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NEWS 37<br />

<strong>MAGAZINE</strong> <strong>OF</strong> <strong>THE</strong> <strong>EUROPEAN</strong> <strong>LOTTERIES</strong>, <strong>2011</strong>, <strong>SEPTEMBER</strong><br />

CONTENT:<br />

1. Foreword & Organisation<br />

3. Editorial<br />

4. Gambling Technologies<br />

10. Lottery & Technology<br />

18. Legal<br />

20. EL Activities<br />

26. Workshops<br />

36. Monitoring System<br />

37. European Parliament


AGENDA <strong>2011</strong><br />

<strong>SEPTEMBER</strong><br />

• RESPONSIBLE GAMING<br />

SEMINAR (with the support of WLA)<br />

Dates: 26-28 September<br />

Location: Hamburg, Germany<br />

Host: LOTTO Hamburg GmbH<br />

STAYING ON TOP <strong>OF</strong> <strong>THE</strong> GAME<br />

Marketing tools to tackle changing times<br />

Joint EL/WLA Marketing Seminar<br />

January 25 – 27, 2012, London/UK<br />

OCTOBER<br />

• LAW ENFORCEMENT & EURO-<br />

PEAN LEGAL BRIEFING<br />

Dates: October 13 (starting at 14:00)<br />

October 14 (from 09:30 to 16:00)<br />

Location: Rome, Italy<br />

Host: Lottomatica SpA<br />

• PR/COMMUNICATIONS MEETING<br />

Dates: 26-28 October<br />

Location: Tallinn, Estonia<br />

Host: AS Eesti Loto<br />

Registration for all our seminars can be made online at<br />

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

All events are available on our website (under EVENTS). Announcements are<br />

made a few months in advance.<br />

NEW REGULAR MEMBERS<br />

AZERINTELTEK CJSC<br />

24 Academician Hasan Aliyev Street / Narimanov District<br />

AZ1078 Baku<br />

Republic of Azerbaijan<br />

NATIONAL LOTTERY <strong>OF</strong> MACEDONIA<br />

Kej Dimitar Vlahov bb / PO Box 506<br />

1000 Skopje<br />

FYROM<br />

AGENDA<br />

NEW ASSOCIATE MEMBER<br />

ADVANT GAMES OY Ltd.<br />

Hatanpään valtatie 6B24<br />

33100 Tampere<br />

Finland<br />

NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

NOVEMBER<br />

• JOINT EL/WLA RETAIL MARKETS<br />

SEMINAR (all distribution channels)<br />

Dates: 16-18 November<br />

Location: Dublin, Ireland<br />

Host: National Lottery Ireland<br />

• ELISE INFO SHARING SEMINAR<br />

Dates: 28-29 November<br />

Location: Madrid, Spain<br />

Host: ONCE<br />

Being in tune with the times is sometimes not enough. Anticipating future trends and arming ourselves to deal with them is essential to<br />

stay on top of the game. Are new games or distribution channels the answer? Multijurisdictional games? Adding new prize categories? With<br />

advertising of our products coming under increasing legislative pressure, we need to figure out how then to communicate with the players.<br />

The annual London Marketing Seminar, with a line up of experts, will present and discuss these and other relevant cutting edge topics.


FOREWORD<br />

DEAR EL MEMBERS,<br />

DEAR FRIENDS,<br />

We all gathered in June at our Congress<br />

in Helsinki, to review what we have<br />

achieved in the past two years and to<br />

discuss how we should approach the<br />

challenges and opportunities we face in<br />

the future. I believe our exchange of ideas<br />

have been very fruitful, inspired by<br />

many outstanding personalities from<br />

outside the lottery world who spoke at<br />

this event, which our Finnish Member<br />

Veikkaus organised in a perfect and innovative<br />

way.<br />

In Helsinki, our General Assembly also<br />

elected a new Executive Committee, a<br />

strong and motivated team, which can<br />

build on the very good work done by<br />

their predecessors. The new Executive<br />

Committee already met in July to take<br />

some important decisions and to discuss<br />

how EL can adapt its services and<br />

internal organisation even better to the<br />

needs of our Members and the expectations<br />

from policy makers and other<br />

opinion leaders.<br />

Since spring, following the publication<br />

of the Green Paper on online gambling<br />

and the launch of the stakeholder consultation<br />

on it, we have all put much<br />

<strong>THE</strong> <strong>EUROPEAN</strong> <strong>LOTTERIES</strong><br />

PRESIDENT<br />

Dipl. Ing. Friedrich STICKLER,<br />

Member of the Board<br />

AUSTRIAN <strong>LOTTERIES</strong>, Austria<br />

1 ST VICE-PRESIDENT<br />

Mr. Christophe BLANCHARD-DIGNAC,<br />

Chairman and CEO<br />

LA FRANÇAISE DES JEUX, France<br />

2 ND VICE-PRESIDENT<br />

Mr. Tjeerd VEENSTRA,<br />

Director<br />

DE LOTTO, The Netherlands<br />

FOREWORD AND ORGANISATION<br />

effort into preparing our detailed submission,<br />

which we submitted at the end<br />

of July. At the same time, EL has been in<br />

constant touch with those EU institutions,<br />

notably the European Parliament,<br />

which will influence the European<br />

Commission’s decisions on follow-up<br />

initiatives to the Green Paper.<br />

In parallel, the financing and the integrity<br />

of sport have climbed up the European<br />

political agenda: The European<br />

Commission’s new strategy on sport,<br />

adopted in January, and especially<br />

the Council’s three-year work plan on<br />

sport, adopted in May, define these two<br />

issues, which are extremely relevant<br />

MEMBERS <strong>OF</strong> <strong>THE</strong> 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<br />

BERLIN, Germany<br />

Mr. Franci KRIŽAN,<br />

Member of the Board<br />

LOTERIJA SLOVENIJE D.D., Slovenia<br />

Mr. Jean-Luc MONER-BANET,<br />

General Director<br />

SOCIÉTÉ DE LA LOTERIE DE LA<br />

SUISSE ROMANDE, Switzerland<br />

Mr. Ivan PITTEVILS,<br />

Chief Executive Officer<br />

NATIONALE LOTERIJ, Belgium<br />

Mr. Marco SALA,<br />

CEO & Managing Director<br />

Lottomatica Group SpA<br />

LOTTOMATICA SpA, Italy<br />

Mr. Ioannis SPANOUDAKIS<br />

Chairman of the Board of Directors<br />

and CEO<br />

OPAP S.A., Greece<br />

Ms. Dianne THOMPSON, CBE<br />

Chief Executive<br />

CAMELOT UK <strong>LOTTERIES</strong> LTD.,<br />

United Kingdom<br />

1 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

to EL, as priorities. EL participated in<br />

many high-level as well as working-level<br />

meetings and shared with Members<br />

of the European Parliament, European<br />

Commission officials, national governments<br />

and other stakeholders, including<br />

the IOC and the Council of Europe,<br />

its expertise on these topics. As regards<br />

the financing of sport, the more than<br />

two billion EUR our Members contribute<br />

each year add much weight to what<br />

we say. As regards the protection of the<br />

integrity of sports events from manipulations<br />

linked to betting, the lead we<br />

have taken in this area, which we will<br />

extend through the implementation of<br />

our unanimously adopted Helsinki Resolution,<br />

meets great recognition.<br />

All this shows that we are on the right<br />

track. With the same high level of commitment<br />

by our offices in Brussels and<br />

Lausanne, our Committees and Working<br />

groups, our Legal Advisors and you,<br />

the Members, I am confident that, at<br />

our next Congress in Tel Aviv, we will<br />

be looking back to another two years of<br />

good work to the benefit of the Association<br />

and its Members.<br />

Friedrich STICKLER<br />

EL President<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 />

E-mail: info@european-lotteries.org


A World of<br />

possibilities<br />

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and gain access to a broad and rich portfolio of products and services designed to help<br />

