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"INNOVATING AND REINVENTING" - European Lotteries

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News 40<br />

Magazine of the european <strong>Lotteries</strong>, 2012, septeMber<br />

"<strong>INNOVATING</strong><br />

<strong>AND</strong><br />

REINVENTING"<br />

Content:<br />

1. Foreword<br />

3. Editorial<br />

4. Innovating and Reinventing<br />

8. Legal<br />

10. Premium Partners<br />

13. New Members<br />

17. Activities


ageNda 2012<br />

SePteMBeR<br />

• Joint EL / WLA intErnEt &<br />

nEW tEchnoLogiEs sEminAr<br />

(InCLUdIng onLIne PokeR)<br />

Dates: 25-27 September<br />

Location: Stockholm / Sweden<br />

Host: AB Svenska Spel<br />

tHe eURoPean LotteRIeS<br />

PReSIdent<br />

Dipl. ing. friedrich stiCKLer<br />

Deputy Ceo<br />

austrian <strong>Lotteries</strong>, austria<br />

1St VICe-PReSIdent<br />

Mr. Christophe bLanCharD-DignaC<br />

Chairman and Ceo<br />

La franÇaise Des JeuX, france<br />

2nd VICe-PReSIdent<br />

Mr. tjeerd Veenstra<br />

Director<br />

De Lotto, netherlands<br />

oCtoBeR<br />

• rEsponsibLE gAming sEminAr<br />

Dates: 9 (afternoon) and 10 (all day) October<br />

Location: Budapest / Hungary<br />

Host: : Szerencsejáték Zrt.<br />

• pr & communicAtion Workshop<br />

Date: 11 October<br />

Location: Budapest / Hungary<br />

Host: Szerencsejáték Zrt.<br />

MeMBeRS oF tHe BoaRd<br />

Mr. torbjørn aLMLiD, ph.D.<br />

president and Ceo<br />

norsK tipping as, norway<br />

Dipl.-Kfm. hansjörg hÖLtKeMeier<br />

Member of the Managing board<br />

DeutsChe KLassenLotterie ber-<br />

Lin, germany<br />

Mr. franci KriŽan<br />

Member of the board<br />

LoteriJa sLoVeniJe D.D., slovenia<br />

Mr. José Miguel MartÍnez MartÍnez<br />

president<br />

soCieDaD estataL LoterÍas Y<br />

apuestas DeL estaDo, spain<br />

agenda<br />

Mr. fernando paes afonso<br />

Vice-president<br />

santa Casa Da MiseriCÓrDia De<br />

Lisboa, portugal<br />

Mr. ivan pitteViLs<br />

Chief executive officer<br />

nationaLe LoteriJ, belgium<br />

Mr. Marco saLa<br />

Ceo & Managing Director Lottomatica<br />

group spa<br />

LottoMatiCa spa, italy<br />

Ms. Dianne thoMpson, Cbe<br />

Chief executive<br />

CaMeLot uK <strong>Lotteries</strong> LtD.,<br />

united Kingdom<br />

noVeMBeR<br />

• rEtAiLing Workshop<br />

Date: 6 November (one day meeting)<br />

Location: Paris / France<br />

With the support of La Française des<br />

Jeux<br />

don’t MISS oUt on a UnIQUe oPPoRtUnItY to IMPRoVe YoUR RetaIL StRategY!<br />

timE is ticking - rEgistEr noW For EL rEtAiL Workshop<br />

You asked for it and we are delivering!<br />

After the excitement generated by our Retail Seminar in Dublin last November among all participants, you asked us to set up<br />

a regular meeting strictly focused on Retail. In response, we are offering a one-day Workshop in Paris on November 6, 2012,<br />

hosted by La Française des Jeux.<br />

Today’s marketplace is about changes happening on a daily basis and this meeting will emphasize retail adaptability – an<br />

essential factor for <strong>Lotteries</strong> and their retailers in order to survive a difficult economic environment, heavy competition and<br />

quickly changing consumers’ habits.<br />

If you want to gain invaluable insights, benchmark your own experiences against those of other lotteries and participate in<br />

challenging discussions with out-of-the-box ideas on new retailing methodologies and strategies, this workshop will answer<br />

all your questions.<br />

REGISTER ONLINE AT: www.european-lotteries.org<br />

Registration for all our seminars can be made online at http://www.european-lotteries.org<br />

All events are available on our website (under events). Announcements are made a few months in advance.<br />

