players` satisfaction
Transcription
players` satisfaction
NEWS 34 MAGA ZI N E O F TH E EU RO PE AN LOT TER I E S , 201 0, S EPTEM B ER CONTENT: PLAYERS' SATISFACTION 1. Foreword 3. Editorial 4. Players’ Satisfaction 26. Legal 28. News Members 30. Premium Partners 32. Responsible Gaming 33. Workshops AGENDA 2010 SEPTEMBER • EL RESPONSIBLE GAMING SEMINAR 29 September-01 October Location: Stockholm, Sweden Host: Svenska Spel NOVEMBER • EL EUROPEAN LEGAL AFFAIRS SEMINAR 17 November (one day meeting on European issues) Location: Brussels, Belgium • OCTOBER • EUROPEAN LOTTERY MANAGEMENT (ELM) 13-15 October Location: Lausanne, Switzerland Host: Société de la Loterie de la Suisse Romande LOTTERY ONLINE GAMING MARKETS 2010 EL/WLA INTERNET SEMINAR 22-24 November Location: Rome, Italy Host: Lottomatica SpA Registration for all our seminars can be done online at http://www.european-lotteries.org All events are available on our website (under events). Announcements are made a few months in advance. IN PREPARATION: JOINT EL/WLA MARKETING SEMINAR IN LONDON / UK From 26-28 January 2011 Mastering marketing in the age of new social media Marketing, promotion and communication The London marketing seminar has become an institution. Marketing is a vital part of all lottery organizations. London is a great location and our timing matches that of the ICE exhibition. But most importantly, EL and the WLA offer a top notch two day business program on promotion and communication using new media. In Europe, Canada and Australia, more than 30 lotteries sell their products online. Not only traditional lotteries, but also games like bingo and poker. But how advanced is your company promoting your games? How do you communicate your corporate identity and responsible gaming efforts? How do you blog and Twitter and what is your Facebook profile like – if any? How do you communicate with your customers not relying on the gentle smile from your retailer but using new social media and what is their response? To learn and discuss with best practice lotteries and to listen to external new media communication gurus, join us in London, January 26-28, 2011, and you will find out. NEW ASSOCIATE MEMBER: LVS Ltd 11-15, St Mary at Hill UK – London EC3R 8EE AGENDA NEWS 34 SEPTEMBER 2010 FOREWORD current Belgian EU Presidency takes in our sector. It has scheduled five expert meetings, one ministers’ meeting and two conferences on gambling between July and December this year. The second conference, on 16 November, will deal with the contributions of lotteries to society. As always, we are providing EU policy makers with the facts and figures on the matters they are discussing. DEAR EL MEMBERS, LADIES AND GENTLEMEN, DEAR FRIENDS, Again, we have witnessed very positive developments in the EU over the past months. In June and July, the Court of Justice of the EU delivered three judgments in which it gave full backing to the gambling model we stand for, a model from which the whole of society benefits. And it once again rejected the arguments of the many private online gambling operators which pursue purely commercial interests. In its rulings, the Court provided more legal certainty to all national governments and all national lotteries in the EU, including those not owned by the state. companies such as bwin and PartyGaming on the one hand obtain licences to legally pursue their activities in France, but on the other hand – as they announced in the context of their planned merger early next year - make 31 and 18 per cent, respectively, of their profits in Germany, where all online gaming and betting has been prohibited since January 2009. In the wake of the Court’s rulings since September 2009, a number of national governments in Europe have intensified their enforcement actions against illegal online gambling operations. We hope that many other governments will follow suit. There is no reason to be hesitant. On 8 and 9 September, the Court will rule in the German and Austrian gambling cases. We expect the Court to deliver another condemnation of offshore operations. Meanwhile, one is surprised to learn that commercial online gambling A very positive development at the EU level is also the strong interest the THE EUROPEAN LOTTERIES PRESIDENT Dipl. Ing. Friedrich STICKLER, Deputy General Director AUSTRIAN LOTTERIES, Austria 1ST VICE-PRESIDENT Mr Christophe BLANCHARD-DIGNAC, President – General Director LA FRANÇAISE DES JEUX, France 2ND VICE-PRESIDENT Mr Tjeerd VEENSTRA, Director DE LOTTO, Netherlands MEMBERS OF THE BOARD Mr Hansjörg HÖLTKEMEIER, Member of the Managing Board DEUTSCHE KLASSENLOTTERIE BERLIN, Germany Mr Gonzalo FERNÁNDEZ RODRíGUEZ, General Director LOTERíAS Y APUESTAS DEL ESTADO Spain JUDr. Ales HUSAK, Chairman of the Board of Directors and General Director SAZKA a.s., Czech Republic Mr Léon LOSCH, Director LOTERIE NATIONALE, Luxembourg FOREWORD AND ORGANISATION Speaking about facts and figures, I would like to thank all EL members for providing their 2009 data more quickly than ever before. This is absolutely essential for our successful cooperation with policy makers at the EU and national levels. In the context of the European Commission’s upcoming consultation on online gambling, likely to be opened in November, we will consult with you further and look forward to you sharing your experience, expertise and thoughts with us. Friedrich STICKLER EL President Mr Giovanni E. MAGGI, Director SISAL SpA, Italy Mr Jean-Luc MONER-BANET, General Director LOTERIE ROMANDE, Switzerland Mr Offer PERI, CEO & General Director ISRAEL SPORTS BETTING BOARD, Israel Ms Dianne THOMPSON, CBE, Chief Executive CAMELOT UK LOTTERIES LTD., United Kingdom 1 NEWS 34 SEPTEMBER 2010 GENERAL SECRETARIAT Ms Bernadette Lobjois Secretary General Av. de Béthusy 36 CH-1005 LAUSANNE Tel. +41 21 311 30 25 Fax +41 21 312 30 11 http://www.european-lotteries.org E-mail. [email protected] A WORLD OF POSSIBILITIES Tap into the investment power of a global leader in the lottery and gaming industries and gain access to a broad and rich portfolio of products and services designed to help you optimize revenues. THE PLAYER IS KING In this edition we will tackle a topic that is at the core of our trade: THE PLAYER, the main stakeholder in the economic philosophy of all lotteries. In order to best satisfy their customer’s needs and secure their loyalty, the lotteries continuously carry out studies, organise forums or respond to customer requirements and needs through customer service. Regularly launching new games is obviously a necessary step for the lotteries – in order to “appeal” to their players and maintain their interest in the brand. It is nevertheless essential to have thorough knowledge of their needs. In order to do so, a constant dialogue is established by the lotteries, either by means of Internet, brochures or electronic messaging. The usage of the most modern means such as Facebook and Twitter ensures proximity with the new generation of adult players. Some lotteries have introduced loyalty cards allowing them to regularly assess the satisfaction level of their players and to communicate with them instantaneously. The players are of course able to recognize reliable lotteries monitored by the state. Not only are the security levels extremely high, but also these organisations would not be able to operate without having set up significant responsible gaming policies. In their communications to the players, the lotteries keep them informed about allocations made, directly or indirectly, to various charitable organisations. By nature, the lotteries receive state licences provided that the collected sums are used to finance good causes, after deducting the earnings from players and covering their costs. This topic has been well received by our Members who have answered our questionnaire extensively. Their comments are presented either in the introduction or in separate articles that give a look at the different strategies set up by lotteries. In addition, we are currently working on the second semester of 2010 with a busy activity programme: – Responsible Gaming Seminar in Stockholm from 29 September to 1 October. During this meeting you will be given all necessary tools to complete your Certification (see text regarding the presentation of the Certificates in this magazine). – EL Management in Lausanne from 13 to 15 October. New managers and executives regularly join the lottery world and it is important that EDITORIAL they be up to date on best practices in the gaming sector and that they familiarize themselves with answers given by their colleagues facing the same challenges. – Legal Seminar on 17 November in Brussels during which the Members will receive the latest legal information from the European Community. – Internet Seminar in Rome from 22 to 24 November jointly organised with WLA. Online markets have changed during the past months and new models have emerged. During this seminar different points of view will be presented in order to better familiarise our Members with the challenges in this continuously changing sector. In view of its next meeting on 14 September, the Executive Committee will receive propositions for the 2011 activities which will thereafter be available on our website. Please see our website: www.european-lotteries.org to find out more. I wish you a very pleasant autumn and am looking forward to seeing you or one of your colleagues again at one of our events. With my best regards, Bernadette LOBJOIS Secretary General 3 NEWS 34 SEPTEMBER 2010 PLAYERS’ SATISFACTION: KEY LOTTERY PERFORMANCE INDICATOR We all have needs – personal and professional, and if these needs are not recognized or appreciated, our behaviour will change and any relationship around us might be greatly impacted. Successful businesses have long decided that listening to their customers and knowing how to answer their needs will give them an edge on competition, allow them to grow and create value for both groups. More than ever, due to the advances of the digital and mobile technology, the Lottery industry faces harsh competition. Borders are falling thanks to the Internet, new legitimized game operators are allowed to compete against state-sponsored organizations, and players can access games anywhere, anytime. Lotteries must become the best in their field in order to remain attractive. To do so, they have to constantly upgrade their products and services, and rethink their management tools. And most of all, they must care about their relationship with players. Games marketers, operators and websites – more or less honest – solicit regularly lottery players, and it can be a daunting task for the consumer to verify the legitimacy of these offers and an up-hill battle to resist the captivating messages. This is where Lotteries can perform best: Players want to be appreciated, consulted and most of all informed. As a legitimate organization whose mission is to collect funds for good causes and the community, a Lottery can easily have the upper hand on convincing players of their honest, transparent and secure game offers. Reaching for consumers on all communication channels, they can create a collaborative environment between them and their players: The Lottery listens and innovates according to the information gained from players and the players are satisfied and respond by becoming loyal customers. Establishing a perfect formula to know players’ preferences and anticipate changing behaviours is impossible. Communication must be multidirectional in order to be most effective because what motivates a player one day might change the next day. Therefore, the inter-action between Lottery staff, retailers and players is key to success, and an PLAYERS’ SATISFACTION open communication framework helps each group to better communicate. The other approach is to constantly monitor consumer’s behaviour through market research, studies, regular information exchange and the use of all communication channels. Eesti Loto in Estonia has known that fact for a while and to answer the ever shifting behaviour of players, they already provide games on mobile devices and are getting ready to launch a new website as well as gaming opportunities on smart-phones. They are also looking at the popular social networking sites to communicate their message of safe and entertaining games. Israel Sports Betting Board in Israel combines physical and informational access to spur a greater flow of information. Their POS have been entirely redesigned to present a modern, dynamic and friendly environment where players can be entertained, while being made aware of the organization’s mission and ethics commitment. Customer relation strategy is an essential tool for a lottery’s performance and most organizations base their business operations and new product development on in-depth customer understanding. Veikkaus Oy in Finland has been using this approach for years, knowing that their success depends on meeting or surpassing players’ expectations. They keep in touch with customers any way they can: Internet, social media networks, SMS, e-mails as well as promotional and information brochures offered at POS. They have designed a Customer Loyalty Programme as part of a variety of tangible benefits presented to players, which can give them access to VIP trips to sporting events, concert tickets or free admission to museums for example. Direct feedback from players is the perfect guideline to rethink a new game or develop activities that will enhance customers’ gaming experience in the future. At National Lottery Ireland, the regular tracking of player’s behaviour, new trends, spending patterns as well as non-player attitudes towards the National Lottery is a necessary step not only to improve communication with customers but also the quality of the Lottery products and services. As with other 4 NEWS 34 SEPTEMBER 2010 lotteries, National Lottery Ireland also considers its staff and retailers’ comments before launching new games. To achieve the best communication, quality service is in the forefront. In Hungary, Szerencsejáték Zrt. Lottery makes sure that the flow of information is fast and precise. Any complaint is answered quickly and accurately. General information and play availability is made possible through a palette of access tools: Internet, SMS, Call Centres, E-players’ cards in addition to regular POS. All Lotteries are committed to responsible gaming and have put in place many services to help their players. In Hungary, Szerencsejáték Zrt. Lottery has a direct relationship with the Medical Strategic Research Centre where players can access information on game dependency and help lines. The one goal that all Lotteries strive to achieve is to retain a players loyalty. This is why Lotteries must have a fully transparent operation and constantly explain the social aim of their profits PLAYERS’ SATISFACTION and their commitment to a safe and responsible game experience. Loteria de Catalunya in Spain has set up all its communication tools to add value to its products and its brand and keep players coming back. Every partner is involved: Retailers, staff and players to make sure that playing remains a safe and entertaining practice. In this issue, Lotteries describe the many different information channels they use to open up to players. By engaging customers to communicate and participate in the development of new products, Lotteries can present more satisfying games and services. The equation is simple: A better understanding of their players’ needs equals a broader reach of players, a more cohesive relationship between the two groups and in the end better security for players and strong market advantage for lotteries. A good and regular communication transforms a traditional business into a more cooperative framework - a winning solution for all. 5 NEWS 34 SEPTEMBER 2010 GUIDING OUR CUSTOMERS: AN ENDURING CHALLENGE LA FRANÇAISE DES JEUX Boasting millions of customers, La Française des Jeux ranks their satisfaction at the core of its model for economic performance and sustainable development. 