No. 35 | Winter 2011 / 2012
Celebrating the best in Good Causes
The UK National Lottery holds the UK National Lottery Awards annually to find the United Kingdom’s
favorite lottery-funded projects, and to raise public awareness of lottery funding for Good Causes.
The winners of this year’s event were announced at a gala ceremony broadcast live on Saturday,
November 5, 2011. In this issue, we take a closer look at the Awards, the winners, and the beneficiaries.
A WORLD OF
POSSIBILITIES
Tap into the investment power of a global leader in the lottery and gaming industries
and gain access to a broad and rich portfolio of products and services designed to help
you optimize revenues.
Contents
5
Do something good
Letter from the President
6
Thinking on our industry I am
often reminded of the David
Nicholls book One Day, the
subject of a recent Hollywood
movie by the same name. For
those of you not familiar with
the book or the film, I will offer
you a brief explanation.
Association Business
The latest news from the WLA and its members with
additional reports from the regional associations.
10
Responsible Gaming
Deusto University of Spain wins the inaugural ONCE
international contest on responsible gaming research.
12
Security
How the risks of retailer fraud can be dealt with proactively and cost effectively through player protection
controls and retailer compliance monitoring. A report
from Thomas Bierbach, vice president of Baseline
Geographics Inc.
14 The UK National Lottery Awards
For the eighth consecutive year, the UK National
Lottery showcased, in a nationally-televised event, the
good causes supported by lottery funding.
18
Sports betting, Korean style
How SPORTSTOTO, in conjunction with the Korean
Sports Promotion Foundation, makes an enormous
contribution to the well-being of the people of Korea.
22
The growing popularity
of block games
Block games around the globe are increasing both in
size and number. We take a close look at some recent
developments in block games in Europe and America.
26
Product innovations of 2011
Both to maintain customer loyalty and to attract new
players, WLA member lotteries continue to stress
novelty and diversification in the development of new
products. Here, we showcase a selection of some of
the best product innovations of 2011.
30
Betting on the opera
Continuing our series on gambling in the arts, gaming
expert Göran Wessberg presents a study on operas
and musicals that have gambling as a leitmotif.
32
Corporate News
News from members of the WLA Contributors
Program and other WLA Associate Members.
44
The Learning Curve
One Day is a bittersweet love
story that spans 20 years. The main characters, Emma and Dexter, meet for the
first time on the night of their graduation from university, July 15, 1988, and
then go their separate ways. For the next 20 years, key moments of their relationship are experienced each July 15.
Emma is a working-class girl of principle and ambition who dreams of making the world a better place. Dexter is a wealthy charmer who becomes a successful television professional. His mother, resigning herself to his flamboyant
lifestyle, advises her son to “do something good” for the world.
Our industry, not unlike the individual paths chosen by Emma and Dexter, is
driven both by entertainment and the desire to make the world a better place
by contributing to good causes. It is important that we get that message across
to our stakeholders and that it is recognized as our most outstanding characteristic.
In this issue of the WLA magazine we cover two fine examples of how WLA
member lotteries communicate this important message to their stakeholders.
Each year the UK National Lottery holds a nationally televised awards ceremony. This event celebrates the UK National Lottery beneficiaries that serve good
causes by putting lottery funding to use in innovative ways. Second, we have a
report on SPORTSTOTO of Korea and their important contribution to sports.
A large proportion of their annual total sales goes to support everything from
grass roots sports to major national and international sporting events in the
Republic of Korea.
The WLA is proud to represent more than 140 lottery organizations that, just
like the UK National Lottery and Sportstoto of Korea, work hard each year to
make the world a better place. We will be showcasing other such WLA member organizations throughout the year in the WLA magazine, at various seminars, as well as at the World Lottery Summit 2012 (WLS 2012) that will be
held from September 9–12 in Montreal, Canada, in cooperation with NASPL.
Preparations for the WLS 2012 are moving full speed ahead and are on target,
as we have the good fortune of having Loto-Québec assisting us with the organization in Montreal. With a host of interesting speakers lined up, a worldclass venue, in one of the most alluring cities in North America, this promises
to be an amazing event. Stay tuned to the official WLS 2012 website for the latest developments (wls2012.com).
Wishing you a great start in the new year!
Reports from recent WLA seminars from
around the world and the tentative schedule
of events for 2012.
Jean Jorgensen, Executive Director, WLA
WLA magazine | No. 35 | Winter 2011 / 2012
3
World Lottery Summit
September 9 - 12, 2012
Preparations are now in full swing for this major event.
/ŶĂĮƌƐƚĨŽƌƚŚĞůŽƩĞƌLJŝŶĚƵƐƚƌLJ͕ƚŚĞt>ĂŶĚE^W>ǁŝůůũŽŝŶĨŽƌĐĞƐĨŽƌƚŚĞtŽƌůĚ>ŽƩĞƌLJ^ƵŵŵŝƚϮϬϭϮŝŶDŽŶƚƌĠĂů͕
ĂŶĂĚĂ͘dŚƌŽƵŐŚƚŚŝƐĐŽůůĂďŽƌĂƟŽŶ͕ǁĞĂŝŵƚŽĚĞůŝǀĞƌĂůŽƩĞƌLJĞǀĞŶƚŽĨƵŶƉĂƌĂůůĞůĞĚĚĞƉƚŚĂŶĚƋƵĂůŝƚLJƚŽƚŚĞŵĞŵďĞƌƐ
ĂŶĚĐŽŶƚƌŝďƵƚŽƌƐŽĨďŽƚŚĂƐƐŽĐŝĂƟŽŶƐ͘
dŚĞt>ĂŶĚE^W>͕ĂƐǁĞůůĂƐ>ŽƚŽͲYƵĠďĞĐ͕ŽƵƌŚŽƐƚĨŽƌƚŚŝƐĞǀĞŶƚ͕ůŽŽŬĨŽƌǁĂƌĚƚŽŐƌĞĞƟŶŐ
LJŽƵŝŶMontréal, Canada, September 9 – 12, 2012 ĨŽƌƚŚĞtŽƌůĚ>ŽƩĞƌLJ^Ƶŵŵŝƚ͘
www.wls2012.com
World Lottery Association
Headquarters
Lange Gasse 20
P.O. Box
CH-4002 Basel,
Switzerland
Phone: +41 61 284 1502
Fax: +41 61 284 1350
www.world-lotteries.org
World Lottery Association
0RQWUpDO2I¿FH
500 Sherbrooke Street
West
Suite 2000
Montréal, Québec H3A
3G6, Canada
Phone: +1 514 282 0273
Fax: +1 514 873 8999
North American
Association
of State and Provincial
Lotteries (NASPL)
One South Broadway
Geneva, Ohio 44041, USA
Phone: +1 440 466 5630
Fax: +1 440 466 5649
www.naspl.org
LETTER FROM
L E T T ETHE
R F R O M TPRESIDENT
HE PRESIDENT
United we stand!
The end of one year and the beginning of
the next always represents an enchanting
watershed moment for me. It is a time when
one can simultaneously look back on the
past year in joyful reminiscence and look
forward to the new year with ambition and
positive anticipation. Looking back at 2011
what I find most remarkable are the many opportunities that I was given to meet
with my friends and colleagues around the
globe. Such moments are most valuable in
strengthening existing bonds and forming
new partnerships, partnerships that are important in our continuous effort to support
good causes in the societies within which
each of our member lotteries work.
I was graciously welcomed this year in
Penang, Malaysia, for the APLA Regional
Conference; in Rio de Janeiro, Brazil, for the
CIBELAE Convention; and in Indianapolis,
Indiana, USA, for NASPL 2011. As CEO of
Veikkaus, I also played host to the EL 2011
Congress, in Helsinki, Finland. These independent regional associations are major pillars upholding the world lottery community
and the WLA highly values its cooperation
with each of them.
Starting off this year’s round of conventions,
was “Northern Light”, EL 2011 in my hometown of Helsinki, Finland. Over 600 delegates from Europe and other parts of the
world came together to make the convention
an absolute success. Many thanks once again
to the EL staff and to my team at Veikkaus
for their hard work and the splendid organization of this event.
The 13th CIBELAE Congress in sunny Rio
de Janeiro followed, from October 3–6.
Caixa Econômica Federal of Brazil did a
wonderful job of organizing and hosting
what is considered the landmark event for
Latin America. The theme “Building the
Future” was promulgated through the entire convention. While at the CIBELAE
Convention in Rio it became clear to me
that, no matter where I am, our mission and
our vision remains the same. Industry wide,
WLA magazine | No. 35 | Winter 2012 / 2011
in all parts of the world, we are moving in
the same direction, building the future of
our industry by taking advantage of new
technology and trends, protecting our players, and turning a profit for good causes.
At the convention, Mr. Fabio Cleto, VicePresident of Government and Lottery Funds
at Caixa Econômica Federal, was elected
president by the members of CIBELAE. I
wish to congratulate Mr. Cleto and look forward to working with him in the future.
Just one week later, from October 10–13,
I was in Penang, Malaysia, for the APLA
Regional Conference. Themes relevant to
our industry were covered, such as the use of
social media, and responsible gaming. It was
also encouraging to learn how many lotteries around the world are doing their part to
protect the environment. Mr. Lawrence Lim
Swee Lin, CEO of the Magnum Corporation,
Malaysia, and his staff did a fantastic job in
organizing and hosting the convention, and
I wish to thank and congratulate them on
the success of this event. Many thanks are also due to APLA Chairman June Roache and
her team for their part in making this one of
the memorable events of 2011.
From October 25–28 we were back in the
western hemisphere for NASPL 2011. We
were asked to “Expect the Unexpected”,
but as expected the NASPL team and the
Hoosier Lottery of Indiana put together a
top-notch event. Themes on retailer excellence and leveraging new technology, combined with a host of renowned keynote
speakers, provided for a well-rounded business program. I had the pleasure of meeting
and conferring with NASPL president-elect
Mr. Gordon Medenica, Director of the New
York Lottery. I am looking forward to working with Mr. Medenica in 2012.
All these events illustrate the spirit of cooperation that permeates the WLA. Together
with the regional associations we will maintain our focus on our vision and mission to
raise money for good causes in a socially
responsible way. In 2011 we extended our
social responsibility mission by reaching out
to other organizations in an effort to fight
the scourge of match fixing. This problem
not only destroys the integrity of sports, but
also attacks both the heart of our key business sector of sports betting and the reputation of the entire gaming industry. There
are also more than just business issues at
stake here. Funds raised by WLA members
internationally, for grass-roots sports, youth
athletic programs, and the promotion of
healthy competition, are being threatened
by organized criminal groups. For this reason the WLA will continue its close cooperation with the International Olympic
Committee (IOC). We are also committed to
maintaining our alliance with SportAccord
and AIPS (the International Association of
the Sport Press). SportAccord represents all
international sports federations and organizations – both Olympic and non-Olympic,
while AIPS maintains the leading global network of sports journalists. Through
our unity with these organizations we will
strengthen our resolve to counter match
fixing, maintain the integrity of sports, and
protect our beneficiaries around the globe.
With our sights on Montreal we are now
looking forward to the World Lottery
Summit 2012. The WLA staff in accord
with NASPL are now busy putting together
what promises to be a world-class event.
Throughout the year many gaming events
are organized by the private gambling industry. I take great pride in the fact that only the
WLA and the regional associations organize
events that support our true mission of raising funds for good causes. I encourage you
to get out your agendas, reserve the dates
September 9–12, 2012, and make plans now
to join us in Montreal for the World Lottery
Summit 2012.
Sincerely
Risto Nieminen
WLA President
5
ASSOCIATION
A S S O C I AT I O N B U SBUSINESS
INESS
Gaming Laboratories International creates
dedicated global lottery consulting group
Gaming Laboratories International (GLI),
LLC, the world’s leading gaming testing
laboratory and technical consultancy, announced today that it has formed a new
dedicated global lottery consulting group.
The new group will consult with lottery organizations globally on issues relating to
the audit and security of all of their lottery products, including VLTs, their on-line
games, iGaming, scratch tickets and conformance with International Organization for
Standardization (ISO) and World Lottery
Association (WLA) standards.
The new group will be based in Moncton,
New Brunswick, Canada, and will be
headed by GLI Canada’s new Director of
Lottery Services, Gregory Doucette, and
Mr. Doucette’s long-time business partner,
Daniel Charlong.
Formerly of Tyrne Enterprises, Inc. and
the Atlantic Lottery Corporation (ALC),
Mr. Doucette is a WLA Security Control
Standard (WLA SCS) and ISO 27001 certified auditor. His auditing skills and experience are enhanced by his previous career
experience as a director of security and
compliance, and manager of internal audit,
for the ALC. Over the past 20 years, he has
developed a broad range of experience in
public and private industry. He recently successfully collaborated with GLI on a security
audit completed for a major US lottery.
Trained and certified in project
management, and
a trained and certified ISO 27001
trainer, auditor,
and implementer,
Mr. Charlong has
more than 25 years
of experience in
Gregory Doucette
both the private
and public sector.
His various roles include public policy
analysis, organizational change management
and compliance, audit, financial management and analysis, compliance and standards regulations, and business operations
and management. Currently, Mr. Charlong
specializes in developing custom training
programs for organizations pursuing ISO
certification and in facilitating publically
offered courses.
For more than 20 years, GLI has been the world
leader in providing independent testing, inspection and certification services to the
gaming, wagering and lottery industry. Today
the company tests for more than 65 lotteries
around the world, most of them exclusively,
which is more than any other testing organization globally. GLI is an associate member
of the European Lottery Association (EL),
the North American State and Provincial
Lotteries (NASPL), and the World Lottery
Association (WLA).
The new GLI group will be dedicated to expanding the company’s association with lottery organizations globally. Mr. Doucette
and Mr. Charlong will coordinate GLI’s lottery consultation services globally, working
with specialized GLI lottery team members
throughout GLI’s global network of 19 facilities. Together the team will provide lottery
regulators and operators full-service lottery
support in the expanding lottery market.
Fabio Cleto appointed President of CIBELAE
Fabio Ferreira Cleto, currently Vice President
of government funds and lotteries at Caixa
Econômica Federal, Brazil, (CAIXA), was
elected President of Corporación Iberoamericana de Loterías y Apuestas del Estado
(CIBELAE) at the XIII Congresso CIBELAE
held in Rio de Janeiro, October 2–7, 2011.
He replaced Roberto Armando López of
Lotería Nacional Sociedad del Estado,
Argentina, as CIBELAE President.
Mr. Cleto, 39, earned his degree in business administration from Fundacao Getulio
Vargas and his master’s degree in mathematical modeling from FEA/EMI, Universidade
de São Paulo. He began his career as an
equity analyst at several banks, including
Banco ABC Roma, Nacional Multiplic, and
Dresdner Bank. From 2002 to 2009, he
was head trader of national currency at
6
Banco Itaú’s proprietary desk, where his responsibilities included management of the
derivatives portfolio, the private securities
portfolio, the securitized papers portfolio,
together with management of government
securities. Prior to joining the senior executive at CAIXA, he was the foreign investors fund’s CEO at Aquitaine Investments
LLC. As CEO he had overall responsibility
for fund management, currency arbitrage,
variable income portfolio management, and
fixed income portfolio management (Brazil).
On his election to the presidency of
CIBELAE, Mr. Cleto issued a statement outlining his future objectives for the organization. After thanking his predecessor and
the members of CIBELAE, Mr. Cleto said in
part that, as President of CIBELAE, he will
work to ensure CIBELAE effectively repre-
sents the interests of state lotteries both in
Ibero-America and around the world. He
further said that, as President of CIBELAE,
his period of governance will be founded
upon three pillars, namely: (a) the implementation of a strategic plan for the period
2012–2013 that accommodates recent developments in global lottery markets; (b)
a review of the statutes and rules governing CIBELAE, to
account for issues
that will enhance
the association’s
performance; and
(c) a review and
revamp of the
CIBELAE website
to harness the full
potential of the
Fabio Ferreira Cleto
Internet.
WLA magazine | No. 35 | Winter 2011 / 2012
ASSOCIATION
A S S O C I AT I O N B U SBUSINESS
INESS
Gordon Medenica appointed President of NASPL
The director of the New York Lottery, Gordon
Medenica, was elected President of the
North American State and Provincial Lottery
Association (NASPL) for a one-year term
at the 2011 NASPL Convention and Trade
Show held in Indianapolis, Indiana,
October 24–28,
2011. He replaced
the director of
the Idaho Lottery,
Jeff Anderson, as
NASPL President.
Gordon Medenica
The New York Lottery is the largest
and most profitable state lottery in the US.
As director of the New York Lottery, Gordon
Medenica serves as the chief executive officer of an organization with revenues of
US$7.9 billion. Under his leadership, the
New York Lottery has set new revenue records every year since his appointment in
2007. In particular, the lottery has generated a record US$3 billion over the past
year for its mission of funding education in
New York State.
Gordon Medenica earned his A.B. from
Harvard College, where he majored in government, and his M.B.A. from Harvard
Business School. Prior to coming to the
New York Lottery, Mr. Medenica was executive vice President of Philadelphia Media
Holdings, LLC, an owner of the Philadelphia Inquirer and Daily News newspapers.
Before this, he was a longtime executive at
The New York Times Company, serving as
a member of its management committee,
as head of strategic planning, corporate
communications, and as group publisher of
several of the company’s sports magazines.
Mr. Medenica has also acted as an independent advisor to the Blackstone Group on
newspaper acquisitions; as President and
CEO of sports marketing company Dorna
USA, LLC; and as a senior analyst at the
Marriott Corporation.