© copyright photo front page: société de la Loterie de la suisse romande<br />

geneRaL SeCRetaRIat<br />

Ms. bernadette LobJois<br />

secretary general<br />

av. de béthusy 36<br />

Ch – 1005 Lausanne<br />

tel. +41 21 311 30 25<br />

fax +41 21 312 30 11<br />

http://www.european-lotteries.org<br />

email info@european-lotteries.org<br />

the european <strong>Lotteries</strong> news septeMber 2012


foreword<br />

deaR eL MeMBeRS,<br />

deaR FRIendS,<br />

Lottery operators owe it to themselves<br />

to be at the forefront of innovation and<br />

the same is true for our association. We<br />

thus are excited to present you the results<br />

of our internal survey on new projects,<br />

changes, challenges and innovative<br />

approaches for our lotteries in this<br />

edition of the EL magazine. The results<br />

of this survey will be of great use to define<br />

the future work programme of our<br />

association and allow each lottery operator<br />

to learn from the colleagues on the<br />

challenges and opportunities faced and<br />

how they handle them. I warmly thank<br />

all our members who have taken the<br />

time to contribute to this survey.<br />

We now approach the last quarter of the<br />

year 2012. I believe the most important<br />

achievement of our association in the<br />

past months is the publication of our<br />

White Paper on a Sound and Sustainable<br />

Gambling Policy for the Benefit of<br />

Society that we shared with <strong>European</strong><br />

policy makers in July, clearly stating our<br />

position ahead of the political discussions<br />

that we can expect in the autumn.<br />

In the Paper, we stress that protecting<br />

<strong>European</strong> consumers against illegal operators<br />

that flood the <strong>European</strong> markets<br />

with dangerous products should be the<br />

first and foremost aim of any action at<br />

<strong>European</strong> and at the national levels.<br />

Building on our four principles subsidiarity,<br />

integrity, precaution and solidarity,<br />

it outlines seven key demands<br />

towards the <strong>European</strong> institutions and<br />

Member States. We demand that the<br />

sustainable contribution of lotteries to<br />

society be taken into account in all discussion<br />

at EU level, in line with the 2010<br />

Council conclusions. We notably call for<br />

more effective enforcement, the protection<br />

of sport integrity and that the EU<br />

institutions should recognise the primary<br />

competence of Member States in<br />

the field of gambling.<br />

The White Paper forms a solid basis<br />

for our future engagement with policy<br />

makers. I urge you to also share it at<br />

the national level with the policy makers<br />

in your country. I believe this paper<br />

positions us ideally for the many challenges<br />

that lie ahead. My special thanks<br />

go to all the working group members<br />

that have been involved and to my colleagues<br />

in the Executive Committee for<br />

our fruitful discussion on what key ideas<br />

we should advance.<br />

The <strong>European</strong> Commission is now expected<br />

to publish its Action Plan on online<br />

gambling this autumn. The Commission’s<br />

activity on gambling will now<br />

intensify even further and the Commission<br />

will set up an expert group in which,<br />

we have learned, Member States will be<br />

represented. It will be essential that all<br />

of us are in close contact with the representatives<br />

of our Member State in this<br />

expert group. The Commission’s Action<br />

Plan will also lead to political discussions<br />

in the <strong>European</strong> Parliament, and<br />

probably in the <strong>European</strong> Economic<br />

and Social Committee. Our association<br />

has learned a lot from our successful<br />

participation in these debates in the<br />

past and we must ensure that our message<br />

is heard loud and clear once again<br />

in the forthcoming discussions.<br />

ForEWord<br />

Our association will thus once again<br />

have a busy autumn. Of course, the internal<br />

work does not stand still and we<br />

will have the opportunity to learn from<br />

each other and from prominent speakers<br />

at the different seminars that our<br />

association is organising. In particular<br />

we can look forward to a meeting of<br />

our different working groups in October,<br />

from which we hopefully will learn<br />

how our working groups can coordinate<br />

together even better and create further<br />

synergies for the benefit of the entire association<br />

and all its members.<br />

I look forward to all of us continuing our<br />

work together this autumn.<br />

1 the european <strong>Lotteries</strong> news septeMber 2012<br />

Friedrich STICKLER<br />

EL President


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editorial<br />

a BUSY SUMMeR oF<br />

MeetIngS<br />

Apart from finalising its White Paper on<br />

a Sound and Sustainable Gaming Policy<br />

for the Benefit of Society, EL was also<br />

very much involved in sports developments<br />

throughout the summer. To continue<br />

defending the integrity of sport,<br />

two major projects have emerged to<br />

which EL responded positively:<br />

ICSS\SORbONNE SPORT INTEGRI-<br />

TY PROGRAmmE mEETING<br />

The International Centre for Sport Security<br />

(ICSS), an organisation based in<br />

Doha, Qatar seeks to become a global<br />

hub of expertise in the field of sport security,<br />

safety and integrity. In that optic,<br />

it recently signed a partnership with the<br />

Pantheon-Sorbonne University in Paris.<br />

Within the framework of their partnership,<br />

the two organisations held a meeting<br />

in Paris on June 26, bringing various<br />

experts together in order to lay down the<br />

foundation of an international sports<br />

integrity contribution. There was a wide<br />

range of high-profile participants (both<br />

academics and practitioners), including<br />

representatives from the IOC, UNESCO,<br />

Interpol, FIFA and UEFA.<br />

EL was represented at the meeting and<br />

its expertise recognized. The Chair of<br />

the meeting praised our contribution to<br />

sports integrity, indicating that <strong>Lotteries</strong><br />

have succeeded in establishing themselves<br />

as a responsible model. EL, also<br />

represented at the September meeting,<br />

submitted a document about the priority<br />

measures that could be taken against<br />

match fixing by the organisers.<br />

IRIS - INSTITuTE Of INTERNATION-<br />

AL ANd STRATEGIC RELATIONS<br />

In addition to its strong presence at the<br />

ICSS meetings, EL recently joined forces<br />

with IRIS with regard to the recent call<br />

for proposals by the <strong>European</strong> Commission<br />

to identify and test suitable networks<br />

and good practices in combating<br />

match fixing in sports.<br />

IRIS, a non-for-profit organisation<br />

based in Paris, submitted a proposal<br />

with particular intent to raise awareness<br />

among national sport authorities<br />

on the match-fixing phenomenon.<br />

By organising national workshops in all<br />

EU states to increase awareness among<br />

sport authorities, IRIS aims at enhancing<br />

information sharing, exchange of<br />

best practices and better coordination<br />

to fight match fixing at a national scale.<br />

Given the EU requirement for private<br />

funding for at least 40% of the project,<br />

IRIS asked EL to contribute, which of<br />

course we obliged. We then proposed<br />

that each Lottery within the EU bear the<br />

costs of the national seminars organised<br />

by IRIS.<br />

I take this opportunity to wholeheartedly<br />

thank the EL members<br />

who answered favourably our call.<br />

SportAccord, ENGSO, Salford University<br />

and Sport & Citizenship are also part<br />

of this project, which, if accepted by<br />

the <strong>European</strong> Commission, will bring<br />

a significant contribution to the fight<br />

against corruption in sport.<br />

We expect to hear from the <strong>European</strong><br />

Commission in October and we will<br />

keep you posted about any progress regarding<br />

this project.<br />

OThER buSINESS<br />

For the remainder of 2012, the following<br />

seminars are in preparation:<br />

Responsible Gaming Seminar in<br />

budapest on October 9 and 10<br />

This seminar will focus on best practices<br />

in responsible gaming: “PLAY SAFE”.<br />

But this year we aim to simplify the cer-<br />

edItoRIaL<br />

tification process as much as possible.<br />