2009 has been the kick-start year in this field with a new management dedicated to customer assistance and loyalty programs. Being a responsible game operator, the company acts as responsibly when it comes to payouts. The assistance is in fact a central element of any interactions with players before and after the winnings. With 2 out of 3 French people being of age of playing and a total of 28.2 million players in 2009, La Française des Jeux remains in close and regular contact with a large portion of the population. Satisfying millions of players is and has been for a long time a natural milestone in the Lottery’s strategy and in fact has been the driving force behind the creation of the FDJ® brand in 2009. Capitalizing on the company’s assets (reputation, strength, reliability), the brand henceforth bears the professional vision of the lottery and presents a position of partner-advisor. To this effect, it focuses and conveys our values and commitments to the players: fun, responsible and secure games; quality and performance of products; service and proximity to the customers, etc. It will help boost a lasting relationship of confidence with each customer, and notably in the prospect of the opening of the online gaming market. ORGANIZED FOR A BETTER SATISFACTION At the beginning of 2010, La Française des Jeux created a Customer Division with about fifty employees. This reorganization, granted and prepared in 2009, highlights the Lottery’s intent to place the customer at the center of its activities. This new Division has the ambition of consolidating the position of FDJ® as the favored brand of games of chance in France while following up essentially on customers’ satisfaction. Thus in order to best guide the players towards the proposed services, FDJ® has decided to facilitate the access to its Customer Service whose quality is regularly measured. A telephone number, PLAYERS’ SATISFACTION now unique and accessible at no extra charge, as well as an address where to contact FDJ® will soon be mentioned on all communication materials. In addition, to get to know the players better, the trend of their expectations and understand their perception, La Française des Jeux has been conducting studies for a long time with all its partners (customers, retailers, etc.); for online players especially, an evaluation of the customer satisfaction has been established annually since 2006 and takes into account: full course fluidity, offers of addedvalue services, relevance of the different means of contact being used, quick and efficient handling of requests, etc. The results are then being analyzed and action plans are set up to bring improvement from year to year. And the results speak for themselves: from end 2006 to end 2009, the grade applied to the satisfaction level by online customers has gone from 7.2 to 7.6 with 10 being the highest mark. A few satisfaction reasons are sometimes communicated to customers (for example the moderation services such as Playscan). A feature that the company wishes to improve in 2010 for all its customers will be the priority given to the quick handling of requests, a key factor in satisfaction. FOCUS: STANDING BY THE CUSTOMERS’ SIDE: THE BIG WINNERS With more than 800 million prizes paid in 2009, the game is most often synonymous of profit. But not all prizes have the same impact: when the prize money is superior to one million Euros; the beneficiary enters the category of “Big Winners”. He is then subject to a specific assistance. The objective: to give him key-information or tools that will help him to better comprehend his new situation and the possible professional and social consequences. The support is adapted to the different phases that follow the win. As a first step, the player must go from dream to reality. La Française des Jeux brings assistance by giving him the opportunity of being entrusted to the Winners-Relation Service. The three team-members 6 NEWS 34 SEPTEMBER 2010 of this service do not hesitate to go visit the winner at his domicile if needed. In 2009, they have completed 29 private visits. For winnings equal to or superior to 15 million euros, the winner can request an interlocutor all year round, seven days a week, around the clock, by means of a specific clienttelephone number. As a second step, the player must adjust to his new financial reality. To help him immediately after his win, La Française des Jeux sends him an educational document to teach him about financial management, followed shortly after by an invitation to participate in a training day on the subject. This way, the customer gets accustomed to taxation vocabulary, real estate rights as well as family and financial rights. He also receives common sense and cautionary advices. At the same time, La Française des Jeux assists him in communicating his feelings and questions. In 2009, the Lottery has organized six days focusing, for example, on the topic of “How to keep on enjoying yourself when you can afford everything?”. The psychologist Marie-José Lacroix animated these sessions with an attendance of 10 to 15 winners each day. In 2009, La Française des Jeux tended 122 big winners. Focus 1 WELL GUIDED BIG WINNERS A survey conducted in 2008 and 2009 by sociologists Michel Pinçon and Monique Pinçon-Charlot on hundreds of big winners confirms that La Française des Jeux Help Service dedicated to big winners not only was adapted to their expectations, but was also a necessity in a destabilizing time for the winner. With this knowledge, the Lottery will strengthen its action in 2010 with priority given to a heightened individual follow-up and a broader offer of materials to cover all the winners’ questions. Conferences will then be organized on a variety of topics, going from the notion of privacy to the place occupied by money in children’s education. Also, tours will be organized to discover the unusual Paris as well as the “other side of the picture” of a large palace in the capital city. Focus 2 COMPLETE SATISFACTION WITH CUSTOMER SERVICE Every year, La Française des Jeux measures the satisfaction level of players who contact its Customer Service. The last study was carried out with a representative sample group of 1,033 Internet players who contacted the Customer Service by phone or via e-mail during the period of October 5-26, 2009. The results: With 92% of satisfied users, the recognized quality of the PLAYERS’ SATISFACTION service has positioned the company among the best telephone-based customer services in its category. Thus, 70% of users (against 60% in 2008) estimate this service to be superior to the other customer services they have recently contacted by phone. In conclusion, 96 % of the callers have received an answer to their questions and 79% of the complaints have been resolved. And from one year to the other, the high level of satisfaction as for the obtained response is confirmed (93% in 2009 against 91% in 2008). 7 NEWS 34 SEPTEMBER 2010 8 NEWS 34 SEPTEMBER 2010 CONSTANT SURVEYS OF PLAYERS’ SATISFACTION AT WESTDEUTSCHE LOTTERIE GMBH & CO. OHG When playing games offered by the Westdeutsche Lotterie (WestLotto), customers and players can rely on the fact that WestLotto is acting according to the legal framework and that the offer is adapted to the customer’s expectations. Based on that concept, WestLotto is constantly striving to improve its offers by conducting regular checks – often together with the other members of the German Block – before (and frequently even after) the launch of a new product. Any product or services modifications are done according to the results evaluated by suitable market research. For example, to make the core product “LOTTO 6/49“ more attractive, it was considered to simplify the winning formula and to increase the frequency of wins. Without describing in detail all the tested modifications, there have been surprising results in the group discussions with players and retail agents (separate groups): Although only regular players were members of the players’ discussion group, hardly anyone knew the correct stake for one row (only the total costs for the whole lottery ticket). The players rejected the idea of a stake reimbursement (with very good winning odds of 1:10), because it goes against their understanding of playing LOTTO 6/49. The players want to win – and preferably “the right way” – and do not want a rational minimization of gaming risks. On the contrary, the majority of the retail agents assessed the stake reimbursement as positive, because they hoped to profit from the increased winning frequency with more customer visits. Based on these results, WestLotto has given up on the idea of stake reimbursements. In a similar way but with other methods, tests applied to the product “Eurojackpot” (acceptance test, analyses of market potential) or studies on the acceptance of product modifications for Spiel 77 (price increase and at the same time improvement of winning plan) have been conducted. In addition to the specific evaluation of likeability, there is a continued observation of the general player’s behaviour. To this end, a special customer panel has been established which represents the adult German population. Each month, the almost PLAYERS’ SATISFACTION 10,000 participants indicate their participation in games of chance, so that an updated data base is always available (player profiles, participations/ intensities, parallel participation, migrations etc.) and trends in the gambling market can be analyzed in the long run. For instance, due to the fact that the commercial lottery brokers were very successful in the past, this has led the German lotteries to offer system shares, and with that the Wednesday Lotto and the Saturday Lotto have been put together into one game “LOTTO 6/49” (with two draws and one rollover-Jackpot). The low sales of Wednesday Lotto have been reinforced by this measure. Regarding the Jackpot behaviour, WestLotto always notes that the quantity and participation of the players rise according to the Jackpot and drop back to the previous level after the Jackpot phase. This dependency on the Jackpot size is reinforced by an in-depth analysis of the Jackpot players: Almost one in six people (about 17% of these players) only played LOTTO 6/49 if the Jackpot exceeded € 10 Million. Finally, we would like to mention that WestLotto is currently striving to optimise the lottery tickets for the customers. We have learned from customer surveys that the readability of the grids often causes problems when filling in the ticket, especially for older people who represent the majority of our players (50% are 50 years and older). Therefore, we have developed a new lottery ticket with different and clearer font types and contrasts in line with the latest state of technology. The lottery ticket has then been evaluated and optimized by an expert group which deals with user-friendly products and services every day. As soon as the results of the experts are available, the ticket will be updated according to the recommendations of the experts and will finally be sent to the customers in a survey for ultimate evaluation. 9 NEWS 34 SEPTEMBER 2010 Put yourself in the picture att the th World Lottery Association 2010 Convention and Trade Show Register now at wla2010.com The World Lottery Association 2010 Convention and Trade Show opens in Brisbane, Australia, in October. Secure your place now at www.wla2010.com 6QRUNHOOLQJDW7DQJDORRPD5HVRUW0RUHWRQ,VODQG4XHHQVODQG1HWZRUNLQJGD\YHQXH ,PDJHFRXUWHV\RI%ULVEDQH0DUNHWLQJ Please go to www.wla2010.com for more details 10 NEWS 34 SEPTEMBER 2010 IN BELGIUM, OPTIMISING DIRECT “NON-COMMERCIAL” CONTACTS WITH PLAYERS CREATES SATISFIED CONSUMER COMMUNITIES A few years ago, The National Lottery’s Marketing, Legal and Sales Departments set up various means for measuring and ensuring player satisfaction. THE LEGAL DEPARTMENT set up a “Contact Point”. This contact point assembles the players’ complaints, answers them, and if necessary introduces action plans for remedying the existing problems. Over the twelve months of 2009, the number of complaints recorded by the Contact Point was low in relation to the high number of scratch and lottery games. It therefore clearly appears that the Contact Point’s answers to each complaint are considered to be satisfactory by the players and thus fully meet their concerns. The Contact Point enables the relationship of trust with certain players to be restored. THE MARKETING DEPARTMENT, throughout the year, conducts various surveys in order to determine the perception of our games and our advertising campaigns by our players and by non-players, as well as player satisfaction with respect to the National Lottery’s package (range of games, distribution channels, and so on): Usage & Attitude, Advertising Campaign Before & After Tests, and Customer Satisfaction. A Concept Test research is also conducted when the games are developed or altered. Player information and the development of consumer loyalty are also at the heart of our objectives: The annual report provides that information and the electronic newsletters maintain the link between the players and our games. Moreover, the Marketing Department respects the sectoral ethical and responsible advertising code for companies that organise lottery games. This code has been drafted by the National Lottery in consultation with the EAJ (Ethical Advertising Jury, advertising’s self-regulating watchdog in Belgium). The reinforcement of the Public Relations unit, part of the Marketing Department, promotes enhanced transparency in our public communications. In this spirit of contact with the players, a new position has been created, namely “Marketing Support, Consumer Dialogue & Quality Control Specialist”. The objective is to optimise the direct “non-commercial” contacts PLAYERS’ SATISFACTION with the consumer via electronic channels in order to create satisfied consumer communities. The Marketing Department is also involved in providing answers to the players’ questions at the Contact Point. These questions come in many different forms and concern the draw procedure, the lottery game result statistics, the mechanics of the games, the taxing of the wins, the special jackpots and draws that are organised, and so on and so forth. Many players also come up with various game suggestions. THE SALES DEPARTMENT provides its distribution channel sales outlets with a series of guidelines for the purpose of ensuring player satisfaction: Code of conduct for the organisation of jackpots, sales outlet training in a centre especially designed by the National Lottery, and regular sales terminal maintenance reminders in order to ensure that the tickets are perfectly legible. ‘Mystery Shopping’ exercises are also conducted in order to check that the prohibition of selling to minors is being observed. The satisfaction level of the National Lottery’s players represents an objective linked to obtaining the collective annual bonus. THE RESEARCH & DEVELOPMENT DEPARTMENT conducts market research in order to determine the strategy for each new product launch. Monitoring the international product trends represents a means of meeting player satisfaction by developing new game mechanisms. THE IGS UNIT (Interactive Gaming System) has started the new on-line gaming platform in March 2010. A satisfaction survey was conducted beforehand on a representative sample in order to ensure that the website was as user-friendly as possible. Other surveys have been conducted in order to ascertain how the players behave on the Internet platform and to adapt it in order to ensure player satisfaction. A Call Centre has also been set up in order to answer all the consumers’ questions. Other surveys are envisaged during 2010 in order to measure player and non-player satisfaction alike. 