Santa Casa appoints new board members
On September 15, 2011 the Portuguese
Government appointed new members to
the board of Santa Casa da Misericórdia de
Lisboa, Portugal. Santa Casa is the company
that runs the state lottery games in Portugal,
in addition to numerous other business areas providing for good causes.
Secretary of State for Culture; Assistant State
Secretary to the Prime Minister; and Deputy
to both the Portuguese National Assembly
and the European Parliament. In addition,
he has been President of Sporting Clube de
Portugal, one of the best-known Portuguese
football clubs.
The President of Santa Casa is now Mr.
Pedro Santana Lopes. A respected lawyer,
Mr. Santana Lopes has extensive experience in National and Local Government
service. Of his many positions his term as
Prime Minister of Portugal between 2004
and 2005 is most pertinent. During his vast
career in public service, he has also been:
Mayor of Lisbon; Mayor of Figueira da Foz;
The Vice President of Santa Casa is now
Mr. Fernando Paes Afonso. He will be in
charge of the gaming business area, commercially designated as Jogos Santa Casa.
An economist, Mr. Paes Afonso has past experience of the lottery business as a board
member of Santa Casa and President of
Jogos Santa Casa between 2002 and 2005.
He has also worked previously in the busi-
ness areas of financial services and public
construction. Prior to taking up his appointment at Santa Casa, he was General Manager
of AECOPS, the Portuguese Association of
Public Construction Companies.
Pedro
Santana Lopes
Fernando
Paes Afonso
Loto-Québec appoints new President and CEO
On November 7, 2011, Mr. Gérard Bibeau
succeeded Mr. Alain Cousineau as President
and Chief Executive Officer of Loto-Québec.
A career civil servant, Mr. Bibeau, 51, hails
from the Sorel region of southwestern
Québec. After graduating with a Bachelor
of Administration from Université Laval in
1983, he served as Chief of Staff at the Office
of Québec’s Ministre du Revenu (ministry of revenue) from 1988–1991. In 1990
he obtained a Bachelor of Law, also from
Université Laval, and was admitted as a member of the Québec Bar Association in 1992.
From 1992–2006 he served in various senior
posts in the Québec civil service, including a
WLA magazine | No. 35 | Winter 2011 / 2012
decade (1993–2003) spent as Vice President,
Operations of the Office of the Prime
Minister of Québec, and two years (2004–
2006) as member, CEO, and Chairman of the
Board of Directors
of the 4,000-employee Commission de la santé et
de la sécurité du
travail (Québec’s
workmen’s compensation commission). From 2006
to 2011, he was
Gérard Bibeau
Secretary General
and Clerk of the Executive Council of the
Ministère du Conseil exécutif (Québec’s executive council office), which is the highest
position in the Québec civil service. Paying
tribute to Mr. Bibeau’s five years of service
in the position of chief administrative officer, Quebec Premier Jean Charest said,
“Mr. Bibeau has played a key role in the
development of multiple steps that have allowed Quebec to survive the economic crisis better than its neighbors.” In particular
recognition of his wealth of administrative
experience and sound financial management,
Mr. Bibeau’s appointment has been warmly
welcomed by Loto-Québec.
7
ASSOCIATION
A S S O C I AT I O N B U SBUSINESS
INESS
The Asia Pacific Lottery Association (APLA)
2011 Regional Conference
The picturesque Shangri La Resort in Penang, Malaysia was the setting for the 2011 APLA Regional
Conference. From October 10–13 the Magnum Corporation of Malaysia graciously hosted this
event, which drew more than 120 international delegates. Themes central to this year’s conference
covered the integration of social media, responsible gaming, and the promotion of green initiatives.
APLA is known for their innovative conference concepts and this regional conference was no exception. Daily debates on
key lottery themes such as, ‘Lotteries can afford to ignore social media’ and ‘Customers
care about lottery organizations giving to
good causes’, provided for entertaining and
thought provoking discussion. This year,
different lotteries presented their best practice case studies, which provided insights
into the diversity and innovation that exists
across the Asia Pacific region and beyond.
Keynote speaker Mr. Kevin Flood, CEO of
Gameinlane, Inc., presented a compelling insight into the evolution of the social web and
online gaming and the opportunities for the
lottery industry. Mr. Flood spoke about the
past, present, and future of social media and
gaming. He challenged the conference dele-
1
gates by asserting that their competitors across
the gambling sector are engaging in this
space. In online gaming the line of distinction
no longer resides with industries, but rather
with the experience of the player. Kevin’s
summary of the conference can be found on
his blog at kevinflood.blogspot.com.
Social media was again in the spotlight as
Mr. Oon Yeoh, Malaysian writer, editor,
and new media consultant, presented an
insightful session entitled ‘The Good, The
Bad, and The Ugly of Social Media’. Mr. Yeoh
examined a number of major brands that
experienced the ‘downside’ of social media.
Ultimately, however, he did not discourage
the use of social media. Rather, he called for
the carefully considered and thoughtfully
planned use of social media and the willingness to engage your customers in a new way.
3
Other sessions, rounding out the first day of
the conference, explored retail and franchisee management; challenged lotteries to stay
competitive in a monopolistic environment;
and shared further insights into the implementation of social media plans.
Ms. Rikke Netterstrom, Executive Director
of CSR Asia, opened the second day of the
conference with a perceptive presentation
on leadership in Corporate Social Responsibility (CSR), stakeholder engagement, and
communication. Ms. Netterstrom prepared
an interesting scanning exercise of lotteries in
the Asia Pacific region that demonstrated, in
their online environment, a strong commitment to CSR. In particular, she focused on
responsible gaming, reinforcing the WLA’s
Responsible Gaming Framework as part of
an organizational approach to CSR.
4
2
1 Delegates came in their sarongs and pareos. 2 The welcome dinner at the Cheong Fatt Tze Mansion, a UNESCO Heritage Site.
3 Lawrence Lim Swee Lin, CEO of Magnum Corporation, Malaysia welcomes the seminar participants. 4 Dr. Jasmine Loo, speaks
on gambling addiction.
8
WLA magazine | No. 35 | Winter 2011 / 2012
ASSOCIATION
A S S O C I AT I O N B U SBUSINESS
INESS
Green initiatives, and what lotteries are doing for the environment, were discussed by
a panel of representatives from South Australian Lotteries, the Hong Kong Jockey
Club, and – with regards to their Takarakuji Lottery 1 – the Japan Lottery Association. It was encouraging to learn how
seriously these lotteries take their responsibilities toward the environment.The panel
presented some remarkable environmental initiatives, including the use of vegetable inks in ticket printing, the move
toward paperless transactions, the conscientious use of energy, and the principled use
of transportation.
Industry suppliers took center stage in the
afternoon of the second day, sharing their
new innovations and product offerings in the
social media space. GTECH, INTRALOT,
Pollard Banknote, and Scientific Games all
provided valued sponsorship for the APLA
Regional Conference.
The final day of the conference welcomed
Mr. Tim Healy, faculty member from the
US-based Institute for Operational Excel-
lence. The Institute for Operational Excellence is a think-tank for organizations
seeking to maintain a path of continuous improvement and sustainable business
growth. Mr. Healey ran the morning session as a workshop, examining efficiencies
in supply chain management and operations
liaison. He challenged the delegates to analyze and streamline their own business processes in order to achieve improved results.
The morning session was followed by a
panel discussion, which included representatives of the European State Lottery
and Toto Association (EL) and Singapore
Pools. Mr. Joni Hovi, Vice President,
International Business, Veikkaus Solutions
Oy, presented the EL’s “Young Lions”, a
program that aims to promote aspiring
young professionals in the lottery industry. Ms. Marilyn Ling, Chief Marketing
Officer of Singapore Pools, presented
their new initiative, I-CUBE (I3) – Ideas,
Innovation, and Improvement. The panel
discussion provided food for thought on
how to tackle the future challenges facing
the lottery industry.
The island paradise of Penang provided a
wonderful backdrop for a range of much enjoyed social programs. The opening night dinner was a highlight of the conference, with a
police escort to The Unesco World Heritagelisted Cheong Fatt Tze Mansion in central Georgetown, Penang. The tour featured
cultural performances, crafts people, and a
historical introduction to the mansion and
its impressive history. Local musicians entertained guests who enjoyed a culinary feast.
The location of the Shangri La Resort on one
of Penang’s most pristine beaches provided a
fantastic location for the closing night sarong
party. Each delegate dressed in traditional costume and enjoyed hawker hut food stations
and some very daring party games! Karaoke
and dancing ensued until the early hours,
with a wonderful evening being had by all.
A final vote of thanks goes to Magnum Corporation for a memorable experience and an
extremely well organized regional conference.
Many thanks are also extended to Singapore
Pools for the support they provided in the
development of the business program.
1 For a full report on the Japan Lottery Association and the Takara-kuji lottery please refer to “Jumbo Takara-kuji Lotteries: Evolution of lotteries in Japan”,
WLA magazine number 30, summer 2009.
5
7
6
5 Henry Chan, Executive Director, HKJC Lotteries Limited and Lawrence Lim, CEO Magnum Corporation. 6 WLA President
Risto Nieminen and Advantgames CEO Riko Soininen. 7 Part of the APLA Executive Committee attend the Closing Dinner
in their sarongs.
WLA magazine | No. 35 | Winter 2011 / 2012
9
INSIGHT
I N S I G HINSIGHT
T
Deusto University team wins
first ONCE international contest
on responsible gaming research
Recently, the Organización Nacional de Ciegos Españoles (ONCE) held the inaugural ONCE
International Contest on Responsible Gaming Research. The competition winners, a team
of scientists from Deusto University, Spain, will conduct a two year research project on factors
that stimulate the risk of problem gambling in adolescents.
The ONCE International Contest on Responsible Gaming Research promotes and
supports research into the identification of
problem gambling risk factors inherent in
gaming products, and to minimize unwanted gaming effects in other areas. The competition, which is held biennially, carries a
single prize of 30,000 euro.
Submission of entries for the inaugural competition opened March 14, 2011, and closed
June 30, 2011. The submitted projects were
assessed by a tribunal of outstanding experts
and distinguished professionals chaired by
ONCE Gaming Deputy Director General,
Luis Natalio Royo Paz. The other members
of the jury were Etelvina Andréu Sánchez,
general director of consumer affairs in the
Spanish Ministry of Health, Social Policy
and Equality; Arturo Canalda, the ombudsman for children of the Community
of Madrid; Francisco J. Labrador, professor of behavior modification in the School
of Psychology, University Complutense of
Madrid; Elisardo Becoña, professor of clinical psychology in the School of Psychology,
University of Santiago de Compostela; and
Enrique Echeburúa, professor of clinical
psychology of the School of Psychology,
University of País Vasco. Antonio Mayor
Villa, director of ONCE’s Communication
and Image Department, acted as secretary
to the jury.
Works submitted to the competition were
judged on their quality, the technical and
economic feasibility of each project, and
the merits of the individual researchers or
groups of researchers involved. The winning entry impressed the jury with its strong
scientific basis, its broad overall perspective, and the extensive bibliography underpinning the intended project. The jury also
stressed the rigorous methodology by which
the winning team proposed to accomplish
the project work.
The winning entry
The winning project, submitted by Dr. Ana
Estévez, Sra. Iszaskun Sarabia, and Sr. David
Herrero, all of Deusto University, Spain, is
entitled “Factors that stimulate gambling
risk factors in teens and youth.” As the project title suggests, the aim of the study is to
identify risk factors that lead adolescents
and young people into problem gambling.
Here, problem gambling is understood as
About the winning research team
The winning research team comprises
Dr. Ana Estévez, Sra. Izaskun Sarabia,
and Sr. David Herrero, all of the Faculty
of Psychology and Education at the
University of Deusto.
Dr. Ana Estevez is Associate Professor in
the Faculty of Psychology and Education.
The author of three scholarly monographs,
five book chapters, and twenty-one scientific papers in internationally peer-reviewed
journals, Dr. Estévez
is an expert on gambling, violence, and
emotional disorders.
Her previous externally
funded research proj-
10
ects on the psychology of young adults
include a three-year study into the development of depression in adolescents,
funded by the Spanish Ministry of Science
and Technology, and a three-year study of
violent behavior in adolescents, funded by
the Basque Government Department of
Drug Addiction.
Izaskun Sarabia is a Ph.D. student working under the direction of Dr. Estévez on
a thesis on gambling
among youth and adolescents. Holding an
M.Sc. focusing on drug
dependencies,
she
is a researcher at the
Deusto Institute of Drug Dependencies
and is the author of nine peer-reviewed
scientific papers in national and international journals.
David Herrero is finalizing his Ph.D. on
human factors in the commission of traffic accidents and violations under the direction of Dr. José Cáceres, Professor of
Psychophysiology in the Department of
Psychology at Deusto
University. The author
of seven peer-reviewed
scientific papers, he is
also a commentator on
road safety issues and
related subjects for the
Spanish press.
WLA magazine | No. 35 | Winter 2011 / 2012
INSIGHT
I N S I G HINSIGHT
T
persistent, recurring, and uncontrolled gambling having severe repercussions on personal, family, and professional life.
Existing research shows that in recent years,
there has been a surprising decrease in the
age of people addicted to gambling. In particular, data from Spain indicates that the
prevalence of problem gambling among adolescents and young adults is over 2%. This
is troubling for many reasons. For example,
t 1SPCMFNHBNCMJOHBNPOHBEPMFTDFOUTIBT
been associated with a wide range of mental
problems, including high levels of depression, greater risk of alcohol and substance
abuse, risk of suicidal thoughts and behavior,
high anxiety levels, and poor overall health.
t :PVOHBEVMUTBEEJDUFEUPHBNCMJOHSVOB
greater risk of committing crimes and suffer from more family problems and poorer
scholastic performance than adolescents
who are not addicted to gambling.
t "EPMFTDFODF JT B QFSJPE PG EFWFMPQNFOU
during which people may be especially
vulnerable, and so the effects of problem
gambling on adolescents may be correspondingly more severe than for adults.
t #FDBVTFBEVMUQSPCMFNHBNCMFSTUZQJDBMMZ
begin gambling during their adolescence
and youth, adolescent problem gambling
sets the stage for lifelong pathological behavior.
Although the consequences of problem
gambling early in life are potentially devastating, there are few extant studies on problem gambling in young adults. The handful
of studies that do exist show that the origins
of problem gambling in the young are complicated, and further, that early contact with
gambling is only one of many complex and
interrelated factors that determine whether
an adolescent develops a gambling problem. Other relevant factors include low selfesteem, symptoms of depression, high levels
of dissociation, lack of social support, and
having little connection with family. Further
relevant factors are delinquency, dysfunctional family relationships, low scholastic
performance, and beginning to gamble from
an early age (from the age of ten onwards).
It transpires in particular that there are
hardly any studies that examine other factors inherent in gambling or the relationship
between the type of adolescent and the likelihood of becoming addicted to gambling.
The winning project aims to fill this gap in
the relevant scientific literature. In a novel
approach to the study of problem gambling
in adolescents, the winning research team
will conduct a psychophysiological study
of the effect of gambling on young people
and adolescents. Qualitative methods in the
form of discourse analysis – a research technique that seeks to provide an awareness
of the hidden motivations in people and in
this way to enable the solution of concrete
problems – will be used to investigate the
“how” and “why” of the target group’s decision making processes. This aspect of the
study will enable the research team to learn
more about the addictive effects that certain
games have on the target group.
Having analyzed the psychophysiological
responses of adolescents and young adults
to gambling, the study will be completed by
an analysis of the target group to determine
the intrinsic variables that cause adolescents
and young adults to be more likely to play
certain games. This aspect of the study will
focus on some of the primary animating factors, owing to the presence of many existing
variables.
Research Outcomes
The completed study may result in the identification of risk factors inherent in games
that may lead to their addictive consumption by adolescents, and a greater knowledge
of the pyschophysiological factors inherent
in problem gaming in young adults. In addition, the completed study could help clarify
young people’s perception of gambling, and
assist in determining some of the personal
variables that lead adolescents into problem
gaming.
In terms of practical outcomes, the results of
the study, which are to be published in a series
of scientific papers, may contribute to making
prevention of problem gambling among adolescents more effective. The WLA may report
on the outcome of the study in due course.
About the University of Deusto
The University of Deusto is a Jesuit
University located in the Basque Country,
Spain. Established in 1886 by the local
Basque community and the Society of
Jesus, the university offers degrees in
Law, Theology, Engineering, Economics
and Business Administration, Psychology
WLA magazine | No. 35 | Winter 2011 / 2012
and Education Sciences, and Social and
Human Sciences. Numerous advanced
degrees, such as Masters and Ph.D.
programs, are also available. Currently,
the university has over 10,000 students
spread across two campuses in Bilbao and
San Sebastián.
The university is internationally recognized for the quality of its programs in
law and business. In particular, its school
of business is the oldest and one of the
most prestigious in Spain. Emilio Botín,
Executive Chairman of Spain’s Grupo
Santander, one of the largest banks in the
world by market capitalization, is a graduate of the law and business schools of the
university. Other notable alumni include
José Antonio Aguirre y Lecube (1904–
1960), the first president of the Basque
Autonomous Community, and the novelist Espido Freire, winner of the Premio
Planeta de Novela 1999 (the second-most
valuable literary award in the world after
the Nobel Prize for literature).
11
SETTING
S E T T I NSTANDARDS
G S TA N DA R D S
Of Icebergs and Lotteries:
Retailer fraud, the invisible threat
The threat of retailer fraud is not to be underestimated. It can severely disrupt your lottery
operation and damage its reputation for a considerable time. Thomas Bierbach, Vice President
of Baseline Business Geographics Inc., explains how retailer-fraud risks can be dealt with proactively and cost effectively through player protection controls and retailer compliance monitoring. Baseline’s end-to-end compliance management solution, Baseline Compliance Manager,
facilitates retailer compliance monitoring and integrity testing programs, thereby ensuring
a lottery operation’s reputation.