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EDITORIAL<br />

<strong>THE</strong> EXPERTS HAVE <strong>THE</strong> FLOOR<br />

In this issue dedicated to avant-garde<br />

technology, we have decided to give the<br />

floor to the experts, our Premium Partners<br />

who have made presentations on<br />

technologies which will have a future<br />

impact on lottery operations as well as<br />

on retailers and players. We take this<br />

opportunity to thank GTECH, INTRAL-<br />

OT and SCIENTIFIC GAMES for having<br />

given us an overview of the “secrets”<br />

behind technological success, and the<br />

methods they propose to ensure that<br />

their partnership with Lotteries transforms<br />

games in Europe into a transparent<br />

and responsible commodity, perfectly<br />

aligned to the demands of the XXI<br />

century.<br />

CONGRATULATIONS AND THANK<br />

YOU TO ALL OUR WORKING<br />

GROUPS<br />

As usual, EL continues its efforts in the<br />

fight against corruption and its activities<br />

for the benefit of its Members. The<br />

Working Groups of the various Committees<br />

will not rest until they achieve<br />

these objectives.<br />

The Security and Risk Management<br />

Working Group has developed detailed<br />

guidelines on the risks for European<br />

Lotteries. This reference document<br />

will be an important tool for all Lottery<br />

managers, as it will allow them to identify<br />

potential risks, establish preventive<br />

measures while providing advice on<br />

how to limit the impact and negative<br />

effects. The disclosure of this document<br />

is projected for the end of the year<br />

and personally, I am looking forward to<br />

sending it to you on behalf of the Working<br />

Group, after the approval of the Executive<br />

Committee.<br />

The Executive Committee has finalised<br />

the submission to the Green Paper and,<br />

for the occasion, has highlighted the<br />

considerable work carried out by the<br />

Working Groups who all have provided<br />

and elaborated the responses over several<br />

months. This meticulous work has<br />

been welcomed by the Members of the<br />

Executive Committee and at the same<br />

EDITORIAL<br />

3 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

time has allowed us to realize the importance<br />

of the European Lotteries.<br />

Our 2010 ELISE survey has also been<br />

completed and during our upcoming<br />

Information Sharing Seminar, which<br />

will be held in November, the Lotteries<br />

will be able to examine the results<br />

and also learn to develop comparative<br />

methods. Experts will contribute to the<br />

studies that are carried out and will influence<br />

the way they are conducted.<br />

There is no shortage of projects, but<br />

without the active contribution of our<br />

Members, it would be difficult to complete<br />

them within, at times, very tight<br />

deadlines.<br />

THANK YOU all!<br />

THANKYOU also to our host of the Congress<br />

in Helsinki, Veikkaus, who provided<br />

us with wonderful moments while<br />

assisting us in presenting a captivating<br />

programme. I would like to publish the<br />

names of all the key persons here, but<br />

the lack of space unfortunately does not<br />

allow me to do so. THANK YOU all for<br />

your warm hospitality and all the attention<br />

you have given us.<br />

As usual, you will find a list of the upcoming<br />

seminars for the last months of<br />

<strong>2011</strong> in the magazine, in which I invite<br />

you to participate!<br />

Wishing you a great fall season and<br />

looking forward to seeing you again<br />

soon.<br />

With my best regards,<br />

See you soon!<br />

Bernadette LOBJOIS<br />

Secretary General


GAMBLING TECHNOLOGIES: FUTURE & CHALLENGES<br />

ONLINE BINGO –<br />

A PORTAL FOR GROWTH<br />

Since the mid-1990s, we have all witnessed<br />

the dramatic impact the Internet<br />

has had on culture and commerce,<br />

including enabling a new<br />

point of access for lottery players.<br />

The key to leveraging the growth potential<br />

of Internet gaming is to create<br />

an entertaining experience that<br />

attracts and retains players, thereby<br />

lowering the cost of acquisition and<br />

increasing the lifetime value of a player.<br />

As Lotteries face ever-rising expectations<br />

from sophisticated online players<br />

and confront competition from<br />

well-funded commercial operators,<br />

they are working harder than ever to<br />

sustain Internet sales growth. To expand<br />

the player base and give players<br />

reasons to keep playing, Lotteries<br />

must look to increase their online<br />

portfolio of games, with offerings that<br />

entertain players.<br />

DOES YOUR INTERNET CHAN-<br />

NEL INCLUDE BINGO?<br />

Bingo is one of the fastest-growing<br />

segments of the online gaming arena.<br />

Since 2004, the online bingo market<br />

has exploded, growing from an industry<br />

worth u 226 million to nearly u1.4<br />

billion worldwide [*Source: GBGC<br />

<strong>2011</strong>]. Bingo rooms offer players excitement<br />

through jackpots, guaranteed<br />

prizes, and side games and by<br />

creating a community of players that<br />

is largely female.<br />

Having an online Bingo offering is a<br />

logical extension of any Lottery’s Internet<br />

offering. Today, 90% of bingo<br />

players in the UK market play Lotto<br />

as well. The player base demographic<br />

is comprised of 80% women between<br />

the ages of 30 to 50 with the remaining<br />

20% male base being in the same<br />

age range.<br />

Time on a bingo site is time spent<br />

communicating with other players in<br />

chat rooms moderated by Chat Masters,<br />

sharing demographic information,<br />

and playing side games like eInstants.<br />

This is an entirely different win<br />

experience for players and a lucrative<br />

second revenue stream from the interactive<br />

channel for Lotteries.<br />

To find an example of the powerful<br />

impact of bingo on a Lottery’s Inter-<br />

net portfolio, we need only to look as<br />

far as Finland. Having analyzed the<br />

success of bingo in places like the<br />

UK, Veikkaus saw the potential for<br />

tremendous growth in its Internet<br />

portfolio. As Veikkaus undertook the<br />

massive renovation of the Lottery’s<br />

Internet site, it recognized that the<br />

inclusion of eBingo would access a<br />

missing player demographic of women<br />

from 30-40 years of age.<br />

A CASE STUDY: VEIKKAUS EBINGO<br />

Since 1997, when it launched its first<br />

Internet games, Veikkaus has developed<br />

one of the most successful<br />

Internet channels in the lottery industry.<br />

With annual Internet sales of<br />

about u 400 million in 2010, Veikkaus<br />

operates the biggest Web shop in Finland,<br />

measured in revenue. Initially,<br />

the channel was fueled by sports betting,<br />

predominantly male-oriented<br />

game. As a result of this reliance on<br />

sport, the Veikkaus Internet channel<br />

player demographics became heavily<br />

skewed toward male players.<br />

Since 2007, draw games have been the<br />

fastest-growing game category on the<br />

Veikkaus website, and in 2010, for the<br />

first time, the total Internet sales of<br />

draw games surpassed that of sports<br />

betting games. However, player base<br />

imbalance persisted. To address that<br />

imbalance, Veikkaus had looked back<br />

to its history with eInstant games in<br />

order to move forward.<br />

Veikkaus had already enjoyed success<br />

with its electronic instants or eInstants<br />

games, which were launched<br />

in 2005 on the website. The lesson<br />

learned from the eInstants was that<br />

it attracted a different player demographic<br />

than sports betting games<br />

with a considerable number of female<br />

players. The other lesson learned was<br />

that people played the game at different<br />

times than for example sports<br />

betting. It was not unusual to see<br />

players buy eInstants during their<br />

lunch breaks. Therefore, the opportunity<br />

to capitalize on even more engaging<br />

and entertaining games that<br />

could be played at will was apparent<br />

to Veikkaus.<br />

In 2008, Veikkaus decided to make<br />

changes to improve the female to<br />

male player ratio. Because of the<br />

known appeal of bingo games to<br />

GAMBLING TECHNOLOGIES<br />

4 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

women players, Veikkaus selected it<br />

as a new addition to its Internet portfolio.<br />

There were three main driving factors<br />

that pushed Veikkaus to go for the Internet<br />

bingo game:<br />

1 The disproportionate ratio of male<br />

players to female players on the<br />

Web channel.<br />

2. The desire to offer games that are<br />

more social in nature. The chat feature<br />

of bingo supports the community<br />

feel of the game.<br />

3. The need to bolster its game suite<br />

to include a greater quantity of entertaining<br />

games to better compete<br />

against illegal and off shore operators.<br />

Ultimately, Veikkaus worked to offer<br />

the Finnish public a safe and sound<br />

state-controlled alternative to the<br />

growing cross-border operators.<br />

GTECH and GTECH G2 worked<br />

closely with Veikkaus during both the<br />

business requirements gathering and<br />

the final game requirements gathering<br />

phases to help equip Veikkaus to<br />

enter the Internet bingo business.<br />

Veikkaus realized that bingo is not a<br />

typical “fire-and-forget” lottery game,<br />

but a game that requires active management<br />

for both game scheduling<br />

as well as chat hosting. Best practices<br />

from the commercial bingo<br />

world were transposed to meet WLA<br />

requirements and put into action at<br />

Veikkaus.<br />

In addition, GTECH G2 provided<br />

extensive training to Veikkaus Chat<br />

Moderators staff to ensure success in<br />

this very important area of product<br />

support. The Chat Moderators are the<br />

only direct contact with players other<br />

than a 24-hour help line. They ensure<br />

that proper behavior is always maintained<br />

on the site.<br />

As the performance statistics show,<br />

the Veikkaus eBingo program is an<br />

unequivocal success:<br />

• Bingo launched in September 2010<br />

– proceeded by less than a ninemonth<br />

implementation project –<br />

and in conjunction with a complete<br />

redesign of the Veikkaus Internet<br />

site.<br />

• On a population base of 4 million,


weekly sales are more than 1 million<br />

Euros, which translates to u 50 – 60<br />

million in annual sales.<br />

• On average, there are 60,000 players<br />

a month and 2,000 of them play during<br />

peak hours.<br />

The revamp of the Veikkaus Internet<br />

gaming and addition of eBingo sought<br />

to improve contact with customer<br />

groups who played infrequently and<br />

offer safe gaming options for young<br />

adults. Internet gaming increased in<br />

popularity within the desired target<br />

groups and the proportion of women<br />

using the service grew significantly.<br />

BEST BINGO PRACTICES<br />

Bingo rooms offer players excitement<br />

through jackpots, guaranteed prizes,<br />

and side games and by creating an<br />

active, receptive player community.<br />

Lotteries have a huge advantage by<br />

already managing an existing player<br />

base. This is the starting point for success<br />

of online bingo, where liquidity is<br />

without doubt a critical success factor<br />

for any online bingo room. Bingo<br />

rooms thrive off liquidity, giving players<br />

more jackpots and prizes. Creating<br />

a great bingo site requires the site<br />

to have strong headline promotions<br />

with big and most importantly winnable<br />

jackpots.<br />

A strong chat community and compelling<br />

chat features and functionality<br />

are also essential elements for<br />

creating a successful online bingo<br />

site. Features such as live presenters<br />

and chat functions enhance the<br />

experience so bingo players can create<br />

personal online communities<br />

that help to create a compelling and<br />

inviting play environment. Through<br />

live-streaming video, online presenters<br />

appear on a small screen within<br />

the bingo client and boost the entertainment<br />

value by interacting with<br />

players in the chat room. They host<br />

unique chat games, award special<br />

cash bonuses and pass on information<br />

about upcoming games and promotional<br />

offers.<br />

The importance of friendly commu-<br />

nication in bingo cannot be overemphasized.<br />

To this end, GTECH G2<br />

has launched a sleek new chat client<br />

and a number of valuable promotion<br />

functions that allow players to:<br />

- Create a unique public profile with<br />

avatar.<br />

- Create a personal buddy list and enjoy<br />

private chat.<br />

- Customize chat font style, color, and<br />

size.<br />

- Express emotion through animated<br />

smileys.<br />

- Use useful animated acronyms such<br />

as LOL (laughing out loud) and BRB<br />

Interactive gaming presents an exciting<br />

opportunity for Lotteries to diversify<br />

their product lines and appeal to many<br />

different player segments with games<br />

that are uniquely positioned to meet<br />

specific player needs. Each game can<br />

be configured with attributes and play<br />

mechanics that influence player behavior<br />

in this channel so that Lotteries can<br />

gain playership from segments that had<br />

previously been under-represented in<br />

lottery play. If launched properly with<br />

the right product, support services<br />

GAMBLING TECHNOLOGIES<br />

5 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

(be right back).<br />

Bingo players demand to be entertained<br />

and in response the site ideally<br />

should offer all variations of bingo:<br />

75-Ball Bingo (Classic, Variant and<br />

Pattern), 80-Ball Bingo and 90-Ball<br />

Bingo. To heighten the player experience,<br />

an extensive library of side and<br />

mini games should be available with a<br />

large range of brand games to attract<br />

new players to the site. Finally, and<br />

perhaps most importantly, the site<br />

must be user friendly with clear and<br />

simple navigation to aid and enhance<br />

the customer journey.<br />

marketing plan and chat functionality,<br />

bingo can open up an opportunity for<br />

Lotteries to attract new players.<br />

The Internet is part of everyone’s future<br />

and looking at the success of bingo in<br />

Finland, there is no doubt that this is a<br />

potential growth portal for the world’s<br />

lottery industry. GTECH G2 is excited<br />

to be able to leverage all its expertise<br />

to create what will without doubt be<br />

some of the best online bingo networks<br />

in the world.


GAMBLING TECHNOLOGIES: FUTURE & CHALLENGES<br />

PARTNERSHIPS FOR PERFORMANCE<br />

COOPERATIVE SERVICES PROGRAMS IMPROVE OPERATIONS,<br />

OPTIMISE GAMES AND REJUVENATE SALES<br />

Lottery organisations across Europe<br />

are entering one of the most exciting<br />

times in history. The advancement of<br />

Internet games, social media channels<br />

and innovative programs that<br />

ensure responsible play are culminating<br />

in a new era of growth and expansion<br />

across the continent.<br />

Rising to meet the demands of a more<br />

complex operating environment, expanding<br />

channels and changing player<br />

demographics, some of the most<br />

successful Lotteries in Europe have<br />

created new agreements – and a different<br />

kind of relationship with their<br />

suppliers.<br />

This movement is exactly why Chris<br />

Allen doesn’t think of Scientific<br />

Games as a supplier to Lotteries – but<br />

as a strategic business partner. Particularly,<br />

under the expanded contract<br />

arrangements known as Cooperative<br />

Services Programs (CSP) underway in<br />

multiple jurisdictions, that allow the<br />

combination of knowledge, years of<br />

experience, innovation and resources<br />

to improve the gaming experience,<br />

develop the retail marketplace and<br />

engage players with a Lottery brand.<br />

“When you’re in a partnership with<br />

a Lottery, you are able to get a real<br />

view, a more holistic view that enables<br />

you to work together to improve<br />

sales,” said Allen, Director of Global<br />

Performance Marketing for Scientific<br />

Games. “We work with the Lottery to<br />

analyze the game product, players,<br />

the retail marketplace and the supply<br />

chain from top to bottom—and the<br />

partnership allows us to have more<br />

educated conversations about opportunities<br />

for revenue growth and<br />

player development.”<br />

Scientific Games has a portfolio that<br />

allows it to bundle instant tickets,<br />

technology, facilities management,<br />

analytics and other services for Lottery<br />

partnerships – including design<br />

and installation of game management<br />

systems, telemarketing, field sales<br />

and retail development. Partnerships<br />

may also include end-to-end instant<br />

game management, research best<br />

practices, product reviews, player<br />

analysis, inventory and distribution,<br />

sales staff training and advising the<br />

Lottery on other key areas.<br />

Many of the company’s CSP best practices<br />

have been incubated in the U.S.,<br />

beginning in the mid-1980s, with the<br />

concept for a customised partnership<br />

with the New York Lottery. After<br />

several variations, the model was<br />

GAMBLING TECHNOLOGIES<br />

6 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

brought to Europe in 2002 with the<br />

Lottomatica partnership and applied<br />

to the re-launch of the instant game<br />

category known as “Gratta e Vinci.”<br />

This partnership model helped drive<br />

instant ticket retail sales from u 411<br />

million in 2004 to over u 9 billion in<br />

2010. It has become one of the biggest<br />

Lotteries in the world.<br />

With performance management programs,<br />

Scientific Games builds on the


success of a Lottery’s traditional core<br />

retail product and customizes a plan<br />

to drive future growth based on the<br />

company’s experience working with<br />

so many Lotteries around the globe<br />

over the past four decades. The plan<br />

focuses on the core business areas<br />

of game product optimisation, retail<br />

development, retailer expansion and<br />

player acquisition. It is executed in<br />

Europe through Scientific Games’<br />

printing facility in Leeds, technology<br />

center in Vienna, and company offices<br />

in London, Ballymahon, Stockholm,<br />

Hamburg, Bielefeld and Budapest.<br />

“Our program is a consumer oriented<br />

approach that manages multiple variables<br />

and brings end-to-end improvements<br />

and efficiencies across the<br />

supply chain,” said Allen. “It’s about<br />

best practices, but it’s also about innovation<br />

and distribution expertise:<br />

delivering the right product for the<br />

right player in the right location at the<br />

right time.”<br />

These same principles were deployed<br />

with the rollout of the China Sports<br />

Lottery, which has grown from 1,500<br />

terminals in one province, to tens<br />

of thousands of terminals deployed<br />

throughout every province in China<br />

since its debut prior to the Beijing<br />

Olympics in 2008.<br />

Working together within Germany’s<br />

regulatory framework to drive business,<br />

Lotto Hessen and Scientific<br />

Games achieved success by delivering<br />

value to players in both product<br />

and retail execution, despite marketing<br />

restrictions. In order to do this,<br />

Lotto Hessen focused on increasing<br />

loyalty and improving the excitement<br />

and credibility of the entertainment<br />

brand by using promotional tickets<br />

and price point expansion in the<br />

game planning process, along with<br />

delivery to market.<br />

“Throughout the last five years of our<br />

partnership with Scientific Games on<br />

instant tickets, we benefitted from<br />

significant and steady year-on-year<br />

growth in revenues,” said Alex Sausmikat,<br />

Prokurist Marketing & Vetrieb<br />

at Lotto Hessen in Germany. “Combining<br />

Lotto Hessen’s market expertise<br />

and Scientific Games’ proven best<br />

practices helped us to achieve the<br />

best results in a highly regulated environment.”<br />

“We tailor each partnership arrangement<br />

to meet the specific requirements<br />

of the Lottery jurisdiction,”<br />

said Allen. “A close working relationship<br />

is key. The flexibility of the partnership<br />

approach also helps overcome<br />

differences in legislation, as<br />

well as the differences across Europe<br />

in culture, language, currency, consumer<br />

and retailer behavior.”<br />

In Lithuania, where an expanded<br />

partnership program with Scientific<br />

Games began in February <strong>2011</strong>, sales<br />

have doubled in the last five months<br />

and are expected to double again by<br />

the year’s end, then again in 2012.<br />

“I am happy to say that the implementation<br />

of a new strategic game plan<br />

and the provision of Scientific Games’<br />

additional marketing services have<br />

resulted in exceptional sales growth<br />

in <strong>2011</strong>,” said Midaugas Marcinkevicius,<br />

IT Director for Olifeja. “We are<br />

excited and looking forward to even<br />

better results in the future.”<br />

After a competitive bid process, De<br />

Lotto selected Scientific Games’ CSP.<br />

The partnership began with the top<br />

25 retailers from the Netherlands<br />

• Develop a variety of products that<br />

offer the expectation and desired<br />

value for all consumer segments<br />

• Ensure those products are delivered<br />

in the right manner to the<br />

right retailers and displayed in<br />

the way they were intended<br />

GAMBLING TECHNOLOGIES<br />

CSP Steps to Success<br />

7 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

traveling to New York City to learn<br />

about SalesMaker, which will be<br />

part of the Lottery’s upcoming retail<br />

expansion drive to recruit new retailers<br />

using best practices.<br />

SalesMaker is a retail development<br />

program created by Scientific Games<br />

that shows retailers the importance<br />

of the Lottery category to their overall<br />

business. The key objective of Sales-<br />

Maker is to create the ideal lottery<br />

point-of-sale environment at retail.<br />

Retailers receive continuous training<br />

and real-world demonstrations on<br />

how to position lottery products as a<br />

“business within a business.”<br />

“Thanks to Scientific Games’ CSP<br />

program we are finally able to have<br />

a real dialogue with our retailers and<br />

deliver the products they need, when<br />

they need them,” said Frank Bijman,<br />

Chief Creative Officer of De Lotto.<br />

“This dedication to our retailers, combined<br />

with Scientific Games’ superior<br />

instant ticket products and marketing<br />

services, leads us to believe we can<br />

expand the Dutch Lottery – hopefully<br />

by double digits.”<br />

Capturing the DNA of lottery best<br />

practices, Scientific Games’ CSP enables<br />

the company to manage a Lottery’s<br />

instant game operations as a<br />

means of improving operating efficiencies<br />

for the Lottery, while increasing<br />

sales through improved execution<br />

of retail and player development.<br />

• Work with retailers to embrace<br />

lottery as a category and leverage<br />

lottery traffic to enhance overall<br />

store profitability<br />

• Adjust and refine the process<br />

continually to ensure all initiatives<br />

are complementary and on<br />

target for maximum profit to lottery<br />

beneficiaries


GAMBLING TECHNOLOGIES: FUTURE & CHALLENGES<br />

UNIVERSAL GAMING EXPERIENCE<br />

CUSTOMER PROXIMITY AND SOLUTION ELASTICITY - KEY DRIVERS <strong>OF</strong> SUCCESS<br />

The exciting world of gaming touches<br />

upon the very nature of human entertainment.<br />

Technology and business<br />

processes act synergistically to<br />

provide the very best of traditional<br />

games, while new gaming models become<br />

popular, such as the Internet,<br />

Mobile and more recently iTV applications,<br />

and are established as dominant<br />

means of user access, acting in<br />

complement to the traditional retailbased<br />

experience.<br />

The role of Governments and Government-sponsored<br />

organisations are<br />

pivotal in this respect. New regulatory<br />

frameworks are being designed<br />

or already implemented in a number<br />

of European countries, which set the<br />

groundwork for a significant change<br />

in the eGaming industry, as well as the<br />

opportunity for new developments in<br />

the lottery industry.<br />

<strong>THE</strong> <strong>LOTTERIES</strong> POSITION<br />

In this new regime, Lotteries need to<br />

position themselves, by preserving<br />

and enhancing their leading role. The<br />

path needs to (a) effectively address<br />

the challenge from new entrants in<br />

the market, (b) address new demographics,<br />

as newer generations become<br />

the next target customers, (c)<br />

embrace and optimise new technolo-<br />

gies and cross channel capabilities<br />

and (d) embrace the emerging of new<br />

business models ensuring business<br />

continuity with their traditional customers’<br />

bases.<br />

The key drivers that will prevail in this<br />

new industry roadmap are:<br />

• Taxation, which reflects the different<br />

RTP (Return To Players) levels;<br />

• Responsible Gaming Frameworks<br />

that will gain a more significant role;<br />

• New games that go beyond the<br />

“standard offer” of the eGaming industry;<br />

• A redefinition of the concepts of liquidity<br />

and network games operations;<br />

• The “own your player” concept becomes<br />

a key customer initiative;<br />

• Personalisation of products that<br />

prove to be a differentiating factor;<br />

• B2B vs B2C ceases to be a dilemma<br />

and clear separation lines are applied;<br />

• Government monitoring and operational<br />

control become key technology<br />

and business elements.<br />

To be competitive in this new environment,<br />

it is necessary for Lotteries<br />

to adopt a strategy that will enable<br />

them to quickly react to market<br />

changes by appropriately adapting<br />

GAMBLING TECHNOLOGIES<br />

8 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

their technological infrastructure,<br />

seamlessly integrate new and exciting<br />

content and channels, and above all<br />

to understand the behavior and preferences<br />

of their customers and to act<br />

proactively, anticipating their desires.<br />

Hence, Lotteries have to adopt a strategy<br />

that will allow them to really “embrace/engage<br />

their customers”.<br />

<strong>THE</strong> NEW PLAYER<br />

How much do we know about our<br />

players? What are the elements that<br />

will assist an organisation in making<br />

the player stay longer and play<br />

more, while at the same time providing<br />

the most advanced and entertaining<br />

player experience? How can<br />

one combine the very nature of traditional<br />

retail-based gaming, where<br />

a limited amount of data is made<br />

available, with the full-blown Internet<br />

registered gaming model, where a lot<br />

of data can be available? How can we<br />

achieve real player protection, allowing<br />

the creation of competitive and<br />

personalised campaigns, especially in<br />

a “network game” with shared liquidity?<br />

Although these questions may sound<br />

familiar, effective answers assume advanced<br />

technology focused on solving<br />

these issues. We, at INTRALOT,<br />

believe in:


