelot’s online instant win games mirror successful paper tickets available at retail, like £100,000 PURPLE.
WLA magazine | No. 40 | Spring 201416
INSIGHTINSIGHTINSIGHT
Optimizing price points and payoutsOpinions may vary about just what consti-
tutes a good scratch ticket. Certainly ticket
design and quality play a role, as do themes
and play styles. But there’s no doubt that ris-
ing price points and prize payouts have been
the primary drivers behind scratch ticket
sales growth over the past decade or more.
Lotteries have moved up the scale, and gen-
erally speaking higher price points come
with higher payouts – more than 81 percent
for a few select games.
But that’s not always the case. Part of Camelot’s
recent success, noted Baxter, is indeed an
overall increase in payouts (from an average
of about 64 percent to 66 percent) , but with
an emphasis on the lower price points in-
stead of the higher ones. This strategy was
designed “to help drive further sales growth,
and it has been focused at the lower price
points to drive player penetration, win belief
and trade-up opportunities.” He added that
Camelot is still in the early stages of evaluat-
ing this program and continues to review
the impacts.
Every lottery’s goal is to provide revenues
for good causes, and while higher price
points and higher price points drive sales,
there’s a balancing act to ensure that bot-
tom-line revenues also increase. “Our
US$10 and US$20 scratch games help drive
sales and payouts, because of their more fa-
vorable odds, but lotteries have to balance
what is expected in terminal game sales
with what they can pay out in scratch
games,” said Florida’s O’Connell. “It be-
comes a dynamic marketing model. How
can we get to the maximum transfer amount
[for our beneficiaries], while at the same
time not diminishing anything in the prod-
uct mix? It is quite a process that every lot-
tery director has to go through.”
As for the upper limit of price points – the in-
dustry probably hasn’t gotten there yet. In the
United States, the Texas Lottery has had a
great deal of success with US$50 instant
games. Texas – with US$3.2 billion in instant
sales in fiscal 2013 – now introduces some 70
games per year and releases a new US$50
game every 12 to 18 months.
Executive Director Gary Grief explained
that there was a lot of focus group research
when the US$50 price point was first consid-
ered. Players already choosing US$20 games
didn’t have a problem with spending US$50
on a ticket, as long as there was a much bet-
ter value proposition on the higher-priced
ticket. Accordingly, these games in Texas
have a US$7.5 million top prize and a high
prize payout percentage.
The US$50 games are
displayed with other
games at retail but are
not supported with
any specific advertis-
ing. “These games sup-
port themselves,” said
Grief. “I believe they
are filling a niche with
the players who can afford them and those
who are seeking the prizes which are being
offered in the US$50 game prize structures.”
Texas also looked into player attitudes about
a US$100 game, and the responses were fa-
vorable. However, since sales are strong at all
price points, Grief said there were no plans
at present to move in that direction.
Growth through distributionWhile increasing price points certainly drive
sales, as long as there is a prize structure that
provides value at those higher prices, there is
a limit to how often a lottery can go to that
well. Many in the industry consider an ex-
pansion of the retailer base as the low-hang-
ing fruit. While that also may vary by
jurisdiction, depending on the degree of re-
tail penetration, successful lotteries are
finding ways to reach new retail outlets, in-
cluding non-tradition al retailers. One way is
through vending machines, such as those
used by the Florida Lottery.
Another path is being taken in the U.K.
Twenty percent growth in instant sales two
years running is a tough act to follow, but
Camelot has ambitious plans to grow its
business by further increasing the number of
retail locations that sell scratch tickets.
Camelot currently sells the games in nearly
37,000 full-service retailers across the U.K.,
and is in the process of adding 10,000 or
more locations which will sell only scratch
tickets.
These new scratch ticket-only outlets will in-
clude traditional lottery locations, such as
convenience stores and independent shops,
and Camelot is also looking at non-tradi-
tional locations such as cafes and greeting
card shops, according to Baxter.
“These new standalone scratch terminals are
really good news for independent retailers
and smaller stores in general, because they
will allow those outlets that might not gener-
ate enough revenue or footfall to qualify for a
full National Lottery terminal the chance to
have The National Lottery in-store.”
The new terminals are not vending machines,
but include a customer-facing screen and the
ability to scan tickets to determine winners.
By adding thousands of additional outlets,
Camelot hopes to satisfy untapped demand
for the tickets and provide millions in addi-
tional funding for the National Lottery’s
good causes.
As well as good products, “advertising support, time of launches, great inventory management and distribution, and a high public confidence rating are all helping our sales.”
Cynthia O’Connell, Secretary of the Florida Lottery
Cynthia O’Connell, Secretary of the Florida Lottery
WLA magazine | No. 40 | Spring 2014 17
INSIGHTINSIGHTINSIGHT
The Texas Lottery has had considerable success with US$50 scratch tickets, which offer a top prize of US$7.5 million and an average prize payout percentage of 78 percent.
WLA magazine | No. 40 | Spring 201418
INSIGHTINSIGHTINSIGHT
A novel contract approachLotteries around the world always seek to
responsibly grow sales with the goal of in-
creasing the net revenue to their benefi-
ciaries. While good products and
expanded distribution can drive sales,
the cost part of the equation also comes
into play. After all, lotteries must pay
their vendor partners for the physical
tickets and for any requested services.
Many lotteries have contracts with multi-
ple printers, often with a primary contrac-
tor and one or more secondary contractors
that can provide specialty games. In this
way a lottery can have access to licensed
products or tickets with unique attributes
that will work well in its own market.
The Texas Lottery has taken another ap-
proach. In 2012, new contracts were signed
with Scientific Games, GTECH Printed
Products and Pollard Banknote, awarding
about one-third of the lottery’s ticket business
to each company. The six-year contracts had
common pricing, excluding certain licensed
or proprietary games, and at the end of each
year, the lottery is able to reallocate the num-
ber of games printed by each vendor based
on various performance goals such as qual-
ity, security, customer responsiveness, and
innovation. “In taking this approach, the
ticket printing vendors are effectively ‘com-
peting’ for our business every day, rather
than only during the RFP process,” ex-
plained Grief. “The vendors must con-
tinually bring their best ideas forward
and propose their latest innovations,
knowing that any slippage in perfor-
mance could result in fewer games
being printed by them the next year.”
This model has been successful
in Texas, said Grief, because of its
US$3.2 billion annual ticket sales and
the large number of individu-
al games introduced each
year. He acknowledged that
“the economics for the ticket
printing vendors would likely
not work for smaller jurisdic-
tions with much less volume.”
He added that all three compa-
nies have performed in “excellent fashion”
since the contract was executed in 2012.
Creating the multi-channel instant game The appeal of instant games has moved be-
yond paper tickets and into the online realm
in many jurisdictions. Camelot has Europe’s
largest online lottery business in terms of
sales, thanks in no small part to online in-
stant win games, which are available to play-
ers who are physically located in the U.K.
and Isle of Man.
There are around 35 games available online
at any given time, compared to about 16 pa-
per scratch tickets in stores. Some are identi-
cal or very similar to a paper game, but the
online environment allows for a wider range
of games. Given the unique aspects of the
online world, price points are typically low-
er online (ranging from 25p to £5 online,
compared to £1 to £10 on scratch tickets),
with higher average payouts (71 percent
online compared to about 66 percent).
Still, the ubiquitous paper scratch ticket
remains the bread and butter for many of
the world’s lotteries. Sales have remained
strong in most jurisdictions while terminal-
Gary Grief, Executive Director of the Texas Lottery
With the Texas Lottery’s new contract model for instant games, “the ticket printing vendors are effectively ‘competing’ for our business every day, rather than only during the RFP process.” Gary Grief, Executive Director of the Texas Lottery
Camelot hopes to keep instant sales growing in the U.K.
by reaching new retail locations through the use of standalone scratchcard terminals like this one.
WLA magazine | No. 40 | Spring 2014 19
INSIGHTINSIGHTINSIGHT
based games often lag. Many lotteries have
already taken advantage of the sales growth
provided by higher price points and payouts,
but that doesn’t mean the end of opportuni-
ty. “Just by good execution there are so many
things with which you can grow the instant
ticket business,” said Paul Stelmaszyk, Senior
Director and General Manager of GTECH
Printed Products.
Massachusetts’ Bresnahan agrees – her lot-
tery is probably at the maximum achievable
payout percentage (greater than 72 percent
across all products) so it needs to find other
ways to drive growth. “We’ll be really look-
ing at our existing portfolio to see what areas
we can improve upon – making the games
more attractive, making the play styles more
exciting and adding bonus features, for ex-
ample.”
Because individual lotteries are at various
stages of the product life cycle, globally
there’s a lot of room to grow sales, noted
Stelmaszyk. Everything from price points
and payouts to inventory management and
validation systems are tools that may be old
news in some markets but innovations in
others. “That’s why organizations such as the
WLA are extremely important – they pro-
vide a means to freely share information and
best practices.”
Indeed, information is critical for future
growth. The most advanced lotteries with the
latest inventory management systems prob-
ably aren’t taking full advantage of the data
those systems are capturing. “Even in very
mature, successful lotteries around the world,
there are an awful lot of data mining oppor-
tunities to help them continue to grow by
isolating non-obvious relationships,” said
Stelmaszyk. For example, an individual
game’s sales combined with store penetration
data might give a completely unexpected pic-
ture of how successful that game really is.
There are also opportunities to grow the
player base by finding ways to move players
from one type of lottery product to another,
or to introduce them to alternative channels
such as online and mobile play, where avail-
able. Lotteries are using licensed games to
introduce more consumers to well-known
brands, some that may already be in the in-
teractive space. “People buy these because
they are useful and relevant to their life. If
you can make it easier for them to cross over,
that’s always a good thing.”
It all started with a scratchInnovator John Koza created the math behind the scratch ticket
Forty years ago, the world’s first secure lottery scratch ticket was intro-duced in Massachusetts, home to one of just nine American lotteries oper-ating at the time. The new product launched what would become a sustainable driver of sig-nificant growth for the lottery industry. Today, instant games generate US$75 billion in sales for lotteries around the world – by conservative estimates – and are re-sponsible for continued industry growth while other game categories often lag.
The technical genius behind the innovation was John Koza, a computer scientist who was clearly ahead of his time, having cobbled together his own rudimentary “personal computer” as a high-school student in the 1950s. While studying for his Ph.D., he worked for J&H International, a company specializ-ing in rub-off games for supermarkets, calculating game probabilities. Shortly after he received his doctorate, the company went bankrupt. Bad news for them, good news for Koza and a fellow J&H employee, Daniel Bower. The two men were convinced the scratch-off concept had a future in the lottery industry, which at the time consisted primarily of weekly raffle-type games.
Koza and Bower thought lotteries should offer games with instant gratification – prizes that players could realize right away, without having to wait for periodic drawings. So with Koza’s mathematical prowess, which ensured that the games would be complete-ly random, and Bower’s marketing expertise, which made the games appealing to the public, the scratch ticket was born. Koza and Bower formed a new company in 1973, called Scientific Games, and proceeded to trumpet the features of their new product to American lotteries. First to bite was the Massachusetts Lottery, which introduced the modern scratch ticket to the public in May 1974. Of course, today that lottery is recog-nized as a global leader with one of the best instant ticket programs in the world.
Koza stayed with Scientific Games until 1987, serving as Chairman and Chief Executive Officer. Upon leaving the company, he turned his intellectual focus to genetic algo-rithms and artificial intelligence, inventing genetic programming, a way to solve com-plex engineering problems with almost no human guidance.
Certainly the lottery industry is blessed to have such an innovator in its past. And Koza knew what he had set in motion. In an interview with scratchcards.org later in his career, the computer scientist marveled at the revenues lotteries have raised for good causes around the world. And because instant gratification “is bound to be ap-pealing,” it comes as no surprise that his invention plays an increasingly important role in the industry to this day.
John Koza (on right) with Daniel Bower at Scientific Games’ 20th anniversary in 1993. At right, the very first secure scratch ticket.
WLA magazine | No. 40 | Spring 201420
INSIGHTINSIGHTINSIGHT
Licensed products have long been a way to provide extra value for players, often including unique experiential prizes related to the brands. And second-chance opportunities have moved beyond the basics and now include such things as interactive game-playing and progressive jackpots.