Were icebergs bad for the Titanic? We all
know the answer to this rhetorical question.
But really, what are the odds of hitting an
iceberg? They are very small, are they not?
You may be wondering where I am going
with this, but please indulge me — it is a
simple example of a risk management exercise. Say you are sailing along in your ship,
the HMS Lottery, and you think you have
everything well under control. Sales are
good, new products abound, technology
works, players and shareholders are happy,
you are staying out of the news, and then —
the unthinkable happens. You run into an
iceberg and it rattles your vessel from bow
to stern.
Retailer fraud
Retailer fraud is a crime of opportunity.
The temptation for a lottery retailer or staff
member to defraud unsuspecting players of
their winnings has been around for as long
as the retail channel has been part of the lottery business model. The risk of tickets getting swapped, palmed, or switched varies,
depending on the lottery terminal equipment and validation procedures in use —
but it is there nonetheless.
We have learned from such occurrences that
the likelihood and impact of retailer fraud
can easily be underestimated. Lotteries are
often not fully aware of the real threats and
the associated risks posed by retailer fraud
until a major incident occurs. In the event
of a retailer fraud incident, it becomes less a
matter of the monetary impact on the lottery
than a matter of the reputational damage to
the lottery and its retailer base, and the ensuing adverse consequences thereof.
Your passengers, the public, stakeholders
and media alike, start to question your
seaworthiness. Your organization is taking a tremendous blow to its reputation.
Everybody wonders, how could this happen? If you are lucky enough to keep the
ship afloat — as well as your career — and
continue the cruise, you will be asked what
you are going to do to prevent this from happening again. Do you have all the answers?
Not many have.
This parable serves well to illustrate a particular risk that virtually all lotteries face, a
risk that is profoundly underestimated both
in its likelihood of occurrence and in its detrimental impact. That risk is retailer fraud.
Of course instead of seaworthiness, it is primarily the reputation and the integrity of the
lottery operation that are at stake.
12
damaged and their integrity challenged.
Player confidence was shaken, jobs were
lost, and millions were spent in correcting
operational shortcomings. The haste with
which the issue at hand was addressed and
the after-the-fact overreaction to risks that
could have been proactively mitigated in the
first place, further aggravated the situation.
But, like the awareness of a leaky roof and
the urge to fix it, both are diminished while
the sun is shining.
Thomas Bierbach,
Vice President, Business Development,
Baseline Business Geographics Inc.
Just a few years ago, a number of lotteries
in Canada experienced the unwanted attention an incident of fraud can draw. Lotteries
across the country had their reputations
Past incidents have proven that recovery
from reputational damage and the resulting decline in player and stakeholder trust
is not only costly, but takes significant time.
Licensed operators of a state lottery have
even more at stake than other governmentrun lotteries, as license renewal is crucial to
their continued success in executing growth
strategies in other markets. Lotteries are not
just lotteries anymore. Changes in the industry have driven many organizations to
expand their horizons and growth strategies beyond their core business areas and to
venture outside their jurisdictions. Striving
WLA magazine | No. 35 | Winter 2011 / 2012
SETTING
S E T T I NSTANDARDS
G S TA N DA R D S
to be a world-class contender and maintaining a competitive edge are essential in this
changing environment. Shortcomings in operational excellence will be harmful to those
competing in bids for licenses and contracts.
In seeking to understand and manage retailer security risks, lotteries can profit from
the experiences of lotteries from other jurisdictions. Such practical knowledge can help
a lottery organization address retailer fraud
risks proactively and cost effectively, which
is preferable to an after-the-fact reaction to
a retailer fraud incident.
Lottery regulators, stakeholders, and the
public are looking for demonstrated integrity, compliance, and player protection from
fraud in lottery retail operations. Lottery
shareholders and business management are
looking for a return on the security investment and operational efficiency. The lottery security and compliance function has
to ensure security, integrity, and regulatory
compliance in balance and alignment with
business objectives. Although many lotteries
are implementing retail compliance testing
and mystery shopper programs, the ability
for them to compile data on the efficacy of
such programs remains a challenge.
A specific issue in the area of retailer security and player protection is the significant
lack of control players have when validating their tickets. Players must often rely
on the integrity of the retailer for accurate
validation results. Without proactive retailer
compliance monitoring and testing a lottery cannot keep track of retailer fraud occurrences and must therefore refer to player
complaints and allegations. To preserve reputational equity, lotteries need to be aware of
the actual occurrences of retailer fraud, the
associated risk levels involved, the likelihood
of fraud being perpetrated, and the impact
it may have on their organization.
A broad variety of player protection measures are available to lotteries, from simple
controls around the validation procedure to
high technology solutions, such as ticket selfcheckers or player card systems. The effectiveness and viability of any of these measures
largely depend on the regulatory and legal
requirements within a lottery’s jurisdiction,
and the size of the lottery’s retailer network.
During my time as Director of Security and
Compliance at Atlantic Lottery of Canada,
WLA magazine | No. 35 | Winter 2011 / 2012
a retailer fraud incident caused significant
disruption to the organization’s operations.
Through this experience, I learned that a
balance of player protection controls around
the validation process at the retail site was
most cost effective and efficient. Putting emphasis on the control the player has over the
ticket validation procedure has been more
effective than the broad implementation of
technology. The most significant learning
outcome, however, was that regardless of how
many controls are in place, only continuous
monitoring, testing, and enforcement provide measures as to the effectiveness of the
controls and compliance requirements. The
old adage, “what cannot be measured cannot be managed”, is especially relevant here.
This lesson acted as a catalyst for Baseline
Business Geographics to develop an automated compliance monitoring solution. They
created a solution that couples Geographic
Information Systems (GIS) and Global Positioning Systems (GPS) with mobile device technology. This allows for a cohesive
workflow approach for retailer compliance
inspection and testing, whereby inspectors
can interact with retailers. Atlantic Lottery
served as a pilot project for the Baseline
Business Geographics solution.
Working with lottery operators and regulators, Baseline Business Geographics has
gained considerable lottery experience in
security and risk management. They provide support in the management of retailer
security risks and conduct retailer security assessments, implementing effective and
balanced controls while optimizing compliance and inspection management solutions.
Baseline Compliance Manager
Baseline’s core solution, Baseline Compliance Manager, is a risk-based, automated
management program designed to meet the
regulatory and policy requirements of compliance monitoring in a lottery’s distributed retailer network. Baseline Compliance
Manager renders operational efficiency and
delivers result-oriented metrics. It comprises an end-to-end management system that
enables lotteries to demonstrably improve
retailer compliance and integrity testing
programs. This ensures that corporate policy and procedures as well as jurisdictional
regulations are met. Baseline Compliance
Manager also provides optimization for lotteries with existing compliance programs.
Alternatively, it can serve as a framework for
operators that are in the process of establishing a compliance program.
On the front end, Baseline Compliance
Manager offers electronic forms on GISand GPS-enabled mobile devices, to facilitate data capture during field inspection and
testing. Mobile devices, such as tablets, have
a real time data link to a compliance back
end database. On the back end, Baseline
Compliance Manager supports workflow
planning, inspection result analysis, and
provides for immediate trending and performance reporting, as well as a progressive
disciplinary follow up.
In a distributed retailer and site network,
Baseline Compliance Manager creates enterprise value through operational excellence
by optimizing and automating a lottery’s
security and compliance monitoring and
inspection processes. It provides your organization with the operational measures and
effective monitoring necessary to counter
the retailer security risks common in most
lottery operations.
By Thomas Bierbach CISM, CISA
Vice President, Business Development
Baseline Business Geographics Inc.
About Baseline
Baseline Business Geographics Inc. is a
global provider of integrated desktop,
mobile, and Internet mapping and
management solutions. They specialize
in customized software development
of GIS/GPS and mobile systems. As a
solutions integrator, Baseline offers
complete enterprise applications including data, training, consulting, project
management and more. Baseline
Compliance Manager, its end-to-end
compliance management solution, enables lotteries to demonstrably improve
their retailer compliance and integrity
testing programs to ensure compliance
with corporate policy, procedures and
regulations. For more information on
how Baseline can help your lottery,
please contact Thomas Bierbach at
thomasb@baselinegeo.com.
13
GOOD CAUSES
G E T T I N GOOD
G T H E M E S S AG
E AC R O S S
CAUSES
The UK’s National Lottery Awards 2011:
Highlighting the achievements of the
UK public’s favorite Good Cause projects
Each year the UK National Lottery showcases, in a nationally-televised
gala event, the Good Causes that it funds. Now in their eighth season, the
National Lottery Awards highlight the positive effect that lottery funding has on society. The Awards demonstrate in a fun and engaging way
to National Lottery players how the money they spend on a lottery ticket
is being invested. The Awards also celebrate how the beneficiaries of
National Lottery funding are putting the money they receive to good use.
With over £27 billion raised for Good Causes
since 1994, the UK National Lottery is undoubtedly a front runner when it comes to
charitable giving. In fact, Camelot’s lottery
operation returns more to society in percentage terms – at around 40% of total sales,
made up of 28% in support of Good Causes
and 12% in Lottery Duty to the government –
than any other major lottery in the world.
The 28% raised through ticket sales, specifically for Good Causes, is distributed by 13 independent National Lottery distributing bodies.
These organizations work hard to ensure that
the £30 million-plus raised each and every
week makes a real difference to projects and
charities across the UK. Since the UK National
Lottery began in 1994, more than 370,000
individual lottery grants have been awarded.
From cricket schemes for the disabled and arts
Mairi Morrison, Sense Scotland’s Head of
Business Development, and Matthew Ward,
a Sense Scotland client, received the
UK National Lottery Award 2011 in the
Best Health Project category.
14
centers to charities working with the deaf-blind
and educational heritage initiatives, the distributors ensure that National Lottery money
continues to make a real and life-changing difference the length and breadth of the country.
themselves are presented by a number of
celebrity guest presenters. The winners from
each category receive a £2,000 cash prize to
spend on their initiative, as well as a stunning trophy to mark their achievements.
The National Lottery Awards
The Awards not only ensure that National
Lottery-funded projects receive a high level
of public recognition throughout the voting campaign and the national broadcast
of the awards ceremony itself, but that they
also receive long-lasting benefits. Featuring
on television, in radio shows, online, and in
numerous magazines and newspapers, the
Awards open up a wealth of opportunities
for all those taking part.
The annually-televised National Lottery
Awards showcase the UK’s favorite National
Lottery-funded projects across seven categories, with each category reflecting an area
of lottery funding. Any project that has received National Lottery funding can enter
the Awards. There were over 850 entrants
this year – 70 of which were shortlisted by an
independent judging panel and then voted
for by the public. Competing for national
recognition, the finalists attend a glittering
gala event, which is broadcast on national
television to millions of viewers. The awards
The team behind the Green Valley Centre,
Wales, celebrated after winning the
UK National Lottery Award 2011 in the
Best Environment Project category.
The National Lottery Awards 2011 were televised live on BBC One on Saturday November 5, and presented by television and media
Mark Skipper, CEO of the Northern Ballet
and Phoenix Dance Theater, and Martha
Leebolt, principal dancer with the company,
accepted the UK National Lottery Award
2011 in the Best Arts Project category.
WLA magazine | No. 35 | Winter 2011 / 2012
GOOD CAUSES
G E T T I N GOOD
G T H E M E S S AG
E AC R O S S
CAUSES
The Green Valley Centre in Bryncynon, Wales, has transformed a longstanding local dumping ground into a thriving community garden. Occupational training and skills acquisition
for project employees have been supported by UK National Lottery funding.
The Northern Ballet and Phoenix Dance Theater is one of the best-loved dance companies
in the world. The new home for the Northern Ballet and Phoenix Dance Theater received
£4 million of UK National Lottery funding through the Arts Council England.
Sense Scotland provides support for around a thousand deaf-blind and otherwise disabled
children and adults every year. Lottery funding has been crucial to the organization’s development over the past thirteen years.
WLA magazine | No. 35 | Winter 2011 / 2012
personality, Myleene Klass. Watched by over
three million people, a host of stars lined up
to celebrate the Good Causes and present
awards to the winning projects. Adding to the
glamour and sense of occasion was a performance by the chart-topping band, The Wanted,
and a £10 million Lotto Superdraw, complete
with a dazzling studio fireworks display. A
number of video clips showcased the work of
the winning charities and projects in attendance. From the Green Valley Centre, which
created an oasis for their community in
Wales, to Sense Scotland, which works with
deaf and blind children and people with
disabilities throughout Scotland, the evening highlighted how brilliantly diverse The
National Lottery’s Good Causes are.
Other winners included Northern Ballet and
Phoenix Dance Theater, which received recognition for its excellent work developing
dance and performance art in Yorkshire. The
theater has a purpose-built centre, funded
by The National Lottery, which enables students from local universities and academies
to hone their skills. “Include Duchenne”,
another charity funded by The National
Lottery, won Best Education project for its
work supporting children with behavioral and learning difficulties associated with
Duchenne Muscular Dystrophy. The initiative has pioneered a new custom-built online literacy program, which is delivered in
partnership between parents at home and a
learning support assistant at school.
Fresh from the popular British television
show, Dragons’ Den, Hilary Devey presented the Best Voluntary/Charity project
award to “Hands That Talk” from Northern
Ireland. This project improves the quality
of life for deaf people by providing access
to employment, education, and services.
National Lottery funding has allowed the
project to train much-needed interpreters,
giving the deaf community increased access
to communication support.
British Olympic middle-distance hopeful
Hannah England, herself a beneficiary of
lottery funding, together with former world
champion hurdler, Colin Jackson, announced
that the Bluebird Care Hampshire Disability
Cricket Program had won the Best Sport
category. The program uses National Lottery
funding to motivate people with disabilities
to play cricket, as well as to encourage them
to become coaches and to advocate the inclusion of disabled cricket within clubs.
15
GOOD CAUSES
G E T T I N GOOD
G T H E M E S S AG
E AC R O S S
CAUSES
“We Were Brothers: WW1 A Shared Heritage”,
won the Best Heritage category award. This
Northern Ireland initiative involves a play,
a DVD, a book, an interactive website and
a youth project, and remembers the First
World War. Made possible by National
Lottery funding, the program depicts the
heritage of soldiers from both the Unionist
and Nationalist traditions who served sideby-side with the British army.
Congratulating all of the winners, Myleene
Klass said: “National Lottery players raise
over £30 million every week for large and
small projects across the UK. The National
Lottery Awards are a fantastic way of celebrating the enormous amount of hard work
that goes into making these projects a success. All the finalists make a real difference
to people and communities every day thanks
to their National Lottery funding.”
The Include Duchenne project helps children with Duchenne Muscular Dystrophy, a serious
muscle wasting condition with associated learning difficulties. The National Lottery funded
a literacy program that supports the educational achievement of children with Duchenne.
Strong media support
This year the Awards were supported not
only by the BBC’s live coverage, but also by
national newspaper The Daily Telegraph,
while category sponsors were ivillage.com
and consumer magazine, Best. This combination of media support helped to deliver an
extensive amount of advantageous publicity
during the campaign.
“We Were Brothers: WW1 A Shared Heritage”
reflects the positive effect of this media recognition. Journalist and author Felicity McCall
told us how being part of this year’s event
has improved the heritage project’s profile:
“Since the Awards, we’ve had two offers to
link with other projects; three approaches
from possible funders; a media frenzy; a huge
energy surge in the cast and crew; a 100 per
cent increase in hits on our site; … we expect
capacity audiences at our two performances
later this month; networking has begun and
can only grow, grow, grow!”
Yorkshire-based Chances For Life provides support to young homeless people.
In 2010 the group was named as runnerup in the Best Education category. Martin
Crossland, Strategic Development Manager,
said: “Taking part in The National Lottery
Awards last year was a great experience.
Being involved in the Awards helped to raise
our profile, engage with the public and celebrate the work that we do – and of course
appearing on national television was a great
boost for our project! The support that we
received from the community was fantastic.’’
16
The Hands That Talk charity improves quality of life for deaf people by providing access to
employment, training, and services. Lottery funding has allowed the project to train much
needed new interpreters, giving the deaf community increased access to support.
Bluebird Care Hampshire Disability Cricket provides opportunities for the disabled to play
the popular sport of cricket. National Lottery funding helps young people with learning
and physical disabilities to become involved in their local mainstream cricket clubs.
WLA magazine | No. 35 | Winter 2011 / 2012
GOOD CAUSES
G E T T I N GOOD
G T H E M E S S AG
E AC R O S S
CAUSES
The National Lottery
Awards 2011
The National Lottery Awards 2011
were launched in January 2011, and
over 850 lottery-funded projects entered. An independent panel of judges
selected a shortlist of 10 projects per
category, which then competed in two
rounds of public voting.
Northern Ireland’s “We Were Brothers” project remembers the heritage of soldiers from
both the Protestant and Catholic traditions who served side-by-side with the British army
in World War 1. The project was made possible by National Lottery funding.
The semi-final stage ran from May 31 –
June 20, 2011. There were a total of
70 projects in the semi-finals – 10 in
each of the seven categories. The three
projects with the most votes in each
category went through to the final
round of public voting, except for in
the Arts category, where there was a
tie and four projects went through.
The final stage of voting ran from
September 2 – September 26 2011.
There were a total of 22 projects in
the finals – three in six categories and
four in one category. There is only one
winner in each category. All voting
was independently adjudicated and
verified by Electoral Reform Services.