We want to make it easy for you to “JUST<br />

DO IT!”<br />

EL’s objectives are to have all Members<br />

certified and all participants will receive<br />

any assistance and material to begin the<br />

process.<br />

Public Relations & Communications<br />

Workshop on October 11 in budapest<br />

“Communicating the importance for<br />

society of State <strong>Lotteries</strong>”<br />

With the participation of Mr. Clarence<br />

Mitchell as keynote speaker<br />

Clarence Mitchell is Managing Director<br />

at Burson-Marsteller in London, providing<br />

strategic counsel to corporate<br />

and public affairs clients. Previously,<br />

Mr. Mitchell had been Director of the<br />

UK Government’s Media Monitoring<br />

Unit leading a team that advised No.<br />

10 Downing Street and all of the major<br />

Government Departments on how best<br />

to respond to the daily news agenda.<br />

Lottery Retailing Workshop: Reinventing<br />

Retail … Think Retailer!<br />

Following up the success of the EL Retail<br />

Seminar (“Time to get back to Basics!”)<br />

in Dublin in November 2011 and<br />

at the participants’ request, a one-day<br />

meeting will be organised in Paris on<br />

November 6, 2012. This will give participants<br />

the opportunity to continue their<br />

discussion and exchange experiences<br />

on retail sales.<br />

The 2013 programme is in preparation<br />

and a complete list of events will be<br />

available in the next issue. If you would<br />

like to organise an event, just let us<br />

know and we will be pleased to provide<br />

you all needed information.<br />

3 the european <strong>Lotteries</strong> news septeMber 2012<br />

Sincerely yours,<br />

Bernadette Lobjois<br />

Secretary General


InnoVatIng and ReInVentIng<br />

tHe LotteRY ModeL:<br />

In a world that is changing rapidly, lottery organizations<br />

have arrived at an inflection point, as most analysts<br />

indicate. EL has been preparing its Members for<br />

the changes that need to be implemented and looking<br />

back at the Industry Days in Amsterdam in May<br />

2012, all speakers have emphasized the necessity to<br />

fit in a world now dominated by social media and<br />

economically challenged. Two essential factors seem<br />

to show more interest for lotteries: innovation and<br />

sustainability. State <strong>Lotteries</strong> are traditional business<br />

models due to legal restrictions, but a new direction<br />

must be applied among heightened competition and<br />

pressure to raise funds by cash-strapped governments.<br />

Does that mean lotteries have to reinvent their whole<br />

approach? Probably not, but a critical look at what<br />

has been done so far and the necessity to enhance<br />

game operations will more likely be on many agendas.<br />

We have asked <strong>Lotteries</strong> to tell us what measures<br />

they are taking to remain viable in an uncertain future.<br />

CREATING AN ENVIRONmENT ThAT IS fuN,<br />

SAfE ANd fRESh<br />

LCDF-2012_F200-p2v1-FR+df.pdf 1 16.07.12 16:12<br />

NOUVEAU<br />

BILLET & JEU TV<br />

www.graphicdepartment.ch<br />

CDLF-2012_ANNONCE-210x297 copy.pdf 1 19.07.12 11:29<br />

NOUVEAU<br />

NOUVEAU<br />

BILLET & JEU TV<br />

BILLET & JEU TV<br />

1 MILLION<br />

à la clé !<br />

Démarrez l’aventure avec le<br />

nouveau billet et participez<br />

au jeu TV dès janvier 2013 !<br />

Billet disponible dès maintenant dans<br />

vos points de vente Loterie Romande.<br />

Lottery games are consumer products that are affected<br />

by consumers looking for the newest experiences.<br />

Fun is one of these experiences that the lottery world<br />

has mastered over the years. Loterie Romande in<br />

Switzerland for example will soon launch a new project<br />

that highlights this fact: “Les Clés de la Fortune”<br />

is a new TV game that is based on a totally redesigned<br />

structure making it more entertaining both for the<br />

players and the viewers, while emphasizing the sale<br />

of scratch-tickets. Fun can also be provided via online<br />

features such as a live chat enabling more player<br />

interaction as it is offered in Finland by Veikkaus<br />

with eBingo. In the Bashkortostan Republic, Ural<br />

InnoVatIng and ReInVentIng<br />

www.graphicdepartment.ch<br />

Loto chose to present a large array of different lottery<br />

games to enhance a player’s experience through<br />

a diversity of play choices.<br />

While players like to be entertained, they also require<br />

and expect a safe and stable play environment. State<br />

<strong>Lotteries</strong>, subject to strict government regulations,<br />

are socially conscious business models, making every<br />

effort to provide secure products without excess<br />

in a responsible way. Santa Casa da Misericórdia de<br />

Lisboa in Portugal is taking actions to limit the risks<br />

surrounding their activities. Development of new<br />

communication channels, improvement in both<br />

operation efficiency and profitability and increase<br />

in the diversification of game portfolio cannot be<br />

achieved without a conscious obligation among all<br />

actors – Lottery staff, retailers, agents, suppliers – to<br />

offer games in a social responsible manner and in<br />

complete agreement with the organization’s security<br />

requirements. New ways of betting on the Internet or<br />

via mobile devices are inevitable in Portugal and to<br />

ensure Santa Casa da Misericórdia de Lisboa’s invest-<br />

4 the european <strong>Lotteries</strong> news septeMber 2012


hoW to gEt thE right bALAncE?<br />

ment in integrity and security, the Lottery is working<br />

on the use of a Lottery Smartcard that will allow players<br />

to access safe, easy and secure online services. In<br />

Hungary, security is maintained by Szerencsejáték<br />

Zrt. through three main actions: develop a centralized<br />

knowledge sharing to improve staff’s efficiency;<br />

regular training and support via educational material<br />

to help the sales network emphasize its impact<br />

on the public; and offer public education to increase<br />

players’ awareness of the Lottery’s game procedures<br />

and its social programs. In the Czech Republic, the<br />

revamped Sazka sázková kancelář a.s. requires that<br />

all game development follow the implementation of<br />

the newly formulated “best practices,” an essential<br />

feature to maintain consumer confidence in the Lottery.<br />

With the whirlwind of novelties spurred by a constantly<br />

updated technology, consumerism for new<br />

products has reached new heights. <strong>Lotteries</strong> are<br />

subject to these changing trends and must continually<br />

offer fresh products to keep their players happy.<br />

The vast opportunities provided by the Internet and<br />

the viral effect of social media have revolutionized<br />

the traditional economic model of “supply and demand.”<br />

Now consumers focus on products that fit<br />

their vision of “the new, the fast, the fun and the responsible”.<br />

<strong>Lotteries</strong> have to provide all that in order<br />

to remain competitive. To answer this new consumer<br />

dynamics, Loterie Nationale in Luxemburg is now<br />

offering new games including Horse Betting to respond<br />

to a larger player base. In the same optic, the<br />

Lottery has decided to modernize its sales network<br />

with state-of-the-art terminals to optimize the interactivity<br />

between retailer and player. Športna Loterija<br />

in Slovenia is adopting new Internet games and<br />

mobile applications with implementation of new<br />

InnoVatIng and ReInVentIng<br />

POS technology such as self-service terminals. In its<br />

search for effective ways to sway younger players,<br />

ONCE (Organización Nacional de Ciegos Españoles)<br />

has adopted mobile technology, which now offers<br />

applications on Smartphones for informational purposes<br />

as a first step. With the opening of the online<br />

gambling market in Spain and the slew of new operators<br />

presenting Sports Betting, Poker, Bingo and Casino<br />

games on Internet, ONCE has also introduced<br />

the Euro-Jackpot to add added value to its portfolio.<br />

Although its Lotto 6/49 has remained extremely popular,<br />

Saarland Sporttoto GmbH in Germany has decided<br />

as well to refresh the look to its portfolio by offering<br />

the Euro-Jackpot. Internet game distribution<br />

being allowed now in Germany, Saarland is revitalizing<br />

its technology with a brand new central wagering<br />

system based on the AEGIS software. Toto-Lotto<br />

Niedersachsen GmbH, in the wake of the opening of<br />

the Internet gambling market in Germany, is preparing<br />