Adding value to the instant ticket experience
There is no limit to imagination when it
comes to instant games, but in the end they
are still a paper ticket – even with extended
play games, once you scratch, that’s all there
is. So it’s not surprising that lotteries and their
vendor partners have come up with numer-
ous ways to add value to that basic scratch
ticket. In many cases, licensed games are used
to provide a tie-in to a well-known brand,
often providing unique experiential prizes
that are unavailable to most consumers. Even
in the absence of a brand, lotteries may use
second-chance drawings to give players an-
other chance at a prize, or in some cases, just
a chance to play an interactive game for fun
on the Web or on mobile devices.
“Licensed products are important because
they not only appeal to people who al-
ready play our games, but also to people
who might not play our games but who are
interested in the licensed property,” said
Camelot’s Head of Instants Martyn Baxter.
The U.K. National Lottery operator has
used a number of licensed games, includ-
Licensed brands can have a local flair, such as the Guy Harveyseries of scratch tickets produced by the Florida Lottery.
The popular online casual game Bejeweled has become a successful licensed lottery game from GTECH, helping attract younger players.
WLA magazine | No. 40 | Spring 2014 21
INSIGHTINSIGHTINSIGHT
ing film-themed games such as James Bond
and Indiana Jones, popular online game
brands such as Bejeweled, and the timeless
MONOPOLY.
MONOPOLY is in fact the most success-
ful brand in the global lottery industry,
and Scientific Games has held the license
since 2003. Since 2006, there have been
over 170 MONOPOLY games launched
at retail and they typically perform well
above average. One of the latest iterations –
MONOPOLY Jackpot – adds a new second-
chance opportunity that includes an online
collector’s game and builds a monthly pro-
gressive jackpot across several jurisdictions.
Several U.S. lotteries are participating in the
game, and a small percentage of sales funds
the jackpot.
The Missouri Lottery is one of those lotter-
ies. “We are very pleased with the success of
our US$5 MONOPOLY Jackpot game that
started Dec. 30,” said Executive Director
May Scheve Reardon. “Players really like the
interactive second chance to win cash prizes
instantly and the chance to get entries into
the monthly progressive jackpot.”
Some licensed properties may help attract
young adult players, one of several goals
lotteries might have in using the games.
Because they are usually more expensive
to offer, licensed games have to provide ex-
ceptional benefits for the lotteries selling
them. “Some of the brands, including very
popular casual games, will hopefully attract
a much younger demographic for us,” said
Amy Morin, GTECH’s Marketing Director
for Printed Products, citing games like
Bejeweled and Plants vs. Zombies, which
have taken off as lottery games in several
countries. Licensed products are also used
to drive membership in lotteries’ players’
clubs, which provide a direct link for lotter-
ies to connect with their players.
Local contentNot all licensed games are well-known na-
tional or international brands. Regional
interest is a strong determinant of success-
ful lottery products. The Florida Lottery,
for example, created a Guy Harvey series
of licensed scratch tickets. “Guy Harvey
was not on the landscape in the scratch
market until we created it,” said Cynthia
O’Connell, Secretary of the Florida Lottery.
Harvey, an acclaimed marine wildlife art-
ist, offered unique promotional and sec-
ond-chance opportunities for the Florida
market. She noted that the tickets became
collector’s items that Harvey would sign.
“That’s a draw because you are bringing in
a new demographic of players.” And the ex-
periential prizes offered through the game
were things not attainable for the average
person, like going with Harvey on a fishing
trip to Panama.
Sometimes the brands are professional or
college sports franchises – many lotteries
around the world have successful relation-
ships with their local or regional teams.
For example, the Massachusetts
Lottery has had a great deal
of success in its team partner-
ships with the Boston Red Sox,
the Boston Bruins, the Boston
Celtics and the New England
Patriots. Second chance prizes
have included game experienc-
es, player meet-and-greets and
team travel getaways. “We are re-
ally trying to find innovative ways
to attract players with prizes and
experiences that can’t be obtained
elsewhere,” said lottery Executive
Director Beth Bresnahan.
Gateway to the InternetInteractive and second chance games
offer another big benefit to lotteries,
especially those which cannot actively
sell tickets online. Interactive games tied
to scratch tickets are a great way for lot-
teries to attract consumers already in the
online space.
Not surprisingly, these types of second-
chance opportunities have really taken off
for American lotteries in particular, where
instant games dominate the landscape.
Indeed, scratch tickets accounted for 60 per-
cent of traditional U.S. lottery sales in fis-
cal 2013, generating some US$37.5 billion
in sales.
Adding interactive components to games, such as Frogger or Cashword from Pollard Banknote, provides additional value for players.
WLA magazine | No. 40 | Spring 201422
INSIGHTINSIGHTINSIGHT
“In the past 18 months to two years, the inter-
active element has really gone to a new level,”
said Sina Aiello, Vice President, Marketing,
for Pollard Banknote. “Prior to 2013, most of
our interactive games, elements and offerings
have been attached to licensed games, where
it makes a great fit. More recently they have
migrated to lotteries’ core products.”
“iGaming is out there, so having that path-
way to the Internet is very important to us,”
added Aiello. “It’s an important strategy to
offer products that will help a lottery prepare
their players.” She noted that the Michigan
Lottery is a perfect example, starting with
free interactive games attached to core tick-
ets like Cashword and Bingo, and moving
into apps and social games. “They’ve nur-
tured their consumer along this pathway,
and they are ready to go” when Michigan
launches online lottery products for sale
later this year.
Michigan’s first for-fun interactive game was
tied to the licensed scratch game Dubble
Bubble in June 2010. A number of other
games have been offered since then, in-
cluding the aforementioned Cashword and
Bingo, plus Wild Time, another core game
providing fast-action entertainment. The in-
teractive games were tied into the lottery’s
player’s club in 2011, providing chances to
play for points and prizes, and a mobile app
was introduced in 2012.
“Our view is that it offers more value and more
entertainment to our players,” said Public
Relations Director Jeff Holyfield. “We see this
as an evolution of our operation, because we
want to be where our players are.” He noted
that the majority of players buy the scratch
games because they simply like the ticket, but
knows there is a small, but growing, percent-
age of players who buy the ticket and then go
online for an opportunity to get more value,
have a little fun and another chance to win.
Michigan’s experience with interactive
games is helping it learn what players want
from the online experience, as the lot-
tery prepares to launch Internet sales. “We
have a sense of what our players like,” said
Holyfield. “The main thing is that you have
to give players a quality experience in order
to compete in the online space.”
And that quality experience is the key to
keeping consumers playing lottery games,
driving growth for lotteries and the good
causes they support. “What is even more
valuable than the brand itself is the inter-
active experience you create for the player
around that brand,” said Mike Lightman,
Vice President, Lottery Interactive, for
Scientific Games. “More and more, lotteries
– and more importantly certain segments of
players – will be looking for games that have
those really rich interactive engaging experi-
ences to go along with them.”
Indeed, it all boils down to entertainment.
“We all like to say we are in the entertainment
business, so this gives us the opportunity to
offer things that are more entertaining,” said
Chuck Kline, Senior Vice President of MDI
Entertainment. “Anything we can do to make
lottery games more entertaining is good for
the long-term health of our business.”
MONOPOLY is themost successful brand in the history of the lottery industry, and Scientific Games has produced more than 170 MONOPOLY lottery games since 2006.
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INSIGHTINSIGHTINSIGHT
There is no doubt that instant tickets provide
lotteries with many significant benefits, and
four Central European WLA members have
come together in a ground-breaking collab-
oration that launched the Big Four scratch
game on March 28. Sazka (Czech Repu-
blic), Szerencsejáték (Hungary), Totalizator
Sportowy (Poland) and TIPOS (Slovakia),
recognizing that their countries have much
in common, developed a scratch ticket that
would have broad appeal in all four markets.
“We are approaching a breaking moment in
lottery history,” said Wojciech Szpil, Chairman
of the Management Board of Totalizator
Sportowy, when the new game was announced.
“I strongly believe that this instant will not
only scratch borders symbolically but that it
will also be a strong impulse for new 21st cen-
tury products and new cooperation patterns.”
The four countries share historical and cul-
tural backgrounds and their recent econom-
ic performance is similar. The four lotteries
share strong growth in instant ticket sales
and robust game portfolios, and have a com-
mon mind about what they need to ensure
growth: innovation, flexibility and the will-
ingness to consider unusual approaches to
satisfy customers’ needs. It seemed a simple
conclusion that they should come together
to create a special new product that would
provide the same experience for players in
all four countries. The instrument of choice
was a scratch ticket.
“The best area for experimenting was defi-
nitely instants: they not only offer the widest
range of opportunity by freely choosing the
number of games (play areas) and the materi-
als, colors and artwork applied, but are also
the most dynamically growing segments,”
said Kálmán Szentpétery, Chairman of the
Board and General Manager of Szerencsejáték.
“Instants are one of the most popular prod-
ucts in our portfolio and we are proud to wid-
en the palette with this unique game.”
Instant games also provide lotteries with man-
ageable expectations – they don’t suffer from
the unpredictable swings in performance ex-
perienced by lotto games, for example. And
each of the four lotteries has a world of experi-
ence with instant games, and understands
what their customers want in a new game.
Big Four offers a near-identical design across
all four countries, with similar game structures
and the same number of prize levels. The ac-
tual ticket price and prize structure vary by
country in order to adhere to local legislative
requirements, but the overall look and feel of
the tickets make them stand out as one. They
are done in rich colors of red and gold with im-
agery reflecting the region’s royal medieval his-
Lotteries are known for their willingness to work together and share information, and for decades multi-jurisdictional lotto games have been an important part of many lotteries’ portfolios. Earlier this year, four European lotteries took that sense of co-operation to a new level with the launch of a common-themed scratch ticket.
With a scratch, borders fall
Poland Slovakia Czech Republic Hungary
Population 38,5 M 5,4 M 10,5 M 9,9 M
Points of Sales # 13 500 2480 6850 6500
Payout 57,45 % 64 % 60 % 65 %
Odds 3,90 3,90 3,88 3,52
Tickets # 4 000 000 1 000 000 1 000 000 5 000 000
Top prizes (4x) 150 000 PLN 40 000 € 1 000 000 CZK 25 000 000 HUF
Price of BIG FOUR 5 PLN 3 € 50 CZK 500 HUF
WLA magazine | No. 40 | Spring 201424
INSIGHTINSIGHTINSIGHT
tory. The common appearance allows the four
lotteries to continue to work together in devel-
oping marketing communications materials.
“Big Four is historically the first instant lot-
tery in our scratch card portfolio created on
an international platform in close coopera-
tion with four lotteries, which gives it a brand
new dimension as well as international cred-
it,” noted Ladislav Kriška, Chairman of the
Board and General Manager of TIPOS. “I
believe it will become another of the many
successful products of our company.”
Each lottery has positioned its Big Four game
as a premium and limited-edition game.
Hungary has the largest print run of the four
lotteries, with five million tickets. That is typ-
ical for games at this price point, and
Szerencsejáték normally offers 10 to 12 dif-
ferent instant games annually. Four games
are permanent fixtures due to their popular-
ity; the rest are new games designed to keep
the palette colorful and attractive, with an
average of six new games per year. Big Four is
positioned as a premium game at the lottery’s
second-highest of four price points (HUF
500, or about €1.60). There are four top priz-
es of HUF 25 million (about €80,000).
By far the largest population base of the four
countries is in Poland, which printed four mil-
lion Big Four tickets. Totalizator Sportowy in-
troduces on average about 35 new instant
games annually, and last year there were a total
of 62 games on the market. That variety allows
lottery officials to meet the needs of its players
with popular base games, new and innovative
games, extended play games and families of
games. At PLN 5 (about €1.20), Big Four is a
premium game at the lottery’s second-highest
price point and is marketed as a special limited
edition product – the print run is actually a
little smaller than is usual for games at this
price point. In Poland, there are four top prizes
of PLN 150,000 (about €36,000).
The Czech Republic has a competitive mar-
ket for instant games, with Big Four partici-
pant Sazka holding about 55 percent of the
market in terms of sales. Market-wide, there
are a total of about 60 different instant
games offered each year across four lottery
companies. Sazka’s portfolio averages about
20 games, with 15 new games introduced
each year in a wide range of price points.
Instant ticket sales growth has been very
strong over the past two years. One million
Big Four tickets were printed for the Czech
market, at a CZK 50 price point (about
€1.80). Four top prizes of CZK 1 million
(€37,000) are available.
