2010 Sustainability Report

Transcription

L O T T O M AT I C A G R O U P
2010
SOCIAL REPORT
L O T T O M AT I C A G R O U P 2010 S O C I A L R E P O R T
Presentation
6
Brief Profile
10
GROUP PROFILE
16
Group activities
World gaming market
Group structure
Corporate Governance
Compliance and Governance program
THE SUSTAINABILITY STRATEGY OF LOTTOMATICA GROUP
34
The Group’s policy on sustainability
Lottomatica’s commitment to responsible gaming in Italy
Our commitment to responsible gaming worldwide
ECONOMIC RESPONSIBILITY
Production of added value
Distribution of added value
64
SOCIAL RESPONSIBILITY
70
Regulators
Shareholders and financial backers
Personnel
Customers
Retailers
Suppliers
Communities
ENVIRONMENTAL RESPONSIBILITY
152
The Group’s environmental policy
Environmental initiatives in Italy
Environmental initiatives in the United States
ATTACHED DOCUMENTS
Methodological note
GRI identification table
Indipendent auditors’ report
174
Lottomatica Group Social Report
Presentation
Corporate social responsibility represents a perspective and a
Lottomatica Group is aware that the contribution to general tax
strategy that is increasingly widespread and in use in all sectors
revenue from gaming has become increasingly important for the
worldwide. The unavoidable concept of sustainable capitalism is
financial sustainability of the sovereign debt of many countries,
beginning to make its way in many countries which, until
which have made further commitments to costly operations in
recently, focused on development without considering the direct
order to achieve economic recovery from the crisis. The two major
impact on the environment and the communities involved. The
companies within the Group, Lottomatica in Italy and GTECH in
global economic crisis of 2008 has shown how important it is for
the United States, have renewed their commitment to cultural,
all players to make an honest and transparent commitment,
sporting, and social initiatives that fall within the traditional
which is one of the essential components of capitalism, in the
requirements of their respective countries of operation.
same way as the terrible disaster of Fukushima dramatically
reiterated the importance of the concept of sustainability.
In addition, the 2010 financial year has seen a broadening of its focus
on the needs of other communities, emphasizing the accountability
For many years, Lottomatica Group has integrated these values
of a global company that is now operating consistently in over 50
into its own vision and has required that its strategies meet its
countries. As evidence of this commitment and the achievements we
economic, social, and environmental responsibilities. Acting in a
have made, in 2010 the Group achieved major recognition, such as
socially responsible manner in the gaming industry at global level
inclusion in the FTSE4Good Index, which includes only securities from
means, first and foremost, offering products and services that
companies that have made a commitment to fighting corruption,
meet players’ legitimate needs of leisure and excitement in a
standards for workers’ rights, respect for human rights,
healthy and balanced way, and in a regulated and responsible
environmental sustainability, and combating climate change. These
context.
principles are based on Lottomatica Group’s Code of Conduct, which
was adopted at all levels and by all branches worldwide, and which
our employees, suppliers, and business partners incorporate into
contractual obligations.
encouraged us to extend our efforts to additional facilities.
In any event, we are convinced that social and environmental
responsibility can be pursued over the long term only by maintaining
This recognition is in addition to certifications that Lottomatica
our Company’s profitability and efficiency. Economic responsibility is
has obtained from the World Lottery Association and the
an essential condition for the other two aspects of sustainability and
European Lottery Association specifically with respect to the
makes it possible to pursue it. The gaming industry was not affected
responsible gaming program. The issue of responsible gaming,
by the crisis to the same degree as other sectors, however continuing
which is closely associated with the Group’s core business, is a
uncertainty worldwide requires a careful and prudent strategy to
special aspect of the Company’s sustainability strategy, compared
ensure increased distribution of the Company’s added value for the
to other sectors, and demonstrates our focus on the possible
benefit of all stakeholders. For this reason, the fourth edition of
social impacts of our business activities.
Lottomatica’s social report is dedicated to all of our stakeholders, and
With respect to environmental accountability, the reporting in
this document demonstrates the Group’s extensive efforts, both
in Italy and the United States, to contribute in the reduction of
greenhouse gas emissions. We have maintained our energy
conservation program, and have launched a comprehensive
program of waste separation and recycling of waste products, in
we value the opportunity for open and transparent dialogue and
discussion with them. In our view, the data, which is provided and
explained in a comprehensive and rigorous manner in this report,
clearly shows that the Company’s economic, social, and
environmental contribution is largely positive and benefits all of its
partners.
order to minimise environmental impacts. The initial results
Chairman
achieved by the largest branches are encouraging and have
Lorenzo Pellicioli
Countries in which the Group operates
8
Lottomatica
Group
Operates all
over the world,
employs globally over 7,600
people with a revenue of
2,314 million euros and
850
million euros of net overall
added value in 2010.
Brief profile
Lottomatica Group considers its stakeholders to be any group that represents individuals, organizations or communities that have a direct impact on its activities or who are directly or indirectly impacted by the effects of such activities.
10
Brief profile
MAIN COMMITMENTS, RESULTS ACHIEVED AND INITIATIVES UNDERTAKEN IN 2010
STAkEHOLDER
COMMITMEnTS
RESULTS ACHIEvED AnD InITIATIvES UnDERTAkEn
Regulators
Managing gaming concessions
efficiently
Lottomatica manages 40% of Italian tax revenue from gaming
Ensuring increasing levels of efficiency
with respect to gaming systems
Sharing strategies to combat
problem gambling
Shareholders
Ensuring transparency with
respect to governance
Strengthening capital and return
in the medium term
Increasing use by administrations of the Group’s know-how and ability to
manage the organization of gaming in an efficient and flexible manner
Sharing responsible gaming policies and programs implemented by the Group
with AAMS
Strengthening the company’s balance sheet (shareholders’ equity per share +
24.3%)
Improvement in gross operating profit (+3.%)
Maintaining active investor relations activities (15 meetings and 13 road
shows)
Completing an evaluation of the activities of the Board of Directors
Employees
Respecting diversity
Maintenance of the Group’s overall employment levels
Commitment to building human
capital
Increase in the distribution to staff of the added value produced (+5.2%)
Recognizing merit
Providing permanent positions to % of staff worldwide
Significant decrease in the rate of absenteeism
High levels of corporate welfare maintained (USA)
Maintaining programs to develop human capital (over 38,000 hours of
training provided)
Program allowing employees to return to work gradually after an illness or
accident
Significant decrease in workplace accidents
Players
Protecting players from improper
or harmful gaming practices
Providing games that are
entertaining and safe
Pursuing our product innovation strategy
Improvement in players’ level of satisfaction (average satisfaction for all
games + 2.%)
Further improvement of high standards of security and transparency for
players
Production of tickets with improved safeguards against fraud
Carrying out of the responsible gaming program and the development of best
practices on checking players’ age
Supporting research on the prevention of forms of compulsive gambling and
organizations that deal with the treatment of problem gambling
11
STAkEHOLDER
Citizens
COMMITMEnTS
Offering useful services that
contribute to an improvement in
the quality of life
Further development of a broad-based network of services, providing services
that help to simplify the daily lives of our citizens
Managers and gaming To provide technologically
and service operators
advanced and innovative
products
Increase in the value of transactions (+ 3.%)
Increase in the percentage of satisfied managers from 8% to 81%
Adoption of high-performance technological systems (ITIL at GTECH) for better
and more timely support
Cooperation for responsible gaming solution development
Retailers
vendors
Italian Communities
Relationships that are
characterized by integrity, trust,
respect and excellence
GTECH supports about 15,000 retailers in the United States
Relationships that are
characterised by integrity, trust,
respect and excellence
Development of a team of providers in 1 different countries
Contribution to the expansion of
culture, the protection of our
artistic heritage, and helping
disadvantaged groups of citizens
Contribution to general taxation, with tax revenues from gaming totalling
EUR 3. billion
Commitment to the promotion
of sport and its values among
youth and disadvantaged groups
Adoption of expert systems (ITIL at GTECH) for better and more timely support
Continuing to closely monitor the quality of suppliers
Taxes of EUR 11.5 million paid (Group data)
Direct support of local communities amounting to EUR 11.1 million (Group
data)
Sponsorship of major cultural events in Italy
Contribution to special lotteries to support residents affected by the
earthquake in Abruzzo
Maintaining programs for the disabled, children, research and training
Initiatives in support of specialty sports that best embody the values shared by
the Company: loyalty, respect, sacrifice and team spirit
US Communities
Commitment to support
disadvantaged people in the
community, including promoting
volunteerism amongst its
employees
Through the After School Advantage program, creating 152 computer labs, in
support of local communities in the U.S. and Canada, 18 of which were
launched in 2010.
Employee involvement in initiatives in favor of local communities
Initiatives to support families with social and economic problems
Initiatives to recognize and encourage participation in volunteer activities by
its employees, to support well-being in local communities
12
Brief profile
STAkEHOLDER
Other communities
Environmental
issues in Italy
COMMITMEnTS
Commitment to support
disadvantaged people in the
community
Support for initiatives promoted by various nGOs for the development of
regions whose residents are underprivileged and are suffering from poverty
Contributions to sustainable
development
Using electricity produced from 100% renewable sources (RECS-certified Renewable Energy Certificate System)
Protection of the environment
Reach Out! Program providing financial and material assistance to employees
involved in volunteer initiatives
Use of unbleached recycled paper for 5% of requirements
Development of a program to obtain the En 1001:200 environmental certification
5% reduction of general waste and introduction of waste separation practices
Reduction in greenhouse gas emissions by 5.%
Further development of the Parks for kyoto project (reforestation of 2,2 trees
in a park in Cilento)
Environmental
issues in USA
Contributions to sustainable
development
Protection of the environment
Substantial improvement and expansion of the scope of monitoring
environmental impact
Obtaining (on 1 January 2011) ISO 14001:2004 environmental certification
The participation of 18,000 employees in a computer system energy conservation
program has resulted in a decrease of 55kwh in consumption per person
Increase of the amount of organic waste (.2 tons) that was composted
Reduction in consumption of electricity, natural gas and water at GPC
Reduction in CO2 emissions per unit of product
Compliance with the European Restriction of Hazardous Substances Directive
RoHS in relation to electrical and electronic equipment (GTECH).
Participation in PowerITDown Day
Replacement of plastic materials with biodegradable materials in lunch break
rooms
13
Group activities
World gaming market
Group structure
Compliance and Governance program
1
20
24
25
28
Group profile
The Group’s Operations
Lottomatica Group operates worldwide
in the gaming industry, and is the leader
in the field of lotteries in terms of overall
wagers.
Through
its
subsidiaries,
including GTECH, Lottomatica Group is a
leading provider of lottery and gaming
technology solutions worldwide.
The Group operates in the publicly
regulated gaming market, consisting of
lotteries (online, instant, and traditional
lotteries), sport pools, pari-mutuel and
fixed-odds betting, gaming machines
(i.e. video lottery terminals and new slot
games),
and
(multichannel
interactive
gaming
gaming
services).
Additionally, the Group has leveraged its
distribution and transaction processing
Identity
Lottomatica Group’s identity is based on the principle of sustainable
growth, guided by the conviction that the gaming sector requires responsible development that is mindful of the social issues associated
with this industry. The Company has made this awareness the foundation of its history and identity, which is symbolically represented by
its official logo, conveying the stance of a worldwide integrated gaming
operator and technology provider. The image of the globe in the Company’s name emphasizes its international scope, and the use of gaming
colors and symbols reflects the entertainment aspect of the business.
The tagline “Responsibly Driving Global Gaming” defines Lottomatica’s business approach. Responsibility is a crucial aspect of a business
that primarily involves managing government-regulated games.
competence, expanding its activities to
include commercial services through its
network worldwide.
Mission
Lottomatica Group’s mission is to consolidate and expand its position
as a leading commercial operator and provider of technology in the regulated worldwide gaming market by delivering best-in-class products
and services, with a commitment to the highest levels of integrity, responsibility, and shareholder value creation.
1
Group profile
The Group is organized in four
operational sectors, managed
separately according to the nature of
the products and services provided,
with each segment representing a
strategic business unit:
Lottomatica Italia, GTECH
Lotteries, Gaming Solutions,
and GTECH G2.
The structure adopted by the Group, based on four operating
segments, enables it to adapt readily to the changing global scenario. The operating business units have separate responsibilities
for the management and growth of the business on a geographic basis, maintaining centralized responsibility for businesses
that relate to technology providers of interactive gaming machines, which are still the most comprehensive and independent of
the locations of end markets.
Unlike its major competitors, which focus on individual sectors or
phases of the value chain, Lottomatica Group has a significant
global presence in all sectors that relate to gaming and along the
entire lottery value chain. The Company is therefore best positioned to seize business opportunities in each geographic area.
1
Segments
Lottomatica Italia. In Italy, the Group operates and provides a full
range of games and services. Since 13, it has been the sole
concessionaire of the Italian
The Company has built an extensive real-time online
265,300 terminals
in about 116,500 outlets (including around 31,300
distribution network in Italy, with around
points-of-sale where Lottomatica provides exclusive processing
services for third parties), comprised of tobacco shops, cafes,
gas stations, news stands, and highway rest stops.
Lotto game (recently expanded
with
the
addition
of
10eLOTTO), and since 2004
(through a subsidiary) it has also
been the sole concessionaire of
both traditional lotteries and
instant lotteries (Scratch & Win).
Additionally, as a licensed
operator in a competitive
market, it offers games such
as sports betting, gaming
machines
(the
so-called
newslot machines), vLTs, and remote interactive games (online
betting, online poker, and other skill games). Leveraging its
distribution network and transaction processing experience,
through its subsidiary Lottomatica Italia Servizi (LIS), Lottomatica
provides commercial payment and processing services (i.e. stamp
duties services).
Lottomatica’s network in Italy has managed games and services
involving approximately 3.4 billion transactions, worth €2
billion.
In 2010, the Italian operations segment had revenues of €1.255
million.
18
Group profile
GTECH Lotteries. GTECH is the world’s leading operator of highly-secure online lottery
transaction processing systems, operating in over 50 countries worldwide.
Through GTECH, the Group provides gaming operators with a full range of services, technologies, and products to government sponsored online, instant, and traditional lotteries, through
awards of tenders issued by public authorities. These services and products include gaming terminals, lottery management software, central data processing systems, and communication networks. GTECH also installs systems at lottery-enabled point-of-sale terminals and manages their
operations under separate contracts. Additionally, through its subsidiary, GTECH Printing Corporation (“GPC”), it prints technologically ad-
The GTECH lotteries segment operates and
vanced instant lottery tickets and provides
high-quality services associated with the prin-
provides online equipment, terminals, and services to
ting of such tickets. GTECH develops new systems for lotteries, and provides and installs
24 of the 44 lottery authorities in the United States,
and 52 non-U.S. lottery authorities.
lottery ticket distribution equipment (ITvM).
In 2010, revenues achieved by GTECH Lotteries came in at €842 million.
Gaming Solution. The Gaming Solution segment operates and provides solutions, products, video
lottery terminal services, and systems for the government-sponsored markets; and slot machines, videos and systems for the commercial gaming markets. The Group designs terminals (AWPs
and video lottery terminals) and related software, and provides systems for the management of
these terminals. The Gaming Solutions segment includes Spielo Manufacturing, ULC (“SPIELO”),
a world leader in video lottery markets focused on north America and Europe, and the ATROnIC Group companies, leading suppliers of video lotteries, systems and game content in Europe,
Asia and Latin America. SPIELO holds 10 gaming licences in jurisdictions throughout north America and Europe; ATROnIC is licensed in around 20 gaming worldwide.
In 2010, the Gaming Solutions sector had revenues of €10 million.
GTECH G2. Through G2, the Group provides digitally-distributed, multi-channel gaming entertainment products and services including sports betting, lotteries, bingo, poker, casino games,
and skill games, as well as retail solutions for real-time transaction processing and information
1
systems for the sports-betting market. The GTECH G2 business unit produces interactive platforms for offering remote gaming services. These
activities involve: the design and supply of technologies for the management of transactions and information for sports betting; the development of software and systems that allow customers to offer
games to the public through interactive digital channels; and the design and management of websites through which the Group’s clients
offer games.
In 2010, the GTECH G2 sector had revenues of €5 million.
World gaming market
World
In 2010(1), the worldwide gaming sector had substantially stable
results compared to 200, with net prize payouts of US $ 3 billion. However, in 200 there was a 4.1% decrease in wagers compared to 2008 (US$382 billion) primarily due to decreases in the
casino segment.
Forecasts provided by GBGC include a recovery in the gaming
market starting in 2011, with revenues in 2012 exceeding the
2008 maximum.
The global gaming market in
2010 was stable compared to 2009;
Source: GBGC Analysis, net figures of prize payout
an increase of around 4% has been
forecast for 2011.
(1) Figures for 2010, 2011 and 2012 for the World and Europe are estimated data by GBGC
20
Group profile
After the 2008 decline, which primarily affected casino
operations, lotteries currently make up the largest share of total
activities in the sector.
Worldwide, the dynamics of online games will increase at a faster
rate than other types of games and will account for an increasing
share. The value of online wagers in 2010 came in at US $ 2.3
billion, net prize payouts.
21
Europe
At the European level, net prize payouts came in at US $ 11
billion, with the lottery segment accounting for the bulk of these
receipts, followed by gaming machines.
The forecast for the next few years indicates a more moderate
trend for all types of gaming in Europe, compared to worldwide
figures.
In 2010, the European gaming
market showed a slight negative trend,
reflecting the global financial crisis.
(-3% compared to 2009)
Source: GBGC Analysis, net figures of prize payout. 2010 data not available
22
Group profile
Italy
Despite the financial crisis, in 2010 the gaming sector reported a
higher level of wagers than for the previous year, continuing the
positive trend of the last few years. net prize payouts were €1.4
billion, an increase of € billion (+13%) from 200. The value of
net prize payouts in 2010 came in at €1.4 billion.
The total pay-out was 1.% of wagers. Players received winnings
of over €44 billion, compared to €3. billion the previous year
(+1%).
Source: AAMS 2011, gross figures of prize payouts
Unlike the European gaming
market, the Italian market was not
affected by the crisis and the long-term
positive trend is continuing.
Source: AAMS 2011
23
Group Structure
FIG. 10 - LOTTOMATICA GROUP SPA COMPANY STRUCTURE AS OF 12/31/2010
The registered office of Lottomatica
1%
Group S.p.A. at viale Campo Boario 5/d
B&D Holding di
Marco Drago e C. S.a.p.a. (IT)
Investendo Srl
1.304%
in Rome.
8.%
De Agostini S.p.A. (IT)
5.3%
Figure 10 shows the main direct and in-
Lottomatica Group S.p.A. (IT)
direct shareholdings held by Lottomatica
as of 12/31/2010.
Lottomatica International
Greece S.r.l.
50%
100%
Invest Games S.A. (LU)
84%
L-Gaming S.A.
100%
GTECH Holdings Corporation
(US)
13.33%
Lottomatica Scommesse S.r.l. 100%
(IT)
Banca ITB SpA formerly
IT Bank SpA (IT)
100%
Atronic Americas LLC
100%
100%
100%
Atronic Australien GmbH (D)
Toto Carovigno S.p.A.
Edrin Ltd in liquidation
5%
L.S. Alpha S.r.l. (IT)
Atronic Australia Pty Ltd
(Australia)
100%
Labet S.r.l. (IT)
Lottomatica videolot Rete
S.p.A. (IT)
100%
100%
100%
Empoli Giochi S.r.l. (IT)
Coin-net S.r.l.
Logo S.r.l.
100%
Spielo Italia S.r.l. formerly
Lottomatica Bingo S.r.l.
100%
neurosoft S.p.A. (GR)
100%
Spielo USA Incorporated
3% Consorzio Lotterie nazionali
(IT)
100%
Siderbet S.r.l.
100%
1.58%
100%
Spielo Manufacturing ULC
(nova Scotia)
100%
Consel - Consorzio ELIS
0.1%
Sed Multitel S.p.A. (IT)
100% PCC Giochi e Servizi S.p.A. (IT)
Lottomatica Italia Servizi S.p.A. 100%
(IT)
85% Consorzio Lottomatica Giochi 5%
Sportivi (IT) in liquidation
1.43%
20.25%
24
Lotterie nazionali Holding
S.p.A.
CartaLis Istituto di moneta
elettronica S.p.A. (IT)
43.5%
Totobit Informatica
100%
Software e Sistemi S.p.A. (IT)
Lotterie nazionali S.r.l.
100%
GTECH Germas Holdings
Corporation GmbH (D)
100%
Atronic International GmbH
(D)
85%
100%
100% Lis Istituto di Pagamento S.p.A.
già Lis Finanziaria S.p.A. (IT)
10%
Easy noto S.p.A. (IT)
Group profile
The Company complies with the Corporate Governance Code for Listed Companies
promoted by Borsa Italiana S.p.A., revised in 200 (hereinafter the “Code”) which
incorporates national and international best practices for the corporate governance of
listed companies.
The organizational model was adopted in accordance with Legislative Decree 231/01 and
draws upon the principles embodied in the “Guidelines for Creating an Organization
Management and Control Model, “approved and subsequently updated by Confindustria
on March 2002.
The Company issues an annual report on its corporate governance system, as well as its
adherence to the Code, which is then made available to shareholders, along with the
financial statement documentation. The report is then sent to Borsa Italiana S.p.A., which
makes it available to the public, and it is also published on the Company’s website at
www.lottomaticagroup.com.
Related Party Transactions
The board of directors of Lottomatica Group S.p.A., during its November, 15, 2010 meeting, approved new
internal regulations regarding related party transactions, implemented by Consob regulation no. 17221 of
March 12, 2010. The new regulations provide different procedures in the case of significant transactions (in
terms of quantity) with related parties. These transactions are characterized by different levels of reporting
requirements and by a binding preliminary assessment of a committee of independent directors. Transactions
are classified as “most significant” when the value of the transaction, assets, liabilities, or business branch
surpasses 5% of the Company’s assets or consolidated holdings. It is at the discretion of the Company to
determine the threshold for “less significant” transactions.
Transactions with or among significantly influenced entities are exempt from the new regulations if less than
the aforementioned 5%. However, the influenced entities of the Company (different from subsidiaries) cannot
be significantly active holders of capital of either subsidiaries or influenced entities.
25
The Company is
organized in accordance
with the traditional
model, which consists of
its shareholders
assembly, a Board of
Directors and a Board of
Statutory Auditors.
Governance model
This traditional structure also includes the Executive Committee, the Internal Audit
Committee, and Remuneration Committee, made up of members of the Board of
Directors. In addition there is a manager in charge of drawing up corporate financial
documents, a member of the Board of Directors in charge of supervising the operation of
the internal control system, a manager in charge of the internal control system and a
Surveillance Body, established pursuant to Legislative Decree no. 231 of June 8, 2001.
The members of the governing bodies are mostly male, and 23 out of 24 members of the
board are over 50 years of age.
The Board of Directors
Prospective directors, and those that are eventually appointed, are encouraged to
determine whether or not they will be able to fulfill their duties diligently. In particular,
each candidate is asked to take into account the number of positions they hold on the
boards of directors or as auditors of other companies listed on regulated markets,
including foreign or large companies. These positions are brought to the attention of the
shareholders and the board of directors at the time they are nominated − when asked to
periodically determine that its members meet the necessary conditions to diligently
perform the tasks assigned − and stated in the annual report on corporate governance.
The Board of Directors is not aware of any activity carried out by any of its members in
competition with the Company, nor have the shareholders authorized in advance any
such activity pursuant to Article 230 of the Italian Civil Code.
In addition, parent company De Agostini S.p.A. follows strict procedures in selecting
candidates for director, to be approved by the shareholders, or, in the event of co-opted
directors, by the Board of Directors. To date, these procedures have ensured a diversified
make-up of the Board and a diverse combination of expertise in the areas in which the
Company operates.
2
Group profile
FIG. 11 - LOTTOMATICA GROUP’S GOVERNANCE STRUCTURE
SHAREHOLDERS
BOARDS OF DIRECTORS
ExECUTIvE
Lorenzo Pellicioli (Chairman)
Marco Sala (CEO)
Pietro Boroli
Paolo Ceretti
Marco Drago
Jaymin Patel
nOn ExECUTIvE
William Bruce Turner
GEnERAL MAnAGER
InDEPEnDEnT
Robert Dewey Jr. (Deputy Chairman)
Gianmario Tondato Da Ruos (Lead Indep. Dir.)
Jeremy Hanley
James McCann
Anthony Ruys
Severino Salvemini
InTERnAL AUDIT COMMITTEE
Severino Salvemini (Coordinator)
Jeremy Hanley
Anthony Ruys
Renato Ascoli
ExECUTIvE COMMITTEE
Lorenzo Pellicioli Chairman)
Marco Sala (CEO)
Pietro Boroli
Paolo Ceretti
Marco Drago
Jaymin Patel
REMUnERATIOn COMMITTEE
Gianmario Tondato Da Ruos (Coordinator)
Robert Dewey Jr.
James McCann
STATUTORY AUDITORS
Sergio Duca (Chairman)
Angelo Gaviani (Full)
Francesco Martinelli (Full)
Gian Piero Balducci (Alternate)
Giulio Gasloli (Alternate)
Umile Sebastiano Iacovino (Alternate)
Guido Martinelli (Alternate)
Marco Sguazzini viscontini (Alternate)
SUPERvISORY BODY Ex D.LGS 231/01
Severino Salvemini (Chairman)
Emanuela Chiti
Angelo Gaviani
AUDITInG FIRM
Reconta Ernst & Young SpA
2
Remuneration
Compliance and governance program
The remuneration paid to the managing directors of the
Lottomatica Group S.p.A is a company subject to extensive global
Company and its subsidiaries, and to senior management, is
gaming laws and regulations, as well as substantial oversight
normally associated with the Company’s financial results and/or
worldwide by lottery authorities and related governmental
the achievement of specific objectives using the “management
agencies and bodies. Lottomatica Group S.p.A. is committed to
by objectives” approach. They can also receive remunerations
the highest standard of business ethics and integrity as well as
through “stock granting” plans and/or Lottomatica “stock
compliance with the laws and regulations governing its global
option”, with a three-year average vesting period.
business operations.
The remuneration of executive directors other than managing
directors, as well as that of non-executive directors, is determined
at a fixed rate that is commensurate with the commitment
As a result, Lottomatica Group S.p.A.
adopted a Compliance and Governance Program (the “Program”)
that applies to all Group companies and their employees,
consultants, distributors, and suppliers.
required, and is not tied to financial results or specific objectives
The elements of the Program include: setting standards (Code of
achieved by the Company. Directors also receive a “token” for
Conduct, internal policies and procedures); communicating the
each board meeting or committee meeting in which they
standards (formal training, leadership forums, and periodic
participate.
notifications); providing mechanisms for reporting potential
Directors’ remuneration is determined by the shareholders and,
with respect to special duties, by the Board of Directors.
exceptions and concerns, such as the Integrity Line, a confidential
communication channel managed by an independent provider
that allows individuals to anonymously report activities that may
involve unethical or unlawful conduct; as well as “Ask The Board”
and “Ask The Chief Compliance Officer” email addresses.
The Program also maintains an internal organizational structure
to support the execution of the Program and to monitor the
global business activities of the Group.
28
Group profile
GLOBAL COMPLIANCE AND GOVERNANCE COMMITTEE
GOVERNATIVE AFFAIR COMMITTEE (GAC)
Corporate Compliance within Lottomatica Group is overseen by
The Government Affairs Committee (GAC) is comprised of
the Global Compliance and Governance Committee (the
senior managers of Lottomatica Group S.p.A. and its wholly-
“Committee”). The Committee reports jointly to the Board of
owned subsidiary, GTECH Corporation. The GAC administers
Directors and to the Executive Officer of Lottomatica and meets
and approves consulting contracts and other agreements for
at least once every quarter.
advice on obtaining and/or retaining lottery and other state-
A key tool the Committee uses for managing Corporate
sponsored gaming business through government relations
Compliance is the Lottomatica Group S.p.A. Global Compliance
consultants. It provides direction on the engagement and use
and Governance Plan (the “Plan”). The Plan provides Lottomatica
of government relations consultants in order to achieve
and its subsidiaries with the framework and guidelines for
efficient and cost effective government relations contracts. It
ensuring conformity to the various compliance and regulatory
administers and approves permissible political contributions as
licensing requirements in its worldwide lottery, casino gaming,
well as specific charitable contributions that are requested by a
and gaming services business sectors. The Plan applies to
government official. In this regard, it should pointed out that
Lottomatica and all its subsidiaries, employees, consultants,
in 2010, Lottomatica in Italy did not make any donations to
distributors, key vendors and Company-controlled joint ventures,
political parties or candidates for political office.
and its purpose is to prevent, detect, report and correct violations
of the law and Company policies and procedures.
Code of Conduct
respect and excellence in all relationships in which it does
business, the Core Principles of which are:
Lottomatica Group is a global company operating in a complex and
highly regulated business environment. Our employees live and
To comply with all applicable laws and regulations governing
work in countries all over the world. The Lottomatica Group Code of
worldwide business and expect all contractors, consultants,
Conduct (which was first adopted in September 200 and most
and other third parties with whom the Group does business to
recently revised in September 2010, and approved by the Lottomatica
do the same.
Group Board of Directors) provides information about the standard
of behavior and the level of integrity expected of all employees,
directors, officers and consultants, as well as any third parties, agents
or representatives who deal with or act on behalf of the Lottomatica
Group S.p.A. and its subsidiaries and controlled affiliates.
The Company is committed to the principles of integrity, trust,
To manage activities in compliance with the Core Principles in
all business operations and transactions.
