Ontario Lottery and Gaming Corporation Charitable Gaming

Ontario Lottery and Gaming Corporation
Charitable Gaming Revitalization
cGaming Revitalization
• Part 1:
▫ Building for the Future
• Part 2:
▫ Transition - Planning and Operating
Today
Ontario Lottery and Gaming Corporation
Charitable Gaming Revitalization
Building for the Future
Diane Gartshore,
Director, Charitable Gaming Implementation, OLG
cGaming Revitalization
• Part 1:
▫ Building for the Future
 Background
 Launches
 Products
 Performance
Background
• Over a decade ago, in Ontario, there were
6,000 charities raising funds through 230 bingo
halls
• Today there 2,800 charities raising funds
through 61 bingo halls
Background
Engagement
Partnership
Strong relationships, shared goals, engagement and
commitment are key to revitalization
Revitalization Strategic Goals
• To stabilize and grow the funding for 2800
charities in communities across Ontario.
• Drive economic and social benefits back to the
communities.
• Modernize the products to continue to support
a distinct customer entertainment experience
of the charitable gaming players.
An important source of funding for local charities
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Alzheimer Society
Arthritis Society
Big Brothers / Big Sisters
Canadian Hard of Hearing Association
CNIB
Down Syndrome Association of Sudbury
Elizabeth Fry Society
John Howard Society
Multiple Sclerosis Society
St. John Ambulance
Sudbury Regional Hospital Cardiac
Rehabilitation
Sudbury Therapeutic Riding Program
VON of Canada
Banque D’Aliments Sudbury Food Bank
Childhood Enfance
Children’s Aid Society
House of Kin
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Inner City Home Sudbury
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Women and Children’s Shelter of Barrie
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Action Sudbury
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Crime Stoppers of Simcoe-Dufferin
Northern Lights Festival Boreal Sudbury
Muskoka
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Sudbury Symphony Orchestra 
Grieving Children’s Centre
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Coniston Minor Hockey Association
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Ontario SPCA
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Sudbury Laurels Gymnastic club
Barrie & District Girls Softball
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Association
Kiwanis Club
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Barrie
Kempettes
Gymnastic
Club
Lions Club
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Ontario Special Olympics
Canadian Spinal Research
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Health Association
Windsor Competitive Dance
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Epilepsy Simcoe County
YWCA
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Kawartha
Sexual
Assault
Centre
Royal Canadian Legion
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Kinark Child and Family Services
Deaf Access Simcoe
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Canadian Mental Health Association of
Barrie
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Canadian Diabetes Association
Habitat for Humanity
Independent Living Centre Kingston
Kidney Foundation of Canada
Providence Care
Bereaved Families of Ontario
Kingston
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Childbirth Kingston
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Kingston Arts Council
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Kingston Symphony Association
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Loyalist Youth Association
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Seniors Association Kingston
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Telephone Aid LineCanadian Cystic
Fibrosis
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Community Living Essex County
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Windsor Police Pipe Band
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Youth Connection Windsor
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Youth and Family Network Essex
County
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Scouts Canada Windsor
Schizophrenia Society
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B’Nai Brith Windsor
Simcoe Community Services
Dougall Parents Association
Stroke Recovery Association 
Windsor
St. Leonard's Society
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Harmony in Action Windsor
Artspace Peterborough
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Optimist Club of South Windsor
Peterborough Humane Society
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Camp Northern Lights PeterboroughWindsor Homes Coalition
Brentwood Foundation for the
Kawartha Youth Gymnastics 
Recovery of Alcoholics
Barrie Northern Collegiate
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Great Beginnings Child Centered
Eastview Secondary School Barrie
Co-Operative
Canadian Hearing Society
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Hospice of Windsor and Essex
Rotary Club of Barrie Huronia
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Windsor & Essex County Crime
Windsor Firefighters Benevolent
Stoppers
Association
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MS Society
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Ontario March of Dimes
Getting there
Industry
Commitment
Standard
Commission
Model
Standard
Contracts
Enhanced
Responsible
Gambling
New Centre
and Product
Launches
Product
Development
New
Regulatory
Standards
Operational
Readiness
New product ,
services and
customer
experience
Highlights
2005-2010:
Launched and Operated six pilot
centres with electronic bingo and Play
on Demand (POD) games
In 2010 received government direction
to proceed
2010-2011:
Industry engagement of Operators,
Charities, Municipalities. All three
groups must agree to move forward.