11 NEWS 34 SEPTEMBER 2010 PLAYERS’ TRUST – A PRICELESS ASSET FOR SISAL The growth in the gaming market over the past few years has afforded us an opportunity to considering the offer of new products developed in response to the changing needs of Italian players. A close analysis of these new trends has shown that those needs vary widely depending on the individual profiles of players. For Sisal, this has basically meant that, alongside its traditional products, there is a need for constant innovation by developing new products. This has been the case with “Vinci per la Vita/Win for Life” and with a wealth of online games, which are enjoying great success with the public. We are also developing new entertainment methods based on a new retail concept, in which players’ enjoyment of their own individual, secure and pleasurable space is combined with leading-edge technology to achieve a fun game environment and heightened social relationships in a typically Italian style. Loyalty is another desired goal. A player is loyal when he or she places trust in a brand and its products. This trust is a priceless asset for the company—an achievement that takes years of hard work. Sisal has built up its success over 60 years of operation, continuous innovation and knowledge of its players. It was Sisal in 1946 that initiated the modern gaming industry in Italy, inventing the Sisal pools coupon, which later became “Totocalcio”, the first major Italian pool game now famous worldwide. Today Sisal is among the world’s ten leading lottery operators and is continuing on its path of innovation by introducing enormously successful games such as “SuperEnalotto” and “Vinci per la Vita/Win for Life”. Sisal is also recognised by the Italian public for its inherent qualities: its serious approach, its solidity and its deep roots in Italian territory. In the collective imagination of Italians, it stands for the gaming world par excellence. Better communication comes from a mix of several ploys: Marketing, distribution (Sisal has reinforced its distribution channel with over 35,000 POS), and close attention to responsible gaming operations. It is also seen as fundamental that communication should be two-way, establishing a dialogue with the players and constantly listening to their requests, needs and preferences. Over the past few years Sisal has launched major information campaigns with the aim of bringing product news to the public at large and reinforcing the Sisal brand. This approach has given our products great visibility. Another front to which Sisal devotes a great deal of effort is that of Responsible Gaming. Sisal has launched a cross-media campaign that, together with other awareness-raising activities, is directed towards informing players and encouraging responsible gambling behaviour. We do not neglect any channel, but adopt a multi-media approach, using as the key points of contact with the end customer both the traditional media such as TV, press, radio, posters, as well as events and sponsorship, and also the web, the point of sale and new forms of less conventional communication. PLAYERS’ SATISFACTION 12 NEWS 34 SEPTEMBER 2010 Sisal Match Point, the company within the Sisal Group that manages horse and sports betting, offers online gaming accounts into which players can make cash deposits and start playing immediately. The gaming account is regulated by law and is a virtual player card, always available, convenient, secure and easy to use. The same player card can be used for all the other Sisal online games such as poker, skill games, Bingo and also “SuperEnalotto” and “Vinci per la Vita/Win for Life”. Any wins are credited to that account. The account can be opened over the Internet, but also at any Sisal point of sale. This online offer presents constant promotions, so that players can take part in several consecutive competitions or games, with opportunities to win attractive prizes. By keeping players interested in the game mix, the Sisal gaming platform becomes the select gaming choice. On the subject of services in a more general sense, it should not be forgotten that our players can also call upon more than 340 active services to meet their everyday needs, such as paying taxes and utilities bills, recharging their mobiles and making practical, speedy and secure purchases of telephone cards. All these services are available at the Sisal network points of sale and managed online through the gaming terminal. As regards the national toto digital games, such as “SuperEnalotto” and “Vinci per la Vita/Win for Life”, we have conducted in-depth research that has demonstrated how players’ tastes are changing. For example, players are looking for larger wins and new forms of entertainment, as well as the possibility of spreading a win over a number of years. Sisal always keeps a close eye on the evolution of gaming trends, allowing the company to successfully develop products that match the expectations. A typical case has been “Vinci per la Vita/Win for Life”, a game offering large numbers of wins and also the first game in Italy to promote the concept of a reward in the form of an income. Upon the request of the Italian Government, a game formula was to be created to provide aid to the communities impacted by the earthquake in the Abruzzo region, in the form of payment received from the entire tax on ticket sales or 23%. Special attention is given to enhance what those sales points recognise as being high level services: Contact Center, Logistics, Internet Services, and more. All the corporate Business Units at various levels are working actively to transcribe the market trends into products that match players’ expectations. Also, we have set up special focus groups with our principal retailers to discuss all the issues associated with product innovation. To maintain a constant quality in our services, we have recruited over 100 new people in 2009 to reinforce the management team, especially in the commercial, marketing and online areas. The attention paid to security takes the form of the adoption in full of the Responsible Gambling programme of the monopoly authority, the Amministrazione Autonoma dei Monopoli di Stato (AMMS), which has led to the outcome of designing and adopting the slogan “Play it right” [“Gioca il giusto”] to stress the need for a careful, alert approach to gambling. Another important security point has been the “18+” mark, reinforcing the message that games are not permitted to underage players. We have also launched a series of awareness measures aimed at players and POS managers, and we are extending the initiatives in this area even further. Sisal makes a very careful selection of the sales network and the managers of points of sale, investing in their training on the subject of Responsible Gambling through the Sisal Academy, an actual training school for future POS managers, so that they can offer a consistently efficient service. Sisal supports in-house training for its employees to foster the development of a more mature mentality as regards the gaming sector. The POS operators in the Sisal network regularly notify us of the public’s perception of our products. PLAYERS’ SATISFACTION 13 NEWS 34 SEPTEMBER 2010 TO THE FULLEST SATISFACTION IF PLAYERS ARE SATISFIED, THE AUSTRIAN LOTTERIES ARE TOO PLAYER SATISFACTION AND ADAPTATION OF OUR GAMES TO THE WISHES AND NEEDS OF PLAYERS ARE AN IMPORTANT CONCERN TO US. FOR THIS REASON, THE AUSTRIAN LOTTERIES DO REGULAR CUSTOMER SURVEYS, ARE IN CONSTANT TOUCH WITH THEIR DISTRIBUTION PARTNERS, USE STATE-OF-THEART TECHNOLOGY AND ORGANISE EVENTS ON “RESPONSIBLE GAMING”. Once a year, the so-called “Gaming Monitor” is commissioned. On the one hand, the survey aims at identifying what is in general important to customers in gaming, such as issues of security, amounts wagered, comprehensible rules or societal aspects. On the other hand, the survey also looks into how well the individual products of the Austrian Lotteries are accepted, and what the specific demands of the respective target groups are. Moreover, the Austrian Lotteries also launch qualitative surveys on certain games and their impact or advertising. In this context, participants are polled for their opinion on appeal and image, on recall or brand impact. The outcome of polls and surveys help us develop our products and assist in designing and adapting them in accordance with customer needs. State-of-the-art technology and the latest online terminals significantly enhance customer satisfaction. The fans of lotto “6 out of 45” have enjoyed the game for 24 years, and they are very happy with it. © Andreas Friess © Peter Svec PLAYERS’ SATISFACTION 14 NEWS 34 SEPTEMBER 2010 Individual attention to the wishes of customers and interested parties, in particular as regards their expectations in terms of privacy and data protection, is an overriding principle of the Austrian Lotteries in the way they handle data. Special requirements specific to data protection, such as the fundamental permissibility of all data processing, the earmarking of data collections, and considerations of transparency for those concerned are fully taken into account. Although Austrian businesses are under no legal obligation to appoint a data protection ombudsperson, we have had for a long time an employee with full-time responsibility for this task. He helps reconcile the legitimate wishes of our customer for the protection of a person’s rights, and he business needs of customer-oriented marketing. We are a reliable partner of our distributors, supporting them by offering active support from our sales reps or innovations and an expanded range of games. Sales reps visit the retailers they have been assigned to every six to eight weeks on average to support them with advice. Moreover, the Austrian Lotteries foster the development of their distribution partners by means of regular training and assistance in terms of sales strategy or technical novelties. For their customers, the Austrian Lotteries are a dynamic and modern enterprise that spearheads technical developments. State-of-the-art online terminals, two independent computer centres and the latest technology ensure that games are trustworthy, transparent and secure – much to the benefit of customer confidence and satisfaction. Player satisfaction goes hand in hand with player protection. The Austrian Lotteries set great store by players’ perception of being well taken care of and this includes information on the dangers of gaming and protection from them. As we seek to offer the best possible training to those employees who are in direct contact with customers, the Austrian Lotteries and Casinos Austria jointly organise the Responsible PLAYERS’ SATISFACTION Gaming Academy every year. The event is a special forum for scientists and scholars, where national and international experts from various fields engage in the topic of responsible gaming and enter into a dialogue with employees of the Austrian Lotteries and Casinos Austria. CEO Dr. Karl Stoss opening the 7th Responsible Gaming Academy organised by Casinos Austria and the Austrian Lotteries in May 2010. © Österreichische Lotterien Ever since their formation, the Austrian Lotteries have had a customer service centre in place: it is a central one-stop shop for customers, retailers and business partners of the enterprise. This is where customers and distribution partners get extensive support (personally, by phone, in writing or by e-mail), and queries, which cannot be answered on the spot, are passed on to the persons in charge. Martina LANDSMANN Günter ENGELHART Austrian Lotteries/Corporate Communications 15 NEWS 34 SEPTEMBER 2010 A LIFETIME OF CUSTOMER CARE FOR SKL BIG WINNERS The Süddeutsche Klassenlotterie (SKL) is a traditional class-lottery and is based in Munich. Ticket sales are exclusively handled by sales organizations, which currently include about 100 licensed state lottery agents and 940 official points of sales. These sales agents normally are in contact with their customers at least once a month usually in writing. 97 % of the turnover is generated through direct marketing. Due to this sales structure, the SKL does not have access to all of its clients’ data on the players, but the sales partners do. This lottery data is exceptionally extensive and forms the basis for classic CRM: The background of the players is documented with their precise address, age, gender and the type and amount of their game participation. In addition to this database, further information about the players’ habits can be obtained: duration of the game participation, readiness for up und cross-selling offers, behaviour after winnings and information about the potential for reactivating game participation in case it had been ended. By observing the gaming behaviour, problematic behaviour can be analyzed and studied. The sales partners take advantage of this data as far as legally permitted. Besides this, SKL regularly carries out quantitative and qualitative market research on 7 levels. Particulary noteworthy are measures that are carried out directly with the customers and especially with the big jackpot winners (“SKL-MillionärsClub”/“SKL-Millionaires Club“). PLAYERS’ SATISFACTION LEVEL 1 involves (for all games) broad questioning of the general motivation for the participation in games of chance, lotteries and the attitude or needs of the different types of players. The results established through market research and surveys of the players’ wishes and requests are taken into consideration, with regard to the planning of the product and market communication. That information enables SKL a strategic observation of any potential in the advertising environment as well as an ongoing evaluation of our game offer. On LEVEL 2, SKL carries out a yearly player survey, only with active players, in the framework of an already existing household panel. Thereby, besides the questions on the general consumer mood, special questions are asked about the SKL game offers, the lottery handling and the satisfaction with customer service by state lottery agents and points of sales. Another method to learn more about the players and their level of satisfaction is to research the real winners on LEVEL 3. With two product lines, the SKL EUROJOKER and the SKL TRAUM-JOKER (“SKL-DREAMJOKER”), only non-cash prizes such as high-end cars or travels can be won. Shortly after a win, inquiries about players’ satisfaction evaluate various aspects, based on a standard questionnaire. As regards the content, winners are asked about the attractiveness and quality of the prizes, the SKL products, the customer service and handling of the prize payment by lottery agents 16 NEWS 34 SEPTEMBER 2010 or points of sales, the game participation as well as the socio-economic aspects. The gathered information is funnelled into the future game planning for the selection of new non-cash prizes and services. On LEVEL 4, SKL also carries out interviews/surveys of their sales partners and points of sales. This is mainly done by phone to analyze customer acceptance and relevance with regard to the advertising methods used to sell SKL products. The results of the survey are then reflected in the planning and future creation of advertising approaches. On LEVEL 5, customer behaviour is also analyzed by the sales organisation itself. The available data and the player/game behaviour can thereby be evaluated over a long period. The knowledge can be used in combination with geo marketing to design offers aimed at specific target groups or up- and cross-selling offers. Finally, often a questionnaire is sent to the player or a phone conversation takes place after a cancellation has been received to try to find out the real motivation behind that decision to end his/her participation in a game. Sometimes this is a key-approach to gain back the customer. Customer satisfaction often reveals customer dissatisfaction. To intervene here, the SKL has, on LEVEL 6, set up a customer service centre in Munich where all questions and complaints are centralized, and then clarified and answered. Afterwards, the subject of any dissatisfaction can be discussed with the concerned sales agent and improved on. IN THIS CONTEXT, THE “PREMIER CLASS” ON LEVEL 7 ALSO CALLED “SKL MILLIONAIRES CLUB” SHOULD BE HIGHLIGHTED. Numerous SKL shows candidates have won millions in the TV Shows “Seeking Millionaire” and “5 Million SKL Show” seen live by millions of TV viewers, showing that the dream of a millionaire’s life can eventually come true for SKL players. Therefore it is important for SKL that these millionaires, who also receive their prizes in public during a drawing show, are cared for exclusively. The SKL is the only lottery in the world to offer special assistance to its millionaires, not only right after handing over the winnings, but also for a lifetime in the form of continuous advices and practical support. This assistance helps the winners with their dealing with the media as well as in the field of asset investment and taxation. For this reason, SKL founded in 2005 the “SKL Millionaires Club”, which is chaired by a former winner of a show. PLAYERS’ SATISFACTION THE “SKL MILLIONAIRES CLUB”, WHICH MEETS ONCE OR TWICE A YEAR, IS A POPULAR EXCHANGE PLATFORM IN THAT IT REPRESENTS AN EXAMPLE FOR TRUE “WINNERSCOMMUNITY”, BUT IT IS ALSO ACTIVE IN “CORPORATE SOCIAL RESPONSIBILITY”. Meetings organized by SKL allow us, the winners of SKL Millionaire