• The power of an effective and unifying<br />

player management platform;<br />

• The power of solution elasticity i.e.<br />

adapting and customizing our solutions<br />

to the specific requirements of<br />

our partner;<br />

• The strength of a B2B partnership,<br />

the shared understanding of risks,<br />

and customer proximity;<br />

• The power of an open game ecosystem<br />

that allows for an easy, fast and<br />

seamless integration of good external<br />

content as well as our partners’<br />

own developed games;<br />

• The operations excellence that provides<br />

our partners with technology<br />

and business services to understand,<br />

manage and ultimately<br />

engage their customer.<br />

A true manifestation of our approach<br />

is evident when our partners investigate<br />

the participation in what is usually<br />

called a network (such as a Poker<br />

Network) to take advantage of liquidity<br />

levels, with a number of competing<br />

brands or B2C operators, hooked<br />

into the network, and competing in<br />

the acquisition process. The network<br />

operator applies restrictions (the Network<br />

Policy) to protect against, for<br />

example, “rake-back” policies or even<br />

more balancing marketing activity to<br />

avoid cross-brand competition. Although<br />

this strategy may prove worthwhile<br />

for small scale operators, this is<br />

not the case for large scale brands,<br />

with significant brand and market<br />

awareness, and even more for Lotteries<br />

due to their dominant role within<br />

a specific country. It is obvious that, in<br />

this case, Lotteries deserve their own<br />

liquidity, their own game design and<br />

variations as well as their freedom to<br />

implement proper marketing strategies<br />

without the need to compromise<br />

within the shared-liquidity network.<br />

INTRALOT’s solutions provide for<br />

such a possibility, and our customer<br />

proximity and solution elasticity enable<br />

the customisation and own liquidity<br />

set up, adapted to the desires<br />

of our Lottery partners.<br />

<strong>THE</strong> UNIVERSAL GAMING EXPE-<br />

RIENCE<br />

INTRALOT is strategically positioned<br />

to develop and deploy the universal<br />

gaming experience that implements<br />

the above strategy and responds to<br />

the growing and proliferating needs<br />

that these questions pose. Universal<br />

gaming positions the customer in<br />

the center, and all customer interaction<br />

points are managed in a single<br />

and transparent manner, irrespective<br />

of the engagement model (through<br />

retail channels, Internet, mobile or<br />

iTV) or his preferences of game play.<br />

Universal gaming unifies all elements<br />

that are generated throughout the<br />

customer gaming lifecycle, analyzes<br />

preferences and proactively proposes<br />

the necessary actions to optimize revenues<br />

by respecting responsible gaming<br />

principles.<br />

We believe in cross-platform mobility<br />

and unification from a player<br />

perspective, and therefore we have<br />

developed our technologies to be<br />

truly seamless to the player, offering<br />

a shared login and authentication, a<br />

shared wallet and a depositing system<br />

across the platforms. All these technologies<br />

allow the players to make<br />

use of their deposited funds and play<br />

whenever and wherever they are.<br />

Contrary to usual beliefs that a single<br />

wallet suffices, our customer platform<br />

goes beyond that and embeds<br />

advanced online segmentations and<br />

user profiling that allow our partners<br />

to understand their players and act in<br />

real time. This includes also the Internet,<br />

Mobile, iTV as well as the VLT<br />

solution, to allow the player identity<br />

to be used across these platforms and<br />

provide seamless business continuity.<br />

Key elements of our Universal Gaming<br />

Experience Strategy are:<br />

• New Design. A platform built bottom<br />

up that is not part of a specific<br />

game, using the latest in Software<br />

Development Architectures and<br />

Technologies.<br />

• Game Agnostic. Design centered<br />

around the player and the customer<br />

and not around the game.<br />

• Expandability. Built in API integration<br />

and SOA frameworks that allow<br />

an easy expansion and introduction<br />

of Long-Tail games, complementary<br />

with strategic core games.<br />

• More than a single wallet. Our cus-<br />

GAMBLING TECHNOLOGIES<br />

9 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

tomer platform embeds advanced<br />

online segmentations and user profiling,<br />

offering real time insight on<br />

the players.<br />

• Single Network, more control. Many<br />

games integrated in one single point<br />

of control together with the integration<br />

of dedicated network games.<br />

• Server based choice & flexibility.<br />

Since the client device in itself<br />

contains no game logic (all server<br />

based), the client will develop it according<br />

to his own needs; one can<br />

include any games or applications<br />

one chooses. In doing so, the customers<br />

do not have to download<br />

new software as the new offering is<br />

automatically presented to them.<br />

Another benefit is that our partners<br />

can add their own games with a simple<br />

API integration!<br />

• Stability & scalability. Regardless of<br />

the system load, our long standing<br />

track record proves that your players<br />

get the fastest and smoothest playing<br />

experience they deserve.<br />

• Differentiation. INTRALOT’s software<br />

is parametrical and offers unparalleled<br />

customisation possibilities,<br />

with regard to design, features<br />

and applications. The user is not<br />

restricted to just a redesign of colors<br />

and pictures of a generic client from<br />

the other software suppliers. In an<br />

increasingly competitive market, a<br />

user of INTRALOT software stands<br />

out and brands the client in “his<br />

own way”.<br />

INTRALOT, through its experience<br />

gained by working with the most successful<br />

lotteries around the world,<br />

always offers technological solutions<br />

that meet and go beyond its clients’<br />

needs and expectations.<br />

Having the customer in the center<br />

of our philosophy, we strive to bring<br />

only the best technological solutions<br />

in the new era of gaming. The Universal<br />

Gaming Experience is the new<br />

decisive step towards the future of our<br />

industry and INTRALOT is ready to<br />

offer to its customers the opportunity<br />

to “live” in it.