To act with integrity in all relationships and in all workplaces,
avoiding all conflicts of interest between work and personal
activities of employees.
2
To be committed to the protection of the Company’s total
assets, including financial, physical, and intellectual property
assets, and guarantee the accuracy and transparency of all
given information.
To maintain a culture that fosters a safe workplace, equal
opportunity, diversity, communication, and innovation where
everyone is treated with respect, fairness and dignity.
To be committed to corporate social responsibility and, in
particular, enabling customers to provide educational,
cultural, charitable, and philanthropic opportunities to their
citizens.
In order to disseminate and ensure a better understanding of the
Code of Conduct, and consequently of the Company’s
anticorruption policies, a training program involving all new
employees was carried out in 2010, with the assistance of a
consulting agency.
The Code is available and may be downloaded from either the
Lottomatica website (www.gruppolottomatica.com) or from the
GTECH website (www.gtech.com).
30
La strategia di sostenibilità del Gruppo Lottomatica
31
Lottomatica Group’s commitment to responsible gaming in Italy
Our commitment to responsible gaming worldwide
34
40
52
33
The sustainability strategy
of Lottomatica Group
In 2010, Lottomatica Group again confirmed its position as one
of the leading global players in the gambling industry, and as
the primary gambling operator in Italy. This role brings with it
important responsibilities for stakeholders in countries where
the
Group
operates.
The
most
important
of
these
responsibilities is the Group’s responsibility for pursuing
sustainable growth by diffusing its fundamental values at all
levels, and by translating those values into concrete actions and
projects.
In 2010, various guidelines of our sustainability strategy were
consolidated. The changes have been effective, partly thanks
to several important awards received in 200. We have closely
adhered to the principles of transparency and integrity in our
corporate governance system. Consideration of the Group’s
The Group’s global dimension makes the communication and
global dimension and the diversity of the various country laws
sharing of those principles even more important, which is why
to which it is subject, according to the specific area of activity.
its logo and mission also reference responsibility.
Those principles are described in the first section of this report.
Promotion of the sustainable-growth principle reflects our
With regard to the issue of environmental sustainability, 2010
belief that only responsible development will guarantee the
was a year of hard work, especially with regard to the Group’s
future creation of value for all stakeholders. Therefore, the
two main targets: Italy and the United States. The Group has
principle is an essential condition for the life and prosperity of
several branches in the U.S., where it has a high concentration
the Company.
of activities and employees. The Group pursued an important
program of measuring environmental impact and embarked on
the route toward ISO 14001:2004 certification, awarded early in
2011. In Italy, work to measure environmental impact, which
was already at a good stage in 200, has been an essential
requirement for the adoption of an energy management
system that would allow the Group to obtain En 1001:200
certification in 2011.
34
The sustanaibility strategy of Lottomatica Group
As far as relations with the Group’s diverse body of stakeholders
are concerned, the key information for each stakeholder has
been included in the section on social responsibility. This section
also contains an analysis of the Group’s social, cultural, and sportsrelated initiatives for the benefit of the community.
The issue of responsible gaming is a central element of the
Group’s sustainability strategy, both in terms of its Italian
operations and the Group’s other sectors. Its Italian operations
directly affect players, while the other sectors support gambling
operators by providing solutions and tools for responsible
gaming. The Group’s activities intended to promote a responsible
gaming environment are explored further in this section.
This year sees the fourth edition
The national and international awards won by the Group
demonstrate its consistent approach, and its emphasis on
transparent communications, listening to stakeholders, and
providing them with regular reports on Lottomatica Group’s
activities and the results achieved through its sustainability
policies.
Social Report, which in
2008 and 2009 received an A+
accreditation - the highest
possible ranking - from the Global
Reporting Initiative. The
of the
Social Report, together with the
Social Responsibility section of the
website www.lottomaticagroup.com,
is the Group’s most important
reporting channel.
35
Regular updating of the social report and website, and other
updates given during the year in the form of conferences,
interviews, and press releases, ensure that complete information
is provided about the Group’s commitments, and the action taken
to ensure that it meets those commitments. Members of
the public can also contact the CSR Division by email –
[email protected] – with any questions, suggestions, or
requests they may have about the Group’s Corporate Social
Responsibility activities.
Responsibility for defining policies and developing a Corporate
Social Responsibility plan for Italy belongs to the Corporate Social
The Group considers
Responsibility division (European Relations & Public Affairs
Department.) In the United States, the responsibility belongs to
responsibility, together with
the Corporate Affairs Division.
stimulus linked more closely to its
business, as a fundamental
driver with a direct impact on its
corporate reputation and the
confidence of the customers, regulators,
and communities in which the Group
operates; The Group has a very real
vision of how a responsibility-based
approach to business
influence results.
3
can
FIG. 12 - THE SUSTAINABILITY STRATEGY OF LOTTOMATICA GROUP
3
FIG. 13 - MORE THAN A YEAR
38
OF SOCIAL RESPONSIBILITY
3
Lottomatica Italy’s commitment toward
responsible gaming
Lottomatica Group also believes that cooperation with industry
operators is essential, that everyone must contribute to this issue,
and that the industry must guarantee a consistently high level of
The issue of responsible gaming is closely related to the Group’s
protection for players.
core business. Compared to other companies, the Group’s
dedication to responsible gaming is a distinctive feature of its
The validity of the approach and model adopted by Lottomatica
sustainability strategy. This demonstrates the Group’s awareness
Group toward responsible gaming has received important
of the specific nature of its sector, which is one that demands
recognition. The Group was the first operator in Italy, and one of
special attention to protecting customers and more vulnerable
few in Europe, to receive program certification according to the
sectors of the public.
European Lotteries Association’s responsible gaming Standard.
The Group also attained the highest level (level 4) status in
Reflecting this awareness, in 2010, Lottomatica Group once again
renewed its commitment to promoting a safe, legal, and
regards to the World Lottery Association’s responsible gaming
Framework.
responsible gaming environment by taking concrete actions
intended to pursue the “Gioco Responsabile” (Responsible
The program spans 10 areas of intervention. The following
Gaming) program, launched several years ago.
paragraphs describe the main actions implemented during 2010,
and the commitments for 2011, in each of these areas.
The program of responsible gaming is monitored and updated
annually, and is based on three basic principles: prevention,
dialogue, and cooperation.
Lottomatica Group’s efforts are mainly concentrated on the issue
of prevention. The Group believes that the creation of a
gambling environment that not only provides legal and safety
measures for players but also provides balance to ensure that the
gambling experience is always enjoyable, without risk or excess.
Dialogue with key internal and external stakeholders is becoming
increasingly important. Regular discussions with consumers’
associations, scientific federations, universities, research institutes,
national and international experts specializing in gambling-related
problems, and ongoing debate with the Italian national
Autonomous Administration of State Monopolies (AAMS) has proved
to be particularly useful in defining the most effective action to take.
40
FIG. 14 - THE RESPONSIBLE GAMING MODEL
OBJECTIVES
Build a legal, balanced, moderate, and responsible gaming model together with the regulator
Develop activities with respect for the players, the regulators, the community, and the media
GUIDELINES
Enable the player to make informed decisions based on clear, complete information
Guarantee the integrity and safety of gambling processes and infrastructure
Discourage excessive gambling behaviors and events that may harm consumers’ interests
Provide a wide range of products and a gambling portfolio intended to cater to all audiences, in order to prevent competition from illegal
gambling
Protect consumer groups that are particularly vulnerable, due to age or social status
Collaborate with stakeholders in order to build a responsible gaming environment
Promote ongoing studies and research in order to raise awareness and understanding of gambling. Ensure that information is disseminated
to the public
Provide an adequate level of responsible gaming guidance to all employees and agents
Ensure that information about help lines, associations, public and private guidance and counseling centers is disseminated and easily accessible
PROGRAM
Studies and research
Player guidanceand
awareness
Retail channel
training
Employee training
Communications
and marketing
Development
of games
Reporting,
monitoring
and certification
Involvement
and dialogue
with stakeholders
Remote gambling
Support systems
ASSESSMENT AND STAKEHOLDERS
The program is regularly improved and updated, and undergoes an assessment each year by an independent certifying body, to check that
the program and activities comply with the commitments made
The program is regularly improved and updated, thanks to ongoing dialogue and discussions with industry associations and other key players
41
THE RESPONSIBLE GAMING PROGRAM
FIELD OF INTERVENTION
Studies and research
Communication
and marketing
2010 ACTIVITIES
COMMITMENTS FOR
2011
Presentation of market research results on
gambling issues in Italy, in collaboration with
CIRMPA (Interuniversity Center for Research into
the Origin and Development of Pro-social and
Anti-social Movements) of La Sapienza University,
and GFk Eurisko
Presentation of the study “Gambling as a form
of social activity involving creativity and
communication”, in collaboration with the
Foundation for Subsidiarity, Sisal and La
Sapienza University
Participation in conventions for the dissemination
of information on responsible gaming
Organization of a seminar on responsible
gaming in Europe
Periodic monitoring of the key indicators of
responsible gaming
Participation in the European Lotteries
Association’s working group on responsible
gaming
Participation in the European Lotteries Association’s
working group on responsible gaming
Contribution to the EC’s work on the Green
Paper on online gambling
Monitoring of compliance with the advertising
code of self-governance for all corporate
communications
Use of the 18+ logo on all communications
relating to games handled, gambling cards and
scratch and win cards, to highlight ageappropriate access to gambling, together with the
existing logo “Gioca Senza Esagerare”
Monitoring of compliance with the advertising
code of self-governance for all corporate
communications
(Play Without Exaggerating)
Player guidance
and awareness
Print and online campaign to raise awareness
of responsible gaming “Gioca senza
Esagerare”
Informative campaign, in collaboration with
MOIGE (Italian Parents’ Movement), at the 35
local branches of the association. 18+ the first
rule of gambling, aimed at parents with
children under 18, intended to prevent
underage gambling
42
Informative and awareness-raising campaign
on the prohibition of underage gambling 18+
the first rule of gambling, in collaboration
with MOIGE and FIT (Italian Federation of
Tobacconists), aimed at families, children and
retailers, in print and online format, at retail
outlets and in shopping centers.
Informative campaign on the
GiocaResponsabile service available at doctors’
offices, local health authorities, SERD, council
offices and in the specialist press
Support systems
2010 ACTIVITIES
COMMITMENTS FOR
Support and monitoring of the
GiocaResponsabile helpline, which is a first
port of call for gambling addicts and their
families, in collaboration with FeDerSerd
(Federazione Italiana degli Operatori dei
Dipartimenti e dei servizi delle Dipendenze)
Support and monitoring of the
GiocaResponsabile helpline in collaboration
with Federserd
Renewal of the ethical certification of the
gambling websites Lottomatica.it and totosi.it,
issued by G4 (Global Gambling Guidance Group)
Annual renewal of the ethical certification of the
gambling portals lottomatica.it and totosi.it
Continuation of the collaboration, and
involvement within working groups, with
associations, national and international
experts specializing in the treatment of
gambling issues (G4, Gam Res and FeDerSerd)
Remote gambling
Monitoring the use of self-profiling and selflimitation tools, and the responsible gaming
section
Development of
games
Training of retail
channel
Risk assessment of new online and offline
games during the pre-launch phase
Annual independent analysis of the risk
assessment of new online and offline games
Periodic updates on responsible gaming issues,
via newsletters, agents’ portals and
informative material
Awareness campaigns on the issue of
gambling prohibitions for those under 18
Training of agents and new outlets
2011
Continuation of the collaboration with, and
involvement in, working groups with
associations, with national and international
experts specializing in the treatment of
gambling issues (G4, Gam Res and FeDerSerd)
Monitoring the use of self-profiling and selflimitation tools, and the responsible gaming
section
Possible improvements
Risk assessment of new online and offline
games during the pre-launch phase
•
Annual independent analysis of the risk
assessment of new online and offline games
Periodic updates on responsible gaming issues,
via newsletters, agents’ portals and
informative material
Training of agents and new outlets, on
responsible gaming and prohibitions for those
under 18
Informative kit on responsible gaming and the
prevention of underage gambling in
collaboration with MOIGE and FIT
Classroom-based training sessions for the
operators of vLT rooms
43
2010 ACTIVITIES
COMMITMENTS FOR
Training
for employees
Updating of information given to employees,
via the social report
Updating of information given to employees,
via the social report and internet
Updating of specific training for employees
who have direct or indirect contact with
players
2011
Updating of specific training for employees
who have direct or indirect contact with
players
Training of RAM (agents’ trainers) on
responsible gaming
responsible gaming module, as part of the
training offered to new employees
Involvement
and dialogue
with stakeholders
Round tables and working groups with
national and international associations (G4,
GamRes, ELA, WLA, FeDerSerd)
Round tables and working groups with
national and international associations (G4,
GamRes, ELA, WLA, FeDerSerd)
Institutional meetings with the regulator
Institutional meetings with the regulator
Collaboration on market research into
gambling issues (La Sapienza University)
Working group with MOIGE and FIT
Development
of games
Working group with MOIGE and FIT
Publication of the 200 Social Report with a
special section on responsible gaming
Publication of the 2010 Social Report with a
special section on responsible gaming
Press conferences, press releases and
interviews to provide periodic reports on
current activities
Press conferences, press releases and
interviews to provide periodic reports on
current activities
Dedicated Corporate Social Responsibility
section on the website
www.lottomaticagroup.com
Independent updating of the certification of
European Lotteries Association’s standards
Maintenance of 4th level of the World
Lotteries Association Framework
44
Collaboration on market research into
gambling issues (La Sapienza University)
Updating of the Corporate Social
Responsibility section on the website
www.lottomaticagroup.com
Independent updating of the certification of
European Lotteries Association’s standards
Maintenance of 4th level status in the World
Lotteries Association Framework
STUDY: “PROBLEM GAMBLING: PREVALENCE, PROTECTION AND RISK FACTORS”
After the initial study on problem gambling conducted nationwide in 2008, the collaboration with La Sapienza University was renewed through
CIRMPA (The Interuniversity Centre for Research Into the Origin and Development of Pro-social and Anti-social Behaviors and GFK Eurisko),
with the aim of enabling the regular, comparable monitoring of the prevalence of problem gambling in Italy.
The results of the study were presented to the public in November 2010, as part of the plan of action on responsible gaming undertaken by the
Group, in line with the guidelines on correct information introduced by AAMS.
OBJECTIVES
promote understanding of factors that can lead to problem
gambling
to quantify the phenomenon of potential problem gamblers
to outline the profile of potential problem gamblers
to check the trend two years after the first inquiry
to guarantee the proper dissemination of information about
the main protection and risk factors specific to the approach
to gambling
CHARACTERISTICS OF THE POTENTIAl
PROBLEM GAMBLER
plays more games than other gamers
is most often male, and separated
is usually less able to handle money, regardless of gambling
activity
often has at least one parent with similar problems (family
history)
has a tendency to take risks
.
SAMPLE AND METHODOLOGY
RISK FACTORS:
The sample was comprised of 2000 adults aged between 18 and
74 who had played a game with a cash prize at least once during
the past 12 months. The two protocols most common for this type
of study were used – SOGS and PGSI
They are mainly related to the individual, and include:
false beliefs about the probability of winning and their own
control over the game
impulsiveness
low self-control
MAIN FINDINGS
1.01% of the adult population in Italy may have issues with problem gambling
this figure is in line with the findings of national research
the figure is also lower than the one that emerged from the first edition of the study (1.27%), conducted in 2008
The above risk factors can be addressed by working on communication to increase self-awareness, providing information to reduce false
beliefs, and by issuing clear slogans and messages.
45
RESPONSIBLE COMMUNICATIONS
All the communication initiatives promoted by Lottomatica Group comply with the advertising code of selfgovernance, adopted in 2008. The Code guarantees the clarity, completeness and transparency of communications
with players, regardless of the channel used. It complements the mandatory advertising laws already in force in
Italy, and is applied according to internal quality procedures, checked and controlled through audits.
Again, during 2010, there were no episodes of conflicting principles involving the Group, its partners or its suppliers.
THE AWARENESS CAMPAIGN “GIOCA SENzA ESAGERARE” (“GAMBLING WITHOuT ExAGGERATING”)
Once again, in 2010, Lottomatica Group’s commitment took the form of a communication and awareness
campaign on responsible, moderate gambling “Gioca senza Esagerare”, the distribution and scope of which
was reinforced for the third year.
With regard to the press, the campaign involved all the main national newspapers, sports papers and the free
press, leading national periodicals and specialized journals. Particular importance was given to the online
campaign, which involved the main general portals, leading informative sites, sports sites, specialized gambling
sites and the leading social networks.
AWARDS
The “Gioca Senza Esagerare” campaign received a special award early in 2010 (the Ida Augusta Giuliano
Golden Arrow) for the category “Marketing and Relational Communications”, awarded by Assocomunicazione.
In 2011, it received another award, the “2011 Grand Prix Relational Strategies” for the “Distribution and
Services” category, awarded by TVN Media Group for the most effective, innovative relational marketing
techniques.
4
PRESS CAMPAIGN “GIOCA SENZA ESAGERARE”
gioco legale e responsabile
4
PRESS CAMPAIGN “GIOCA SENZA ESAGERARE”
48
THE GIOCARESPONSABILE SERVICE
The agreement between FeDerSerD (the Italian Federation for Addiction Services) and Lottomatica Group has led
to the implementation of GiocaResponsabile, a service offering support and advice to people directly affected by
gambling problems, and their families. By its nature, the service is open to anyone who asks for help, regardless of
the type of gambling involved.
The team of psychologists who respond to the initial contact is supported by expert psychiatrists, psychotherapists,
and legal advisers who can help with specific aspects. If necessary, the service will direct the player to a public or
private service in their local area.
The service can be accessed in two ways:
a helpline number – 800 921 121 - which is free, anonymous, and accessible all over Italy either from a landline
or mobile. The line is open from Monday to Saturday, 9 a.m. to 10 p.m.
the website www.giocaresponsabile.it, which contains a chat room, where players can talk to experts, and a large,
regularly updated database of public and private services all over Italy, that deal with the issue of problem
gambling.
Early in 2011, the GIOCARESPONSABILE service received sponsorship from the Presidency of the Council of
Ministers, Family Policy Department.
The service is a concrete example of collaboration between the public and private sectors, and demonstrates the
commitment of those involved in ensuring that gambling is dealt with in a serious, balanced way.
THE INFORMATIVE CAMPAIGN
The launch of the service at the end of 2009 was accompanied by a national informative campaign, directed
at gambling operators and the network of Lottomatica retail points. The service and the campaign were well
received by the media, which gave a great deal of visibility and support to the initiative, also during 2010.
RESuLTS
4
THE “GIOCARESPONSABILE” INFORMATIVE CAMPAIGN
Se il gioco non è più un gioco
c’è qualcuno che può darti una mano
chiama il Numero Verde GiocaRespesponsabile 800.921.121
oppure collegati a www.giocaresponsabile.it
Se pensi di aver e un problema col gioco o che lo abbia un tuo familiar e o amico, puoi trovare aiuto nel servizio GiocaResponsabile, chiamando
il numero verde 800.921.121, oppure collegandoti al sito www.giocaresponsabile.it
Il servizio garantisce l’anonimato ed è del tutto gratuito; è gestito da esperti psicologi, medici e legali di FeDerSerD, che potranno
fornirti un supporto immediato e orientarti verso la struttura pubblica o privata a te più vicina.
Il servizio GiocaResponsabile è realizzato grazie al sostegno di
50
CAMPAIGNS TO PROTECT CHILDREN
In 2010, Lottomatica Group launched a plan of action specifically aimed at the prevention of underage gambling,
as part of its responsible gaming program. The multi-year plan saw a series of activities launched the same year. In
2011, initiatives to protect children will be intensified.
THE 18+ MARK
In 2010, Lottomatica decided to print the 18+ mark on all its gambling communications, regardless of the
channel used (TV commercials, press campaigns, posters, and promotional materials). The mark is intended
to highlight the age limit for gambling, and accompanies the existing Gioca Senza Esagerare logo. The 18+
mark can be found on all gambling cards (Lotto and Better cards), on all Gratta e Vinci (scratch and win)
cards, and on the gambling websites www.lottomatica.it. and www.totosi.it.
CAMPAIGNS TO RAISE AWARENESS OF PROHIBITIONS TO PROTECT CHILDREN
Under the agreement reached with MOIGE (the Italian Parents’ Movement), aimed at helping to identify the best
ways to prevent underage gambling, 2010 saw the launch of the informative campaign “18+ - the first rule of the
game”.The project began at the end of 2010 and involved the dissemination of informative material throughout Italy,
thanks to the direct involvement of more than 35 local MOIGE coordinators.
OBJECTIVES
to inform parents of the prohibition of games with cash prizes for minors
to indicate the potential risks related to gambling by children
to offer the best tools to discuss the issue with young people
to raise awareness of the impact that parents’ behavior, and approach to gambling, can have on children
MATERIALS
175,000 brochures for parents, offering information and advice about the approach to games offering cash
prizes
10,000 posters, affixed in selected locations by MOIGE coordinators. These locations are the places mostoften visited by parents in their local communities (schools, churches, sports and recreation centers)
RESULTS
The project, which was completed in spring 2011, involved 150,000 adults and 98,000 children in total
51
GTECH’s commitment to responsible gaming
As a business-to-business (B2B) supplier, GTECH’s practice and
commitment is to collaborate with customers and respond to a
jurisdiction’s responsible gaming needs, both with technology
and proven responsible gaming programs. GTECH’s commitment
is coupled with an investment in developing new creative features and functions, including age control, customer relationship
management, player tracking, and analytics to design and implement new solutions to ensure our customers meet and exceed
GTECH develops and offers
gaming technology to assist in
responsible play and enhance
consumer protection . The Company
actively supports agencies and programs
responsible gaming objectives.
committed to researching,
A crucial element of a responsible gaming program is to incor-
preventing, and treating problem
porate mechanisms that allow for informed player choice. GTECH
fully supports this approach, as it is incumbent upon the organizations that participate in this industry to educate players and
gaming.
provide them with accurate information to make more informed
decisions. GTECH partners with its customers (henceforward
named operators) to identify various tools that can be used to
Enterprise Series (ES)
help educate players. It is our objective to work with research ex-
GTECH’s Enterprise Series (ES) system architecture is built to create
perts to combine the Company’s knowledge of the gaming busi-
the ultimate management tool for gaming operators in their ef-
ness with the findings of research-experts. This will allow us to
forts to ensure responsible game play. Operational control over
identify opportunities for next generation products that support
all systems such as processing, reporting, security, and retailer ma-
responsible gaming needs.
nagement is built into the transaction engine of ES. This flexibi-
GTECH has expanded its responsible gaming functionality
through ongoing research initiatives and corporate memberships
lity in design supports our customers as they implement socially
responsible gaming structures and play styles.
in organizations like the World Lottery Association, European Lot-
Specifically,:
teries, and the north American Association of State and Provin-
ES can disable a retailer based on daily sales, either completely
cial Lotteries. The collaborative efforts of partnering with these
associations helps GTECH’s programs and responsible gaming initiatives meet industry standards and achieve best practice benchmarks.
52
for all games or just for specific games.
System-wide sales limits can be set based on specific criteria by
Lotteries. ES can also apply sales limits based on lottery-speci-
fied criteria such as an individual retailer, time of day, or specific gaming product.
ES can also set a liability limit on specific numbers played, in
order to protect the state from having to payout more money
than it has received in sales.
ES can report to the system console, security printer or printed
report, any retailer that has reached a specified sales limit during a given day.
ES enables multiple ticket message options that can support
responsible gaming messages.
ES now accounts for each instant ticket individually. The pack
of tickets in the dispenser remains in a non-active status until
the retailer scans the ticket when it is sold. With the pack (and
tickets within) in a non-active status, the tickets are not eligible for validation. This greatly reduces in-store theft.
Bar Code Readers
GTECH takes age verification very seriously and, bar code readers represent a reliable technological solution and tool, in
which retailers can control the players’ ages in points of sale.
GTECH believes that the more
prepared the retailer and the
jurisdiction’s site staff are, the more
responsible the gaming experience
is for everyone.
53
Detection, monitoring, and self validation
GTECH’s response to consumer protection is focused in two areas – detection/ monitoring
and self validation:
1) For detection/monitoring, GTECH uses the power of a customer’s existing systems to capture
data and analyze it. This determines whether or not consumer fraud may be taking place
and enables corrective action when necessary.
There are reports that examine sales volume
versus claims quantity, late claims/validations,
and excessive
validations/cancellations.
GTECH insists on total integrity and
complete public confidence in its systems,
and recommends third-party internal
control system (ICS) recommendations to
all customers.
2) Self validation allows players to determine
GTECH continues to support agencies and programs committed to
researching, preventing, and treating problem gaming. Specifically, the
Company is a member and supporter of the National Council for
Problem Gaming, which is an organization dedicated to increasing
public awareness, ensuring the availability of treatment, and
encouraging research and education. GTECH also supports the
National Center for Responsible Gaming and its mission to fund
independent, peer-reviewed scientific research on pathological and
youth gambling.
if they are winners without requiring
assistance from a retailer. GTECH’s primary
solution for self validation is Ticket-Scan.
The solution is, in most cases, used for
In Spain, GTECH has expanded its partnership with Organización
Nacional de Ciegos de Espana (ONCE) to a full-service outsourcing
role, which has increased service requirements and support obligations.
both online and instant ticket win
checking. The Ticket-Scan™ can display
winning messages and also gives the options of displaying the actual value of the
player’s win. Worldwide, GTECH has more than 0,000 Ticket-Scan devices deployed
across 22 jurisdictions.
54
GTECH’S RESPONSIBLE GAMING COMMITMENTS AND ACTIVITIES
AREA OF APPLICATION
2010 ACTIVITIES
2011 COMMITMENTS
Research
and Prevention
GTECH continued as a member of the national Council on Problem
Gambling (nCPG), an organization based in the United States that is
an advocate for programs and services to assist problem gamblers and
their families.
Continue as an active member
of the nCPG.
Best practice
guidelines
GTECH continued to refine and improve best practice guidelines for
responsible gaming in the areas of age verification standards and
technology, self-service terminals that recognize player identification
cards, and player registration programs to ensure responsible play. A
series of toolkits has been developed to share these best practices with
sites and customers worldwide.
Improve best practice guidelines
for responsible gaming.
Transparency
for lottery players
In an effort to strengthen consumer protection, GTECH continued to
research a lottery terminal feature that simultaneously shows the
retailer clerk if the player has a winning ticket during ticket validation
at clerk-activated terminals. The Company is also implementing new
ticket printing methods to protect players and lotteries alike from
fraud.
To explore new ways to give
more transparency to players in
jurisdictions around the globe.
Systems
Development
The integrity of validation and prize information in a gaming system
is critical for customers. GTECH’s Enterprise Series (ES) includes a
number of control mechanisms aimed at ensuring the reliability of
validation data in the system. ES minimizes the risk of fraud by
offering an exceptional level of management control over system
capabilities.
Continued refinement of
GTECH’s Enterprise Series to best
manage all facets of gaming
operations and to facilitate the
execution of responsible gaming
programs.
55
GTECH G2’s commitment to responsible gaming
GTECH G2 meets responsible gaming objectives through
compliance with relevant legislation, industry standards and
codes of practice, and by providing products and services that
enable gaming operators to act in a socially responsible manner.
Moreover, the Company offers operators a total package of
responsible gaming tools and expertise so they can offer their
players a responsible gaming experience together with the
necessary tools to restrict or prohibit gaming where a player may
be underage or may be suffering from a gambling problem.
GTECH G2 strives to continuously strengthen its responsible
gaming offering through research and development and the use
of cutting-edge technology to provide an evolving solution that
grows even stronger over time.
GTECH G2 provides a guide to responsible practices that are
GTECH G2
available to each player, such as age verification, self deposit
is collaborating
with the London-based independent
standards organisation e-Commerce
limits, and self exclusion. Self exclusion is a formal practice that
prevents a player (on demand) from accessing gaming websites
for a preestablished period of time at their request. The selfdeposit limit facility also enables players to limit the amount of
money that they are able to deposit into their account on a daily,
Online Gaming Regulation and
weekly and monthly basis. The company’s policy encourages
Assurance (eCOGRA). eCOGRA audits
contact the customer support team.
GTECH G2’s casino, poker, and
gaming management systems on a
regular basis.
5
players who believe that they may have a gambling problem to
An important strategy for GTECH G2 is to assimilate a responsible
gaming awareness into the corporate culture in order to
influence the company as a whole to think and breathe
responsible gaming. Games developed by GTECH G2 focus on
maximizing the player’s overall entertainment. The aim is to
involve, with thematic and developed games, the predilection of
Gaming Management System (GMS)
The GMS, the main player account management system, is the system that coordinates GTECH G2’s
responsible gaming features and functions. From this system, all settings are made and all limits are set. GMS
is also the system responsible for enforcing most of the limits, and delegating that responsibility elsewhere when
necessary. GMS as a system and the responsible gaming features in particular are very flexible and easy to
configure, which enables tailor-made responsible gaming programs that would suit any of our customers
independent of jurisdiction or local laws.
GMS contains functionality that boosts the responsible gaming initiatives. However, two particularly
interesting areas stand out: age and identity verification – because underage gambling or early in-life exposure
to gambling could lead to problem gambling later in life. Identifying early signs of problem gambling is done
initially through a self test, offered by GTECH G2 via established third-party integrations. This early
identification can also take place in a more advanced way by evaluating data and changes in a player’s
gambling behavior. This analysis aims to identify players at risk in an early stage and offer them help into
changing their gaming habits.
people who seek gaming entertainment as a leisure activity,
rather than adamant gamblers. GTECH G2 games areintended to
motivate customers to play for the sake of enjoying themselves at
every turn rather than to heedlessly gamble in the blind pursuit
of a large prize win.