TIPOS in Slovakia also produced one mil-
lion Big Four tickets, at a price point of €3 –
about the middle range in the lottery’s
instant ticket portfolio. The smallest of the
four countries, Slovakia has been on an up-
ward path in terms of the number of instant
games on the market each year. TIPOS ex-
pects to launch 18 games in 2014 – some are
new products, while others are core games
that stay in the market but always receive de-
sign changes. Its Big Four game offers four
top prizes of €40,000.
Each of the Big Four versions represents the
hard work done by a core group of eight indi-
viduals across the four lotteries. They worked
tirelessly from the beginning (the process be-
gan in late 2012), working out details like
game design and developing marketing com-
munications materials to launch the product
in the four countries. They continue to share
information for data analysis and bench-
marking across their product lines. And they
believe that the successful teamwork will be
just the first step towards even more complex
collaboration in the future.
“I am very glad we have started a successful
cooperation with Poland, Slovakia and
Hungary – our closest neighbors with whom
we share historic roots and cultural tradi-
tions,” said Robert Chvátal, Chairman of the
Board and Chief Executive Officer of Sazka.
“The excellent teamwork proved that the
four lotteries can cooperate successfully and
effectively. We believe we should be looking
at further targets, new challenging opportu-
nities for cooperation. The launch of Big
Four is also confirmation of the large poten-
tial for future collaboration in the lottery
business.”
Each of the Big Four tickets has a similar look and feel, with luxurious red and gold colors reflecting the countries’ royal heritage.
WLA magazine | No. 40 | Spring 2014 25
INSIGHTINSIGHTINSIGHT
Founded back in 1933, the University of
Iceland Lottery (UIL) is the oldest operator
in Iceland’s domestic market. Its first draw
was held on March 10, 1934. The lottery has
been at the same headquarters down by the
lake in Reykjavik city center since 1944 and
today has a staff of 24 people. Under Iceland’s
gaming regulations, separate licenses are
granted for different types of gaming activi-
ties and the proceeds are earmarked for spe-
cific community causes. The UIL’s license is
unique in that it covers a range of different
game types, some of them offering major
cash prizes, and its proceeds support the
construction and maintenance of all of the
University of Iceland’s buildings. The UIL
pays an annual license fee, which currently
amounts to ISK 150 million (just under 1
million euros), and its support is widely rec-
ognized as crucial to the university and to
Icelandic society as a whole.
A diverse product mix“The UIL is currently authorized to run
three types of lottery products,” says Bryndís
Hrafnkelsdóttir, who has been CEO since
2010. “First there is the class lottery, which is
the ticket lottery we have been running from
the very beginning. Then there are scratch
tickets, which were introduced in 1987. And
finally we have been running Video Lottery
Terminals (VLTs) since 1993. With this di-
verse product mix, we have been able to al-
locate considerable sums to fund the
construction and maintenance of university
buildings.”
The lottery has fared very well during the re-
cent economic crisis, according to Bryndís:
“The UIL has stayed on course and managed
to continue contributing to the university
just as much as before,” she says. “The UIL
has funded almost all of the construction
cost of the university’s 22 buildings to date
and ensured maintenance in addition to ac-
quisitions of research equipment.”
Independent funding “This contribution has been absolutely cru-
cial to the University of Iceland,” Bryndís
stresses. “In fact the university would never
have been able to grow without the existence
of the UIL. Lottery funding has enabled the
university to flourish on its own terms, with-
out being totally dependent on the govern-
ment for capital contributions. The license
fee the UIL pays is channeled into the uni-
Iceland’s longest-established lottery organization recently celebrated its 80th anniversary at a time when lotteries are standing at a crossroads. Bryndís Hrafnkelsdóttir, CEO of the University of Iceland Lottery, talks about the situation today and the direction she would like to see the lottery taking in the years ahead.
The University of Iceland Lottery: building a brighter future
Bryndís Hrafnkelsdóttir has served as CEO of the University of Iceland Lottery since 2010.
WLA magazine | No. 40 | Spring 201426
INSIGHTINSIGHTINSIGHT
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AraAragatgata 1a 14 4 1973
AraAragatgata 9a 9 1963 ÁrnÁrnagaagarðurður r ÁÁ ðð 19691969
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The 23 buildings that the University of Iceland Lottery has funded over the years
versity community and has been used to buy
much-needed equipment and to fund re-
search.”
Risk management and responsible gaming researchThe issue of gambling addiction regularly
crops up with every kind of money game
and lottery, and the UIL has demonstrated
solid leadership on these issues and the
promo tion of responsible gaming. “The UIL
has been entrusted with the authorization to
run lottery games and we need to use it sen-
sibly,” says Bryndís. “We are fully aware of
the obligations placed on us to fulfill our
statutory role, which is to generate funds to
build up the university. Our commitment to
corporate social responsibility and respon-
sible gaming behavior is embedded in all of
our activities. Participation in a lottery is a
leisure activity, which entails the hope of
winning. Participation in money games will
therefore always include some level of risk,
which varies according to the specific game
and the different ways in which individuals
handle it. We are very conscious of that and
our role is to research, analyze and keep
people informed about these risks – and to
refer them to professional associations if
they need help.”
Over the years, the UIL has also given direct
financial support to Icelandic research into
gambling problems and addiction. Twelve
years ago it commissioned the University of
Iceland’s psychology department to conduct
research on problem gambling and gam-
bling addiction to further knowledge and
understanding of the problem. The UIL has
also provided strong support for associa-
tions that offer assistance to people grap-
pling with gambling problems and addiction,
such as the National Centre of Addiction
Medicine (SAA).
Partnership to promote responsible gamingThe UIL has teamed with two other Icelandic
lotteries (Íslandsspil and Íslenska Getspá) to
run a responsible gaming website, which
provides information on responsible gaming
and, among other things, offers people the
opportunity to assess themselves in an on-
line test. As a member of European Lotteries
and the World Lottery Association, the UIL
also keeps a close eye on what is happening
in other countries, particularly in Europe.
At the beginning of 2012, the UIL obtained
European Lotteries certification for im-
plementing the association’s standards for
responsible gaming behavior. The UIL sys-
tematically emphasizes the code of ethics to
be followed in marketing, supporting re-
search and disseminating knowledge and
expertise to customers and employees.
Bryndís believes the UIL has taken equal, or
in many cases, greater measures than those
taken in other Scandinavian and European
countries. “Importantly, these UIL measures
were not taken as the result of instructions
received from supervisory authorities or
ministries,” she says, “but based on the com-
pany’s own resolve to perform its function
in the best possible way.”
Video lotteries are a good example. When
VLTs were introduced in 1993, access was
immediately restricted and a great deal of
emphasis has been placed on ensuring that
the ban on children and youths under the
age of 18 using them is fully enforced. VLTs
are still only available in places where the
minimum age is 18 or 20. Leaflets on re-
sponsible gaming are also available in front
of all the video lottery terminals. In addi-
tion, the UIL has installed an informative
media window on all of its VLTs to inform
and guide customers on responsible gaming
and gambling problems. “I don’t know of
any other lottery that uses an information
window of this kind on its VLTs,” says
Bryndís.
The importance of product developmentBryndís Hrafnkelsdóttir has no doubt in her
mind that the future of the UIL will involve
some form of online gaming, but for the
time being the lottery has not yet been
granted the license required to operate over
the Internet. “Like with most companies,
product development is vital for the UIL,”
Bryndís tells us. “Radical changes are taking
place in this market and most of them are
happening online, particularly through the
use of smartphones and other mobile devic-
es. It’s a very exciting world that offers all
kinds of possibilities. We can sense that
there has been a contraction in the use of
our VLTs and this can naturally be attributed
to the rise in online gaming, since people in-
creasingly like to spend their leisure time
online.”
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INSIGHTINSIGHTINSIGHT
But the growing popularity of the World
Wide Web brings the UIL into direct compe-
tition with gaming providers based outside
of Iceland. “We are primarily in competition
with foreign companies offering Icelanders
foreign money games online,” says Bryndís,
“and it’s sad to see that the proceeds of that
participation are not being channeled into
the Icelandic community.”
Today, the University of Iceland Lottery
stands at a crossroads. In fact, the current
situation is not unlike the one that Iceland
faced just over 80 years ago when the deci-
sion was made to launch the first Icelandic
class lottery. Back then, Icelanders were avid
players of the Danish lottery and the new
class lottery was seen as a good way to make
sure that the local community benefitted
from gaming proceeds.
“Now it’s the Internet,” says Bryndís. “The
Internet is basically just a distribution me-
dium for current products that presents lots
of other exciting opportunities. We are
lagging behind other European countries
since no progress has been made so far.
There is nothing to prevent the authorities
from issuing licenses for online games with
money prizes, if they look into it.”
Hopeful of an online futureBryndís believes there will eventually be a
consensus on the UIL’s authorization to op-
erate games online, since it’s a logical ex ten-
sion of the operator’s existing license.
“Hope fully the government will realize that
it would be to everyone’s benefit to change
this situation,” she continues. “The money
that Icelanders are al ready spending on on-
line gaming needs to be channeled back
into the Icelandic community to support
important pro jects. On top of that it’s easier
to promote responsible gaming online than
it is on our VLTs, since all players are regis-
tered. Another persuasive factor is that
Icelanders will be able to play on an Icelandic
gaming site that they trust and in the
knowledge that the proceeds are going to
wor thy national causes in the Icelandic com-
munity.”
As the country’s longest-serving lottery or-
ganization, the University of Iceland Lottery
(Happdrætti Háskóla Íslands) has been a
consistent source of independent university
funding for 80 years. Throughout its history,
it has successfully introduced new product
families and stayed abreast of player prefer-
ences, remaining on course even in the
toughest economic times thanks to constant
innovation and a solid commitment to re-
sponsible gaming. As it looks to the future,
the UIL fully intends to continue to support
Iceland’s higher education community
while tapping into the exciting new oppor-
tunities of online distribution channels in
order to stay relevant to the Icelandic play-
ing public.
VR-VR-IIIIII 1987VR-VR-II II 1975 OddOddi i 1985 TækTæknignigarðarður ur 1988 NýiNýi ga garðurður r 1996 HásHáskólkólatoatorg rg 2007
SólSóltúntún 1987 HagHagi i 1991 AskAskja ja 2003 GimGimli li 2007LækLæknagnagarðarður ur 1983
OddOddii 1985
Iceland’s oldest lottery held its first draw exactly 80 years ago.
WLA magazine | No. 40 | Spring 201428
INSIGHTINSIGHTINSIGHT
Now in its sec-
ond year, the
New Horizons
in Responsi-
ble Gambling
Con ference highlighted the notable de vel op-
ments that continue to be made in responsible
gam bling research and practices around the
world. It provided delegates the opportunity
to engage with professionals, to network in an
industry-focused environment, and to hear a
variety of speakers share their experience,
research, best practices, and innovations.
The 2014 conference featured 21 expert
speakers and panelists from across the globe,
each shining the light on social responsibil-
ity in the gaming industry. Presentations
were geared towards specialists – researchers
and academics, problem gambling treatment
providers, and prevention experts – on the
one hand, and gaming operators committed
to delivering exceptional and responsible
programming on the other. Education, out-
reach, and responsible marketing were the
main themes.
Kicking things offThe event kicked off with lively discus-
sion at a pre-conference workshop, Energy
Conservation in Gambling Facilities, where
operations managers shared ideas about
managing facility sustainability. Delegates
were officially welcomed the following morn-
ing with an address from the Honorable
Michael de Jong, British Columbia’s finance
minister. Minister de Jong, who has respon-
sibility for gambling oversight in the juris-
diction, re-affirmed the commitment of the
province and BCLC to establish the Center
for Gambling Research at the University of
British Columbia. The minister then intro-
duced Dr. Luke Clark as the Center’s first di-
rector. Dr. Clark comes to the Center from a
position as senior lecturer in neuroscience at
the University of Cambridge, England.
This year’s conference keynote was expertly
delivered by Dr. Jeff French, professor at
Brunel University and CEO of Strategic
Social Marketing Ltd. His presentation, How
to Design and Deliver Social Programs that
Influence Behavior, used several illustrated
examples in reviewing contemporary social
With the success of the inaugural event in 2013 setting a high bar for this year’s New Horizons Conference, host BCLC delivered a follow-up conference this past January that surpassed expectations. A diverse group of delegates came together to a world-class venue in Vancouver to hear from experts around the globe. Ninety-five percent of attendees surveyed indicated satisfaction with the experience, with 91% planning to return next year.