LOTTERY & TECHNOLOGY<br />

WILL FUTURE<br />

TECHNOLOGIES HELP<br />

STATE <strong>LOTTERIES</strong>?<br />

Our Lotteries are, like any other corporation, subjected<br />

to the technological landscape that keeps changing at<br />

breathtaking speed, affecting business operations and<br />

people’s preferences along the way. The Internet, with its<br />

online applications, has radically transformed the lottery<br />

games operations. Driven by newer, accessible and more<br />

global technologies and a liberalization of online gambling<br />

in many countries, Internet gambling is becoming<br />

one of Europe’s fastest growing industries, according to the<br />

European Commission’s Green Paper. Novelties keep surfacing,<br />

with the latest craze being mobile gambling and<br />

social media networks. Europe is now the largest Facebook<br />

continent with 205 million users, ahead of North America<br />

with 203 million, according to the site socialbakers.com.<br />

These trends have opened up a whole new market segment<br />

with online players of all ages (as a matter of fact the age<br />

SVENSKA SPEL:<br />

AN OPEN GAMING SYSTEM<br />

Svenska Spel in Sweden is working at transforming the<br />

interactive gaming experience for its players by offering<br />

solutions that respond to the demand for innovation and<br />

constant access. Mobility is an overall trend, which influences<br />

consumer behaviour. One major challenge that this<br />

technology has presented to Svenska Spel is the ability to<br />

provide its players with a seamless gaming experience regardless<br />

of the place, time and device being used, because<br />

customers want to reach the Lottery through many different<br />

devices.<br />

MOBILE STRATEGY<br />

With the high number of Smartphones in Sweden, Svenska<br />

Spel is developing native apps for iPhone, allowing<br />

players to follow their bets, games, goals services and<br />

more. The Lottery is also working on a mobile web solution<br />

to optimise the betting experience on Smartphones,<br />

tablets or other mobile devices. In order to be efficient,<br />

this new technology needs to present flexible solutions<br />

to quickly respond to customers’ needs, regardless of the<br />

distribution channel. For Svenska Spel, there is no doubt<br />

that mobile services will play a key role in providing products<br />

and services; as a matter of fact, this is already a requirement<br />

in order to retain existing players and reach a<br />

new and younger segment of customers.<br />

There are many challenges ahead in finding a way to<br />

provide the best gaming experience: the Lottery’s strategic<br />

agenda targets a short timeline (3-4 years), the chosen<br />

mobile technology must be flexible and a true open<br />

gaming platform to help Svenska Spel quickly deliver its<br />

full line of products in a safe and secure online environment<br />

must be developed. With a constant presence and<br />

LOTTERY & TECHNOLOGY<br />

group of people over 50 is one of the fastest growing Facebook<br />

sectors).<br />

As explained by many Lottery executives, organisations are<br />

still in a learning curve when it comes to the latest technological<br />

trends, be it mobile devices such as cell phones and<br />

tablets, or social media networks. In this issue of EL NEWS,<br />

we have asked our Premium Partners as well as some Lotteries<br />

to give an overview of their newest experimentation<br />

with technology and what the future holds for them. These<br />

articles highlight the technological impact on the development<br />

of a better relationship with retailers and players, the<br />

question of ensuring security in the age of social gambling<br />

and the question of propelling Lotteries to modern style organisations.<br />

top quality products and services at retail stores, on the<br />

Internet or mobile devices, Svenska Spel will remain the<br />

top operator of games in Sweden.<br />

10 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


<strong>THE</strong> NATIONAL LOTTERY COMPANY <strong>OF</strong> IRELAND:<br />

“CURRENT AND CALL TO ACTION” CONTENT<br />

In a world of digital gaming entertainment, competitiveness<br />

requires innovation, flexibility and most of all<br />

a constant presence everywhere. The National Lottery<br />

Company (NLC) of Ireland has therefore implemented a<br />

plan to both attract new players and provide an improved<br />

experience for existing players on all platforms.<br />

Knowing that many of its products are impulse purchases<br />

and relying on research analysis, the NLC decided to<br />

place digital signage at points of sale to grab players’ attention.<br />

The content as well as the strategic placement of<br />

these screens are important factors. For each NLC draw<br />

game, the digital screens show the current increasing<br />

jackpot amount and a countdown in minutes to the next<br />

draw. The signage is located facing the direction of the<br />

normal queue at cash registers for maximum effect to interest<br />

players in particular games and educate them with<br />

real time information directly downloaded from the National<br />

Lottery’s central system. Currently, the Lottery has<br />

installed digital signage in 100 stores and expects to implement<br />

this technology in 1000 stores by the end of <strong>2011</strong>.<br />

The result will be an incremental lift in sales, especially<br />

during periods of large jackpots. The current NLC retail<br />

network is comprised of over 3,700 stores throughout the<br />

Republic of Ireland, all connected to the central Lottery<br />

system in Dublin, using wired broadband.<br />

Another improvement is being trialed in selected supermarkets<br />

throughout Ireland. To increase overall store<br />

sales and the number of points of sale in supermarkets,<br />

some lottery product sales activities have been transferred<br />

to small quick-pick terminals at individual checkouts<br />

supplementing the traditional lottery sales at the<br />

customer service desk.<br />

ONLINE AND MOBILE PRESENCE<br />

FOR <strong>THE</strong> NLC<br />

Last June, the NLC decided to consolidate its two<br />

websites into a single site to make online registration<br />

an easier task and provide a more efficient online<br />

experience for both players and visitors. The<br />

site now offers a choice between English and Gaelic<br />

(Irish language) and all the popular features (e.g.<br />

previous draw results, information on future draws,<br />

etc.) are just one click away. This redesigned website<br />

has resulted in a 10% increase in regular visitors and<br />

players alike as well as the time spent (up by 20%)<br />

searching the site. On days with large jackpots, the<br />

site receives over 120,000 visitors. Another element<br />

emphasizing the Lottery’s willingness to be more ac-<br />

LOTTERY & TECHNOLOGY<br />

cessible has been the new Web service enabling third<br />

party sites to read draw results automatically from<br />

the NLC website. The NLC is also present on mobile<br />

devices with new iPhone applications, allowing users<br />

to check draw results and generate quick-pick numbers<br />

right on their smartphone.<br />

11 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


LOTTERY & TECHNOLOGY<br />

The latest technology has allowed the NLC to improve<br />

its brand image, to have better customer care<br />

and to increase sales while maintaining a high level<br />

of security. In today’s online environment, the Lottery<br />

had to address some concerns and one of the<br />

most demanding aspect of online gaming is to be<br />

consistently available on all media channels and<br />

provide accurate and complete information.<br />

NEW TECHNOLOGY AT <strong>THE</strong> NLC<br />

Also the NLC has to make sure its retailers provide<br />

the optimum location in their stores for the new digital<br />

signage screens and with so many different types<br />

of mobile devices (Smartphones, tablets, etc), the<br />

Lottery information and website must be easily accessible<br />

and available to players, irrespective of the<br />

device they use.<br />

Part of being a responsible institution is to have a<br />

strong social commitment, while protecting game security,<br />

players’ privacy, data control and confidence in<br />

the brand. Therefore lotteries need to take note of these<br />

new communication and distribution channels and<br />

come up with a framework where they can be safely<br />

implemented. Working in tandem with suppliers who<br />

adopt the best technology to ensure their competitive-<br />

LOTTERY & TECHNOLOGY<br />

Therefore the Lottery of Ireland is now focused on<br />

offering more mobile and Internet capabilities with<br />

special attention to social media and corporate social<br />

responsibility as well as on launching Self-Serve<br />

units if approved by the regulator. In the works is a<br />

new website portal for the retailers and plans to place<br />

more fully integrated POS in more stores around the<br />

country.<br />

ness and their attractiveness to players and all stakeholders,<br />

is essential in that regard. There is no turning<br />

back and the online technology keeps developing at<br />

an even faster pace. With social media allowing people<br />

to create their own online worlds where they can<br />

hang out and share their experiences virally, a Lottery<br />

with the right technology to harness their players’ online<br />

needs will become a success story.<br />

12 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


CASE STUDY<br />

SOCIAL MEDIA, INESCAPABLE STAKE<br />

FOR <strong>THE</strong> NATIONAL LOTTERY<br />

<strong>OF</strong> BELGIUM<br />

POWERFUL CONDUITS <strong>OF</strong> MODERNITY, BRAND’S<br />

VALUE AND CONSUMER SATISFACTION<br />

Social Media today are an integral part of the consumer<br />

commodities as well as communication practices and the<br />

gaming world, creating enduring changes with a direct<br />

impact on the players’ expectations, the management of<br />

media influence and the games mechanics.<br />

Social Media present us with formidable opportunities<br />

(an engaged and active cross-generation audience, a<br />

phenomenal viral effect, a great potential for engagement<br />

but also a channel for loyalty and acquisition) as much<br />

as new risks (image management, new legal questions,<br />

super-reactivity, responsible gaming). But the true risk<br />

relates mainly to inability to control these new issues.<br />

Players and stakeholders’ conversations have already begun.<br />

And their powerful impact is substantial. Ignoring<br />

what is being said about us on the Web, being incapable<br />

of responding immediately to stop a budding crisis and,<br />

besides managing the criticism, being incapable of initiating<br />

enthusiastic stories about our brands represent a<br />

huge risk nowadays.<br />

MULTIPLE STAKES THAT DESERVE A DEDI-<br />

CATED EXPERTISE<br />

SinceSeptember2010,themanagementofSocialMediais<br />

being handled internally by the National Lottery through<br />

the creation of a ‘Consumer Dialogue Specialist & eQuality<br />

Control’ position within the Marketing, Sponsoring<br />

& External Communications Department. Its mission:<br />

with the function of supporting Consumer Dialogue, the<br />

question is to define the strategic pillars of Social Media<br />

development in order to create satisfied players communities,<br />

manage the e-reputation of the National Lottery in<br />

the social web, support the optimal integration of Social<br />

Media by existing communication strategies and ensure<br />

the management of cross-channel interests associated<br />

with the development of Social Media (legal issues, team<br />

training, crisis communication, Social Media policy, Social<br />

Media & e-commerce and more). Adding to this new<br />

position, a strong expertise on Social Media enables us to<br />

build a strategic vision adapted to the interests of the National<br />

Lottery, but also to handle internally, in a continued<br />

and transversal manner, the stakes and evolutions associated<br />

with Social Media projects. This internal management<br />

is also reinforced by a Community Manager function<br />

incorporated with the Digital Manager’s mission to<br />

handle, on a daily basis, the Facebook corporate page of<br />

the National Lottery.<br />

GETTING STARTED, TESTING - YES. WITHOUT<br />

STRATEGIC DIRECTION - NO.<br />

Integrating Social Media is an extensive job with numerous<br />

implications (legal, communication, IT, customer<br />

service, sponsoring, promotions, sales, HR, research,<br />

etc.), constant adjustments and steps that must be staged<br />

for a time period (2-year vision). The National Lottery has<br />

defined different strategic tools to conform to that development:<br />

- A ‘Social Media Audit’ to clearly define the risks and opportunities;<br />

- Precise guidelines to describe our development principles<br />

regarding Social Media;<br />

- A ‘Strategic Social Media Framework’ to indicate the<br />

different development stages and the concerned teams<br />

for each step;<br />

LOTTERY & TECHNOLOGY<br />

- A ‘Map of the Social Media Structure’ to organise the<br />

various presences within the different networks, according<br />

to the National Lottery’s interests;<br />

- And finally a ‘Social Media Timeline’ to spread the efforts<br />

over the next 12 to 24 months.<br />

Flexible strategic tools, reiterative and always changing,<br />

centre the efforts around priorities and not according to<br />

the trends or the latest technological innovations.<br />

The development of these tools is on a par with the definition<br />

of corporate and marketing objectives that would<br />

be sustained by Social Media projects. The <strong>2011</strong> priorities<br />

are threefold:<br />

1. Reinforce players’ loyalty while the gaming portfolio is<br />

highly reinvented;<br />

2. Stimulate the relevance and the preference within the<br />

18-34 years old age group;<br />

3. Optimise the positive image associated with the National<br />

Lottery.<br />

FACEBOOK OR TWITTER? THAT IS NOT <strong>THE</strong><br />

QUESTION.<br />

The in-depth study of players and stakeholders’ conversations<br />

has enabled us to apply to each Social Media its<br />

specific potential for the National Lottery.<br />

- Facebook is the central point of our players’ conversa-<br />

13 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


CASE STUDY<br />

tions and the place for engagement with our brands.<br />

- YouTube is a management centre for our image, servicing<br />

Social Media and Search platforms. When players<br />

talk about us or our campaigns, their search might not<br />

bring them to our videos if we do not have an official<br />

presence on YouTube, but to those made about similar<br />

products by amateurs or foreign Lotteries and when<br />

this contact has not been considered, it becomes a lost<br />

opportunity.<br />

- Twitter is a new link in media influence that requires,<br />

at the very least, a daily monitoring. While its audience<br />

is more confidential than Facebook, its public is nonetheless<br />

extremely critical with an equally important<br />

potential impact (politicians, geeks, journalists, entrepreneurs).<br />

- Foursquare, Gowalla, Facebook Places, etc.: Digital<br />

tools servicing‘Real Life’ interests (events, points of sale<br />

and more).<br />

CREATING PLAYERS’ COMMUNITIES: KEY<br />

STEPS<br />

Our starting point: a Facebook corporate page created in<br />

the summer of 2010, linked to a campaign for the instant<br />

scratch-card game, Win For Life. By giving away tickets<br />

for music festivals via simple contests, the page attracts<br />

more than 5,000 fans.<br />

In December 2010, this presence is structured, and most<br />

of all animated in a lasting manner. Besides a campaign,<br />

with a regular involvement on the Facebook page (a regular<br />

communication is key to ensure the page visibility<br />

among the newsfeed for its fans), activities dedicated to<br />

its fans are created in a regular manner (a tab for contests,<br />

polls, applications with various themes, etc.), supported<br />

by targeted campaigns within Facebook (acquisition of<br />

new fans and reminders for others). Finally, the creation<br />

of a YouTube channel allows the centralization and reinforcement<br />

of the visibility of all video assets of the National<br />

Lottery. In these footsteps, the Facebook corporate<br />

page is experiencing a quick expansion going from 5,000<br />

fans to almost 20,000 in just one year.<br />

Even though the page recruits a lot of fans, its potential<br />

for engagement is limited to the National Lottery brand,<br />

more serious than entertaining – but also an institution<br />

that we enjoy to call to account. It is not a brand fans<br />

would mostly use to define their digital identity, unlike<br />

the game brands that are strongly anchored in the daily<br />

life of our players. Since May <strong>2011</strong>, emblematic brands<br />

have been working progressively on building their players’<br />

communities, with their own objectives, visual identity<br />

and content tone, that are managed on a daily basis<br />

by an external Community Manager. Everything is being<br />

thought out to achieve maximum synergy with the audiovisual<br />

productions, our sites, our newsletters and campaigns,<br />

the various media, the different departments as<br />

well as the events.<br />

It’s a success: more than 9,000 fans for the Euro Millions<br />

after three months, near 13,000 fans for Win For Life after<br />

one month… A total of almost 40,000 fans for the National<br />

Lottery and its brands after one year of presence and 8<br />

months of active management, largely surpassing the initial<br />

objectives. That result should get even better with the<br />

impending arrival of the Lotto brand and has positioned<br />

the National Lottery among the most active brands on<br />

Social Media in Belgium.<br />

LOTTERY & TECHNOLOGY<br />

1 YEAR. 40,000 FANS. ADDED VALUE AND<br />

KEY LEARNINGS?<br />

Establishing a dialogue space on Social Media means that<br />

you accept to be challenged and pushed around by your<br />

most attentive audience on all the changes in progress,<br />

the dreams they have and that do not yet exist, the problems<br />

too and most of all our timeliness. Social Media<br />

rhyme with extreme reactivity: It’s a dialogue in real time<br />

that never stops, including evenings and Sundays. A true<br />

challenge that requires us to get organised. But accepting<br />

such a challenge means that we have to question our<br />

interests and priorities in order to reposition even more<br />

consumers’ expectations in the centre of our dynamics. It<br />

also incurs to accept moving faster, even if it means pushing<br />

aside some of the processes. To question oneself, be<br />

flexible and adopt a new rhythm will no doubt be a warrant<br />

for modernity.<br />

Also it is about bringing along a new dimension to the<br />

brands, the same ones that provide the most loyal players<br />

with information and exclusive privileges, that will gain<br />

from their advice and initiate a regular dialogue between<br />

players and will see the emergence among them of the<br />

most loyal players – their ambassadors. This will also en-<br />

14 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


ich the experiences with the brands going from passive<br />

to interactive, becoming more entertaining and more inclusive.<br />

Played daily, they are connected to the intimate<br />

space of our players, their Social Graph, their friends. A<br />

Fan page that is well thought out and nicely animated<br />

consolidates the image of the brand, increases its sympathy<br />

asset, creates a daily link with its fans and reveals its<br />

natural ambassadors.<br />

But a presence on Social Media is also a very fast and efficient<br />

way to manage consumers’ satisfaction. Very often,<br />

during moments of preoccupation, Social Media are the<br />

first platform to release the information either through<br />

our channels or not. Ensuring an attentive and reactive<br />

management of the comments allows us to detect any<br />

incident and handle it very quickly. It’s like creating an<br />

abridgment between our brands and our players, which<br />

emphasises the positive feelings of our players. It is presenting<br />

numerous public “thank you” and pushing the<br />

players’ satisfaction out of the confined individual space<br />

to produce a public, viral and repetitive expression of enthusiasm.<br />

The last months have been filled with success and have<br />

been a learning experience.<br />

- Social Media are no magic bullets to reach younger<br />

players. These media work across generations, connecting<br />

our games to our audiences both young and<br />

mature. Forget about any miracle to rejuvenate an audience<br />

but dare imagine a clear success with the 30-50<br />

years old age group too.<br />

- Fans do not find us by themselves. A fan base is built<br />

upon a targeted communication and results in unprecedented<br />

interactive experiences (e.g. create a “Dream<br />

List” through an e-shopping interface for the launch of<br />

the Euro Millions page) and/or nice incentives (e.g. win<br />

a romantic trip, festivals tickets, donations to a charity,<br />

etc.). Facebook members are intensely courted. Gaining<br />

their attention must be earned and the same goes<br />

when it comes to retention.<br />

- Is your agency handling the advertising campaigns on<br />

Facebook perfectly? They are key factors for visibility<br />

and success on Facebook. And per Facebook’s own recognition,<br />

the digital agencies’ lack of experience in this<br />

field often compromises the results of the brands. Mastering<br />

the commercial environment of Facebook warrants<br />

in turn a precious response by Facebook’s teams<br />

(local antenna or Facebook Europe) when you fall victim<br />

to a bug.<br />

- Social Media, global media, strictly local opportunities.<br />

If access to Facebook, Twitter and other social media<br />

works for most of the brands without any restriction<br />

per countries, the Lotteries face challenges due to their<br />

territoriality, in a context where their brand names are<br />

often and paradoxically local namesakes in other countries.<br />

Thus beware of the tempting promises of the latest<br />

commercial opportunities tied to Facebook : Some<br />

are not implementable when a country filter is mandatory<br />

for a Fan page, as it is for all Lotteries. Getting to<br />

know the specific Facebook policies for Lotteries allows<br />

avoiding mishaps into impossible projects. Also, it is<br />

extremely difficult to track down many of the conversations<br />

on the local brands, when their names are slightly<br />

similar to those in neighbouring countries or when<br />

they are marketed in other countries. To find out what<br />

is said in a specific territory about well-known brands<br />

LOTTERY & TECHNOLOGY<br />

such as Lotto or Euro Millions is a definite challenge.<br />

And today’s online watch or e-reputation solutions are<br />

rarely successful at doing so. These are the limitations<br />

not to be ignored.<br />

- Social Media are never turned off. Insulting comments<br />

on a Sunday, a bug one evening at 10 pm … For certain<br />

brands, Sunday is even the day where fans are the most<br />

active. It is impossible to think of a Facebook page without<br />

an alert system and a manned management that is<br />

operational 7 days a week and after office hours.<br />

- Do you really know what they say about you? Managing<br />

Social Media is a whole application that cannot be<br />

comprehended without a careful daily listening and<br />

a reaction to players’ conversations when necessary.<br />

The listening effort must become more refined to find<br />

the proper tools, the correct key words adapted to the<br />

linguistic peculiarities we face (e.g. an efficient tool in<br />

French might not sound the same way in Dutch) and<br />

needs to be wide spread (Twitter, blogs, Facebook, forums,<br />

Google+ and more…), with the knowledge of the<br />

limitation that a monitoring may never be totally complete.<br />

Once under control, Social Media can deliver<br />

formidable opportunities.<br />

15 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


<strong>LOTTERIES</strong> AND B2B<br />

AT FDJ<br />

Pascal Blyau, Director of Business Development at FDJ<br />

B2B lottery subsidiaries are doing well, as reflected<br />

in the new businesses created by Camelot and<br />

Veikkaus over the last few months. LAE in Spain<br />

and la Française des Jeux (FDJ) were pioneers in<br />

this area. Pascal Blyau, Director of Business Development<br />

at FDJ, explains the different strategies.<br />

EL: TELL US ABOUT YOUR B2B SUBSIDIARIES<br />

FDJ now has three B2B subsidiaries.<br />

LotSys provides lottery solutions and integration<br />

services, such as multimedia system solutions,<br />

external draw solutions; Internal Control System<br />

and a large retail suite (in partnership with Safran<br />

Morpho);<br />

LVS offers a sports betting solution that integrates<br />

with LotSys solutions; and LB Poker (a FDJ and<br />

Groupe Lucien Barrière joint venture) markets its<br />

casino and poker software operated by the barrierepoker.fr<br />

brand.<br />

EL: WHAT PROMPTS A LOTTERY TO DEVEL-<br />

OP B2B PRODUCTS AND ACQUIRE A COM-<br />

PANY IN THIS MARKET?<br />

Lotteries have sometimes excellent in-house technology.<br />

B2B subsidiaries market these solutions<br />

“Our 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 />

LOTTERY & TECHNOLOGY 16 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


and add new developments for their customers.<br />

This guarantees the long term competitiveness of<br />

technology & skills.<br />

At the same time, some industry solutions don’t<br />

meet the needs of lotteries. They end up being<br />

too restrictive or too complicated to upgrade.<br />

This means that B2B subsidiaries such as LotSys<br />

become innovation drivers that can translate lotteries<br />

needs into up-to-date, multi-channel, open<br />

solutions.<br />

Other factors that are driving lotteries to advance<br />

in the B2B market are the search for new sources<br />

of revenues or simply the opportunities of strategic<br />

equity investments.<br />

EL: IS THIS WHAT HAPPENED WHEN LVS<br />

WAS ACQUIRED BY LA FRANÇAISE DES<br />

JEUX IN 2010?<br />

When the Internet gambling market opened up in<br />

France, the acquisition of LVS was an opportunity<br />

for la FDJ. They had impressive software quality<br />

and expertise.<br />

Today LVS and LotSys have consolidated their lot-<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 />