The seven winners named during the
show, broadcast live on BBC One on
November 5 2011, are as follows:
Best Arts Project: Northern Ballet and
Phoenix Dance Theatre, Leeds, England
The Surf Action charity uses surfing to help wounded combat veterans regain their
confidence and boost self-esteem. The charity is sponsored in part by National Lottery
funding.
Similarly, Surf Action, a project that works with
service personnel returning from active duty
by providing them with special therapeutic
sessions to help them get back into community life, accepted a runners-up award in the
Health category this year. By using the physical activity of surfing, the volunteers and instructors help combat veterans to regain their
confidence and develop positive everyday
skills. Rich Emerson, from Surf Action, said:
“We beat hundreds of other projects from all
over the UK to get to this stage. We are very
grateful to everyone who gave us their support along the way. The Awards have given us
a great opportunity to highlight the difference
our project has made to the local community.
It’s great to be able to thank National Lottery
players for their investment and demonstrate
the impact that their money can have.’’
WLA magazine | No. 35 | Winter 2011 / 2012
The National Lottery has transformed countless lives and communities across the UK,
and the Awards continue to highlight this
positive impact – reminding us that Good
Causes really do change lives for the better
on a daily basis. Dianne Thompson CBE,
Camelot Group CEO, said: “The National
Lottery Awards are incredibly important in
demonstrating to National Lottery players
how their money benefits a huge range of
Good Causes. The Awards provide a platform for even the smallest projects to gain
national recognition. Now in their eighth
year, they really do continue to go from
strength to strength in highlighting the positive impact these groups and charities have
on people and local communities all over
the UK.’’
Best Education Project: Include
Duchenne, UK-wide
Best Environment Project: The Green
Valley Centre, Bryncynon, Wales
Best Health Project: Sense Scotland,
Scotland-wide
Best Heritage Project: We Were
Brothers: WW1 A Shared Heritage,
Derry, Northern Ireland
Best Sport Project: The Bluebird Care
Hampshire Disability Cricket Program,
England
Best Voluntary/Charity Project:
Hands That Talk, Derry, Northern
Ireland
17
GOOD CAUSES
G E T T I N GOOD
G T H E M E S S AG
E AC R O S S
CAUSES
SPORTSTOTO –
A driving force for community
and sports in South Korea
SPORTSTOTO, in conjunction with the Korean Sports Promotion Foundation, is guided by
the twin commitments of caring for people and building a healthy and strong Republic of Korea
through successful sports development.
Sports betting was introduced in South Korea in 2001 in support of the FIFA 2002 World Cup held in South Korea and Japan.
Sport has the ability to bring a nation together, uniting all sectors of society. In many
countries, sports betting has been an integral means of sustaining sports and sporting
associations at many levels.
national sports. Since 2003, the sports betting business in Korea has been operated by
SPORTSTOTO, Inc., a daughter company
of the Orion Group, under exclusive license
from the KSPO.
Sports betting in Korea was introduced in
October 2001 by the Korean Sports Promotion Foundation (KSPO), in advance of
the first Asia-based World Cup, the 2002
FIFA World Cup, with the goal of fostering public sports activities and financing
As the consigner or issuer of the sports betting license, the KSPO is responsible for
regulating SPORTSTOTO, the consignee,
and for allocating the profits of the betting
business. In turn, the KSPO is regulated by
the Korean Ministry of Sports, Culture, and
18
Tourism, which is also responsible for approving business and sales plans. SPORTSTOTO
itself is responsible for the overall operations
and management of the sports betting business, including sales, payouts, system operation and maintenance, development of new
games, and public relations activities.
Since 2003, SPORTSTOTO has recorded consistent growth through the re-establishment
of retailers, the development of a specifically
Korean type of sports betting, and the extenWLA magazine | No. 35 | Winter 2011 / 2012
GOOD CAUSES
G E T T I N GOOD
G T H E M E S S AG
E AC R O S S
CAUSES
sion of its customer base. To fuel this growth,
both KSPO and SPORTSTOTO have sought
continuously to improve the country’s policies and laws while at the same time increasing
awareness of sports betting as a leisure game.
As a result, sales of sports betting products
reached US$1.61 billion in 2010 .
Funding sport throughout Korea
SPORTSTOTO is committed to creating an
environment where anyone can enjoy the
benefits of sports. According to the National Sports Promotion Act, SPORTSTOTO
funding is divided between the KSPO (78%),
support for sports associations whose games
are the object of betting (10%), projects designated by the Ministry of Culture, Sports,
and Tourism (7%), and maintenance of public sports facilities (5%). The KSPO also receives additional funding through its other
fund raising operations, which include cycle
racing and motorboat racing businesses.
Over the past ten years, total turnover of
US$7.04 billion has contributed to a fund
of US$1.89 billion for sports promotion, of
which US$181.5 million was used to help
construct the 2002 World Cup stadiums.
More generally, the funds have been used to
encourage sports activities in general, and to
nurture youth sports and sponsoring sports
associations.
In 2007, South Korea’s total government
budget for sports (US$156.4 million) accounted for only 0.09% of the country’s total national expenditure, significantly lower
than that of Japan (0.4%), the United States
(0.48%), Germany (0.9%), and Norway
(1.6%). Since 2003, the KSPO has contributed the lion’s share of the national budget for
Offering the widest range of pari-mutuel products in the world, SPORTSTOTO has increased
the popularity of less mainstream sporting events, such as women’s professional basketball
and women’s professional football, professional volleyball, and professional golf.
sports and by 2011, the KSPO’s contribution
accounted for over 80% of the total national
sports budget.
Meeting the challenge
of continuous growth
SPORTSTOTO’s consistent growth is due
to continuous innovation and new games.
The company offers both pari-mutuel Toto
games and fixed-odds Proto games.
Toto issues 16 types of pari-mutuel games
on five different sporting events, namely football, baseball, basketball, volleyball, and golf. For pari-mutuel products,
SPORTSTOTO thereby offers the widest
range of events and products in the world.
Moreover, new games have been launched
that reflect characteristics of the domestic
environment, and SPORTSTOTO’s product
portfolio has fulfilled customer demands
and revitalized unpopular sports. KSPO has
also added to its product portfolio recently to support international sports events
in Korea, such as the 2011 IAAF World
Championship Daegu, the F1 Korean Grand
Prix, the 2014 Asian Games in Incheon, the
2015 Gwangjoo Summer Universidad, and
the 2018 Pyeongchang Winter Olympic and
Paralympics Games.
Proto fixed-odds games consist of two types,
‘long list’ and ‘winner list’, for soccer, baseball, and basketball. The Korean government applies rigorous regulations to these
fixed-odds games, requiring that the annual
payout ratio be restricted to 50–70%, the
issuing of tickets be limited to twice weekly,
and that each game be closed ten minutes
before the kick-off of the first match. These
restrictions notwithstanding, Proto has become the most popular betting game in
Korea since its launch in 2006.
In 2010, Toto sales were US$653.4 million
and Proto sales were US$963.3 million,
demonstrating a 2:3 issue ratio between
pari-mutuel and fixed-odds games. This is a
significant achievement in that it shows the
importance of pari-mutuel products, which
illegal gambling businesses cannot offer and
only state lotteries can provide.
Funding from SPORTSTOTO is used to nurture youth sports, cultivating healthy, talented athletes.
WLA magazine | No. 35 | Winter 2011 / 2012
KSPO and SPORTSTOTO originally utilized
a foreign fixed-odds system that had numerous limitations, including high operation
and maintenance costs, and response delays
resulting from remote support by overseas operators. Consequently, it was considered essential to build a localized system.
19
GOOD CAUSES
G E T T I N GOOD
G T H E M E S S AG
E AC R O S S
CAUSES
The localized system took two years to develop and was launched in April 2011 for all
Proto games. The new system is expected to
save US$1.2 million annually in operational
costs, while dramatically improving operational effectiveness.
Putting funds to good causes
Both KSPO and SPORTSTOTO are fulfilling
their corporate visions and their responsibility for raising sports promotion funds in
Korea. At the same time, they are returning profits to society, supporting a variety of
good causes.
KSPO serves the public good through its
concrete support of a diverse range of sports
activities, often with an emphasis on programs for children and the disabled. For
example, it has recruited sports stars to offer lectures and to serve as role models for
the young, with recent speakers including
Olympic gold-medalists Soonyeong Kim
(archery, 1988, 1992, 2000), Byeonggwan
Jeon (weight lifting, 1992), and Hyunsoo
An (short-track skate, 2006). It has provided
US$175,000 for neighbor-caring projects,
supplying wheelchairs and vocational rehabilitation programs to the disabled. And,
as part of its mission to extend the scope of
its activities throughout the world, KSPO
sponsored 980 soccer balls for children in
14 African countries to commemorate the
2010 FIFA World Cup, celebrating the
meaning of sport while sharing its pleasure.
KSPO also operates sports associations
directly for sports struggling financially,
including cycling, marathon running, fencing, canoeing, and women’s soccer. KSPO
earmarks US$6.2 million annually for these
associations. It holds both the Tour de
Korea and national motor boat and canoeing competitions to promote these sports,
and it plans to support a diving association
in the future.
For its part, SPORTSTOTO – with its
sports-oriented contribution to society –
invests more than 70% of the company’s
total budget in the development of sports
and sports welfare, with its primary corporate social responsibility activity being
the sponsorship of youth sports. A particular program of note is the “butterfly
of hope,” which sponsors children with
talent and capability from poor environments. Other programs include support for
sports clubs in isolated areas, the holding
20
As part of SPORTSTOTO’s Total Supporting Service (ToSS) philosophy, the welfare of the
disabled is sponsored through scholarships, through financing medical operations, and by
funding admission fees to sporting events.
of sports events for primary schools, and
the hosting of various youth sports events.
SPORTSTOTO also actively supports sports
for the disabled, sponsoring the Korea Sports
Association for the Disabled, as well as the
Committee of Special Olympic Korea, which
is designed to direct public attention to the
Special Olympics. SPORTSTOTO also provides sports supplies and equipment for
athletes and sponsors various sports competitions for the disabled, and supports a diverse range of general sports activities so that
all members of society have easy access to
sports. For example, it sponsors sports clubs
for children in low-income brackets, and sports
equipment is provided to help improve the
physical strength of vulnerable groups such
as the disabled and children with cancer.
Social and cultural welfare is yet another
SPORTSTOTO focus. As part of its “ToSS”
(Total Supporting Service) philosophy, the
company sponsors the welfare of the dis-
abled through scholarships, through financing medical operations, and by funding
admission fees to sporting events.
SPORTSTOTO has been publicly recognized
for its outstanding achievement to good causes.
It won the eighth Korea Business Ethics Award
in 2007 from the Korean Academy of Business Ethics, and in 2010 won the commendation of the Ministry of Education, Science
and Technology for its contribution to the development of physical education in schools.
SPORTSTOTO’s 2010 customer survey identified an increased awareness of its activities
for the public good, especially for the young
and the disabled, and this has helped to raise
the company’s corporate profile.
Creating a culture of sharing
In addition to their demonstrated support of
good causes, both KSPO and SPORTSTOTO
have worked to build a corporate culture of
social responsibility among their employees.
Introduced in 2007, KSPO’s voluntary “mileage for sharing” program has encouraged social contributions from staff. The program
converts voluntary work, donations, and blood
donations into mileage, and employees are
rewarded in proportion to their mileage accrued. A total of 8,089 staff members participated in 2010, with an average of 37 hours
participation per staff member. A remarkable
81% of all employees voluntarily donate a part
of their salary (approximately US$1.75 to
US$17.50) to create a reliable fund for good
causes, with KSPO matching this contribution.
In April 2011 SPORTSTOTO launched a localized system for fixed odds sports betting
for all Proto games. The system was two
and a half years in development.
KSPO also has a volunteer group that regularly
delivers support to the community, visiting
welfare centers and delivering groceries to the
WLA magazine | No. 35 | Winter 2011 / 2012
GOOD CAUSES
G E T T I N GOOD
G T H E M E S S AG
E AC R O S S
CAUSES
disadvantaged. KSPO employees regularly
donate blood to the Red Cross and also support
patients with blood cancer. And to encourage
co-development between rural and city areas,
KSPO has affiliated with farm villages to offer a
helping hand during the farming season, purchasing produce, improving outdated housing, and providing free medical check-ups.
SPORTSTOTO has similarly created a culture of voluntary service. In 2005 it established TOPAZ, a voluntary service club,
which was expanded and reborn as the
“SPORTSTOTO volunteer ambassadors” in
April 2007. Club members carry out voluntary activities four times a month. SPORTSTOTO staff also conduct sports activities
during regular visits to the Daniel school,
a special school for disabled children, and
organize activities for disabled children like
watching films and outdoor excursions. They
also support activities for single mothers of
infants and distribute free meals for seniors.
As a point of fact, unlawful online sports
betting has increased significantly since
2008 and is now emerging as a major social
issue in Korea, with some US$10.4 billion
in annual turnover coming from almost a
thousand illegal websites.
SPORTSTOTO supports activities to assist
people of all ages and of all walks of life.
Company employees have also participated
in special events since 2006, and SPORTSTOTO has hosted a variety of events including patient bazaars, one-day clubs for
children with incurable diseases, blood donations, and voluntary service for flood
victims. In June 2011, SPORTSTOTO
hosted “Double Up” (pronounced the
same as “together” in Korean), a bazaar
in which all profits were donated to youth
causes. Further, as an official sponsor of
the Committee for the Special Olympics
(Korea), SPORTSTOTO dispatched 15 employees to support Korean athletes who participated in the 2011 Special Olympic World
Summer Games held in Athens, Greece.
Building responsibility and
combating unlawful gambling
The employees of SPORTSTOTO carry out
numerous volunteer activities in an effort to
promote love and compassion throughout
their communities.
Amid all these activities, KSPO and SPORTSTOTO have built and maintained a heritage
of responsible gaming, even as they face
new challenges from illegal online gaming.
KSPO and SPORTSTOTO are pursuing two
courses of action against unlawful gambling: track-down and differentiation. As
the country’s exclusive providers of sports
betting, both organizations are committed to
supporting the government’s effort to crack
down on unlawful gambling by delivering
strong support for the identification and exposure of violators.
At the same time, KSPO and SPORTSTOTO
have enhanced their facilities to create a responsible gaming environment, something
only legal operators can provide. In 2010,
SPORTSTOTO further improved its responsible gaming environment by adopting the
WLA Responsible Gaming Framework. As
a result of those efforts, SPORTSTOTO
was certified at WLA Responsible Gaming
Framework Level III in 2010.
Positioning Korea as
a sports powerhouse
Clearly, South Korea is developing into an
Asian sports powerhouse, competing in
a diverse range of professional sports including football, baseball, basketball, and
volleyball, and achieving outstanding success at international competitions. KSPO
and SPORTSTOTO are committed to fulfilling the fundamental objectives of promoting both elite and grassroots sports in
the Republic of Korea and to providing support for international sports events.
Advertisement
Lottery Benchmarking Study
New and updated 3rd edition of MECN’s comprehensive report
Updated benchmarking report for the global lottery industry includes analyses
of sales, costs, sales channels, …. New in 3rd edition: Detailed analyses of the
Internet/interactive segments and responsible gambling benchmarks.
More information: www.lottery-benchmarking.mecn.net
WLA magazine | No. 35 | Winter 2011 / 2012
21
INSIGHT
I N S I G HINSIGHT
T
Multi-jurisdictional games:
The trend is growing
In recent years the number of WLA member lotteries that participate in multi-jurisdictional games
has increased. Multi-jurisdictional games, also known as block games, are well suited to meet the
continuing trend toward higher jackpots and increased chances of winning. In this issue we present
an overview of multi-jurisdictional games in Europe and America and look at how those games have
been enhanced to meet this trend. We also take a brief look at some exiting new block games that
are currently in development around the globe.
main numbers and the two Lucky Star numbers would claim the jackpot. One weekly
draw was held each Friday evening.
On May 7, 2011, several significant changes
were introduced to Euro Millions. An additional weekly Euro Millions draw was initiated. This second draw, which takes place
each Tuesday evening, provides for substantially larger roll-overs. It also offers players
more opportunities to participate in Euro
Millions. The first Tuesday Euro Millions
draw took place on, May 10, 2011. Further
changes to Euro Millions included enlarging
the Lucky Stars matrix from 2/9 to 2/11, and
creating an additional prize tier, providing
a €4 prize for correctly selecting two of the
five main numbers. These changes have enhanced a player’s overall chances of winning
a prize from 1:24 to 1:13 – an improvement
of 85%.
Europe’s Euro Millions
On February 7, 2004 Euro Millions became
the first multi-jurisdictional lottery game to
operate across several countries. It was initiated through the combined efforts of La
Française des Jeux (LFDJ), Spain’s Loterías
y Apuestas del Estado (LAE), and Camelot,
the licensed operator of the UK National
Lottery. Lotteries from Switzerland, Belgium,
Austria, Ireland, Luxembourg, and Portugal
joined Euro Millions eight months later. To
date Euro Millions has 10 participating lotteries from nine European countries with
LFDJ conducting the draws in Paris.
When Euro Millions debuted in 2004 it had
a 5/50 game matrix and a Lucky Stars matrix of 2/9. Players correctly selecting all five
22
The players’ calls for larger jackpots and
increased chances of winning have been
answered by the Euro Millions organizers.
Thus far, this has yielded positive results
for participating lotteries. Since the May 7,
2011 changes, revamped Euro Millions has
proved to be a success for Loterie Romande
of Switzerland. They reported 39% more
winners among the lower prize tiers (prizes
under €30). Within the first six months after
the changes, Loterie Romande also recorded 1.3 million winners of the lowest prize
tier. The Tuesday draw has been well received, contributing to about 40% of Loterie
Romande’s weekly Euro Millions sales.