GTECH G2 also strives to deepen the knowledge about problem
gambling within the company and also to supply research
institutions and universities with data and knowledge from the
real life of gambling. Lottomatica Group is also supporting
ongoing research initiatives, and participates in events organized
by organizations like the World Lottery Association, European
Lotteries, and the north American Association of State and
Provincial Lotteries, and the European Association for the Study
of Gambling (EASG).
5
TOOLS AIMED AT PLAYER PROTECTION
Financial protection
Time protection
Wager limits
Loss limits
Losses are defined as the difference between the sum of all wagers and
the sum of all wins.
Deposits limit
Defines how much the player is actually allowed to deposit in the time
frame or per occasion.
Time limits
Defines the duration in which the player is actually allowed to play.
Session time limits
Additional protection
Defines how much the player is allowed to wager during a given time
frame. Wagers are defined as the difference between the sum of all
purchases and the sum of all refunds. Wins do not affect the players’
accumulated wager.
Self exclusion
Cooling-off periods
Wagering history
Reality check
Session limit is an interval in minutes. This means that the player can
only be logged in, or can only be active in a game session, for the given
period of time.
Self exclusion is a way for the player to totally exclude himself or herself
from all gaming activity and is created by the player, or on behalf of the
player, by a GMS admin user.
To hinder the players from making ill-considered increases to their limits,
operator-created cooling-off periods can be used. This means that a
raised limit will not become active immediately, but only after a
predefined period has elapsed.
When it comes to gambling, players aren’t always aware of the true
amounts of their winnings and losses, or may not wish to acknowledge
the true extent of their losses. The wagering history, provided by GMS,
is seen by the player and includes all deposits, withdrawals, and wagers
in a desired time span for up to a year back.
A reality check uses a pop-up window to tell players how much time they
have spent playing, and how much they have wagered, won, and lost
during the same period.
State lotteries in Europe and north America use GTECH G2
third-party integrations are also utilizzed to provide preventive
poker software and the full spectrum of responsible gaming
detection software.
functionality offered in that product. As part of that offering,
58
GTECH G2’S COMMITMENTS AND ACTIVITIES TO RESPONSIBLE GAMING
AREA OF APPLICATION
2010 ACTIVITIES
2011 COMMITMENTS
Research
and Prevention
The company maps out potential trusted and
internationally recognized academic experts and
institutions with which to establish relationships.
GTECH G2 shall focus on establishing relationships
with the academic world. Start initial discussions,
outline the foundation for such cooperation and
hopefully start to share experience and knowledge.
Best practice
guidelines
GTECH G2 distributes guidelines and information for
setting up the existing responsible gaming solution.
The work to create guidelines will continue. First
out are guidelines for external portal developers
and a more ambitious guideline on how to best
setup the complete offering.
Game systems
and game design
All separate products are submitted to a centralized
control. Games are created with the goal of
developing fun, honest games that focus on
maximizing the player’s entertainment, rather than
focusing on the gambling aspect. GTECH G2 games
avoid graphics, themes, sounds, or creative content
that would appeal to children.
Back office
The back office develops new functionality and
strengthens the existing solution.
The responsible gaming team examined new
methods to protect players and prevent underage
gaming.
GTECH G2 will continue to be adjusted and
directed toward the centralized approach and
functionality will be released continually during
the year.
The developmental goals continue to influence
the game design.
Implement functionality to prevent underage
gaming. Implement and release new functionality
that can be used by players and operators to
strengthen the protection even further and to
improve the existing solution’s usability and
simplicity.
5
. The Gaming Solutions’ commitment to responsible gaming
gaming tools that help customers achieve their social
responsibility objectives and also enhance their image.
The responsible gaming solution is offered as a value-added
requirements. For example, only those who use responsible
gaming tools can play a bonus round. In 2010, the company
worked on these subjects with researchers in the Psychology
Department at the University of new Brunswick in Fredericton,
new Brunswick, Canada, as well as with the Computer Sciences
central system. The development of
Department at Dalhousie University in Halifax, nova Scotia,
its responsible gaming solution has been supported by extensive
Canada. SPIELO also worked with its longtime customer, Svenska
research with many customers, players, and retailers, as well as
Spel in Sweden, in the development of their responsible gaming
by validation with experts.
solution.
TM
module of the InTELLIGEn
Another company in the Gaming Solution Division, ATROnIC
As part of INTELLIGEN’s
optional responsible gaming module
International, is also involved in responsible gaming initiatives.
ATROnIC International is active in International Casino and
Amusement With Prize (AWP) markets. In both market segments,
player protection policies and responsible gaming initiatives are
motivating players,
special bonuses can be made
driven mainly by government institutions. Consequently, the
accessible only to those who use
requirements.
to assist in
responsible gaming tools.
Based on this research, one of the guiding principles behind
SPIELO’s solution is the voluntary use of responsible gaming
features by the player. Science has proven that people can control
their behavior better when they are empowered to decide for
themselves, and when they are motivated to do so. SPIELO’s
responsible gaming solution offers incentives for the player to
create such motivation. The incentives are part of the game
software and consist of additional game features, such as
bonuses, that are accessible only by players who fulfill certain
0
products must comply with the policies, initiatives, and
regulations that apply to each respective market segment. Every
product offered in a specific market fully complies with all market
La strategia della sostenibilità del
Economic
Grupporesponsibility
Lottomatica
1
Economic responsibility
4
3
In 2010, Lottomatica Group achieved increased revenues and operating income, up by
.3% and 5.3%, respectively. In spite of a weak global recovery, the Company continued
to experience growth, allowing it to improve profitability in all sectors, particularly in the
Gaming Machine market in the Italian Operations segment.
An analysis of the wealth that was generated
TAB. 1 KEY ECONOMIC INDICATORS FOR THE LOTTOMATICA GROUP
and distributed by the Company is represented
by the production and distribution of added
(thousands of euros)
2010
2009
value. Added value is the value that an
2,314,03
2,1,85
economic entity generates through the use of
Operating income
385,8
3,421
EBITDA
812,23
83,83
45,358
112,354
Revenues
production factors, which it distributes not
only amongst individuals who are factors of
production, but also other stakeholders, such
net profit
as public administration and local communities.
Therefore, there are two prospectives on this
concept, namely the production of value and the remuneration of stakeholders.
Once added value has been calculated as the difference between the value of production
and intermediate costs, an evaluation of the shares that are to be distributed may be
made. Depreciation and devaluations are deducted from gross overall value added, to
calculate net overall added value, which is the wealth that the Company distributes to the
social and economic system in which it operates. The system includes the following
stakeholders: employees, the public administration, lenders, shareholders, the community
and the Company itself.
4
TAB. 2 THE CREATION OF ADDED VALUE BY THE LOTTOMATICA GROUP
2010
2009
A) Total revenues
2,314,063
2,176,857
Revenues from ordinary production
2,314,03
2,1,85
B) Intermediate costs of production
985,874
905,537
Consumption of services, raw and ancillary materials and consumables 15,10
838,15
Services by third parties
15,253
144,04
Capitalized production costs
(8,53)
(,324)
1,328,189
1,271,320
(5,885)
(,40)
Losses (gains) on exchange transactions and other financial charges
10,334
34,34
Deferred taxes
(35,08)
(55,58)
1,262,838
1,300,181
Amortization, depreciation and write-downs
412,548
40,02
NET OVERALL ADDED VALUE
850,290
893,155
GRADED InCOME STATEMEnT
GROSS TYPICAL ADDED VALUE
Financial income
GROSS OVERALL ADDED VALUE
In 2010, the overall gross added value came in at 1,22,838 thousands of euros, while the
overall net added value was 850,20 thousands of euros. The five percent decrease was
primarily due to greater financial charges incurred by the Company during the year.
Lottomatica conducts business hardly affected by climate changes. nevertheless, as
reported at page 158, Lottomatica engages Carbon Disclosure Project (CDP) which is
aimed at promoting the disclosure of greenhouse gas emissions and at communicating
these data to inventors. The related information can be an evaluation element of risks
and opportunities.
5
Fig. 15 represents the distribution of net added value, namely the wealth produced by the
Group in favor of its stakeholders. The largest percentage of net added value was 53%,
up 5.2% over the previous period, and was allocated to employees in the form of wages,
salaries and allocations to severance pay.
Approximately 20% of the added value was paid to the Government in the form of direct
and indirect taxes, a decrease in the amount paid last year. The decrease was mainly due
to a marked decrease in the absolute value of
TAB. 3 DISTRIBUTION OF ADDED VALUE BY LOTTOMATICA GROUP
current taxes (-24 euro million), which also
absorbed the significant increase in the
relative value of indirect taxes (+ 32%).
2010
2009
% Change
A) Staff remuneration
450,388
428,305
5.2
Staff costs
44,825
424,12
3,53
4,18
B) Government remuneration
171,455
190,611
Direct taxes
151,182
15,23
20,23
15,34
172,013
151,518
Short-term capital expenses
,40
11,0
which did not include a distribution of profits
Long-term capital expenses
12,553
13,811
but only one share for every fifty shares held.
D) Risk capital remuneration
-
106,660
Distributed profits
-
10,0
E) Company remuneration
45,358
5,694
Retained earnings
45,358
5,4
F) Transfers to the local community
11,076
10,367
Local taxes and duties
2,108
-
Sponsorships
,802
,1
Assistance, gifts, charitable donations
1,1
1,11
TOTAL overall net added value
850,20
83,155
Amortization, depreciation and write-downs
412,548
40,02
1,22,838
1,300,181
Severance pay
Indirect taxes
C) Borrowed capital remuneration
TOTAL overall gross added value
Borrowed capital remuneration represents
20.2% of net overall added value, for an
increase of around 13% over the previous
(10.0)
year, due to an increase in interest payments.
The risk capital share was zero in 2010, as a
13.5
>100
6.8
(4.8)
(2.)
result of the Company’s 2010 dividends policy,
1.3% was allocated to assisting local communities, in the form of
sponsorships (sports, cultural, social), taxes and gifts. The %
increase since last year is mainly due to an increased contribution
to the community in the form of local taxes.
La responsabilità
Social responsibility
sociale
Regulators
Personnel
Customers
Retailers
Suppliers
Communities
0
82
100
11
128
131
The regulators
Lotteries operated under State Control
Whereas in the first model the agency which manages is
organized, owned, and regulated by government, in this second
Different organizational models around the world
Lotteries are enterprises that are established, authorized, and
model the company which manages the lottery is set up and
organized as a private company
regulated by governments in order to protect players from illegal
operators and ensure responsible policies, specific monitoring,
and safeguards.
Lotteries operated under the direct auspices of a government agency
IUnder this model, a new government agency is created when a
Traditionally, there have been three basic organizational models in the world:
lottery is established and is vested with the sole responsibility of
overseeing and managing most of the day-to-day activities of the
lottery. As a public agency, the lottery is generally required to follow
the same standard civil service rules that dictate such issues as salary
lotteries operated under the direct auspices of a
government agency;
lotteries operated under state control;
lotteries operated by private companies under
license from government agencies.
levels and rules and regulations for procuring supplies and services,
rules that apply to other government agencies. Many European
lotteries were originally established following this model. This
Lotteries operated by private companies licensed by government
model was copied and adopted by most of the first modern
agencies
lotteries in the United States. However, now that governments
have adopted a more business-like approaches, this model is
In Italy, this model has been adopted by the Autonomous
increasingly in less popular.
Administration of State Monopolies (AAMS) that is in charge of
the regulation and control of the entire gaming sector, through its
Gaming Directorate. It controls industry activities, overseeing the
organization of all gaming operations, looks after the
administrative management of concessions, controls the fairness
0
and consistency of tax revenues, issues directives and regulations
and organizes procedures for granting new concessions through
the organization and management of public calls for tender.
Through calls for tender, the exclusive licenses can be granted to a
sole company or to a few entirely private competing companies
that deal with day-to-day lottery operations and with core
functions, such as Lottomatica in Italy. This pattern guarantees
expertise, a more flexible management style, and minimal risk for
government agencies. This model is being introduced in several
countries, as the Italian gaming market is seen as a best practice for
others to follow.
Because of changing needs in the gaming industry, the distinction
between customer and supplier is becoming more flexible. The
model adopted for the agreement with GTECH and Organizaciòn
nacional de Ciegos Espanoles (OnCE) in Spain and northstar in
Illinois (in the United States), Technology and Solution Gaming
Provider is involved in the indirect Lottery’s management,
considering risks and important investment needed both to set up
new Lotteries and to convert companies in existence.
The Spanish Organización
Nacional
de
Ciegos
Españoles (ONCE) is a non-profit corporate
organization that focuses its activities on the
improvement of the quality of life of people with
blindness or severe visual impairment from all
over Spain and abroad through close cooperation
with Latin American blind associations. Originally
a decree bestowed on ONCE was the right to sell
the so-called coupon for the blind so that its
members could earn a living. Today, lottery game
products are ONCE’s economic driving force.
ONCE is a socially focused and democratic
institution, concerned also about the welfare of
people suffering disabilities other than blindness.
Its activities are based on the ideals of equality
and participation and all these goals are achieved
with the invaluable support of the Spanish
Finance and Inland Revenue, Labour and Social
Affairs and Equal, and Internal Affairs
Departments.
Spain: GTECH’s agreement with ONCE
GTECH’s agreement with Organización nacional de Ciegos Espana
In 200, GTECH’s partnership with OnCE took on a new
(OnCE) represents this expanded business model that now
dimension, increasing GTECH’s services and support of OnCE’s
positions companies in the middle between being “just a
expanded lottery brand – GanaYa! This brand was created by
supplier” and being “just an operator”.
GTECH and partner Logista S.A., Spain’s leading integrated
logistics operator, whose joint venture would expand the OnCE
retailer network beyond street sales and kiosks, and implement
sales channels in thousands of new retailers such as tobacco
stores, news stands, gas stations, and other establishments.
1
Through this partnership, OnCE maintains both a traditional role
as technology provider and as gaming seller.
GTECH provides OnCE with an extensive range of services for the
GanaYa lottery network, including all of the technology (central
systems, communications network, terminals, and back office
support); field service (technical call center and the management
of installation, and repair services); and marketing (product
development, trade marketing, and advertising).
The structure of GTECH’s GanaYa agreement with OnCE enables
the lottery to optimize the risk reward model between
themselves and their joint venture partner.
The State of Illinois: Northstar Lottery Group
In the United States, more and more jurisdictions are also
looking to privatize their lotteries as a way to increase
revenues. The skill set, technological know-how, and depth of
operational experience that GTECH brings to the table
provides these jurisdictions with a viable option to successfully
transfer operations securely and confidently.
Illinois’ new business model will give northstar Lottery Group
much more flexibility and accountability over lottery
operations. Although the Illinois Lottery will maintain control
over all significant business decisions, northstar will be
responsible for lottery-game development, supply of goods
and services, and marketing and advertising. In addition to
providing lottery technologies to the state, northstar will also
have the opportunity to implement innovative-marketing
initiatives and management tools to maximize revenues and
increase efficiencies.
2
The Illinois State Lottery was established in
1974 issuing the first lottery tickets and lottery
drawings. The following year, the first instant
game was introduced. Lotto was introduced
featuring a field of 40 numbers in 1983. In
2009, players purchased 102,491,802 winning
tickets and claimed more than $1.1 billion in
prizes. In 2010, Illinois was the first U.S.
jurisdiction to send out a Request for Proposal
that called for a private manager to run day-today lottery operations and its core functions.
Northstar Lottery Group was chosen to be the
private manager for the lottery. The State of
Illinois’ partnership with a private manager
represents a paradigm shift for the U.S. lottery
industry as a whole.
Italy: the Italian State Monopolies Authority (AAMS)
In Italy, the Italian State Monopolies Authority (AAMS) performs
administrative tasks that are related to the regulation and control
of the entire gaming sector.
The AAMS fulfills its role by devising guidelines for the dynamic
and rational development of the gaming market, and by
continuously monitoring gaming operations to ensure that they
comply with regulations. They also act to combat any illegal
activities, and to ensure the optimization of the AAMS’s tax
revenue.
The direct presence of the State does not
exclude the contribution of individuals.
Rather, the State seeks to create an open,
competitive market, in strict compliance
with regulations. It does so through
collaboration between the public and
private sectors, ensuring that consumers
receive high quality and highly secure
The purpose for the presence of the State in the
gaming sector is to secure tax revenue at a level that is
compatible with the protection of other important
public interests, namely the protection of consumers
with particular attention to minors, and combating
services.
This role is clearly demonstrated in the
illegal practices.
working model of the public gaming
market, which AAMS has designed and is progressively
implementing. The State controls network infrastructure,
entrusting the marketing of games to a number of private
entities, which compete to provide high quality services, and
ensures that there is a perfectly competitive market.
3
new regulations issued in 2010
AAMS - Legal and Responsible Gaming
Italian law no. 220, issued December 13, 2010, which contains
“provisions for the preparation of the State’s annual and multi-
The significant growth that
has recently taken place in the
gaming market has resulted in
a change in the way the AAMS communicates with
the public, starting with its corporate logo. More
specifically, in 2010 the “Safe Gaming” slogan that
has always been used alongside the graphic symbol
of the top-half of a ship’s helm, was replaced with
“Legal and Responsible Gaming”,. The new slogan
is considered more suitable for the purpose of communicating the institutional message.
year financial statements (2011 Stability Law) has important
repercussions for various aspects of regulations on public gaming
through the physical network, which include: combating illegal
gambling, plans for integrating public gaming concessions that
involve the physical network in order to comply with certain
obligations, including corporate obligations, the expansion of
authority with respect to control and monitoring concessionaires
by the AAMS, inspections conducted at points-of-sale to verify
compliance with statutory/regulatory provisions.
For the first time, there is an explicit prohibition on allowing
minors under the age of 18 to play any public games with cash
This solution was chosen to express the Administration’s public aim with even greater consistency
and suitability. “Legal and Responsible Gaming”
is intended to communicate a strong consistent
message, focussing on:
prizes. The owner of a point–of-sale who allows minors to gamble
could face an administrative fine, between €500 and €1000, and
a suspension of operations for up to 15 days.
In reference to fighting the illegal distribution of games,
authorities will re-emphasize the obligation to hold licenses,
1. legality and security, which must be the hallmark integral to the public gaming sector, with
the dual aim of making the gaming products
that are authorized by the State even more recognizable, and strengthening efforts to combat
improper gaming practices;
permits, and national concessions in order to operate gambling
operations involving receipts of money. , and the immediate
closure of any business whose owner or operator is found to be
lacking these qualifications.
The law also provides a special inspection plan, involving at least
30,000 inspections, for 2011. It focuses on on-line gaming and
2. the Administration’s social responsibility, in relation to its governance role, and the responsibility of each player, resulting in a measured,
moderate and responsible approach to gaming.
4
betting, but especially on gaming machines. For this purpose, a
database will be created to record the number of machines, the
types of premises in which they are installed, and who owns
them.
Finally, the law provides for the adoption of action lines for
AAMS throughout 2011. In consultation with the Ministry of
Health, AAMS developed the law, which focuses on preventing,
tackling, and recovery from pathological behavior as a result of
compulsive gambling.
Through these actions, the process, that began with Law no. 88
on July , 200 (Community Law of 2008, which will come into
force in July 2011), on remote gaming has been completed,
providing a series of measures for harmonizing matters with EU
provisions, with particular attention to ensuring the legality and
security of gaming, and protecting consumers and minors. With
reference to the last issue, the AAMS adopted a “Service Charter
on remote gaming” that defines a series of obligations for
concessionaires. The obligations relate to consumers in terms of
information, communication, protection, security, legality, and
quality of service.
Source: AAMS
Lottomatica Group’s contribution to tax revenues from gaming
in Italy
In Italy, the collection of monies from gaming activities increased
from €54.4 billion in 200 to €1.4 billion (equal to almost 4% of
GDP) in 2010. This was an increase of approximately 13 percent..
Players received winnings of over €44 billion, totaling 1.% of
funds collected.
The corresponding tax revenues totalled €. billion (compared to
€.4 billion in 200), of which €1.2 billion were exceptional
revenues, consisting of lump-sum payments from concessionaires
and €8. billion were ordinary gaming revenues.
5
Of a total of €8. billion in ordinary tax revenues from gaming, Lottomatica Group’s
specific
contribution
was
approximately €3. billion,
which is equal to 40% of total
tax revenues from gaming.
A
significant
and
ever-
increasing portion of this total
Lottomatica’s contribution to general tax revenues in
Italy totalled €3.6
billion, or 40% of total income
received by the Italian State from gaming.
amount is produced by the
lotteries, most of which are the instant type (Scratch & Win). €1.5 billion are from
instant games, and €1.2 billion is from the lotto game.
On December 31, 2010,
the absolute majority of share
The ordinary shares of Lottomatica Group S.p.A. are listed on the
Italian Electronic Stock Exchange (Mercato Telematico Azionario
capital (59.7%) was held by
- “MTA”). The Italian Electronic Stock Exchange is managed by
De Agostini S.p.A., which in turn is
included in the FTSE MIB 40 index. ADRs (American Depositary
owned by B&D Holding
of Lottomatica Group, and they are traded on the United States
the Italian Stock Exchange, and Lottomatica Group’s shares are
Receipts) are negotiable certificates representing ordinary shares
over-the-counter market. The Bank of new York Mellon is the
di Marco Drago e C. S.a.p.a..
depositary bank that manages these ADRs.
The second largest shareholder is Mediobanca, with 12.%, while
the third largest shareholder is Assicurazioni Generali with 2.%.
At that date, Lottomatica Group held 3,1,552 of its own shares,
which is equal to approximately 1.84% of its share capital.
On April 30, 2010, Lottomatica Group’s shareholders’ meeting
authorized the purchase of a maximum of 34,403,04 ordinary
shares, conducted on one or more occasions. It also authorized a
different number representing 20% of the share capital, in the
event of the resolution and carrying out of share capital increases
and/or reductions for the authorized 18 month period, taking
into account the shares that may, from time to time, be owned by
subsidiaries, and in any event within the limits of the law. During
the course of 2010, the Company did not make use of this
opportunity, and accordingly did not make any purchases during
the year.
La responsabilità sociale
In light of trends affecting economic and asset-
The free allocation of its own shares will
related issues during 2010, and given the significant
2011. With respect to the 2010 financial
be carried out during the month of May
year, there are no plans to distribute
investment plan completed during the course of the year,
the Ordinary Shareholders’ Meeting held on April 28,
dividends.
In
2010,
the
Group’s
debts
were
refinanced, mainly by issuing a senior
2011, approved the free allocation to shareholders of
debenture loan of €500 million, executing
Lottomatica Group’s own shares in its portfolio, in the
billion. After these transactions, Moody’s
a loan agreement for a total of €1.4
Investors Service and Standard & Poor’s
proportion of one share for every 50 shares held.
confirmed the Group’s investment grade
rating, with a stable outlook, of Baa3 and
BBB- respectively.
The average share price during 2010 was €12.1. Over 15 million shares were traded
during this period, with a daily average of around 2,053. Lottomatica Group’s
capitalization on December 31, 2010 was approximately €1. billion.
FIG. 18 PERFORMANCE OF LOTTOMATICA GROUP‘S SHARE IN 2010
COMPARED TO SEVERAL SIGNIFICANT INDICES
Source: Bloomberg Italian Stock Exchange
8
TAB. 4 SOME RESULTS FOR
2010 PER SHARE
(euro)
2010
2009
Shareholders’ equity per share
0.00
0.45
EBITDA per share
4.2
4.5
Operating income per share
2.24
2.13
13.1
11.03
0.00
0.4
Shareholders’ equity per share
Unit dividend
Since March 19,
TAB. 5 COMPANY STOCK EXCHANGE PERFORMANCE
(euro)
2010
200
1,5,03,540
2,08,3,2
12,015,33
12,015,33
Price on 31.12
.28
14.03
Minimum price
.1
11.82
Maximum price
14.
1.5
Capitalization as at 31.12
Share capital as at 31.12
The board of directors consists of 13 members, six of which have executive functions, and
seven of which have non-executive functions. Of the seven non-executive members, six
are considered independent under the relevant statutory provisions and the most
stringent principles and criteria for independence, according to the Code of Conduct
2010, Lottomatica
Group’s shares have
been part of the
FTSE4Good index,
which includes
securities selected
promoted by Borsa Italiana S.p.A.
on the basis of principles
The Board of Directors adopted a charter that requires its operations to consistently
of financial ethics
comply with the principles of the Code of Conduct promoted by Borsa Italiana S.p.A.
The Board of Directors has members who represent controlling shareholders. The
Company has adopted procedures for appointing Board members, as to ensure the
relating specifically to
social and environmental
presence of directors who represent minority interests. These procedures comply with
Legislative Decree no. 2 from January 2, 2010, which implement the 200 European
responsibility.
La responsabilità sociale
Directive no. 3 on shareholders’ rights.
Currently, there are no directors that
represent minority interests, since the
Board
was
appointed
by
the
Shareholders’ Meeting on the basis of a
single list of candidates presented by the
majority shareholder.
During 2010, the Board of Directors met
five times. Since the Group is controlled
by a family, the Company did not provide
special arrangements or services for its
shareholders,
or
any
collaborative
activities or initiatives.
Lottomatica Group promotes the most
extensive and informed participation of
its shareholders during Shareholders’
Meetings, and more generally in the
Company’s activities. The by-laws are
promptly updated to reflect and govern
the
tools
shareholders
that
that
protect
are
minority
periodically
introduced by law, adopting national
and international best practices with
respect to corporate governance. One of
the
tools
available
to
minority
shareholders is the opportunity to add
items to meeting agendas.
80
The process of evaluating the activities
of the Board of Directors
In 2010, the Board of Directors conducted a process of evaluating the
adequacy of the size, composition and performance of the Board and
Internal Committees (the Executive Committee, the Remuneration
Committee, Internal Audit and Compliance Committee). The process,
which was coordinated by the Lead Independent Director, involved the
completion of a self-evaluation questionnaire, which focused mainly
on the remuneration of the directors. The process was in line with the
recent recommendations made by Borsa Italiana, and a series of
initiatives being carried out in the European Union. In particular, the
analysis concentrated on the evaluation of the structure, the
composition and effectiveness of the Board and the Committees, the
manner in which meetings were held, flows of important information,
the decision-making process, relations with the management, strategies
and performance objectives. The self-evaluation process benefited from
the results of comparative national and international surveys
conducted by associations, universities and consulting firms. The
results of the survey were disclosed to the Board of Directors, which
share it with the Board of Statutory Auditors.
Investor relations
The Company has adopted best practices to protect the accuracy of internal and external
information. The Investor Relations Officer is responsible for relations with investors and
shareholders, with particular attention to institutional investors and shareholders. Under
the supervision of the Chief Financial Officer, this person maintains relations with the
financial community, ensuring that communications are correct, continuous, timely, and
complete with respect to the Company and its subsidiaries. Communication should
Lottomatica Group ensures that communications
are correct, continuous, timely, and complete with
respect to Company events that are significant for
comply, with the procedures governing
the processing of information that could
have a significant effect on the price of
the
Company’s
listed
financial
instruments.
Investor Relations activities focus on a
shareholders.
target of over 300 institutional investors,
selected from a universe of more than
3,000 financial institutions around the world. The Company promptly responds to every
request for information from the financial community, directing its marketing efforts on
the basis of criteria, such as the portfolio of securities held by investors, their size, and
geographical and sectional specialization. With respect to its target audience, the
Company carries out its own investor relations activities based on the potential interest
of investors, which is measured objectively using international ratings.
During the course of the period, the following Investor Relations activities took place:
15 investor meetings (one-on-one or via conference call);
road shows;
5 analysts’ meetings, during the presentation of the three-year strategic plan or
financial statements, and during conferences organized by financial institutions;
4 conference calls on the 200 financial year and interim results for 2010.
81
Personnel
The Company considers its staff and associates to be an important
stakeholder. The quality of services offered by the Company is
largely dependent on its employees. The Company’s success
depends on staff training and experience, as well as its our
employees’ motivation and commitment to the Company’s
objectives.
Lottomatica Group deals with a wide range of local regulations
that govern the protection of workers worldwide. The Group
complies with the terms of the International Labour Office’s
Tripartite Declaration of Principles Concerning Multinational
Enterprises (Geneva, 2000) and its social policy.
The substantial stability in employment levels is the result of a
slight increase in staff employed by Lottomatica Group, the
parent company in Italy, and a slight reduction in staff employed
by GTECH(1) in the rest of the world.
Lottomatica Group has employees
in 52 countries.
(1) The term refers to GTECH - Rest of the world and it includes the employees of three operating segments: GTECH Lotteries, Gaming Solutions,
and GTECH G2
82
The Group has built a considerable global reputation in recent
years as a result of the acquisition of GTECH in 200. Also, the
Group has employees in 52 countries around the world. Figure 21
shows the distribution of staff in 1 major countries. The composition of staff by qualification reflects a substantial increase in
manual workers compared to the previous year, affecting mostly
GTECH.
TAB. 6 BREAKDOWN OF STAFF BY QUALIFICATION
GTECH - Rest
of the world
Lottomatica
Italia
Total
274
53
327
4,743
1,070
5,813
Managers
879
166
1,045
Directors
339
78
417
6,235
1,367
7,602
Manual workers
Clerical staff
Total
The educational qualifications held by staff members are an overall indicator of the quality of our employees. Figure 23 shows
the distribution of educational qualifications for Lottomatica
only, since these qualifications are not tracked by GTECH.