37 Centres operators and charities
expressed interest
Highlights
2011-2012:
Building new models (operating, financial,
regulatory, contractual.)
New products development and
procurement.
Centre standards and build.
August 2012:
First new centre launched with eBingo and
POD
In less than two years launched 17 new
centres and operating 23 Centres today.
TapTix in 22 Centres
Ontario cGaming Centres
Centres Launched
Centres to be launched
cGaming Products
• An evolution, transition approach – complementing current
games offered on paper format with new electronic deliver
Paper Game Formats
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Session Bingo
Shutterboard Bingo
Break Open Tickets
Lottery Tickets
Electronic Game Formats
– Session Bingo (eBingo)
– eShutterboard Bingo
– Electronic Break Open
Ticket Dispensers
– Play on Demand Computer
Games (i.e., Bingo, Break
Open and Lottery games)
– Rapid Draw Bingo
• Both formats offered complements each other. It is an approach
to sustain current players while attracting new players.
Products
Now in Centres
Session Bingo – paper and electronic
Turbo Challenge - Electronic Shutterboard
Paper Break Open Tickets
TapTix – electronic ticket dispensers
POD - Play on Demand Computer Games
(i.e., Bingo, Break Open and Lottery games)
Progressive Games (Bingo, POD)
Traditional Lottery product
Planned
 Rapid Draw Bingo
 TapTix enhancements
 New product
Performance Trending up
New Charitable Gaming Centres Net Win Trend
(in millions)
1.4
1.3
Post eBingo Launch:
Net Win increases at
rate of 8.2%
1.2
1.1
1.0
0.9
Pre eBingo Launch: Net
Win declined at a rate
7.3%
0.8
0.7
0.6
3 year Prior to eBingo Launch
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2 year Prior to eBingo Launch
1 year Prior to eBingo Launch
1st year After to eBingo Launch
Continued decline of revenues in the paper only bingo sites – shrinking revenues with same or increasing
cost structure
Though we are early with a limited history and without a full product portfolio, eBingo / POD / BOT-D
implementations seem to be stemming the revenue decline
TapTix product performance
Average BOT Dispenser WPUPD Trend - F2012-13 & F2013-14 Weekly Consolidated
120
98.85
92.33
50,000
80.94
40,000
75.91
75.06
73.14
73.44
30,000
67.09
77.86
100
86.24
72.60
80
60
69.45
63.01 60.50
20,000
40
10,000
20
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Average Net Revenue
Consolidated Weekly Win Per Unit
Linear (Consolidated Weekly Win Per Unit)
Week Ending
Averave WPUPD
Average Net Win Per Day
60,000
Product Performance
Changing focus
• Implementations are consistent or “cookie cutter”.
• Implement one per month (eBingo, POD, eShutter) followed a
month later with TapTix.
• Overall have 40 Centres on the list and implementation will
continue month over month.
• Startup focus has been to revitalize an industry - and only focused
on critical process: Stakeholder engagement; Launches and centre
preparedness for launch; Alternative Service Delivery (ASD) to
outsource IT to Canadian Banknote; Initial products; New
regulatory standards
• Shift is required – one that focuses on operating a sustainable
industry, new products, customer service and continuous
improvement.
Ontario Lottery and Gaming Corporation
Charitable Gaming Revitalization
Transition: Planning and Operating today
Robert Longman,
Manager Channel Management
Transition to a Stable Charitable
Gaming Environment
cGaming Strategic Goals
• Stabilize and grow the primary source of funding
for 2800 charities and sustain the contribution they
make by doing good work in the communities.