to replace its now obsolete terminals and implement<br />

in 2013 a new central system as well: this will<br />

bring many changes in the Sports Betting arena. In<br />

Romania, along with new break-open and scratch<br />

tickets, Loteria Romana S.A. is studying the opportunities<br />

presented by new points of sale in malls, supermarkets<br />

and other shopping centers.<br />

KEEPING INNOVATION COmING<br />

Keeping innovation going for a long time is a main<br />

difficulty for any lottery. In a fast changing world,<br />

what is innovative one day might be “old” the next.<br />

It has become really hard to maintain the interest of<br />

regular players and it is a challenge to find ways to<br />

attract new players among the younger generation. It<br />

is undeniable that innovation creates success. Santa<br />

Casa da Misericórdia de Lisboa is focusing on business<br />

intelligence, digital technology and game diversification<br />

to present entertaining solutions to its<br />

5 the european <strong>Lotteries</strong> news septeMber 2012


player base while securing a reliable source of revenue<br />

to good causes. For Loterie Romande, one of the<br />

key elements is creativity, which is at the source of<br />

innovation. It is an integral part of the game development<br />

but it also allows a lottery to rethink everything<br />

that has been done: this is a collective effort within<br />

the organization by all departments. New game formats,<br />

even if they are important and necessary, might<br />

not always lead to commercial success; what is most<br />

effective at Loterie Romande is an innovative and<br />

unusual presentation of a simple and known game<br />

format. At Veikkaus, innovation must also permeate<br />

the entire organization and everyone - from marketing<br />

to responsibility evaluation, from customer service<br />

to even customers and sales agents - must take<br />

part in the brainstorming of ideas for new products.<br />

In Azerbaijan, Azerinteltek CJSC follows a similar<br />

approach by creating enthusiasm for new projects<br />

among its staff and retailers. For some organizations,<br />

the upgrade of game formats such as Odds Betting in<br />

the Czech Republic or in Germany is a necessary innovation<br />

to reach a larger market share.<br />

For others such as the Loteria de Catalunya or Ural<br />

Loto, innovation goes beyond new game development:<br />

it can be used within distribution channels;<br />

it could also be new options such as extra numbers<br />

added to a Lotto or additional prize categories or<br />

even an increase of the jackpot. Innovative approach<br />

can include a newly defined communication and<br />

marketing campaign via social media networks or<br />

the Internet. In Israel, the staff at Winner-Toto considers<br />

innovation a tool to progress: throughout the<br />

organization, the mantra is innovation or stagnation.<br />

That forward attitude has led the team to rethink the<br />

game portfolio and introduce new Odds Betting options<br />

with handball, tennis, motor sports, baseball<br />

InnoVatIng and ReInVentIng<br />

and American football: a little bit of everything for<br />

everybody to reach a broader audience!<br />

ChALLENGES fOR A SuSTAINAbLE fuTuRE<br />

Today’s economic situation, high unemployment<br />

and reduced discretionary income do not presage an<br />

optimistic future for the lottery market. In addition, a<br />

lot of <strong>European</strong> countries are seeing new legislations<br />

favoring an open market to allow more gambling operators<br />

competing for a share of the national market<br />

such as in Spain or in the Czech Republic for example.<br />

The challenges to survive and establish a sustainable<br />

future are many and some organizations are introducing<br />

changes essentially to stabilize their market<br />

share. As a way to consolidate its stakes in the face<br />

of increased competition, Sociedad Estatal Loterías y<br />

Apuestas del Estado (SELAE) in Spain has focused its<br />

attention to improving its existing game operations<br />

through a broad restructuration: a new central system<br />

AGIL to manage all games; a new prize structure<br />

and the adjunction of a Joker option for the Primitive<br />

game to make it more attractive; new game formats<br />

with Oddset, Sports Betting and Horse Betting and<br />

even making its famous “El Gordo” game available<br />

at international level by signing contracts with game<br />

operators in other countries. Other lotteries are looking<br />

into expanding their own sales networks by collaborating<br />

with other retail networks in places where<br />

people tend to spend a lot of time such as supermarkets,<br />

gas stations, malls and other large shopping<br />

centers. In Romania, Loteria Romana S.A. is working<br />

on such implementation in the next few months<br />

while knowing that many challenges will rise with an<br />

extended network. In Germany, both Saarland Sporttoto<br />

and Toto-Lotto Niedersachsen know they need<br />

to innovate in order to cope more efficiently with the<br />

new online competition: changes might create some<br />

6 the european <strong>Lotteries</strong> news septeMber 2012


difficulties at first especially with ODDSET due to the<br />

recent partial privatization of the Sports Betting market,<br />

but their participation in the Euro-Jackpot that is<br />

offered by several of their <strong>European</strong> neighbors is seen<br />

as a positive new step. Repackaging to highlight the<br />

entertaining aspect of games is sometimes all that is<br />

needed to rekindle players’ interest in simple games,<br />

as Loterie Romande has experienced. The Lottery’s<br />

main challenge is to successfully promote the dream<br />

and add some spice to people’s lives, and to arrive to<br />

that, the organization has to find fit solutions for its<br />

own market and culture.<br />

For some such as Santa Casa da Misericórdia de Lisboa,<br />

the current gloomy economy and social situation<br />

might in fact present opportunities. The crisis<br />

can actually bring the Lottery to reinvent its own future<br />

by being more creative and smart about choices.<br />

At Loterija Slovenije, one way to address the decline<br />

in purchasing power is to increase cooperation with<br />

players by involving them in most lottery activities<br />

and making sure the offers provide benefits to the<br />

players. In Catalonia, more prize categories might<br />

have a positive impact, as games will offer more<br />

winning opportunities to more people. Ural Loto is<br />

expecting strong competition in the next few years<br />

from new operators and especially in the Sports Betting<br />

market with the 2014 Sochi Olympic Games.<br />

Therefore to increase consumer confidence in the<br />

Lottery, the organization will have to rely on strong<br />

partnerships with retailers: the challenge will be to<br />

find best methods to motivate this sales network<br />

starting with better reward programs for the store<br />

owners and their staff. While Winner-Toto is expecting<br />

growth in Israel, there is no doubt that the illegal<br />

betting sector is getting stronger. Therefore, the way<br />

to address this threat will be to launch betting offers<br />

on the newest platforms presented by Internet and<br />

the mobile industry. With that will come the challenge<br />

to market and implement these new platforms<br />

in the shortest time possible to fulfill quick changing<br />

consumer needs. Veikkaus feels the same way and although<br />

using social media to expand customer base<br />

is a necessary step toward growth, there is a risk presented<br />

by rapid increase in customer transactions.<br />

Even though the customers’ growing needs are met<br />

by reforming and improving lottery operations, the<br />

gaming system structure becomes subject to additional<br />

requirements.<br />

Changes are necessary within each lottery organization<br />

to fight either illegal operators or newly author-<br />

InnoVatIng and ReInVentIng<br />

ized private operators. Also with less discretionary<br />

income, more players are less interested in spending<br />

money especially for products selling “dreams”.<br />

These are the facts commonly described in Europe<br />

as the most imminent challenges. One particular<br />

comment that all lottery organizations shared is that<br />

innovation makes a bigger difference when it is applied<br />

in a balanced manner to the business model<br />

rather than to products or operations. <strong>European</strong> <strong>Lotteries</strong><br />