New Horizons in Responsible Gambling Conference
celebrates a second successful year
Conference host Paul Smith, Director of Corporate Social Responsibility at BCLC, welcomes delegates to the 2014 New Horizons conference.
WLA magazine | No. 40 | Spring 2014 29
INSIGHTINSIGHTINSIGHT
programs aimed at influencing behavior. He
explored how people make decisions, and the
implications of this when developing effec tive
programs for minimizing harm and protect-
ing those with potential gambling problems.
Dr. French demonstrated the importance of
marketing in attempting to drive behavior
and the obligation and responsibility that
comes with this. His lively session was sup-
ported with graphic facilitation, with Aftab
Erfan of Whole Picture Thinking providing an
impressive visual recording of his message.
Cutting-edge researchFirst time New Horizons speaker Dr. Sally
Gainsbury travelled all the way from New
South Wales, Australia, to impress delegates
with her research on electronic gaming ma-
chines. Dr. Gainsbury, a respected clini-
cal psychologist and lecturer in the Centre
for Gambling Education and Research,
Southern Cross University, shared updates
and findings on an Australian trial cur-
rently in progress. In the trial, dynamic
warnings are used to encourage players to
manage their gambling responsibly. Dr.
Gainsbury showed that warning messages
can be important components of a strat-
egy to minimize problem gambling, and
demonstrated the effect of the design, fre-
quency, format, and content of such mes-
sages on players.
Drs. Alex Blaszczynski of the University of Sydney and Robert Ladouceur of Laval University in Quebec retraced the development of their influential 2004 position paper, A Science-based Framework for Responsible Gambling: the Reno Model in a special lunchtime session that kept the midday audience entertained.
British Columbia Lottery Corporation (BCLC) is a leader in responsible gam-ing, having been certified in 2010 to Level 4 of the WLA Responsible Gaming Framework (WLA-RGF), the highest level of certification possible. (See WLA Magazine number 39, Winter 2013/2014, pp. 34–35.) Level 4 of the WLA RGF is focused on continuous improvement, and marks a milestone on BCLC’s continuing journey to socially responsible gaming.
About BCLC
Aftab Erfan’s visual interpreta-tion of plenary speaker Dr. Jeff French’s key-note speech on how to design and deliver social programs that influence behavior.
WLA magazine | No. 40 | Spring 201430
INSIGHTINSIGHTINSIGHT
Dr. Mark Griffiths, director of the Interna-
tional Gaming Research Unit at Notting ham
Trent University, returned for his second year
at the conference to build on his very well
received presentation from 2013. This year
he addressed social responsibility in market-
ing and advertising, addressing speculation
on the impact of advertising as a possible
stimulus of problem gambling. Dr. Griffiths
asserted that more research is needed to de-
termine if there is an actual causal link be-
tween advertising and problem gambling.
His presentation provoked lively discussion
in what proved to be a vibrant session.
Drs. Alex Blaszczynski of the University
of Sydney and Robert Ladouceur of Laval
University in Quebec entertained the au-
dience in a special lunchtime session that
retraced the development of their influen-
tial 2004 position paper, A Science-based
Framework for Responsible Gambling: the
Reno Model. The model frames gambling re-
lated problems as a public health issue, and
calls on key stakeholders to join together to
reduce gambling related harm in the com-
munity. Through a prepared video and a
live interview, the two men reflected on les-
sons learned and the way the industry has
evolved, injecting their insightful observa-
tions into conversation on an ever-changing
industry.
What the Public Thinks (and Why it Matters),
a session led by Mr. Don Feeney, Director
of Research and Planning at Minnesota
State Lottery, featured an interactive dis-
cussion about the results of interviews and
focus groups held in different juris dic tions
across North America. Mr. Feeney’s re search
showed that while the typical member of the
public thinks problem gam bling is a serious
issue, it is generally con sid ered something
that happens to someone else. In light of
these results, delegates were asked to con-
sider potential unintended consequences of
key messages in their campaigns, and how to
effectively target the right audience.
Diverse viewpointsOne of the most talked about sessions in
2013 was the live focus group, which asked
seniors for their insights and experience
gambling. This year’s conference featured a
focus group of regular gamblers who were
asked for their thoughts on What Responsi ble
Gambling Really Means to Players. Dele gates
watched attentively as participants discussed
the reasons they enjoy gambling games, the
concepts of randomness and risk, and the
effectiveness of responsible gambling mes-
saging.
New in 2014, New Horizons invited delegates
to take part in a poster session. Posters from
students, researchers and industry profes-
sionals displayed research theories, methods,
outcomes, and information across a wide
variety of topics, and authors were on hand
to answer questions and discuss their stud-
ies. The opportunity to share preliminary re-
The inaugural poster session at this year’s New Horizons conference was a huge success. The session featured 19 posters, on topics ranging from gambling and homelessness to rodent decision-making behavior.
Don Feeney, Director of Research and Planning at the Minnesota State Lottery, addresses the audience.
INSIGHTINSIGHTINSIGHT
search amongst delegates was an added value
that seemed to be appreciated by all delegates.
Student posters were assessed by a team
of judges including Paul Smith of BCLC,
Dr. Sally Gainsbury from the University of
Sydney, and Sue Birge from the Responsible
Gambling Council, Canada. Parisa Hedayat-
mofidi of the University of Toronto received
the award for best poster. Her prize was
CAD 1000 in funding towards a future
gambling related conference. Runners up
Melanie Tremblay and Michael Barrus, both
from the University of British Columbia,
took home CAD 500 each in funding to-
wards a future gambling related conference.
It’s all about the peopleIn addition to presentations and sessions,
networking social events encouraged in-
dustry professionals to connect with others
who are also passionate about responsible
gambling.
Conference host Paul Smith, BCLC’s
Director of Social Responsibility, had high
praise for the combination of a hard work-
ing organizing committee, conference vol-
unteers, and sponsors. “We don’t use an
event management company to organize
this event. It’s entirely the product of an en-
thusiastic group of BCLC employees deliver-
ing an event of which we’re all proud. We’re
also delighted that so many of our first year
sponsors endorsed New Horizons and came
back again to form the core of an expanded
list of sponsors.”
“This year our total number of delegates was
up, our total number of sponsors and spon-
sorship dollars was up, and overall delegate
satisfaction with the event was up. I’d have
to say it was a tremendous success, and we’re
already thinking about how to improve for
New Horizons 2015.”
For more information on the New Horizons
in Responsible Gambling Conference please
visit www.horizonsrg.com. You can also fol-
low New Horizons on Twitter@HorizonsRG.
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The Center for Gambling Research at the University of British Columbia has been established to conduct indepen-dent, innovative research on the social and behavioral aspects of gambling, to help inform and advance responsible and problem gambling prevention policy
and programming in British Columbia and beyond. Research activities from the center will contribute to scientific knowledge internationally and help build local expertise by supporting graduate and post-graduate student training in this field.
About the Center for Gambling Research
WLA magazine | No. 40 | Spring 201432
INSIGHTINSIGHTINSIGHT
Eradicating the global threat of match-fixing isn’t going to be easy. But when sports officials, law enforcement, judicial authorities, and gaming operators work together to improve awareness and governance, the chances of fighting back effectively get a little better. Sportradar’s fraud detection system has already proven effective in a number of high-profile cases. The Swiss company is also providing sports leagues and federations with customized education and consultancy packages that could usefully be supported by sports betting operators.
Sportradar security services help prevent match-fixing
The sculpture created exclu-sively for the
Prince of Asturias Awards by
Spanish sculptor Joan Miró
In 2005, the infamous Robert Hoyzer was ex-
posed for manipulating matches in Germa ny
at the behest of a Croatian crime syndicate,
at the head of which was a man named
Ante Sapina. It all started quite innocently,
with two meetings in a Berlin café. What
transpired not only paved the way for
Sportradar’s Fraud Detection System as we
know it today; the story also shows that
prevention measures and education are es-
sential to combating match-fixing. Prior to,
during, and after Hoyzer’s time, a major
Singaporean crime syndicate has manipu-
lated matches on every continent. The threat
of match-fixing is real and perennial, gener-
ating vast profits for those corrupting sport.
After the Hoyzer scandal, Sportradar de-
veloped an Early Warning System for the
German Football Federation (DFB) to mon-
itor betting patterns for signs of manipula-
tion. By 2009, with the help of UEFA, the
most sophisticated system to date – the Fraud
Detection System (FDS) – was born. Initially
monitoring over 31,000 matches per season,
its primary aim was to track betting odds
movements across hundreds of different bet-
ting operators around the world and to de-
tect suspicious betting patterns in real time.
Today, over 55,000 matches are monitored
per annum in football, tennis, futsal, cricket,
rugby union, and handball. The FDS com-
prises the following core features: compre-
hensive betting database; scientific alerting
system; fraud scoring database of individu-
als; vast professional analytical experience;
an unrivaled level of coverage; and a proven
ability to detect suspicious betting. Since May
2009, Sportradar has identified over 1,250
suspicious football matches worldwide.
The long arm of the lawBut a sports monitoring system and federa-
tion cooperation are not enough to combat
match-fixing. Law enforcement agencies are
From left to right: Betaland Marketing & Communication Manager, Sara Rosa; Malta FA Treasurer, Ivan Mizzi; Betaland Director, Luigi Discornia; Malta FA President, Norman Darmanin Demajo; Sportradar Managing Director, Andreas Krannich; SportsLawyer partner, Anja Martin.
security services
WLA magazine | No. 40 | Spring 2014 33
INSIGHTINSIGHTINSIGHT
needed. They can use Sportradar’s informa-
tion and data for gathering intelligence and
investigatory evidence as well as expert wit-
ness statements for prosecution. Indeed, in
2013, the FDS detected suspicious betting in
both Austrian and Australian soccer compe-
titions, which led to significant police inves-
tigations. The Acting Chief Commissioner of
the Victoria Police in Melbourne, Australia,
acknowledged Sportradar’s expertise in
2013: “Sportradar identified the match-fixing
issue within the Victorian Premier League
and subsequently supported and provided
specific match odds advice to Victoria Police
during the investigation. Operation Starlings
was a successful investigation, and Victoria
Police appreciates the valuable expert assis-
tance provided by Sportradar.”
Sportradar detected the initial match-fixing
and reported it to the Victoria Police as the
match-fixing was ongoing, allowing for a
real-time and highly effective investiga-
tion. In addition, Sportradar explained the
nuances and jargon of the betting markets
so that law enforcement could understand
what was occurring.
In addition to Victoria Police, Sportradar
has supported the State Office of Criminal
Investigations in Hessen, Germany, the pub-
lic prosecutor’s office in Frankfurt, prosecu-
tors of the Bochum case, the Austrian Federal
Police, and Hong Kong’s Independent
Commission Against Corruption (ICAC).
In the case of the Austrian Federal Police,
Sportradar supported the ongoing investiga-
tion by analyzing matches and the individu-
als involved.
Fraud Prevention Service Credible, comprehensive monitoring of the
worldwide gambling market by Sportradar’s
FDS is an important requirement to tackle
manipulation in the future. However, edu-
cational and preventive measures must also
be taken to inform athletes, coaches and of-
ficials about the possible dangers and conse-
quences of match-fixing.
Aware of this need and building on its ma-
ny years of experience in this unique area,
Sportradar has now developed its Fraud
Prevention Service (FPS). The FPS offers every
sport federation all the necessary support and
information needed to tackle match-fixing.
Whatever problems a sport federation faces –
whether they already have problems with
manipulation or simply want to take pre-
ventive measures – the FPS offers solutions
tailored individual needs and budgets. These
include induction workshops, tailored ed-
ucation workshops, reviews of processes,
rules and procedures, and e-learning solu-
tions to support education and prevention.
Education has a lasting impact on the con-
tinued fight against corruption. When
players, officials, and coaches are aware of
incoming threats, understand the conse-
quences of manipulation, and know what to
do if approached, those seeking to corrupt
sport will have little place to turn.
The Sportradar Fraud Prevention Service: use casesThe FPS has helped Italy’s Lega Pro with
its workshops and e-learning tools and is
currently conducting an Integrity Tour in
Malta. In addition, Genoa CFC in Italy has
organized a club-specific tailored workshop
as part of the FPS. Highlights of these recent
initiatives are detailed below.