Shows and the general public to make contact with each other to exchange their experiences, share financial advices but most importantly form friendships. Furthermore, depending on the event, a certain sum earmarked for a good cause will be donated. During the official part, the press is also admitted thus permitting the image of lottery millionaires to be updated / revised. It is often suggested that winning millions changes one’s life dramatically. Lottery advertisement worldwide contributes to this impression. In our view, this is the wrong image. From all the intensive ongoing contacts with the “Millionaires Club”, we have come to the conclusion that winners, even after winning several millions, basically remain the same persons as they were before. However, winning millions makes them more relaxed and more content by allowing them to continue doing, perhaps more intensively, all those things which have always been important to them, or even discover and develop new facets in their lives. It is never only about senseless, pretentious spending of money. The winners are also socially more responsible than the image often given by the lotteries. What it means for our communication is that we should represent and portray the aspects of winning and luck in a totally new quality. As a result, for the first time SKL has presented in Germany a “Tag des Glücks” (“Day of Luck and Fortune”) this May. On this day we have portrayed different aspects of luck/fortune/ happiness and in the evening during a large live event, we have created a new Drawing Show for this “Day of Luck and Fortune” featuring another winner who will become a new member of the “SKL Millionaires Club”. A specific service presented by SKL is that every winner must be informed personally about his winning in writing either by his lottery agent or his point of sales. SKL sales outlets also carry out different customer loyalty and retention programs such as mailing of a monthly newsletter or a customer magazine. SKL furthermore offers services to all players, such as announcement of the current draw results in the media, via Teletext, SMS and online as well as the creation of an official winners list, which is sent to the customers every month. This is another way to keep regularly in touch with our customer base. 17 NEWS 34 SEPTEMBER 2010 QUALITY MANAGEMENT OF COMMUNICATION: KEY IN CUSTOMER SATISFACTION AT NKL The mystery e-mail analysis was based on regular e-mail contacts. For this purpose, typical customer enquiries were sent to the NKL by e-mail. The original enquiry, the confirmation lottery e-mails and replies were documented in detail and analysed according to modern standards. Besides the so-called hard factors such as for example response time and accuracy, subjective factors also played a role: friendliness, readiness to provide information, and much more that give the lottery e-mail a personal touch. Ulrich Kudlek, Head of Customers Service at NKL. The German Nordwestdeutsche Klassenlotterie (NKL), based in Hamburg, receives numerous enquiries from players as well as potential customers every day, thus requiring the Lottery staff to manage quick replies while ensuring full consumer satisfaction. Most enquiries are done via e-mail, which are processed and answered by a small team in the customer service department. In order to better serve its clientele, the NKL has established high quality service criteria, whose compliance is monitored. On a regular basis, the Lottery conducts reviews of these service requirements and if necessary, adapts them to fit changing consumer expectations as well as market conditions. As e-mail communication at the NKL has been steadily growing, so have customers’ requirements and expectations. In order to improve and secure customer satisfaction, and fully respond to new customer orientation, it was decided recently to hire an external institute to carry out a “mystery” email survey. Thereby, based on objective criteria and comparison with competing organizations, a neutral body should examine if and particularly how the NKL responds to e-mail enquiries in order to identify strengths as well as potential for improvement. The aim of the study is to measure the quality of the service by rating the response time as well as the hard and soft factors of e-mail correspondence. PLAYERS’ SATISFACTION The test project was carried out in five phases: • Development of actual and everyday scenarios • Creation of e-mail enquiries with sample replies and level of expectations • Test implementation, e-mail documentation • Processing and analysis of the data • Presentation of results and recommendations to the management The conclusion of the test evaluation showed overall good results in all test fields. It is therefore primarily essential to maintain a high level of service through the required organisational and personnel requirements and to regularly improve where possible. 18 NEWS 34 SEPTEMBER 2010 ONCE: TRADITIONAL CUSTOMER RELATIONS AND NEW COMPLEMENTARY SALES CHANNELS The Spanish market has entered a stage of maturity due mainly to difficulties reaching new customers and products offered through specialized sales channels. In the upcoming years, what will be at stake for ONCE in terms of customers’ relation will be, first, to satisfy the regular customers by emphasizing even more their contribution to good causes as a main reason to play ONCE, and also by offering more possibilities of easier number selection as well as more attractive products. In consequence, we are trying to provide a more pleasant game environment and elements of surprise and variety in our game mix by presenting games, unknown until recently to the Spanish market, such as Keno. Second, make every effort to implement products where the customers are. In order to achieve this objective, ONCE has started to market its instant and active products via new channels and in stores in accordance with new ways of mass consumption: tobacconists, gas stations, shopping centers, newspapers stands, etc. Obviously, the way to bring to mind our products is through multimedia-based promotional campaigns: TV ads, POS advertising, radio and Internet presence. We have also taken a new step in our relationship with customers by participating in different social networks thanks to the latest communication PLAYERS’ SATISFACTION technology. We have an active sales channel on Internet at www.juegosonce.com and a window in the social network Facebook, called “juegosonce” in which we are trying to communicate with our clients and tip the knowledge gained by experience and training in the lottery world. Nevertheless, the people at the core of our relationship with customers are ONCE vendors. There are the disabled or blind persons who are the very reasons behind the organisation’s existence and its constant search for ways to improve the quality of life and assistance to people with disability. The ONCE vendor is a person living the daily grind in our cities and villages. His mission also is to be in direct contact with our clients, receive their suggestions, support the collectivity and offer dream and hope through our products. The ATL communication and the sales networks are the two most important keys in the relationship with clients in addition to Internet. Also, the challenge for ONCE in the next few years will be essentially to strengthen its responsible game operations. To this effect, we have reinforced the training of employees and detailers as well as our relation with interest groups. The implementation of responsible game and security standards are two benchmarks that will ensure maximum quality for our services. 19 NEWS 34 SEPTEMBER 2010 CUSTOMER SATISFACTION, A FUTURE CHALLENGE AT NORSK TIPPING The Norwegian gaming market is in decline. Nevertheless, Norsk Tipping operations have great success with a growing market share, allowing us to have regained our position as the market’s dominant player. The main drivers behind this revitalization are for one the closure of the traditional slot machines operations, and then the implementation and rise of a new VLT-based offer with Norsk Tipping as the sole operator. Our mandate is to present attractive games in a secure manner to the Norwegian population, so in this perspective, customer satisfaction is more important than ever. We deal with customer satisfaction in many ways based on a very competitive strategy. THE PLAYER’S CARD: For the last years we have managed to evolve our player’s card to it’s third generation (Smartcard). In 2009, this card played a key role when we introduced our mandatory registered gaming feature for all our games, except scratch tickets. In addition to offering high security and total age regulations, this card gave us a tremendous opportunity to improve our relations with our customers. Through our costumer data we have accurate information about the single customer’s gaming behaviour and preferences. Today 56 % of all Norwegians are paid subscribers to have their own customer card. REGULAR MARKET RESEARCH: Annually, Norsk Tipping carry out studies to measure the customer’s satisfaction on our products and services. These studies, linked with a range of other market researches, give Norsk Tipping a unique knowledgebase from which to develop new actions thus aiming to improve satisfaction levels and develop player incentives to improve their relationship with our brand. MULTICHANNEL CUSTOMER DIALOG: Any improvement must be communicated to increase the performance-to-satisfaction ratio: Newsletters, segmented by categories, are regularly e-mailed to customers; SMS messages are also sent and regular appearance on social networking sites such as Facebook and Twitter has become essential in our efforts to communicate with customers. BUSINESS DEVELOPMENT: To improve our interaction with customers and better answer their needs, we are focusing on improving our products through innovation, new alternative distribution channels and more valueadded services. PLAYERS’ SATISFACTION 20 NEWS 34 SEPTEMBER 2010 DIALOGUE WITH PLAYERS: A REWARDING NECESSITY FOR THE ROMANIAN LOTTERY A continued dialogue with players offers the most accurate benchmark for improving the quality of our services and products together with increasing the number of clients. Whether it is about customers’ expectations and suggestions or their need for information, our Lottery is constantly concerned with improving communication with players. While we financially sponsor social activities to respond to community needs, we have specifically designed a company policy and targeted product mix to satisfy our players’ precise requirements. In order to get an accurate picture of the public perceptions, our Lottery carries out, at least once a year, a market research. By closely monitoring the players’ satisfaction, our management team can take appropriate actions in order to meet players’ needs. As such, we have been asked about upgrading lottery agencies and we are in the process of rebranding our entire retail network. With this action, we are creating a friendly and modern environment, improving playing conditions and communication with players within each agency. and regulations, the players have access to special guides either in lottery agencies or on our website www.loto.ro. The website is constantly updated and improved so it can provide detailed information regarding our activities and products. The feedback from our players is positive and encouraging and we have registered a growing number of visitors on the website. In order to meet our players’ expectations, we have also created a specialized website: www.pariloto.ro, about the Parillotto, a fixed-odd game. Another source of information for our players and effective way of communication is our magazine, Loto Prono, which is edited by our company and sold in all lottery agencies. In 2009 the magazine celebrated its 3,000th issue. Our relentless concern to meet the players’ needs is reflected in the high level of degree in awareness and confidence the Romanian public has for our Lottery. Based on the latest marketing study, our Lottery is considered the most valuable Romanian brand. Special focus is given to provide proper training to our sales people in Lotto agencies with special courses. Also, to ensure complete information about lottery products and understanding of the gaming rules PLAYERS’ SATISFACTION 21 NEWS 34 SEPTEMBER 2010 LOTERIJA SLOVENIJE: A SECURE AND QUALITY CUSTOMER SERVICE Every 2 years, Loterija Slovenije contracts a company to conduct a market research, whose data are used in the development of new products and improved service. In addition, we rely on mystery shopping to analyze public perception of the quality of our services and players’ satisfaction with our retail shops, our sales staff, etc. We then adapt our services accordingly to improve our operations and get closer to our players. Independent laboratories also test our products before their placement in the market. Plus, we organize focus groups and use their findings and recommendations to recalibrate our services. Internal research surveys are conducted more often, involving both our retailers and our players. They determine the level of satisfaction among all groups and allow us to obtain useful information about players’ needs. Every two weeks, we also publish on our website a questionnaire asking our players to rate some of our current activities: certain games, their gaming preferences, socially responsible gambling, etc. These data are taken into account when we plan future games and every time we evaluate the value of our customer service. SMS and email messages keep players in the loop; of course, traditional media and Internet advertising is used and from time to time, we organize special gaming events for the players. As for future activities, we are looking into players’ loyalty projects such as e-CRM (for online players), which will be extended to all players. Our mission is to come closer to our players to better understand and satisfy their expectations. Therefore much attention is devoted to the quality and safety of our services and the professionalism of our vendors. Another milestone has been the creation of a Customer Relationship Department where players can access virtually any information related to Loterija Slovenije. We acknowledge the importance of social responsibility and this feature is woven into all levels of business management and processes as well as in our business ethics. We are dedicated to balance both our players’ expectations and the protection of vulnerable groups. Of course, we depend on our POS because our retailers are extremely important in acquiring firsthand detailed information on market behaviour and are a key element to help us design the most efficient customer approach. Following the introduction of Internet games in March 2010, we also process information on e-players to prepare tailored messages for them. Our surveys are extremely detailed and according to their results we can upgrade or totally change our existing game offer. Our communication channels involve our players, our employees as well as our retail network and make extensive use of every marketing effort: At POS, this is the staff’s personal contact and printed materials; on Internet, we deal with e-players but on Intranet, we make sure our sales people offer the most informative and efficient data to our players. We also rely on our Call Centre for direct contact with players. PLAYERS’ SATISFACTION 22 NEWS 34 SEPTEMBER 2010 A LOYALTY CLUB FOR IMPROVED CUSTOMER SERVICE AT SAZKA SAZKA is facing hundreds of licensed operators, providing all sorts of games of chance and sports bets, throughout the Czech Republic. Furthermore, a number of Internet operators are now active on the market illegally, offering full games portfolio. To counteract this competition and maintain its market share, SAZKA makes all efforts to understand and satisfy its player base. SAZKA has been conducting marketing surveys that focus on players, market potential, as well as competitors and its own advertising campaigns, for many years. We conduct qualitative as well as quantitative marketing research: We seek and implement modern research techniques such as online blogs, ad spot analyses by eye tracking, thematic focus groups with providers from our distribution network, ethnographic methods of gaming behaviour research, in-depth