83
In Italy, 33% of staff members
have a university degree.
The Group engages in various types of employment relations,
depending on the countries in which it operates Contracts are always
in compliance with the local regulations in force. In Italy, almost all of
Lottomatica S.p.A.’s staff, and those of its subsidiaries, are hired on a
permanent basis. In particular, as of December 31, 2010, there were
only two temporary employees. This number reflects a progressive
decline over the past few years.
Furthermore, table shows that all GTECH’s employees are hired with
permanent contracts, which confirms that the entire Group
guarantees stability everywhere over the long term.
The Group contributes to employment in the various countries in
which it operates, including
TAB. 7 CONTRACT STABILITY
forms of self-employment and
consultancy. In particular, this
type
of
employment
Lottomatica
Italia
GTECH - Rest
of the world
Total
relationship accounts for 321
Permanent contracts
1,365
6,235
7,600
positions, an increase of 31%
Temporary contracts
2
0
0
over the previous period.
0.1
0
0,03
These numbers confirm a
1,367
6,235
7,602
positive trend; one that is not
% temporary contracts
Total
The Group is able to insure job stability and security: more than 99% of
employees worldwide are hired with permanent contracts.
84
TAB. 8 CONTRACTS SIGNED IN ITALY WITH NON-EMPLOYEES
2010
2009
Contract type
No.
%
No.
%
Staff leasing
146
45.5
78
31.8
Contract staff
23
7.2
16
6.5
9
2.8
3
1.2
Agents
143
44.5
148
60.4
Total
321
100.0
245
100.0
Internships
occurring at the expense of employees.
Adding up the total number of employees and the total number of other contract types produces the
total contribution that Lottomatica Group makes to employment. According to this formula, Lottomatica
Group creates 8,48 positions, 321 of which are positions for non-employees in Italy, and 825 of which
are for other types of contracts related to GTECH – rest of the world.
Lottomatica Group has very few part-time workers. In 2010, 101 employees were categorized as part-time
(1.3% of total staff). This was a decline in both absolute and relative terms compared to the previous
period.
TAB. 9 USE OF PART-TIME LABOUR IN
2010
Part-time workers
N.
%
GTECH*- Rest of the World
75
1.2
Lottomatica Italia
26
1.9
101
1.3
Total
* Workers with less than 30 hours per week
85
In Italy, 100% of staff members are covered by a collective
TAB. 10 HIRINGS AND TERMINATIONS IN
bargaining agreement(2). Though, many employees are covered
2010
by collective agreements in other European countries, employees
GTECH - Rest
of the world
in the United States are not covered by collective bargaining
agreements.
Lottomatica
Italia
Total
Hirings
893
90
983
In 2010, 83 people were hired at the Group level, which is in line
- men
612
62
674
with the progressive decline that has characterized the past few
- women
281
28
309
years. There were a total of 1,013 terminations, which is in line
Terminations
975
38
1,013
with those that occurred in the previous period (1,011). With
- men
628
32
660
respect to the length of the notice period, applicable laws were
- women
347
6
353
applied in each country.
Turnover rate*
30%
9.4%
26.2%
6,235
1,367
7,602
The combined result of the decrease in hirings and the substantial
stability in resignations has resulted in a slight reduction in the
turnover rate, as compared to 200. The significant difference in
Total staff
*
the turnover rate is calculated as a % of the ratio of hirings
+ terminations / total staff
these rates between Italy and the United States is evidence of the
more dynamic structure of the north American labor market,
Workplace safety
compared to that of Italy. In both markets the most prevalent
reason for termination was resignation, while lay-offs accounted
Employee health and safety in the workplace are important
for a much smaller portion of the change in staffing levels.
corporate initiatives. This is why they are contained among the
basic principles of the Group’s Code of Conduct. The Group has
The Group employs management recruitment policies that are
developed its own policy on safety in the workplace, taking into
not influenced by the location to which these positions are
account that the law can be very different in other countries.
assigned. In all procedures related with hiring representatives of
the local community for Senior Management roles, the Company
In Italy, the Group’s approach to workplace health and safety
follows the country’s local regulations and any contractual
policies complies with the purposes and provisions of applicable
obligations it might have with respect to personnel.
regulations in this area (Legislative Decree no. 81/2008). In 2010,
the Company defined and introduced a “Management System”
for health and safety, which obtained safety certification under
(2)
In 2010, 88.4% of staff in Italy were covered under the private
contract for metalworking and mechanical engineering. 5.6% were
covered by the contract relating to managers at industrial companies.
4.9% by the contract covering graphics and related companies. And
less than 1% by other collective agreements.
8
the OHSAS 18001 international standard.
The Company provides each worker with adequate information
about health risks and workplace safety regarding the Company’s
activities and particular duties that they may perform. Employees
who participate, on a consultative basis, in activities that are
are also informed about procedures relating to first aid, fire and
necessary for the protection of workplace health and safety.
emergency evacuation, the appointment of managers and staff
members to the prevention and protection department, and the
company doctor. There are also plans to provide each employee
with training on the Group’s recently adopted “Management
During the course of 2010, health surveillance staff conducted
414 visits most of which were mandatory and 1 of which were
optional (an increase of 22.8%).
System”.
TAB. 11 PERCENTAGE OF TOTAL WORKFORCE IN
2010
REPRESENTED ON BODIES THAT MONITOR AND IMPROVE
WORKPLACE HEALTH AND SAFETY
The Company protects the
health and safety of its staff
worldwide.
Area:
%
# Of Employee
United States
8.7
277
Italy
100
1,367
Sweden
25
58
Gibraltar
5
6
Slovakia
10
3
In compliance with requirements, particular emphasis has been
Czech Republic
5
2
placed on prevention and health monitoring, although
Denmark
2
1
significant levels of risk associated with the specific activities
Ireland
9
5
performed by employees have not been identified.. In order to
Finland
1
5
ensure that employees are supported by health monitoring
Poland
1
1
measures in accordance with the procedures and standards
UK
6
7
specified in applicable regulations, all employees are considered
Spain & Portugal
1
1
“computer operators”, regardless of whether they actually
Canada
3
10
exceed the threshold of 20 hours per week spent at a computer
screen.
In the United States, in general, there are no laws or regulations
In addition, for the purposes of prevention, all work environments
that require the Company to establish workplace health and
are monitored continuously for light levels and microclimate, with
safety committees. Only some states require it. Consequently, only
air quality monitoring and periodic disinfection of air-conditioning
GTECH’s locations in Coventry; Rhode Island; and Lakeland;
pipes and systems.
Florida have organized periodic health and safety committee
Also, employees have elected three staff security representatives
meetings. However, in the case of a workplace injury, if possible
employees should seek treatment at the Company’s designated
8
treatment facility or at its workers’ compensation carriers’ preferred medical care
provider. A listing of network providers is available at the workers’ compensation carriers’
website. In this way, the Company complies with all regulations, concerning prevention,
GTECH’s
Return-to-Work Program
monitoring, and insurance, in the various jurisdictions, in which it operates, This
guarantees that workers do not experience any loss in wages and are reimbursed for
medical expenses.
Initiatives on workplace safety and employee health are part of an integrated process
dealing with the environment, health and safety (EHS). GTECH carried out 14 specific
mandatory training programs in 2010. They were mandatory for employees in certain
locations and/or with certain job functions. Training programs included investigations in
the event of accidents; evacuation procedures at different locations; facility inspections;
forklift operator safety; risk communication; ladder safety; safety locks and posters; use
of portable fire extinguishers; and safety responsibility management.
The Company has developed a website focusing on environmental problems, employee
safety and health. The website features updated versions of all management documents
on this specific area, including: survey results, and informational and training materials.
Care24 Employee Assistance Programme (EAP) is a program that the Company offers to
employees who work in the United States. During critical situations, this program provides
assessments, confidential advice, and short-term counselling and assistance to staff and
their family members. The EAP provides a telephone help line that offers skilled nursing
care.
Figure 24 shows key statistics related to the number of accidents in the workplace or
while traveling, that involved at least one day’s absence. In 2010, a total of 55 accidents
occurred in facilities located in the United States and in Italy. The data shown also includes
accidents that occurred while traveling, but does not include locations in other
countries(3).
(3) As a result of the expansion of the accident monitoring program outside Italy and the United
States, data was also received in 2010 concerning Ireland (1), Finland (1), Spain and Portugal (1).
88
GTECH has developed a special
program that allows employees
to return to work gradually after
an illness or accident. The
program involves the temporary
assignment of modified, light, or
alternative duties, so that the
employee can achieve a full
recovery. The program lasts a
maximum of 90 days and
applies to all GTECH employees
with insurance coverage for
illness and workplace accidents.
As part of the Return-to-Work
Program, a doctor must
complete an assessment form
and have a discussion with the
affected
person
about
opportunities to return to work.
The Manager is responsible for
indicating how the workplace
can accommodate the suggested
restrictions, and or modifications
to the employee’s duties.
There were 42 accidents in the United States, and 13 accidents in Italy. This was a
remarkable decrease, as compared to the previous period. A total of 1,320 working days
were lost in the United States and 20 were lost in Italy, for a total of 1,580 working day
lost.
In 2010 there was
a remarkable decrease
in accidents related to
work activities, both in
Italy and in the United
States.
Equal opportunities - gender
At the end of the period, there were 2,23 female employees, accounting for 2.% of
the group total, which is essentially the same as for the previous period. At both
Lottomatica Group and GTECH, the distribution of female employees by qualification
indicates that the majority of female employees perform clerical work (respectively 8.3%
and 80.4%).
8
Valore D (The Value of Women)
The Company in Italy supports its female staff
members by providing career opportunities that
are relatively better than the reference benchmark.
Lottomatica seeks to promote women in senior
positions in the Company, following the
recommendations of “Valore D” (the Value of
Women). The aim of this Association is to assist
Italian companies in developing advancement
opportunities for their female employees, by
supporting women’s career development as they
strive to achieve positions in senior management.
The Association seeks to promote change by
fostering public discussion about female
leadership.
Figure 2 shows that, on average, female employees in Lottomatica Group have better educational qualifications than male employees in Lottomatica Group.
0
With respect to GTECH, there are female employees at all levels of the organization, and a
single female employee holding an executive management position. At the corporate level,
since 200 the Human Resources Learning Services unit has been developing an agreement
with a local association called Leading
Women.
This
organization
promotes
opportunities for career development for
female employees in Rhode Island, through
internal and external seminars, online
resources, mentoring, and networking.
GTECH supports the advancement of women
to positions of increasing managerial
responsibility. In 2010, the indicator of the
promotion of female staff, applied to GTECH
facilities in the United States, had a value of
8.1%, which was greater than the average
GTECH’s family leave policy, in compliance with the Family and
Medical Leave Act (FMLA).
All employees, under certain conditions, may benefit from this program,
although it is mostly women who take advantage of it. GTECH extends
the benefits of these regulations, which provide leave for up to 12 weeks,
including for categories of employees not covered by the law. The leave
covered by the FMLA relates to pregnancy, prenatal medical care,
childbirth, post-partum child care; adoption; serious illness of the
employee or a spouse; dependent; child or parent; and also in certain
circumstances relating to involvement in a military operation.
value of the Saratoga Benchmark, which was
.5% in 2010(4).
GTECH US offers two maternal health programs through United Healthcare insurance:
the Healthy Pregnancy Program, which relates to pregnancy, and Reproductive Resources
Services, regarding fertility problems.
TAB. 12 DIFFERENCES IN COMPENSATION
BETWEEN FEMALE STAFF AND MALE STAFF,
BY QUALIFICATION
(GTECH US ONLY)
The Healthy Pregnancy Program provides access to specialized nursing staff before and
after childbirth, medical examinations during pregnancy, customized educational
Average GTECH US compensation
%
materials, and an online newsletter about topics dealing with motherhood. If there are
Directors
(9.5)
specific requirements relating to the management of the pregnancy, based on an
Managers
(8.1)
assessment of the employee’s state of health, the program provides nursing care and
Clerical staff
(6.9)
customized support during the pregnancy.
Manual workers
(10.4)
(4) This indicator is calculated as the percentage of female staff that has been promoted to senior
positions, out of total female staff. PwC Saratoga is a world leader in the analysis and motivation
of employees.
1
Outside the United States, GTECH’s employees are subject to
A more complex range of diversity, including the recognition of
different national regulations concerning maternity protection,
ethnic minorities and the rights of war veterans, is recognized in
part-time work, the length of maternity leave, breastfeeding and
the United States. The policies adopted by the two entities reflect
corporate gifts.
these characteristics, while fully complying with applicable laws.
Any employee who feels illegally discriminated against is entitled
to take advantage of the procedures to protect his or her rights.
Minority rights and staff with different skills
This includes notifying his or her supervisor for matters relating
to human resources: his or her Human Resources Business Partner;
In accordance with the Code of Conduct, which applies to all
or any other manager about the incident.
locations, the Company operates worldwide by valuing diversity
in the workplace and respecting the diversity of all employees. In
In the United States, during the period, three complaints were
accordance with this vision, Lottomatica Group is committed to
filed with the Equal Employment Opportunity Commission and
ensuring equal opportunities for all employees, regardless of
the local Human Rights Commission for alleged discriminatory
race, color, political opinions, religious belief, country of origin,
acts by the Company. In Italy, however, there were no complaints
age, sex, sexual preference, marital status, or disability.
or proceedings related to non-compliance with the principles of
equal opportunity. In the rest of the world, the Company is
A number of measures have been implemented to ensure the
effective application of these principles, including: “Integrity
unaware of any complaints concerning violations of human
rights, in particular with respect to indigenous peoples.
Line”, “Ask the Board”, various links and a Compliance Office.
These mesures are discussed in more detail below, in the section
entitled “Compliance and Governance Program”.
The broad protection of these principles takes into account the
different sensitivities of American and European cultures in
relation to this subject, including from the perspective of specific
laws.
In Italy, attention to minorities chiefly concerns disabled people.
Since 200, Lottomatica has operated an Equal Opportunities
Commission, a mixed body which aims to maintain and develop
a positive environment of constructive coexistence, characterized
by freedom, dignity and personal privacy.
Training activities
Lottomatica Group believes that corporate training is important
for the development of employees, which is an essential
component of production and innovation.
Each year, the Group invests in basic training programs for
newly-hired employees, specific professional skills programs,
and courses that teach organizational, language, and
managerial skills. Refresher courses are offered at all levels.
The Group has conducted the following training initiatives at
its north American and Italian locations.
2
In 2010, Lottomatica Group continued to focus on enhancing its
resources, based on the principle that professional skills are an
asset that must be recognized, guided and developed. Based on
this approach, various training initiatives were launched that
involved all levels of the organization. In particular, a crossfunctional training catalogue was introduced which brought
together specialist training activities at external training
bodies and project-based training on a wide range of topics,
differentiated by type and target.
Lottomatica Italy: main training programs in 2010
projects to tech staff members how to deal with change, and guidance on internal clients for the business
and technology divisions;
a training program for newly-hired employees, designed to integrate these new staff members and provide
information about company practices;
a program for young graduates and experts, based on participation in training initiatives that are common
to all business functions, helping them to acquire and developing cross-departmental skills.
explanation of the round table initiative that was implemented a few years ago;
the “Comprendere per fare” (Understand how) project, focusing on empathy, intended for middle management staff that are involved in the evaluation process;
conducting seminar training for new evaluators.
In 2010, investments in training
aligned with previous periods, and
exceeded 38,000
hours.
3
GTECH supports employee education and has a program to
The Company makes a direct investment of 2% of base salary in
reimburse educational expenses for staff in the United States. This
staff training, which consists of both classroom learning and E-
program reimburses staff for courses completed at accredited
learning covering a range of programs that are managed by
higher educational institutes. On an annual basis, GTECH
internal departments and external experts. The topics covered by
employees assist in defining and achieving professional
the training programs are corporate systems and processes,
development goals, which are evaluated together with their
human resources, leadership, management, security and
respective managers. The Company has adopted a Learning
technology. The training is coordinated centrally, through the
Management System (LMS), which makes it possible to track the
Learning Services Department, and at GTECH headquarters, as
development of each employee.
well as at individual offices, depending on requirements.
The main training programs that were centrally managed and conducted or decided
in 2010 by GTECH were:
Global Leadership Development Program, relating to management;
SAP Portals and Appraisals, a training initiative for employees and managers on the self-service portals for
performance management and self-appraisals. Matrix Management, presenting best practices for successfully using a matrix reporting structure.
Other programs that were implemented focus on managing staff skills and promoting training and refresher
courses, based on career opportunities:
Career Development Training Program, an E-learning course designed to increase the awareness of employees and directors about career opportunities;
An E-learning catalogue, comprising a wide range of online learning for all staff members;
Learning programs related to individual duties, customized to the role and function performed.
4
Particular attention is dedicated to training employees about the Company’s policies and
procedures regarding human rights in the workplace. This issue is addressed in specially
designed courses that are part of new Hire Orientation for new employees, with an hour
of specific material on this subject. Training on combating harassment is currently offered
in California’s offices, as required by law. The Company meets this requirement through
E-learning courses related to the recognition and prevention of harassment. During 2010,
33 staff members took training courses on respecting human rights.
All of the training provided centrally by Learning Services is subject to participant
assessment, so that improvements may be made to the range of courses and teaching
methods used.
TAB. 13 TRAINING ACTIVITIES IN
Incentive and remuneration practices
The Group’s approach to recognizing merit and incentives maintains
the traditions of the two Companies, and takes into account the
different regulatory environments of the 52 countries in which our
global operations are located.
Type of training
Lottomatica Italy:
2010
Partecipants
Hours
678
18,827
- Directors
805
- Managers
In Italy, the Lottomatica incentive practices uses different instruments,
- Clerical staff and laborers
divided by population target. In general, all employees are evaluated
GTECH- Rest of the World:
on the basis of merit, in order to identify recipients and calculate one-
- Directors
time payments offerings and/or pay raises. In 2010, the Company used
- Managers
the following tools:
- Clerical staff and laborers
results bonus, associated with the achievement of corporate
Total
3,536
14,486
4,204
19,932
820
3,340
15,773
4,882
38,701
objectives.
variable bonuses, applicable to some employees, and associated with the achievement
of objectives.
a Management by Objective (MBO) system, used for directors and some managers,
based on the achievement of Company and individual objectives;
5
long-term incentive (LTI) plans, used for some of the directors,
as long as the director is still employed by the company. They
involve the allocation of shares and/or stock options, and are
associated with the achievement of Company objectives.
With regard to GTECH, the total incentive package is based on a
ability to manage the working environment and to encourage
teamwork,
sensitivity to clients’ requirements,
ability to achieve the expected results.
combination of base salary and a variable component. The
Additionally, there are specific incentive for agents, based on a
incentive package is designed to attract, keep and motivate
system of remuneration, featuring a completely variable
highly qualified and productive staff, establish a connection
commission. Directors with the Lottomatica Group also undergo
between the Company’s financial results and the financial
evaluations of their managerial capabilities.
retribution of employees, and make a clear connection between
the incentive and measurable results.
In 2010, approximately 5% of Lottomatica staff and 1% of
GTECH staff(5) received regular evaluations on their performance
A new Appraisal System was recently introduced for the annual
and career development.
Focal Point review which is accessible through an SAP Portal.
Work Success Factors (WSFs) are a way for the Supervisor to
evaluate an employee’s performance. The evaluation system
involves assigning an individual annual score on a scale of 1 to 5
In 2010, 94.3% of the Group’s
out of 10 for each of the following areas:
staff received evaluations on their
ability to adapt and responsiveness to change
performance and career
ability to communicate effectively,
development.
ability to deal with change, demonstrating creativity and
innovation,
ability to establish good interpersonal relations,
ability to cope with duties competently and effectively,
ability to understand problems and take responsibility for his
By means of a resolution passed April 30, 2010, by the Board of
Directors, Lottomatica Group adopted a new incentive and
compensation plan involving stock options. It is reserved for
directors, senior management, and other employees who hold
positions that are important for Company results.
or her own decisions,
acceptance of the corporate vision, mission and policies and
ability to motivate others on these issues,
(5) This figure does not include staff employed by Lottomatica Groups’s
subsidiary ATRONIC, whose incentive systems have not yet been
integrated into those of the Group.
Company welfare
The Company complies with applicable regulations and provides a number of benefits in
addition to compensation, to cover employees’ pension, health and insurance requirements.
This compliance with national rules involves substantial differences in the two most
important countries in which the Group operates. In fact, the welfare systems in Italy and the
United States have considerable institutional differences. As in most European countries, the
pension, health and welfare systems in Italy are primarily public and are supported by
mandatory contributions. In the United States, a corporate welfare system is used, which in
the case of GTECH includes a wide range of
In recognition of the various regulations governing welfare, the Group
offers a wide range of welfare benefits to its employees. The Group
offers a defined benefits plan (Severance Indemnity Provision) in the
event of termination of employees’ professional activities. Italian
employees may choose whether to participate in a plan within the
Group, or transfer the balance of their plan to an independent
external fund. These benefits are funded exclusively by matching
amounts paid into the plan.
protection. The costs of which are covered
by the Company, to different extents
depending on whether the employee
works full or part-time. Staff members
have access to a series of additional
benefits
that
may
be
obtained
at
particularly competitive prices. Employees
may choose a combination of welfare and
insurance components best suited to their
family situation
GTECH’s Corporate Benefits offers the following benefits for full-time staff: coverage for most
of the cost of health and dental insurance policies; a life and accident insurance policy worth
two-times the employee’s base salary; business travel accident insurance of $250,000 to family
members in the event of the employee’s death; insurance cover for short-term disability leave
that is not job-related, providing 80% of salary up to a maximum of 180 days; 401(k) retirement
savings plan, paid in part by the employee into a leading fund administered by Fidelity
Investments; insurance against identity theft and any related consequences;, and assistance
plans covered by the Company for education or secondary education and adoption expenses.
In Italy, in addition to a developed corporate welfare system, which is required by law, the
Company contributes to the funding of the recreational association CRAL, to which most
staff members belong. The Company’s contribution in 2010 was €200,000.
Internal communication
Email is used by most departments to share important and upto-date information with staff members.
The Company considers internal communications very important
because it brings individuals and the Company closer together.
GTECH’s President & CEO holds two events each year to discuss
The purpose of internal communications is to maintain a dialogue
the Company’s objectives. All employees worldwide are
with employees, ensuring the continuous and effective
invited to attend these events.
transmission of information. not only does communication foster
communicates with staff members on a regular basis, by
operational efficiency, but it also creates stable relationships,
means of Company Status Reports.
based on trust.
Senior management
GTECH directors meet with senior management on a quarterly
In Italy, Lottomatica Group keeps all of its employees informed
basis by telephone conference call, to discuss important
via email and by continuously updating its Intranet website.
Company issues.
Specific sections of the site allow employees to access information
on various important aspects of the employment relationship.
The Intranet is also a tool that allows the Company to consult
with employees in order to fill vacant Company positions. These
announcements are periodically published in the special career
Plasma screens are located in all major offices worldwide to
communicate a variety of information. Specific video content
is produced and sent over the IntraConnect network or
projected, if necessary, in some jurisdictions.
and staffing section.
At GTECH, internal communication provides employees around
Industrial relations
the world with the information they need to successfully perform
their duties. It also makes broad, frequent interaction with staff
members possible. The most widely used means of internal
communication are as follows:
the Intranet, which is a repository for all corporate
The Group complies with the various industrial relation models
observed in the countries where the Group operates. GTECH
doesn’t have organized labor unions, which is common practice
in the United States. In other countries, tough, such as Italy,
Austria, Argentina, Sweden, Portugal and Finland, the Group’s
information, policies and procedures. It is available every day,
branches participate in a system of institutionalized collective
24 hours a day.
representation, which is mutually recognized and protected by
news At Your Fingertips, which is a monthly online
law.
publication that provides information regarding the Company
During the period, industrial relations at Italian offices were
and the industry.
renewed by means of a supplementary contract with the
8
Company. During renewal discussions, particular attention was paid to social issues, such as
the contribution to day care for employees’ children; and an increase in leave for study
purposes and rates for supplementary pension funds. Also the total number of hours of leave
for professional medical care was resolved.
During a particularly difficult time for the world of industrial relations, Lottomatica Group’s
supplementary contract was signed by all involved trade unions. In 2010, there were a total
of 5,13 strike hours in Italy, equal to 4. hours per capita Union representatives used 14
hours of paid union leave.
In most case involving offices in other countries, there is no trade union representation. As
a result, on average, the unionization rate is negligible and there are no strikes.
TAB. 14 RATES OF ABSENCE AT VARIOUS
Lottomatica Italia
Days per employee out of total working days
GROUP ENTITIES
GTECH US
Other countriesi*
2010
2009
2010
2009
2010
2009
6.12
6.46
1.27
4.68
2.87
2.86
* The figure is calculated as a weighted average of the branches located in 32 countries.
Customers
customers (players and members of the public). Lottomatica
Italia offers a wide range of games and services mainly related
Lottomatica Italia is the world’s largest lottery operator and the
leader of the Italian gaming market. GTECH is one of the leading
to payments and top-ups.
providers of lottery and gaming solutions, thanks to its innovative
The other operational sectors of the Group (GTECH Lotteries,
technology, products and high quality services, superior assistance
Gaming Solutions, and GTECH G2), supply gaming systems,
and a constantly-evolving marketing capability. Under the control
platforms, and solutions. They, mainly target public and
of the Lottomatica Group, Lottomatica and GTECH combine to
private gaming operators, which, in turn, manage gaming
provide integrated gaming operation and technology solutions.
offers in various countries.
The Group’s activities are aimed at a wide range of customers. In
This section illustrates the main characteristics of the three
particular:
customer types referred to above, and also gives details of the
Lottomatica Italia, as a gaming operator, targets the end
products and services of the entire Lottomatica Group.
The players
Concession by game type
(*) The national lotteries are no
longer managed on a concession basis, but each year are
managed by AAMS through a
declaration of interest, and
awarded to the best bidder.
The 2010, the contract was
won by Lotterie Nazionali S.r.l.
(of which Lottomatica Group
owns 51%, held directly and
indirectly).
100
Period
Renewal
Exclusive licence for the
lottery “Gioco del Lotto”
since 13
Exclusive licence for the
instant lotteries (Gratta e vinci
- Scratch and Win)
sincel 2004
since 2010
Exclusive licence for
traditional lotteries (*)
since 2004
2010
Licence for bookmaking
(horse racing and other
sports)
since 200
Licence for interactive games
(Instant Lotteries, Skill Games,
Poker Games, online bingo)
since 200
Amusement machines
licence
since 2004
sincel 2010
THE GAMING PORTFOLIO
Instant Lotteries
(Gratta & vinci)
Gioco del Lotto
10eLOTTO
Instant lotteries are based on the sale of tickets on which a random game code has been pre-printed and
concealed. The player finds out instantly whether he or she has won by scratching off the surface of the
ticket.
This historic game is based on a draw, of five numbers between 1 and 0, for each “wheel”. There are 10
wheels (Bari, Cagliari, Florence, Genoa, Milan, naples, Palermo, Rome, Turin and venice) as well as the
‘Ruota Tutte’ and the national Wheel.
This is a game based on a draw of 20 numbers between 1 and 0. The numbers played (from 1 to 10) are
chosen between 1 and 0, and are matched against the 20 numbers drawn, depending on the chosen draw
method: every 5 minutes, instant draw, and Lotto draw.
Traditional lotteries
Traditional lotteries are linked to one or more historic, artistic or cultural events. The main one is ‘Lotteria
Italia’, which is usually held during the last few months of the year, and drawn in January.
Sporting bets
These bets involve predicting the outcome of one or more future events; among those authorized by the
regulator (AAMS). They include pools, sweepstakes, horse racing and other sporting bets.
Amusement machines
(vLT and AWP)
Amusement machines are a series of terminals, with an online link to a central server. They host various
gaming packages licensed by the regulatory body (AAMS), updated according to player preferences.
Poker Club
(interactive games)
Poker Club allows players to participate in online tournaments of the most commonly-played variants of
poker in the world: Texas Hold’em, Omaha High; Omaha High/Low; 5 Card Draw; 5 Card Draw -A; Card
Stud; 5 Card Stud; American and Soko.
Skill Club
(interactive games)
Skill Club is an online gaming platform that offers a wide range of skill games, organized into two
categories: “Brain games” and “Table Games”. “Brain Games” includes brain teasers, sports quizzes, card
games, word and action games. “Table Games” includes a series of traditional Italian and international card
and board games.
Sports games
(interactive games)
The Sports games section of the Lottomatica portal is dedicated to remote playing of Totocalcio, Totogol,
and national horse racing competitions.
Games and lotteries
(interactive games)
This section includes, the LIT (Instant Online Lotteries). In other words, it includes online scratch and win
games, the remote format of the classic Superenalotto and Win for Life.
Betting
(interactive games)
This section of the portals is dedicated to remote betting. Fixed-odds betting are a bet in which the
gambler has to predict the result of a sporting event which has been allocated pre-determined odds. The
winnings are calculated by multiplying the amount bet by the odds allocated to the event.
Bingo Club
(Giochi interattivi)
Bingo is a game based on chance, not the skill of the player. It is very similar to the traditional Italian game “tombola”. It involves a draw of 0 numbers, in which the gambler aims to win the “cinquina” or “bingo”.
In the Bingo Club section, you can choose between three gaming rooms: Classic, Terra and Fuoco.
101
Every three months, Lottomatica systematically monitors any
changes in the profile of Italian gamblers.