Members are fully conscious of the fact that it<br />

is more important to innovate in areas where competitors<br />

cannot act: for example engaging customers<br />

with direct and clear communication, emphasizing<br />

the impact of purchasing a lottery ticket on good<br />

causes supported by a Lottery or using social media<br />

to precisely demonstrate a Lottery’s return to the<br />

community.<br />

Each organization that has been interviewed for this<br />

article has offered similar conclusion: a State Lottery<br />

offers strong arguments in providing safe games to<br />

the public through highly responsible operations<br />

and strong support to society. With a little bit of creativity<br />

and the right amount of innovative approaches,<br />

they all are confident of a sustainable future even<br />

in difficult times.<br />

7 the european <strong>Lotteries</strong> news septeMber 2012


tHe tReatY on tHe eURoPean UnIon and<br />

tHe tReatY on tHe FUnCtIonIng oF tHe eU<br />

and tHe CoMPetenCe on LotteRIeS :<br />

AppLying thE principLE oF conFErrAL?<br />

During the Competitiveness Council<br />

of 10 December 2010 the Council<br />

adopted with unanimity conclusions<br />

whereby the specific role of <strong>Lotteries</strong><br />

was recognized. Important in that<br />

regard was the heading of the Lottery<br />

paragraphs of the conclusions that<br />

were speaking about “the sustainable<br />

contribution of lottery and related<br />

services to society”.<br />

It is worth to recall here the exact<br />

wordings of the conclusions in order to<br />

put them into perspective.<br />

13. RECALLS that all Eu member<br />

States have different types of state<br />

lotteries or lotteries licensed by<br />

the competent state authorities,<br />

providing lottery services.<br />

14. NOTES that a few member States<br />

temporarily or permanently<br />

authorize smaller scale lotteries<br />

for the benefit of charitable or<br />

philanthropic purposes. In the<br />

same manner, certain member<br />

States allow for other games of<br />

chance to fund such benefits.<br />

15. RECOGNIZES that contributions,<br />

in particular from state lotteries or<br />

lotteries licensed by the competent<br />

state authorities play an important<br />

role for society, via for example the<br />

funding of good causes, directly or<br />

indirectly where applicable.<br />

16. AGREES that this specific<br />

role should be recognized in<br />

discussions at the <strong>European</strong> level.<br />

The wording of these conclusions is very<br />

important and reflects the discussions<br />

in the Council Working Group. First of<br />

all it recognizes the fact that there is a<br />

“sustainable contribution”. Second it<br />

admits that the contribution comes<br />

through “lottery and related services”.<br />

This issue was mainly raised by a number<br />

of Member states where other gambling<br />

services, like sport betting, are part of<br />

the operators'activities that contribute<br />

to society, whether this is through a state<br />

monopoly or other structure. Indeed<br />

the Council recognizes that there are<br />

“different types” of state lotteries or<br />

lotteries licensed by the competent<br />

state authorities, distinguishing these<br />

type of operators from the smaller scale<br />

lotteries mentioned in §14. The Council<br />

recognizes that the contribution made<br />

by the first group (mentioned in §13),<br />

plays “an important role for society”<br />

via “for example the funding of good<br />

causes, directly or indirectly where<br />

applicable”.<br />

The funding, direct or indirect of good<br />

causes is an example of the contribution<br />

for society. By stating this, the Council<br />

admits that there are different ways of<br />

funding good causes, but also that the<br />

contribution for society exceeds the<br />

issue of funding. Implicitly the Council<br />

admits that state lotteries have an<br />

active channeling role and protect the<br />

consumers through the model they<br />

operate games. The state lottery model<br />

is clearly the crucial element in this<br />

debate.<br />

In today’s world the Lottery model is<br />

indeed more relevant than the games<br />

they offer. Indeed scratch tickets on<br />

line are look-alikes of slot machines on<br />

line. Sport betting is offered by <strong>Lotteries</strong><br />

and by commercial online operators.<br />

The games are no longer the “summa<br />

divisio” between the <strong>Lotteries</strong> and the<br />

remote gambling operators. Actually,<br />

as the CEO of one of the biggest Lottery<br />

operators in the world said, the model<br />

behind their business is becoming the<br />

most relevant factor distinguishing<br />

<strong>Lotteries</strong> from commercial operators.<br />

The Lottery model is indeed a “social”<br />

model whereby the non economic<br />

aspects are as important as the business<br />

aspects. <strong>Lotteries</strong> operate large scale<br />

and low risk games creating fun for<br />

a large community of citizens who<br />

realize that by playing these games they<br />

contribute to society. In their various<br />

formats <strong>Lotteries</strong> belong to the people.<br />

But because of the important flow of<br />

money, the inherent risks of games of<br />

chance and the need to keep it low risk,<br />

LegaL<br />

Philippe Vlaemminck<br />

governments all over the world have<br />

only permitted <strong>Lotteries</strong> to the extent<br />

that they are strictly regulated and<br />

properly controlled.<br />

8 the european <strong>Lotteries</strong> news septeMber 2012


By operating this model, <strong>Lotteries</strong><br />

do contribute to society in various<br />

manners. This specific role for society<br />

is what the Council, actually all 27<br />

Member states wants the Union to<br />

respect within the context of the Treaty.<br />

Is the Treaty on the Functioning of the<br />

<strong>European</strong> Union providing space for<br />

such political decision ?<br />

The current TFEU is indeed very<br />

different from the original EEC Treaty.<br />

The older treaty was only addressing<br />

economic questions. Today’s <strong>European</strong><br />

Union does recognize that the Union<br />

has a broader role and scope. The<br />

basis is to be found in the simultaneous<br />

application of the TEU and the TFEU.<br />

Both Treaties do foresee in specific,<br />

sometimes exclusive, competences.<br />

In several cases the competence is<br />

limited to support and supplement<br />

the Member States competence and<br />

adopt (incentive) measures , excluding<br />

harmonization as it is the case in articles<br />

165-167 TFEU regarding a.o. sport and<br />

culture.<br />

Art 5 TEU states that :<br />

1. The limits of Union competences<br />

are governed by the principle<br />

of conferral. The use of Union<br />

competences is governed by the<br />

principles of subsidiarity and<br />

proportionality.<br />

2. Under the principle of conferral,<br />

the Union shall act only within the<br />

limits of the competences conferred<br />

upon it by the Member States in<br />

the Treaties to attain the objectives<br />

set out therein. Competences not<br />

conferred upon the Union in the<br />

Treaties remain with the Member<br />

States.<br />

3. Under the principle of subsidiarity,<br />

in areas which do not fall within its<br />

exclusive competence, the Union<br />

shall act only if and in so far as the<br />

objectives of the proposed action<br />

cannot be sufficiently achieved by<br />

the Member States, either at central<br />

level or at regional and local level,<br />

but can rather, by reason of the scale<br />

or effects of the proposed action, be<br />

better achieved at Union level.<br />

4. Under the principle of<br />

proportionality, the content and<br />

form of Union action shall not<br />

exceed what is necessary to achieve<br />

the objectives of the Treaties. The<br />

institutions of the Union shall apply<br />

the principle of proportionality as<br />

laid down in the Protocol on the<br />

application of the principles of<br />

subsidiarity and proportionality.<br />

While up to now the discussion<br />

was often limited to the question of<br />

respecting the principles of subsidiarity<br />

and proportionality, it could be useful<br />

also to integrate in the debate of the<br />

principle of conferral.<br />

Indeed the principle of conferral refers<br />

to the competences which have been<br />

given to the Union by the Member<br />

States. The two other principles do only<br />

talk about the way the Union has to use<br />

those competences.<br />

There is no discussion anymore about<br />

the fact that, to the extent that the EU<br />

has competence in the gambling sector,<br />

the principle of subsidiarity must be<br />

applied. The court of Justice of the<br />

EU did indeed decide that gambling<br />

activities are services, although of a<br />

particular nature. Notwithstanding<br />

this, considering the risks inherent to<br />

this activity, the Member States are the<br />

best placed to regulate these activities.<br />

The role of the EU is to check whether<br />

these restrictive policies are consistent<br />

and strictly limited to the aims pursued.<br />

In other words has the principle of<br />

proportionality been respected?<br />

According to the CJEU the Member<br />

States have a large discretionary power<br />

to decide about the model to operate<br />

games of chance, including whether<br />

making private profit by operating<br />

games is acceptable. Only to the extent<br />

LegaL<br />

that Member States try to maximize<br />

profits for the state and/or good causes<br />

within a restrictive environment, this<br />

is questionable as it is driven by an<br />

economic objective.<br />

It can be argued that deciding that<br />

<strong>Lotteries</strong> have a specific, non economic<br />

role, for society, and therefore making<br />

the choice for the lottery model as<br />

described above, is a competence of the<br />

states and has not been conferred to the<br />

Union.<br />

The way Member States do contribute<br />

to sport and culture through their<br />

lottery belongs to their competence.<br />

In the Football Association Premier<br />

League case the Court of Justice of the<br />

EU recognized recently that Member<br />

States have the right on the basis<br />

of art. 165 TFEU to protect in their<br />

domestic legal orders sporting events<br />

and sport integrity (para. 100 & 102).<br />

The Union’s conferred competence in<br />

these areas is indeed limited to support<br />

and supplement the Member States,<br />

and adopt incentive measure excluding<br />

harmonization.<br />

By adopting the Council conclusions on<br />

10 December 2010, the Member States<br />

have actually clarified that the only<br />

competence they have conferred to the<br />

Union regarding lotteries are the pure<br />

economic aspects, and they are even<br />

particular. We can therefore argue that<br />

the lottery model as described above<br />

does not belong to this. The debate on<br />

the principle of conferral has not yet<br />

been exhausted, but should take place<br />

if necessary.<br />

By Philippe Vlaemminck<br />

EL Legal Adviser<br />

9 the european <strong>Lotteries</strong> news septeMber 2012


A few years ago, <strong>European</strong> lotteries sent a questionnaire<br />

to their suppliers inquiring about initiatives<br />

supporting corporate social responsibility, or what is<br />

commonly referred to by companies around the world<br />

as CSR. This program review initiated by the lotteries<br />

included a strong focus on environmental commitments<br />

and sustainability. It made many in the lottery<br />

industry around the world take a step back to evaluate<br />

supply chain operations. Others moved forward to<br />

build upon programs that were already in place.<br />

It was clear that in Europe, a commitment to sustainability<br />

was no longer from big brands only. The same<br />

environmental requirements for global giants like Coca-Cola,<br />

Nike and BP had made their way to the lotteries.<br />

And to lottery vendors.<br />

Scientific Games’ manufacturing and operational facility in<br />

Leeds, England was recently awarded OHSAS 18001 certification.<br />

<strong>Lotteries</strong> in Europe began to require that their suppliers<br />

meet and exceed high standards of environmental,<br />

employee welfare and health and safety practices,<br />

as required by <strong>European</strong> governments. Countries leading<br />

the way were Finland, France, Germany and the<br />

United Kingdom.<br />

In 2009, the Finnish National Lottery, Veikkaus Oy,<br />

adopted an ambitious environmental goal to reduce<br />

their level of carbon dioxide emissions by 35 percent<br />

by the end of 2013. Calculations in 2011 indicated that<br />

Veikkaus had already managed to reduce emissions by<br />

29 percent and was on target to achieve their goal. The<br />

environmental impacts were analyzed in cooperation<br />

with Gaia, a company specializing in sustainable development.<br />

Veikkaus’ carbon footprint was reduced by<br />

roughly one fifth in just two years.<br />

“One of the single, most significant factors leading to a<br />

reduction in Veikkaus’ emissions was the adoption of<br />

green electricity last year. Our next steps will include<br />

compensating for carbon dioxide emissions caused<br />

by air travel,” said Pauliina Siiskonen, CSR Specialist<br />

for Veikkaus. “Our carbon footprint has also been reduced<br />

by organizing video conferences and choosing<br />

rail travel within Finland, and by making our company<br />

cars subject to stricter emission limits.”<br />

Some of the formal certifications that have become<br />

standard for lotteries in Europe include ISO 14001, an<br />

eURoPean LotteRIeS<br />

Set StandaRd FoR<br />

SUStaInaBILItY PRogRaMS<br />

EL NEWS ASKED....<br />

SCIENTIFIC GAMES ANSWERED<br />

...............<br />

environmental management system established by<br />

the International Standards Organization (ISO) for the<br />

purpose of reducing a company’s burden on the environment<br />

with regard to air and water pollution, waste<br />

to landfill, and energy usage. Scientific Games’ operational<br />

facilities in Leeds, England and Atlanta, Georgia<br />

USA have received ISO 14001 certification.<br />

ISO 14001 certification drives performance improvement<br />

in areas such as waste recycling or using waste as<br />

refuse derived fuel. It also focuses attention on reducing<br />

energy usage, a requirement that has frequently<br />

been driven by local governments as part of their carbon<br />

reduction initiatives. Carbon reduction can also<br />

be achieved by replacing the air conditioning systems<br />

for manufacturing and office facilities with new systems<br />

that produce fewer carbon dioxide emissions.<br />

The use of water-based and UV inks in lottery ticket<br />

printing facilities helps drive an ongoing reduction in<br />

solvent usage. These ink products have a much less<br />

detrimental effect on air quality compared to solventbased<br />

products.<br />

A number of <strong>European</strong> lotteries have also become interested<br />