Likewise, La Française des Jeux reported a
growth in Euro Millions sales of about 30%.
However, owing to the high rollovers that
WLA magazine | No. 35 | Winter 2011 / 2012
INSIGHT
I N S I G HINSIGHT
T
Louisiana, began selling Mega Millions in
the fall of 2011. Presently, only two states
have chosen to remain selling only one of
either game, with Florida selling Powerball
and California selling Mega Millions.
have occurred within the short span of time
since the changes took effect, this figure
should be treated with caution. In each of
the respective countries in which it is affiliated, Euro Millions continues to be the dominant lottery game.
Euro Millions is proving so popular that
lotteries are starting to introduce mobile and other real-time solutions for the
game. Swisslos, the Swiss state lottery for
the German and Italian speaking parts of
Switzerland, recently introduced a Euro
Millions application for the iPhone and
the iPod touch. With the Euro Millions application, registered players can play Euro
Millions on the go. Players can also receive
updates on the winning numbers and the
number of winners, and can also receive
jackpot alerts.
Further features of the Euro Millions application include:
t 1MBZFSSFHJTUSBUJPO
t 2VJDLQJDLTFMFDUJPO
t ćFBCJMJUZUPTBWFZPVSGBWPSJUFOVNCFST
t 1MBZFSBDDPVOUCBMBODFEJTQMBZ
t 1MBZFSIJTUPSZ
t 'VMMTZODISPOJ[BUJPOXJUIUIFQMBZFST
Internet account.
The Swisslos Euro Millions application went
live on November 28, 2011.
America’s Powerball
and Mega Millions
For a number of years, the two lottery groups
participating in America’s two leading block
games, Powerball and Mega Millions, had
discussed opportunities to cooperate in offering both products nationwide. Then,
in early 2009, the Powerball group of the
Multi-State Lottery Association (MUSL) and
the Mega Millions (MM) group agreed in
principle to proceed with a three-pronged
strategy, which included the cross-selling of
the two games, an eventual increase in the
purchase price of one or both or the games,
and ultimately in the development a new
premium national game.
In late 2009 the two groups reached a final
agreement on the cross-selling of their respective flagship games. Under the agreement,
participating member jurisdictions of each
group were granted the right to sell both games.
Thirty two of the Powerball jurisdictions and
eleven of the Mega Millions states elected to
begin selling both games as of January 31, 2010.
Since that time, one additional MUSL state,
Within the first 22 months since cross-selling began, combined Powerball and Mega
Millions sales rose from US$10.4 billion
to US$11.8 billion – an increase of 13.2%
compared to the 22 months prior to the initiation of cross-selling. Owing to the added
player base that the cross-selling measure
has afforded each game, Powerball’s sales
grew from US$5.2 billion to US$6.3 billion, an increase of 21%, while sales of Mega
Millions increased from $5.2 billion to $5.5
billion, an increase of 6%. Conversely, sales
within the individual game groups increased
by 5% to $5.45 billion in the Powerball jurisdictions, and by 21% to $6.35 billion in the
Mega Millions states. This peculiarity results
from the somewhat larger population and
greater number of retailers within the Mega
Millions states, as well as from Powerball’s
greater brand recognition.
Changes to Powerball
Just like the Euro Millions organizers, the
Powerball group has answered the call for
bigger jackpots and increased chances of
winning. On June 24, 2011, MUSL decided
on a number of measures to achieve these
objectives with Powerball.
With the Euro Millions iPhone application from Swisslos, registered players can play Euro Millions while on the go. The application syncs
securely with players’ Internet accounts.
WLA magazine | No. 35 | Winter 2011 / 2012
23
INSIGHT
I N S I G HINSIGHT
T
Currently, Powerball has a game matrix of
5/59 with an additional Powerball matrix
of 1/39. Players correctly hitting all five
main numbers and the Powerball number
take home the Powerball jackpot. There are
two weekly Powerball draws, on Wednesday
and Saturday evenings. Powerball’s purchase price is US$1. The starting jackpot
for Powerball is US$20 million. An optional
Power Play feature increases the winnings
in the US$3 to US$10,000 categories by a
factor of 2, 3, 4, or 5. The Power Play option
multiplier does not affect the second tier
prize, which goes to players who match five
of the 59 main numbers without hitting the
Powerball (5+0). But it does increases the
second tier prize payout from US$200’000 to
US$1 million. Players can select the optional
Power Play feature for an additional US$1.
Among the changes the Powerball group decided upon in June 2011 was an increase in the
Powerball purchase price from US$1 to US$2
per play. This measure has allowed for a doubling of the starting jackpot. When the price
change takes effect on January 15, 2012 the
starting jackpot will rise to US$40 million. The
second tier prize, will increase from US$200,000
to US$1 million. Matching only the Powerball,
which has until now provided a US$3 win,
will yield a US$4 win. The Power Play feature
will continue to be offered for an additional
US$1, but will increase the second tier prize
from US$1 million to US$2 million.
The Powerball group has also introduced
another measure that is designed to improve
the player’s odds of winning. The Powerball
matrix will shrink from 1/39 to 1/35 while
the game matrix will remain at 5/59. This
will increase the odds of winning the jackpot
from 1 in 195.2 million to 1 in 175.2 million.
The overall odds of winning a cash prize will
also improve, moving from 1 in 35 to 1 in 31.
This measure will take effect together with
the price increase on January 15, 2012.
Powerball is currently played in 42 states,
Washington D.C., and in the US Virgin
Islands. The changes to Powerball are supported by a consensus of the participating
Mega Millions states.
Historically, Powerball has shown stronger
baseline sales and greater brand recognition
than Mega Millions. This made it the logical choice of the two games when it came to
implementing such changes.
24
®
A cooperative advertising campaign has
been developed and will be used by 22 of
the 44 participating jurisdictions when the
revamped Powerball is launched in January
2012. The campaign centers on a theme of
MORE (million dollar winners), BIGGER
(jackpots), and BETTER (odds of winning).
Looking forward: A new
Premium Game for America
A cooperative effort to develop a new premium national game that will be offered
by the lotteries participating in Powerball
and Mega Millions began in earnest in June
2010. This effort was initiated by a joint
committee comprised of members from
both groups, as well as representatives from
three of the leading vendors in America
– GTECH, Scientific Games, and Intralot
USA. Pollard Banknote of Canada has also
recently joined the group as a participating
vendor. Cooperation between the two lottery groups and the participating vendors
has been outstanding.
The committee activity initially centered on
creative game development, together with
player/consumer research. These activities
were completed in early 2011. Since spring
2011, the committee has focused on refining the concept, ultimately settling on a twopart hybrid game. The game concept utilizes
printed tickets with an instant win feature
and entries to be made via the Internet for
weekly drawings of higher tier prizes, including a large number of $1 million prizes
and experiential prizes, possibly to be provided by national sponsors. The tickets are
expected to be sold at existing and newly
recruited lottery retailers, with lower tier
prizes being paid by directly by the retailer
and drawing prizes being paid by the participating lotteries. It is also anticipated that the
game will leverage its marketing and communications strategies through a national
advertising campaign coupled with the use
of social media platforms.
final recruitment of participating lotteries
is expected to be completed by May 2012.
Current plans call for a game to be launched
in autumn 2012.
Looking forward:
The World Lottery Draw
The development of a world game has been
ongoing for the past several years. This effort
has been spear-headed by Camelot of the UK,
La Française des Jeux of France, and MUSL of
the USA. Other Euro Millions participating
lotteries, as well as lotteries from Europe and
Australia, have lent their support to the effort.
Several game concepts have been developed
through ideation and refined to four separate
game concepts, which were tested through
qualitative consumer research conducted by
six European lotteries, five American lotteries,
and one Australian lottery. The research revealed a strong concept, favored by all parties, which is being further refined through
the game development and ideation processes established by the three lead partners.
The favored game concept draws upon key
assets and attributes of existing lottery games.
More detail will be revealed about the proposed game, structure, and parameters over
the course of 2012. The project team has
planned for a launch date around late 2013 or
early 2014. However, the launch date comes
with a caveat, owing to the recent repositioning of Euro Millions and Powerball. (See
above for details.) The world game project
team has agreed to wait before decisively committing to a launch date for the world game,
until the performance of the Euro Millions
and Powerball enhancements can be analyzed
and fully understood. The three partners, and
the project team, remain committed to the project and will carry on working on the initiative
and on other multi-national opportunities.
Games in other regions
Other well-established multi-jurisdictional
games exist in other regions and countries
of the world. Canada has LOTTO Max and
LOTTO 649, Australia has OZ Lotto, and
in the northern countries of Europe there
is Viking Lotto. Block games for Africa and
Latin America have also been on the drawing table. We will be following trends and
developments in the world of block games
and reporting on these in subsequent issues
of the WLA magazine.
Additional research, both qualitative and
quantitative, plus further game refinement,
and technology development, will be considered over the next several months. The
WLA magazine | No. 35 | Winter 2011 / 2012
INSIGHT
I N S I G HINSIGHT
T
Product innovations of 2011
Responding to new technologies and changing consumer desires, WLA members continue
to stress diversification and novelty in their search for new games and product lines. Below
we showcase a few product innovations that have occurred within the past 12 to 18 months.
GeoSweep
In issue 34 of the WLA magazine we reported on GeoSweep, a new innovation in online
gaming. GeoSweep, licensed by the Londonbased Roboreus Limited, is the brainchild of
brothers James and Henry Oakes.
GeoSweep, launched in the UK by the brothers James and Henry Oakes, combines Internet
gaming, online map technology, and social media, to yield a fun and engaging locationbased lottery game.
GeoSweep is designed with the Generation Y
player in mind. It replaces traditional lottery
numbers with locations on a map. The GeoSweep concept leverages the insight that places
are more interesting and emotive to younger
players than randomly selected numbers.
GeoSweep combines social media and online
map technology to yield a location-based
lottery game that is fun and engaging. Owing
to GeoSweep’s full integration of Facebook
and Twitter, players can easily share their
gaming activity with friends and family.
The initial GeoSweep interactive draw game
was developed over a two year period to ensure
ease of play and the utmost security and responsible gaming standards. The GeoSweep
interactive game was launched in October
2010 and ten thousand player accounts were
secured in the first week with 80% of those
players choosing to subscribe to the product.
GeoSweep involves the selection of a square plot of land on a map,
called a Geo, which is entered into two daily draws.
26
The game is played by selecting a square plot of
land on a map. That plot, called a Geo, is chosen by navigating an interactive map based
on Google Maps technology. Two draws take
place daily. The GeoSweep draw is the main
draw and if your Geo is selected directly, you
win the jackpot. If you occupy a Geo within
WLA magazine | No. 35 | Winter 2011 / 2012
INSIGHT
I N S I G HINSIGHT
T
the Prize Zone of the winning Geo, then you
win a secondary cash prize. The Prize Zone
is a square area, several times larger than a
single Geo, which surrounds the winning
Geo. The Daily Guaranteed draw is the second daily draw. It is similar to the GeoSweep
main draw, although only occupied Geos are
entered, increasing the player’s chances of
winning a prize.
Initially, a player could occupy a Geo for 30
days for the price of £3. This entitled them
to a daily chance at a £1 million jackpot over
the 30-day period. Within the first eight months
of operation, no one was able to capture the
main GeoSweep jackpot of £1 million. To improve the odds for players, the price and prize
structure were changed on July 20, 2011. One
Geo is now occupied for 100 days at the price
of £1. The daily jackpot has been reduced from
£1 million to £100,000 and the daily guaranteed win has been reduced from £1000 to
£100. Now players have 100 chances of winning £100,000 instead of 10 chances of winning £1 million. Further, the Prize Zone has
been expanded from 100 Geos to 500 Geos.
Still, as of the time of this writing, the main
GeoSweep jackpot has remained elusive.
In June 2011 GTECH Corporation and
Roboreus Limited entered into an exclusive
worldwide agreement to market and deploy
GeoSweep to lotteries around the globe.
Roboreus Limited and GTECH are currently working on a retail-enabled version of
GeoSweep suitable for uptake by US lotteries and other lotteries that may not have an
interactive platform.
remains popular in Switzerland. Aiming
to bring bingo to what they term the “Facebook
Generation”, Swiss lottery operator Swissloss
went live with online bingo on April 27, 2011.
Swisslos Bingo, found on the Internet at www.
bingo.ch, combines the traditional bingo game
with online technology and social media.
When the Bingo website went live in April it
offered one variation of 90-ball bingo called
“Moonshine” and two variations of 75-ball
bingo called “Choco” and “Lucky 7”. On November 1, 2011, Swisslos expanded the game
palette to include two additional 75-ball Bingo
variations, “Gratissimo” and “Bulls Eye”.
As soon as a player opens an account with
Swisslos online and registers a nickname, they
can begin playing Bingo. During and between
each Bingo drawing, players can share their
enthusiasm for the game with other Bingo
players by way of a chat window on the website. The chat window provides a community
aspect to the game that is analogous to the
sense of community found in the traditional
bingo hall. Bingo is available for play online
from 7:00 to 23:30 daily. Swisslos plans to extend the daily play schedule in the near future.
Players have shown remarkable interest in
Bingo. Swisslos has an estimated 330,000
registered players on their Internet-gaming
platform; of those, more than 25,000 have
played Bingo since it went live.
LOTENAL: The Mayan Prophecy
Throughout its more than 240 year history,
Lotería Nacional para la Asistencia Pública
(LOTENAL) has been raising funds for the
benefit of Mexican society. Keeping with this
tradition, LOTENAL General Director Mr.
Benjamín González Roaro announced the
launch of a new game entitled “Profecía Maya
(The Mayan Prophecy)” in October 2011.
At the outset, various proposals for the new
game were developed. The budget of the
average Mexican consumer was taken into
consideration in the development of the
price range. A final price of 20 pesos per
game was decided on, as was a jackpot of 8
million pesos. The total prize payout covered over 23 thousand individual prizes per
drawing.
With the price and the prize structure decided, it was left to find a theme for the game
that would have relevance for Mexican players. Games that offer entertainment while
celebrating the historical heritage of the
Mexican people fit this category well. As
the Mayan culture is central to the history
Seeking to expand its gaming portfolio, Atlantic Lottery of Canada has partnered with
Roboreus and are looking to launch GeoSweep in the Atlantic Provinces of Canada
toward the end of April 2012. Atlantic Lottery will be the first WLA member lottery
in the world to launch this innovative game.
Swisslos Bingo: Tradition meets
the Facebook generation
Bingo has a long tradition in Switzerland,
customarily being played in the local village
cafe for low stakes and modest prizes. Although the number of younger players populating the bingo halls has dwindled, the game
WLA magazine | No. 35 | Winter 2011 / 2012
Swisslos’s bingo website, catering to the Facebook generation, combines the traditional
bingo game with online technology and social media.
27
INSIGHT
I N S I G HINSIGHT
T
Pek the dog, Kan the snake, Tuul the rabbit, Aak the turtle, Tzotz the bat, Dsek the
scorpion, Keh the deer, Moan the owl, and
Kutz the turkey. Each of the 13 symbols represents a particular time of the year. As such,
players tend to endow a particular symbol
with their own personal meaning, choosing
a specific symbol as their lucky symbol. The
symbols are also said to have a metaphysical
influence on attracting good fortune.
The ornate Profecía Maya tickets are sought
by co
collectors and an album for this purpose
is also available from LOTENAL. The album
is co
complete with a history of the Mayans
and their astrological and geological
knowledge as it relates to the Mayan
calendar. It provides a brief tour of
ancient Mayan cities and attempts to
explain the mysterious legacy of the
Mayans. Upon completing the album, collectors may present it at the
LOTENAL offices and receive a gift
for their loyalty.
LOTENAL’s Profecía Maya offers players
an entertaining game that celebrates the
historical heritage of the Mexican people.
of Mexico it was decided to create a game
around this theme. The game and its promotional campaign depict the Mayas and their
contributions, not just to the Mexican culture but also to humanity as a whole.
According to the Vice President of Government Funds and Lotteries, Mr. Fabio Cleto,
“Linking special lottery draws to the most
important holidays of country has shown
astounding results. Brazilian players tend to
mark these draws in their agenda, increasing their participation in the games, hence
increasing sales.”
A total of four of these special lottery draws
have been planned. Each one is held in association with a particular holiday and is
connected with one of four yearly draws.
The first was launched in connection with
the Mega-Sena in 2009. Held on the last day
of the year, the Mega-Sena, also known as
the “Mega da Virada” (the big rebound), is
Brazil’s main lottery attraction.
Continuing this strategy, the second product
selected for a special draw was Quina. The
draw was named Quina de São João, referring
to the traditional celebration of Saint John’s
day. This is an important holiday for Brazilians, especially in the northeastern region of
the country. On June 24, 2011, the celebration of Saint John’s day, Brazilians also celebrated the drawing of the Quina de São João.
Inaugurating the game, LOTENAL
General Director, Mr. Benjamín
González Roaro stated, “Today, more than
ever, there is a need to reconnect with success and abundance. We hope that year 2012
will bring success and abundance into your
homes and lives. The luck and fortune that
the Mayans predicted is now at hand.”
Passive or traditional lotteries – those involving pre-numbered tickets – are very popular in Mexico. For this reason LOTENAL
decided to take this approach in developing
Profecía Maya.
The tickets for Profecía Maya are printed
in 13 lots, with each lot represented by one
of 13 Mayan calendar symbols. Each ticket
within a lot has a four-digit number, running
from 0000–9999, making a total of 130,000
tickets on sale for each drawing. The drawing is held on the last Sunday of each month.