The trend for 2010 which emerged from the Eurisko survey
carried out early in 2011 shows that Gratta & vinci is one of Italy’s
favorite games, with 1.3 million players taking part at least once
during the year. Around 20,000 players took part in the online
version at least once. Lotto is
During the course of 2010, more than
27 million Italians (57% of the adult population)
played at least once.
still played by around 11
million Italians, followed by 10
e Lotto. The national lotteries
were played by million
people. % of the Italian
population played Totocalcio
and other sporting bets at least once during the year (3.3 million),
while sporting bets were placed by 2.3 million bettors. Slot
machines and video lotteries attracted another 1. million
players.
Profile of the Italian gambler
The profile of the average gambler is similar to that of the
Lottomatica constantly monitors gamblers’
preferences, in order to produce an offer that
reflects market demand but also in order to
elaborate a responsible gaming policy. In 2010, 40
surveys were conducted. 30 of those were
quantitative, based on 108,000 interviews, while
10 were qualitative, involving 109 focus groups
and 84 personal interviews.
102
average Italian. The average gambler is typically a male of
moderate economic status.
During this period, the profile appears to remain stable. More
men gamble than women, and there are more gamblers in the
southern regions and in the central age ranges. Manual and
clerical workers gamble more than students and housewives.
PROFILE OF GAMBLERS IN 2010
Source: GFK Eurisko 2011
103
As a whole, gambling is evenly distributed amongst the national
population. With specific games, there are certain social, cultural,
demographic, and geographical characterizations. For example,
Lotto is the most popular game, preferred in the South of Italy by
housewives and pensioners with lower levels of education.
Female gamblers are very fond
of Gratta&vinci, while their
Lottomatica offers a wide range of offline and online
interest in Totocalcio is very low.
Retirees are most attracted to
the national lotteries, while
young people and graduates
games. Regular product innovation allows the launch of
instant-hit games, such as 10
prefer online poker.
In terms of overlapping among games, there is an increasingly
evident trend towards multiple gaming. Gamblers who play
only one game account for approximately 23% of the total,
while the remaining % play two or more games during the
course of a year. The average number of games played during
a year, per player, is three.
More generally, the online gambler has specific characteristics.
The online gambler’s profile is linked to certain sociodemographic parameters and certain levels of Internet use. In
general, it has been noted that online cash gamblers, a subsegment of the generic online gambler, tend to exaggerate the
differences found between gamblers and non-gamblers. The
online gambler is usually male, under 34-years old.
Online gamblers usually have a medium to high educational
profile and come from the larger towns and cities. Their tendency
to gambling increases in the southern regions.
104
e Lotto.
Customer satisfaction
The Company conducts regular monthly customer satisfaction
surveys. The customer satisfaction indicator varies on a scale of 1
through , and is calculated by observing eight aspects:
amount of winnings; ease of play; retail environment; relations
with the retail outlet manager and other customers; and social
considerations. 2010 saw an improvement in the average rating
of most games. There was a particularly marked improvement in
the indicator for satisfaction with online games.
oesis 2010
Source: C
2010- (FILE W
Source: Doxa
ORD EURISKO
2011)
Source: Doxa
2010- (FILE W
2011)
ORD EURISKO
entertainment; involvement; possibility of winning; average
105
Public customers
offering processing services for third party companies and
institutions.
With regard to relations with public users, Lottomatica uses
around 114,200 POS terminals (+ 11.% compared to the previous
The aim is to offer the public an extensive, safe, innovative, easy
year) dedicated to the retail and payment of telephone cards,
to use and fast network of services, with the commitment of
satellite Tv subscriptions and road tax, and 32,00 machines used
maintaining a constant balance between service quality and cost-
to print revenue stamps (+ 1.8%). Lottomatica terminals have an
effective commission.
extensive nationwide network, with approximately 1 terminal for
every 525 inhabitants.
Lottomatica has developed a range of over 100 regularly-updated
services, and offers an alternative channel to banks and post
Lottomatica began to develop its services in 1, by issuing
offices. The portfolio covers four main categories of service: top-
tickets for football (soccer, in America) matches. In 1, the
ups, payments, ticketing and e-money. In 2010, the range of
Company took advantage of the wide network of lottery retail
services was extended to include the sale of e-vouchers and the
outlets and launched the road tax payment service. The offer
payment of contributions to the Italian public contracts regulator
expanded during the year, making Lottomatica Italia a point of
(AvCP). At the end of the year, a new service was also launched in
reference for the public. As the efficiency and security of the
conjunction with Trenitalia, allowing customers to pay for tickets
online retail systems was enhanced, the Group began also
booked online or via call centres, using the Postoclick system.
THE RANGE OF SERVICES OFFERED
Top-ups
top-ups, mobile phone service cards (traditional operators and Mobile
virtual network operators), and international PIn-based telephone
cards;
top-ups and packages enabling the viewing of Tv programmes
broadcast by all the main digital terrestrial and satellite broadcasters;
gaming account top-ups. Totosì top-ups allow the customer to top up his
own personal gaming account;
the sale of e-vouchers containing prepaid credit allowing the customer
to make purchases online or at participating stores, and to access paid
content on the web.
10
THE RANGE OF SERVICES OFFERED
Payment services
payment of bills and local taxes;
payment of motoring fines levied by municipal police stations who are part
of the Ancitel system;
InPS (national Insurance) services. As a member of the Reti Amiche project
organized by the Ministry for Innovation in the Public Administration, the
Lottomatica network offers customers the possibility of making payments
to redeem years of university study for pension purposes, and for the social
security contributions for domestic workers;
payment of medical costs for examinations and treatments managed by
the local health authority of Florence and the AOU Policlinico P.Giaccone
(Palermo). Using Lottomatica outlets one can pay for medical services via
the web, or call centers;
TASSE AUTO/MOTO
payment of road taxes (car / motorcycle), Tv fee, court fees for
administrative, criminal or civil cases, and the sale of revenue stamps;
payment of fees due to the Italian public contracts regulator (AvCP) by the
private sector (companies and the self-employed) in connection with
participation in public bids.
Ticketing services
Under the Listicket brand, through the website, the call center offers
ticketing services for the following types of event:
sport (football championships (soccer, in America): Serie A, B and C, the
Lottomatica virtus Roma team, and the Italian Rugby Federation);
music (big-name Italian and international concerts, and events held at
the Auditorium Parco della Musica and Accademia Santa Cecilia in
Rome);
Fiera di Roma;
The Rome Bioparco.
E-money services
Lottomatica has enhanced its service offered through the company
CartaLis, by launching prepaid cards under the Lottomaticard system which
was joined two years later by PayPal and Lottomaticard Easy:
Lottomaticard is a registered, prepaid card which can be used not only
at Lottomatica points but also on the visa Electron circuit. It has a limit
of € 10,000 (the highest on the market) and can be linked to the
Lottomatica gaming account for instant crediting of winnings;
Lottomaticard Easy, a prepaid top-up card usable by the person
presenting it (does not require signature of a contract), which can be
used on the Mastercard circuit and can be topped up to a maximum of
€ 2,500 in any one year.
10
The Eurisko survey conducted for Lottomatica in February 2011
estimates that 0% of Italians make at least one type of payment
occasionally, and therefore use these financial services. The use
of tobacconists and cafes for all the services managed by
Lottomatica has increased since 200.
This information demonstrates
the way in which Italians’ habits
are changing, and confirms that
the opportunities offered by
Lottomatica in this section of the
Thanks to technology, Lottomatica is helping to improve
citizens’ relations with the public administration, by avoiding
long lines and making transactions easier and safer.
market have been well-received.
The main reasons for use are
convenience (2% of replies on payments, and 1% of replies
relating to top-ups), to a lesser extent proximity (34% of
payments) and the possibility of avoiding queuing (10.8% as
regards top-ups and 2.5% as regards payments).
108
Customer satisfaction
Lottomatica also carries out periodic customer satisfaction surveys
for the general public. These surveys have revealed a very high
level of satisfaction, with a score of .5. The overall customer
satisfaction indicator was .81, a slight improvement compared to
past surveys. The various components of the indicator are also
very high - all above .0. Of these components, the factor which
correlates most strongly with the overall satisfaction level, hence
the most important, is “simplicity and immediacy”. Other factor
includes”operator capability”, “atmosphere of the outlet” and
“clarity and transparency”. Therefore, these aspects are the
strengths of the service.
10
Gaming Operators and Providers
As already mentioned in this report, in order to better respond to the
requests and needs of gaming operators worldwide, products and services
have been organized according to the business unit: GTECH lottery
segment, Gaming Solutions (SPIELO and ATROnIC), and GTECH G2.
GTECH Lottery Segment
GTECH is a leading operator and provider of innovative technology,
global retail products and services, superior service delivery, and
evolving marketing capabilities with an abiding commitment to the
principles of responsible gaming. GTECH provides full service
capabilities to several of the top-performing lotteries in the world. It
designs, assembles, installs, operates, and maintains online lottery
systems for governments and licensed operators worldwide; also
provides instant ticket vending machines, printing, and design services,
as well as promotional and interactive gaming capabilities to
government-authorized lotteries.
GTECH LOTTERIES PRODUCTS AND SERVICES
Lottery Solutions
Enterprise Series (ES) is a totally integrated lottery central system solution, offering open standards, an n-tier
architecture, and fast and secure transaction processing. It provides all the applications and services to operate a
world-class lottery operation, including: games and games management, accounting, promotions, retailer
management, user/ group administration, instant ticket management, player services, business intelligence, and endto-end security.
Enterprise Series is:
Future proof, enabling lotteries to grow by adding products and services throughout the life of the lottery.
Completely scalable, to efficiently serve the largest and the smallest lottery operations.
The ES solution, both in terms of management capacity, and in terms of security of information handled, offers the
highest level of integrity with “shared nothing” memory, storage, and true n-plexing.
110
GTECH LOTTERIES PRODUCTS AND SERVICES
Lottery Solutions
Flexible Retail Solutions provides the industry’s most comprehensive suite of lottery retail solutions designed to satisfy
diverse retail environments and diverse business needs. GTECH’s terminals continually receive the highest technical ratings
and use the latest technologies to deliver the best possible experience to retailers and players. Flexible Retail Solutions
include: Clerk/Retailer Activated Terminals, Player Activated Terminals (Self-Service), Digital Signage (ES MultiMedia), DASH
Store Service, communication, and professional services.
Communications Networks - GTECH has extensive experience and capability in design, delivery, and ongoing
operations and optimization of multi-technology communications networks. GTECH is the largest user/operator of
retail satellite networks in the world.
Instant Games
GTECH Printing Corporation Corporation is an end-to-end provider of instant tickets and related services, specializing
in the quick delivery of high-quality instant ticket games. GPC has a new state-of-the-art printing press located in
Lakeland, Florida, that has product capacity for more than 11 billion tickets/year.
GTECH conducts business in approximately 0 countries and, as
of December 31, 2010, provides online equipment and services to
24 of the 44 government-authorized lotteries in the United
States, and to 52 international customers.
111
Gaming Solutions
The Gaming Solutions segment includes operations related to the
design, manufacture, and distribution of gaming machines and
video lottery terminals (vLTs), casino slot machines, and
Amusement with Prize (AWP) cabinets, as well as central systems
and game software.
The Gaming Solutions segment includes ATROnIC and SPIELO.
ATROnIC provides casino cabinets, slot management systems, and
games to north America, Europe, Africa, Asia, and Latin America.
SPIELO is the leading global provider of government-sponsored
vLTs, central systems, and games in north America and Europe.
GAMING SOLUTIONS PRODUCTS AND SERVICES
Games
Electronic Gaming Machines
(EGMs)
Casino systems solutions
Distributed market
central systems
112
high-performance video lotteries; AWP and games, such as reel games, kenos, poker, roulette, multi-games, linked
games, community games.
vLT; AWP; and casino markets are high quality, ergonomic, player-tested and user-friendly products.
Includes slots network and management and online platform; cashless solutions; a complete vault, front cage and
credit management tool; jackpot management; table management; bonusing options; marketing, player tracking and
identification; and point-of-sale systems.
A core central system proven for managing gaming operations, system administration, game accounting, and
monitoring and metering of EGMs. It can be tailored to customers’ needs with value-added options. The central
system family includes a retailer site controller and lottery prize validation terminal, as well as a multi-terminal site
controller.
GTECH G2
GTECH Customer Management
GTECH G2 was formed in 200 after the acquisition of four of the
GTECH gives its Data Center operations the utmost attention. The
leading online gaming companies. GTECH G2 is the leading supplier
operational readiness of its worldwide locations defines its ability
of online and sports betting solutions to the world lottery market
to provide the highest levels of customer services. Formalized
and the regulated commercial gaming market. GTECH G2 is a full
best practices and data center redundancy have proven to be a
service provider that offers its customers a truly open platform,
winning combination. Any disruptions at its Primary Data Centres
through its market leading Gaming Management System.
(PDCs) are made transparent customers, as wages are seamlessly
rerouted to our Backup Data Centers (BDCs). This allows GTECH
GTECH G2 PRODUCTS AND SERVICES
Sports betting and other services.
to provide uninterrupted service to its Lottery customers, even
when unforeseen events take place.
Poker, including the provision of fully-managed services through the
International Poker network.
Casino, both Flash and downloadable games.
Bingo
Skill games, including technology and networks management.
GTECH G2 continues to remain at the forefront of the iGaming
GTECH’s business solutions
empower customers to develop
industry through continuous product innovation and investment.
parameters and practices, appropriate
GTECH G2 has over 150 gaming or media customers operating
to their needs, that become the
under license in various European jurisdictions. Within GTECH G2,
customers are grouped by type and by product Bingo, Poker,
Casino, Sports book and Games fall under the commercial
category, nRM (nationally Regulated Market), WLA (World
Lottery Association) and licensed operations.
foundation of their responsible gaming
programs.
GTECH G2 operates six poker networks across the globe,
including the first regulated and legal poker network in north
America, The Canadian Poker network. GTECH G2, through its
world renowned sports betting operations, deals with €8 billion
of sports wager on an annual basis. GTECH G2 in 2010 launched
more than 2 branded games to offer its clients the complete
online solution.
113
Technology alone is not
solely
responsible
GTECH’s success. Operations
teams are trained to fully
recover from any system
failure, following revisioncontrolled
2010,
regarding
customer
GTECH has utilized the Information Technology Infrastructure Library (ITIL)
framework as the base for implementing industry best practices, to ensure consistency in its approach to key customer support processes. The core ITIL processes that have been successfully implemented are:
procedures
1. Incident Problem (the process responsible for managing the lifecycle of all incidents),
rooted in best practices.
In
Industry Best Practices
for
no
complaints
breaches
privacy
of
and/or
losses of customer data were
recorded.
2. Change Management (the process responsible for controlling the lifecycle of all
changes),
3. Release Management (the process responsible for planning, scheduling and controlling the movement of releases to test and live environments).
Customer health and safety
GTECH recognize the health and safety impact of its products and
content - particularly with regard to substances that might
services. Each of their life cycle stages is assessed for
produce an environmental or social impact – safe use, disposal of
improvement. 100% of GTECH’s products are in compliance with
the product.
such procedures. As a result, in 2010, no incidents of noncompliance with regulation, (resulting in fines, penalties, or
warnings) occurred. Also, in 2010, no incidents of non-compliance
with voluntary codes concerning the health and safety impacts
of products and services occurred. In addition, no incidents of
In 2010, the Pennsylvania Gaming Control Board instituted a
regulatory fine of $5,000 to Lottomatica Group’s subsidiary
ATROnIC Americas LLC. ATROnIC was fined for shipping
unapproved software to a casino property in Pennsylvania.
non-compliance with regulations concerning product and service
In 2010, SPIELO received and responded to one external customer
information, and labeling occurred. The same holds true for
complaint. The complaint was regarding parts that were not
regulations concerning marketing communications, advertising,
included in a kit that was sent to the client. A new checkpoint
promotion, and sponsorship.
was added to the kitting process. The complaint was filed on
The organization’s procedures require product and service
information and labeling for the sourcing of components,
114
August 2, 2010 and resolved on Aug. 31, 2010.
.
Communication with clients
GTECH’s Account Teams
GTECH is committed to deliver superior customer service and is
guided by its Customer First operating strategy, which is based
on enhanced customer understanding. In 2010, the company
renewed its focus on its customers’ needs and requirements to
create a customer-centric organization, with its Account Teams
consist of a variety of people who
support the company’s customers on a
at the core.
day-to-day basis. These teams
GTECH G2 has one of the highest customer satisfaction ratings in
represent the face of GTECH and are
the iGaming industry. The Account Management team is
responsible for maintaining relationships with commercial and
WLA clients. The team has a dedicated CRM manager and system
to provide the best service to customers. Also, GTECH G2 has a
dedicated client services team that works with customers on
operational requests. Through its managed services division,
GTECH G2 has a dedicated CRM team that is designed to work
with customers, aid in the development of websites, and create
the most entertaining and enjoyable experience for players.
At SPIELO, a multi-functional team of experienced professionals
totally dedicated to customer support is created for each and
every client. This Client Service Team (CST) model ensures
customer support through focus, integration, and teamwork. This
team is in constant communication with each member and with
the client through the Client Service Team Manager (CSTM), and
the lifeblood of the company on many
different levels. The Account Team is
intended to bring together the
necessary resources to develop and
implement an account plan that will
deliver exceptional services and
maximize the revenue potential of
GTECH’s customer.
they work closely together to reach common goals. The CSTM is
the single point of contact and the internal pivot point for the
client. This proven business model ensures a client-centered focus,
Customer Satisfaction
along with easy and direct access to SPIELO expertise.
Between September and December 2010, GTECH conducted a customer satisfaction survey by interviewing 132 lottery directors,
operations/IT and marketing/sales/product managers. The overall
satisfaction increased to 81% from 8% in the previous study.
115
At GTECH G2, individuals in the Account Development Team are
responsible for customer satisfaction. To this end, those in the
Account Development Team strive to contact customers on a daily
basis. The Team uses telephone, email, and Internet-based instant
communication programs such as Skype and instant messenger.
Through weekly and bi-weekly direct calls, clients are able to
contact their account mangers directly, concerning any problems
outside the scope of serious escalation. not only does this method
prove to be beneficial from a professional perspective, it has also
proved to be a key tool in developing personal relationships with
clients, which can aid professional development.
11
Retailers
Lottomatica Gruop’s Code of Conduct is based on the principles
of integrity, trust, respect, and excellence in all relationships with
its retailers.
This chapter contains an analysis of the Group’s relationships with
retailers in Italy and the United States. These relationships display
different characteristics, as they reflect the Group’s different roles
in the two regions.
In the United States, pursuant to agreements with client lotteries
and on their behalf, GTECH provides a wide range of
management services, and assistance, to retailers. In Italy, in view
of the role that Lottomatica plays as a gaming operator, the
relationship with the network of retailers is more direct since they
are important stakeholders, on whom the success of the
distribution of products and services depends.
Lottomatica’s games and services
Retailers in Italy
distribution network uses 265,300
In Italy, Lottomatica has developed a continually developing
real-time terminals
(+6.9% compared to 2009) at over
116,500 retailers (+6.5%
extensive networks in Europe in terms of market presence.
range of games and services which represents one of the most
In 2010 Lottomatica’s network in Italy managed games and
services involving approximately 3.4 billion transactions, worth €
2 billion.
compared to 2009).
11
The gaming network
The retailers in Lottomatica’s network that offer gaming
represent 5% of the total number of retail locations within the
network. The gaming network provides an extensive presence
throughout Italy. Most retailers also offer more than one game
from Lottomatica’s portfolio. The regions with the highest density
of retailers are Lombardy, Lazio, Campania and Sicily.
The gaming distribution network
provides extensive coverage across the
country, with a high level of
diversification in terms of channels. In
2010 Lottomatica’s gaming network
managed around three
billion
transactions, totalling almost
€ 16 billion.
The network’s breakdown by product category demonstrates a
high degree of diversification of distribution channels, which
involve mostly tobacco shops and cafes Channels also include
newsagents, post offices, bookmakers, retailers for organized
catering operations, petrol stations, large-scale retail trade and,
more recently, ships.
118
Bar code readers, for quicker and more secure acquisition of
The services network
data from bar codes.
The Lottomatica services network in Italy includes over ,000
outlets (including around 2,00 outlets at which Lottomatica
In 2010, the product offering throughout the network was
provides processing services to third parties only), 114,204 POS
expanded and the technological infrastructure was adjusted to
terminals and around 32,00 LIS printers, which are dedicated
improve the speed of transactions. Important projects were
terminals for printing stamp duties.
carried out, in order to make the delivery of all services offered
on POS terminal game easier and quicker.
Lottomatica
terminals
represent
a
broad-based
network
throughout the country, which means that there is a terminal for
every 525 inhabitants. The network’s real-time connections also
guarantee a high degree of
reliability
with
respect
to
transactions.
A comparison with the most
popular channels of services
illustrates
how
extensive
Lottomatica’s network is. The
Italian banking channel has a
In 2010, 500
million transactions worth over
€ 11.3 billion were conducted using Lottomatica Italy’s
services network. The network managed an average of around
24 million electronic money transactions per day.
network of around 34,000
employees (with around 40,000 ATMs) while the Italian Post Office
has 14,000 branches.
Lottomatica’s services infrastructure is composed of a range of
technological solutions, each of which is specifically designed to
provide a wide range of services:
banking POS for the delivery of top-up and payment services,
LIS printers for the sale of revenue stamps;
Gaming terminals that may be used to deliver more complex
services, such as ticketing, social security tax services and
prepaid cards;
11
Lottomatica is an important
ally for retailers, andpromotes their
Relations with retailers
Lottomatica uses many tools to improve its efficiency, listening to
and identifying problems with the network, organizing round
tables with retailers, “use of headphones”, providing operators
entrepreneurial capacity.
with support on outbound and inbound calls, and conducting
fieldwork, visiting and interviewing retailers in major Italian cities.
Lottomatica exercises special care, when dealing with its retailers,
as to ensure they are able to provide the best possible service to
customers. The Company provides ongoing support, which includes
The advantages of the Lottomatica network
for retailers
Reliability: financial transactions are managed
using the most advanced security standards.
the following:
Proactive logistics, which involves sending inventory supplies
and materials to retailers, based on careful monitoring of the
client’s requirements. That way client does not have to submit
requests for supplies. On average, each point-of-sale receives
Convenience: value-added services are updated
automatically and do not require the management of a warehouse;
2.5 monthly visits from specialized Lottomatica operators.
Contact Center, which operates from :00 a.m. to midnight,
seven days a week. The service involves managing calls by
Speed: procedures for providing services that are
simple and quick.
Comprehensive range of services: the package of
services offered at the various retailers is an industry benchmark.
retailers, structured according to the type of sales network, to
better meet different needs. On average, the Services Division
alone handles over one million calls per year, relating to various
issues concerning administrative accounting, technical support
and general and commercial information. For more complex
requests, a back-office administrative unit is available. In 5%
of cases, the unit can devise a solution to the user’s issue, within
three business days.
ales support, which provides ad hoc materials. Materials
includes: service manuals, brochures with frequently-asked
questions, and sales guides for complex products such as social
security tax services or Lottomaticards;
120
Organizing meetings with selected retailers, focussing on
specific topics.
Customer
satisfaction
survey
conducted
by
annual
questionnaire.
Management and development of Lottomatica’s network at
national level through a widely distributed network of agencies
throughout Italy, consisting of 135 agents in eight areas.
Source: Gnresearch 2010, surveyed in February and March of each year
Communications with retailers
In order to support, develop and optimize relationships with its
network
of
retailers,
Lottomatica
has
implemented
a
differentiated communication strategy, using the following tools:
newsletters: “Gioco Punto Servizi” and “Gioco Punto Servizi
news” are newsletters created to ensure that all retailers
receive continual updates on all game and service
developments. Retail outlets benefit from the rich and
detailed content in these newsletters. By publishing two types
of newsletters, Lottomatica is able to provide targeted and
diversified
information,
based
on
different
product
121
requirements. In 2010, there were six issues of each
outlets may enter the Resellers Portal to benefit from
newsletter, for a total of 350,000 copies (+1% compared to
information and services relate to their businesses and on
the previous year).
incentive programs.
Conventions: every two years Lottomatica organizes a
Direct
mail
and
Outbound
contacts
are
tools
of
convention and invite the top performing retailers. The purpose
communication, used to achieve a direct and immediate
is to facilitate retailers’ directl involvement in new business
dialogue with the retail network.
opportunities, in the results achieved, and to increase the sense
of partnership between Lottomatica and the network.
Road shows: Lottomatica periodically organizes dynamic
Training
travelling activities with retailers, in order to allow them to
Training owners of points of sale continues to be an important
obtain a wide range of information on new products and best
factor, both as a tool for economic growth and as a way of
practices and to interact directly with the Company.
promoting socially-responsible values. Lottomatica has designed
Direct mailing: sending printed marketing materials allows
the Company to reach all retailers, or specific sub-groups for
and implemented various training courses based on the type of
user: Sales Agents and Retailers.
all one-to-one communications on administrative and
The specific goal of this training is to ensure high levels of
accounting matters, contracts, commercial and promotional
awareness about tools that produce a high standard of service.
topics.
The Company is committed to developing training programs that
Communications over terminals: using this means of
communication, all retailers equipped with terminals, or
individual subgroups, may be reached with this equipment, in
a speedy and secure manner. Messages may be saved by
retailers on the gaming terminals. Therefore, retailers can
search and review previously received messages at any time. It
is possible for retailers to check previously sent messages
combine skills and motivation, while considering the needs of
those for whom the training is intended, meanings agents,
retailers and, the gaming and service market. The training
programs must also comply with the core values of the industry,
which are legality and social responsibility in gaming. In order to
provide training, Lottomatica uses professional trainers known as
Training Managers and Field Marketing Managers.
concerning issues relate to the management of the point-of-
In providing training to retailers, Lottomatica pays particular
sale.
attention to increasing professionalism, in order to achieve
Web
communications:
in
addition
to
traditional
communication tools, there is an area dedicated to retailers
on the website at www.lottomaticaitalia.it. Owners of retail
122
adequate knowledge of management systems for games and
services, and the communication of moral and social values
associated with the spread and dissemination of the culture of
legal and secure gaming.
Through specific training
Throughout the year, online training courses were held (10eLotto,
Lottomaticard) in addition to classroom training, in order to
programs, Lottomatica also involves
utilize a different channel of distribution of information.
Retailers in observing the
In 2010, the training activities intended for the commercial
principles and practices of
totalled approximately 400 trainees, with 3,500 hours of training.
responsible gaming.
network consisted mainly of lotto providers. Their activities
The approximately 350 new video lottery operators totalled 1,400
hours. Finally, the approximately 3,00 Lottomatica retailers,
totalled
approximately
18,000
hours,
to
develop
the
Lottomaticard business.
Training for sales agents relates to the presentation of the
Training content for retailers
Training on the range of games and services for
all new retailers,
Updates on new products, services and terminals,
Company, its style and product lines. Training includes sessions in
the field with the relevant Area Manager. SessionS involve issues
concerning to the product portfolio, technology assets, such as
gaming terminals, gaming software, and showcases, content and
contractual practices in use, trade marketing and merchandising.
Special initiatives relating to administrative, accounting and regulatory content, systems, sales
techniques and visual merchandising,
Promoting the image of gaming as an opportunity for recreation and socialising,
Promoting the culture of legal and responsible
gaming, for the protection of retailers and gamers.
Important training initiatives are differentiated to
suit the various sales channels.
123
Retailers in the United States
The majority of lottery retailers are comprised of convenience
stores and supermarkets. However, drug stores, dollar stores, and
Lotteries grant licenses to retailers (also known as “lottery agents)
to sell lottery tickets. Retailers need to be supported with a wide
range of services in order to manage their business successfully. As
big box retailers also sell lottery tickets. Lotteries have been
adjusting their service offerings to accommodate these “new”
retailers.
a full-service provider and premier vendor, GTECH is capable of a
vast array of deliverables for lottery retailers including installation
The main services offered by GTECH to lottery retailers are
and removal of equipment, training, communications support,
discussed in more detail below.
dispatching, and field service.
GTECH’s relationship with each retailer base is unique, and
contingent upon the type of requirements and service
Training
agreements that GTECH has with its lottery customer
The company manages and executes retailer training for its
(governments and licensed operators who run the lotteries.) The
lottery customers. Sessions can be customized for large groups or
scope of support may vary but the effort that GTECH puts forth
one-on-one sessions, in the retailer locations. The training
is always the same. GTECH is committed to delivering superior
content covers the vast scope of lottery sales, including helping
customer service and is guided by its Customer First operating
lottery retailers understand and promote responsible gaming;
strategy, which is based on enhanced customer understanding,
teaching retailers to follow a lottery’s sales guidelines; increasing
redefined customer relationships, and delivering the highest
the knowledge on how lottery products work so retailers can
valued products and services.
provide accurate information to players; and, finally, teaching
retailers how to sell and validate tickets.
GTECH executes retailer support
on, behalf of its lottery customers to
Communication support
approximately 165,000 retailers
GTECH’s national Response Center (nRC) provides lottery retailers
across the United States.
retailers may call, toll free, twenty-four hours a day, seven days a
with a dedicated team of Hotline help desk associates that
week. GTECH’s nRC supports retailer calls from 25 jurisdictions
with call center locations in Providence, Rhode Island; Austin,
Texas; and Atlanta, Georgia, along with outsourced operations
in Tennessee and virginia.
124
Help desk associates provide retailers with a single point of
contact and are trained to handle equipment issues and supply
requests, while answering any general questions. The nRC uses
a call management system to manage service real-time, to track
and report statistics relating to performance, and to develop
service improvement plans. The call management system tracks
metrics such as call volume, service level, average speed to
Quality
answer, average queue time, abandoned calls, retailer hold time,
and average call duration.