in a certification standard from Occupational<br />

Health and Safety Advisory Services entitled OHSAS<br />

18001 that reviews employee health and safety risks<br />

and improves occupational health and safety performance.<br />

In August 2012, Scientific Games’ facility in Leeds was<br />

awarded the OHSAS 18001 certification standard by<br />

the British Standards Institute (BSI). By achieving this,<br />

Scientific Games demonstrated the company’s commitment<br />

to continued improvement in health and safety<br />

performance, complying with legislation through<br />

maintenance of an Occupational Health and Management<br />

System and providing a safe working environment<br />

for employees.<br />

Other worldwide sustainability-driven certifications<br />

received by Scientific Games in Europe, Canada and<br />

the U.S. are from the Forestry Stewardship Council<br />

(FSC), which ensures that the printed products used<br />

by companies come from a sustainable, well-managed<br />

and ethical source so that deforestation or illegal logging<br />

is prevented in natural conservation areas.<br />

“Operating to a high standard of environmental, employee<br />

welfare and health and safety practices forms a<br />

solid platform upon which Scientific Games has been<br />

able to build its Corporate Social Responsibility program,”<br />

said Andrew Jackson, Director of Quality, Compliance<br />

and Research & Development for Scientific<br />

Games. “The <strong>European</strong> lotteries are very conscious of<br />

the environment and human rights, in particular, and<br />

they require assurance from their suppliers that the<br />

necessary controls are in place that uphold their same<br />

values and of course, meet legislative requirements.”<br />

CSR has introduced a new era for lotteries and their<br />

suppliers in Europe—an era of standards and certifications<br />

that has already begun to impact lotteries in<br />

other parts of the world and the way they do business<br />

to serve their consumers, their employees, the environment<br />

and their communities.<br />

ACTIVITY 10 NEWS 39 MAY 2012<br />

PReMIUM PaRtneRS 10 the european <strong>Lotteries</strong> news septeMber 2012


Changing consumer gaming trends, rapid evolution<br />

in point-of-sale purchasing preferences, on-demand<br />

provisioning of assets through cloud technologies,<br />

changing business models…in the next 10 years, the<br />

lottery industry will experience more change than it<br />

has in the last 30 years. To capitalize on each growth<br />

opportunity, every lottery operator is assessing its<br />

state of readiness for the changes ahead. To meet<br />

the increasingly competitive ecommerce influences,<br />

lotteries will require diverse solutions to grow samestore<br />

sales. At GTECH, we are responding to this dynamic<br />

in order to successfully enable our customers<br />

to adapt to these changing business requirements.<br />

We have created a renewed commitment to a corporate<br />

culture that is dedicated to innovation. Thus<br />

far in 2012 alone, we have successfully launched four<br />

major industry innovations:<br />

GTECh has redesigned our Enterprise Series solution<br />

to be our most “open” system to date to reflect<br />

lotteries’ desires to mix and match best-of-breed solutions,<br />

expand channels, and offer the most compelling<br />

content to players. The solution provides a<br />

wide array of components and functionality from<br />

which lotteries can selectively choose to match their<br />

particular business needs and environments.<br />

Built upon the proven, well established Enterprise<br />

Series architecture, our new solution suite is engineered<br />

to accommodate changing consumer<br />

point-of-purchase preferences and leverage operator<br />

insights to drive business. Multi-channel access<br />

through our SILVERLINING private cloud solution<br />

is at the core of this evolution of ES architecture to<br />

leverage increased distribution options, allowing lotteries<br />

to reach and engage more players, optimize<br />

returns to good causes, and improve operational and<br />

cost efficiencies.<br />

GTECh’s Lottery development Network and eInstants.<br />

GTECH built the Lottery Developer Network (LDN)<br />

specifically for our customers to access the best possible<br />

games from the entire third party game developer<br />

community. The LDN is a network of qualified<br />

third-party developers who generate exciting new<br />

games that provide lotteries with a myriad of choices<br />

from a centralized “store” of new game content.<br />

One of the primary purposes of the LDN is to dramatically<br />

expand the number of games for lotteries’<br />

PReMIUM PaRtneRS<br />

ReadIneSS ReQUIReS<br />

ConStant InnoVatIon<br />

eInstants portfolios. From information on integrating<br />

with the eInstant system to guidelines for developing<br />

quality games, the LDN has everything a game<br />

developer needs to create fun and exciting games<br />

that fit in the lottery markets of today and tomorrow,<br />

expanding lottery game appeal to new market segments.<br />

We will officially launch the LDN in September,<br />

initially offering eInstant games.<br />

Retailer Technology Concept Lab. GTECH has implemented<br />

a Retail Technology Concept (RTC) Lab to<br />

explore trends in retail technology and uncover the<br />

ways in which those trends may be transformed to<br />

support lottery in the future. Despite the growth of<br />

interactive gaming, bricks and mortar sales are, and<br />

will continue to be, the foundation our industry. The<br />

RTC allows lotteries to see functional concepts of<br />

near to mid-term retail technologies and solutions<br />

as they are applied to lottery business needs.<br />

Innovate to Innovate (i2i). Continuous innovation<br />

is critical in today’s rapidly advancing world, so we<br />

must do everything we can to allow new ideas, creativity,<br />

and collaboration to easily flow through the<br />

company for the benefit of our customers. To make<br />

sure that innovation and inspiration continue to be<br />

a part of our strategic plan and corporate culture,<br />

we have created the Innovate to Innovate (i2i) program<br />

to promote and reward creative thinking at all<br />

levels of the organization.<br />

Every employee<br />

will be able to engage<br />

in the proposal and<br />

development of new<br />

ideas that benefit our<br />

customers around<br />

the world.<br />

Change can be challenging, but it can also be invigorating.<br />

Creating Customer First innovations that<br />

grow with market changes turn challenge into opportunities<br />

that enable GTECH to better serve our<br />

customers.<br />

11 the european <strong>Lotteries</strong> news septeMber 2012


Renewing the player experience of number games,<br />

especially in retail and particularly for younger demographics,<br />

has been mind-boggling for <strong>Lotteries</strong>.<br />

Although <strong>Lotteries</strong> worldwide have been making<br />

many efforts to modernize this gaming offering by<br />

providing for example more appealing prizes and<br />

using more attractive play-slips, the main concept<br />

of participating to these games has remained almost<br />

the same. Building up player interest for the so-called<br />

traditional games is a serious objective: these<br />

games make up for 2/3 of total lottery sales1 , while<br />

they contribute PHOTO<br />

over-proportionately to profits and<br />

good causes internationally.<br />

Having this goal in mind and leveraging NFC (Near<br />

Field Communication) technology 2 , INTRALOT<br />

sought to innovate along several lines: (a) playing<br />

existing number games in new ways, at all times and<br />

across locations; (b) expanding the idea of selecting<br />

number sequences into selecting sequences of<br />

numbers across different locations to achieve intermediate<br />

or final goals; (c) bringing in traffic but also<br />

excitement to a geographic area by creating specific,<br />

location-based game events linked to particular numerical<br />

stimuli.<br />

NfC: EVERY PLACE bECOmES A PLAY<br />

Tap’n’Play Games by INTRALOT refers to a new family<br />

of games that enables <strong>Lotteries</strong> to bridge the<br />

distance between land and mobile gaming by NFC<br />

technology and incorporating it in Lottery gaming.<br />

Players need only to “tap” their smart phone on any<br />

possible surface to enter the game. Games or gamified<br />

promotions of lottery games may be offered<br />

in store or out of store: on posters, shop windows,<br />

tables, bus stop display areas, football events ticket<br />

booths, etc – practically any surface can become a<br />

play surface.<br />

Tap’n’Play covers a wide spectrum of<br />

game categories, from traditional to<br />

skill and knowledge games. The look<br />

& feel of the game is customized and<br />

optimized according to the needs,<br />

objectives, branding assets and design<br />

guidelines of each lottery.<br />

‘Tap’n’Play Lottery’, ‘GameSpot’ & ‘GameTrails’<br />

games can be offered through the existing <strong>Lotteries</strong>’<br />

License for land-based gaming. A paperless gaming<br />

environment where <strong>Lotteries</strong> engage their current<br />

players more, step into new channels and capture<br />

the dynamic younger population with an interactive<br />

family of games is created.<br />

Whether simply selecting numbers, or searching<br />

for a winning spot or even following a route, players<br />

are presented with a new gaming experience - “everywhere-anywhere-interactive”.<br />

Players respond<br />

LotteRY nUMBeR gaMeS<br />

ReLoaded: BRIngIng gaMeS a<br />

“tAp” AWAy From pLAyErs<br />

EL NEWS ASKED....<br />

INTRALOT ANSWERED<br />

..............<br />

very well to the fun embedded in the new idea: young<br />

people’s intention to play even a simple Tap’n’Play<br />

numbers game more than doubles compared to the<br />

same game when a traditional play slip is used.<br />

mERGING ThE REAL WITh ThE VIRTuAL bY A<br />

SINGLE TAP<br />

Incorporating NFC - powered games to its already diverse<br />

portfolio of games serves INTRALOT’s strategy<br />

to provide to its customers and players a Universal<br />

Gaming Experience, where lottery games and entertainment<br />

are realized within a gaming interface that<br />

connects players, games, mobile devices and retail<br />

stores in a natural and seamless way.<br />

Designed to build<br />

up a contemporary<br />

brand image,<br />

“Tap’n’Play” enriches<br />

land-based<br />

<strong>Lotteries</strong>’ existing<br />

game portfolios with<br />

interactive games<br />

currently unreachable<br />

for their land<br />

network. It allows<br />

them to use the high<br />

penetration of mobile<br />

phones to reach<br />

wider audiences,<br />

and connect with a<br />

younger dynamic<br />

demographic by tapping<br />

into their needs<br />

for interactivity and<br />

fast paced connectivity<br />

at the places<br />

they frequent and<br />

socialize.<br />

“Tap’n’Play” also introduces a new dynamic era to<br />

Lottery Sales and Channel Management. It reduces<br />

the <strong>Lotteries</strong>’ dependence on paper, thus their operating<br />

costs, while increasing their operational hours<br />

allowing participation 24/7, anytime, anywhere: on<br />

POS store window, outside POS (e.g. bus stop). From<br />

building new channels to efficiently extending the<br />

operational capacity and reach of the land-based<br />

network, to building traffic<br />

and revenue within and<br />

across channels and store<br />

types, the possibilities are<br />

just endless.<br />

1 Source: La Fleur World Almanac 2012 – the percentage includes Lotto, Numbers, Draw and other<br />

traditional games<br />

2 Near field communication is a set of standards for smart phones and similar devices, such as<br />

tablets, to establish radio communication with each other by touching them together or bringing<br />

them into close proximity, usually no more than a few centimeters. Communication is also possible<br />

between an NFC device and an unpowered NFC chip, called a «tag».<br />

PReMIUM PaRtneRS ACTIVITY 12 10 the NEWS european 39 MAY 2012<strong>Lotteries</strong><br />