Lega Pro Integrity Tour 2013-2014
rd & 4th tier in Italy
for youth teams
Genoa CFC Integrity Program 2013
and coaches as well as local media
Malta Football Association Integrity Tour 2014
youth players, and coaching staff from
all 1st & 2nd Division clubs
and referees
developed for players and referees
based on work by German Sport
University of Cologne and external
legal experts
and escalation
One of the major successes of the FPS oc-
curred after the Lega Pro Integrity Tour
2013. As part of the tour, Sportradar con-
ducted a full education workshop with the
club Salernitana. In May 2013, Salernitana
player David Mounard reported an ap-
proach made to him by a former teammate
to help fix a league match against Gavorrano.
He immediately knew what to do, passing
the information to the Procura Federale,
and the match was ultimately not manip-
ulated.
Marcello Presilla, International Integrity Agent at Sportradar (left), with Alessandro Zarbano, CEO of Genoa CFC.
WLA magazine | No. 40 | Spring 201434
INSIGHTINSIGHTINSIGHT
In addition, during the 2011-2012 season,
Sportradar detected 14 Lega Pro matches
that were suspected of being manipulated.
Due to the subsequent monitoring of their
matches by the FDS, combined with the par-
allel organization of an Integrity Tour, com-
prising comprehensive education of Lega
Pro’s clubs (players, youth players, presidents,
and referees) as well as an accompanying
e-learning program, just two matches were
escalated to report status for the 2012-2013
season. This represents a huge decrease in the
level of suspicious activity observed within
their competitions and highlights the posi-
tive effects of liaising with the FPS.
Sponsorship opportunitiesSportradar is actively encouraging compa-
nies to sponsor an Integrity Tour to help
local federations to tackle their match-fixing
problems – past, present, and future. The
most obvious choice to sponsor an Integrity
Tour would be a responsible licensed book-
maker or lottery operator. It would be an
opportunity for operators to give something
back to the game they draw their profits
from, demonstrate their ethical approach to
the industry, and show they have the integ-
rity of sport at the core of their business. In
practical terms, particular operators would
be seen to be helping their league prevent
match-fixing by supporting the FPS and its
ability to ensure that match-fixing in that
particular country diminishes.
Match-fixing is able to generate vast amounts
of profits with little risk and/or punishment,
so eradicating the problem is not going to
be easy or straightforward to achieve. And
yet, it is becoming more difficult for would-
be match fixers and players to execute their
schemes efficiently. And every time moni-
toring systems, educational services, sports
federations, and law enforcement agencies
work together, the window of opportunity
for match-fixers closes a little more.
Advertisement
About Sportradar
Headquartered in Switzerland with branch offices and representations in Europe, Asia, Africa, and the Americas, Sportradar is the world’s leading suppli-er of sports and betting-related data.
Sports authorities all over the world rely on the company’s fraud detection system to identify betting-related manip ulation of sporting events, and a range of education and consultancy services is also available to help leagues and federations prevent match-fixing.
Sportradar has been a WLA Associate Member since 2012.
For further information visit www.sportradar.com
WLA magazine | No. 40 | Spring 2014 35
INSIGHTINSIGHTINSIGHT
Coinciding with its 75th anniversary, the Spanish Organization for the Blind (ONCE) won a prestigious Prince of Asturias Award in 2013 for its role in enhancing the dignity and quality of life of millions and setting an example for community organizations around the world. The prize is a powerful endorsement of this lottery operator’s role as a standard-bearer for the rights of disabled people, and validates its continuing engagement with the principles of self-reliance and social responsibility.
ONCE receives royal honors for its model of social inclusion
Official photograph of TRH the Prince and Princess of Asturias with the Laureates. From the left, bottom row, Cristina Lucchese, represent-ing ONCE; François Englert; Peter Higgs; Saskia Sassen; Liv Parlee Cantin, representing ONCE; Michael Haneke; Antonio Muñoz Molina; Annie Leibovitz; and José María Olazábal. From the left, second row, Rolf Heuer, Director General of CERN; Miguel Carballeda, President of ONCE; Peter Gruss, Director General of the Max Planck Society for the Advancement of Science; and Soojin Ryu, Ali Shahmoradi, Damián Refojo, and Matthias Weißenbacher, representing the Max Planck Society for the Advancement of Science.
ss
The sculpture created exclusively
for the Prince of Asturias Awards by
Spanish sculptor Joan Miró.
WLA magazine | No. 40 | Spring 201436
INSIGHTINSIGHTINSIGHT
The Prince of Asturias is the historical and
official title given to the heir to the Spanish
throne. The current holder of the title –
Felipe, son of King Juan Carlos of Spain
and Queen Sofía – instituted the annual
Prince of Asturias Awards in 1980 to pro-
mote scientific, cultural, and humanistic
val ues and strengthen ties between the royal
family and the Principality of Asturias in
Northern Spain. Prizes in various catego-
ries, including the Arts, Liter a ture, So cial
Sciences, Communication and Human ities,
Technical and Scientific Re search, Inter-
national Cooper ation, Sports, and Concord
are awarded to individuals, entities, or orga-
nizations from around the world who make
notable achievements in the sciences, hu-
manities, and public affairs.
The Awards are presented in September
each year at a widely publicized ceremo-
ny in Oviedo, the capital city of Asturias,
where the winner in each category receives
a cash prize of 50,000 euros and a sculpture
specially created for the Prince of Asturias
Foun dation by Spanish sculptor Joan Miró.
This year’s Concord award went to the
Spanish Organization for the Blind (ONCE).
The 75-year-old institution was selected
from of a field of 37 contenders not only in
recognition of its work to promote the so-
cial inclusion of blind and visually impaired
Spanish citizens, but for the example it has
set for community organizations outside
Spain, all of which have made a significant
difference to the lives of disabled people
around the world.
International prominenceAward-winners are selected by a jury made
up largely of prominent Spanish dignitaries
and thought leaders, but the awards are res-
olutely international in scope and have pro-
gressively gained prestige and recognition
on the world stage. The prizewinners come
from every corner of the planet. In the Con-
cord category, for example, previous winners
of the Prince of Asturias Award for Concord
include Heroes of Fukushima, the dedicat-
ed workers who volunteered to stay behind
after the nuclear disaster in 2011 to help se-
cure the devastated site; the City of Berlin
on the 20th anniversary of the fall of the
Wall; Yad Vashem, the Holocaust Museum
in Jerusalem; J.K. Rowling; Steven Hawking;
and UNICEF.
In announcing its decision in September
2013, the jury bestowed the Concord Award
on ONCE “in view of its extraordinary work,
carried out for over three quarters of a cen-
tury, which has enhanced the dignity and
quality of life of millions of disabled people
in Spain, promoting their integration in
society and thereby serving as an example
for numerous international initiatives that
have followed in the wake of this valuable
endeavor.”
Three representatives of the organization at-
tended the Awards ceremony at the historic
Campoamor Theatre in Oviedo, sharing the
world media spotlight with such luminaries
as scientist Peter Higgs, film-maker Michael
Haneke, sociologist Saskia Sassen, and Peter
Gruss, President of the Max Planck Society
for the Advancement of Science.
“Being blind and disabled, with all the dif-
ficulties that entails, we are proud to achieve
the highest possible accolade,” said ONCE
President Miguel Carballeda on receiving
the 2013 Concord Award. “We dedicate it to
all those who turn to us every day to share
their hopes, and to so many organizations,
both large and small, which do an outstand-
ing job on a daily basis to support people
with disabilities. It is a triumph for orga-
nized civil society.”
Run by blind people for blind peopleONCE (Organización Nacional de Ciegos
Españoles) was created in 1938 when several
existing blind associations joined together to
provide a means for blind and visually im-
paired people to earn a living and improve
their quality of life.
The institution is authorized by the Spanish
State to organize ticket sales for ONCE lot-
tery games, which fund the organization,
create jobs for more than 20,000 people
with disabilities, and provide assistance to
over 71,000 blind or severely visually im-
paired people living in Spain. ONCE and
the ONCE Foundation also invest in a range
of other businesses, which have created jobs
and helped to integrate more than 30,000
people with disabilities in the workplace.
Further afield, ONCE is involved in a wide
range of international projects, in particular
in 19 Latin American countries, which have
benefited more than 121,000 blind school-
children and provided workplace training
for more than 50,000 people in the last four
years. ONCE is also an active member of
the European Blind Union, the World Blind
Union and the International Council for
Education of the Blind, as well as playing a
prominent role in promoting the rights of
disabled people in the key United Nations
and European institutions.
“Mucha concordia y muchas gracias!” enthused ONCE President Miguel Carballeda, pictured here accepting the Concord Award with fellow ONCE representatives Liv Parlee Cantin (left) and Cristina Lucchese (right, with Brizzy the guide dog).
WLA magazine | No. 40 | Spring 2014 37
INSIGHTINSIGHTINSIGHT
Self-reliance and responsibilityFor ONCE, the model of social integration
commended by the Awards jury in Oviedo
goes even further than protecting the rights
and well-being of blind people and promot-
ing their place in society. As a seller of gaming
products, the organization is acutely aware of
its responsibility to the broader community
and is actively involved in promoting new
avenues of research into problem gaming. A
team of scientists at the University of Duesto
received ONCE funding in 2011 for a two-
year research project on problem gaming risk
factors among adolescents, and a second In-
ter national Contest on Responsible Gaming
Research was launched by ONCE in July 2013
(see WLA Magazine N°38). By helping to fi-
nance new areas of academic study, ONCE’s
goal is to stimulate research into the identifi-
cation of problem gambling risk factors and
to minimize the negative effects of gaming on
society. The winners of this second competi-
tion are due to be announced later this year.
The Prince of Asturias 2013 Award for Con-
cord is a particularly fitting accolade and a
significant landmark for this Spanish institu-
tion, which also celebrated its 75th anniversa-
ry last year. It epitomizes the core principles
and values that have guided the organization
on a day-to-day basis throughout its history,
and comes as a further endorsement of its
exemplary role in promoting solidarity, self-
reliance and responsibility not only in Spain
but, increasingly, on the international stage.
Advertisement
ONCE: an example of concord and self-reliance for community organizations worldwide.
WLA magazine | No. 40 | Spring 201438
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subsidiaries are leading companies in their
mar ket segments: ADMIRAL Sportwetten
GmbH, for example, is the largest sports bet-
ting provider in Austria, with 205 outlets. And
Greentube Internet Entertainment Solutions
GmbH is a leading developer of gaming solu-
tions for Internet, mobile and iTV, specializing
in the development of 3D download games.
New player on the lottery market – NOVOMATIC acquires Betware
NOVOMATIC AG, through its subsidiary NOVOMATIC Lottery Solutions GmbH, has acquired a majority shareholding in Betware, the Icelandic gaming pioneer and one of the leaders in online gaming solutions for lotteries. NOVOMATIC AG now owns a 90% stake in the Icelandic company, with the remaining 10% retained by the Betware management.
The Group manufactures gaming machines as well as operating casinos.
Corporate headquarters of the NOVOMATIC Group near Vienna, Austria. NOVOMATIC is a global player with companies in 45 countries. Inset: Thomas Graf, Chief Technology Officer.
WLA magazine | No. 40 | Spring 2014 39
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
Adding lottery to the mix NOVOMATIC has now decided to en-
ter the lottery market and Betware’s
products and services are a great fit to
complement its gaming technology port-
folio. Betware’s aim has always been to of-
fer its customers top-class solutions that
are best fitted to their lottery operations.
Its R&D teams keep track of the market and
how trends evolve in line with the needs of
the players. This has enabled the company
to consistently anticipate the expectations of
lottery operators, ensuring access to the most
advanced technologies on the market and
helping them to be among the most innova-
tive lotteries in their respective jurisdictions.
As part of the NOVOMATIC Group, Betware
will continue to further develop its lottery so-
lutions, based on the strength, openness and
flexibility of the Betware gaming platform.
Both NOVOMATIC and Betware share the
mission of offering products and services
only in markets with precise regulatory
frame works. For both companies respon-
sible gaming and player’s safety and secu-
rity are a very important aspect of running
their business. The combined resources
and industry expertise will provide a com-
plete solution, including all sales channels
(online, mobile, and land-based), for lot ter-
ies of all sizes and in every jurisdiction.