interviews with specific player groups, etc. Analysing the development of the timelines of data from marketing research, we monitor changes in player preferences and shopping behaviours. Accordingly, we adjust our product offer of both lottery and non-lottery products. As a result, we added numerous products to our portfolio over the past years such as fast-draw games – the five-minute Keno, Lucky Lines and Dice, VLT terminals, Internet odds betting, as well as a number of non-lottery products such as mobile phone top-up, bill payment and ticket sales services. We communicate with players at POS (TV presentations, printed materials, staff), on the Internet (via the www.sazka.cz websites) and through promotional campaigns (press, TV, radio, POS). Last year, we introduced another communication tool: The Loyalty Club, which marked a fundamental change in the quality of our customer service. At first, the Club was primarily designed for players of Internet odds betting and over time its scope expanded to include players of conventional lotteries and non-lottery customers. Through the Club, we evaluate the data as to customers’ purchases to help us further improve our services. With the introduction of the Loyalty Club, we had to plan a huge training campaign for all our retailers to teach them about the Club and how to use the new terminal application. Customers who are members of the Club earn loyalty points for their bets. These points may be used for more betting, for attaining better odds, for shopping in the e-shop or for purchases at e-auctions. Customers also earn loyalty points for participating in marketing surveys, for bringing a new member to the Club and for certain other events. PLAYERS’ SATISFACTION 23 NEWS 34 SEPTEMBER 2010 AT CAMELOT, THE CONSUMER IS BOSS As operator of the UK National Lottery, Camelot’s strategic goal is to maximise returns to the Good Causes through selling lottery games in an efficient and socially responsible way. Camelot manages the lottery infrastructure, provides services for players, runs a 28,500-strong retail network and the world’s most successful lottery website. As well as offering a wide range of draw-based games and Instant Play games, Camelot also offers its players innovative new ways to play National Lottery games, including the pioneering National Lottery ‘Fast Pay’ card, which lets players store their favourite numbers or use a Lucky Dip option on a handy, re-useable card, and a groundbreaking Play by Text mobile phone service. A national institution, the National Lottery is part of the fabric of life for millions of players in the UK. Around 70% of the country’s adult population play on a regular basis. Therefore, as a responsible operator, maintaining public trust is of utmost importance for Camelot, as is maintaining a constant dialogue with players. Through forums and surveys, together with player feedback from its dedicated customer service centre and winner services team, Camelot is able to gain valuable insight into the gaming habits of its consumers. The company’s business mantra – the consumer is boss – lies at the heart of Camelot’s long-term strategy for growth. Responding to consumer needs is key, and Camelot’s strategy focuses on: strengthening the National Lottery brand to offer universal appeal to all types of consumer; enhancing the product range and continually diversifying its products to better satisfy customer need; giving consumers easy access to games wherever and whenever they want to play; and building and maintaining a dialogue with consumers. The views of consumers play a major part in formulating National Lottery products and services. For example, UK Millionaire Raffle – an enhancement to the ever-popular EuroMillions game that guarantees a £1 million prize to one UK winner every single week – was launched in 2009 because players PLAYERS’ SATISFACTION indicated that they wanted more UK winners and bigger jackpots. It is important for Camelot to maintain the trust of players and the wider public. Its games are designed to be fun but also safe, and player protection lies at the heart of the company’s game development. Working with respected social scientists, academics, market researchers and problem-gambling bodies such as GamGard, Camelot has pioneered a research and design tool – the Game Design Protocol – which is used to measure a new game according to its play potential among vulnerable groups – namely those aged under 16, low income groups and people with addictive tendencies. If there is a clear danger to any of those groups, Camelot will act accordingly to adapt, re-design or withdraw the game. Camelot’s strategy is to encourage consumers to play often but to spend relatively little, a strategy which means that despite being the sixth largest lottery in the world in terms of total sales, the UK National Lottery is just 64th in terms of sales per capita. The company works hard to ensure that its consumers are aware of game mechanics and odds of winning a prize. Rules and procedures for each game are detailed in an in-store Players Guide, on play slips as well as on the National Lottery website. Camelot also offers a dedicated customer service centre for players: in 2009, the team dealt with 94% of the 130,000 calls made to the National Lottery player telephone line in 20 seconds or less. Camelot has also recently increased its use of digital platforms - digital billboards, in-store media screens, banner advertising, online and email campaigns to subscribers - to enhance its ability to communicate the right message to the right players and at the right time. Broadcast channels with smarter and more targeted messages are also part of a direct communication approach. Accounting for around 90% of total sales, retail remains the largest National Lottery sales channel and provides the biggest consumer touch-point. 24 NEWS 34 SEPTEMBER 2010 Each and every retailer acts as an advocate for The National Lottery and Camelot’s commitment to its retail partners remains at the forefront of its commercial strategy. Camelot provides retailers all the equipment, training and support packages they require, free of charge. Although Camelot plays no role in the allocation of funding to the Good Causes, it also works with the National Lottery Promotions Unit (NLPU) to effectively communicate to players about how money raised through National Lottery games is distributed, and to raise awareness of lottery-funded activity such as the London 2012 Olympic and Paralympic Games. The UK National Lottery creates around four million winners every week. A big win on The National Lottery can be life changing, and to help winners adapt to their new circumstances, cope with the excitement of a big win and the extra attention that it affords, Camelot provides a number of support services. Anyone who wins more than £50,000 receives a winner’s pack with information on legal, financial and practical matters. For winners of £350,000 or more, Camelot offers a range of support services including access to impartial financial and legal advice from independent experts, and practical guidance about lifestyle changes. No matter the size of the win, every winner has the right to remain anonymous and Camelot’s Winner Services team and Press Office works hard to advise winners on what to expect if they choose to go public. Support and advice are not limited to the period directly following a win and remain available for many years afterwards. creative; empowering to encourage individualism and independence; ownership - understanding the vision and goals of Camelot; partnership - working with all groups to maximise returns in a socially responsible way; passionate and accountable. Camelot’s strategy of responsible play, coupled with listening to its consumers and delivering a regularly refreshed portfolio of games and convenient new ways to play, is certainly paying dividends. A huge 92% of the UK’s population recognise The National Lottery crossed finger logo, and the most recent core brand metrics available for the 2009/10 financial year show that trust levels in The National Lottery brand remain high at 73%. Alongside a strong sales performance – last year Camelot delivered its second best sales performance (£5,451.8m) since launch, and the best returns to the Good Causes (£1,548.4m) in a decade – this helps to show that at a time when consumer confidence in many public institutions has been severely dented by the economic crisis, the National Lottery brand goes from strength to strength by offering the very highest levels of player satisfaction. The dedication of Camelot’s staff is also vital to the achievement of the company’s long-term strategy and its commitment to player satisfaction and maintaining player trust in the integrity of The National Lottery. The company believes it is important for the staff to understand how its values work in practice, so it has defined behaviours that embed these values into its day-to-day operations: PLAYERS’ SATISFACTION 25 NEWS 34 SEPTEMBER 2010 A SUCCESSFUL SPANISH PRESIDENCY PAVES THE WAY FOR AN AMBITIOUS BELGIAN AGENDA Since the second semester of 2008, a Council Working Group has been discussing the issue of gambling services in the EU. That is not new in 2010. What is however new is that, under the Spanish Presidency (JanuaryJune 2010), all EU Member States’ positions were aligned on some very key issues regarding the fight against illegal gambling. When we say “all EU Member States”, we mean of course “all except for Malta”. Under the lead of Juan Carlos Alfonso Rubio (general counsel of LAE), the Spanish Presidency aimed at a very ambitious goal, and achieved it: a common definition between the EU Member States on what is actually to be considered to be “illegal gambling”. After some very constructive exchanges in the Establishment and Services Working Party, Member States have amongst others indeed agreed on a common understanding of a shared definition of illegal gambling: illegal gambling may be defined as gambling in which operators do not comply with the national law of the country where the services are offered, provided those national laws are in compliance with the EU Treaty principles. Within the Council Working Party itself, even Malta seemed to agree with this shared definition. Later on, however, this seemed to have been a slip of the tongue, as the Maltese government presented a statement to the Competitiveness Council on May 25, in which it declared not to subscribe to the definition on illegal gambling as proposed within the Presidency Progress Report as this will apply “the concept of illegality to operators who may have been licensed by one Member State and not by another”. Moreover, in the same statement, Malta made sure to mention that it “has one of the most advanced regulatory regimes, which is in full compliance with European Union legislation, and has developed strong standards in this sector, primarily in the area of social responsibility”. We were not that surprised when we heard this, it confirms yet again that Maltese law schools teach a different kind of EU law than in the rest of Europe. In any case, it seems Malta has got itself quite isolated from the 26 other EU Member States and it doesn’t find any help in the recent case law of the Court of Justice of the European Union to back its position neither. Indeed, in the recent Swedish Sjöberg and Gerdin rulings, and Dutch Betfair and Ladbrokes rulings, the Court has confirmed that EU Member States are justified to restrict or prohibit the access to their market for foreign companies who operate on the basis of a license granted by the authorities of their country of origin. Furthermore, the Court acknowledged that a passive sales approach, whereby the games of a foreign operator are accessible to the consumers in another country – where he didn’t obtain a national authorisation to operate – through the Internet, can be prohibited as it undermines the general interest objectives of a restrictive gambling regime. In the Sjöberg and Gerdin cases, the Court added that the prohibition of promotion of the gambling services of private operators indeed reflect the objective of exclusion of private-profit making interests from the gambling sector and may be regarded as necessary to meet such an objective. LEGAL Philippe Vlaemminck 26 NEWS 34 SEPTEMBER 2010 BUT WHERE IS MALTA? document of the Commission, outlining the key questions regarding gambling in an EU context. It is expected to be published by mid November. Annick Hubert After the Liga Portuguesa ruling, at least 6 other cases have confirmed the same principles to apply to the gambling sector, all excluding mutual recognition and all prohibiting a passive sales approach. This case law has clearly made an end to the practise of gambling hubs like Malta and Gibraltar and leaves statements like the one made by the Maltese government in the Competitiveness Council completely void. The outcome of the German cases Markus Stoss, Carmen Media and Winner Wetten is expected to go in the same direction. These rulings will be delivered on 8 September 2010, exactly one year after the delivery of the ruling in the Portuguese case. All EU Member States, this time including Malta, have supported the intention of Internal Market Commissioner Barnier to publish a Green Paper on online gambling services. This Green Paper would be a consultation With the consultation document of the Commission coming up, it is an interesting momentum for the Belgian Presidency to streamline the discussions between the Member States in the Establishment and Services Working Group. At the time this article went to press, one meeting of the Council Working Party was already held under the Belgian Presidency. Like the Spanish, the Belgian Presidency is ambitious, an approach which is highly supported by the majority of the Member States. The Belgian Presidency will focus the discussions on three main topics: outlining the concrete problems regarding cross border gambling services (including the issue of white label sites, etc.), the role of the national or regional authority and the sustainable contribution of lotteries to society. only be considered to be a beneficial consequence of a restrictive regime, but cannot be a justification as such of a restrictive gambling regime. To emphasize the importance of the sustainable contributions of lotteries to society, the Belgian National Lottery will organise a conference on November 16, under the auspices of the Belgian Presidency of the EU. With these high level Belgian Presidency conferences, its ambitious agenda, and the Commission consultation on online gambling coming up, the second semester of 2010 promises to be a very interesting one for the gambling sector. By Philippe VLAEMMINCK & Annick HUBERT A separate conference will be organised by the Belgian Gambling Commission, under the auspices of the Belgian Presidency of the EU, on the specific role of the authority. The aim is to define essential tasks of the national or regional competent authority, in order to strictly regulate and control Internet gambling in all EU Member States. Moreover, for the first time, the Council Working Group will discuss the sustainable contributions made by lotteries to society. This is an important issue since the case law of the European Court of Justice has ruled that the financing of good causes can LEGAL 27 NEWS 34 SEPTEMBER 2010 “LOTERíAS Y APUESTAS DEL ESTADO” SPONSORED THE 30TH SPORTS NATIONAL GALA from sports, and more particularly from football”. He assumed that “our commitment, as a Government, is to develop this regulation and, within the framework of the Communities principles, to acknowledge this reality and to regulate it so that all the operators enter a legal framework”. Regarding the economic results of “La Quiniela”, Mr. Fernández pointed out that “during the first two months of this year, there has not been any decrease, but rather a growth”. He recognized that, “in itself, this fact is not outstanding. However, if you place it in the context we were talking about earlier, namely new games options, new operators, new methods of betting and a hard economic situation, I think that we can remain satisfied about it; at ‘Loterías y Apuestas del Estado’ in particular, we are”. Gonzalo Fernández, General Director of "Loterías y Apuestas del Estado" received the gold medal from Mari Carmen Izquierdo, President of the Spanish