news septeMber 2012


nEW mEmbErs<br />

At the beginning of the year, Azerinteltek, new EL<br />

Member, appointed Mr. Demirdoven as General<br />

Manager of its operations. Previously, Mr. Demirdoven<br />

was CFO of this organization.<br />

Ozgur Demirdoven’s professional career started in<br />

1996 at the PwC company in Turkey where he worked<br />

as consultant. Later on, General Electric (GE) hired<br />

him to fulfil various regional management positions<br />

in its energy business segment, including EurAsia<br />

Region Controller. Then GE asked him to oversee<br />

its Healthcare Clinical Devices and Services Department<br />

as Country CFO and Member of the Board of<br />

Directors in Turkey: one of its main responsibilities<br />

was to acquire a production facility and distribution<br />

channel of healthcare clinical devices and services.<br />

He was then recruited by Italian company Prysmian<br />

Cables & Systems where he served until 2011 as<br />

Country CFO and Board Member in Turkey for the<br />

publicly listed Turkish facility.<br />

His extensive expertise in major companies is viewed<br />

as a great asset for Azerinteltek, which was founded<br />

in 2010 in light of the potential of sports betting for<br />

Azerbaijan. “Our vision, explains Mr. Demirdoven, is<br />

to create a sports economy for our new country with<br />

the support of the sports betting sector. At Azerinteltek,<br />

our approach is to develop a responsible gaming<br />

platform, fight against illegal betting and create<br />

added value for our society. Although there is a National<br />

Lottery in Azerbaijan, Azerlotereya, with us<br />

and our new legal sports betting offers, there will be<br />

more opportunities for the good of the community.”<br />

“Our mission is multi-faceted, emphasizes Mr.<br />

Demirdoven: we want to present a variety of sports<br />

betting under a unique umbrella to respond to current<br />

players and attract prospective customers; we<br />

nEW mEmbErs<br />

MR. OZGUR DEMIRDOVEN<br />

geneRaL ManageR<br />

oF aZeRInteLtek,<br />

AZErbAiJAn<br />

want to create ways to fund sport-related government<br />

programs; we want to enhance the value of local<br />

leagues while allowing national and international<br />

business entrepreneurs to invest into the sports sector<br />

in a healthy and legal manner. With such a strategy,<br />

Azerbaijan will not only be able to improve the<br />

quality of sports at local level but also gain enough<br />

expertise to compete in the international market.”<br />

To reach these goals, Azerinteltek CJSC, the first and<br />

the only legal sports betting operator in the country,<br />

launched on January 18, 2011 its very first branded<br />

game “Topaz”. Since then, the young operator has<br />

put in place several projects under that trademark,<br />

all within a year: “Goal\No Goal” game, “Duello”<br />

game, “Live Betting”, “eTopaz Online“. According to<br />

Mr. Demirdoven, the country is ready for new game<br />

development and innovation. Therefore, as a game<br />

operator, Azerinteltek has to answer the pulse of the<br />

market and provide highly competitive products in<br />

order to meet the players’ requests. New game projects<br />

are planned to support the growing gaming<br />

market’s needs to fight illegal sports betting.<br />

Ozgur Demirdoven notes that it will be a challenge<br />

to increase operations as well as sales network in a<br />

country where the legal gaming infrastructure is not<br />

yet fully developed, with a culture not quite used to<br />

deal with official and secure game offers. The illegal<br />

betting market is still very strong and this will present<br />

another challenging milestone for Azerinteltek<br />

in motivating its customers’ confidence.<br />

This is where EL support and experience will become<br />

invaluable for Azerbaijan, indicates Mr. Demirdoven.<br />

By using EL Members’ information on fighting the illegal<br />

betting market, methods to reinforce the safe<br />

and reliable operations of a state organization, best<br />

practices and more, Azerinteltek will succeed in promoting<br />

the benefit of games for society and in establishing<br />

a responsible gaming business model.<br />

13 the european <strong>Lotteries</strong> news septeMber 2012


nEW mEmbErs<br />

DaN alExaNDRU GhIta<br />

nEW cEo oF thE<br />

RoManIan natIonaL<br />

LotteRY<br />

Dan Alexandru Ghita was appointed Chairman of<br />

the Board and CEO of the Romanian National Lottery<br />

in June 2012. He is specialized in business and<br />

investment management from the Academy of Economic<br />

Studies in Bucharest and has developed solid<br />

knowledge and expertise on the gaming industry<br />

since 1998.<br />

During his career he has gathered strong experience<br />

in management, operations, sales and business<br />

development and he has successfully managed the<br />

opening of 250 gaming and betting venues all over<br />

the country. Dan Alexandru Ghita is an active member<br />

in various gaming organizations and groups in<br />

Romania and abroad: the "Romanian Association of<br />

Gaming Organizers and Producers" that has played<br />

an important role in proposing and adopting the<br />

new gaming law, and the group dedicated to building<br />

links between slot machines professionals and<br />

managing over 30,000 slot machines across Europe.<br />

“O u r agents needed a fast, secure method of tracking<br />

lottery sales on their own accounting systems, so they<br />

could accurately distinguish lottery revenues from other<br />

revenue. GTECH designed and implemented a barcode<br />

solution that lets agents rapidly scan — and accurately<br />

GTECH® is an advocate of socially responsible gaming. Our business solutions empower customers to develop parameters<br />

and practices, appropriate to their needs, that become the foundation of their responsible gaming programs.<br />

PReMIUM PaRtneRS 14 the european <strong>Lotteries</strong> news septeMber 2012


With Dan Alexandru Ghita, the Romanian Lottery<br />

has an experienced manager with relevant background<br />

in both gaming and business fields, which<br />

gives him the proper tools to fit in this new and challenging<br />

position.<br />

Dan Alexandru Ghita has ambitious objectives for<br />

the Romanian Lottery:<br />

- Aligning Romanian Lottery to the <strong>European</strong><br />

standards by promoting responsible gaming and<br />

providing the highest security and integrity standards,<br />

- Expanding the customers’ experience by offering<br />

a varied and entertaining selection of lotteries and<br />

games,<br />

- Widen the existing distribution channels, using<br />

new technologies such as interactive, mobile, etc.,<br />

- Increasing the productivity and expand the sales<br />

network by encouraging new strategic partnerships,<br />

capture — the value of their lottery purchases on their own cash<br />

register. Now our agents have a clear and integrated view of<br />

their sales by product line, and The Lottery retains full visibility<br />

of lottery product sales.”<br />

Jim O’Connor, Key Account Manager, The Lottery, Ireland<br />

PReMIUM PaRtneRS<br />

- Rebranding and enhancing the “lottery image” at<br />

the point of sale,<br />

- Establishing fruitful collaborating with different<br />

<strong>European</strong> forums and lotteries,<br />

- Aiming at joining the coordinated game, EuroMillions<br />

Mr. Ghita’s main objective is to accelerate company<br />

development and to achieve long-term growth by offering<br />

an enhanced and regularly-refreshed range of<br />

games, and focusing on innovation. Amongst his priorities<br />

are the product portfolio diversification and<br />

development of new facilities for players via online<br />

and mobile communication. Promoting responsible<br />

gaming is another challenging task for the new CEO<br />

of the Romanian Lottery. He stressed the importance<br />

of cooperation with The <strong>European</strong> <strong>Lotteries</strong> to ensure<br />

the integrity of the Responsible Gaming Standards.<br />

For more about this story and others like it, visit us at gtech.com/testimonials.<br />