“We are very excited and are looking for-
ward to joining the NOVOMATIC Group
and jointly contributing industry experi-
ence, talent and expertise,” said Betware
CEO Stefan Hrafnkelsson. “We are confi-
dent that this transaction will create new
value in the lottery market, linking to-
gether the strength of NOVOMATIC with
Betware’s innovative lottery solutions. I
strongly believe together we will become the
market leader within the lottery segment.”
Thomas Graf, CTO of NOVOMATIC com-
mented: “Our acquisition of Betware has
been a logical step to further enhanc-
ing our competency in electronic and
video lottery technologies. Betware’s
open platform architecture is second
to none, providing tailor-made so-
lutions to any small- or large-scale
lottery operation. It seamlessly inte-
grates a complete range of product
verticals, including those of third-
party vendors. With our combined
resources, know-how and indus-
try expertise, we will be able to
offer any lottery operator a
360-degree solution for all dis-
tribution channels, including
online, mobile, and land-based,
which will be a clear advantage
in an increasingly competitive
operating environment. I am
convinced that with Stefan
Hrafnkelsson’s experienced
and dedicated management
team, we will fully lever-
age our potential and surprise
the industry.”
Betware offers lottery solutions for all channels. Thomas Graf, Chief Technology Officer of NOVOMATIC.
Winning technology: World racing champion
and entrepreneur Niki Lauda recently became
NOVOMATIC’s new brand ambassador.
WLA magazine | No. 40 | Spring 201440
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
No story makes a bigger impact in the global
lottery industry than a story told by num-
bers. And these numbers make for a big
story. Between 2009 and 2013, draw game
sales in Europe decreased by US$2.9 billion,
according to data collected by La Fleur’s
Almanac. During this same period, instant
game sales in Europe increased by US$9.4
billion. In fact, instant games are proving to
be a strong growth driver for European lot-
teries’ product portfolios.
The growth trend in the instant product
category is one that analysts have observed
emerging over the last several years with
high-profile European lottery operators such
as Camelot (U.K.), Lotterie Nazionali S.r.L.
(Italy), and La Française de Jeux (France).
In Hungary, Szerencsejáték Zrt grew instant
game sales 29% in one year – from €116 mil-
lion in 2012 to €150 million in 2013. The
instant product category now accounts for
16% of Szerencsejáték Zrt’s total sales.
In Portugal, Jogos Santa Casa has also real-
ized the untapped potential of instant lot-
tery games over the last decade as it sought
revenue solutions in a challenging economic
climate. As a result, instant game sales have
grown a remarkable 500% since 2010, mak-
ing Jogos Santa Casa the fastest-growing
European lottery in the instant game cat-
egory today.
Although Jogos Santa Casa launched instant
games in 1995, it wasn’t until 2005 that a
steady growth pattern in the category began.
The lottery began to fully embrace global
best practices in instant game design and
portfolio management. Sales grew steadily
for several years and then began a rapid
growth period (see chart).
Jogos Santa Casa’s instant games were the
only category in the lottery’s portfolio to
grow more than 50% in recent years. In
2013, instant games became its second-larg-
est product category, accounting for 33% of
all sales.
Bigger prize payoutsAn upside to the challenging climate, ac-
cording to Fernando Paes Afonso, Jogos
Santa Casa’s CEO, was the renewed excite-
ment among Portuguese players for greater
prize payouts. For Jogos Santa Casa, this
has meant rethinking how they serve their
player base.
“We had to reinvent our lottery products
so people could play responsibly and be
enter tained at the same time. We also had
to re mem ber the social essence of playing
games.”
Jogos Santa Casa is committed to providing
its products in a healthy manner and with
a long-term view. While people like to play
lottery games – and a large majority like to
play in a social context – the lottery is sensi-
tive to the reality that most people have lim-
ited disposable incomes.
Instant games, sold under the Raspadinha
brand in Portugal, are core to the lottery’s
vision for a well-balanced, sustainable prod-
uct offering. Its instant product portfolio
includes a variety of games at lower price
points, which resonates with budget-con-
scious players. Last year, Jogos Santa Casa
took a calculated risk, launching its first €5
game, which has since become the lottery’s
strongest revenue generator.
“The Super Pe-de-Meia™ game has the high-
est price of the Raspadinha portfolio, which
responds to a wider demand by the public
for higher prize payouts,” says Paes Afonso.
In recent years, Jogos Santa Casa has reinvented the instant game category, which accounted for 33% of the lottery’s sales in 2013.
Instant games drive lottery growth in Europe
Responding to changing player demands and despite a tough economy, Portugal’s Jogos Santa Casa has reinvented the instant game over the last ten years to realize untapped potential. Europe’s fastest-growing lottery for instant games shares the story behind its recent 500% growth in the category.
WLA magazine | No. 40 | Spring 2014 41
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
“A higher prize payout and a new distribu-
tion framework were the two major factors
that drove the growth of our instant games,”
he explains.
The lottery also worked with the legislature
to eliminate taxes on prize money, a move
that has also helped their instant game cat-
egory thrive.
Winning partnershipPaes Afonso credits the lottery’s nearly
decade-long partnership with global lottery
industry provider Scientific Games for its
dramatic success in growing the instant
games business.
“Scientific Games has contributed its exper-
tise both in physical game production and
in the development of game options with
the highest success potential, based on their
deep experience with other lottery markets
worldwide,” says Paes Afonso.
In 2009, Scientific Games helped Jogos
Santa Casa modernize its distribution sys-
tem, which serves nearly 4,500 retailers.
Retailers used to buy tickets in bulk packs at
the bank; now they use the lottery’s distribu-
tion system and can order tickets through
their POS terminals. The terminals act as a
just-in-time system to validate tickets, which
assures players they are receiving authentic
tickets. The prize can only be paid if the tick-
et is not damaged, which serves to prevent
fraud. Retailers receive their tickets within
72 hours of ordering them, with no need to
pay up front.
“The retailers were very pleased with the
change as it represents less cash investment,
more security and more product availabil-
ity,” says Paes Afonso.
What’s next?As Jogos Santa Casa looks to grow its market
share by 16% in the next few years, key ini-
tiatives in the next year include optimizing
the retail environment to better position in-
stant games, and offering instant games with
more diverse price points and themes.
“Portugal is a shining example of what a Eu-
ro pean lottery can achieve by listening to its
customer base, adopting best practices and
bringing innovative products to market,”
says Kevin Anderson, vice president, Inter-
national Business Development for Europe,
Middle East and Africa at Scientific Games.
“We’re excited to help Jogos Santa Casa take
their instant game strategy to the next level.
The collaboration between our companies is
based on a practical, open approach and we
are very proud of the efforts of Fernando Paes
Afonso and his team. Its ability to meet chal-
lenges, overcome obstacles and drive success
should position Jogos Santa Casa as an instant
lottery leader in Europe in 2014 and beyond.”
For Paes Afonso, the continued success of
the lottery is embedded in his vision for a
sustainable future. Since Portugal’s first lot-
tery draw in 1784, the gaming operator has
been generating funds for good causes. The
lottery supports Santa Casa da Misericórdia
de Lisboa, a 500-year-old charity that allevi-
ates suffering. Foster homes, homes for the
elderly, hospitals, and schools are all benefi-
ciaries of the charity.
“We’ve built a strong reputation of integrity,
security and social responsibility through-
out our history. We’re obliged to manage
the lottery in a way that assures that we
will be there for at least 500 more years,”
Paes Afonso concludes.
“As European lotteries look to increase
revenues by adjusting product portfolios
primarily comprised of draw-based games,
Portugal’s success allows them to see how
instant games can add revenue and provide
an exciting experience for their players,”
said Anderson.
A selection of the Raspadinha portfolio of instant games that has helped Jogos Santa Casa to adapt to changing player demands.
Fernando Paes Afonso,CEO of Jogos Santa Casa, the Games Department of Santa Casa da Misericórdia de Lisboa in Portugal.
WLA magazine | No. 40 | Spring 201442
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
INTRALOT started its Australian opera-
tions in 2007 with the award of one of the
two lottery licenses on offer in the State of
Victoria. The company started its lottery
business primarily offering instant scratch
tickets (‘scratchies’) and a number of on-
line games, such as Bingo, Lucky 3, Lucky 5,
Lucky Lines, and Keno (with a jackpot of
AU$2 million on offer every day). Since
July 2008, these same games have also been
available in Tasmania through INTRALOT’s
distribution channels of local retailers and
newsagents.
In 2011, a million-dollar instant scratch
ticket – a first for INTRALOT in the region
– was an instant hit and has since been fol-
lowed by two more successful AU$1 million
instant scratch tick ets in Australia.
Having established a solid position in this
highly competitive lottery market, its strat-
egy is to further enhance its position in both
Victoria and Tasmania by introducing a new
and innovative family of games never, before
offered in the region.
Leading technology providerIn addition to this successful track record
as an operator, INTRALOT is also the sup-
plier of gaming technology to the Lottery
Commission of Western Australia (Lottery-
west). This relationship continues to mature
as Lotterywest capitalizes on INTRALOT’s
investment in advanced technology and
leading-edge technological solutions.
INTRALOT substantially expanded its ac-
tivities and strengthened its position in
Australia in 2011, when the company was
awarded the exclusive license to monitor
about 27,000 gaming machines installed
in clubs and hotels throughout Victoria.
This was a major achievement for the com-
pany locally and globally and it testifies to
the technical compliance and operational
excellence of INTRALOT’s technology, as
well as its ability to provide value-added
services and support to a very demanding
regulator.
Certification and interoperabilityiGEM, INTRALOT’s cutting-edge central
monitoring system, is certified to the latest
standards of the Gaming Standards Associ-
ation (GSA), which are designed to enable
interoperability of the most innovative gam-
ing technologies, such as game and software
download, server-based gaming, central
con figuration control, unlimited flexibility
for linked jackpots and game offerings, and
player-based services.
iGEM uses multi-protocol interface boards
to enable connectivity and support of any
type of electronic gaming machine (EGM),
regardless of the communications protocol
used. As a result, the system has removed
technical restrictions across Victoria’s
gaming sector, allowing operators to lever-
age their existing games and at the same
As well as distributing instant games across the retail network, INTRALOT is one of the region’s leading providers of gaming technology and advanced monitoring systems to help ensure regulatory compliance.
INTRALOT in Oceania: looking forward to an exciting year!
INTRALOT is proud to be reaching a decade of successful opera-tions in Oceania. Ever since it was awarded a New Zealand gov-ernment contract in early 2005 to monitor all gaming machines in the country, INTRALOT has been successfully building its local brand in the Australian and New Zealand markets and is looking ahead to further expand its presence in the region.
WLA magazine | No. 40 | Spring 2014 43
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
time source the best games and EGMs avail-
able from all major EGM manufacturers.
In Victoria, INTRALOT managed to com-
plete a very complex monitoring implemen-
tation project that involved the migration
from two legacy systems to iGEM, the tran-
sition from two licensed operators to mul-
ti ple single-venue/retail licensed operators,
and a complete overhaul of technical stan-
dards and operational procedures. The mi-
gration of more than 27,000 EGMs in more
than 500 venues was concluded in a re-
cord time of six months with no issues and
min imal downtime and costs to the venue
operators.
In addition, about 4,500 EGMs were con-
nected to iGEM progressive and mystery
jackpots, and wide-area jackpots are now
being delivered to allow gaming operators
to diversify their jackpot product offering to
their gamers.
Ongoing support for regulatorsThe innovative iGEM technology and the
technological approach for venue cabling
and WAN network configuration is guar-
anteed to fully serve additional needs of
the industry and is already used as enabling
infrastructure to approved third-party pro-
viders, so that gaming operators can offer
loyalty programs to their customers.
Upon successful completion of the EGM
monitoring deployment, the State of Victoria
entrusted INTRALOT to become the pre-
ferred supplier of the first state-wide volun-
tary EGM pre-commitment system. Under
a pre-commitment program, players pre-set
limits, before they play, to reduce the risk
of problem gambling and encourage them
to make rational and conscious decisions
about their gambling. The program is due
to become operational in all gaming ven-
ues, including Melbourne’s Crown Casino,
in late 2015. As a result, INTRALOT is
currently working with the Victorian State
Government and all relevant stakeholders
to design and build this pre-commitment
system. The project comes as recognition of
the company’s innovation, quality of service,
and dedication of talent and resources fo-
cusing on the Australian market.
