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 partners@jumbointeractive.com

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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

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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.

WLA magazine | No. 40 | Spring 2014 23

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

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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.”

WLA magazine | No. 40 | Spring 2014 27

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.

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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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