The service level goal is to answer
85% of all retailer calls within 60
seconds.
The levels of quality of calls expressed by the retailers on the various aspects of the Quality Assurance Form are rated on a scale ranging from 1=
unsatisfactory to 100= exceptional. On a monthly
basis, a minimum of six calls per associate is pulled for Quality Assurance (QA) review in an ongoing quality control effort. Associates are scored
on six call recordings per month with a current
goal of 90 out of 100 points, or better, per call, as
part of our Performance Management process.
Quality is measured on 5 key sections of the call:
Opening;
Communication/Confidence;
Compassion;
Job Knowledge; and
Closing.
In 2010 the average QA score was 92.70%, up
from 91.23% in 2009.
125
An Intranet page specifically for the nRC allows associates to see
FIG. 47 THE WORKFLOW CYCLE
at-a-glance updates and important dates and information. Each
group within the nRC has its own page detailing information and
events and showing pictures of the members, to foster the relationships between all the call centers and Engineering groups.
Field Service
The nRC help-desk associates can also dispatch Field Service Technicians (FST) to provide onsite retailer support. GTECH’s U.S.
Field Service organization incorporates 800 FSTs spread across 25
domestic U.S customers. These resources are responsible for approximately 25,000 pieces of equipment. FSTs are available
twenty-four hours a day, seven days a week to provide service,
routine maintenance installation, removal of both communication and POS devices, and integrated preventative maintenance
activities.
Any kind of technology requires constant monitoring and
maintenance. GTECH’s strategically designed and customized
In 2010, FSTs responded to over
685,000 service visits.
maintenance program fulfils the need for proper upkeep and
maximum operations uptime. The company put into place a new
Service Management Tool (SMT) to ensure that this happens. This
tool adds automation to the entire life cycle of a retailer service
call. It covers every single discipline of GTECH’s field services,
including installations, moves, removals, hotline, repair depot,
and dispatch.
SMT enables retailer-focused service delivery, with the singular
goal of customer satisfaction. This advanced technology delivers
a level of automation that provides real time, intuitive
dispatching of the optimal FST for each service call that is not
resolved by a Call Center Associate.
12
Complaints
Retailer complaints are reviewed by the Quality Assurance
Methods & Procedures team to determine if customer service
skills were utilized and proper troubleshooting occurred on the
call, in problem setting and solving stages.
In 2010, 80% of all external call recording requests were
completed within 2 hours, as shown in tab. 15. Delays were due
to difficulties locating call recordings, based on search criteria or
archived data, and the size of the request.
TAB. 15 RETAILERS COMPLAINING ABOUT THE SERVICE
Year
External
Request
% Complete
in 72 ore
2007
90
96.66
2008
143
98.60
2009
141
86.52
2010
86
80.23
In 2010, outside of customer complaints, GTECH did not receive
any complaints by regulatory bodies regarding leaks, thefts, or
losses of customer data.
12
Suppliers
purchasing types: general and personal services, advertising,
various services/consultancy, consumables/logistics, hardware and
The Group’s guiding principles, concerning relations with its
software.
suppliers, are based on respect, trust, integrity and excellence.
The Company is aware that, in the pursuit of its mission, the
In particular, there were 3,21 suppliers based in the United
purchase of intermediate goods and services (needed for
States, or 55% of the total number. There were also 1,484
production activities) supports aggregate demand. The purchase
suppliers based in Italy, or 25% of the total number. Other major
of these goods and services also contributes to the welfare of
suppliers were located in Canada, Great Britain, Australia and
economies in which the Group operates.
Germany. There were 34 other suppliers, based in other
countries. This demonstrate the global presence of the Group,
All suppliers and independent contractors are asked to sign the
concerning supplies it sourced.
Company’s Code of Conduct. By signing the Code of Conduct,
each supplier agrees to comply with, and ensure that any person
acting on its behalf complies with the principles and rules of the
Code. Any conduct that is intended to cause, instigate, or
facilitate the violation of any rule or principle contained in the
Code, constitutes grounds for express termination of any
agreement between the parties.
In 2010, Lottomatica Group
incurred intermediate production costs
of €
985.9 million, which was a
8.9% increase compared to the
previous period.
The beneficiaries of the € 85. million cash flow which was spent
for intermediate production costs, were 5,34() suppliers
worldwide representing 3 different countries. All of the
beneficiaries were qualified, and were divided into the main
128
(6) This data represents those who supplied to Italian operations. For the
rest of the world the relevant entities involved were GTECH
Corporation and GTECH Global Services.
Supplier management and qualification
The Company does not discriminate on the basis of race, colour, belief, religion, ethnic
origin, age, disability, handicap, sex, sexual orientation, civil status, marital status,
military status or any other condition protected by law. The Company’s policy complies
with applicable statutory and regulatory provisions.
Qualification is recorded using a dedicated website. A supplier may remain on the list
for three years. At the end of this period, the supplier will be re-qualified.
The Purchasing Office invites suppliers that wish to be qualified to submit registered
and general information. They must submit
information about the size and organization
of their company, to indicate they have a
documented quality control system or some
type of certification. They must also include
a thorough description of their working
methodologies.
The
Purchasing
Office
verifies the information provided and, if it
complies with the relevant requirements,
qualifies the supplier and adds it to the List.
A supplier is considered compliant and
qualified
when
it
holds
a
Lottomatica Group selects its suppliers on the basis of specific
qualification procedures and requires that they sign the Code of
Conduct. By signing the Code of Conduct, each supplier agrees to
comply with, and ensure that any person acting on its behalf complies
with the principles and rules of the Code.
Beneficiaries who don’t comply with the civil Code norms (e.g.
regarding human rights), will be subject to specific sanctions. The
sanctions will be as reported in agreements stipulated with the
Company or in specific documents which regulate the charges
assigned.
“quality
management system certification”, issued by a recognized national or international
organization. A supplier is also considered qualified when it is already a qualified
supplier to leading national or international companies; when it has obtained a score
of 0 or more on the qualification score card, or when its turnover for the previous year
has exceeded € 50 thousand.
Should it be deemed necessary, the Purchasing Office may conduct an audit at the
supplier’s premises, making arrangements with the supplier about the time and the
procedures for conducting the audit.
Only “critical” supplies are subjected to the assessment procedure twice a year.
12
A substantial portion of supply contracts are subject to European Community regula-
The supplier quality index
is expressed on the supplier’s
score card by means of a score
that indicates : ≥ 80 = very
good , ≥ 70 < 80 = good, ≥ 60
<70 = adequate , < 60 = 1 =
should be monitored, 0 =
qualification revoked.
When the score indicates that
monitoring is required, the
supplier is not considered
completely satisfactory, yet, it
is kept on the list pending an
improvement
in
the
assessment.
For
these
suppliers, careful monitoring is
performed and a particular
level of caution is used when
issuing further orders.
In the course of the operating
period, a procedure was
adopted to increase the scores
of card for suppliers with
OHSAS 18001 certification in
relation to workplace safety
and health.
130
tions and are therefore awarded by means of public tender. During the operating period the Company issued European public tenders. In the same period, six tenders
were awarded, one of which was issued in 200.
The Company does not adopt any policies or practices that are intended to give preference to local suppliers, either by the Organization as a whole, or by the individual operations.
Communities
In relation to the development of social responsibility programs for local communities, the
Group decided to expand its initiatives initially created for Italy and the United States,
which represent the most important operations in terms of the Company’s historical roots.
The current expansion involves, specific objectives that involve the Company’s.
As a result of this decision, the Company’s volunteer initiatives are divided, as shown in
the following three paragraphs.
Activities that benefit communities in Italy
Lottomatica’s activities in Italy contribute to the support and development of local
communities through complex initiatives that may be classified under three categories:
state funds, as provided by Law no. 2 of 1 for the conservation of artistic
heritage and landscape; and the conservation of cultural activities;
funds raised by special lotteries, in support of social initiatives;
other Company funds, which the Company allocates to the community
State Funds
The focus of state revenues coming from gaming or a portion of it to a specific types of
social realities is practised common in both in Europe as well as in the United States
In Italy, Law no. 2 of December 1 established that a portion of the proceeds from
the lotto game be allocated to funding initiatives to the arts community, transferring a
portion of tax receipts from the lotto, from the Ministry of the Economy and Finance to
the Ministry for Cultural Assets and Activities, to be used for the recovery and
conservation of artistic heritage, landscapes and for cultural activities. The procedures
associated with this allocation were originally established in a three-year plan, and after
131
the changes that were made recently to the annual plans that define the total annual
amount and the works and projects to which these resources are allocated.
The lotto plan for 2010 includes an investment of €0,80,584. The plan had already
been reconfigured in the Ministerial Decree of September 25, 2008. The 2010 plan
includes works to be undertaken on the Duke’s Palace in Mondragone, in Campania,
the Palazzo Pilotta in Parma, the Certosa Complex in Pavia, the Royal Palace in Turin,
the Lucera Fortress in Puglia, the national Archeological Museum in Cagliari, the
The Lotto plan for 2010 issued by the Ministry for
Cultural Assets and Activities allocated over
Roman Shipyard in Pisa, the Roman
Theatre in Gubbio, the Duke’s Palace in
Tagliacozzo, Museum and archaeological
sites in Tarquinia and Gravisca in Lazio.
€60 million from tax revenues on lotto games to be
used for the recovery and conservation of artistic
heritage, landscapes and for cultural activities.
Special Lotteries
In 2010, pursuant to the Director’s Decree
issued January 1, 2010 by the Italian State
Monopolies Authority, a new lottery was
launched to help support social initiatives that serve children and the disabled.
The Sanremo Lottery provided support for the purchase of a vehicle for a project called
“The Travelling House of Dreams”. The project is sponsored by a non-profit organization
called “Sogni” (Dreams), which delivers its program while travelling around Italy in a
camper van.
The purpose of this non-profit organization is to help seriously ill children, by granting
their wishes and helping them achieve their dreams.. In order to relieve their suffering,
the organization distracts them from their usual routine of medical treatment.
For this project, which Sogni operates, with a contribution from the lottery, a camper van
will travel around Italy, and visit the home of each ill child that will benefit from the
initiative. The purchase of the camper van will allow the organization to provide comfort
to sick children, most of which are confined to bed, unable to leave their homes.
132
Lottomatica Funds
Scratch and Win:
Quiz Scratch Cards
In 2009, the Scratch Quiz instant lottery was established
by a decree law, in order to
support residents of Abruzzo
who were affected by the earthquakes of April 2009. In
2010 the Scratch Quiz instant
lottery, provided support for
reconstruction activities in
Abruzzo.
During this period of economic uncertainty in Italy, Lottomatica’s commitment to
investing in sectors that have experienced particular hardships is a testimony to the
Company’s promise to make a real contribution to people’s lives. Sectors affected by the
economic crisis include culture, sport and social services. Lottomatica’s choice with respect
to the community reflects its true appreciation of the cultural, sporting and social projects
and initiatives, focusing on those that have already been initiated in the last few years,
whose continuity we wanted to ensure.
Decisions about where to provide support have been guided by the desire to support
areas where public intervention cannot always provide answers and the required
resources . Cooperation between public and private entities can, therefore, meet needs
that would otherwise fail to be properly addressed.
In 2010, Lottomatica decided to allocate a portion of its budget, which is normally used
for promotional activities in relation to the Lottery and Scratch and Win cards, to cultural,
sporting and social initiatives, in an attempt to reach a balance between the needs of
society and the need to grow its own business.
Using proceeds from the lotto game and the
Scratch and Win cards, Lottomatica has invested
over €8
million in social, cultural and sporting
projects in Italy.
133
In 2010, there was a reorganization of investments in the
community, with greater attention to the issue of responsible
gaming, which resulted in a series of initiatives aimed at
preventing any social impacts caused by gaming. In this regard, to
provide an overall picture of the Company’s commitment to
society, this type of initiative is described in detail in Chapter 2.
TAB. 16 LOTTOMATICA’S CONTRIBUTIONS TO THE COMMUNITY
(euro)
2010
2009
Sport
3,384,123
4,192,132
Culture
3,786,966
3,898,825
Social
1,169,645
1,784,569
Total
8,340,734
9,875,525
134
Social initiatives
With respect to social projects, the Company’s chief goal is to continue to strengthen its ties
with the community. To this end, in line with the strategies that were adopted in previous
years, the Company has continued to focus on projects that relate to children and the
disabled, and provide support for training and research.
The “third sector”, which is composed of non-profit, non-governmental associations that
have been negatively affected by the economic crisis over the last few years, has benefited
from the Company’s committed support. This is evident in the ongoing nature of the
Company cooperation with associations and institutions involved in a wide range of projects,
all with strong roots in citizens’ lives.
Spirito di Stella
Spirito di Stella is the first catamaran in the world that is fully accessible
to persons with disabilities. In 2010, it continued its “Free Spirit” project,
which involved a sailing trip accommodating persons with limited
mobility.
The trip takes place on board a catamaran with no architectural barriers.
It docks at Italy’s main ports each year. Each year, the trip involves
around 700 people, 200 of whom are disabled, accompanied by doctors
and physical therapists. They spend a day of freedom on board this
completely accessible, exceptional vessel.
The goal of the initiative is to provide a large number of people with an
experience that goes beyond the limits that is imposed on them, not so
much by their disability, but the dire shortcomings in facilities across our
country. The tour also raises public awareness of the concepts of “design
for all” and the importance of eliminating architectural barriers.
135
SOCIAL INITIATIVES
AREA
ASSOCIATIOnS AnD InITIATIvES SUPPORTED DESCRIPTIOn OF InITIATIvE
Children
AVSI, Istituto Don Calabria, VIDES
Foreign adoptions
Annual support for distance education for children and youths in Albania,
Latin America and kenya. Lottomatica has been supporting this initiative
since 2001, helping many students to acquire skills, while learning a trade
Children
Ai.Bi.
“Giocando all’accoglienza”
(Recreational activities)
Redevelopment and expansion of the Ai.Bi Centre in Messina, and
facilities used for recreational activities for children from disadvantaged
families
Children
Italian Red Cross
Red Cross Gala
The Red Cross’s major gala, held to raise funds for projects to benefit
children all over the world
Children
Bambino Gesù Childrens’ Hospital
Palidoro (RM)
Redevelopment of the Palidoro Building (Rome) by establishing an
Imaging and nuclear Magnetic Resonance Department
Children
ABIO Foundation
Daycare Facility at the Partinico Hospital
Creation of a day-care facility in the pediatrics department of the
Partinico Civic Hospital, and funding of courses for ABIO volunteers that
assist at the day-care center
Children
WFP - World Food Program - School
meals - Pakistan emergency
This project involves the distribution of assistance and the implementation
of reconstruction projects in areas affected by the devastating floods that
took place in the summer of 2010
Disability
AIRS
An initiative that takes place annually to raise awareness about the
national Day for the fight against deafness
importance of preventing problems with hearing and their social cost
Disability
Santo Egidio Community
“Down with Grey”
Disability
Emergency
Rehabilitation center in Iraq
Disability
Patatrac Cooperative
Workshops for disabled children
Research and training
Telethon
Research project by Professor Cecconi
13
Establishment of nine art workshops for disabled adults in working-class
neighbourhoods in Rome. Exhibitions of works created by participants are
curated by academics professor from Università Roma Tre
A rehabilitation and prosthesis manufacturing facility in Sulaimanya has
been established in Iraq. The facility will provide physical rehabilitation
and social reintegration for former patients, and support for cooperatives
that have been launched through the association
Workshops providing opportunities for artistic expression at the national
Museum of Musical Instruments, in which music teachers provide
instruction to groups of children ages five through eight. The workshop is
aimed at promoting the full integration of disabled children
Sponsorship of a researcher at the virtual Dulbecco Telethon Institute,
who is conducting a project entitled “The Role of Autophagy in Muscular
Disorders”
SOCIAL INITIATIVES
AREA
ASSOCIATIOnS AnD InITIATIvES SUPPORTED DESCRIPTIOn OF InITIATIvE
AMREF
Training Project in Sudan
Komen Italia
Race for the cure
Inveneo
ICIP Project
Harambee
“The Art of Solidarity”
Providing support for the rebuilding of the national health system in
Southern Sudan, by developing and training local human resources
A mini marathon takes place in Rome, Bari, Bologna and naples to raise
funds for breast cancer. The funds raised are used for research projects
and activities for the prevention of breast cancer and support for breast
cancer patients
A program that develops computer and technical skills in areas of Africa
where such skills have not yet been developed. The program aims at
training technicians and IT experts working with small local businesses,
in order to promote the dissemination of technology among private
citizens and local institutions
Programs have been implemented in various African countries, such as
the Democratic Republic of Congo, Cameroon, kenya and Sudan. The
purpose is to improve educational training and the quality of teaching
and to provide training and support for women
Lottomatica-Elecom Basketball
Support for the Lottomatica - Elecom team, a
wheelchair basketball team, dates back to 2007.
The goal of this sporting initiative is to end the
culture of dependence, and replace it with human
development and social integration.
In 2010, after being promoted to the A1 league, the
Team achieved impressive results and finished in
second place in the A1 league championship,
ranking among the top four European teams in the
Champions Cup.
13
Cultural initiatives
The Lotto game has always been associated with the arts community. This association
dates back to the end of the 1th century when, for example, Pope Innocent xII
authorized the use of lottery revenues to fund the completion of the Palazzo di
Montecitorio, which is the current seat of the Chamber of Deputies. Another example
was in 131, when Pope Clement xII decided to channel the proceeds of the lottery to
fund public buildings and facilities, such as the construction of the Trevi Fountain.
Today, Lottomatica has renewed its support of culture, by allocating a portion of its
budget, which is normally used for promotional activities in relation to the Lottery, in the
knowledge that it is contributing to the strengthening of the historic link between Italy’s
most popular game and high art, and guided by the conviction that it is providing a
valuable opportunity to a sector that represents our country on the world’s stage.
MAxxI, the National Museum of xxI Century Arts
In June 2010 Lottomatica’s became a partner of the Museum’s
educational program, funded by the Lotto game. In December, visitors
were encouraged to attend a free initiative entitled “Take art and put
it aside”, involving three different activities, to suit all tastes and ages:
take away art, art mediators and arts laboratories.
TAKE AWAY ART - Visitors to MAXXI were given an opportunity to
take a bag at the museum’s ticket office and fill it during the course
of their visit. Visitors filled their bags with “take away” captions from
15 of the most significant works in the “Space” exhibition. Then, the
visitors took the captions home, in order to keep their experience
alive.
I Play with Art - Free workshops for 200 children and guided tours
of exhibits on architecture and art works for 400 parents at MAXXI.
ART MEDIATOR - Five art mediators were available to help visitors explore and understand the exhibits.
The mediator provided an original and interactive approach to the art works. Based on the questions
submitted about the works, the mediator constructs an active dialogue with the visitors leading to a shared
and in-depth appreciation of contemporary art.
138
CULTURAL INITIATIVES
AREA
ASSOCIATIOnS SUPPORTED AnD InITIATIvES
Art
Vittoriano Complex
Major exhibitions
Art
Palazzo delle Esposizioni
(Exhibition pavilion)
Major exhibitions
Series of events
The serious game of Art
Palazzo Barberini
Institutional Partnerships Teatro dell’Opera
Rome’s Opera House
Institutional Partnerships 5th Rome International Film Festival
Institutional Partnerships Parco della Musica Auditorium
Institutional Partnerships September Concert
DESCRIPTIOn OF InITIATIvE
Each year, the vittoriano Complex, which was restored with funds from
the Lotto game, provides a venue for the exhibits of two great artists or
important trends. In 2010 the exhibitions featured Impressionism and
the works of van Gogh. For each exhibition, Lottomatica organizes free
guided tours for employees and their family members
Lottomatica has been a sponsor of the Palazzo delle Esposizioni since
200, and continued its support in 2010 in relation to an exhibition on
De Chirico and the Teotihuacan dynasty, which was a pre-Columbian
civilization. Young people under 30 were offered free entry to
exhibitions on the first afternoon of each month
The serious game of Art is a series of free events relating to art,
philosophy and drama. The 2010/2011 series deals with issues
concerning knowledge and emotion, as they are conveyed through
music, film, dance, sculpture, history and philosophy
In 2010 the Lotto Game became one of the sponsors of Rome’s Opera
House. During the year, prestigious opera and ballet performances have
taken place, includig: Tosca, Aida, Madame Butterfly, and Romeo and
Juliet. During the summer season, many works are staged in the splendid
setting of the Theatre at the Caracalla Baths
This festival is a high profile event for film buffs and it is easily accessible
to the public. In 2010, the Lotto Game booth provided an opportunity to
aspiring actors. They had the opportunity to be chosen by RB casting
company to appear in a large-scale Italian production
Sponsorship of “Musica per Roma”, (Music for Rome) a foundation that
manages the Parco della Musica Auditorium, which is an important
cultural facility in Italy and Europe. The Auditorium hosts a concert series
that includes a range of musical genres, as well as theatre performances,
dance series, literary readings, film screenings, and appearances by
authors
Sponsorship of the September Concert, a memorial event for the victims
of the Twin Towers, which took place in Rome on September 11, 2010.
The public was able to attend a dress rehearsal for a concert conducted
by Maestro Maazel, who also held discussions with the public
13
CULTURAL INITIATIVES
AREA
Training and activities
for children
Accademia Nazionale di Santa Cecilia
JuniOrchestra
Training and activities
for children
Bellonci Foundation
“An enchanted year”
Support for the Santa Cecilia national Academy’s children’s orchestra,
with 20 members aged from 4 to 23, in recognition of the essential
values of this young institution, in order to promote its activities in
critical contexts
Aimed at high school students, the project involves reading the most
interesting books of contemporary fiction . Also, the foundation hosts
events that feature the authors of these books
I Play with Art
This slogan is the name of a high-quality cultural and social
project that Lottomatica has supported since 2008. The
project involves educational initiatives, intended for children
ages 4 through 10.
The idea behind the project is to introduce children to art in
a fun and playful way, providing a service that is not just for
children but for the whole family. This type of service usually
costs money, and is out of the reach for disadvantaged
groups. In 2010 the children were given the art of De Chirico
and Van Gogh, contemporary art works from the permanent
collection of MAXXI - the National Art Museum of the XXI
Century. Children also participated in the “Musigiochiamo
insieme” (Let’s play music together) workshop, in
collaboration with the National Academy of Santa Cecilia
and the Junior Orchestra.
140
Sporting initiatives
Sport can function as an extraordinary opportunity to represent ethical values. values
such as healthy competition, loyalty, respect and overcoming adversary are very
important. Also, willingness to sacrifice and focussing on results represent values that
should guide the conduct of every individual. Lottomatica’s activities in this field are
expressed through the medium of sponsorship, the purpose of which is to support
sporting projects and initiatives of national and local importance. Many of the
sponsorship efforts were associated with initiatives that promote sport and the values of
sport amongst young people. Some examples of this focus are the sponsorship of the
Capitolina Roma rugby team, the Milan Baseball team, the School volleyball project, and
the Youth Project.
Participation of the 31st annual “Meeting for Friendship among
Peoples” which took place in Rimini in August 2010
The Rimini Meeting is a summer festival of events, exhibitions, music
and performances attended by around 800,000 people each year. The
purpose of this initiative is to create opportunities for people of different
faiths and cultures to meet one another. The Meeting features a 12,000
sq.m. sports pavilion called the “Lotto Game Sportvillage”. It is entirely
devoted to basketball, volleyball, soccer tournaments, beach volleyball,
table football, table tennis, fencing and rock-climbing. More than 3,000
children were involved in these free activities each day, contributing to
the promotion of sport.
141
SPORTING INITIATIVES
AREA
Sport - youths
Volleyball School
Sport - youths
Volleyrò
Sport - youths
Rugby Capitolina Roma
Sport - youths and
solidarity
Milano Baseball
Sponsorship of the 1th annual volleyball School Tournament.
Secondary school students from Rome and the provinces attended the
tournament. The tournament involved 200 teams and the event finals
were held at the Sports Palace in Rome
A volleyball association in Rome has launched a project called volleyrò
that includes all types of volleyball activities, from micro volleyball to
volleyball competitions. Its teams participate in all youth championships
at the provincial, regional, and national levels. They compete in the
national championship women’s B2 division, and also in the provincial
and regional D division championships. The project involves over 1,500
athletes from Rome and Lazio
This is an amateur rugby club that participates in competitive and noncompetitive games for youth and seniors. It competes in the national
championship in Division B. This is a significant social initiative that
provides rugby training at the Casal del Marmo
This is a baseball team that competes in national league A2 division. Its
participation in a series of sporting and social activities includes:
School Project - designed to interest young people in sport,
Blind Thunder’s Five team, with technical cooperation provided by
the baseball team of the Association for the Blind
Baseball & Softball kids Festival Day, involving the participation of
youths and their families;
Youth Summer Camp - open to 100 youths and their families
Sport - youths
Obiettivo giovani
Sport - solidarity
Gruppo Fiamme Gialle
142
This is a project established by virtus Roma, featuring a significant social
component that promotes sport and encouraging involvement in sport
throughout the country. Its focus is on volleyball and basketball, and
encouraging recreational activities
Support for initiatives that promote the image of the Guardia di Finanza
(Financial Police) sports team. It includes an awards ceremony for the
best athletes, who are mostly Olympic champions; and local initiatives to
promote sport amongst young people
U.S. Communities
efforts such as matching gifts and scholarship donations that
support colleges and universities. As in all areas of giving,
GTECH strives to enrich and strengthen the communities in which
GTECH aims to support programs that serve diverse groups.
the Company operates through a variety of programs, sponsorships, and donations. Lottery systems raise revenue for our cu-
The Company’s higher education support targets include: engi-
stomers’ important social causes, and GTECH and its employees
neering, computer science, technology and business manage-
are committed to contributing their own time and resources to
ment programs.
community and charitable efforts around the world. As a committed corporate neighbor, GTECH works closely with community
and government leaders to better understand pressing social
needs and act accordingly.
In 2010, GTECH donated to organizations such as Bryant University’s World Trade Day and Rhode Islanders Supporting Education (RISE). Bryant University’s World Trade Day is the largest
international trade conference in the northeast region of the
GTECH, SPIELO, and GTECH G2 contributed $821,520 to commu-
United States. The mission of RISE is to provide scholarships and
nity and charitable organizations in 2010.
mentoring to children whose parents are currently or, were formerly, incarcerated. RISE aims to break the intergenerational
cycle of poverty, crime, and addiction.
The focus of GTECH’s charitable
In 2010, GTECH Chairman Donald R. Sweitzer received the Gold
Heart Award from the American Cancer Society. The award is
efforts can be summarized in three
distinct areas: Education,
presented annually to a member of the community who demonstrates extraordinary leadership in enhancing the wellbeing of the Rhode Island community.
Family Services, and Community
and Civic Initiatives.
After School Advantage
GTECH’s flagship community involvement initiative continues to
be the After School Advantage program, which provides compu-
Education
GTECH makes education a priority and, therefore, its largest philanthropic contributions go toward educational programs. In
addition to granting corporate gifts to institutions of higher
ter centres for children during the critical after school hours. It is
also a good opportunity for technical and non-technical employees to share their time and skills with children who need help in
a community.
education, GTECH supports the hundreds of employee-directed
143
Since GTECH launched the After
School
Advantage program in 1999, 152 computer labs
have been installed, including 18 in 2010, up from
10 in 2009.
The goal of the After School Advantage
TAB. 17
program is to address the issues of
- AFTER SCHOOL ADVANTAGE PROGRAMES LAUNCHED IN 2010
children who come home from school to
an empty house because their parents
Lincoln Center Foundation
are working. The program’s purpose is to
William Adams Middle School
lessen the gap of the digital divide for
Fox Point Community Library
disadvantaged children, many of whom
Bradley School
are left behind because they do not have
Boys and Girls Clubs of Las Vegas/McCabe Clubhouse
access to computers in today’s ever-
Boys Club of Columbia County
increasing digital society.
Normandy Middle School
Olneyville Community Library
For the After School Advantage program,
Reed Educational Campus
GTECH donates state-of-the-art computers,
Roger Williams Day Care Center
online technology, computer software,
Crossroads Village Boys & Girls Club
furniture,
Abel Maldonado Community Youth Center
and
volunteer
hours
to
selected programs. The After School
Greater Melbourne Police Athletic League at Carver Park
Advantage program has benefited local
Boys and Girls Club of Lakeland and Mulberry
communities and is a program that
Boys and Girls Club of the Emerald Coast, Escambia Unit
GTECH will continue to grow.
The Da Vinci Center
Koinonia Missionary Baptist Church
Tidwell Park Community Center
144
Tallahassee, FL
Alice, TX
Providence, RI
East Providence, RI
Las Vegas, NV
Lake City, FL
St. Louis, MO
Providence, RI
Jacksonville, FL
Providence, RI
Newport News, VA
Santa Maria, CA
Melbourne, FL
Lakeland, FL
Pensacola, FL
Providence, RI
Dallas, TX
Houston, TX
GTECH Texas launched computer labs #151 and #152 in December.
The first was at the koinonia Missionary Baptist Church, in Dallas,
and the second was at the Tidwell Park Community Center in
Houston. koinonia’s After School Advantage computer lab will
serve the church’s after-school programs and weekend youth
groups associated with the church.
The After
School Advantage program operates in
24 states, the District of Columbia, and Canada.
Tidwell Park Community Center currently services an average of
30 children daily in the After School Enrichment Program. The
After School Advantage lab will significantly enhance these
educational programs by providing a designated area for
tutoring support, computer skills training, research, report
writing, and other educational activities.