In New Zealand, INTRALOT has been suc-
cessfully operating its Electronic Monitoring
System (EMS) since 2007, monitoring about
20,000 EGMs across 1,500 venues around
the country. This has been covered by a
five-year contract with the Department of
Internal Affairs (DIA), which has already
been extended until the year 2020.
INTRALOT’s latest technological innova-
tion in New Zealand has been the devel-
opment of the Gaming Licensing System
(GLS), which has been successfully deployed
as the “integrated gambling platform” of
the Department of Internal Affairs. The in-
tegrated platform offers end-to-end pro-
cessing and workflow management for all
gaming licensing and compliance processes.
New Zealand’s GLS provides for regulatory
compliance audits and investigations, in-
cluding remote online access by the regula-
tor’s mobile compliance teams.
Building on solid groundHaving built a reputation for excellence
and solid leadership in the Oceania mar-
ketplace by providing bespoke technolog-
ical solutions tailored to customer needs,
INTRALOT is preparing to capitalize on
upcoming opportunities, to expand its pres-
ence, and enhance its technology and ser-
vice offerings for the gaming sector. This
includes monitoring programs in new juris-
dictions, loyalty and player tracking services
for operators, solutions to enable the shift to
cashless transactions, and more.
INTRALOT’s product and service portfolio,
the quality of its people and its unrelenting
dedication to customer service and satisfac-
tion make it confident that it will continue
to excel as opportunities arise. INTRALOT
looks forward to another exciting year in
Oceania in 2014!
The highly flexible iGEM monitoring system technology supports all global gaming protocols: SAS, QCOM, G2S as well as a number of proprietary protocols.
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
WLA magazine | No. 40 | Spring 201444
A lottery’s mission is to operate in a manner that
secures the honesty and integrity of the lottery
and its games, and to protect the well-being of its
customers while maximizing revenues for the
good causes it supports. The Internet and per-
sonal connected devices represent powerful tech-
nologies that can enhance a lottery’s mission.
An Internet initiative for a lottery is no different
to any other business or government agency: to
cost-effectively improve operational efficiencies,
create greater awareness, and enhance access
and convenience through wider access to goods
and services through e-commerce and m-com-
merce. For a lottery, that means creating aware-
ness of the games, jackpots, draw dates, the real-
time dissemination of drawings and results, and
the convenience to purchase the lottery games
anytime, anywhere.
Protecting the well-being of customersUnscrupulous retailer clerks: It is an unfortunate
fact of life that there are dishonest people in our
society. Our retailers are not immune from these
people, who have on occasion cheated our cus-
tomers through various means, such as telling
them that a winning ticket was not a winner or
telling them that a ticket won a lesser amount, and
then cashing the ticket for his or her benefit. In
the digital world, the payment process is divorced
from clerk intervention as prizes are deposited au-
tomatically into the customer’s account.
Responsible gaming: Many will argue that the
ability to purchase lottery tickets using the
Internet will create many more problem gam-
blers. In fact the exact opposite is the case. In
the traditional lottery retail world, there are no
mechanisms to prevent a player purchasing
more than they can afford, spending the prover-
bial paycheck as the argument goes. In the digi-
tal world, there are many checks that can be
effectively imposed — such as self-exclusion,
lottery-specified daily limits, and player-set lim-
its — to prevent such activity.
Protection of minors: As a society we all want
to protect our children from doing certain things
until they are of an age to judge for themselves
Digital sales channels — a timely boost for lotteriesThe power of digital sales channels not only appeals to new demographics of players, but can be a response to many of the concerns that lotteries constantly face. Social, political, and operational issues can cause roadblocks — but early adopters of digital sales channels, such as Camelot in the UK, Veikkaus in Finland, and Jumbo Interactive in Germany, are now reaping enormous tangible and intangible benefits from their Internet deployment strategies.
Jumbo Interactive works with lotteries to deploy safe, balanced Internet strategies combining connectivity, convenience and a sense of community.
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
WLA magazine | No. 40 | Spring 2014 45
the merits of undertaking certain activities, one
of which is being allowed to purchase lottery
tickets. In the traditional retail environment,
there has to be a reliance on the retail clerk to
perform such age verification. In the digital
world, on the other hand, the customer must
first register with the lottery and establish an ac-
count, a process that includes age verification.
There are several ways to verify a player’s age,
such as cross-checking with commercial or gov-
ernment databases and uploading government-
issued documentation such as a driving license.
The black market: Players are currently being
solicited to purchase lottery tickets over the
Internet by unauthorized lottery resellers. This
black market is unsafe for consumers and our
children. A lottery providing a regulated and se-
cure alternative will help eliminate these activi-
ties and stop the outflow of funds that would
otherwise come to the lottery.
Driving operational efficienciesMarketing and promotion: Communicating
and engaging the public at large is of paramount
importance to maximize revenues. Until the ad-
vent of the digital world, this was a costly un-
dertaking and involved using mass media to
spread a wide net. Now our messaging can be
tailored and targeted to a diverse community of
demographics and delivered cost-effectively.
The same is true of all of the lottery’s informa-
tion, from real-time streaming of draws and
communicating results and prizes, to new game
announcements and ‘how-to-play’ video clips.
Social media not only enhances the dissemina-
tion of our messaging but provides endorse-
ment of the lottery by friends telling friends
— it’s the digital equivalent of word of mouth.
More cost-effective distribution: It is no secret
that one of the key ingredients for a successful
lottery is purchase convenience. Even with a
large retail network that provides a high termi-
nal-to-population density, the retailer’s operat-
ing hours can hinder the player’s convenience
and ability to purchase. Expanding the network
by adding more terminals to the traditional re-
tail network is costly, not only due to the capital
cost but also the ongoing service and mainte-
nance expense. By comparison, the deployment
of digital sales channels is far more efficient and
cost-effective, affording customers more conve-
nience to purchase.
The mobile jackpot: The past few years have
seen the explosive penetration of mobile devic-
es, which now outnumber the entire global pop-
ulation. Whilst not everybody has a mobile
device, an enormous number of consumers do,
and this statistic can signal a huge opportunity
to drive sales and a real jackpot for lotteries.
Lotteries can reach players on their mobile de-
vices to provide alerts, announce special offers,
and prompt a purchase.
A younger audience: Lotteries face decline
from an aging demographic, so there is a need
to cater to a younger audience. The Internet cer-
tainly provides access in a form that a younger
audience understands and wants to engage with.
In their world it’s all about connectivity, conve-
nience and community. The Internet provides
connectivity to access the lottery, convenience
to purchase, and a feeling of community as they
share everything with friends.
Maximizing revenue for good causesIncreased sales and revenue: Over the past sev-
eral years, lotteries have embarked on many ini-
tiatives including multi-jurisdictional games,
cross-selling, and price-point strategies to main-
tain growth. Unfortunately, over time, the
success of these initiatives has faded. As an in-
dustry, we are now looking for the “next big
thing” to increase sales and maintain revenues.
Fortunately, mega-jackpot draw games such as
Powerball, Mega Millions and Euro Millions are
our greatest products and represent the greatest
opportunity to sustain growth through more ef-
ficient and convenient distribution. As the early
adopters of the Internet can attest, new demo-
graphics of consumers can be engaged when lot-
tery products can be purchased conveniently.
These new consumers can be reached via social
media, which represents another opportunity to
efficiently and cost-effectively expand a lottery’s
reach. With digital sales channels, lotteries can
communicate and interact with consumers in
ways that have not previously been possible.
The needs of traditional retailers: The success
of lotteries, in large part, has been due to the
size and diversity of the traditional retail net-
work — a fact that must not be overlooked with
the introduction of digital sales channels.
Lotteries need to capitalize on the retailers’ web
WLA magazine | No. 40 | Spring 201446
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
presence to reach both new and existing cus-
tomers. Most retailers understand the power of
the Internet: they utilize it to promote their
stores and have created large databases of cus-
tomers. Enabling retailers to promote the sale of
lotteries to their customers under an e-retailer
solution, like that offered by Jumbo Interactive,
will find new players and drive sales without
cannibalizing in-store sales.
Embracing traditional retail channelsOver the past decade, Jumbo Interactive has
been pioneering the application of new technol-
ogies to develop tools for lotteries, retailers, and
players that complement the digital sales chan-
nels to maximize sales and re venues for good
causes. To address the needs and concerns of the
traditional retailers, Jumbo has developed and
deployed several innovative solutions to provide
traditional retailers with tools to better serve
their lottery customers. These include e-Retail-
er, Smart Signs, and GPS Check-In.
e-Retailer: This innovative solution provides a
gateway between the retailer and the lottery that
enables the retailer to sell via the digital chan-
nels. The lottery retail simply assigns a portion
of their website to “lottery”, which Jumbo man-
ages for them with relevant up-to-date lottery
information like results, jackpots, prizes, and
drawings. By clicking “Play Now”, the player is
seamlessly directed to the Jumbo site where all
of the regulatory requirements — registration,
geo-location and age verification — are com-
pleted to allow the player to purchase lottery
tickets. Upon completion, the player is returned
to the retailer’s website.
The e-Retailer solution creates a diverse network
of e-retailers within the lottery’s jurisdiction, and
ensures that each e-retailer’s website has consis-
tent messaging reflective of the lottery’s stan-
dards. Jumbo provides a complete turnkey
solution at no cost to the lottery, operating on
retailer commissions and covering the expense
of maintaining system hardware and software.
Smart Sign: Jumbo Smart Signs can be displayed
anywhere inside or outside a retail location, allow-
ing customers that see a lottery sign to instantly
“snap, tap or check-in” to buy tickets instantly us-
ing their smartphone. ‘Snap’ refers to the familiar
QR code (Quick Response code); ‘tap’ refers to
NFC (Near Field Communications); and ‘check-
in’ refers to using GPS to verify location.
Customers are given the convenience of purchas-
ing their ticket direct from their smartphone, and
the retailer that owns the sign location is credited
with the sale and commission. Bonuses and in-
centives can also be offered as a way of driving
customers back into the retailer’s store.
Jumbo Smart Signs have been devised specifi-
cally with the retailer in mind. They ensure that
retailers share in benefits of the digital sales
channel and increase foot traffic into their
stores. At the same time as increasing lottery
sales, they use the lottery in new ways to grow
associated retail business.
GPS Check-In: Lotteries miss many opportuni-
ties to recruit retailers in the social space catego-
ry (bars, taverns, cafés, etc.) because the retail
staff does not have the time to operate the lot-
tery terminal to sell or cash tickets. This is par-
ticularly the case with Keno games that have a
draw every four minutes or so.
Jumbo’s GPS Check-In allows customers to
check-in at these retailers using their smart-
phones to gain access to permitted games and
watch draws that are streamed to their phones.
When they leave the retail location they are au-
tomatically disconnected. The retailers benefit
simply by being a lottery retailer with no staff
and no equipment needed.
Supporting lotteries’ Internet strategiesToday lotteries can utilize the power of the
Internet in the form of digital sales channels to of-
fer customers the convenience they expect with-
out necessarily expanding overall gaming activity
or endorsing unregulated Internet gambling. If
revenue growth is the goal, digital solutions can be
built accordingly. If social responsibility is the
goal, solutions can also be built accordingly. In
most cases a combination of many goals is needed
— and yes, the solutions can be built accordingly.
Jumbo Interactive believes that deploying a bal-
anced Internet strategy is the logical next step
for lotteries virtually everywhere, not only to
serve their customers better but also to realize
business efficiencies and protect the revenue
that is generated for good causes. The tangible
and intangible benefits are compelling when
framed in the correct context.
By Brian J. Roberts, Jumbo Interactive President,
North America
Enormous numbers of consumers now own one or more mobile devices, signaling a huge opportunity to drive sales and a real jackpot for lotteries.
ALL ROADS LEAD TO ROME IN 2014
WORLD LOTTERY SUMMITNOVEMBER 2 – 5, 2014
ROME IS WAITING TO WELCOME YOU SO SAVE THE DATE!
Rome is rightfully considered the historical capital of the western world. This year, Rome will also become the capital of the lottery world as lottery professionals from around the globe converge on The Eternal City for the World Lottery Summit 2014 (WLS2014).