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

LOTTERY & TECHNOLOGY<br />

tery and sports betting products to provide a clear<br />

and attractive lottery offering. The “key staff” is<br />

still present and works closely with Lotsys. LVS<br />

joined also the EL and WLA community as an Associate<br />

member.<br />

EL: HOW DO <strong>THE</strong>SE SUBSIDIARIES DIFFER-<br />

ENTIATE <strong>THE</strong>MSELVES IN <strong>THE</strong> MARKET?<br />

The solutions are often innovative in terms of<br />

interoperability, agility, independence, performance,<br />

security, customers’ knowledge and distribution<br />

channels control.<br />

Lottery customers opt for security. They know the<br />

quality of the solutions on offer, the solidity of the<br />

shareholder (FDJ) and the prospect of a fair and<br />

necessarily sustainable collaboration.<br />

17 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


GAMBLING TECHNOLOGIES<br />

Gambling Technology is a fundamental<br />

topic today, especially in the light of<br />

the ongoing debate in the EU. Various<br />

notifications by Member States<br />

refer to IT aspects while also the EU<br />

Commission Green Paper consultation<br />

on the sector of online gambling is<br />

paying a particular attention to it.<br />

The actual debate on gambling<br />

technologies is driven by the way<br />

technology is used in a proper regulated<br />

environment in order to avoid the abuse<br />

of the principles of the Internal Market.<br />

Technology is often used to circumvent<br />

the principles of Internal Market rules,<br />

to avoid taxation and the application of<br />

anti-money laundering rules.<br />

In this regard, Advocate General P.<br />

Mengozzi, in its Opinion in the Stoß<br />

case, has highlighted the existence<br />

of some practises which do not allow<br />

mutual trust between the EU Member<br />

States (i.e. off-shore licenses) and<br />

therefore result as a violation of Internal<br />

Market rules.<br />

P. Mengozzi clarifies that the<br />

application of the principle of mutual<br />

recognition presumes a certain balance<br />

to be found between the different<br />

conditions imposed in the Member<br />

States. Consequently, the Member<br />

State in which the service is provided<br />

cannot impose on the operator the<br />

same conditions and controls to which<br />

he was already subject in his country of<br />

origin.<br />

According to AG P. Mengozzi,<br />

extraterritorial licenses do not fulfil<br />

these conditions. Since the authorities<br />

of the country of origin do not allow the<br />

provision of gambling services within<br />

their territory, it cannot be argued that<br />

the general interest objectives pursued<br />

by another Member State are already<br />

sufficiently protected.<br />

The Court of Justice did reject in several<br />

cases the possibility in the current<br />

status of EU law the application of the<br />

mutual recognition. According to the<br />

Court “a Member State is therefore<br />

entitled to take the view that the mere<br />

fact that an operator such as Bwin<br />

lawfully offers services in that sector via<br />

the Internet in another Member State,<br />

in which it is established and where it is<br />

in principle already subject to statutory<br />

conditions and controls on the part of<br />

the competent authorities in that State,<br />

cannot be regarded as amounting to<br />

a sufficient assurance that national<br />

consumers will be protected against the<br />

risks of fraud and crime, in the light of<br />

the difficulties liable to be encountered<br />

in such a context by the authorities of<br />

the Member State of establishment in<br />

assessing the professional qualities and<br />

integrity of operators.”<br />

It is clear that this does also apply to the<br />

technology requirements which vary<br />

among the different Member States.<br />

Member States do rightly believe<br />

that, in order to be able to uphold a<br />

proportionate and consistent gambling<br />

policy technology, means used should<br />

be subject to regular inspections and<br />

controls. This requirement is also<br />

foreseen in the Third Anti-Money<br />

Laundering Directive. Various systems<br />

are currently explored from a full<br />

(operational) server approach to a<br />

frontal system or a portal under control<br />

of the regulator. All those system<br />

are complemented by ISP and other<br />

blocking mechanisms to assist with the<br />

enforcement of the licensing regime.<br />

In the Dickinger case the question of<br />

mutual recognition and the difficulties<br />

LEGAL<br />

Philippe Vlaemminck<br />

18 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

relating to controls by the country of<br />

origin were again debated.<br />

In its opinion AG Bot expressed a rather<br />

critical view towards Malta regarding<br />

the abuse of Internal Market rules.<br />

According to Bot, Member States can<br />

impose strict requirements, including<br />

having a social seat within the territory<br />

of that Member State and a server to<br />

properly track and control the online<br />

gaming operations, in order to ensure a<br />

strict and more efficient control by the<br />

government of the operator’s policy.<br />

Consumer protection emerges here<br />

as the main issue in the debate. The<br />

absence of cooperation between<br />

Member States and of certain common<br />

IT standards creates some specific risks.<br />

In practice, self exclusions systems set<br />

up by a Member State, remain without<br />

effect in other Member States.<br />

More in general, a lack of understanding<br />

about technology can be detected,<br />

including at the level of the EU<br />

Commission.


FUTURE & CHALLENGES<br />

Fromitsside,theEuropeanCommission<br />

is opposing against Member State<br />

requirement to have technology<br />

systems location (server, frontal server,<br />

portal with ISP blocking…).<br />

The Commission has however no<br />

arguments to oppose against the<br />

positionoftheMemberStates.Moreover,<br />

in the secondary legislation, as in the<br />

AML directive, onsite inspections are<br />

foreseen as necessary requirement for<br />

the prevention and enforcement of<br />

Money Laundering (even though, for<br />

now, still only applicable to the casino<br />

game sector).<br />

Therefore, there is an urgent need for a<br />

very substantial debate among different<br />

stakeholders to find out which could be<br />

a proper environment to enable proper<br />

IT standards supporting the Member<br />

States policies.<br />

The gaming industries should focus<br />

on player protection and contribution<br />

to the society and therefore can only<br />

welcome that investigation on gambling<br />

technology will take place.<br />

In fact, only the cooperation among the<br />

stakeholders could lead to the definition<br />

of effective technical requirements and<br />

solutions.<br />

The current EU Regulatory and<br />

Legislative framework, as clarified by<br />

the Court of Justice of the EU and by<br />

a number of secondary EU legislative<br />

instruments, must form the backdrop<br />

to the discussion on the design of the<br />

gambling technology.<br />

What does it mean in practice for<br />

operators and different stakeholders?<br />

There is a need to discuss on how to<br />

get control over the expanding online<br />

market by adapting to the changing<br />

environment throughout a strongly<br />

regulated controlled expansion policy,<br />

by exploring new form of games and<br />

new form of distribution tools as long as<br />

the illegal market continues to flourish.<br />

The debate on gambling technology<br />

will have mainly to focus on defending,<br />

also legally, the market by mean of<br />

enforcement through ISPs, payment<br />

blocking, geo-location technology;<br />

researching & comparing what other<br />

industries set up (i.e. the music industry<br />

against illegal downloading) or the<br />

social media which have succeeded<br />

in offering and disseminating<br />

(notwithstanding the serious privacy<br />

implications) the use of Geolocation as<br />

commercial tool.<br />

A first step could be the exchange<br />

of views and information among<br />

stakeholders from the different<br />

Member States on the different IT tools,<br />

especially on key issues such as: server<br />

and cloud based technology, liquidity<br />

& open end white labels, consumer<br />

E-identification(government practices),<br />

consumer behavior tracking, controls<br />

and responsible gaming, online<br />

payment services, Money Laundering<br />

and “know your customer” tools,<br />

Mobile phones technology, ….<br />

Still many questions remain open as we<br />

move forward:<br />

How to define the standards for<br />

transnational (or if necessary also<br />

international) issues? How can the<br />

technical knowledge and expertise<br />

easily be acquired? How practical and<br />

effective are IP and Payment blocking<br />

systems? What data protection features<br />

to be put in place? How should facilities<br />

such as random number generator<br />

and other “gaming machine” features<br />

LEGAL<br />

19 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong><br />

be best regulated? Where do servers<br />

or other IT hardware be located to<br />

guarantee the regulatory control? What<br />

e-ID systems can be promoted?<br />

The list is long and will require different<br />

experts to talk to each other. The EU<br />

Commission does not know the answer,<br />

but is certainly willing to learn from<br />

the sector what tools are available and<br />

can help to find answers to get control<br />

over the online market. By organizing<br />

an innovation meeting involving legal,<br />

IT, security and marketing experts and<br />

suppliers, EL has taken the first step in<br />

this direction.<br />

Philippe Vlaemminck<br />

EL Legal Adviser


RESPONSIBLE GAMING CERTIFICATION<br />

Since joining Camelot in April, I have witnessed something<br />

that I believe to be unique to the lottery<br />

world and a really positive force for change. I have<br />

been welcomed into the lottery community and<br />

have seen how open collaboration can drive best<br />

practices and a continual evolution of our industry.<br />

Input from every EL Member really does make the<br />

whole stronger. Testament to this approach is how<br />

the European Responsible Gaming Standards were<br />

conceived, developed and adopted to protect the interests<br />

of players and vulnerable groups.<br />

The European Responsible Gaming Standards are a<br />

set of standards which provide a common framework<br />

by which Lotteries can make responsible gaming an<br />

integral part of their daily operations. The standards<br />

cover requirements in ten key subject areas that<br />

make up a responsible gaming programme spanning<br />

research and game design to treatment referral and<br />

player education. These standards were adopted by<br />

all EL Members in 2007, and in 2008 a framework to<br />

enable Members to become certified was developed.<br />

SEE INNOVATION IN<br />

A DIFFERENT LIGHT.<br />

TOGE<strong>THE</strong>R.<br />

JOIN TODAY.<br />

WWW.LOTTERYINNOVATION.NET<br />

RESPONSIBLE GAMING<br />

The Lotteries that have become certified have really<br />

seen clear business benefits of undertaking the assessment.<br />

Although responsible gaming has always<br />

been something that Camelot has put right at the<br />

heart of its business, the assessment process meant<br />

that we carried out a root and branch examination<br />

of working practice in all areas of our responsible<br />

gaming programme – this enabled us to identify<br />

any gaps that needed addressing and to provide an<br />

incentive for the rest of the business to drive continuous<br />

improvement across the company. Having a<br />

‘gold standard’ in responsible business practice has<br />

also helped to boost our reputation further amongst<br />

our many stakeholders, which we believe makes us a<br />

more effective operator who is trusted to deliver on<br />

its commercial targets, while keeping players’ wellbeing<br />

at the forefront of everything we do. Achieving<br />

certification also means Members gain Level 4 accreditation<br />

– the highest level in the World Lottery Association<br />

Responsible Gaming Framework.<br />

Lottery Innovation Network<br />

info@lotteryinnovation.net<br />

www.lotteryinnovation.net<br />

20 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


In these economically tough times our players’ wellbeing<br />

approach has born unexpected fruit. Our excessive<br />

play policy, that drives us to have millions of people<br />

spending small amounts, has meant that we have seen<br />

less impact on our overall business. It may have been a<br />

different story if we had relied on big spenders curtailing<br />

that large spend when times were tough.<br />

The collaboration that created the standard lives on<br />

2010<br />

Camelot UK Lotteries Ltd., United Kingdom<br />

Westdeutsche Lotterie GmbH & Co. OHG, Germany<br />

AB Svenska Spel, Sweden<br />

Austrian Lotteries, Austria<br />

Société de la Loterie de la Suisse Romande, Switzerland<br />

Loteria de Catalunya, Spain<br />

Lottomatica SpA, Italy<br />

Veikkaus Oy, Finland<br />

La Française des Jeux, France<br />

Mifal Hapais, Israel<br />

TOTO (The Israel Sports Betting Board), Israel<br />

Toto-Lotto Niedersachsen GmbH, Germany<br />

Szerencsejáték Zrt., Hungary<br />

Loterie Nationale, Luxemburg<br />

The 27 certified<br />

<strong>2011</strong><br />

Nederlandse Staatsloterij, The Netherlands<br />

AS Eesti Loto, Estonia<br />

Lotto Hamburg GmbH, Germany<br />

Lotto-Toto GmbH Sachsen-Anhalt, Germany<br />

Loterie Nationale, Belgium<br />

NKL Nordwestdeutsche Klassenlotterie, Germany<br />

RAY Raha-automaattiyhdistys, Finland<br />

Sisal SpA, Italy<br />

Norsk Tipping AS, Norway<br />

Deutsche Klassenlotterie Berlin, Germany<br />

ONCE, Spain<br />

National Lottery Ireland, Ireland<br />

Íslensk Getspá, Iceland<br />

In addition, the Working Group runs a corporate responsibility seminar each year<br />

and is open to all Members. To see this collaboration in action join us at ‘Responsible<br />

Gaming = Responsible Growth’ <strong>2011</strong>’s seminar in Hamburg on the 26 – 28th September.<br />