145
Family Services
Community and Civic Initiatives
GTECH invests in programs that meet the various needs of
GTECH supports arts and cultural organizations that focus on
disadvantaged families. The company is committed to assisting
inner-city youth and cultural diversity. The company also supports
services and programs that empower families to achieve economic
environmental programs, especially those that seek to preserve
self-sufficiency, provide quality childcare and elder care for families
natural recreation areas for families.
with limited income, and provide assistance to families affected by
drug addiction and child abuse.
Waterfire Providence was one such organization that benefited
from GTECH’s support in 2010. Waterfire Providence was created
One of the charities that benefited from GTECH’s donations in 2010
in 14 to commemorate Providence’s 10th Anniversary of First
was Crossroads Rhode Island which aims to “assist the homeless and
night, its new Year’s Eve city-wide celebration. The spectacle of
disconnected on their journey toward a better quality of life”. They
Waterfire attracts thousands of visitors to the area and is an
do this by providing a continuum of care that includes basic
eloquent testimony to the importance of public art and its
emergency needs, shelter, housing, case management, and
capacity to restore the urban and social landscape.
vocational services for individuals and families.
GTECH’s corporate headquarters overlooks the site of Waterfire,
Many GTECH employees around the world partner with local
which brings the company’s support to life with each summer-
organizations to help families in need, especially during the holiday
time lighting and gathering. Fittingly, GTECH’s hundreds of sites
season. For the past five years, GTECH Georgia has held an annual
around the world also execute programs in their own backyards
holiday food drive for Hosea Feed the Hungry & Homeless, whose
that support the cities and towns in which they work, invoking
mission is providing much needed medical, food, and housing
civic pride and cultural inclusion for all.
solutions to over 80,000 individuals and families. GTECH employees
in Georgia also made a donation toward their annual fundraising
campaign to help Hosea Feed the Hungry & Homeless achieve their
GTECH Supports Special Olympics of Rhode Island
year-long goals.
An example of GTECH supporting community and civic initiatives
GTECH employees in Missouri conducted fundraising activities
was during a special flag-raising ceremony honoring members of
throughout the year in order to have enough money to help a local
the Rhode Island Special Olympics team on June 24, 2010. GTECH
family during the holiday season. Employees worked with the
sponsored eight members of the team who traveled to Lincoln,
Samaritan Center to identify, and provide for, a family that
nebraska, to compete in the national Games.
requested only basic living essentials. Employees delivered the gifts
to the family in December.
The athletes train year-round for the chance to compete in the
national Games and GTECH further rewarded their hard work with
gift cards for expenses in Lincoln. The Special Olympics is an
14
organization which allows tens of thousands of disabled athletes to compete. Rhode Island has
GTECH’s Community Involvement Programs (Dollars for
Doers, Day Off for Volunteerism, and Matching Gifts) encourage
employees
to
volunteer and to support the
company initiatives.
2,00 Special Olympic participants.
Community Involvement Program
GTECH’s Community Involvement Program encourages employees to volunteer their time,
money, and efforts to local charities and initiatives. The company does this through a variety
of different grants and programs including its signature After School Advantage program,
and its volunteer initiatives like Dollars for Doers, Day Off for volunteerism, and Matching
Gifts.
Dollars for Doers
GTECH rewards its employees for taking the time to volunteer in their communities.
Whenever an employee volunteers for a minimum of 25 hours at any non-profit
organization, the company will make a donation of $250 to that organization.
In 2010, 23 employees took advantage of the Dollars for Doers program as $5,50 was
donated to worthwhile causes like Hearts Havens, Inc. which provides for the residential
needs of adults with intellectual disabilities through the development and management of
group homes throughout the Commonwealth of virginia. The previous year, 25 employees
volunteered at non-profit organizations for a total of $,250
Day Off for volunteerism
GTECH’s Day Off for volunteerism program allows employees to take one paid work day per
year to volunteer and perform an act of community service. This program enables employees
to not only volunteer at a local non-profit charity, but at their child’s school, sports leagues,
and other activities as well.
14
One such example occurred when 10 GTECH Rhode Island
Employees of NRC Initiatives
employees volunteered their time at the Salvation Army of
Southern new England to create Thanksgiving Day baskets for
In 2010, employees at the GTECH National
Response Center (NRC) made a commitment to a
year-long effort of helping others. The NRC’s first
volunteer project was launched in August 2010 as
a partnership with the Rhode Island Community
Food Bank. NRC employees offered their time to
the Food Bank facility in Cranston, Rhode Island.
They helped package over 500 boxes of food for
the Rhode Island Meals 4 Kids Program, which is
a partnership between the Rhode Island
Community Food Bank and the Rhode Island
Department of Human Services. This program
provides high-quality and nutritious breakfast
and lunch items for low-income families with
children. More than 10,000 boxes were prepared
and delivered during the first few weeks of
September.
disadvantaged families in Rhode Island. In 2010, GTECH
employees volunteered 230.5 hours to help enrich the
communities where they live and work. This figure is up from the
104.5 hours which were used for the Days Off for volunteerism
program in 200.
Matching Gifts
Whenever an employee donates $50 to $500 per year to any U.S.
based college or university, GTECH will match the donation, dollar
for dollar. In 2010, 1 employees donated $5,150 to their alma
maters through this program.
TAB. 18 EMPLOYEES PARTICIPATION IN COMMUNITY INVOLVEMENT
PROGRAMS IN
In September 2010, employees paired with the
Greater Providence Habitat for Humanity. With
chapters all over the world, Habitat for Humanity
has built over 350,000 houses worldwide since its
start in 1976, providing more than 1.75 million
people in 3,000 communities with safe, decent,
affordable shelter.
A group of volunteers from the GTECH NRC,
including call center associates and members of
the operations team, spent one entire Saturday in
the fall working on a house on Swan Street in
South Providence. In November 2010, another
group worked on a house in North Providence.
148
2010
Charitable CY 10
Number granted
Total ($)
Dollars for Doers
23
5,750
Matching Gifts
17
5,150
Team Grants
3
3,000
Scholarships
15
10,000
Partecipants
Hours
32
230.5
Day Off for Volunteerism
Other Communities in the World
Initiatives benefitting of other communities around the world are
sponsored by SPIELO, which contribute to the well being of local
communities in Canada. SPIELO Moncton participates in development programs through corporate donations, sponsorship of
team sports, community and charity events, and the volunteer efforts of its employees.
SPIELO participates in the Employee Reach Out! Program, which
gives employees the opportunity to take one paid work day per
fiscal year to perform a community service. SPIELO also supports
employees who choose to form a team in groups of 10 or more
and to employees who support various qualified charitable organizations through volunteerism. SPIELO funds a maximum of
four teams per fiscal year.
SPIELO is encouraging employees to participate and is committed to
increasing its initiatives to benefit local communities around the world.
In June 2010, 15 employees participated in Relay For Life, helping
In 2010, a total of 45 employees used 40 days or 300 hours of vo-
to raise money and awareness for cancer research. The total rai-
lunteer time. One significant volunteer day was the United Way
sed was $8,04.23, an increase of more than $4,000 compared to
Day of Caring, where volunteers devoted their time and used
from 200.
their abilities to repair and renovate a community center. Other
A local fundraiser called, Step Up to the Plate raised money for
the local Food Depot, by selling paper plates and second-hand
causes included volunteering for sporting events, school events,
and the Canadian Cancer Society.
materials. The fundraiser, brought employees together, and helped raise a total of $5,4.0.
14
Environmental accountability
Environmental initiatives in the United States
152
152
11
151
programmes that have been started do not yet cover all facilities,
given the structure and complexity of the Group, which has
The activities performed within the Lottomatica Group mainly
operations on five continents.
consist of the activities of a services company and as such do not
generate significant direct environmental impacts, as with most
Furthermore it is important to state that both in Italy and in the
industrial
Company
United States have been implemented to obtain important
acknowledges that, independently of the activities that it
environmental certifications during 2011 (En 1001:200 in Italy
performs, it is imperative that environmental issues are taken
and ISO 14001:2004 in the United States), demonstrating a
seriously and that the Company assume specific commitments
structured approach, which has been adopted in the conviction
and goals in relation to its stakeholders, that it adopts an efficient
that by carrying out commitments to protect the environment,
and reliable monitoring system to identify its environmental
the Group is improving its capacity to produce competitive and
impacts, to track trends that occur in this respect over the years,
profitable goods and services.
production
activities.
However,
the
and to monitor the effectiveness of the actions that it takes.
The Group has implemented energy-saving measures beyond
In the period from 2008 to 2010, the Group’s efforts with respect
those required by law, and is committed to improve its
to the environment involved the definition of a more robust and
environmental management system; it is also taking steps to
reliable data collection process, in particular for Italian branches.
minimise the generation of waste and pollution.
As of 200, the quality of the measurement of environmental
impacts and reports on this issue, with respect to Italian
operations, was good.
During 2010, the Company made further improvements to
The main impacts that Lottomatica’s activities have on the
environmental programs that had been established in previous
environment result from the use of paper as a raw material, the
years, in line with the Group’s environmental policy. This report is
consumption of various types of fuel and energy such as natural
part of these developments, involving the implementation of
gas, oil and electrical energy, and the transportation of people
systematic monitoring of environmental impacts at Italian
and merchandise. The Company also consumes water resources
facilities and the extension of these programmes to the main
and produces waste and greenhouse gas emissions.
facilities located in the United States. Although these are future
commitments, made in relation to all locations worldwide, the
152
These impacts arise from office activities and the operation of the
Company’s branches, activities associated with the management
of the Company’s business, and especially the production
activities of PCC Giochi e Servizi (PCC), which represent its main
industrial facility, engaged in printing operations.
When reviewing the consumption data reported below, it should
be considered that for 2010, operations involved 4 additional
facilities acquired between 200 and 2010, which resulted in an
expansion of the space available to employees and therefore a
greater use of resources.
TAB. 19 CONSUMPTION OF PAPER
Materials
AT LOTTOMATICA BRANCHES IN ITALY
(t)
With respect to all the Group’s facilities located in Italy, paper
consumption relates to normal office activities and PCC’s
production operations. Paper consumption associated with
Paper consumption
marketing gaming materials manufactured by independent
Of which:
companies should be considered as part of the more general
PCC production
impact arising from the management of business activities.
office use
including recycled, per office
equal to
2010
2009
3,342
3,103
3,290
3,041
33
62
19
-
57%
-
In 2010, it was decided to
purchase unbleached recycled paper to
cover at least 50% of office paper
usage. During the year, the proportion
reached 57%.
153
Energy
natural gas and electricity are the main energy sources used to
During 2010, Lottomatica used
fuel the activities at corporate offices in Italy.
electricity produced from 100%
While the consumption of natural gas is mainly due to heating of
renewable sources (RECS-
the Group’s facilities, and does not relate to industrial or
technological processes, electrical energy is used, in addition to
normal office activities, for the operation of PCC’s production site,
and for the management and air conditioning of facilities that
house the data centre servers and technological platforms for the
Group’s IT infrastructure; this type of activity accounts for most of
the consumption of electrical energy.
154
certified - Renewable Energy
Certificate System) in accordance with
the commitment made in the previous
Social Report.
155
Water
Lottomatica takes part into the
Renewable Energy Certificate System
RECS certificates (Renewable Energy Certificate
System) are documents that certify the use of
renewable sources to generate electricity. The idea
behind the RECS dates back to a voluntary
programme started in 2000, funded by the
European Union, whose purpose is to encourage the
development of a common certification protocol for
the international exchange of certificates, to address
a growing importance of environment to consumers
of electrical energy. By purchasing and subsequently
cancelling the certificate (withdrawing it from the
market), the end user demonstrates a commitment
to the environment, by being prepared to pay a
positive delta in relation to the price of electricity
from conventional sources.
Water consumption by Lottomatica is mainly due to civil
purposes, while for PCC it mainly relates to industrial processes.
Per capita consumption is in line with average national figures.
TAB. 20 CONSUMPTION OF WATER
(m3)
2010
2009
91,265
71,095
Lottomatica
61,716
41,435
PCC
29,549
29,660
Water consumption
Including:
The significant increase in water consumption in 2010 is due on
one hand to a more accurate and systematic data monitoring of
the facilities included, and on the other to the reallocation of
employees to an additional facility, which resulted in an expansion
of areas used for office space and associated consumption of
water.
Waste water() in 2010 waste water totalled 85,355 m3, 23,3 m3
due attributable to PCC. no recycling of water.
(7) Since there is no accurate measurement of waste water at
Lottomatica branches, nor is there any industrial processing taking
place in these locations, it was assumed that the volume of waste
water was equal to fresh water consumption. For PCC the recorded
data reflects an accurate measurement of this factor.
15
Waste
Waste typically generated by Lottomatica relates primarily to
printing activities by PCC, and to a minor extent office activities,
consisting mainly of paper, plastics and consumables such as
toner, printer cartridges and electronic equipment. Less than 1%
of this waste was classified as hazardous, based on applicable
regulations.
During 2010, as a result of the introduction of waste separation practices, a
5% reduction of mixed waste was achieved for the first time.
With respect to waste monitoring and processing, PCC’s
TAB. 21 WASTE PRODUCED
production activities require that the amount of hazardous waste
(kg)
generated (mainly washing solutions, fixatives and developing
2010
2009
723,583
738,481
Lottomatica
167,471
176,061
PCC
556,112
562,420
6,256
5,875
Lottomatica
2,808
2,280
PCC
3,448
3,595
solutions) is monitored, and then managed and disposed of in
accordance with applicable regulations.
Total waste generated
Including:
Hazardous waste
The Group’s PCC facility uses
cutting-edge waste management
practices. 99%
Including:
of the total
waste is diverted to separation or
dedicated treatment.
15
Air pollution
Air pollution from Lottomatica’ activities includes polluting
emissions and greenhouse gas emissions.
With respect to air pollution caused by the production process at
PCC facility, the only significant parameter relates to volatile
organic compounds due to the use of organic solvents (vOS),
which measured at a maximum of 4.8 mg/nm3, which is 10 times
less than the statutory limit of 50 mg/nm3).
Greenhouse gas emissions (expressed in terms of CO2 equivalent)
may be divided into direct (Scope 1) and indirect energy (Scope 2).
The first type relates to the direct consumption of energy sources
for heating and fuel for transport vehicles (natural gas and diesel
for building heating, gasoline and diesel fuel for corporate fleets)
and PCC’s industrial activity. The second relates to the
consumption of electricity. These emissions have been calculated
in accordance with the classification of the international standard
ISO 1404-1:200.
TAB. 22 GREENHOUSE GAS EMISSIONS
AT LOTTOMATICA FACILITIES IN ITALY (TCO2 EQ)
Total (Scope 1+2) greenhouse gas emissions
Including direct (Scope 1)
158
2010
2009
5,789
5,414
665
715
Lottomatica and the Carbon Disclosure Project
The Group participates in the Carbon Disclosure
Project (CDP). On behalf of its investors in Italy,
each year the CDP asks 40 large cap companies on
the national stock exchange (S&P/FTSE MIB) for
information about greenhouse gas emissions and
the measures taken to mitigate climate change.
The goal is to encourage organisations to measure,
publicise and manage their own greenhouse gas
emissions and in so doing, provide investors with
information that can be used to better understand
the ability of these companies to address the risks
and opportunities associated with climate change.
Biodiversity
Lottomatica’s facilities are located in urban areas and therefore
they have a negligible impact in terms of protecting the
biodiversity of bordering areas. The area surrounding the
company’s facilities are not subject to specific environmental
protection. Lottomatica fully complies with regulations and
restrictions on land use.
“Parks for Kyoto” project continued in 2010
Lottomatica continued to associate the Lottery brand with the Parks for Kyoto project. In order to offset
carbon dioxide emissions caused by the production of Lottery coupons during 2010, Lottomatica decided to
take part this year in to the planting of native species at the National Park in Cilento, in Pollica. The choice
of plants and planting is conducted in accordance with strict criteria established by the Kyoto Protocol, the
principles of which the Committee complies with. The annual production of over 547 million coupons
produced 2,049 t CO2EQ. Consequently, the Company has committed to the planting of 2,927 trees.
Other impacts
TAB. 23 KM COVERED IN
2010 BY CORPORATE VEHICLES
There are multiple impacts of Lottomatica’s employees mobility
arising from business activities which are particularly significant in
an urban environment, such as the one where local Italian
facilities are located, namely emissions, noise and the use of fossil
fuels.
Ttotal km
1,734,702
Including
petrol-fuelled vehicles
57,876
Lottomatica has a company vehicle fleet of 142 vehicles, fuelled
hybrid petrol-fuelled vehicles
24,753
mainly by diesel.
diesel-fuelled vehicles
1,652,073
During 2010 the Company did not receive any fines or penalty in
relation to environmental issues at its premises.
15
Lottomatica’s commitment to EN 16001:2009 certification
optimising
behaviours
and
resource
management,
and
anticipating future regulatory and statutory requirements.
During the year efforts continued with respect to the adoption of
the Energy Management System (EMS) to obtain the En
The structure of the standard is similar to ISO 001 and ISO 2001,
1001:200 certification, and in line with the recommendation
which have already been adopted by Lottomatica.
made by the European Council (Directive 2008/101/EC of the
European Parliament and of the Council of 1 november 2008),
which establishes commitment to reduce its greenhouse gas
emissions by at least 20% compared to 10 levels by 2020,
In this perspective, during the course of the year, the Company
pursued activities aimed at obtaining this certification. The goal
is obtain certification by the end of 2011.
defining the following objectives to be achieved by 2020: 20%
Analyses conducted last year indicate that over 85% of the MWh
increase in the share of renewable energy, a 20% decrease in the
consumed in Italy by Lottomatica Group facilities was used at the
consumption of primary energy consumption in the EU, a 20%
office at via del Campo Boario 5 /d in Rome, which is therefore
reduction in greenhouse gas emissions, and 10% increase in the
the most important location for applying energy-saving activities.
use of bio fuels for transportation.
This project, which was initiated during the period, was divided
The EMS requires Lottomatica to take action as follows:
into three stages. After the initial stage of installing detection
identify and adopt basic principles for improving its energy
equipment, the monitoring and consumption analysis took place,
performance;
establish energy performance targets, balancing costs and
benefits;
assess the resources needed to achieve the targets;
develop specific procedures to rationalise energy use;
assign responsibility and issue instructions at the various levels
of the organisation;
consider performance with respect to pre-established
standards and targets, making any changes that are required;
share the results that are achieved.
The goal is to reduce costs by rationalising production processes,
10
which made it possible to define an energy savings plan.
The measurements performed during the reporting period
between July and October 2010 made it possible to calculate a
detailed estimate of the components of electrical energy
consumption, as shown in fig. 5.
Environmental initiatives in the Unites States
In 2010 a major process of assessing the environmental impact
for the main sites of the Group in the U.S. was undertaken;
consequently it was possible to extend the perimeter of the data
included in this Report.
The American companies covered by this report are:
GTECH, whose presented data are referred to the Coventry
(Rhode Island, USA) Manufacturing, the Headquarter offices
in Providence (Rhode Island), West Greenwich Technology
Campus (Rhode Island) and all the GTECH fleet; other business
offices and the new call center in Providence (which started
operations in October 2010) are not included.
GTECH Printing Corporation (GPC), committed in the instant
lottery tickets printing and selling. Data reported refer to the
manufacturing and offices site of Lakeland (Florida).
ATROnIC AMERICAS, which is mainly involved in the final
assembling and testing of gaming machines for casinos. Data
reported refer to the manufacturing facilities of Scottsdale
(Arizona) and Grier (nevada) and the offices located in
Spencer (Iowa).
In the following paragraphs, data are presented for the three
companies separately for each topic.
The Group, as mentioned in the previous Reports, is committed to
minimizing its impact on the environment as they conducts
business around the world and continually strive to improve their
environmental goals, fulfilling the following principles:
Conducting operations in a manner that protects the
environment, employees and neighbors.
11
Complying with all laws, regulations, and permits applicable to the products and
operations.
Applying continual improvement and pollution prevention principals to costeffectively reduce the environmental impacts of manufacturing processes and of
products.
Establishing and regularly reviewing environmental objectives and targets.
Making available to the public the environmental performance of its operations.
Ensuring that its employees have the knowledge, resources, and the authority to
implement these guiding principals.
Environmental
Management System
GTECH has been recommended for ISO 14001:2004 certification of its Environmental
Management System at the
end of 2010 (official certification was delivered the 19th of
January 2011). This certification is an internationally-recognized benchmark for creating
and maintaining an Environmental Management System
(EMS), which is a set of green
practices and procedures for
employees to follow. GTECH is
one of the first in the lottery industry to receive this distinction.
12
In the early 2011 GTECH’s manufacturing and corporate office were ISO 14001:2004
certified. Certification required the establishment and implementation of an
Environmental Management System. GTECH’s system has been audited and certified by
an external auditing body.
Also in GPC in April 2011, the ISO 14001 external auditor QSR completed their audits and
have recommended GPC for ISO14001:2004 certification, and in May 2011 GPC has
received official ISO14001:2004 certification.
GPC 2011 Environmental objectives
1. Decrease electrical use by 10% and consequently reduce greenhouse
gas emissions.
2. Establish a solid waste recycling program to reduce waste sent to
landfill.
3. Decrease natural gas consumption by 10% and consequently reduce
CO2 and pollutant emissions.
4. Investigate reduction in volume of liquid waste disposal.
Materials
GTECH’s manufacturing facilities comply with all applicable laws
and regulations, including RoHS (Restriction of Hazardous
Substances Directive). They generate a minimal amount of harmful
waste and emissions in the air. Further, the company has converted
from non-biodegradable bubble wrap and Styrofoam peanuts to
biodegradable packaging material for shipment of certain
equipment such as spare parts.
As an assembly facility, Atronic Americas needs to protect
equipments and components supplied to the customers.
Biodegradable packaging material is used for the shipment of
components to customers. The Company uses 22 different sized
boxes in order to not waste material thanks to the use of the
correct box for the different items.
Input materials consist mainly of paper and ink for office purposes
GTECH is RoHS compliant and follows internal
procedures to ensure they are compliant with all
RoHS regulations and/or requirements. The RoHS
Regulations implement the provisions of the
European Parliament and Council Directive on the
Restrictions of the Use of Certain Hazardous
Substances in Electrical and Electronic Equipment
(2002/95/EC) in order to:
1. protect human health and the environment by
restricting the use of certain hazardous
substances in new equipment;
2. complement the Waste Electrical and Electronic
Equipment (WEEE) Directive (2002/96/EC).
and components which are assembled.
GREEN: A GTECH Pledge
GTECH’s and Atronic’s joint Green Committee is tasked with the
development and measurement of energy-efficient office products,
services, activities, and behaviours.
GTECH employees are an integral part in ensuring the success of programs such as double-sided printing, the
use of reusable mugs, and now composting. GTECH employees have proven to be dedicated to reducing
Company’s carbon footprint through the initiative GREEN: A GTECH Pledge. A dedicated email box:
[email protected], allows employees to submit ideas and suggestions on how they can continue to make
a difference.
13
With regards to the actual products themselves, GTECH utilizes
sustainable forest management, reforestation and continuous
thermal paper for all retailers in the domestic US as of 2011. The
improvement in standards and practices. In addition, these
Company has been on the cutting edge of working with key
independent organizations employ guidelines consistent with
domestic suppliers in developing cost effective thermal paper
GTECH sustainability principles to ensure customers of an
solutions for the terminals. In fact, since the first thermal startup
environmentally sound sourcing process.
in 2003, the Company has reduced or reformulated many aspects
of the thermal paper to reduce the overall basis weight and
caliper, and also used the space on every ticket in a more
environmentally sensitive manner. With the Green Initiative,
GTECH has several of the sites conforming to a non top-coated
In 2010 all the paper used for printing purposed in GPC was FSC
certified (the main part coming from virgin fibres and the
remaining coming from recycled paper).
The following table illustrate the global materials consumption.
thermal paper which contains fewer chemical coatings and also
are in the midst of redesigning the layouts of the receipts to
consumers in order to make them more readable and user friendly
than in the past. All of these improvements were made with the
intent of lowering the overall usage, reducing wasted space and
using more environmentally
sound
products
with
no
change to the expectation of
the performance of the paper
itself.
GTECH have started to use more environmentallyfriendly paper for the forms used to manually place
wagers; typically called playslips or betslips such as
All of the current paper
suppliers are SFI (Sustainable
Forestry Initiative) or FSC
(Forestry Stewardship Council)
hybrid paper types that use
manufacture.
chain-of-custody certified as
well which demonstrates their commitment to using sound
business practices for all GTECH related products.
As a printer, GPC relies heavily on the supply of paper and is
committed to reducing its impact on forests. This philosophy is
similar to the major suppliers of paper who embrace standards
like FSC, SFI and PEFC. The FSC, SFI and PEFC, all promote
14
30-40% less trees to
monitor consumption. The company also uses natural gas and
TAB. 24 MATERIALS USED IN
2010 (t)
diesel at facilities that are equipped with generators.
GTECH first introduced Energy Saving PC Settings to desktop
GTECH
Atronic
Americas
GPC
computers in 200. After the success of initial pilot, the computer
151
36
0
settings were deployed to all Company computers worldwide.
Electronic components
62
16
0
This time around, an additional 1,400 employees accept the
Cables
27
1.3
0
power settings.
Plastic for packaging including foam
16
10
0
1,697
0.51
0
0
12
96
cardboard for packaging
59
1.8
110
Office paper
40
1.8
1.48
0
0
3,575
0.4
0.03
3,335
Category
Assemblies
Metals
Wood
Paper for printing tickets
Ink, toner and ink jet for printing
in the offices
Nearly
75 percent
of
Company computers are using
green energy settings.
Saying “yes” to monitoring computer power is just one of the
many ways employees can help GTECH become a greener place.
Energy
The simple process of setting a computer to go into sleep mode
All the companies are working to implement energy-saving
interventions at their main facilities. Actions taken include
when not in use can reduce energy consumption by up to 85
percent, so it is GTECH’s goal to have 100 percent participation.
conversion to more efficient lighting, lighting timers, Company
discounts for use of public transportation, and awareness
programs
to
encourage
employees
to
turn
off
computers/monitors when not in use. Atronic Americas
warehouse has removed approximately half of the old inefficient
fluorescent tubes, and makes use of natural lighting from the
skylights and open doors.
GTECH occupies approximately 200,000 m2 of building space
worldwide. The Company consumes electricity and natural gas at
these buildings. All buildings are metered, and, where possible,
GTECH space within shared buildings is metered in order to better
15
efficiency investment options.
GTECH Powers Down to Conserve Energy
As a result of these efforts,
GTECH is proud to have participated in the annual PowerITDown Day on
Friday, August 27th, 2010. This initiative was started three years ago, and urges
companies to power down their IT equipment overnight in order to save energy.
This year, close to 18,000 people from various companies participated
throughout the United States, Canada, and Latin America, saving a total of 55
kilowatt hours per person. A whole weekend of energy savings was realized
because the event fell on a Friday. This was a great initiative for GTECH to
participate in, and demonstrates how much one person can help to improve the
environment al quality.
electric and gas consumption
considerable declined. For
2011 GPC will evaluate the
possibility to put in place the
following initiatives:
of
Control the lighting
areas
vada, where temperatures reach above 43° C during the summer
months. This puts a lot of strain on the local area, with a large draw
of electricity to maintain a pleasant working atmosphere.
At GPC the energy consumption for the facility is by itself around
one third of that used for production. They are focusing on two
ongoing initiatives to further improve the operating efficiency at
in
use,
addressing draughts, heat
loss and air leaks;
The majority of the Atronic Americas business are in Las vegas, ne-
not
Continue to improve
operating procedures for energy efficiency.
Evaluate the possibility to use variable-speed motors, thus
saving electricity.
The following table illustrate the global energy consumption except transports, which are considered in § “Other impacts: Transports”.
their site:
1. evaluating the viability of recovering waste heat for cooling
and heating,
2. optimized running of the production equipment and ongoing
TAB. 25 ENERGY CONSUMPTION IN
2010, IN GJ
systematic preventative maintenance.
In May 2010, an energy team was formed to identify opportunities
GTECH
Atronic
Americas
GPC
and implement methods to reduce energy use and costs in the
Natural gas consumption
13,009
950
29,909
plant. The teams undertook projects such as walking through
Electricity consumption
48,658
3,447
25,073
Diesel consumption for
back-up generators
55
0
55
processes to look for signs of unnecessary or inefficient energy use,
energy audits, review of bills, historical energy use and energy
1
Water
GTECH facilities withdraw water from municipal water sources.
The Company is not a major user of municipal or other water
sources, as water is not a major component of its manufacturing
or office operations. GTECH does not currently reuse or recycle
water in its facilities(8).
Atronic Americas only has 2010 water usage data for Scottsdale
office. The Grier and Spencer locations have the water included
in the lease, and shares the usage with other companies in their
respective complexes. In those cases, estimations on water
consumption were made based on the number of people working
on site.
GPC consumption by the end of the year was at 11.0 m3 while
Waste
it discharged .0 m3 into the industrial and civil sewers. The
In May 2010, GTECH facilities in Providence, West Greenwich, and
reduction in water consumption and discharge mainly came from
Coventry began providing specially-marked bins for composting,
efficiencies in setting up the HvAC systems.
which turn food scraps and other organic materials into rich soil
The following table illustrate the global water consumption in
for farmers. As a result of this initiative, GTECH collected and
transferred over .2 tons of compostable organic material from its
2010.
Rhode Island facilities.
Compost means less garbage for GTECH and the landfill and more
TAB. 26 WATER CONSUMPION AND DISCHARGE IN
crops for farmers. Employees were introduced to the program
2010 (m3)
with a free May Day continental breakfast on Monday, May 3,
2010.