Sports Press Association. Last March 8th, the “Jameos del Agua” auditorium in Lanzarote (Canary Islands, Spain) welcomed the 30th edition of the Sport National Gala. Many political leading figures attended the event: the President of the Government of Canary Islands, Paulino Rivero, the Secretary of State for Sports, Jaime Lissavetzky, and the President of the Spanish Olympic Committee, Alejandro Blanco. Gonzalo Fernández, General Director of “Loterías y Apuestas del Estado”, main sponsor of the event, was also among the attendees. Mari Carmen Izquierdo, President of the Spanish Sports Press Association (AEPD), delivered some words during the lunch to point out that the AEPD Board of Directors had decided to grant the gold medal of the Spanish Sports Press Association to the General Director of LAE. Even if football is the main sport, many other sports also need support and fans. Thus, the collaboration of “Loterías y Apuestas del Estado” covers an expended area and not only the football world. “Our link with professional sport and the Professional League is significant and productive, nevertheless, our collaboration and economic contribution go to other sectors, like Olympic sport, financing of sports facilities thanks to funds we pass down to Autonomous Communities, Councils, Municipalities as well as to the young sportsmen’s world”. In parallel, “La Quiniela” is the best-known LAE’s sport betting, but it’s not the only one: Gonzalo Fernández reminded of the presence of “El Quinigol” and of horse betting, which improvement project, he claimed, is already in process. Moreover, he announced a renewed commitment with this sector in order to keep on supporting turf in our country. Gonzalo Fernández, thankful for this prize, mentioned the actual European context, where “new methods of sport betting and new distribution channels” have emerged. Moreover, inside our own territory, “Autonomous Communities like Madrid, Basque Country and others have promoted and are still promoting regulations and grant of licenses to operators that are running types of betting that come NEWS MEMBERS 28 NEWS 34 SEPTEMBER 2010 A NEW PRESIDENT & CEO FOR SZERENCSEJÁTÉK ZRT. and later became Director of that Department in Budapest. During this time, he acted as well as visiting professor at the School of Economics of Cegléd. Kálmán Szentpétery, CEO. The Hungarian State Holding Company officially appointed Mr. Kálmán Szentpétery, Doctor in Economics, as Chairman of the Board of Directors and as CEO of Szerencsejáték Zrt., this past June. Mr. Szentpétery is an economist who graduated from the Karl Marx University of Economics in Budapest. He has had an extensive professional career in the financial and economy fields, working for different well-known Hungarian companies. In 1976, he worked as Deputy Director of Operations Management for the Water Mining and Drilling Company in Cegléd. Between 1988 and 1996, he was appointed Deputy Director of Finance and Economy NEWS MEMBERS In 1996, Mr. Szentpétery was offered the position of Deputy General Director at the Budapest Wholesale Market Co. Since 1998, he has been working as External Member of the Budget Committee for the Local Government of Cegléd City. From 1999 to early 2010, he was CEO of the Commission Trading House and Pawn Credit Company and in 2000 he was also elected as Member of the Board of Directors of that company. Due to his in-depth knowledge of finances and economy, he was elected Member of the Presidential Commission of “Aranykor” - a Pension Fund, in 2002 and since then he has been actively involved in the work of the commission. Also, his strong interest in sports brought him to become Chairman of Restart –VSE, a water polo division in Cegléd. Mr. Kálmán Szentpétery explains his vision to his new post at Szerencsejáték Zrt.: “Managing a lottery company brings a new challenge for me. I think and believe that organizing any lottery games is based on faith in the gaming organization and on the fact that players’ confidence in the Lottery must never be jeopardized under any circumstances. It is my pleasure to become an active member of the great lottery family, and I am absolutely determined that Szerencsejáték Zrt. will work with EL in accordance with the Association’s principles to ensure the integrity of the Responsible Gaming Standards.” 29 NEWS 34 SEPTEMBER 2010 INTRALOT MEETS THE PLAYERS NEEDS GLOBALLY OBJECTIVE The kernel of all marketing activities is the player. INTRALOT’s marketing is shaped having as a core objective the satisfaction of players’ needs, respecting always the principles of responsible gaming. But what is meant by players’ satisfaction? Player satisfaction is an emotional state that shows how games and services supplied by a lottery, meet or exceed players’ expectation. In the lottery business the player’s overall emotion depends on several basic factors, which have to be always examined separately. The products / games, the retail network, the communication / advertising consist of such factors which require constant monitoring and development in the environment where the lottery operates. GAME Game is the core element of a lottery. Through a game players all over the world buy chances to fulfill their dreams. As with all games that we are playing, our main goal is to win and share this with others. While the first prize has always been the most significant element of a game, there are players who find satisfaction in other elements such as the easiness of play, the excitement or even simply the mechanism of a game. Table 1: Primary Reasons for Participating in a Game Researched country Primary Reasons for Participating in a Game Italy 82% South Africa To win 87% Turkey money 75% Vietnam 72% Morocco 64% Source: Intralot Researches RETAIL NETWORK Research has shown that the players are loyal to a point of sale that is near places visited during daily routine. Proximity therefore appears to be the most satisfactory element during a POS selection. Adding to that, there are players who prefer to play in a specific place due to habitual reasons or because they trust the owner and the service offered. Table 3: Primary Reasons for POS Selection Researched country Primary Reasons for POS Selection Italy Turkey Table 5: Primary Likes in a Lottery Advertisement Researched country South Africa Amount of money to be won (83%) Peru Amount of money to be won (51%) Mauritius Information message (25%) Morocco Humor (48%) Source: Intralot Researches Table 6: Secondary Likes in a Lottery Advertisement Researched country Secondary Likes in a Lottery Advertisement Additional Likes in a Lottery Advertisement South Africa Winning numbers (56%) A lot of money (38%) Peru Slogan (36%) The fun / pleasant story (20%) Mauritius Actual prize to be won (15%) Humor (15%) Morocco Emphasis on product credibility (31%) Real people involved (30%) 58% POS proximity 69% Vietnam 71% Morocco 48% Source: Intralot Researches Source: Intralot Researches Table 4: Secondary Reasons for POS Selection Secondary for POS Selection Italy Turkey Vietnam Morocco Place of trust (32%) (12%) Habit (25%) Good service (21%) (23%) (17%) Clean place (28%) Quiet place (28%) Source: Intralot Researches COMMUNICATION When a lottery wants to add value to its games or to the organization itself, it all depends on what the players want to see; on what messages will trigger them to participate. Research has shown that advertisements, which show the top prize to be won, trigger players and enhance participation. Nevertheless, high levels of satisfaction are reached by humorous advertisements, or advertisements emphasizing on game credibility. RESEARCH Making a player happy is an ongoing process, the quality of which largely depends on the efficient transcription of the latest trends into the right products and services. INTRALOT tests on a regular basis the level of players’ satisfaction in terms of the aforementioned examined factors, while the generated data is processed in a way to exceed players’ concerns and needs. Satisfying the player has never been an easy task for any gaming operator. Today’s constant changing environment and the introduction of new ways of gaming makes this task even more difficult for Lotteries. Any knowledge Lotteries had for the players so far and any effort they have done to capture the player, will be challenged within the next years due to continuous innovative game offering. Table 2: Secondary Reasons for Participating in a Game Secondary Reasons for Participating in a Game Italy South Africa Enjoy playing (27%) (8%) Gives excitement (19%) Easy to play Turkey Vietnam (8%) (28%) Mauritius (11%) Easy to win (22%) (58%) Want more money (36%) Suitable ticket price Morocco (25%) Dream of winning Primary Likes in a Lottery Advertisement (16%) Source: Intralot Researches PREMIUM PARTNERS 30 NEWS 34 SEPTEMBER 2010 PLAYER SATISFACTION Developing products to meet the evolving gaming interests of players has always required a commitment to cutting-edge research and development. Over the past 13 years, Scientific Games has established a leadership position in this critical function. In today’s Internet-connected world, player preferences are changing more rapidly than ever. At the same time, the very dynamic of the Internet has made it possible for Scientific Games to tap far deeper than ever into consumer behaviors and interests. IT ALL STARTS WITH R&D Over the years, Scientific Games has invested aggressively in an in-house research team to support its commitment to product research and development. During this period, the company has worked on over 1,100 research projects and provided nearly $45 million in research funding. Today, our research focus includes everything from grassroots, roll-upyour-sleeves observational studies to highly sophisticated surveys that yield statistically valid quantitative player data. We regularly submit relevant and topical lottery-specific questions that are an integral part of a syndicated questionnaire that is sent to 50,000 households. From this bi-annual survey, we have compiled a large database of consumer information enabling us to drill deep beneath the surface of lottery play to uncover solutions that are actionable and not readily identifiable through more traditional research methods. Our researchers take this information and work side-by-side with our product development teams to create products that satisfy player needs and wants. We also invest heavily in secondary research. Combining sophisticated marketing information systems with our global base of customers allows Scientific Games researchers to analyze data in unique and actionable ways. One such system is AEGIS-MAP, a secure, interactive database containing global instant game information designed to help customers make the best possible marketing and planning decisions. With over 21,000 instant games, over 760,000 weeks of sales data and more than 14,000 ticket images, Scientific Games account teams have access to thousands of industry-wide instant game records. No other system can tell a lottery how a particular game performed, generate sales reports or get game artwork ideas quicker. THE AGE OF THE LOTTERY CRM Scientific Games sees the Internet as the future, not just as an interactive medium for delivering new forms of gaming content, but, equally important, as a marketing channel for tapping far deeper than ever into consumer behaviors and interests. MDI Interactive is leading the charge in this area for United States lotteries. MDI Interactive is actively working with our lottery customers transforming their often fledgling VIP Clubs into comprehensive and robust loyalty marketing programs. These programs create direct, Internet-based relationships with players. These relationships translate into huge volumes of daily player interactions yielding highly specific product interest and game preference data. ages Internet relationships in order to take player understanding to the next level. Sciplay has developed a Lottery Customer Relationship Management (CRM) platform that tracks and analyzes every online action, including overall visits to the site, time spent on the site, specific games played and frequency, informational ads clicked, and more. These online behaviors form each player’s extended profile. As a result, behavior segments are formed and these segments can be micro-targeted based on these gaming actions. The end result is a deep, everevolving view of the player-base. Over time, a clear understanding of which games/themes/features/ payout matrices will grab player attention begins to emerge, including how to keep players engaged for enhanced and extended play. This data serves as a proxy for the “players’ voice” – revealing not simply what they like, but what they want. The in-depth player segments that are formed, tracked and analyzed serve as the foundation for developing new products. Sciplay’s product roadmap is developed around actual behavior segments, not just typical product categories. New products, in essence, can be far more directly matched to the very things players are looking for. “We strongly believe that investing in research is important for staying in step with the evolving needs and wants of players and retailers,” says Rick Weil, CEO and Managing Director of Sciplay. “Our Lottery CRM platform gives the lottery industry the ability to cull even more relevant and useful information, which will enable lotteries to enhance the player experience and take player satisfaction to a whole new level.” Sciplay – the joint-venture company comprised of gaming powerhouses Scientific Games and Playtech – lever- PREMIUM PARTNERS 31 NEWS 34 SEPTEMBER 2010 RESPONSIBLE GAMING: 14 LOTTERIES ARE NOW CERTIFIED Launched in 2007 and developed during 2008 by the EL Responsible Gaming Working Group, the EL Standards have been tested and validated by external qualified organisations as well as recognised at international level. Following this rigorous process, the EL General Assembly, held in June 2009 in Istanbul, overwhelmingly approved the Responsible Gaming Certification Process. These Standards were implemented to define clearly the norms that every Lottery operator in Europe should follow regarding responsible gaming. The signatories undertake not only to meet the requirements established in respect of ten key elements, but also agree to regular review by independent external assessors as part of the process of certification. The independent assessors must be approved in advance by the EL Responsible Gaming Committee. As of today, the 14 certified lotteries are: – AB Svenska Spel (Sweden) in May 2009 – Austrian Lotteries (Austria) in June 2009 – Israel Sports Betting Board (Israel) in February 2010 – – – – – – – – – – – La Française des Jeux (France) in June 2009 Loteria de Catalunya (Spain) in May 2009 Loterie Nationale (Luxembourg) in May 2010 Lottomatica SpA (Italy) in May 2009 Mifal Hapais (Israel) in April 2009 Société de la Loterie de la Suisse Romande (Switzerland) in May 2009 Szerencsejáték Zrt. (Hungary) in May 2010 Camelot UK Lotteries Ltd. (United Kingdom) in May 2009 Toto-Lotto Niedersachsen GmbH Lower Saxony (Germany) in April 2010 Veikkaus Oy (Finland) in May 2009 Westdeutsche Lotterie GmbH & Co. OHG (Germany) in May 2009. These fourteen lottery companies have been officially honoured during the Industry Days in Barcelona last June 3rd and have all received their certificates, accompanied by loud applause of the EL Members. We warmly congratulate all the certified Lotteries! And let’s make a date during our next Congress in 2011 in Helsinki to honour the next batch of Lotteries that will have completed the process of Certification by that time. LOTTERIES THAT ARE INTERESTED TO HEAR MORE ABOUT HOW TO GET CERTIFIED AND RESPONSIBLE GAMING IN GENERAL HAVE THE OPPORTUNITY TO ATTEND THE NEXT EL SEMINAR “FROM RESPONSIBLE GAMING TOWARDS SUSTAINABILITY” KINDLY HOSTED BY SVENSKA SPEL IN STOCKHOLM FROM 29 SEPTEMBER TO 1 OCTOBER 2010. PLEASE REGISTER VIA THE EL WEBSITE WWW.EUROPEAN-LOTTERIES.ORG RESPONSIBLE GAMING 32 NEWS 34 SEPTEMBER 2010 AN OASIS OF OPPORTUNITIES FOR SPORTS BETTING MARRAKECH, MOROCCO – MAY 4-7, 2010 Over 120 delegates from four continents and more than 30 countries met in Marrakech for a seminar on sports betting jointly organized by AALE, EL and WLA. Never has attendance for a sports betting seminar been so large. and how to find sustainable funding for grass-roots sports. There were also questions of property rights and copyright claims and, last but not least, issues relating to the integrity of sports and sports betting. The newly appointed CEO of La Marocaine des Jeux, Mr. Younés El Mechrafi, welcomed the participants and reminded them that this landmark event for African lotteries was held only 38 days prior to the Football World Cup, also to be hosted on the African continent. As the first African lottery to introduce sports wagering in 1962, and fixed-odds betting in 2005, La Marocaine des Jeux was proud to host such a major event. Mr. Nieminen, who had just attended meetings with the International Sports Press Association (AIPS) and with SportAccord (formerly the General Association of International Sports Federations), indicated these associations’ desire to cooperate closely with WLA on sports integrity issues, in order to increase awareness among athletes globally. This was an immense opportunity for all WLA sports betting lotteries to show their commitment and to take leadership in demonstrating best practices in sports betting. Mr. Risto Nieminen, CEO of Veikkaus, Senior Vice President of WLA, and Chair of EL Sports Committee, also welcomed the delegates and gave an overview of the sports betting situation in Europe. Many important issues needed to be discussed: An upcoming Green Paper on Sports in the European Union dealing with themes such as how to handle professional sports, WORKSHOPS The two-day program focused around four themes: regional markets and new legislative models, integrity and sports betting, value of sports betters and sports betting lottery offers for the World Cup 2010 in South Africa. 