I hope to see you there.<br />

EL ACTIVITIES<br />

as the members of the Responsible Gaming Working<br />

Group who worked together to develop the standard,<br />

are on standby to provide support and guidance for<br />

Lotteries thinking about, or currently undertaking,<br />

the certification process.<br />

Julian Price<br />

Group Head of Corporate Responsibility<br />

Camelot Group<br />

21 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


PLAYER CONFIDENCE AND TRUST –<br />

ARE WE FIT FOR PURPOSE?<br />

In every business the confidence and trust of its<br />

stakeholders are absolute vital ingredients for success<br />

and nowhere is this more true than in the lottery<br />

world.<br />

If a lottery player ever knew or even suspected that<br />

a lottery operation was corrupt or dishonest their<br />

confidence and trust would undoubtedly be dented<br />

and it is extremely unlikely that they would be willing<br />

to purchase any tickets.<br />

Over the years tremendous efforts have been made<br />

by Lotteries in many operational areas to ensure that<br />

they are safe, sound and secure. For example, staff<br />

in key positions are comprehensively vetted, Gaming<br />

network systems and software are vigorously tested,<br />

the draw process including the equipment is subject<br />

to external audit and the utmost scrutiny, lottery<br />

buildings are physically secure with the latest protective<br />

technology and many other security initiatives<br />

have been implemented.<br />

Yet, despite all of the excellent work and commitment,<br />

three to four years ago, the lottery worlds’ integrity<br />

was badly shaken by disturbing events in Canada<br />

and in Europe.<br />

It was discovered that some lottery retailers, the public<br />

profile and “interactive” face of a Lottery, had<br />

been systematically defrauding players over a long<br />

period of time with the behaviour seemingly endemic.<br />

With the obvious large scale media interest and calls<br />

for investigations and public enquiries the reputation<br />

and integrity of those lottery operators involved<br />

was severely questioned. As a result there were high<br />

profile casualties at a senior executive level and Lotteries<br />

and regulators were very quickly obliged to<br />

review their role, responsibilities and processes to<br />

EL ACTIVITIES<br />

reassure players and attempt to limit the damage of<br />

the revelations.<br />

It was also apparent that many Lotteries around the<br />

world took the opportunity of the “wakeup call” to<br />

review their own retailer processes and procedures<br />

thanking their lucky stars that they were not the organisations<br />

in the “spot light”.<br />

With the passage of time it may be thought that the<br />

events described are now history but at two recent<br />

security seminars it is clear, and rightly so, that retailer<br />

security and the protection of players is still a<br />

very hot topic.<br />

It is fully acknowledged that generally retailers are<br />

very honest and have the best interests and the integrity<br />

of the Lottery at heart. But as in most cash enterprises,<br />

there is always a potential and opportunity for<br />

things to go wrong - despite all the checks, balances<br />

and controls that may be in place a retailer or more<br />

likely a member of their staff can act dishonestly.<br />

A lottery retailer can be dishonest in many ways and<br />

the following are a few examples:<br />

• Checking a winning ticket but declaring to the<br />

player that it is a non winner and later attempting<br />

to claim the prize.<br />

• Deliberately under paying a prize amount and later<br />

attempting to claim the correct prize.<br />

• Selling a ticket to a player and immediately carrying<br />

out a void process (cancellation) and retaining the<br />

payment for the ticket.<br />

• Pre scratching an Instant/ scratch card ticket to<br />

identify winners claiming the prize and selling the<br />

known losing tickets to unsuspecting players.<br />

Following the reported incidents lottery operators<br />

were quick to implement a number of actions designed<br />

to prevent or deter any fraudulent activity.<br />

The following are typical examples of actions taken:<br />

• A statement of commitment signed by the Lottery<br />

CEO is published in the press and on the Lottery<br />

website indicating that security and integrity are<br />

at the forefront and are paramount to the lottery<br />

operation.<br />

• A ‘Zero’ tolerance to retailer / staff dishonesty<br />

which is endorsed and emphasised to all members<br />

of lottery staff at all levels within the organisation.<br />

• For the player, clear user friendly advice on how to<br />

make a complaint if they perceive that they have<br />

been the victim of fraud.<br />

• A recording and monitoring of complaints of under<br />

payment of prizes and general suspicions of<br />

retailer fraudulent activity.<br />

• A comprehensive independent investigation into<br />

complaints of dishonesty or malpractice. An investigation<br />

team separate from all other departments<br />

to ensure there is complete segregation of duties<br />

and transparency. Feedback on investigations given<br />

directly to the complainant and the regulator.<br />

• An awareness programme highlighting the various<br />

22 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


ways of checking whether or not a ticket is a winner,<br />

which may include details at the Lottery website,<br />

Lottery hotline centre, newspapers published<br />

results, win checkers in agents/retailers.<br />

• Clear advice for players on personalising the ticket<br />

by writing or signing their names on the ticket at<br />

time of purchase not just when it is believed to be a<br />

winner.<br />

• A clear set of guidelines and guidance for retailers/<br />

agents when checking a ticket, paying out a winner<br />

etc.<br />

• A comprehensive training programme for retailers<br />

and staff that includes the payment of prizes and<br />

the checking of tickets.<br />

• A robust sanction process in place for agents who<br />

do not comply with guidance and formal retailer<br />

agreement.<br />

• A system for when a winning ticket is scanned on<br />

a Lottery terminal - an audible fanfare and flashing<br />

light indicating the status of the ticket.<br />

(System cannot be interfered with e.g. turned down<br />

or off etc)<br />

• A customer facing screen that informs players in<br />

real time whether or not the ticket being scanned<br />

is a winner (Must not be able to be disabled by the<br />

retailer).<br />

• At retailers / agents ‘win checkers” machines installed<br />

that enable a player privately to self check a<br />

ticket.<br />

• As part of the retailer agreement an obligation to<br />

give a written record / receipt showing the status of<br />

a ticket when it has been scanned.<br />

• Vigorous and comprehensive vetting of all retailers<br />

and potential retailers to ensure they are suitable<br />

to be operating the Lottery.<br />

• A ‘free’ hot line for ticket checking and the registering<br />

of complaints, advice etc.<br />

• A system / process for monitoring of unusual retailer<br />

activity including excessive cancellations of<br />

tickets, excessive attempts at validations of non<br />

winning tickets and player complaints regarding<br />

allegations of under payment or non payment of<br />

prizes.<br />

• A system to track all prizes over a set reasonable<br />

limit (dependant on local circumstances) to ascertain<br />

whether the claimant is a retailer, a member of<br />

the retailer staff or in any other way involved with<br />

the lottery.<br />

• A system for a terminal to be frozen when a high<br />

tier winning ticket is scanned (Local circumstances<br />

dictate level).<br />

• High tier winners paid out at nominated Lottery<br />

premises and subjected to rigorous checks to ensure<br />

integrity without compromising the winning<br />

experience.<br />

It is not proposed for one moment that any Lottery<br />

would implement all of the above and it is suggested<br />

that a suitable strategy should be a layered (onion<br />

skin) approach. If one preventative measure is compromised<br />

there is another back up action from a different<br />

perspective.<br />

With the above in place a Lottery and regulator needs<br />

EL ACTIVITIES<br />

to be satisfied and sure that the measures in place are<br />

working. How can this be carried out?<br />

Some Lotteries have implemented a ‘mystery shopper’<br />

programme for reviewing procedures at agents/<br />

retailers with strong sanctions in place if it is discovered<br />

that a retailer or member of staff is not complying<br />

with the retailer agreement or operator directives.<br />

The schemes seem to work best when the process is<br />

heavily publicised and the retailer is aware that they<br />

are likely to be visited. They, of course, have no idea<br />

of the exact date and time of any visits.<br />

A number of Lotteries in North America and one in<br />

Europe have taken the mystery shopper concept one<br />

stage further and visit retailers with winning tickets<br />

which the retailer is requested to check. They have<br />

no idea that the request is made by a Lottery employee<br />

and it is very apparent whether or not they<br />

are complying with the agreed process and paying<br />

the correct prize.<br />

Again advanced generic publicity of the scheme is an<br />

important deterrent factor with dishonest retailers<br />

possibly liable to criminal prosecution. For higher<br />

tier winners the cooperation and involvement of<br />

ticket manufactures to work in partnership with the<br />

operator has been a fundamental key to the overall<br />

success of the operation.<br />

A mystery shopper project can be targeted on “suspected”<br />

retailers or, as in Europe cover the whole<br />

retailer estate with over 20,000 visits per year. A massive<br />

undertaking but considered cost effective for the<br />

reassurance, public trust and confidence it gives.<br />

The Lotteries involved can never be accused of ignoring<br />

the possibility of retailer fraud or of not taking<br />

the issue seriously.<br />

Another alternative solution is by a European Lottery<br />

which has a well developed and refined player<br />

registration programme. In this jurisdiction you are<br />

not able to play the lottery unless registered to do so.<br />

This ensures that prizes are paid automatically with<br />

no possibility of retailer fraud and no unclaimed<br />

prizes. However the registration card programme<br />

may not be suitable for every operator.<br />

As far as integrity and security are concerned tremendous<br />

progress has been made over the last few<br />

years, but with the real possibility of a breakdown of<br />

player trust and confidence it is felt that the payment<br />

of prizes and retailer fraud will continue to be a major<br />

concern for Lottery operators. Undoubtedly future<br />

lottery security seminars will have this as a main<br />

presentation session and discussion.<br />

John Branscombe<br />

J2B Security Ltd.<br />

23 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


SECURITY<br />

RISK MANAGEMENT<br />

A VERY HOT TOPIC FOR <strong>THE</strong> EL SECURITY AND<br />

RISK MANAGEMENT WORKING GROUP<br />

The EL Security and Risk Management Working<br />

Group is the most recent working group of the European<br />

Lotteries. Created in November 2010 in Vienna,<br />

it is composed of 14 experts in security and risk management<br />

working in 13 European Lotteries:<br />

• Thierry Pujol, Director of Security and Risk Management,<br />

FDJ (France)<br />

• Carlos Bachmaier, Corporate Risk Manager, Loterías<br />

y Apuestas del Estado (Spain)<br />

• Johannes Puchinger, Head of Department Information<br />

Security, Österreichische Lotterien (Austria)<br />

• Martin Sutton, Head of Propriety, Camelot UK Lotteries<br />

Ltd. (United Kingdom)<br />

• Gunnar Ewald, Head of Internal Audit, Lotto Hamburg<br />

GmbH (Germany)<br />

• Antonio Gorrasi, IT Security Manager, Lottomatica<br />

SpA (Italy)<br />

• Claude Mathieu, Head of Internal Audit, Loterie<br />

Nationale (Belgium)<br />

• Magna Monte, Security and Quality Director, Santa<br />

Casa da Misericórdia de Lisboa (Portugal)<br />

• Heini Roosimägi, Security and Quality Manager, AS<br />

Eesti Loto (Estonia)<br />

• Matilda Bjerndell, Risk & Business Continuity Manager,<br />

AB Svenska Spel (Sweden)<br />

• Jaroslav Endrych, Security Manager, Sazka a.s.<br />

(Czech Republic)<br />

• Zvi Amitai, Vice President CIO, Mifal Hapais Israel<br />

National Lottery (Israel)<br />

• Konrad Supper, Senior Vice President, Head of Internal<br />

Audit and Responsible Gaming, Westdeutsche<br />

Lotterie GmbH & Co. OHG, (Germany)<br />

• Jean-Jacques Riera, Head of Department Information<br />

Security, FDJ (France).<br />

One of the responsibilities of the Security and Risk<br />

Management Working Group is to advise the Executive<br />

Committee of the European Lotteries and its<br />

members on security and risk management issues.<br />

In the interests of efficiency and to avoid duplica-<br />

EL ACTIVITIES<br />

tion this working group works closely with the WLA<br />

Security and Risk Management Committee, particularly<br />

in relation to the WLA Security Control Standard<br />

(WLA SCS 2006 based on ISO 27001) and the WLA<br />

certification process.<br />

Every Lottery organisation, in order to succeed in<br />

their business operational activities, has to ensure<br />

stakeholders, and in particular players of their games<br />

have the utmost confidence and trust in their operational<br />

activities. The integrity of all games in an offered<br />

portfolio, including conforming to the local legal<br />

requirements and regulations, (e.g. on responsible<br />

gaming and ethics) must be guaranteed.<br />

Lottery organisations face many types of risks. The<br />

following is not a definitive list of the “security and<br />

integrity” risks that could be encountered but illustrates<br />

the variety and complexity of those commonly<br />

experienced.<br />

• Fraud (e.g. a retailer deliberately underpaying a<br />

prize on a winning ticket to a player or stealing<br />

a winning ticket from a player by deception to<br />

conspire and collude with a Lottery employee to<br />

defraud the Lottery).<br />

• Money laundering (e.g. A criminal or terrorist organisation<br />

may attempt to manipulate the monetary<br />

system of a Lottery organisation in order to<br />

disguise the proceeds of its illegal activities).<br />

• Responsible gaming (e.g. A players’ compulsive<br />

addiction to lottery games causes reputational<br />

damage to the Lottery and prompts intrusive and<br />

potentially punitive action by regulators or other<br />

stakeholders).<br />

• Operational risks related to business processes<br />

(e.g. Conducting lottery “draws” with security and<br />

integrity, maintaining very high availability of all<br />

channels both traditional and “online” to enable<br />

the purchase of tickets).<br />

• Prize payment (e.g. assuring prize claimants are<br />

genuine winners within the rules of the game).<br />

During its two years of existence, the Working Group<br />

24 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


has developed a comprehensive guideline on Risk<br />

Management for the Lottery sector in Europe.<br />

The purpose of this document is to assist risk managers<br />

and/or operation managers of Lottery organisations<br />

to be proactive and identify risks before they<br />

occur. Guidance is given on how to avoid or limit the<br />

impact of a risk occurring and its effect on the business<br />

activities.<br />

The content of the document reflects current European<br />

trends in risk management and helps to ensure<br />

that Lottery organisations take appropriate steps<br />

to inform and protect themselves against risks that<br />

might affect their operation. It also helps in enabling<br />

the organisation to limit the frequency and impact<br />

of such risks. Much of the information contained in<br />

the document is the “pooled” experience of EL Mem-<br />

AURELIO MARTÍNEZ ESTÉVEZ<br />

PRESIDENT <strong>OF</strong> “SOCIEDAD ESTATAL LOTERÍAS<br />

Y APUESTAS DEL ESTADO, S.A.”<br />

On March 11, <strong>2011</strong>, the Council of Ministers appointed<br />

Aurelio Martínez Estévez as President of<br />

the “Sociedad Estatal Loterías y Apuestas del Estado<br />

(SELAE)”, the company assuming the assets and the<br />

duties carried out until today by the state gaming<br />

operator, the public undertaking “Loterías y Apuestas<br />

del Estado”. Already in February, Mr. Martínez<br />

had been appointed as President - Managing Director<br />

of “Sistemas Técnicos de Loterías (STL)”, the preliminary<br />

stage to his nomination to the Presidency<br />

of SELAE.<br />

EL ACTIVITIES<br />

bers, and specifically addresses the types of games<br />

common to European Lottery organisations: e.g.<br />

• Internet gaming: games results are instantaneous;<br />

• Sports betting: prizes are won according to the result<br />

of sport, live betting, etc…;<br />

• Poker: online poker games;<br />

• Draw-based games;<br />

• Scratch cards.<br />

It is anticipated that the guideline will be completed<br />

and published towards the end of <strong>2011</strong> and will be<br />

available for Lottery Members to use to the benefit<br />

of their business.<br />

Thierry PUJOL<br />

Director of Security and Risk Management, La Française<br />