The 13 Mayan calendar symbols represented
in the game are Itzama the iguana, Batz the
monkey, Coz the hawk, Balam the jaguar,
28
Caixa: Linking special lotteries
to holidays
Caixa Econômica Federal (CAIXA) of Brazil
has taken steps to modernize their lottery
products and boost sales by establishing
special draws in conjunction with some of
the country’s major holidays. Combining
holiday activities with a lottery draw lends
these special lotteries a festive spirit and a
strong visual identity.
Associating special draws with important
holidays, such as the Quina de São João
with Saint John’s day, has positively affected
CAIXA’s sales.
The total prize payout of the Quina de São João
totaled R$ 76.8 million (US$ 41.5 million). 1
“The size of the prize payout was an overwhelming factor in making the Quina de São
João drawing a major success”, commented
WLA magazine | No. 35 | Winter 2011 / 2012
INSIGHT
I N S I G HINSIGHT
T
Mr. Cleto on the increase in sales generated by this special draw. This is an absolute
record for Quina and the seventh largest
payout in the history of the Brazilian state
lotteries. Until then, the highest amount ever
paid out in a Quina draw was R$ 9.1 million
(US$ 4.9 million), which occurred in August
2010. In its premier drawing, the Quina de
São João made five new millionaires, each
earning R$ 13.5 million (US$ 7.3 million).
Pronósticos: New twists
on popular games
Mexico’s largest lottery by sales, Pronósticos
para la Asistencia Pública created new options for two of its sports and lotto products
and added a new lotto game to its lineup in
efforts to attract new players with both larger prizes and more prizes overall.
For its popular Progol sports category,
Pronósticos increased the top prize and
added a midweek version, Progol Media
Semana. By doubling Progol’s guaranteed
minimum prize payout from 2.5 million to
5 million pesos, and significantly increasing
lower prize levels, Pronósticos achieved a
sales increase of 268 million pesos over two
years. The lottery funded the prize increase
by raising the ticket price from 10 to 15 pesos. Progol Media Semana is composed of
nine games from Tuesday through Thursday
at a 10 peso price point. The lottery expects
incremental sales of at least 90 million pesos
annually from this extra midweek option.
On the lotto front, Pronósticos launched
Melate Retro 6/39 in May 2010 to fill a market niche not previously
covered. The new game
offers top prizes in the
range of 5 to 10 million
pesos and more overall
opportunities to win. In
August 2010, Melate Revanchita was added to the
Melate game portfolio,
offering a third chance,
along with Melate and
Melate Revancha, to win
with the same set of numbers. The goal is to increase sales by attracting
new customers and by
converting existing casual players into more frequent regular players.
means offering products that take advantage of the latest technologies. For others,
it means associating games with unique
cultural heritages or traditions. In all cases,
the price, prize structure, and play features
are carefully designed to maximize sales,
and hence revenues to good causes.
A common goal:
attracting
new players
The innovations presented in this article have
one thing in common – a
desire to reach new audiences and attract new
players. For some, that
Through changes to Progol and the Melate game portfolio,
Pronósticos has won new players and increased sales.
1 Actual exchange rate of the Central Bank of Brazil on November 24, 2011, was R$ 1.00 = US$ 0.54
Advertisement
WLA magazine | No. 35 | Winter 2011 / 2012
29
INSIGHT
I N S I G HINSIGHT
T
Opera: Wagering with the devil
Can lotteries learn anything from the drama of the opera? Do musicals present a realistic
portrayal of life with regard to gaming? Continuing our series on gambling in the arts,
gaming expert Göran Wessberg presents a selection of operas and musicals that address
the topic of gambling in society.
One might ask, “What is an article on operas
doing in the WLA magazine”? The highlight
of any lottery is of course the draw, that final moment that decides if you win or lose.
Similarly, at the climax of an opera, the roll
of the dice or the turn of a card often determines the outcome of the story.
The 19th century composer, Pyotr Ilyich
Tchaikovsky – The Queen of Spades.
Let’s start with Tchaikovsky’s Pikovaya dama
(Queen of Spades), based on an intense
short story by Pushkin. Hermann, a young
officer with no money and no position in
society, wants to know the secret of a duchess, which is that she once traded amorous
favors for the secret of three winning cards
in the game of faro. By scaring the duchess
to death and seducing her niece, Hermann
obtains this knowledge, and dares to stake
all at a party. He wins the first two rounds,
but, when finally challenged by the former
fiancé of the duchess’ niece, he does not
receive the ace he expects. Rather, he gets
the Queen of Spades. The old lady has had
her revenge, and Hermann shoots himself.
The aria Three
cards rings in
your ears as
you leave the
auditorium.
Prokofiev’s opera Igrok, an
adaptation of
Dostojevskij’s
famous novella
The Gambler,
is all about ob30
Sergei Prokofiev’s the
Gambler adapted from
Dostojevskij’s novel by
the same name.
session. Spectators particularly look forward
to the fourth and last act, which is set in a casino where young Andrej is enjoying a marvelous run of luck. To the amazement of the
other players, he successfully stakes on winning on red repeatedly. But when he presents all his winnings to his beloved, who is
indebted, in order that she may save herself
and her honor, she just throws the money
back to him and leaves him in despair: lucky
at cards, unlucky at love.
So, what’s the use in winning? This is a question you can ask yourself while watching the
third act of Verdi’s timeless story of grand passion, La Traviata. Violetta’s one-time lover
and admirer Alfredo meets her again at a
party after their enforced separation. There,
he challenges Baron Duphol, the new protector of Violetta, at a game of faro – that
ominous 19th century game of cards – and
wins a great sum. However, the winnings he
throws at her are not to save her honor –
they are rather, as he puts it, to “pay a whore”.
This remark is something he of course comes
to regret. He
takes
his
words back
in the last
act at her
death-bed,
when
he
understands
her motives
in professMaria Callas performs
ing love for
Guiseppe Verdi’s La Traviata. the Baron.
Faro is a crucial game in Jules Massenet’s
Manon, too. The game is played in the first
act when Manon’s cousin, who was to look
after her, forgets his commission after being invited to play cards, saying: “My love is
the Queen of Spades”. Gaming is even more
important in the third act. Manon’s former
lover, young des Grieux, is training to be a
priest. Seduced by the charms of Manon, he
stakes all the
money his father has given
him, hoping to
win the wealth
she craves. He
enjoys a winning streak,
but to no avail,
Victoria de Los Angeles’s
be cause
his
1955 recording of Manon opponent and
by Jules Massenet.
rival, Guillol,
accuses him of
cheating and calls the police. Des Grieux
and Manon are arrested as Guillol sings,
“The wise knows that gambling is an art.”
While gambling is important in Manon, it
is even more so in Puccini’s La Fanciulla
del West (The Girl of the West). Since this
opera is set in the Wild West around 1850,
the game in question is of course poker.
In the Polka Saloon the goldminers meet
to drink and play cards. The climax comes
at the end of the second act when the heroine Minnie is prepared to play a game of
life and death with the sheriff – who happens to be in love with her – in order to
save the man she loves and whom she
has hidden, the wanted bandit Ramerrez.
If she wins
two rounds
out of three,
the sheriff will
let Ramerrez
go. In the final game the
sheriff has
trips in Kings.
Minnie has
an extra ace
hidden in her
skirt, however.
Enrico Caruso (1873-1921), By cheating,
in Puccini’s opera La fanshe wins, and
ciulla del West (The Girl of
Ramerrez is
the West).
saved.
WLA magazine | No. 35 | Winter 2011 / 2012
INSIGHT
I N S I G HINSIGHT
T
Let’s stay in the US but move down south to
the Mississippi with its fabled river boats.
Traditionally, river boats have been a popular
venue for casinos and similar forms of entertainment, well illustrated by Jerome Kern’s
musical Show Boat. Magnolia, the daughter of the theatre director and river boar captain, falls in love with and eventually marries
Ravenal, a notorious but elegant and charming gambler. She gives birth to a daughter.
They leave the stage and try to live on his luck
at the green tables. For some time Ravenal
hides his bad luck from her, as highlighted in
the aria Why Do I Love You? Realizing that
his addiction
to cards will
not only ruin
himself but
also the lives
of his wife
and child, he
leaves them
to support
themselves.
Actors Annalisa Ericson and As this is a
Nils Poppe in the 1942 promusical, the
duction of Jerome Kern’s
family is – of
and Oscar Hammerstein’s
course – remusical “Show Boat” at the
united at the
Oscarsteatern in Stockholm. end.
Reunion with his beloved is also the dream
of the poor crippled black man Porgy in
Gershwin’s Porgy and Bess, set down south
among the cotton pickers at the tenement
Catfish Row. The cotton pickers meet for
their Saturday card game, eagerly supported
by the drug peddler Sportin’ Life, who leads
the players astray not only with drugs, but
also with false hopes of good luck by means
of his loaded dice. The only man who does
not get addicted to gambling is Porgy himself, who instead falls in love with Bess. But
Bess leaves him for Sportin’ Life, and the
pair go try their luck in New York.
The New York Harlem Theatre production
of Porgy and Bess.
Perhaps Porgy will meet Bess in New York
in the same quarters of “The Big Apple” that
you’ll find the petty thieves and tricksters
WLA magazine | No. 35 | Winter 2011 / 2012
of Damon Runyon’s
short stories, some
of which were put
to music by Frank
Loesser in the hit
Broadway
show
Guys and Dolls.
The main plot centers around a bet
The libretto from
that gambler Sky
the 1978 production Masterson makes
of Frank Loesser’s
with Nathan Detroit,
Guys and Dolls.
who “earns his income” by organizing
illegal dice tournaments. Sky must succeed
in taking any girl that Nathan picks for a
trip to Havana. The girl is Sarah, a young
woman working for a small Salvation Army
district office. Sky and Sarah go to Cuba, but
on their return Sarah sees her office raided
by the police, hunting for Nathan’s players.
With the office facing closure, Sky offers
anyone in the gang a thousand dollars if they
beat him at dice. However, if he wins they
will have to go to the Salvation Army to confess their sins and be reformed. No surprise,
then, that Sky wins and produces twelve sinners for Sarah. The office is saved and Sarah
and Sky can marry. But, have the sinners
really been reformed? No, or as one of the
tricksters confess: From now on I will be a
good guy – and a good gambler. Gambling
is paid tribute above all in the song The
Oldest Established.
Another kind
of establishment is Mahagonny, the
“city of nets”,
founded by
Kurt Weill, Bertolt Brecht.
three fugitives
from justice
in an American desert. In the second act
of Kurt Weill’s opera Aufstieg und Fall
der Stadt Mahagonny (Rise and Fall of
the City of Ma hagonny), with a libretto by
Bertolt Brecht, the citizens abandon themselves to total permissiveness, indulging
in wanton glut tony, drink ing, hedonistic
sex, and reckless betting. Jimmy, a lumberjack who stakes all his money on his
friend Joe in a boxing match, loses it all
when Joe is killed in the ring. Unable to
pay for this bet, and for drinks, he is sentenced to death, having committed the
worst crime in this city – and in the world
of gamblers as well – that of not being able
to settle one’s debts.
Death comes to us all, especially on the
opera stage. So it goes also in Stravinskij’s
The Rake’s Progress. In this Faust-inspired
story, Anna Trulove and Tom Rakewell fall
in love, but Tom is tempted for a life of luxury and wealth by the Mephistophelian Nick
Shadow. After Tom has enjoyed “the good life”,
Nick demands Tom’s soul at a cemetery. In an
effort to save himself, Tom suggests a game of
cards. Once more, as in the Queen of Spades,
there are three fatal cards to be picked.
But with the help of Anne Trulove’s distant
voice, Tom manages to choose the Queen
of Hearts twice, thus depriving Nick of his soul.
Defeated, Nick condemns
Tom to madness, and Tom
dies from grief. As the
curtain falls, this moral
is heard: “For idle hands,
and hearts, and minds, the
Igor Stravinskij Devil finds a work to do.”
Faro
Faro is a card game that originated in
Italy and France in the late 17th century. The game is played with a suit of
cards from Ace up to King. Players bet
on the card rank of their choice. The
dealer exposes cards in pairs, a winner
and a loser, and pays out or collects
accordingly. Its closest modern relative
is Baccarat.
Faro became very fashionable in
Europe during the eighteenth century,
owing to its fast action, easy-to-learn
rules, and better odds than most
games of chance. It had fallen out of
vogue there by 1820, but became extremely popular in America, owing to
the influx of European immigrants occasioned by the Gold Rush.
By the twentieth century, Faro had
waned in popularity in the US, possibly
owing to the incidence of cheating.
Cheating was prevalent enough that
several editions of Hoyle’s Rules of
Games began their faro section warning readers that not a single honest
faro bank could be found in the United
States! Today it is not much played,
with the last faro “bank” or table closing in 1975 in Ely, Nevada.
31
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
Integrated product management services:
The science behind sales performance
As the business of lottery becomes more complex in markets
around the globe, a lottery’s mission for sales performance
remains unchanged. Some of the highest performing lotteries
in the world have discovered that integrated product management is the driving force behind sales and profit growth.
The ever-increasing complexities of security and responsible gaming requirements,
networked technology, new retail channels
and player demographics are changing how
lotteries do business. Over the last several years, lotteries are realizing the need
for integrated product management services – from market analysis, to game development, instant ticket manufacturing,
inventory management, retail support and
in-store optimization.
From zero to CNY 20 billion
in three years
In China, where the China Sports Lottery
has become one of the fastest growing lotteries in the world, integrated product
management is the science behind the
success. Launching with 150,000 retailers
and achieving CNY 10.1 billion in sales
its first year, the China Sports Lottery is
considered one of the largest start-ups in
lottery history.
32
Interestingly, the China lottery market is very
unique. There are two competing national
lotteries and both sell similar products in
the same locations. Serving over 1.3 billion
people – 20 percent of the world’s population – the China Sports Lottery launched an
instant product with the opening of the 2008
Olympics in Beijing. In less than six months,
the Lottery has expanded from one province to all 31 provinces across China. Sales
are projected to reach nearly CNY 20 billion
by the close of 2011, almost doubling 2008’s
retail sales.
“China has a complex, competitive lottery
environment,” says Sam Wakasugi, Chief
Marketing Officer for Scientific Games
China. “From the beginning, we integrated
global best practices in the area of product
management – game design, systems, terminals, marketing, and research – every
decision has been data-based and implemented with knowledge gained from lottery
start-ups around the world. This has been
the differentiator.”
The majority of the games launched by the
China Sports Lottery have been games that
are proven best-sellers elsewhere in the world.
NBA licensed games have increased instant
sales at the China Sports Lottery.
WLA magazine | No. 35 | Winter 2011 / 2012
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
In fact, the Spotlight Game™ Golden Million
and the Gem Family of games – Ruby Red,
White Diamond, Green Emerald, and Triple
Diamond – are some of the most popular
instant games in both the U.S. and in China.
In 2011, two National Basketball Association
(NBA) licensed games are largely credited
for boosting China Sports Lottery instant
sales toward the CNY 20 billion mark. The
NBA games also had an Internet component
offering players the opportunity to enter nonwinning tickets for second chance prizes. The
Lottery had over four million entries via mobile phone connected through the Internet.
“We’re simply applying global best practices
for lottery product management. With Scientific Games’ MAP™ analytics, we’ve studied
29,000 instant games and over 1.25 million
weeks of sales data, so we know what works
and what doesn’t. Historically, when we design a game based on solid best practices and
then localize it to the market, the game is going to sell well to consumers in any country,”
said Wakasugi. “Because of our global reach,
Scientific Games has a finely tuned ear to the
lottery game culture. A game has to offer attractive play attributes, visual appeal, good
odds and be positioned properly in the market from a price and ticket size standpoint.”
installation of game management systems,
telemarketing, field sales, and retail development. Programs are customized for each lottery and may also include research, product
reviews, player analysis, inventory and distribution, sales staff training, and consultative advice on other key areas of the business.
Olifeja doubles sales
In Eastern Europe, where an expanded
partnership between Lithuania’s Olifeja and
Scientific Games began in early 2011, lottery
sales doubled in the first five months of the
integrated product management program,
exceeding expectations. Olifeja expects sales
to double again by year’s end, then double
once more in 2012.
“We tailor every CSP to meet the specific
requirements of the lottery jurisdiction,”
said Allen. “The partnership allows us to get
One of the top 10 performing lotteries in
the US, the Pennsylvania Lottery is the
only lottery in the country that exclusively
benefits the state’s older residents. Since
its first game went on sale in 1972, the
Pennsylvania Lottery has contributed more
than US$21.5 billion in services for Pennsylvania seniors, funding transit and prescription drug programs, long-term living
services, Area Agencies on Aging, and senior community centers.
“Over the 26 years that Scientific Games has
provided Cooperative Services Programs to
lotteries around the world, we have demonstrated a strong track record in responsibly increasing sales and net returns to the
lotteries’ beneficiaries,” says John Schulz,
Vice President of Cooperative Services for
Scientific Games. “Our approach is focused
on developing integrated programs for complete instant ticket product management.”
Many of Scientific Games’ best practices were
incubated in the US, beginning in the mid1980s with the concept for a customized
Cooperative Services Program (CSP) with
the highly successful New York Lottery. After
several variations, the model was brought to
Italy in 2002 and applied to the re-launch of
the instant game category known as Gratta e
Vinci. The integrated product management
approach helped drive instant ticket sales
from €411 million in 2004 to over €9 billion
in 2010. Gratta e Vinci has become one of
the biggest lotteries in the world.
The science of integration
At top performing lotteries, science is infused
into the products, systems, and processes.