Preparations are well under way for this once-in-a-lifetime experience. Come join us in Rome, Italy, from November 2 – 5, 2014 at the Cavalieri Convention Hotel, one of the most prestigious addresses in the city!
www.wls2014.com
Lottomatica
Viale del Campo Boario, 56/D
00154 Roma
Italia
Phone: +39 06 518 991
Fax: +39 06 518 943 60
lottomatica.it
World Lottery Association
Lange Gasse 20
P.O. Box, CH-4002 Basel
Switzerland
Phone: +41 61 284 1502
Fax: +41 61 284 1350
world-lotteries.org
WORLD LOTTERY SUMMIT
NOVEMBER 2 – 5, 2014
RO
ME
All roads lead to Rome
WLA magazine | No. 40 | Spring 201448
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
Second chance programs with unique con-
sumer experiences offer lotteries an excellent
opportunity to diversify their game portfolio
and attract new players. As part of its wide
range of professional strategy solutions,
GTECH provides complete turnkey expe-
riential marketing campaigns that grab the
attention of new players, generating excite-
ment and entertainment, driving purchase,
and creating consumer loyalty. GTECH can
design, implement, and track promotional
programs to support your licensed games.
It brings these programs, suitably packaged
and customized, to each local market. It then
provides end-to-end service to support the
implementation of those solutions to increase
bottom line profits.
Spectacular Caesars promotionrevitalizes high price-point programA spectacular example of a turnkey solution
offered by GTECH is its $1,000,000 Caesars
Jackpot program. When the Minnesota
Lottery (U.S.) chose to reenergize instant
ticket sales at the US$30 price point, it
turned to GTECH and Caesars, a name
synonymous with luxurious days, extrava-
gant nights, and unparalleled gaming en-
tertainment. The first licensed property
the Minnesota Lottery has launched at the
US$30 price point, this game was a natural
fit, owing in part to the upscale value of the
Caesars brand and its previous success in
other jurisdictions.
An attitude and usage study conducted
by GTECH identified promotions, large
jackpots, second chance drawings, and
merchandise prizes as the top drivers of in-
creased spend. To ensure the success of the
$1,000,000 Caesars Jackpot game, GTECH
created a comprehensive, luxury-themed
program for the Minnesota lottery that ac-
commodated all these elements. The pro-
gram centered on a unique experiential
prize package and included:
paid VIP trips for winners plus guest to
Caesars Palace in Las Vegas. Benefits in-
cluded travel, deluxe accommodations,
food and beverage credit, and spending
money, plus attendance at an exclusive
$1,000,000 Caesars Jackpot Party.
packs.
campaign.
GTECH provided the $1,000,000 Caesars
Jackpot game itself, complemented by a rich
oversized black and gold foil ticket with five
and three US$1,000,000 instant top prizes.
Additionally, GTECH handled all the mer-
chandise prize procurement and fulfillment
as well as travel arrangements for the win-
ners. GTECH is also designing, managing,
and hosting the $1,000,000 Caesars Jackpot
Party, to be held in Las Vegas for winners
and their guests. Included are food, drink,
and entertainment, plus cash prizes for each
player, and all 30 winners of this luxury trip
One lucky winner will go home with at least
US$100,000, with the chance to win up to
US$1 million (US$1 million prize insured).
The $1,000,000 Caesars Jackpot instant
ticket at the US$30 price point has per-
formed strongly for the Minnesota State
Lottery, reversing a downward sales trend at
this price point, with a 6% gain in sales com-
pared to the Lottery’s previous US$30 game.
Like all of GTECH’s games and promotions,
Turnkey second chance marketing programs engage new players
GTECH’s second chance marketing programs leverage the equity of popular brands to win over loyal lottery players as well as to attract new players from younger demographics. Its $1,000,000 Caesars Jackpot instant ticket with unique VIP experiential second chance prizes and its complete, multifaceted Bejweled® and Plants vs. Zombies® promotional programs offering money-can’t-buy second chance VIP experiences are just two scintillating examples of GTECH’s branded licensed content strategy.
The name Caesars is synonymous with entertainment. GTECH’s custom Caesars second-chance promotion offers players a second chance to win a fabulous all-expenses paid trip to Caesars Palace in Las Vegas to attend an exclusive $1,000,000 Caesars Jackpot Party.
WLA magazine | No. 40 | Spring 2014 49
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
the $1,000,000 Caesars Jackpot program can
be completely customized and adapted to
meet your lottery’s specific needs. GTECH
will work with you to identify the best pa-
rameters for any event and put together a
winning package for your players.
Dazzling, multi-faceted promotional programsMultichannel marketing strategies are a
necessity in today’s markets, and GTECH
is at the forefront of both multichannel
and cross-channel marketing techniques.
GTECH has put together 100% turnkey
programs that will dazzle your players. For
example, GTECH can work with PopCap®
Games to customize a Bejeweled or Plants
vs. Zombies program unique to your juris-
diction. Nearly 30 lotteries have signed on to
bring these instant games to their jurisdic-
tions, where they have enjoyed great success,
indexing above average, and attracting mil-
lions of people to second chance websites.
Using Bejeweled – one of the top-10 selling
games of all time – as a sample, GTECH
offers a scintillating end-to-end marketing
program, including:
submit codes from their Bejeweled ticket
to be entered in second chance drawings.
-
agement, including prize procurement,
inventory, and fulfillment, as well as play-
er communication and winner notifica-
tion. Prizes can include experiential prizes
(see below for more information), tablet
computers, related merchandise, or even
“rare gems,” each with its own unique
gameplay effect, to enhance the Bejeweled
Blitz play experience and increase scores.
GTECH will work with you to identify
various funding and prize options for
your second chance programs.
for-fun Bejeweled Blitz game and tourna-
ment where players compete to be on your
lottery’s leaderboard.
and mobile devices, including tablets and
smartphones.
Facebook and other social sites.
GTECH’s end-to-end marketing program
also offers money-can’t-buy experiential
prizes, such as:
brightly as Bejeweled. GTECH will work
with you to identify the best location for
the event and put together a once-in-a-
lifetime package for winners. The trip
includes transportation, VIP hotel accom-
modations, spending money, and custom-
ized events for the weekend.
wins cash and someone might go home a
millionaire! Parties can include full meals,
hors d’oeuvres, music, cocktails, or dancing
– it’s your choice! Parties can take place in
your capital city, aboard a cruise ship, or at
a different fabulous venue of your choice.
stage containing cubes in the shape of a
Bejeweled board will be revealed. Players
are then called up to open a cube of their
choice to reveal a prize amount. Whatever
amount is revealed will be what the win-
ner takes home. GTECH will work with
you to customize game mechanics, such as
number and amounts of prizes, and levels
of competition. They will also help iden-
tify various funding and prize options, in-
cluding insuring the top prize.
Live eventsGTECH can also develop and host Bejeweled
or Plants vs. Zombies live events, as well as
tournaments at shopping centers, festivals,
and iconic venues across your jurisdiction.
Leverage the popularity of this alluring and
fun brand! Bejeweled live events can al-
low those who purchase a Bejeweled instant
ticket to compete in a tournament or to en-
ter into on-site drawings for prizes such
as Bejeweled games for multiple platforms,
Bejewled is one of the top 10 best-selling games of all time. GTECH can offer your lottery a customized Bejeweled promotion unique to your jurisidiction.
WLA magazine | No. 40 | Spring 201450
CORPORATE NEWSCORPORATE NEWSCORPORATE NEWS
gift cards, lottery tickets, and merchandise.
GTECH can also develop and implement
Bejeweled tournaments at retail, using the re-
tailer’s advertising display screen and creating
site-specific leaderboards. Players compete in
tournaments for high-score bragging rights
and small merchandise prizes.
GTECH can also work with your lottery to:
-
tions.
next level with entertaining and stimulat-
ing augmented reality. When scanned, a
QR code on the ticket reveals an interactive
how-to-play component or a video showcas-
ing the game’s second chance promotion.
GTECH is also equipped to help you de-
velop relevant and entertaining social media
campaigns, such as:
game now available!” marketing messages
to your lottery’s fans.
customers using your lottery’s Facebook
and YouTube pages.
In this promotion, a Bejeweled gem appears
randomly on your Facebook page over a
60-day period. The first 20 likes each time
it appears win a lottery gift.
where followers with correct answers will
be randomly selected to receive merchan-
dise prizes.
GTECH is happy to incorporate any or all of
the above solutions to create a plan tailored
to your jurisdiction’s needs and budget. All
promotional components are modular and
can be selected or modified at the lottery’s
discretion. In addition, all of these ideas can
be adapted to apply to other of GTECH’s
li censed properties, including Plants vs.
Zombies.
Innovative games and inventive second
chance programs enable lotteries to develop
new consumer value propositions and make
lottery more relevant to Generation Y and
Mil len nials. Products such as Caesars,
Bejew eled, and Plants vs. Zombies provide a
unique opportunity to take a well-established
brand especially popular among young
adults and extend it to a lottery product of-
fering. (Fifty-four percent of Bejeweled Blitz
and 41% of Plants vs. Zombie players fall in-
to the 18–34 age group, while 32% of Caesars
guests are ages 21–40.) By extending these
programs across multiple channels, oppor-
tunities abound to interact with and engage
customers where they can be found today.
Plants vs. Zombies and Bejeweled are trade-
marks of Electronic Arts Inc.
GTECH can offer a complete end-to-end marketing package based on other popular licensed content, such as Plants vs. Zombies, that includes game development and design, game promotion, second chance draw management, and more.
LEARNINGCURVELEARNING CURVE
June 22–25, 2014Sports betting seminar: Samba do Brasil! Seminar in associa tion with CIBELAE and the European Lotteries – Fortaleza, Brazil
The WLA, CIBELAE, and the EL will be host-
ing a most exciting sports betting seminar in
Fortaleza, Brazil, right during the middle of the
2014 FIFA World Cup. Football will undoubt-
edly be the central topic of the seminar – espe-
cially in light of the dangers of match-fixing – but
the marketing of sports and sports wagering
will also receive prominent coverage. Reputed
speakers from within and beyond the lottery
industry will tackle a seasonable range of sports
betting-related topics, while our global suppli-
ers will be challenged to deliver state-of-the-
art products to ensure we stay on the ball.
Highlights of the seminar program include:
▶ Addressing the integrity of sports
▶ Regional market updates
▶ Combating fraud internationally: the move
from ELMS to a global monitoring system
▶ FIFA – “Organizing the World Cup”.
In addition, the WLA, CIBELAE, and the EL
have been able to secure a limited number of
tickets for the Group C World Cup qualifica-
tion match between Greece and the Ivory
Coast, to be held in Fortaleza on June 24!
Tickets are limited, so if you don’t want to
miss this unique opportunity of learning and
living sports, register for the seminar through
the WLA website today!
October 7–9, 2014Security and integrity seminar: Tackling threats for a safe and secure future! Seminar in association with the European Lotteries, hosted by Totalizator Sportowy Sp. z.o.o. – Gdánsk, Poland
Even with best-in-class security measures
already in place a lottery will always be at
risk and vulnerable to new threats. The es-
sence of good security is to remain watchful
and up-to-date in relation to the constantly
evolving world of security hazards. Predators
are relentlessly inventive … so too must lot-
tery security staff be in their responses.
This joint EL/WLA security and integrity
seminar in Gdánsk will provide WLA mem-
bers with the opportunity to get up-to-the-
minute information about the latest
developments in security and integrity from
experienced professionals, from both within
and outside the lottery sector. Highlights of
the seminar program include:
▶ WLA Security Control Standard
and certification
▶ Retailer fraud and counterfeit fraud
▶ IT and information security
▶ Business continuity and risk management
▶ Cybercrime related issues.
Ensure your lottery stays ahead of the pack in
tackling security threats by registering for the
joint EL/WLA security and integrity seminar
through the WLA website today!
Upcoming WLA seminars
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WLA magazine | No. 40 | Spring 201452
OUR CONTRIBUTORSOUR CONTRIBUTORSOUR CONTRIBUTORS
Many thanks to our GOLD Contributors
Many thanks to our PLATINUM Contributors
WLA MAGAZINE is published by:The World Lottery AssociationLange Gasse 20P.O. BoxCH-4002 Basel, Switzerlandwww.world-lotteries.org
Publication Director: Jean Jorgensen,WLA Executive DirectorEditor: Paul Peinado,WLA Communications CoordinatorContributing Editors: Matthew Spinks, Assistant Communications Coordinator; Patricia McQueen; and John Smellie.Print: Werner Druck & Medien AG, Basel, SwitzerlandLayout: 3satz GmbH, Thalwil, Switzerland
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