des Jeux<br />

& Chair of the EL Security and Risk Management Working<br />

Group<br />

Born in Zaragoza on April 7, 1947, Aurelio Martínez<br />

is Professor of Applied Economics and Doctor of<br />

Economic and Social Sciences at the University of<br />

Valencia.<br />

He was President of the Institute of Official Credit<br />

(ICO) until July 2009 and of the public institution Navantia<br />

(leader in the shipbuilding industry in Spain)<br />

before joining STL. Prior to ICO, he was Director at<br />

the International Economic Conditions Observatory<br />

(OCEI), Director of the Economic Structure Department<br />

of the University of Valencia and Director General<br />

for Economics and Financial Policy of the Generalitat<br />

Valenciana.<br />

He also held a number of positions within both the<br />

state and autonomous administration. In 1991, he<br />

was appointed Director of the Economics Department<br />

of the Office of the Presidency of the Government.<br />

He held this position until 1993 when he took<br />

up his new duties within the Department of Economics<br />

and Finance of the Generalitat Valenciana.<br />

He was also President of the Finance Institute of Valencia.<br />

He previously held several different positions<br />

in the banking sector, in particular those of Vice-President<br />

of the “Caixa d’Estalvis Provincial” of Valencia<br />

and Secretary General of the Valencian Federation of<br />

Savings Banks.<br />

Aurelio Martínez published and co-wrote thirty publications<br />

and over fifty articles about economic and<br />

financial issues, including:<br />

“Reflexiones en torno a la crisis económica de los años<br />

70”; “Dinámica exportadora del País Valenciano”;<br />

“Estructura industrial y generación de empleo en la<br />

economía murciana”; “Coyuntura y crisis económica:<br />

apuntes para su interpretación” and “Economía internacional.<br />

Diez años de crisis”.<br />

25 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


EL LEGAL WORKSHOP IN KIEV<br />

A STEP INTO<br />

EASTERN EUROPE<br />

BY DELIA ORABONA, EL LEGAL ADVISER<br />

Nobody knows where the borders of Europe end. It is<br />

becoming more and more important for the European<br />

Lotteries to maintain and to expand its activity in the<br />

already enlarged and future enlarging Europe, in order<br />

to explore new countries´ lottery models and to help<br />

the Eastern countries in developing their gambling<br />

activity, by promoting the development and effective<br />

communication between members.<br />

The LegalWorkshop held last April 28 in Kiev (Ukraine),<br />

organised by the European Lotteries and hosted by the<br />

Ukrainian Lottery, MSL, was a great opportunity and a<br />

forum mostly for the Eastern countries which were actively<br />

participating with different presentations on the<br />

various Lottery´s models.<br />

Different countries took part in the workshop: Azerbaijan,<br />

Belarus, Estonia, Kazakhstan, Moldova, Russia,<br />

Serbia and Ukraine.<br />

The workshop was introduced by Mr. George Lozhenko,<br />

President of MSL, and by Mr. Yuriy Poluneyev, from<br />

the Ukrainian Parliament. Mr. TjeerdVeenstra, as Chair<br />

of the Legal, Statutes & Members Committee and of the<br />

Regulatory Working Group, gave a presentation on the<br />

activities of the Association.<br />

The presentations of Mr. Philippe Vlaemminck and Ms<br />

Delia Orabona, both Legal Advisors of the European Lotteries,<br />

provided more in-depth information on legal topics.<br />

Mr. Vlaemminck gave a comprehensive picture of the<br />

impact of EU law on non-EU countries by presenting<br />

on the organisation of Lotteries according to EU law<br />

and the current legal framework on gambling, the EU<br />

gambling market, the role of Lotteries in the EU, the<br />

case law and pending cases before the Court of Justice<br />

of the EU and on the political situation in the EU.<br />

WORKSHOPS<br />

Ms Delia Orabona gave an overview of the economic<br />

partnership and cooperation agreements of the EU with<br />

the Eastern countries. The discussion which followed<br />

was enriched by the intervention of the former Ukrainian<br />

Ambassador to the EU, M. Roman Shpek, who noted that<br />

the list of potential EU countries may increase and that<br />

more opportunities for dialogue and confrontation with<br />

the EU should be opened to Eastern countries.<br />

The debate showed that Eastern countries have a big<br />

potential and the opportunity to join or to renew their<br />

membership with EL would be a great step towards<br />

their success in their home country. Moreover, the<br />

whole network would benefit from their experience<br />

and from the different approaches to the constantly<br />

changing lottery´s environment.<br />

The second panel of the workshop focused on the different<br />

ways of development of gambling legislation in the<br />

countries of the former Soviet Union, on the example of<br />

Ukraine, whereby Mr. Danylo Getmantsev, Legal Adviser<br />

of MSL, gave a presentation.<br />

Further Mr. Friedrich Stickler, President of EL, and Mr.<br />

Martin Jekl, Managing Director of Win2Day (Austrian<br />

Lotteries), provided an insight into how to regulate Internet<br />

and on best practices for Lotteries. In particular,<br />

Mr. Jekl focused his presentation on the online gaming<br />

services.<br />

All this has been supported by an excellent organization<br />

from MSL in the persons of Ms Svetlana Yevdokimova<br />

and Ms Natalie Kilmenko, and by the warm hospitality<br />

of Mr. Lozhenko, Mr. Vlasenko and Mr. Getmantsev.<br />

EL is looking forward to future occasions for meetings<br />

and exchanges within Eastern European countries.<br />

26 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


TRADITION MEETS FASHION<br />

A JOINT EL/WLA<br />

SPORTS BETTING SEMINAR<br />

HOSTED BY SISAL SPA, MILAN, ITALY<br />

A two-day business program, which featured a blend<br />

of external keynote speakers and sports betting experts<br />

from the lottery industry, was at the heart of this year’s<br />

joint EL/WLA sports betting seminar. The seminar began<br />

with a splendid opening dinner that was co-hosted<br />

by Sisal and Lottomatica, and as tradition requires, the<br />

social events for this seminar were closely tied to sports<br />

and betting.<br />

The delegates enjoyed the opportunity of watching<br />

both semi-finals of the UEFA Champions League on<br />

the big screen. The match between Manchester United<br />

and Schalke 04 was viewed at “SisalWinCity”, one of Sisal’s<br />

excellent sports betting and entertainment centers<br />

in downtown Milan, and the participants were given<br />

the opportunity to place bets. As sports betting is the<br />

daily business of most of the delegates, many had the<br />

foresight to predict Manchester United as the winner,<br />

with some even predicting the final score of 4 – 1 at 85<br />

to 1 odds.<br />

Sisal Director, Mr. Giovanni Maggi, welcomed an audience<br />

of more than 110 delegates from 28 different<br />

nations. He emphasized the importance of sports,<br />

in particular the importance of football in Italy. Mr.<br />

WORKSHOPS<br />

Maggi was followed by Milan’s Counsellor of Sports<br />

and Leisure, Ms. Cristina Stancari. She expressed her<br />

delight at Milan being chosen as the venue for this<br />

event, which linked sports with fun and entertainment.<br />

She also emphasized how sports demonstrate<br />

values of solidarity, fairness and tolerance, particularly<br />

to the younger generations.<br />

After thanking Sisal for their gracious hosting of this<br />

event, WLA President and EL Sports Chairman Mr.<br />

Risto Nieminen proclaimed that one should certainly<br />

come to Italy for tradition.<br />

He went on to say that by coming to Milan one could<br />

learn about both fashion and the history of the UEFA<br />

Champions League, with reference to the absence of<br />

Inter-Milano, last year’s Champions League winner,<br />

at this year’s finals. Mr. Gianni Merlo, President of the<br />

International Sports Journalists Association, came<br />

next presenting his views on how to maintain the integrity<br />

of sports. According to Mr. Merlo, it is necessary<br />

to raise the knowledge level of all stakeholders<br />

on corruption in sports and match-fixing. If they fail<br />

to do so, the values instilled in sports – fairness, solidarity,<br />

and tolerance – will be undermined.<br />

SPORTS BETTING MARKETS<br />

Dr. Luca Turchi, Head of Sports Betting and Horse<br />

Racing at the Italian state gaming regulator AAMS,<br />

outlined the Italian gaming market, which is valued<br />

today at more than u 60B annually. AAMS and the gaming<br />

laws of Italy serve to create transparency, monitor<br />

the gaming market, and protect players, especially<br />

those players that are potentially vulnerable to<br />

gaming-related problems. Dr. Turchi illustrated how<br />

taxes generated from gaming revenues have dropped<br />

from 15% down to 4% since 2004.<br />

In Italy, sports betting is equated with betting on<br />

football. Around 92% of the more than u 4B in gross<br />

gaming revenue wagered annually is placed on football.<br />

A mere 8% is wagered on other sports as part of<br />

the 59,000 allowed betting objects. Being quite popular,<br />

live betting accounts for 20% of the Italian market.<br />

As outlined in a panel discussion with members<br />

of La Française des Jeux, Lottomatica, Svenska Spel,<br />

27 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


TRADITION MEETS FASHION<br />

A JOINT EL/WLA<br />

SPORTS BETTING SEMINAR<br />

HOSTED BY SISAL SPA, MILAN, ITALY<br />

and the Hong Kong Jockey Club, live betting continues<br />

to grow and is seen as an essential part of the<br />

sports betting product package.<br />

Live betting, in contrast to pre-match betting, generates<br />

a low profit margin and comes with higher<br />

risks, but it has a high entertainment value. Crossselling<br />

between live betting and pre-match betting is<br />

good, especially where live betting is offered together<br />

with live video streaming of a sporting event.<br />

MONEY AND FOOTBALL<br />

Mr. William Gaillard, Senior Adviser to UEFA President<br />

Michel Platini, gave an insightful and captivating<br />

presentation on monetary developments<br />

in European football. Compared to the situation in<br />

the USA, where paying athletes a salary has a long<br />

history, Europeans struggled with the idea that one<br />

could earn money by kicking a ball. As late as the early<br />

1990’s, athletes’ salaries remained rather low with<br />

most of the clubs gaining their income solely from<br />

ticket sales. With the advent of television rights the<br />

situation changed dramatically. In 1992/93 the Pan-<br />

WORKSHOPS<br />

European television rights for the UEFA Champions<br />

League generated some u 64M, with sponsorships adding<br />

another u 12M. Today, the same television rights<br />

are valued at u 906M with sponsorships yielding an<br />

additional u 257M. The source of this income has also<br />

changed since the early 1990’s. Whereas before, the<br />

money came exclusively from selling television advertisements,<br />

today more than 50% of the income is<br />

derived from pay TV.<br />

In some leagues, like the UK Premier League, athletes’<br />

salaries have also changed dramatically. Here,<br />

the average annual salary for a professional football<br />

player went from £75,000 in 1997 to £1.1M in 2009.<br />

This has caused a significant rise in costs for many<br />

leagues, a rise that has rivaled their increased income.<br />

Despite UEFA’s horizontal solidarity principles,<br />

where leagues Europe-wide pay into the same pot,<br />

and vertical solidarity principles, where payments<br />

occur from the top national leagues on down, many<br />

of the smaller European leagues are strapped by fi-<br />

28 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


nancial imbalances. Taking individual measures to<br />

prevent financial chaos in the clubs will be high on<br />

UEFA’s agenda in the years to come. This shows how<br />

serious the relationship between football and money<br />

has become.<br />

INTEGRITY AND SPORTS<br />

In recent months a series of sporting events embroiled<br />

in match-fixing and corruption scandals made<br />

international headlines. Football has been the sport<br />

most affected but it is by no means the only one. Cricket,<br />

snooker, and even sumo wrestling have received<br />

media exposure for corruption scandals according to<br />

Mr. Thierry Pujol, Security and Risk Management Director<br />

at la Française des Jeux, and Chairman of the<br />

WLA Security and Risk Management Committee.<br />

Mr. Philippe Lemaire, also of La Française des Jeux,<br />

said that sporting events have progressively become<br />

a vehicle for money laundering. He explained the<br />

stages of the money laundering – placement, layering<br />

and integration – and how this system covertly<br />

works to perpetuate crime and corruption.<br />

Concluding the theme of integrity and security, WLA<br />

President, Risto Nieminen, emphasized that the role<br />

that our Lotteries play in raising awareness of the<br />

dangers of corruption and match-fixing is of greater<br />

relevance than it has ever been. The European Lotteries<br />

Monitoring System, actively built and financed<br />

by 19 Lotteries across Europe, is one method of rai-<br />

WORKSHOPS<br />

sing such awareness. Working to make this system<br />

a truly global effort covering all Lotteries offering<br />

sports wagering will be a priority for the coming year.<br />

As always, the EL Sports Working Group has put significant<br />

time, effort and devotion into the business<br />

program. The EL and the WLA thank them for their<br />

hard work and dedication. We would also like to<br />

express our thanks once again to Sisal for their generous<br />

hosting and gracious hospitality.<br />

Jean Jørgensen,<br />

WLA Executive Director and Moderator<br />

29 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


EL LEGAL AFFAIRS SEMINAR<br />

A YEARLY EVENT TO REFRESH YOUR<br />

KNOWLEDGE AND MEET YOUR<br />

COLLEAGUES FROM ALL OVER EUROPE<br />

BUDAPEST / HUNGARY<br />

Last May 26/27, the EL Legal Affairs Seminar was held<br />

in Budapest.<br />

The seminar focused on key legal topics which are currently<br />

under legislative or consultative review from the<br />

EU institutions and in particular under consultation of<br />

the Green Paper on online gambling.<br />

Different presentations were delivered by<br />

Vlaemminck&Partners, in the persons of Philippe<br />

Vlaemminck and Delia Orabona; whereby they gave<br />

an overview of the EL Submission to the Green Paper<br />

consultation, of white labels; together with Claudia Ricchetti,<br />

Legal and European Regulatory Affairs Director<br />

from Lottomatica Group (Italy), of the unfair commercial<br />

practices directive and of the notification directive.<br />

The seminar focused mainly on the Green Paper<br />

consultation and on key legal topics related to the<br />

consultation; with a deeper insight on the engagement<br />

of the European Lotteries in the submission of an ove-<br />

WORKSHOPS<br />

rall representative, up-to-date, of all EL Members, reply<br />

to the European Commission. The presentation<br />

showed the internal organisation of ELWorking Groups<br />

(the Green Paper Coordination WG, the Responsible<br />

GamingWG, etc.) in contributing to the reply.<br />

This proves that EL is supported by a strong network of<br />

experts who are taking this very historical momentum<br />

to exploit the opportunity to give a clear signal to Europe<br />

of their stands.<br />

Other important topics were delivered by representatives<br />

of some Lotteries such as Paulo Calado, Lawyer<br />

from SCML – Santa Casa da Misericórdia de Lisboa<br />

(Portugal), who presented on the CJEU jurisprudence<br />

on responsible gambling (which has shown the need of<br />

a general political response to gambling related issues);<br />

Dirk Messens, Legal Domain Manager from Loterie Nationale<br />

(Belgium), who gave an insight on the Council<br />

Working Group; Patrick Raude, European Affairs Director<br />

at La Française des Jeux (France), who presented<br />

on taxation and the possible way to reduce gambling<br />

addiction.<br />

30 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


Other lawyers presented on national cases: Hubert<br />

Sicking, Legal Adviser from the Westdeutsche Lotterie<br />

GmbH & Co. OHG (Germany), presented on the German<br />

Draft Law, which is currently under examination<br />

by the European Commission, and Ángel Montero<br />

López, Legal Consultant from ONCE (Spain), on the<br />

new Spanish law. Finally, a presentation on anti-money<br />

laundering rules implemented in the Italian jurisdiction,<br />

such as client identification and verification,<br />

reinforced obligations for adequate player control, was<br />

given by Claudia Ricchetti.<br />

The overview of the jurisprudence on responsible gaming,<br />

the presentation on white labels, and on unfair<br />

commercial practices directive, the one on the work at<br />

the CouncilWorking Group level have all contributed to<br />

discuss on the need of defining a minimum framework<br />

for the European Lotteries to be calibrated into the submission<br />

to the Green Paper consultation.<br />

The issues which are currently at stake involve all the<br />

national Lotteries in an effort to respond to common<br />