Integrated product management applies an
end-to-end program to the product life cycle, building a bridge between design and
execution. This science delivers efficiencies
to the lottery and provides product value
to the player. It equips a lottery with proven
best practices to successfully manage the
complexities of an ever-evolving business
environment.
“Our CSP program is a consumer-oriented
approach that manages multiple variables
and brings end-to-end improvements and
efficiencies across the supply chain,” says
Chris Allen, Vice President, Instants Marketing for Scientific Games. “It’s about best
practices, but it’s also about innovation and
distribution expertise.”
WLA magazine | No. 35 | Winter 2011 / 2012
More funding for
Pennsylvania seniors
Fourteen years ago, the Pennsylvania Lottery
began a CSP program with Scientific Games.
Since FY 1996-97, instant ticket sales have
increased by nearly 370 percent – growing
from US$409.2 million to US$1.9 billion in
FY 2010-11.
Launching success in Italy
Scientific Games has a portfolio of products
and services that allows it to integrate product
management, including instant tickets, technology, facilities management, design and
a holistic view – we work closely with the
lottery to analyze game product, players, the
retail marketplace and supply chain from
top to bottom. It also allows us to have more
detailed conversations about opportunities
for revenue growth.”
Gratta e Vinci has become one of the
biggest lotteries in the world.
With the ability to integrate the functions
of product management, a lottery has the
greatest potential for immediate and longterm success – and most importantly, to
grow contributions to good causes in a socially responsible manner.
33
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
The New World of Retail
New technologies, shifting consumer preferences, evolving retail
operating models, and product relevance are just a few of the
variables lottery operators must continually assess to sustain and
grow sales. Often, self-service turns out to be a viable solution.
To survive in the retail world, businesses must continually respond to consumer
trends. For example, over the last decade,
retailers have adopted new service formats
to counter the effects of e-commerce shopping. As technology has enabled consumers
to purchase goods and services without having to physically visit stores, retailers have
responded by offering more convenience at
retail outlets.
34
Some of the most successful retailers across
the globe, such as Carrefour, Tesco, Metro
Group (REAL), Wal-Mart, and McDonald’s,
are all engaging with customer convenience
solutions that are proving popular and profitable. Said George Van Horn, a senior industry analyst with the market research
firm IBISWorld, “There’s a significant trend,
especially for already-established retailers.
They have bricks and mortar, they have mail
WLA magazine | No. 35 | Winter 2011 / 2012
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
order, they have a website, and more and
more they have self-service solutions as just
one more customer-convenient extension of
the brand.”
By joining the increasing number of product providers that offer self-service formats
in today’s retail world, lotteries can connect with both new players and new retail
chains. Commenting on self-service retail
solutions for the lottery sector, GTECH’s
Chief Marketing Officer Connie Laverty
O’Connor said, “Even with extremely successful interactive lottery sales platforms,
lotteries still generate 90% of their total sales
in retail locations.” She continued, “So it is
crucial for lotteries to implement solutions
at retail that offer this same extra convenience for buying lottery products.”
Self-service goes mainstream
Gone are the days when self-service was
limited to buying a candy bar or pack of
cigarettes from a vending machine. Now
that consumers are becoming more comfortable with, and even expecting, control
over how they make their purchases, retailers are increasingly providing sophisticated cost-saving self-service solutions. Today,
such self-service solutions are employed
at airports for ticket purchases and boarding passes and in checkout lanes of grocery stores and major retail chains offering
branded specialty items. By all measures,
self-service is a retail reality that is growing
in strength and prominence across a broad
range of business sectors, including:
t 4VQFSNBSLFU DIBJOT Tesco, the UK’s
largest supermarket chain, has the highest number of self-checkouts currently
installed across its branches, and the company is continuing to be pro-active in
investigating self-service solutions. For
example, according to Planet Retail, Tesco
has been testing a self-checkout-only store
in the UK since October 2009.
WLA magazine | No. 35 | Winter 2011 / 2012
t %FQBSUNFOU TUPSFT The mid-range US
department store chain J.C. Penney sells
Sephora cosmetics from self-service machines inside its stores. Macy’s, the mid
to high-range US department store chain,
was early to market in May 2008 when it
put e-Spot machines in 400 stores to sell
items such as iPods, GPS units, and headphones.
t 'BTUGPPEPVUMFUTMcDonald’s has plans
to introduce self-service ordering at 7,000
European restaurants to improve efficiency and customer convenience. McDonald’s
estimates that using self-service ordering,
the average transaction for each of its two
million daily customers will be three to
four seconds shorter. The new self-service
technology will also allow McDonald’s to
garner more information about its customers’ ordering habits.
A recent consumer survey conducted by
market research group NPD for NCR Corporation finds that consumers believe that
self-service improves the store experience.
Moreover,
t 5XP PVU PG UISFF DPOTVNFST TVSWFZFE
want self-service options when shopping.
%PFTZPVSMPUUFSZIBWFB
retail self-service strategy?
While over-the-counter sales of lottery
games continue to be essential for encouraging churn play and fostering direct communication about lottery games, self-service
solutions for lottery products stimulate sales
to new occasional players. More importantly, self-service solutions fit the requirements
of retailers that have previously opposed the
sale of lottery products in their stores.
To date, numerous hard discounters and
other retail venues continue to resist selling lottery products. By offering advanced
self-service solutions that mirror the consumer-controlled purchase mechanisms in
the marketplace today, lotteries may quickly
capture new players and increase sales.
“As lottery operators know, in order to remain
a valued product within the retail world,
lotteries must provide similar customer
conveniences to maintain and expand the
retail / lottery partnership,” asserted GTECH
ITVMS installed in Europe
1000
900
t /FBSMZ IBMG PG TIPQQFST BHFE VOEFS want stores to offer self-checkout.
750
t "QQSPYJNBUFMZ PG DPOTVNFST XBOU
stores to offer more self-service options to
improve their shopping experience.
500
The survey also asserted that retailers are
looking to self-checkout to offer consumers
a more convenient experience. Ratifying this
observation, Marshal Cohen, chief industry
analyst for the NPD Group, said “The option
of self-service, when delivered as part of a
strategic customer engagement program,
can help many retailers cater to today’s timestarved and on-the-go consumers.”
France
Italy
Switzerland
Luxembourg
Belgium*
Poland*
750
250
160
0
130
20
10
* Pilot Project
35
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
Vice President of International Marketing,
Sharon Duncalf. “The challenge is to create additional in-store sales opportunities
and enlist new retail outlets such as discount
channel stores.”
Meeting the self-service needs of lotteries
is additionally complicated by the fact that
retail self-service strategies vary tremendously from continent to continent. In the
United States, instant ticket vending machines (ITVMs) have long produced supplementary revenue when deployed in venues
such as convenience and grocery stores.
The US presence of ITVMs dates back more
than two decades, and there are now over
47,000 ITVMs in the US. Ongoing innovations, such as online ticket purchases, ensure
ITVMs remain a key self-service technology
for lotteries in North America.
In contrast, ITVMs have a far less visible
presence in Europe. At present, there are
less than 2,000 ITVMs in Europe, half of
them in France. This nuanced picture in
Europe suggests that significant opportunities for growth exist in the lottery selfservice market.
Capitalizing on the opportunity
“Interest in lottery self-service is already established in France, Italy, Switzerland and
Luxembourg, and Belgium and Poland are
engaged in assessments of GTECH self-service solutions,” said GTECH Vice President
of Product Marketing Paul Riley. Moreover,
Self-service is a valuable way for lotteries to complement their existing retail POS presence.
such solutions are proving their worth. Riley
continued, “Of the top six instant per capita
lotteries in Europe, five consider self-service
a key element of distribution and game access. Nonetheless, the opportunity still exists
for most European lotteries to define and execute a self-service strategy.”
With the success of self-service in the US
now a matter of record, the time is ripe for
the wider uptake of self-service technologies.
Cultural differences that may have previously delayed the migration toward clerk-free
transactions are fading in response to consumer demand across the globe. Explained
GTECH’s Duncalf, “By joining the increasing number of product providers that offer
self-service formats in today’s retail world,
lotteries can make tremendous strides in
connecting with both the missing younger
player demographic and new labor-sensitive
retail chains.” She continued, “Collaboration
between lotteries and retailers provides near
labor-free consumer engagement to attract
new and occasional lottery players and to
build store loyalty for retailers.”
Self-service equipment alone, however, will
not push sales if prize structures, price
points, and payout percentages need to be
recalibrated to increase interest in instant
gaming. Likewise, the right machine must
match the right trade style and local gaming
behaviors. For true organic growth of instant
products, there must be a comprehensive
assessment of the entire instant portfolio
in the context of an overarching retail selfservice strategy.
Sita Airport IT Trends Survey 2011
The value of self-service
SITA is the world’s leading specialist in air transport communications and IT solutions.
SITA’s annual Airport IT Trends Survey, delivered in partnership by Airline Business, the
Airports Council International, and SITA, combines the opinions of more than two
thirds of the world’s top one hundred airports by revenue to provide detailed insight
into the future strategy and expectations of the airport community.
The 2011 survey results show top investment priorities for airports lie in improving
customer service, with passenger self-service playing a key role in investment strategy.
Just over half the airports questioned for the Sita Airport IT Trends Survey 2011 said
they will increase the number of passenger check-in kiosks, with a quarter planning
to add new features such as the ability to print bag tags and scan travel documents.
By 2014, just over one-third of airports aim to have introduced electronic gates for
self-boarding and 42% will seek to have e-gates that carry out security checks, such
as confirming that a passenger matches their passport.
“Customers certainly appear to like it (self-service),” noted the survey report. The report
continued, “The objective for retailers is to reduce costs and improve the customer
experience.”
36
Judiciously deployed, self-service is a valuable way for lotteries to complement their
existing retail POS presence by attracting
new players, increasing impulse sales, and
solving retailer challenges. In particular, lottery vending machines are a user-friendly
and secure way to increase retailer profits
per square foot.
In sum, self-service solutions have produced
positive results for players, lotteries and retailers alike. Their convenience for consumers increases sales and fosters both player
satisfaction and store allegiance. With retailers and consumers embracing self-service,
lotteries have an opportunity to capitalize on
this important trend to expand their player
base and ticket purchase frequency.
WLA magazine | No. 35 | Winter 2011 / 2012
Games Linked
to Success
Players’ MARK®
Extended Bonus Play
Linked Bonus
Lucky Sweeps™
Cross Play
MicroBrands
GTECH Printing’s Product Innovation: Linked Bonus. You’re probably familiar with traditional progressive games,
but this is different. Our Linked Bonus feature is like no other in the industry. This latest innovation allows players to play
multiple games on one ticket and win additional bonus prizes when they win multiple games in each linked section. The
more winning games they link, the more prizes they win. It’s that easy! To learn more about Linked Bonus or to see our
complete Product Innovation Portfolio visit us at www.gtechprinting.com.
© 2011 GTECH Printing Corporation. The trademarks and logos contained in this document are marks owned by or licensed to GTECH Corporation.
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
Central monitoring systems –
The key to VLT success
User-friendly central systems
that provide high performance
and security enable lotteries to
get the most out of their video
lottery programs.
For more than two decades, video lottery
terminals (VLTs) have been a popular and
successful way for governments to raise
much-needed revenue for good causes,
whether to aide an ailing general budget
or to provide funding for specific programs
such as education. With their tremendous
revenue potential, there continue to be new
implementations in lotteries around the
world. And while the operator, the tax system, and the type and number of VLTs may
vary from jurisdiction to jurisdiction, the
key to the success of these programs is undoubtedly the central monitoring system.
When choosing a central system, it is important that lotteries select a total business solution that will be capable of handling both
the immediate and long term needs of the
operator. The system must deliver services
and equipment that will meet a lottery’s
requirements for processing performance,
data storage capacity, support, software features and functions, security, and controls.
Technological advancements also trigger
ongoing, pervasive and interactive security
processes that constantly change with specific customer needs. A VLT monitoring
system should be easily adaptable to every
security requirement. The system must be
structured with a layered security approach
that does not constrain the choice of security policies and that is not operationally
dependent on technology or vendor-specific
security solutions. This means that for every
security layer, it must be possible to implement any of the available integrity, control,
security and encryption industry standards.
Another key component of a successful central system is full redundancy, in order to
provide constant system availability and to
prevent the loss or corruption of data and the
loss of service. In the event of a hardware,
network, or software problem or failure, the
system must be able to recover with no service disruption and no loss of game processing. Also, the monitoring system should be
able to operate uninterrupted for 24 hours a
day, seven days a week, and 365 days a year.
While expandability, security, and redundancy are critical operating features, it is
equally important that the monitoring system be easy to manage. It should be able to
manage all functions in real-time through
a simplified, user-friendly interface, so that
operating personnel can easily perform
all the back-office applications, the necessary management, control and administration functions of gaming processes, and the
screening and overview of the entire gaming
network.
The iGEM solution
As gaming organizations and markets continuously evolve, service providers need the
ability to follow-through and handle change
on an on-demand basis. INTRALOT has
combined the internationally recognized superiority of its systems with its unparalleled
knowledge and experience in the local and
international arena in the design and deployment of the iGEM VLT monitoring system.
The system has all the necessary technical
characteristics that safeguard the continuous and successful operation of VLTs, and
also enables and encourages future business
expandability by its customers.
With iGEM, INTRALOT has developed full
G2S (Game to System) capability both in
large scale destination environments (racinos, casinos and large gaming halls) and
retail networks. The company is in the process of simultaneously implementing two
very different, but substantial, projects. In
Victoria, Australia, the iGEM monitoring
Expandability, security,
and redundancy
The increasingly competitive business environment and the new conditions that shape
various technological and business developments in the gaming market create a series
of new demands for the information systems
used by gaming operators.
An important aspect of these “new generation” demands for flexible gaming information systems stems from each organization’s
need for business expandability. That need
arises from both the expansion of basic business areas and through growth that leads to
additional value-added activities, such as bonusing / loyalty programs, cashless gaming,
promotional activities, wide area jackpots,
responsible gaming features, and such like.
38
Video lottery terminals (VTLs) are a popular and successful way for governments to raise
much-needed revenue for good causes.
WLA magazine | No. 35 | Winter 2011 / 2012
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
system will connect up to 27,500 devices,
while in Ohio, the system will connect up to
17,500 devices at racetracks. Both projects
comply with standards developed by the
Gaming Standards Association. INTRALOT
is also positioning itself in the upcoming
Greek VLT market by offering its monitoring system and services.
INTRALOT’s iGEM VLT monitoring system has all the necessary technical characteristics that
safeguard the continuous and successful operation of VLTs.
The iGEM system’s ability to expand as
needed ensures that INTRALOT can deploy a solution that not only handles the
way business is conducted today, but which
can also keep pace with predictable or unpredictable shifts in the way business will
be conducted in the future. For centralized
VLT monitoring systems, you need look no
further than INTRALOT’s iGEM .
Gaming and home entertainment:
A perfect match
Television is transforming from a simple device for viewing overthe-air broadcasts into an all-in-one center for interactive home
entertainment. Lotteries, with their secure and regulated operating environments, are well positioned to put this evolving technology to good use.
With well established retail networks, lotteries are always in search of new, entertaining
products and innovative distribution models, both as a means of engaging with existing players and as a means of attracting new
players. Consequently, digital technology
has become a mainstay of the strategies of
lotteries as they seek to win the hearts and
minds of their players by connecting their
target audiences with their brands.
for advertising, especially during events of
great interest such as football matches. While
sports betting has been advertised during
football matches and similar events in the
past, the ability to bet interactively during
such events themselves has largely been
missing. Two key questions thus present
themselves. Can one offer the passionate foot-
WLA magazine | No. 35 | Winter 2011 / 2012
The answer to both questions is a definite yes!
With the rapid advance of technology, TV has
evolved from a simple, single-purpose box
that receives broadcast transmissions into a
multi-purpose, interactive device that serves
as the locus for all entertainment and information purposes in the home. It provides
gaming operators with innumerable ways of
servicing their customers and expands the
customer’s range of choice endlessly.
The key to making this all work is a highly
regulated and secure operational environment. It therefore comes as no surprise that
lotteries are uniquely positioned to take the
lead in utilizing this new interactive environment. Happily, INTRALOT can help them
along the way.
As everybody knows, play, and specifically
gaming, is deeply engrained in human nature. As such, gaming operators need only
find value propositions that match players’
interests in order to achieve success. When
acting in concert, business processes and
technology produce the very best in innovative gaming and provide new avenues of user
access such as interactive television (iTV).
Since the 1960s, television has always been
the most far-reaching and popular medium
ball fan the immediate possibility of betting
from the comfort of his own sofa? And, is it
possible to offer such betting through one account integrated across all gaming platforms,
including Internet, TV, and mobile devices?
INTRALOT’s Interactive
HomeSmartPlay
INTRALOT’s Interactive HomeSmartPlay offers
the passionate football fans the possibility of
betting from the comfort of their sofas.
INTRALOT continues to invest in the development of innovative products and services
that assist lotteries in maximizing their growth
while ensuring and safeguarding their com39
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
mitment to responsible gaming and social
responsibility. For its significant investments
in this area, INTRALOT was included in the
2011 EU Industrial Research and Development
Investment Scoreboard.
cation, a shared wallet, and a single depositing
system – whether he is registered as a retail,
Internet, or mobile player. Their player identity is used across all platforms and provides
seamless business continuity for the operator.
Focusing on what it calls the ‘Universal
Gaming Experience,’ INTRALOT provides
various components that combine to form a
flexible and versatile interactive betting and
entertainment system that easily adapts to
the growing needs and lifestyles of today’s
players. The Universal Gaming Experience
positions the customer at the center of the
system, with all customer interaction points
being managed in a single and transparent
manner, irrespective of game content and
playing medium.
