How do we tackle the shared issues facing the industry?

July 2014

Matt OsgoodSeptember 2014

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•Falling net revenue returns

•Declining participation

Industry wide problems

Digital features in all our lives The need for Access is approaching human right status

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Smartphones are accelerating this need

iLottery is a core tool to address our issues

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• However with single digit % of total revenues, many lotteries in Europe and North America have not seen the Lottery revenues from iLottery that they envisaged

• So how can we leverage iLottery to help address these industry wide issues?

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1. Change of lottery mind-set to that of being the retailer

2. Management of the Player lifecycle

3. Adoption of digital tech processes, tools & people

Camelot’s 3 core guiding iLottery principles

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1) Change of mind-set to that of a retailer

Actively drive digital connections

Flexible technology solutions

Test & learn - improve

One-to-One Player interaction

Anytime, Anywhere access

Optimize POE media

• Requires channel agnostic perspective, investing in accessibility and convenience

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2) Management of the Player life-cycle

• Display ads • SEO / PPC• Email• Affiliates• Partnerships• Social /Viral• Response/ROI

Analysis

ATTRACT

• Email• Search• Promotions• Usability• Merchandisin

g• Player

Support• Response/ROI

Analysis

CONVERTRETAIN

GROW• Targeted

Communication

• Personalisation

• Community• Loyalty• Campaign

Management• Site

Performance• Trigger

campaigns• Segmentation

• Data Analytics• Web Analytics• Predictive

Modelling• Campaign

Management• Response/ROI

Analysis• Usability• Real Time

Offers

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3) Adoption of digital tech, processes, tools and people

Key to achieving both the Mindset of a Retailer and the optimization of the Player Lifecycle is having the right

enablers: Processes / Tools / People

Analytics Campaign Management

Personalisation/Relevance

Building a forensic understanding of the player

Operational insight

Digital channels should enable quicker reaction to player insights

The Challenge lies in making these insights actionable

Challenges of technical legacy

• Understanding play motivations and sustaining regular play

• Game awareness and perceptions• Optimal win experiences• Individual games evaluation

and optimisation• Identifying and assessing the

real competitive set

Multi-channel Media ROI

In summary

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You have the toolkit

However to address falling penetration & net revenue returns it’s vital iLottery is executed effectively

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1. Adjust to a retailer mind-set

2. Actively optimize the player lifecycle

3. Enable both through adopting digital tools and experts

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Camelot can now offer our own iLottery platform to lotteries

Camelot’s iLottery platform – a $30 million investment• A brand new website, mobile site and tablet platform• New mobile centric, responsive site• Fresh, modern and easy to use digital experiences

Live from 1st Sept 2014:• IWGs ahead of the

comparable week by over $300k+, despite trading for almost 2 fewer days

• Over $1m of IWGs sold via mobile devices in Week 1

• Nearly 20K new player registrations – significantly ahead of the comparable week