• Drive economic benefits back to the communities
• Modernize products to continue to support a
distinct customer entertainment experience of the
charitable gaming players
Roles, Responsibilities & Accountabilities
Site Service
Provider
Charity
Role
Definition
• Provide “good
causes awareness
generation”, use of
brand, site
customer support
service to OLG for
revenue
commission (direct
funding)
Accountable
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Provide use of Charity
Branding
Provide on site and
community services
Support OLG
corporate initiatives
such as responsible
gaming and
government policies
and laws
• Provide site
operations
service to
OLG for
revenue
commission
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Provide
facilities
Daily
operations
management
OLG gaming
product mix
management
Site
marketing
Staffing
Superior
customer
service
Compliance
to OLG’s
policies &
procedures
Support OLG
corporate
initiatives
Tech & Product
Provider
Municipality
• Provide
charity
eligibility and
appropriate
use of
proceeds
service to OLG
for revenue
commission
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Manage charity
eligibility
process –
issuance of
permits
Enforcement of
use of
charitable
proceeds
Mediate and
resolve charity
permit
discrepancies
Manage number
of eligible
charities per
site
• Provide to OLG
games, products,
technology and
systems
management for
fee
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Manage owned or
controlled by OLG
Charitable & Bingo
Gaming systems
Manage owned or
licensed software
solutions by OLG
Provide systems
hosting facilities and
services for OLG’s
systems
Provision of
technical customer
support, application
support, software
support and
hardware
maintenance support
Solutions provision
as designed or
approved by OLG
Site hardware
maintenance
OLG
• Conduct & Manage
(operating mind
oversight)
• Controls through
contracts, service
levels and policies and
procedures
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Operating mind oversight
Ownership or control of
systems
Ownership of draws
Approval of site gameprograms, marketing and
initiatives
Player management,
ownership
New product
development, games or
solutions approval (i.e.,
design, payout, pricing)
Implementation control
Compensation for
services control
Brand and intellectual
rights ownership or
control
Security Governance &
Standards
Data Ownership and
Management
The sites are operating but there are
growing pains…
We need a plan.
cGaming Plan Overview – Work Categories & Streams
Products
Customer
Experience
Product Strategy
POD Refresh Strategy
POD Short Term Execution
Advertising &
Promotions
Current State – Customer
Experience
Future State – Customer
Experience
DGE BOT Refresh Execution
New Products - Pipeline
Deployment
1 hall every 4 weeks
BOT dispensers – 28 days later
Deployment Refinement – Lessons Learned
BOT-D Short Term Financial Plan
Small Centers
Electronic Shutter Board
Rapid Draw Bingo
Stakeholder Engagement
Re-building the Business Case
Oversight CPG & Program
Marketing Strategy
Marketing Process
Management
Operational
Sustainability
Formalize Operational Environment
Retrofitting Existing Sites
Operational Risks, Issues and Short Term
Tactics
Align Risk, Compliance & Control Environment
Product Reporting Strategy
User Acceptance Testing Plan
cGaming Contracts
Lessons Learned – CBN, AGCO, OLG
Transitional Organization
Work Environment
Change Management
How are we doing against the plan?
Identify and assess operational risks
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Regulatory Requirements
Responsible Gambling Requirements
Site Level Controls-Games
Bingo Session Set Up-CBN
Internal Audit Management Response
Business Process Improvements
Marketing Tool Box
Advertising Campaigns
Player Acquisition
Promote Charities
Service Provider Business Readiness
Prelaunch
Post Launch Short Term
Post Launch Long Term
Operationalize Marketing Fund
Map out current process
Stakeholder perspectives re: usage of fund
Brainstorm solutions – alignment on acceptance
Plan Plan Plan!
Mitigate Risks
Drive Process Improvement
Ontario Lottery and Gaming Corporation
Charitable Gaming Revitalization
Q&A