33 NEWS 34 SEPTEMBER 2010 THE AFRICAN MARKET The director of La Marocaine des Jeux, Mr. Nabil Baakili, gave first an overview of betting in Africa and then a more detailed picture of betting in Morocco, Senegal, Tunisia, and South Africa. The dominant form of betting in Africa is on horse racing. More than 90% of total lottery and wagering sales in Africa come from instant tickets and horse racing pari-mutuel betting. Morocco is unique in being the first to launch Cote & Foot in 2005, which in addition to the two pools games and the “Oddset” game, accounts for more than 50% of the current total sports wagering. Estimation on annual sports betting sales in Africa, not including horse race betting, would be around US$ 200 million. THE EUROPEAN MARKET Mr. Andreas Mattes, Product Manager of Staatliche Toto-Lotto, Stuttgart, Germany, and member of the EL Sports Betting Working Group, presented an overview of sports betting in Europe based on a questionnaire completed early 2010 by some 38 European lotteries offering sports betting. The questionnaire revealed that total sports betting in Europe for 2009 was above EUR 7 billion, while EUR 5.5 billion were attributed to Oddset. Sales through the Internet have been growing 38% annually the past three years. At present, the Nordic lotteries sell WORKSHOPS between 16% and 40% through this channel. In Italy, Sisal and Lottomatica both have rates above 30%, whilst La Française des Jeux (FDJ) is currently around 5% but growing significantly. Mr. Mattes presented the developments over the past five years. For fixedodds betting, all except Germany had experienced growth. Measuring sales per capita, Greece topped the list with EUR 180 per capita. Denmark came second with EUR 50 p.c. in 2009, followed by Norway EUR 37 p.c., and Israel EUR 31 p.c. The lowest p.c. sale of Oddset was found in Germany with EUR 2 p.c. and the Netherlands with EUR 1 p.c. THE ASIAN MARKET Mr. Gilbert Cheng, Head of Business Development and Special Projects at the Hong Kong Jockey Club (HKJC), presented sports wagering in Asia. Total annual sports betting sales are around US$ 45 billion and growing. Mr. Cheng described the impact of international bookmakers selling Internet wagering illegally. Establishing legal sports betting became the only answer for each country. One of the driving forces for sports wagering in Asia is the sport itself; also technology and heavy media coverage of any sports event have been a driver, together with live betting. Finally, the impressive general economic growth figures in the region have also impacted positively on sports wagering. Mr. Cheng concluded 34 NEWS 34 SEPTEMBER 2010 AN OASIS OF OPPORTUNITIES FOR SPORTS BETTING his overview of Asian sports wagering by showing how illegal betting was counteracted in Hong Kong through an efficient application of the law and by increasing punters’ awareness on the negative impact of illegal games. By presenting an attractive marketplace to betters, the HKJC ensured that the desire for gaming was channeled into a legal framework. THE SOUTH AND CENTRAL AMERICAN MARKET Mr. Rene Dissing, Senior Sports Betting Solutions Manager from GTECH, gave an update on sports betting in South and Central America. Fixed odds betting is available in Chile, Colombia, Uruguay, Mexico, Panama, the Dominican Republic and Jamaica – whilst Argentina, Mexico, Peru, Chile and Colombia also offer traditional pools games. Some of the challenges are related to legislation and a relatively low payback rate. THE AUSTRALIAN AND CANADIAN MARKET Ms. Areti Markou, International Operations Manager of Intralot, took the delegates “down under” and outlined the Australian sports betting markets. Sports betting in Australia is offered through state-owned or state-licensed operators as well as corporate bookmakers. Sales are made through more than 4,000 outlets, via telephone, as well as on the Internet. The total sales volume is around AUS$ 2.5 billion annually, but is expected to double over the next five years. Mr. James Haverstock from the British Columbia Lottery Corporation, Canada, went back to Canadian sports betting in 2006 compared to today’s situation. Five lottery jurisdictions offer fixed odds and parimutuel wagering. In 2006, sales amounted to CAN$ WORKSHOPS 415 million. Four years later, sales have increased to CAN$ 469 million, with the Ontario Lottery Corporation accounting for more than half of all sales, with a per capita sale of CAN$ 20 in 2010. NEW LEGISLATIVE MODELS Mr. Jean Jørgensen, WLA Executive Director, outlined the new gaming proposal currently being debated at the Danish parliament. Under the heading “A partial liberalization of the gaming markets”, the government intends to liberalize sports betting with fixed and running odds sold in shops, as well as with Internet-based Poker and Casino games. This proposal will come into force 1st January 2011. Mr. Thomas Lamaury and Mr. David Blaise-Martin, both from FDJ, presented the new legislation in France. Markets for online sports betting, will open on June 9th (as well as Poker games), FDJ has prepared itself since autumn 2009 re-launching its website and completing its image program for sports betting products via retailers and the Internet. Mr. Oscar Villar Castro, Business Analyst from ONCE, outlined the initiatives currently made individually in regions of Spain to deal with Internet gaming and sports wagering. Each region has a different approach and although the government pledged a national framework back in 2007, the draft proposal made in 2009 never received any support. INTEGRITY AND SPORTS BETTING Dr. David Forrest, Professor of Economics at the Centre for the Study of Gambling, Salford University, United Kingdom, and Professor at the Macau Polytechnic Institute, gave a keynote presentation on betting and corruption in sports wagering. The 35 NEWS 34 SEPTEMBER 2010 AN OASIS OF OPPORTUNITIES FOR SPORTS BETTING lecture was structured around the economic model on crime first developed by Nobel Laureate, Dr. Gary Becker, and presented the advantages and disadvantages of corruption in sports betting. The academic studies and use of economic thinking have helped to identify which characteristics one should look for when trying to pinpoint possible fixed sporting events. High liquidity on events was one such danger signal, while the possibility to bet live on outcomes that would not impact the overall sporting result was another. Mr. Carsten Koerl, CEO of Sportradar, Switzerland, showed the tremendous data collection and analysis system they had put in place since June 2009, in cooperation with UEFA on a Betting Fraud Detection System (BFDS). The BFDS covers more than 29,000 football matches a year, with monitoring, analyzing, and scoring each match with respect to the probability of a fix, and reporting it later to UEFA. Mr. Jens Nielsen, Oddset Manager at Danske Spil, Denmark, and chair of the EL Sports Betting Working Group, gave a status report on the European Lotteries Monitoring System (ELMS). They have monitored some 800 UEFA matches and a similar number of FIFA matches over the past year. As a new twist, the 19 ELMS members from 18 countries now have the option of connecting and reporting directly into the Sportradar BFDS. The afternoon ended with a contest, organized by Mr. Helmut Löchenberger, Product Manager of Tipp3, Austrian Lotteries, and a member of the EL Sports Betting Working Group. Nine companies provided their best sports betting commercials and the audience rated each of them. The clear winner was Norsk Tipping, Norway, followed by the Israel Sports Board and Veikkaus, Finland. THE VALUE OF SPORTS PUNTERS The EL Premium Partners and the WLA Platinum Contributors Intralot and GTECH were joined by the WLA Silver Contributor Betware to address the issue of cross-selling. Mr. Panos Pournaras, Business Development Manager at Intralot, explained how sports betting was not only about money but also about social entertainment. Mr. Anders Frigren, Marketing Director of Sports Betting, GTECH, gave the audience an overview of sports betting as performed by purely commercial operators. Mr. Ólafur Andri Ragnarsson, co-founder and Chief Software Architect of Betware, showed the dimensions of social media and the growth potential for lotteries. “Our agents needed a fast, secure method of tracking lottery sales on their own accounting systems, so they could accurately distinguish lottery revenues from other revenue. GTECH designed and implemented a barcode solution that lets agents rapidly scan — and accurately GTECH® is an advocate of socially responsible gaming. Our business solutions empower customers to develop parameters and practices, appropriate to their needs, that become the foundation of their responsible gaming programs. 36 NEWS 34 SEPTEMBER 2010 Veikkaus Product Manager, Mr. Niko Marttinen, explained the software program “The odds assistant”, developed over the past few years to enhance odds making and pricing. Live betting is becoming a larger part of total sports wagering. Indeed, for some commercial operators it has exceeded 50% of their total sales. Mr. Raffaele Lillo, Betting Business Analyst from Lottomatica, said that live betting may not be profitable for now, but it is crucial to maintain the loyalty of customers in a competitive market. Mr. Matt Stephenson, Head of Business Development for Betgenius, gave their version of how to do largescale live betting. Mr. Carsten Koerl showed how Sportradar could assist lotteries in this area. Mr. John B. Pazartzis, VP for Business Development of Neurosoft, Greece, focused on getting risk management right. LOTTERIES AND THE WORLD CUP 2010 IN SOUTH AFRICA One month ahead of the World Cup in South Africa, lotteries around the globe are preparing for the event. Three lotteries showed what they had in the pipeline. Mr. Khalid Fahim, Operations Manager of La Marocaine des Jeux, hopes the World Cup will boost their sales. As a new initiative, they have developed a number of SMS competitions and engaged in cooperation with a telecommunications provider. Mr. Walter de Beauvesier Watson, Manager of the Lottery and Sports Betting Department at De Lotto, The Netherlands, and an EL Sports Betting Working Group Member, showed the initiatives of De Lotto. In cooperation with British Petroleum, betters filling their car with more than 20 liters of petrol would win a voucher for a free bet of EUR 1 on one of the matches involving Dutch participation. De Lotto had also increased its payout from 83 to 87% per match and is cooperating with the most popular radio broadcaster in The Netherlands. Finally, Mr. Ola Carlsson, Product Developer of Svenska Spel, explained how Svenska Spel would increase the quantity of each bet type both for pools and for oddset games. Prior to the group matches, a better will tell the retailer which team was his World Cup favorite and the retailer will then sell him an intelligent quick pick featuring two matches involving this team at a price of SEK 20. Jean JØRGENSEN Moderator / WLA Executive Director capture — the value of their lottery purchases on their own cash register. Now our agents have a clear and integrated view of their sales by product line, and The Lottery retains full visibility of lottery product sales.” Jim O’Connor, Key Account Manager, The Lottery, Ireland For more about this story and others like it, visit us at gtech.com/testimonials. 37 NEWS 34 SEPTEMBER 2010 PUBLIC RELATIONS AND COMMUNICATIONS SEMINAR VIENNA, 16-18 MAY 2010 The forty delegates from twenty European lotteries who attended the EL Public Relations and Communications Seminar on “Building Positive Relationships” were clearly at the mercy of Eyjafjallajokull when it came to the proceedings at this important EL Seminar hosted by Austrian Lotteries. With three speakers travelling from the UK and Ireland, and an ash cloud that was showing a great affinity for all places in a southeasterly direction from Iceland, it was evident that a good Plan B was required. In the event, the only casualty was the Irish keynote speaker, who was replaced, at the last minute by Niko Alm who is CEO of the SuperFi Group (advertising, design, web, publishing, software) in Vienna. Over the two days of the meeting, the participants were exposed to challenging ideas and concepts about how lotteries should set about building positive relationships, ranging from the need to develop “pools of goodwill” among opinion leaders, to reinforcing trust among lottery players and the public, in general. David Rigg, Manager Director of Project Associates, UK, the original Director of Communications for Camelot gave some colourful examples of how to WORKSHOPS develop good relations with the press. He strongly advised building relationships in the “good times” so that they could be leveraged in the “bad times”. “IT TAKES 20 YEARS TO BUILD A REPUTATION AND FIVE MINUTES TO RUIN IT.” WARREN BUFFET David shared examples of crisis triggers such as “whistle blowers” and “product failure” where winning and losing depended on the following characteristics: WINNING LOSING Humility Arrogance Human/Caring Legalistic Open Communication Dishonest/misleading Rapid response Slow Clear Position Inconsistent Acting responsibly/Learn Denial 38 NEWS 34 SEPTEMBER 2010 David Himmelbauer, from the host lottery, gave an excellent presentation, on the basis of his experience as a journalist (before he “crossed over” from the “dark side” to the gaming sector). His advice was that PR people should never “lecture” journalists, since the journalists have “always known everything”, but PR people should … % Be proactive as they supply information before and after decisions % Deliver the information before competitors do % Try to use crisp wordings % Stay in touch – even with the „baddies“ Next, Jeanette Ström, the Head of PR at Svenska Spel, gave a comprehensive paper on how to build brands using PR. In passing, she offered a nice succinct definition of PR as “Do something good and tell people about it”. This may seem like a simple definition for the 21st century, but it captures the practical essence of the topic. Svenska Spel recently reorganised its organisational structure and set up a new Market Division where PR, Sponsorship and Brands are brought together. This reorganisation showed clearly the intent of the company to move PR into a more active role in the development of the game brands and the “mother brand” of Svenska Spel itself. They make great use WORKSHOPS of research and track the attitude of players and the public to all their brands. By associating their brands with sport in Sweden, they have managed to successfully promote core messages such as the Lottery is “Swedish Sport’s best friend”. Jeanette and Svenska Spel promote brands as “friends”, and players believe that the brands are not only friends, but they are friends/brands that can be trusted. She also presented how PR is used with the Responsible Gaming ethos of Svenska Spel to improve the image of the lottery and also gave interesting insights into Svenska Spel’s exploratory use of the new media social networks. Richard Peel, who joined Camelot in 2008 as Director of Corporate Affairs, explained the massive restructuring that is taking place in Camelot following the award of the new licence and the recent change in ownership. And if that were not enough they now have to deal with a new Government and hundreds of new members of Parliament. The task of developing new relationships with all of these new stakeholders is truly a gargantuan task. The development of a corporate affairs strategy, staying in contact with regional media, and embedding the Communications team in the business has been the backbone of the restructuring. 