goals and needs of regulation especially in terms of integrity<br />

and traceability of the game, advertising, sponsoring<br />

and licensing.<br />

In particular, on the white label model, Claudia Ricchetti<br />

and Philippe Vlaemminck highlighted the need<br />

to identify the new threats which may occur from this<br />

new model of gambling and the need of a clear definition<br />

of it.<br />

The importance of such a debate, in this very particular<br />

moment, is crucial. EL is looking forward to further occasions<br />

for legal briefings in order to offer to its Mem-<br />

WORKSHOPS<br />

bers the opportunity to share views on how to shape<br />

the gambling sector in Europe.<br />

The Chairman of the Legal, Statutes and Members<br />

Committee, Tjeerd Veenstra, then closed the seminar<br />

by saying thanks to all participants and to our host,<br />

Szerencsejáték Zrt., for their nice welcome.<br />

Delia Orabona<br />

EL Legal Advisor<br />

NEXT SEMINAR<br />

Law Enforcement Meeting (October 13 afternoon) &<br />

European Legal Affairs Briefing (October 14 from<br />

09:30 to 16:00)<br />

in Rome, Italy, upon the invitation of Lottomatica<br />

SpA<br />

31 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


EL/WLA SECURITY AND<br />

RISK MANAGEMENT SEMINAR<br />

S<strong>OF</strong>IA / BULGARIA<br />

WORKSHOPS<br />

Over 60 delegates from 22 countries representing 38<br />

different lottery related organisations gathered in the<br />

Hilton Hotel in Sofia, Bulgaria, for the EL / WLA Security<br />

and Risk Management seminar.<br />

On Thursday 16th June, following a welcoming reception<br />

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

welcome from Mr. Nick Arsenopoulos, the C.E.O. of<br />

Eurofootball (Bulgaria), who wished the seminar every<br />

success and stressed the importance of security and<br />

risk management and the need to share experience<br />

and information.<br />

Thierry Pujol, Chair of the WLA Security and Risk Management<br />

Committee (WLA SRMC), the EL Security<br />

32 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


and Risk Management Working Group and Director<br />

of Security and Risk Management at La Française des<br />

Jeux, introduced members of both committees and<br />

highlighted the projects and tremendous amount of<br />

work that was in the process of being completed by<br />

both bodies.<br />

The objectives of the seminar were also highlighted<br />

and endorsed by moderator John Branscombe of J2B<br />

Security Ltd.<br />

Trond Laupstad, Head of Security at Norsk Tipping<br />

(Norway), Thierry Pujol, Claude Mathieu, Head of<br />

Internal Audit, and Daniëlla Van Reeth, Information<br />

Security Advisor of the Loterie Nationale (Belgium),<br />

described how their Lotteries were dealing with issues<br />

surrounding retail security.<br />

Trond Laupstad concentrated on the well-established<br />

playerregistrationcardsysteminNorway,whilstThierry<br />

Pujol explained the comprehensive monitoring process<br />

in France that has over 21,000 annual visits to retail outlets<br />

by security personnel to identify retailers who are<br />

not complying with procedures in relation to checking<br />

proposed winning tickets and the payment of prizes.<br />

WORKSHOPS<br />

Claude and Daniëlla outlined the Belgium Loterie Nationales’<br />

retail monitoring programme.<br />

At the conclusion of the presentations the group formed<br />

a panel, taking many questions from the floor and<br />

it was clearly apparent that retail security is still an important<br />

topic of concern.<br />

Risk Management always arouses a great deal of interest.Two<br />

excellent presentations were given by Antonio<br />

Gorrasi, IT Security Manager at Lottomatica SpA (Italy)<br />

and Christos Dimitriadis, Head of Information Security<br />

at Intralot (Greece), describing how their organisations<br />

were dealing with risks and related issues.<br />

Paul Jay, Head of IT Security and Networks at Camelot<br />

UK Lotteries Ltd (UK) outlined how Camelot had<br />

painstakingly reviewed its security focus in an effort<br />

to make established controls and processes more business<br />

and user friendly without diluting overall security<br />

and integrity. This prompted much interest and<br />

many questions.<br />

33 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


EL/WLA SECURITY AND<br />

RISK MANAGEMENT SEMINAR<br />

S<strong>OF</strong>IA / BULGARIA<br />

The security of sports betting is another important<br />

area, especially with many “traditional” lottery operators<br />

“considering” sports betting has an additional<br />

income option. Evangelos Cosmidis, from OPAP services<br />

(Greece), used several case studies to illustrate the<br />

threat of collusion, match fixing and money laundering.<br />

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

certification process was the thrust of presentations<br />

from three Lotteries that had approached certification<br />

fromdifferentperspectives.MartinSutton,HeadofPropriety<br />

at Camelot UK Lotteries Ltd. (UK), Thomas Bierbach,<br />

Director of Security and Compliance at Atlantic<br />

Lottery Corporation (Canada), and Carlos Bachmaier,<br />

Corporate Risk Manager at LAE (Spain), highlighted the<br />

actions towards certification and, most importantly, highlighted<br />

the lessons that had been learned.<br />

WORKSHOPS<br />

Elin Lunde Haaland of DNV Business Assurance gave<br />

the auditors’ perspective on the certification process<br />

highlighting the positive benefits but also mistakes and<br />

misunderstandings by operators.<br />

All four presenters later formed a panel to answer questions<br />

from the audience.<br />

The benefits of compliance and certification, the definition<br />

of “assets” and the identification of the first actions<br />

to be considered by an organisation seeking certification,<br />

were among the many issues discussed.<br />

On Friday 17th June, one of the main highlighted topics<br />

was Cybercrime and Internet security. Presentations<br />

were given by Jan Seuri, Chief Information Security<br />

Officer at Veikkaus (Finland), Gunnar Ewald, Head of<br />

Internal Audit at Lotto Hamburg (Germany), Sebastian<br />

Schroeder, Senior Consultant at adesso AG (Germany)<br />

and Matthew Truenow, Principal Information Security<br />

Engineer at Gtech (USA). All four gave presentations,<br />

from various perspectives, to emphasize the threat and<br />

danger of various types of cybercrime to lottery operations.<br />

The value of the WLA standard was highlighted<br />

and prompted delegates to share their own “cybercrime”<br />

experiences.<br />

Steve Townsend, Director of Customer Services and<br />

Information Technology at SGI (UK) and Grant Humphrey,<br />

Director International sales at Pollard Banknote<br />

(Canada), addressed delegates’ interests in the intricacies<br />

of scratch card game design and overall security<br />

in relation to the protection of scratch card game data<br />

independently.<br />

Konrad Supper, Senior Vice president and Head Of Internal<br />

audit and responsible gaming at Westlotto (Germany)<br />

and Marko Hietala, Chief Security Officer at<br />

RAY (Finland), gave independent presentations on the<br />

continuing menace of money laundering and various<br />

prevention measures and actions were described.<br />

34 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


It was accepted that traditional lottery operations are<br />

probably not a target for this criminal activity but it<br />

would appear that sports betting and casino games remain<br />

attractive options.<br />

With the rapid advances in technology, and with the<br />

sheer scale of devices and platforms available, the internal<br />

IT departments of Lotteries are now confronted<br />

with many security challenges. Alexander Krenn, Head<br />

of IT security at Austrian Lotteries (Austria) presented a<br />

very comprehensive overview of new technology challenges<br />

from an internal IT point of view.<br />

Carlos Bachmaier introduced an exercise entitled “Security<br />

is business: Score yourselves!!!!”. This was an innovative<br />

tool for stakeholders to assess their present<br />

operational security situation.<br />

An Independent Control system for lottery operations<br />

is an important safeguard to protect against fraud and<br />

maintain integrity. Torbjörn Borg, Chief Information<br />

Security Officer at Svenska Spel (Sweden), gave details<br />

of the different systems available and the procedure<br />

and processes used in Sweden.<br />

Thierry Pujol closed the seminar thanking the delegates<br />

for their participation, and the suppliers for their<br />

generous support. He also warmly thanked the administration<br />

of the European Lotteries and the welcome,<br />

support and hospitality of Eurofootball Bulgaria.<br />

At the end of the day the feedback from delegates was<br />

that this had been an excellently organised, well run,<br />

enjoyable and very informative seminar.<br />

John Branscombe<br />

Moderator<br />

J2B Security Ltd.<br />

WORKSHOPS<br />

35 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


SPORTS BETTING MORE<br />

THAN EVER UNDER<br />

CONTROL!<br />

Hans Christian Madsen, CEO, Danske Spil (left)<br />

and EL President Friedrich Stickler<br />

The EL Monitoring System was officially implemented<br />

in May 2008, although this service<br />

already exists since 2005. Match-fixing is not a<br />

new issue, but in the light of the alarming increase<br />

of the phenomenon of manipulations of<br />

sporting events, such a system has proven its significance,<br />

not only concerning football games,<br />

but also for all sports competitions such as tennis,<br />

hockey, cricket, etc.<br />

Match-fixing calls all stakeholders into question.<br />

The laissez-faire approach of certain sports organisations,<br />

indifference of the authorities and pressure<br />

from criminal organisations have created an unhealthy<br />

sports environment. So far there has been no due<br />

diligence to identify the details about the teams and<br />

players. Very few institutions have charters outlining<br />

the respective responsibilities and very rarely are<br />

sanctions imposed. Corruption has become so omnipresent<br />

that the critics were finally heard by proving<br />

that this is detrimental for sports integrity in general,<br />

affects the respect of the public towards the players<br />

as well as the confidence in sports betting and the<br />

organisations managing these games and bets.<br />

MONITORING SYSTEM<br />

The EL Monitoring System has since then had a serious<br />

impact and the numbers prove it:<br />

From July 2009 to April <strong>2011</strong>:<br />

- 1,399 league matches have been monitored<br />

- 1,362 Champions League matches<br />

- 175 women’s football matches<br />

- 463 international matches<br />

- etc.<br />

A total of 3,743 matches have been closely watched<br />

by the group of experts in charge of the Monitoring<br />

System.<br />

In addition, 66 matches have been reported to UEFA<br />

and FIFA during this period.<br />

The problem of illegality in matches has now reached<br />

global dimensions and in the future the ELMS will<br />

extend its field of action beyond Europe to incorporate<br />

new Lottery members and broaden the Monitoring<br />

System to include all sorts of sports activities at<br />

an international level.<br />

EL signed an extension of the Memorandum of Understanding<br />

with Danske Spil for the period from<br />

June <strong>2011</strong> to May 2013. The member Lotteries very<br />

much appreciate the work achieved in this area, namely<br />

the adoption of clear regulations to protect the<br />

integrity of competitions, the implementation of verification,<br />

alert and precaution systems as well as improving<br />

the relationship with major sports organisations.<br />

They are happy to continue the collaboration<br />

with the office of the EL Monitoring System, which<br />

will contribute to strengthen their sports betting<br />

operations by assisting them not only to recognize<br />

the dangers in certain matches, but also to eliminate<br />

opportunities for corruption.<br />

Bernadette Lobjois<br />

Secretary General<br />

Danske Spil A/S in Brøndby/Denmark expanded the Monitoring<br />

System group. Chris Rasmussen joined Jens Nielsen, Head of Sports<br />

Betting Operations and also Chairman of the Sports Working Group.<br />

A monthly report is sent to the member Lotteries of the Monitoring<br />

System.<br />

36 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>


Androulla Vassiliou (1 st rank, 6 th from left), Commissioner in charge of Sport, with the participants of the high-level structured dialogue on sport<br />

HEARING AT <strong>THE</strong> <strong>EUROPEAN</strong> PARLIAMENT:<br />

EL PRESIDENT FRIEDRICH STICKLER<br />

ADDRESSES MEMBERS <strong>OF</strong> <strong>THE</strong> IMCO COMMITTEE<br />

On 15 June <strong>2011</strong>, the European Parliament held a public<br />

hearing on on-line gambling. The hearing took<br />

place in the framework of the European Parliament’s<br />

deliberations on the European Commission’s Green<br />

Paper on on-line gambling. The European Lotteries<br />

was one of only two gambling operators associations<br />

invited to present its views at this hearing.<br />

In his presentation, Friedrich Stickler outlined the<br />

EL guiding principles for a sustainable gambling<br />

policy: solidarity, subsidiarity, integrity and precaution.<br />

Focusing on integrity in particular, he stressed<br />

the need for full legal compliance and strict enforcement,<br />

highlighting that countries should not give licences<br />

to operators who operate illegally in another<br />

country of the European Union.<br />

The hearing was well attended by the key Members<br />

of the European Parliament who are playing an active<br />

role in the debate on the Green Paper as well as<br />

a large number of stakeholders.<br />

EU SPORTS COUNCIL: EL PARTICIPATES IN HIGH-<br />

LEVEL STRUCTURED DIALOGUE ON SPORT<br />

EL, represented by its President Friedrich Stickler,<br />

was invited to attend a high-level meeting between<br />

key EU policy-makers and sport stakeholders which<br />

took place in Brussels on 20 May <strong>2011</strong>. The highlevel<br />

meeting preceded the important EU Sports<br />

Council, at which the sports ministers of the EU<br />

Member States adopted a three-year work plan on<br />

sport, which defines the sustainable financing of<br />

grassroots sport and the integrity of sport as two of<br />

the top three priorities until 2014.<br />

In his intervention, Friedrich Stickler stressed the<br />

great benefit that European sport has drawn for over<br />

50 years from the public benefit model for gambling<br />

and betting that EL Members stand for and the sport<br />

funding resulting from it. He noted that this model<br />

is being challenged by hundreds of online gambling<br />

companies which pursue purely commercial interests<br />

and ignore the interests of sport.<br />

In the subsequent debate on sport-related aspects<br />

of online betting, EU sport ministers expressed their<br />

<strong>EUROPEAN</strong> PARLIAMENT<br />

concern about the “invasion of illegal betting sites”<br />

defying national laws, control and taxation and<br />

about the increase of match-fixing incidents and<br />

other manipulations of sport competitions associated<br />

with betting.<br />

EL President Stickler also participated in a follow-up<br />

debate on online betting between the highest level<br />

sport officials from the Member States at a Sports<br />

Directors meeting in Gödöllö (Hungary) on 27 June.<br />

As in his presentation to the Members of the European<br />

Parliament’s IMCO committee, he outlined to<br />

the Sports Directors the EL guiding principles for a<br />

sustainable gambling policy: solidarity, subsidiarity,<br />

integrity and precaution. Focusing on integrity in<br />

particular, he stressed the need for full legal compliance<br />

and strict enforcement, highlighting that<br />

countries should not give licences to operators who<br />

operate illegally in another country of the European<br />

Union.<br />

EL and “Sport et Citoyenneté” roundtable discussion<br />

with MEP Santiago Fisas-Ayxela<br />

On 24 May <strong>2011</strong>, EL and the think tank “Sport et Citoyenneté”<br />

jointly organised a roundtable discussion<br />

on the integrity of sport and the financing of<br />

grassroots sport. The roundtable took place inside<br />

the European Parliament and was attended by a<br />

select group of EU policy makers and stakeholders<br />

working closely on the issue.<br />

The key speaker at the workshop was MEP Santiago<br />

Fisas-Ayxela, the Member of the European Parliament<br />

leading on the European Parliament’s report<br />

on the European Commission’s Sport strategy. President<br />

Stickler presented the EL priorities on the<br />

dossier, stressing the contributions lotteries make<br />

to sport and the importance of preserving the integrity<br />

of sport, addressing also the problems linked<br />

to a potential sports owners right. The roundtable<br />

was moderated by the Vice-President of “Sport et<br />

Citoyenneté”, Vincent Chaudel. The independent<br />

expert Alexandre Husting, a member of the scientific<br />

committee of “Sport et Citoyenneté”, contributed<br />

his expert views on the topic.<br />

37 NEWS 37 <strong>SEPTEMBER</strong> <strong>2011</strong>

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