"INNOVATING AND REINVENTING" - European Lotteries
"INNOVATING AND REINVENTING" - European Lotteries
"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 />
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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