39 NEWS 34 SEPTEMBER 2010 Richard explained how it was seen as very important to introduce a regular lottery information bulletin for Members of Parliament and to have full transparency in all stakeholder reporting. The recent change in ownership of Camelot required a very specific and focussed communications effort which had as its key messages – longevity, investment and confidence. Richard shared the results of some research data which showed that “Trust in the UK National Lottery” was at its highest level ever in 2009, at 74% of adults agreeing that the National Lottery was trustworthy, compared with 49% in 2004. Marc Frederix from the Belgian National Lottery and Arjan van’t Veer and David Selier for the Dutch State Lottery delivered two papers which demonstrated how to deal with lottery “problems” that are publicly exposed. Marc described the lottery reaction to problems that required delicate and extensive reaction and communication from the highest levels within the National Lottery to maintain the trust and confidence of the Belgian players. Based on the experiences, Marc extracted the following “learnings” … % Always be prepared for the worst % It is impossible to keep confidential information a secret % In a crisis situation, display dignity, not aggression % Turn critical stakeholders into allies % Taking the long term approach is key; quick wins will never pay Marc also presented the results of market research which was carried out around the time of the incidents. While there was some negative reactions, there was very little change in the public perception WORKSHOPS of the National Lottery and in players intentions to continue to play National Lottery games. There was strong positive reaction to press conferences and press advertisements making the position of the lottery fully transparent. Arjan showed a TV interview in which he withstood tough questioning from a very aggressive interviewer about the public perception of a State Lottery advertising campaign for a e25m jackpot, where a 1/5 share ticket would only be eligible for 1/5 of the advertised jackpot. Arjan then showed how the Lottery went on to use good communications and full transparency by redesigning their publicity campaign (in a most creative and inventive way) to more correctly reflect the position for subsequent draws. The final presentation was made by Rupert Hornig, EL General Delegate and Jutta Buyse, EL Deputy General Delegate, who explained how the Brussels based press corps interacted with the national press in each of the members jurisdictions. One of the primary functions of the EL Brussels office is to make EL’s voice heard in Brussels: quick reactions and interactions between the Brussels office and communications staff in member lotteries was the key to efficient and effective operation. Each of the two days of the Seminar was completed with group discussions and practical case studies that provided the participants with the opportunity to apply what they had learned from the presentations. Ray BATES Moderator / EL Honorary President 40 NEWS 34 SEPTEMBER 2010 INDUSTRY DAYS 2010 BARCELONA JUNE 2-4, 2010 Among almost 250 delegates attending the 2010 Industry Days in Barcelona in June 2010, were senior staff members from the three Premium Partners, Gtech, Intralot and Scientific Games, and the SemiPremium Partner, Wincor Nixdorf; the host Director, Mercè Claramunt i Bielsa, General Director, and members of her staff at the Loteria de Catalunya, as well as lottery directors and senior staff from almost 50 EL Member State Lottery and Betting Companies. Given the technical and lottery-specific nature of much of the proceedings of the two days, it was agreed that the two keynote speakers would address issues other than lottery and technology. This was indeed the case and Professor Richard Scase WORKSHOPS and Richard Gerver shared experiences of global business and the characteristics of young adults with the attendees. As a “forecaster”, Professor Scase predicted that the current economic and financial world crisis would continue until 2016. This means that Governments in all the EL member jurisdictions would continue to have a strong dependency on funds from lottery and sports betting activities for some time to come. He described his world of “upside down” business models and postulated that we are living in an age of anxiety and insecurity but we have a growing belief in chance. He urged the participants not to forget the “silver surfers”, or people aged over 55 years, when developing games and facilities to be delivered via the new media channels. He also left delegates with an exhortation to keep their businesses “Fit, Fresh and Fun”. Richard Gerver, who had won the prestigious “School Head Teacher of the Year Award” at the British National Teaching Awards, gave insights into what currently makes young adults “tick”. Arguing that young adults are similar all over Europe; care a lot about the Environment, the Economy and Ethnic Discord, he showed how they live increasingly in a world where nothing is certain. They spend significant amounts of time in virtual space and value social networking websites and facilities such as Facebook, Spotify and Twitter. They feel empowered in these environments, to which they are retreating with increasing frequency. Lifestyle 41 NEWS 34 SEPTEMBER 2010 and images of lifestyle are their ruling Gods and they revel in being termed the “on-demand” generation. His final conclusion was that they are, in spite of all of these seemingly superficial activities, emotionally involved and care for their environment and future generations. The INTRALOT Session, titled “The Emergence of the New Player: Technologies and Business Processes are the Key Enablers”, was moderated by Mr. Pournaras, and included presentations from Andre Chaker from Veikkaus in Finland who brought the delegates through his circular (and virtuous model) of the Veikkaus Lottery Customer. Acquire ¤ Distribute ¤ Entertain ¤ Understand ¤Retain Given the pioneering role of Veikkaus in the field of digital channels it was interesting to hear that 23% of Veikkaus turnover now passes through the digital channels and that 30% of registered Veikkaus players have given permission to be sent marketing emails. 13% of the same base have given permission to be sent customer relation marketing via SMS. Andre showed the disparity between “Media Time Spent” and “Ad time Spent” where, for some media, the proportion of time spent by consumers in the medium was far in excess of the total amount of advertising spend expended on the same media. The ultimate aim of Veikkaus is to build customer loyalty WORKSHOPS with a life cycle program, which is firmly based on trust. The INTRALOT session also included a presentation from Gregory Yovanov, Athens information Technology, on the importance of m-Gaming. He pointed out that social networking sites were important because of all the C’s … Creativity, Collaboration, Community, Communication, Competition, Convergence and Connectivity. He proposed that, because of the new technologies, the consumer of today was actually a “PROSUMER” – involved with the production and consumption of data and information. You can only reach the new player by extending the lottery “to the palm of their hands”. Mr. Mazza then urged the attendees not to look on the internet as just another distribution channel. It is not just another lottery “shop”. He quoted examples from other sectors, such as travel, where it was not just the channel but the range of services on offer that had significantly changed. For example downloadable apps should be developed for new lottery games, particularly for branded lottery games. Mr. Zenzefilis closed the session by introducing the concept of moving from “dotCOM” to “dotCOUNTRY”, where the gaming system becomes a Gaming EcoSystem. He analysed the strengths and weaknesses of the sector and proposed his “winning strategy” consisting of Enabling Regulation, B2B Partnerships and a strong focus on marketing and sales. 42 NEWS 34 SEPTEMBER 2010 INDUSTRY DAYS 2010 BARCELONA The second session was from GTECH and was entitled “Putting the R back into R & D”. It was moderated by Sharon Duncalf who opened the session with some very interesting and stimulating visual information and facts. Asserting that “we are living in truly exponential times” she went on to question whether we had become data-rich and analytically-poor. To demonstrate the importance of Research for lotteries, she introduced two presentations on case studies, one from the Irish National Lottery and the other from Veikkaus in Finland. Dermot Griffin, CEO of the National Lottery, Ireland, explained how research had been used to improve and “tune up” the recently introduced Raffle game in Ireland. Intensive market research was used to determine whether the concept of a “Sweepstake” was understood by Irish lottery players and whether it would be an effective variation of the basic Raffle game that had been offered to Irish players for the past three years. Five representative player-types were identified and their responses to the concept of the new game were tested. There were no significant residual effects from the old Irish Sweepstakes and the research showed that the 20 ticket price was justified by the game proposition, particularly as an alternative to a lower ticket price, but with a larger number of tickets on sale in the raffle. Research had strongly influenced the style and tone of the WORKSHOPS advertising campaign used and the design and use of point-of-sale support. Jari Vahanen then explained the customer research project in Veikkaus called LOUHI. With 1.2 million players registered from among its 3.7 million customers, Veikkaus is well supplied with “internal” data. External requirements are satisfied with “Atlas” research … 8000 yearly answers, and Market tracking … 200 weekly answers. The LOUHI process, which also incorporates best Responsible Gaming principles, is described as transforming ideas into information for better decision-making. The process enables new games to be “tested” by players and then facilitates evaluation of game prototypes by simulation techniques. Changes to existing games can also be modelled and tested. A novel dimension of the process is that the customer is effectively harnessed as a resource for development. The overall result is that lottery management can make informed decisions based on “facts” from the process, and they can truly claim that the players are influencing the games being designed and introduced by Veikkaus. The third Partner Session was from Scientific Games and was entitled “Convergence of Distribution Channels”. Rick Weil, CEO and Managing Director of Sciplay introduced the session by presenting three transformative trends with global gaming implications … 43 NEWS 34 SEPTEMBER 2010 % Growth of wide area gaming (proliferation of channel types and locations) % Convergence (players want to play any game, anywhere at anytime) % Increased role for Government (spectrum of regulation from restricted to open). He also suggested that the “new paradigm” of the theme of the meeting might be more to do with new relationships and partnerships rather than new hardware and systems, or, indeed, the new economic and financial order. Andy Townsend then gave an interesting presentation using comparative sales figures to show that there was great potential for expanding the market for instant games in Europe (versus North American sales). In particular he cited Italy as an example of where instant game sales had been increased from €0.4billion in 2004 to €9.3billion in 2009. Poker and Bingo are two classes of gaming that have been well exploited on the new media channels, but it is important that operators continue to search for powerful player engaging content. Jeremie Kanter from Playtech then showed how the customer must be placed at the centre of the model so that operators ensure that the markets are efficient and evolve to align with customer needs and wants. Giovanni Maggi, CEO of Sisal, then presented their position in the Italian market with the focus on eGaming and Online, and the importance of integration. He explained various facilities and services that were made available to the Italian player. Offer Peri, the CEO of the Israel Sports Betting Board then explained how his company not only offers sports betting, but was also responsible for the allocation of their profits (around 25%) to deserving sports organisations. His task was made more difficult because of the extent of illegal sports betting in Israel. For this reason it was very necessary to use every possible facility (integrated marketing) and channel (e.g. Facebook) to dialogue with his customers/players. Rick Weil closed the session by urging Lotteries to capitalize on the new paradigm, and leverage their three main assets: % Their Trusted Brand % Their vast, established retail distribution % Their massive customer base. The final Session from the Semi Premium Partner, Wincor Nixdorf, was given by Hagen Hoehl, Director of Strategic Sales. Representing a synergy of retail and banking expertise, he explained how 90% of all payments in the world continue to be made in cash, and dealing WORKSHOPS with the “cash cycle” was still a vital component of any business. He also pointed out the interesting evolution where the banks had over recent times “forced” their customers out of their branches and migrated them to their online services. Paradoxically the banks now find themselves missing out on opportunities for cross-selling other products to their customers. Hagen also ended his presentation by urging lotteries to “go where the customer is”. The Industry Days high point were the back-toback Panel discussions with four Lottery Directors (Dianne Thompson, Friedrich Stickler, Risto Nieminen, and Jean-Luc Moner-Banet) and four Supplier representatives (Connie Laverty, George Zenzefilis, Rick Weil, and Hagen Hoehl ). The discussion and debate ranged over a number of issues. Some key concerns and responses were … % In the new paradigm it was time to concentrate on the customer and put him/her back at the centre of the model. In spite of the financial and economic turmoil it was still felt that there was capacity for growth in the gaming market. % The Directors were very happy to continue to share experiences with fellow Directors and to extend cooperation in all fields, as was recently experienced at the recent EL Seminar on PR/Communications. % All agreed that the Retail Channel continued to play an important role. But it was very important that Retail agents were kept well informed and briefed about new products by the Lottery, and aware of their responsibilities under the Responsible Gaming best practices. % Given the changing nature of the scope of the activities of Lotteries and Suppliers, it was generally felt that there was no conflict in the activities of Lotteries or Suppliers who were actively seeking to expand their business into new jurisdictions and business opportunities. All member Lotteries are operated in a strictly regulated environment and all tendering for “new business” is carried out within very formal and controlled processes. % Delegates were left with a reminder not to forget the “LOTTERY TRADITION” and to continue to develop and leverage “BRAND LOTTERY”. Ray BATES Moderator, Industry Days 2010 44 NEWS 34 SEPTEMBER 2010 Northern Light EL CONGRESS 2011 | HEL SINKI Mark 5 — 9 J U N E 2 0 11 www.el2011.org 45 NEWS 34 SEPTEMBER 2010