15 the european <strong>Lotteries</strong> news septeMber 2012


SoCIaL MedIa FoRUM<br />

MUnICH - MaY 22, 2012<br />

Following a short welcome address from Erwin Horak,<br />

President of Lotto Bayern, Jack Murray, Managing<br />

Director of Mediacontact.ie (Ireland’s leading<br />

media intelligence company) gave a keynote address<br />

showing “10 ways to get results from social media”.<br />

The 35 participants heard sound practical advice<br />

on how to integrate social media into the systems,<br />

procedures and practices of a lottery. It was agreed<br />

that Social Media is not just a “thing” to be put<br />

somewhere, but rather a way of doing business. The<br />

consensus was that responsibility for Social Media<br />

should be handled by PR, Customer Relations, Communications<br />

or Marketing. There was a strong case<br />

made for having it spread (like a matrix) throughout<br />

an organisation.<br />

Engaging lottery players through Social Media was<br />

more about listening to players than in “shouting”<br />

at them. There was no point in a Lottery company<br />

“collecting” thousands of followers if it did not have<br />

something special to offer to them.<br />

Tracking and Return on Investment was discussed<br />

and the metrics from various tracking packages such<br />

as Google Alerts were debated.<br />

Some very creative uses of the various social media<br />

for developing game themes and supporting other<br />

“traditional” games were discussed.<br />

Activities<br />

Exercises were undertaken such as one where each<br />

participant had to complete a sentence beginning “I<br />

want to use social media to …….” where there had<br />

to be specific objectives with time and revenue parameters.<br />

Crisis communication using social media and ways<br />

to “socialize” your website were also explored with<br />

the group.<br />

The future of social media was discussed with interesting<br />

insights into the future of Facebook as a supplier<br />

of games.<br />

The usefulness of a.o. LinkedIn was examined, particularly<br />

as a way of enhancing communication<br />

between EL Members and the EL General Secretariat<br />

services, particularly for legal issues.<br />

It was agreed that Social media initiatives could<br />

only succeed in a Lottery where there was real<br />

support from the most senior management; a<br />

specific staffing commitment, and the allocation<br />

of an appropriate budget.<br />

17 the european <strong>Lotteries</strong> news septeMber 2012<br />

Ray Bates<br />

Moderator


EL/WLA sEcurity<br />

and RISk ManageMent SeMInaR<br />

kIeV - MaY 29-31, 2012<br />

“GET A GRIP ON LOTTERY SECuRITY”<br />

Over 80 delegates from 29 countries, representing<br />

44 different lottery related organizations gathered<br />

in the “Rus” Hotel in Kiev, Ukraine for the latest EL/<br />

WLA Security and Risk Management seminar.<br />

On Wednesday 30 May, following a welcoming reception<br />

and dinner, the seminar opened with a welcome<br />

Speech from Evgeniy VLASENKO, General Director,<br />

of MSL Ltd. in Ukraine.<br />

Thierry PUJOL, the Chairman of the WLA Security<br />

and Risk Management Committee (WLA SRMC), the<br />

EL Security and Risk Management Working Group<br />

and Director of Security and Risk Management at<br />

La Française de Jeux, introduced the members of<br />

both committees and highlighted the tremendous<br />

amount of work that had been accomplished by both<br />

bodies (SRMC and EL). In particular, he referred to<br />

the new 2012 version of the WLA Security Control<br />

Standard and an innovative, interactive document<br />

outlining guidelines for risk management. He also<br />

announced that by the end of May 2012, 47 lotteries<br />

Activities<br />

will be WLA certified including 2 in North America,<br />

2 in Asia-Pacific, and 3 in Latin America. Nine suppliers<br />

(Associate members) will also be WLA certified<br />

on 17 sites.<br />

Following this, the objectives of the seminar were<br />

highlighted and endorsed by the moderator, John<br />

BRANSCOMBE of J2B Security Ltd.<br />

The seminar proceeded with a “keynote” presentation<br />

by Colonel Oleg Borisovich MATVEYTSOV, Head<br />

of the Ukrainian Department of Public Events, responsible<br />

for the security measures and organization<br />

of the Euro 2012 football championship. He was later<br />

followed by Viktor KORZH, Vice President of the<br />

Ukraine National Olympic Committee who spoke on<br />

the organisational matters of Euro 2012. Clearly, a<br />

tremendous amount of planning, collaboration with<br />

other countries and football organisations had taken<br />

place in an effort to ensure an enjoyable and trouble<br />

free tournament.<br />

Konrad SUPPER, Head of the Internal Audit Department<br />

of Westdeutsche Lotterie in Germany, presented<br />

on point-of-sale security and gave an overview<br />

of measures in place, together with the latest developments<br />

in this area. He stressed the overwhelming<br />

need to maintain players' trust and confidence.<br />

A presentation by Thierry PUJOL covered Sports Betting<br />

security and the growing international concern<br />

with the seemingly dramatic increase with sports<br />

corruption. He illustrated this with examples of<br />

sports events that had been “fixed” and details of<br />

the arrests of suspects. This trend has no doubt influenced<br />

the WLA Security committee to include for<br />

the first time, sports betting security requirements<br />

within the latest version of the WLA Standard.<br />

Gunnar EWALD, Head of Internal Audit for LOTTO<br />

Hamburg in Germany and Carlos BACHMAIER,<br />

Compliance of SELAE in Spain followed with a linked<br />

presentation on the threat of lotteries being utilised<br />

for money laundering with a specific concern that it<br />

18 the european <strong>Lotteries</strong> news septeMber 2012


could be carried out through the illegal use of Sports<br />

Betting.<br />

The proposed 2012 version of the WLA Security<br />

Control Standard (WLA SCS) and the certification<br />

process was the thrust of presentations from four<br />

lotteries: AB Svenska Spel Sweden (Torbjorn BORG),<br />

Veikkaus Oy Finland (Jan SEURI), Camelot UK <strong>Lotteries</strong><br />

Ltd. (Paul JAY) and La Française des Jeux France<br />

(Jean-Jacques RIERA). They were also supported by<br />

other member lotteries in the development and formatting<br />

of the new Standard.<br />

Both Sports Betting and Internet Gaming have been<br />

included in this version of the Standard and other<br />

requirements updated with four fairly minor requirements<br />

discarded. It was anticipated that following<br />

the normal approval process, the 2012 version will be<br />

launched in the autumn of this year.<br />

A transition period of six months between the 2006<br />

version and the 2012 version was also planned. To<br />

ensure good coverage of the subject a panel discussion<br />

group was formed to answer questions and<br />

concerns on the new Standard and the certification<br />

process.<br />

The security and risk implications of “Cloud” computing<br />

was a new topic in the seminar. Very informative<br />

and interesting presentations were given by<br />

Lars NEUPART, CEO of Neupart AS in Denmark and<br />

Christos DIMITRIADIS, Head of Information Security<br />

of INTRALOT in Greece. Undoubtedly, this subject<br />

will be revisited at future events.<br />

With a theme of Internet Security and Cyber Criminality,<br />

Paul JAY, the Head of IT Security at Camelot<br />

UK <strong>Lotteries</strong> Ltd. and Andrey KOMAROV, Advisor to<br />

the General Director of CJSC Interlot in Russia, both<br />

Activities<br />

gave presentations on how to ensure and maintain<br />

secure lottery operations in a landscape with ever<br />

changing threats.<br />

The Management of Risk in the lottery world had<br />

been a standing seminar topic so it was with great<br />

interest that the delegates heard a presentation from<br />

three lotteries: National Lottery Belgium (Claude<br />

MATHIEU), Austrian <strong>Lotteries</strong> (Johannes PUCHIN-<br />

GER) and Camelot UK <strong>Lotteries</strong> Ltd. (Martin SUT-<br />

TON). They had been involved with other members<br />

from the EL working group in drafting an interactive<br />

comprehensive guideline to identify a number<br />

of generic risks. This session prompted a great deal<br />

of discussions and comments. The guideline document<br />

is to be circulated as a draft and views as well as<br />

comments are welcomed.<br />

Presentations were well received on risk management<br />

strategy and the practical implementation<br />

and implications given by Konrad SUPPER (West-<br />

19 the european <strong>Lotteries</strong> news septeMber 2012


EL/WLA sEcurity<br />

and RISk ManageMent SeMInaR<br />

kIeV - MaY 29-31, 2012<br />

deutsche Lotterie) from Germany and Pascal GER-<br />

VAIX, Chief Security Officer of Loterie de la Suisse<br />

Romande in Switzerland.<br />

A different perspective, highlighting the need to ensure<br />

that the correct risks are always identified, was<br />

given by Advocate Johannes WEAPOND, Risk Committee<br />

Chairperson of National <strong>Lotteries</strong> Board in<br />

South Africa.<br />

In other sessions, Christophe BIANCO, Vice President<br />

of Qualys in Luxembourg, spoke on IT Security<br />

management using a risk approach and sharing<br />

some practical case experiences with the audience.<br />

Matthew TRUENOW of GTECH USA very interestingly<br />

provided and outlined many aspects of crisis<br />

management within his organization.<br />

Steve TOWNEND, Director of Information Technology<br />

for SCIENTIFIC GAMES INTERNATIONAL,<br />

informed delegates of the latest technical and design<br />

developments with scratch cards, ensuring the<br />

continued security of the tickets and game data.<br />

Finally, Thierry PUJOL closed the seminar with<br />

thanks to the delegates for their participation and<br />

to the suppliers for their generous support. He also<br />

warmly thanked the administration from EL, and in<br />

particular, the welcome and generous hospitality of<br />

the seminar hosts, MSL Ltd.<br />

Many favorable comments were made on the excellent<br />

organization, administration and the overall<br />

way the seminar had been managed. It would<br />

appear from the collective feedback received from<br />

Activities<br />

delegates that the overwhelming majority view was<br />

that the two days seminar had been very successful -<br />

being both interesting and informative.<br />

John BRANSCOMBE<br />

Moderator<br />

20 the european <strong>Lotteries</strong> news septeMber 2012


Be PaRt oF tHe eU LegaL<br />

dEbAtE Within EL And shApE thE<br />

FUtURe oF gaMIng<br />

WArsAW - JunE 4-6, 2012<br />

The EuROPEAN LEGAL AffAIRS SEmINAR 2012<br />

was held in the city of Warsaw (Poland). It started<br />

on Tuesday, 5 June with the opening of the Chair of<br />

the Legal, Statutes & Members Committee, Tjeerd<br />

Veenstra, directly followed by an update on EU legal<br />

developments given by Philippe Vlaemminck and<br />

Delia Orabona (EL Legal Advisers).<br />

Different countries took part in the seminar: Belgium,<br />

Denmark, Finland, France, Germany, Greece,<br />

Hungary, Italy, Portugal, The Netherlands, Switzerland…<br />

The core of the first sessions was the update on the<br />

most recent judgments of the Court of Justice of the<br />

EU, followed by a presentation on the new Commission's<br />

proposal on data protection which provides a<br />

stronger and more coherent framework, but also a<br />

stronger enforcement which will affect all the businesses<br />

as of 2016.<br />

Further, lawyers from various countries introduced<br />

the audience to their national legal developments on<br />

gambling.<br />

In this session intervened: Tineke Ockhorst from the<br />

Netherlands, who gave an update on the current political<br />

and legal context of her country; Marcello Presilla<br />

from Italy, who presented on the recent Italian<br />

AML legislation by giving an insight in the specific<br />

provisions for the traceability of the games and also<br />

on the protection of minors; Hubert Sicking from<br />

Germany, who updated on the two existing Treaties<br />

currently in force in his country (1 in Schleswig-<br />

Holstein and 1 applied to the other 15 Länder); Ángel<br />

Activities<br />

Montero from Spain, who reported on the current<br />

licensing system in Spain, with a particular focus on<br />

the online gaming legislation; Dirk Messens from<br />

Belgium, who presented on the Belgian system and<br />

underlined the lack of a clear distinction between<br />

the online games offered by the National Lottery and<br />

the ones offered by the private operators and therefore<br />

expressed the need for a definition of lottery.<br />

Further, regulatory issues regarding Social Media<br />

and their use for the EL dialogue among lawyers and<br />

public affairs were presented by Philippe Vlaemminck<br />

and Beata Guzik (Altius).<br />

The focus of the last day of the seminar was on the<br />

EU Competition Law (antitrust, M&A, compliance<br />

programme) given by Carmen Verdonck (Partner<br />

at Altius) and on aspects of state aid and gambling<br />

given by Delia Orabona.<br />

This session was very instructive for the lawyers and<br />

companies present, who were informed of in-depth<br />

details about the general framework of the competition<br />

law and in particular “alerted” about the specific<br />

impact it will have on the gambling sector.<br />

In this specific historical moment, where the Commission<br />

and in general the EU Institutions are looking<br />

into (online) gaming, it is important for EL to<br />

be well prepared and ready to input and to shape the<br />

future of the sector. The broad participation and the<br />

active debate initiated at the seminar are now continuing<br />

and hopefully will last until the next seminar.<br />

Delia Orabona<br />

EL Legal Adviser<br />

21 the european <strong>Lotteries</strong> news septeMber 2012

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