This iTV solution is not limited to betting
transactions. Users can quickly and easily
perform a variety of other actions in real
time, such as checking or recharging their
accounts easily and safely. The solution
maintains full traceability between channels
and the player is able to smoothly interchange between his history, wallet, and betting behavior, while allowing for 24/7 access
to the necessary government IT systems.
At the heart of the Universal Gaming Experience is HomeSmartPlay, a family of solutions launched by INTRALOT Interactive.
This new suite of solutions gives players access to an extensive sporting catalogue via
their remote control, and allows them to engage in betting by way of iTV.
For example, viewers of a televised football
match can minimize the image of the live event,
fixing it in a corner of their TV screen. The
rest of the screen can then be used to consult
the odds and place bets. There is no longer
a need for players to get up and go to their
PC, or to have a laptop or tablet always with
them. A remote control is all that is needed.
Using his unique PIN code, issued when his
account is activated, the player is just four
digits away from his winning chance.
INTRALOT Italia’s interactive TV:
A winning bet
In July 2011, INTRALOT Italia, in cooperation with Telecom Italia, signed an agreement that allows players to bet from home
via iTV using Cubovision® INTRALOT
app, part of INTRALOT’s HomeSmartPlay
Solution. Cubovision® is a broadband device
that allows access to digital terrestrial channels, Internet content, and an extensive catalog of content on demand.
INTRALOT Italia was the first operator in the
regulated Italian gaming market to design,
develop, and offer betting on a dedicated TV
device. To wager, players need to hold an
INTRALOT account, which may be activated
in a variety of ways – online via the website,
through a call-center, or through INTRALOT
points of sale. This allows even the less
Internet-savvy player the ability to enjoy the
flexibility of betting through his television.
The design of the betting system exploited
INTRALOT Italia’s branding in order to maintain continuity of user experience with the
company’s Internet platform. The graphical
presentation of the sports betting product was
also customized and optimized for the special
requirements of the television environment.
Security and transaction integrity
By utilizing the HomeSmartPlay solution,
the Cubovision® system ensures high levels
of security and transaction integrity, as required by the Italian government. Italy is one
of the first highly regulated gaming markets,
built around the concessionary model.
INTRALOT Italia is certified by the General
Informatics Company Sp.A. (Sogai), a wholly owned subsidiary of the Italian Ministry
of Economy and Finance. Sogai certifies both physical and online gaming and
manages the game schedules on behalf of
the Autonomous Administration of State
Monopolies, the government body charged
with regulating the entire gaming sector.
Just as required with online gaming operators, INTRALOT Italia instantly transmits
the gaming data placed through Cubovision®
INTRALOT app to Sogai in order to be
compliant with the applicable legislation.
By working in this highly regulated and secure operational environment, Cubovision®
INTRALOT app is able to offer players the
ultimate in iTV gaming experience.
Enhanced player experience
INTRALOT’s Interactive HomeSmartPlay
solution provides an exceptional player experience. While browsing, players are continually guided through the steps necessary
to place their bets. Players navigate through
the user-friendly menu on their TV screen,
choosing their preferred sport, championship, or match. The player then adds his
chosen bets to his coupon and confirms his
choices. All bets are validated only after the
player enters his dedicated PIN and his account is authenticated.
Players can wager on events from the comfort
and convenience of their own living room and
experience all the cross-platform mobility and
seamless integration that a lottery can offer.
The technologies used are fully integrated,
offering the player shared login and authenti40
Italian players can now enjoy home betting via Cubovision® INTRALOT app, part of
INTRALOT’s HomeSmartPlay solution.
WLA magazine | No. 35 | Winter 2011 / 2012
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
The diverse and extensive game portfolio can be delivered over PC, mobile, and retail channels.
Skilrock’s Weaver: A new breed of innovative
gaming solutions for emerging markets
With rapid changes in the lifestyle and preferences of players, it is an interesting and challenging
time for lottery operators to find and choose the right solution for their immediate and future needs.
The needs of the emerging markets and the developing markets differ greatly as do the cultural
preferences and the technology in the various global regions. While each market is distinct, there
are universal gaming needs that transcend cultural differences.
Lottery operators often face the challenge of
having to choose the right solution. The reasons for this challenge vary, be it concerns
about requiring a whole new platform, worries over integration and migration, and not
least with finding the right fit for their markets at the right price. Most of all, however,
is the need is to find a solution beyond the
proverbial ‘one shoe fits all’.
lottery and gaming operator anywhere in the
world. Weaver boasts a modular central platform around which operations and gaming
infrastructure are built. Owing to
its multi-channel access model, it
supports any type of channel operation, supporting B2B and B2C
models with ease and flexibility.
Introducing Weaver
An innovative
architecture
Inspired by the extraordinary ingenuity of
the Indian weaverbird, Skilrock developers
have come up with an innovative and practical solution – Weaver, the next generation
gaming platform. Weaver is an all-encompassing yet very modular gaming platform
that addresses the needs of diverse markets,
access channels, and emerging technologies.
It practically meets the requirements of any
Weaver introduces gaming operators to a new world of possibilities restricted only by their
imagination. Its open architecture
is based on a modular design, feature-rich applications, and entertaining gaming content. The use
of open technology ensures optimum total cost of ownership and
42
ensures that Weaver can operate in tandem
with any other solution that may be in place,
providing a path for smooth migration.
The innovative modular architecture meets any
operator’s requirements.
WLA magazine | No. 35 | Winter 2011 / 2012
CORPORATE NEWS
C O R P O R ATCORPORATE
E NEWS
NEWS
Key functionalities
The features and functionality supported by
the gaming platform are critical and important components that influence an operator’s
overall strategy. The key functionalities of
Weaver include:
t *OUFSBDUJWFDIBOOFMT.PCJMF*OUFSOFU
Internet protocol TV (IPTV).
t 3FUBJMFS DIBOOFMT *OUFHSBUFE 104 IBOE
held terminal, PC POS, kiosks, self service
terminals.
t "SBOHFPGQMVHJOHBNFT%SBXHBNFT
Scratch off cards, Instant win (online
scratch), Instant bingo / lotto.
t $PNNFSDJBMTFSWJDFT.PCJMFUPQVQFMFDtronic voucher distribution, bill payment,
micro banking / finance services.
t &YUFOTJWFCBDLPďDFGVODUJPOTPOMJOFBOE
offline reporting suits.
t &BTFPGJOUFHSBUJPOXJUIUIJSEQBSUZQSPEucts, platforms and contents.
Interactive Gaming
Interactive channels for lottery are shifting towards the ‘fun’ element for the player.
Weaver’s interactive gaming module (IGS)
has been designed for mobile platforms,
PC, and IPTV. It provides seamless features
on all the devices achieving a unified player
experience.
IGS comes with a state-of-the-art player management system that enables a
custom izable player registration process. The player management system provides identity ver i fication as
per the various reg u latory requirements.
Player seg mentation
and profiling, and responsible gaming controls, are important
features from a risk
management perspective. The player management system also
provides single e-wallet, banking, and epayment integrations.
Key marketing features
for interactive operators
are also offered. Such
features include support
for setting up a wide
range of promotion
and loyalty schemes,
marketing campaigns,
banner management,
BďMJBUFNBOBHFNFOUBOEUSBDLJOHBTFBSDI
FOHJOF PQUJNJ[BUJPO 4&0
GSJFOEMZ QPSUBM
design, and content management.
Empowering emerging
economies
With extensive experience gained in various
states throughout India, Skilrock’s capability
UPPČFSBQQSPQSJBUFTPMVUJPOTGPSUIF"GSJDBO
market has been well demonstrated across
various countries within the past three years.
Skilrock addresses the following unique requirements of lotteries in emerging market
countries:
t ćFOFFEGPSFYUSFNFMZMPXDPTUCVUSPCVTU
The deployment of Weaver in Africa.
POS terminals.
t ćFBCJMJUZUPPQFSBUFXJUIPVUBQVCMJD
cycle is very long and expensive for instant
power source for extended duration.
t "VTFSGSJFOEMZJOUFSGBDFXJUIBTIPSUUSBJO games, which often leads to high operational costs for the operators. Skilrock has come
ing time.
up with a solution called Scratch Weaver
t (BNFTUIBUSFMBUFUPUIFMPDBMQPQVMBDF
t ćFBCJMJUZUPPQFSBUFFOUJSFMZPČBWBJMBCMF (patent filed) to cut down the time and costs
of introducing new scratch games. It offers
communications media that may exhibit
extensive automation to game designers and
uptime and congestion problems.
t *OOPWBUJWFQBZNFOUDIBOOFMTBOESFUBJMFS developers of physical scratch cards, instant
channel management modules based on win, online scratch games, instant lotto/bingo games, and the like. The solution works
‘cash’ transactions.
for physical, PC, or mobile platforms.
A solid gaming package
Gaming content is a critical factor for the
successful lottery operator, especially where
interactive operations are involved. Skilrock
has a large suite of games and innovative game
designing tools that not only integrate with the
Weaver platform but also with existing platforms. Skilrock’s gaming package includes:
Scratch Weaver: The typical game designing
Skill-based lottery games: Introducing
an element of skill into a game is a means
of increasing player entertainment and involvement. Such games have found wide acceptance by lottery regulators.
Social media: Social media platforms, such
as Facebook, have become integrated in dayto-day life and have created many new business avenues. Likewise, social gaming can
CF B NFBOT PG JODSFBTJOH HBNJOH USBďD PO
your platform.
Skilrock’s Credentials
·
·
·
·
·
·
·
RNG certification from iTech Labs
CMMi Level 3 by KPMG
ISMS certified
UK GC certified
Over 25,000 POS in operations
SEZ approved Development Center
Several patents filed with WPTO.
For further information:
www.skilrock.com,
marketing@skilrock.com
Skilrock's social gaming platform.
WLA magazine | No. 35 | Winter 2011 / 2012
43
LEARNING
L E A R N I N G CCURVE
U RV E
WLA Academy – Retail markets seminar:
“Time to get back to basics!”
1. Study your players’ behavior and find soft
insights. Hard data alone will never get you
anywhere.
16–18 November 2011
Seminar in cooperation with the
European Lottery Association
Hosted by the National Lottery Ireland
Dublin, Ireland
The CEO of the National Lottery Ireland,
Dermot Griffin, welcomed more than 90
delegates from 29 countries and five continents to a two-day seminar in cozy Dublin.
In his welcoming speech, Mr. Griffin said
that the time has come for lotteries to
re-focus on best practice lottery retailing.
Everyone knows by now about growth and
development across digital channels and
social media. However, for most lotteries,
traditional retail sales are still the key to
success. Mr. Griffin described how the Irish
Lottery put strong emphasis on visiting their
3,800 retailers. According to him, lotteries
need to get on the road to meet their retailers, so that they can speak to them directly
about how to best create a fruitful, mutually
beneficial partnership.
44
And developments in lottery retail have
been impressive over the past decade. Inlane selling, rebranding of the shop, creation
of separate selling areas, digital signage in
shops, partnership deals, retailer audit, and
instant ticket vending machines were all
among the topics presented and discussed
during the seminar. The program featured
a superb blend of external retail managers
from Spar, SuperValu, and Topaz, among
others, together with lottery experts and
WLA contributors from different countries,
all sharing their best practices.
2. Look at other areas for excellence and new
ideas, not just to businesses but also to, for
example, sports or family life. For example,
Mr. Taylor recounted British Airways’ search
for better ways to get their passengers to
sleep comfortably on cross-Atlantic flights.
Instead of looking at the best flight chair design, British Airways examined the market
for luxury yachts, which business faces the
same challenge as airlines—namely, how to
get people to sleep comfortably in limited
space.
3. Define what you think are player benefits
and describe why. Use a maximum of nine
words! British Airways once defined their
benefits as “Arrive ready for business” and the
why with “More sleep. Less hassle. Refreshment.” Note that there is nothing in either of
these slogans about the product itself. Player
benefits are not equal to a list of games,
no matter how great you may find them.
Keynote speaker Hamish Taylor has impressive background experience with
large corporations like Procter & Gamble,
British Airways, Eurostar, and the United
Kingdom’s Sainsbury’s Bank. He presented
some great insights into understanding consumer behavior, and spiced up his general
principles with plenty of practical examples.
He summarized his keynote speech in four
messages:
WLA magazine | No. 35 | Winter 2011 / 2012
LEARNING
L E A R N I N G CCURVE
U RV E
Tentative schedule for all regional and
interregional lottery events for 2012
Date
Topic
Organizer
Venue / Host
Marketing seminar: “Staying on top of
the game”
EL / WLA
EL
London, UK
Creativity and game design forum
(Lottery games and services)
EL
EL
Paris, France
17–19
Workshop for non-EU members
EL
Azerlotereya SJSC
Baku, Azerbaijan
TBD
State lotteries, responsible gaming
and corporate social responsibility:
The benefits of this association
CIBELAE
TBD
Mexico
25–27
EL management
EL
Loterie Romande
Lausanne, Switzerland
2–4
Industry days
EL / Partners
De Lotto
Amsterdam, Netherlands
4
EL general assembly (members only)
EL
EL
Amsterdam, Netherlands
8–10
Sports betting seminar
EL / WLA
C.N. Loteria Romana S.A.
Bucharest, Romania
21–25
NASPL lottery leadership
NASPL
TBD
Grand Rapids, Michigan, USA
29–30
Security seminar
EL / WLA
MSL
Kiev, Ukraine
6–8
European legal affairs seminar
EL
Hvratska Lutrija d.o.o.
Croatia
11–14
Spring directors meeting
NASPL
Atlanta, Georgia, USA
16–19
Professional development seminar
NASPL
TBD
Orlando, Florida, USA
TBD
New products: Trends, channels,
and modern marketing
CIBELAE
TBD
Dominican Republic
2–7
European Lotteries University (ELU)
EL
Lottomatica S.p.A
Italy
9–12
World Lottery Summit 2012
WLA / NASPL
Loto-Quebec
Montreal, Canada
30–October 2
Responsible gaming seminar
EL
TBD
TBD
TBD
Internet and new technologies
seminar
EL / WLA
AB Svenska Spel
Sweden
12
PR / Communications workshop
EL
TBD
TBD
TBD
Information security as applied to
the integral processes of lotteries
CIBELAE
TBD
Argentina
APLA ‘12 convention
APLA
Tatts
Sydney
European legal affairs briefing
EL
EL
Brussels, Belgium
January
25–27
March
13–15
April
4. Communicate your customer promise
effectively and make it easy for your staff
to deliver. Ascertain the feelings you wish
to create, construct a single sentence that
clearly communicates your promise, and
stick to it!
May
June
Mr. Taylor’s presentation, together with the
presentations of all the other speakers at the
seminar, are available from the member area
of the WLA website. The WLA would like to
thank Dermot Griffin and the Irish National
Lottery for all of their work in planning the
seminar and for having created a comfortable and fruitful atmosphere both for learning and for networking.
July
September
October
November
TBD
December
TBD
TBD = to be determined
WLA magazine | No. 35 | Winter 2011 / 2012
45
OUR CONTRIBUTORS
O U R C O N TOUR
R I B U TO R SCONTRIBUTORS
Many thanks to our PLATINUM Contributors
Many thanks to our SILVER Contributors
WLA MAGAZINE is published by:
The World Lottery Association
Lange Gasse 20
P.O. Box
CH-4002 Basel, Switzerland
www.world-lotteries.org
- the best bet
46
Publication Director: Jean Jorgensen,
WLA Executive Director
Editor: Paul Peinado,
WLA Communications Coordinator
Contributing Editors: Matthew Spinks,
Assistant Communications Coordinator;
Patricia McQueen; and Göran Wessberg
Print: Werner Druck AG, Basel,
Switzerland
Layout: 3satz GmbH, Thalwil,
Switzerland
WLA magazine | No. 35 | Winter 2011 / 2012
The Future of Gaming
Moving beyond the technology limitations of standalone gaming machines to a library of games
dynamically configured, managed, deployed and optimised by you for your different venues and
players results in a truly improved player experience and ultimately improved yield performance.
LOTTO
KENO
SCRA
TCH
SPOR
TS
Convergence
$
Gam
ing
Lottery
Integration
In Venue
VLT
Casino
Back
Office
Unified
Player View
Multiplayer
Wireless
Secure
Transactions
Other
Systems
Online
Game Library
Multiplayer
Internet - PC
Mobile
Multiplayer
i-TV
Multiplayer
TruJackpoting
TruGames
TruFlexibility
Exciting Wide area and
in-venue Linked Jackpot
Progressive games
Market leading game
content from Aristocrat
Custom gaming your way,
Game Development Kit
supports 3rd party games
TruReliability
TruPerformance
TruServices
Proven 24/7 operation
High performance Server
architecture
Comprehensive services
including installation,
maintenance and support
TruMarketability
TruManagement
TruResponsibly
Centrally managed
marketing and promotions
campaigns
Centralised management,
decision support,
monitoring and reporting
Extensive and easily
adaptable Responsible
Gaming framework
© 20
2 11 A ris
rist
stocra
st
o t Techno
Techn logiies Austr
trral
a i Ptyy Lim
alia
Li ited
tedd. Aristo
Aristo
is cratt, AAristo
istocrat
crat Lot
o teries,
s TruS
Tru erv
errvv and
and
nd the Aris
Aristocr
tocrat Lotte
L ot ries log
ogoo aare tr
tradem
a
adem
arks
rks oor regis
egister
ereed
trademar
marks
mar
ks of Aristo
tocrat
cr Tec
Technol
o ogie
giees Au
Australia
stra ia Ptyy Li
Limi
m ted.
tedd AL1111
1122