Type of consumption/discharge
GTECH
Atronic
Americas
Consumption - municipal water
35,696
7,126
11,990
Discharge - municipal sewage
28,484
7,126
6,607
Discharge - to the wastewater
treatment plant
40
0
0
1,801
0
0
Discharge - released in the drainfield
GPC
(8) Since there is no accurate measurement of wastewater at GTECH
branches (excluding Coventry), nor is there any industrial processing
using water taking place in these locations except in Coventry, it was
assumed that total wastewater was equal in quantity to water consumption.
1
All GTECH cafeterias in Rhode Island now offer food containers
TAB. 27 WASTE GENERATED IN
and cutlery that are compostable. This means paper and clear
2010 (t)
plastic cups and plates along with off-white compostable cutlery
from GTECH cafes can be thrown into the same dark-brown bin
as your left-over food scraps. When bread, fruit, coffee grounds,
other food waste, and organic materials are placed together in a
compost container, they undergo a natural process called
composting. The result of composting is a soft, sweet-smelling
soil that is an essential component of local farms and gardens.
In 2010, Atronic Americas generated approximately 20 tons of
waste and sent to recycling 2.3 ton of paper (shredded), 1. tons
of cardboard and 85.4 tons of scrapped components. The
Type
GTECH:
Total waste
Of which hazardous waste
Atronic Americas:
Total waste
GPC:
Total waste
Sent to
recycling
Sent to
treatment
Sent to
landfill
123
2
241
0
2
0
104
0
153
0
0
0
1,143
116
103
0
3
0
remaining part was disposed in landfills. no hazardous waste was
generated.
In October 2010, the sustainability committee of GPC instituted a
Air pollution
program to begin separating and recycling cardboard, plastic and
Concerning GTECH’s air pollutants emission, most part is due to
other materials used in manufacturing operations. Future
the fleet supporting the customers. GTECH’s Coventry plant has
projects include for 2011 a single stream recycling program in the
no particular emission of pollutants to air, except for small
Administration areas, recycling of wooden pallets and used photo
quantities derived from natural gas combustion.
polymer printing plates.
Atronic America’s plants have not significant emission due to the
The following table illustrate the global waste generated in 2010.
kind of production that is carried out. The only air emissions is
due to natural gas combustion for heating purposes.
The backbone of GPC production operation is a cutting edge 22unit Gallus flexographic press system. Each press unit is
servo-driven, and can be operated completely on water-based ink
systems. Presently, only two units operate using solvent based
inks which keeps regulated pollutant emissions to a minimum.
Annual regulated air pollutant emission levels are typically less
than 25 percent of allowable limits, and GPC is continuously
evaluating ways to further reduce its unit emissions. As a matter
18
of fact, the majority of printing is done using water based inks.
mate, there are only a few months in the year that require us to
Using inks with little to no evaporation and reducing the usage
heat the building. Therefore, most CO2 emissions are due to elec-
of solvent-based inks result in lower volatile Organic Compounds
tricity consumption and the 2 service vehicles.
(vOC) emissions. Efforts to incorporate more environmentally
friendly materials in the protective coatings are ongoing. Other
air pollutants emissions are due to gas burners providing heat for
the process needs.
One of GPC cornerstones of Greenhouse gas emissions reduction
program is to use the most energy-efficient mode of running the
printing press which uses natural gas for the drying of ink. In
2010, significant drops in CO2 emissions were achieved.
The following table illustrate the global pollutants air emissions
in 2010.
GPC’s Greenhouse gas emissions reduction program is based on
the use the most energy-efficient mode of running the printing
TAB. 28 POLLUTANTS AIR EMISSIONS IN
press which uses natural gas for the drying of ink. In 2010, CO2
emissions per 1000 produced standard units significantly drop-
2010
ped from 0.0000 to 0.0005. These positive results are attributed
to following reasons:
GTECH
Atronic
Americas
GPC
NOx (t)
9
0.04
1.23
SOx (t)
0.0032
0
0.01
CO (t)
129
0.03
1.03
PM (t)
1.1
-
Ozone-depleting emissions (kg CFC eq)
0.9
-
-
-
Type of pollutant
VOC (t)
1. Better operating practices involving shutting down of the
dryers during activities where it will not impact quality.
2. Monitoring the web at optimal temperatures which reduces
amount of natural gas consumed.
3. Lower downtime as operating efficiencies improved.
77
4. Using faster drying inks.
The following table illustrate the global GHG emissions in 2010.
In a pledge to reduce waste and help protect the environment,
GTECH began its GREEn: a GTECH Pledge initiative in September
2008. Since then, GTECH has made great strides toward reducing
its carbon footprint around the world. Most of the GHG emission are caused by the fuel consumption of the vehicle fleet of
GTECH.
Atronic Americas’ use of natural gas is low because the only use
its for heating the offices and warehouse. Because of warm cli-
1
rates and not on sales. This effectively manages the inventory and
TAB. 29 GHG EMISSIONS IN
2010 (TCO2 EQ)
avoids overstocking or hoarding of supplies.
Many of GTECH’s domestic contracts require the Company to
GTECH
Atronic
Americas
GPC
GHG emissions
(Scope 1 + Scope 2)
28,243
942
5,257
United States. In order to fulfill its contractual obligations, the
Scope 1 (Direct) GHG emissions
21,012
430
1,517
Company utilizes a domestic fleet that fluctuates between 0
install, maintain, and service lottery equipment (terminals,
communication equipment, central systems, etc.) throughout the
and 1010 vehicles. The fleet is comprised of gasoline and diesel
Other impacts: Transports
powered service vans, as well as gasoline powered sales and
marketing vehicles. In 2010, the fleet numbered 8 vehicles (an
GTECH products are shipped via air, ocean, and trucking. The
increase of 32 vehicles or 3%) and consumed ,4,150 liters of
environmental impact is currently not measured.
fuel (4,88,0 liters of gasoline and 2,5,455 liters of diesel); an
increase of 3,34 liters or 5% from prior year.
GTECH employees are encouraged to use public transportation
and ride share or car pool when possible. The Company has
Atronic’s America gaming technicians are located around the
offered discounts and incentives for those employees who use
country. They have to drive long distances to support the
public transportation and sells public bus passes in the employee
customers. Atronic Americas currently has 2 vehicles that drove
cafeterias.
1,283,451 km in total in 2010. GPC does not own a Company fleet.
GTECH’s Travel Department works with vendors to secure the
most economical end environmentally friendly travel itineraries
and has partnered with travel companies that support these
TAB. 30 FUELS CONSUMPTION FOR THE FLEET IN
2010 (GJ)
goals.
GTECH
Atronic
Americas
GPC
Diesel consumption
108,472
0
0
Gasoline consumption
164,734
5,247
0
GTECH strives to be environmentally conscious in terms of
consumable (paper) products in a variety of ways. In terms of
warehousing and distribution, GTECH makes every attempt to
locate print vendors as close to the end users as possible thereby
reducing the amount of energy it takes to move bulk product
from supplier to site. Since there are six domestic printing
partners this affords many options. In terms of consumable
distribution at the site level, an industry best practice push system
is used to replenish retailers with consumables based on usage
10
Biodiversity
GTECH, Atronic Americas and GPC plants and offices are located
in commercial or urban areas and consequently has a negligible
impact in terms of protecting the biodiversity of bordering areas.
The areas in which GTECH, Atronic Americas and GPC facilities
are located are not subject to specific environmental protection.
GTECH, Atronic Americas and GPC did not receive any
environmental fines in 2010.
11
Attached documents
Le attività e il posizionamento del Gruppo
Il mercato dei giochi
Struttura del Gruppo e organigramma
Identità, visione, missione, strategie
La Corporate Governance
Il programma di Compliance e Governance
Gestione della privacy e sicurezza delle informazioni
13
Attached documents
Methodological Note
the report scope includes the activities associated with
Lottomatica’s Italian operations, the activities of GTECH Holdings
Corporation, GTECH Printing Corporation and Atronic Americas,
Social accountability and stakeholder engagement
as a result of which environmental data for 2010 are not directly
comparable with 200 data. This report does not contain
Lottomatica complies with all statutory laws and regulations that
information on joint ventures, subsidiaries, leased facilities,
govern its activities at national and international level, and
outsourced operations and other entities that may significantly
interacts with and involves all of its internal and external
affect the comparability of the financial statements between the
stakeholders, making significant commitments with respect to
relevant periods.
each of them.
In the financial statements:
Lottomatica promotes responsible gaming, complying with
instructions received from the Italian State Monopolies Authority
and governmental agencies in the countries in which it operates,
sharing with various key stakeholders its objectives and goals in
terms of environmental sustainability and product accountability.
“Lottomatica” or “Lottomatica Group S.p.A.” means the
parent company;
“GTECH” means “GTECH Corporation” and its subsidiaries;
“Group” means Lottomatica and all of its subsidiaries.
The data and information are presented in relation to the
Report Scope and Reporting Period
Lottomatica Group’s social report is prepared on an annual basis,
and the reporting period is for the 2010 financial year. The
Group’s last financial statements, which related to the 200
financial year, were presented at a press conference on July
2010.
following operating segments:
the term “Lottomatica Italia and Italian Operations” refers to
Group activities that are performed by companies that
provide a complete range of gaming services, including
traditional, instant and online lotteries, Scratch & Win, sports
betting, gaming machines, which are mainly activities
With respect to economic and social performance, the scope of
associated with Lottomatica Group S.p.A., Lottomatica
the report is the same as the aggregate figures of the Lottomatica
videolot Rete S.p.A., Consorzio Lotterie nazionali, Lotterie
Group’s Consolidated Financial Statements for the period ending
nazionali s.r.l., Lottomatica Scommesse S.r.l., Lottomatica Italia
31 December 2010; with respect to environmental performance,
Servizi S.p.A.;
14
Attached documents
the term “Gtech Lotteries” refers to activities that are
performed by companies that manage and provide a
quamtitative indicators so as to reasonably and significantly
reflect the assessments and decisions made by stakeholders.
complete range of services, technologies and products for
online, instant and traditional lotteries that are authorised by
the State, mainly the activities performed by GTECH Holdings
Drafting Principles
Corporation (“GTECH”) and GTECH Printing Corporation
(“GPC”);
the term “Gaming Solutions” refers to activities that are
The 2010 Social Report was prepared in accordance with the
“Sustainability Reporting Guidelines” published in 200 by G.R.I.
- Global Reporting Initiative, with particular reference to the
performed by companies that manage and provide solutions,
principles of materiality, completeness, stakeholder inclusiveness
products and services for vLT and systems for the regulated
and sustainability context. The systematic framework of the G.R.I.
market for traditional mechanical cylinder slot machines,
indicators that apply to Lottomatica Group is set out on page 1.
videos and systems for the commercial gaming market, mainly
The level of confidence and assurance as to the completeness of
the activities that are performed by subsidiary Spielo
the information presented with respect to that required by the
Manufacturing ULC (“Spielo”) and companies in the Atronic
GRI Reporting Framework enabled the Group to self-declare at
Group (“Atronic”).
level A+; this accreditation score at the date of publication is
The term GTECH G2 refers to activities that are performed by
subject to confirmation by the G.R.I.
companies that manage and provide products and services
The illustrative structure of the report and the statements
relating to digital and multi-channel gaming, including sports
regarding the creation and distribution of the added value
betting, bingo, casino and games of skill and, in the sports
generated by the Group in carrying on its business were prepared
betting market, provides solutions for real-time transaction
in accordance with the instructions and frameworks proposed by
management systems.
the Study Group for Social Reporting (G.B.S.).
Materiality
Information sources and recording systems
The term “materiality” relates to topics in the report that are
The content of the report is based on the result of a process of
defined as “material” by Lottomatica. The choice of these topics
engagement of both external stakeholders and company
was based on internal and external factors, including the Group’s
divisions; information sources consist of internal documents,
mission and strategy, expectations and concerns expressed by
market surveys and other official sources that are identified from
stakeholders and social expectations in a broad sense.
time to time in the report.
The principle of materiality is applied to both qualitative and
15
Any revisions made to the precise calculations or to the estimated
The fifth section illustrates the initiatives and actions taken by
figures for the year 200 are expressly explained and commented
Lottomatica with respect to Environmental Accountability.
upon.
Financial and economic data and information are taken from
Lottomatica Group’s Consolidated Financial Statements for the
period ending 31 December 2010.
The social report is drawn up and published in English and Italian
and is available in the Social Responsibility section of the
institutional website at www.lottomaticagroup.it.
Additional information and analysis of the issues mentioned
in the report may be requested by sending a message to
Assurance Process
The 2010 Social Report is audited by an independent auditor who
has conducted a limited review in accordance with the criteria
issued by the ISAE 3000.
Structure of the Report
The document contains five sections:
The first section, entitled “Group Profile”, sets out the
international scope of the gaming sector, the group’s business,
mission, strategy and governance structure;
The second section, entitled “The Group’s Sustainability
Strategy”, describes what the Company means by responsible
gaming, the actions undertaken in accordance with that
concept and the resulting commitments towards stakeholders;
The third section, entitled “Economic Responsibility”, presents
and analyses the models of Production and Distribution of
Added value;
The fourth section focuses on “Social Responsibility”,
containing an analysis of the relationships with each of our
stakeholders;
1
[email protected]
Attached documents
GRI IDEnTIFICATIOn TABLE
GUIDELINES 2006
Covered
Page
Statement from the most senior decision-maker of the organization about the relevance of sustainability
o the organization and its strategy
YES
-
Description of key impacts, risks and opportunities
YES
-
PROFILE
Strategy and analysis
1:01
1:02
Organizational profile
2:01
name of the organization
YES
24
2:02
Primary brands, products and/or services
YES
100-101
2:03
Operational structure of the organization
YES
24
2:04
Location of the organization’s headquarters
YES
24
2:05
Countries where the organization operates
YES
8-
2:0
nature of ownership and legal form
YES
24
2:0
Markets served
YES
1-20, 100-11
2:08
Scale of the organization
YES
8, , 2:0
Significant changes during the reporting period regarding size, structure or ownership
YES
14-15
2:10
Awards received in the reporting period
YES
38-3
REPORT PARAMETERS
Report profile
3:01
Reporting period for information provided
YES
14
3:02
Date of most recent previous report
YES
14
3:03
Reporting cycle
YES
14
3:04
Contact point for questions regarding the sustainability report or its contents
YES
1
Report scope and boundary
3:05
Process for defining report content
YES
14, 15, 1
3:0
Boundary of the report
YES
14, 15, 1
3:0
State any specific limitations on the scope or boundary of the report
YES
14, 15, 1
3:08
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsources operations and other entit
that can significantly affect comparability from period to period and/or between organizations
YES
14, 15, 1
3:0
Data measurement techniques and bases of calculation
YES
14, 15, 1
3:10
Explanation of the effect of any restatements of information provided in earlier reports and the reason
for such restatements
YES
14, 15, 1
Significant changes from previous reporting periods in the scope, boundary
or measurement methods applied in the report
YES
14, 15, 1
3:11
1
GUIDELINES 2006
Covered
Page
Table explaining the contents of the report
YES
1-184
Policy and current practice with regard to seeking external assurance for the report
YES
1
GRI Content Index
3:12
Assurance
3:13
GOVERNANCE, COMMITMENTS AND ENGAGEMENT
Structure and governance
4:01
Governance structure of the organization
YES
2
4:02
Executive duties of the Chair
YES
2
4:03
State the number of members of the highest governance body that are independent
and/or non-executive members
YES
2
Mechanisms for shareholders and employees to provide recommendations or direction
to the highest governance body
YES
80
Linkage between compensation for members of the highest governance body and senior managers
and the organization’s performance
YES
5-
4:0
Processes in place for the highest governance body to ensure conflicts of interest are avoided
YES
2
4:0
Processes for determining the qualifications and expertise of the members of the highest governance
body for guiding the organization’s strategy on economic, environmental and social topics
YES
2
Internally developed statements of mission or values, codes of conduct and principles relevant to
economic, environmental and social performance and the status of their implementation
YES
1-1, 25
4:0
Procedures of the highest governance body for overseeing the organization’s identification and management
of economic, environmental and social performance, including relevant risks and opportunities,
and adherence or compliance with internationally agreed standards, codes of conduct and principles
YES
28-2
4:10
Processes for evaluating the highest governance body’s own performance, particularly with respect to
economic, environmental and social performance
4:04
4:05
4:08
YES
80
4:11
Explanation of whether and how the precautionary approach or principle is addressed by the organization YES
34-3
4:12
Externally developed economic, environmental and social charters, principles or other initiatives to which
the organization subscribes or endorses
YES
4
Commitments to external initiatives
4:13
Memberships in national/international industry associations
YES
11-12-13
Stakeholder engagement
4:14
List of stakeholder groups engaged by the organization
YES
11-12-13
4:15
Basis for identification and selection of stakeholder with whom to engage
YES
10, 40
4:1
Approach to stakeholder engagement, including frequency of engagement by type and by stakeholder
group (The relationship and frequency of engagement with stakeholder are specifically examined in
chapter 4 paragraphs)
YES
10, 11, 12, 13
key topics and concerns that have been raised through stakeholder engagement, and how the
organization has responded to those key topics and concerns, including through its reporting
YES
11, 12, 13
4:1
18
Attached documents
GUIDELINES 2006
Covered
DMA EC - Disclosure on management approach EC
Page
YES
Economic performance
YES
1
Market present
YES
8-
Indirect economic impacts
YES
131
DMA EN - Disclosure on management approach EN
YES
Materials
YES
153, 13
Energy
YES
154-15
Water
YES
15-1
Biodiversity
YES
11
Emissions, effluents and waste
YES
18
Products and services
YES
152-11
Compliance
YES
15
Transport
YES
15
Overall
YES
152
DMA LA - Disclosure on management approach LA
YES
Employment
YES
82-83
Labor/management relations
YES
8
Occupational health and safety
YES
Training and education
YES
5
Diversity and equal opportunity
YES
1
DMA HR - Disclosure on management approach HR
(Lottomatica Group parrtially covers on human rights as it doesn’t use child and forced labor)
YES*
Investment and procurement practices
YES
12
non-discrimination
YES
2
Freedom of association and collective bargaining
YES
8
Child labor (Lottomatica Group doesn’t use child labor)
nM
Forced and compulsory practices (Lottomatica Group doesn’t use forced labor)
nM
Security practices
YES
8
Indigenous rights
YES
2-30
DMA SO - Disclosure on management approach SO
YES
Community
YES
34-35-3
Corruption
YES
28-2-30
Public policy
YES
28-2-30
Anti-competitive behavior
YES
30
Compliance
YES
114-115
1
GUIDELINES 2006
Covered
DMA PR - Disclosure on management approach PR
Page
YES
Customer health and safety
YES
43
Product and service labelling
YES
43
Marketing communications
YES
4
Customer privacy
YES
14
Compliace
YES
114-115
EC1. Core
Economic value generated and distributed, including revenues, operating costs, employee compensation, donations
and other community investments, retained earnings and payments to capital provider and governments
YES
5-
EC2. Core
Financial implications and other risks and opportunities for the organization’s activities due to climate change
YES
5
EC3. Core
Coverage of the organization’s defined benefit plan obligations
YES
EC4. Core
Significant financial assistance received from government
(Lottomatica business is carried out under government concession)
nA
ECONOMIC PERFORMANCE INDICATORS
ASPECT: Economic performance
ASPECT: Market presence
EC5. Additional Range of ratios of standard entry-level wage compared to local minimum wage at significant locations of operation
nD
EC. Core
Policy, practices and proportion of spending on locally based suppliers at significant locations of operation
YES
12
EC. Core
Procedures for local hiring and proportion of senior management hired from the local community
at significant locations of operation
YES
8
ASPECT: Indirect economic impacts
EC8. Core
Development and impact of infrastructure investments and services provided primarily for public benefit
through commercial, in-kind or pro bono engagement
EC. Additional Understanding and describing significant indirect economic impacts, including the extent of impacts
YES
131-14
YES
131-14
ENVIRONMENTAL PERFORMANCE INDICATORS
ASPECT: Materials
En1. Core
Materials used by weight or volume
YES
153, 15
En2. Core
Percentage of materials used that are recycled input materials
YES
15,18
En3. Core
Direct energy consumption by primary energy source
YES 154-155, 15-1
En4. Core
Indirect energy consumption by primary energy source
YES 154-155, 15-1
ASPECT: Energy
En5. Additional Energy saved due to conservation and efficiency improvements
YES
13
En. Additional Initiatives to provide energy-efficient or renewable energy-based products and services,
and reductions in energy requirements as a result of these initiatives
YES
10, 15
180
Attached documents
GUIDELINES 2006
Covered
Page
YES
11-12
YES
15, 1
En. Additional Initiatives to reduce indirect energy consumption and reductions achieved
ASPECT: Water
En8. Core
Total water withdrawal by source
En. Additional Water sources significantly affected by withdrawal of water
nM
En10. Additional Percentage and total volume of water recycled and reused
YES
15, 1
ASPECT: Biodiversity
En11. Core
En12. Core
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas
of high biodiversity value outside protected areas (The explanation is provided in “Biodiversity paragraph”)
nM
Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas (The explanation is provided in “Biodiversity paragraph”)
nM
En13. Additional Habitats protected or restored (The explanation is provided in “Biodiversity paragraph”)
nM
En14. Additional Strategies, current actions and future plans for managing impacts on biodiversity
YES
En15. Additional number of IUCn Red List species and national conservation list species with habitats
in areas affected by operations, by level of extinction risk
nA
11
ASPECT: Emissions, effluents and waste
En1. Core
Total direct and indirect greenhouse gas emissions (GGE) by weight
En1. Core
Other relevant indirect greenhouse gas emissions by weight. (The indicator is not material for Lottomatica
Group. The analysis carried out on Lottomatica activities has shown other greenhouse gas emissions are not
relevant because: 1) it’s assessed these emissions are not comparable with other activities which produce
direct and indirect emissions related to energy consumption; 2) they are not crucial points highlighted by
stakeholders; 3) they could not be reduced in remarkable way by the company actions).
En18. Additional Initiatives to reduce greenhouse gas emissions and reductions achieved
YES
18
nM
YES
18
En1. Core
Emissions of ozone-depleting substances by weight (The absence of process which produces harful ozone
emissions is the reason why no remarkable emissions of these substances are metered in the considered
perimeter of Lottomatica activities in Italy in 2010. The United States value is reported on page 1).
YES
1
En20. Core
nOx, SOx and other significant air emissions by type and weight
YES
18
En21. Core
Total water discharge by quality and destination
YES
15,1
En22. Core
Total weight of waste by type and disposal method
YES
15, 18
En23. Core
Total number and volume of significant spills (The indicator is not material as Lottomatica Group activities
don’t involve remarkable risks of spills)
nM
En24. Additional Weight of transported, imported, exported, or treated waste deemed hazardous under the terms
of the Basel Convention Annex I, II, II and vIII, and percentage of transported waste shipped internationally YES
En25. Additional Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly
affected by the reporting organization’s discharges of water and runoff
15, 18
nA
ASPECT: Products and services
En2. Core
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation
YES
152, 11
En2. Core
Percentage of products sold and their packaging materials that are reclaimed by category
YES
15, 18
181
GUIDELINES 2006
Covered
Page
YES
15
ASPECT: Compliance
En28. Core
Monetary value of significant fines and total number of non-monetary sanctions
for non-compliance with environmental laws and regulations
ASPECT: Transport
En2. Additional Significant environmental impacts of transporting products and other goods and materials used
for the organization’s operations, and transporting members of the workforce
nD
ASPECT: Overall
En30. Additional Total environmental protection expenditures and investments by type
nD
SOCIAL PERFORMANCE INDICATORS
ASPECT: Employment
LA1. Core
Total workforce by employment type, employment contract and region
LA2. Core
Total number and rate of employee turnover by age group, gender, and region (The indicator is partially
covered as data are not available. Lottomatica Group commits to fully cover in 2011 Social Report).
LA3. Additional Benefits provided to full-time employees that are not provided to temporary or part-time employees,
by major operations
YES
82, 83, 85
YES*
8
YES
5, ASPECT: Labor/Management relations
LA4. Core
Percentage of employees covered by collective bargaining agreements
YES
8
LA5. Core
Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements YES
84
ASPECT: Occupational health and safety
LA. Additional Percentage of total workforce represented in formal joint management-worker health and
safety committees that help monitor and advise on occupational health and safety programs
YES
8
LA. Core
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region YES*
LA8. Core
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members,
their families, or community members regarding serious diseases
YES
2-
LA. Additional Health and safety topics covered in formal agreements with trade unions
YES
8-
YES
5
LA11. Additional Programs for skills management and lifelong learning that support the continued employability of
employees and assist them in managing career endings
YES
2-
LA12. Additional Percentage of employees receiving regular performance and career development reviews
YES
Composition of governance bodies and breakdown of employees per category according to gender,
age group, minority group membership, and other indicators of diversity
YES
2
Ratio of basic salary of men to women by employee category
YES
1
ASPECT: Training and education
LA10. Core
Average hours of training per year per employee by employee category
ASPECT: Diversity and equal opportunity
LA13. Core
LA14. Core
182
Attached documents
GUIDELINES 2006
Covered
Page
YES
34-3
SOCIETY
ASPECT: Community
SO1. Core
nature, scope, and effectiveness of any programs and practices that assess and manage the impacts
of operations on communities, including entering, operating, and exiting
ASPECT: Corruption
SO2. Core
Percentage and total number of business units analyzed for risks related to corruption
YES
28-2-30
SO3. Core
Percentage of employees trained in organization’s anti-corruption policies and procedures
YES
28-2-30
SO4. Core
Actions taken in response to incidents of corruption
YES
28-2-30
ASPECT: Public policy
SO5. Core
Public policy positions and participation in public policy development and lobbying
YES
28-2-30
SO. Additional
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country YES
28-2-30
ASPECT: Anti-competitive behavior
SO. Additional
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes nA
ASPECT: Compliance
SO8. Core
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations
YES
114-115
HUMAN RIGHTS
ASPECT: Investment and procurement practices
HR1. Core
Percentage and total number of significant investment agreements that include human rights clauses or that have
undergone human rights screening (The indicator is not applicable for Lottomatica Group as all investment
agreements, made after joining the Code of Conduct, are signed after an evaluation of human rights compliance). nA
HR2. Core
Percentage of significant suppliers and contractors that have undergone screening
on human rights and actions taken
HR3. Additional Total hours of employee training on policies and procedures concerning aspects of human rights that are
relevant to operations, including the percentage of employees trained
YES
12
nA
ASPECT: Non-discrimination
HR4. Core
Total number of incidents of discrimination and actions taken (The indicator is not applicable for Lottomatica
Group as the company operates compliant with non discrimination principles)
nA
ASPECT: Freedom of association and collective bargaining
HR5. Core
Operations identified in which the right to exercise freedom of association and collective bargaining may be
at significant risk, and actions taken to support these rights (The indicator is not applicable for Lottomatica
Group as there is freedom of association in all the Group offices)
nA
ASPECT: Child labor
HR. Core
Operations identified as having significant risk for incidents of child labor, and measures taken
to contribute to the elimination of child labor (The indicator is not applicable for Lottomatica Group as the
Group doesn’t use child labor)
nA
183
GUIDELINES 2006
Covered
Page
ASPECT: Forced and compulsory labor
HR. Core
Operations identified as having significant risk for incidents of forced or compulsory labor,
and measures to contribute to the elimination of forced or compulsory labor (The indicator is not applicable
for Lottomatica Group as there is not forced labor and operations with significant risks of incident).
nA
ASPECT: Security practices
HR8. Additional Percentage of security personnel trained in the organization’s policies or procedures concerning
aspects of human rights that are relevant to operations
nA
ASPECT: Indigenous rights
HR. Additional Total number of incidents of violations involving rights of indigenous people and actions taken
nA
PRODUCT RESPONSIBILITY
ASPECT: Customer health and safety
PR1. Core
Life cycle stages in which health and safety impacts of products and services are assessed for improvement,
and percentage of significant products and services categories subject to such procedures
PR2. Additional Total number of incidents of non-compliance with regulations and voluntary codes concerning health
and safety impacts of products and services during their life cycle, by type of outcomes
YES
43
YES
114
YES
43
ASPECT: Product and service labeling
PR3. Core
Type of product and service information required by procedures, and percentage of significant products
and services subject to such information requirements
PR4. Additional Total number of incidents of non-compliance with regulations and voluntary codes concerning product
and service information and labeling, by type of outcomes
PR5. Additional Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
nA
YES
105, 10, 121
YES
4
YES
4
ASPECT: Marketing communications
PR. Core
Programs for adherence to laws, standards, and voluntary codes related to marketing communications,
including advertising, promotion, and sponsorship
PR. Additional Total number of incidents of non-compliance with regulations and voluntary codes concerning
marketing communications, including advertising, promotion, and sponsorship by type of outcomes
ASPECT: Customer privacy
PR8. Additional Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data YES
114
ASPECT: Compliance
PR. Core
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision
and use of products and services
YES Covered
YES* Partly covered
NA Not Applicable
184
ND
NO
NM
Not Available
Not Covered
Not Material
YES
114-115
Quantitative environmental indicators are referred only to italian
sites
Attached documents
185
18
Attached documents
18
The final check carried out by the Global Reporting Initiative concerning the “GRI Application Level” confirmed the achievement
of the A+ Level as Lottomatica Group declared.
188
Attached documents
18
Graphic design and lay-out
Lottomatica - Corporate Graphic Design and Brand Book Management
Photos
Our grateful thanks for kindly granting us the usage of image:
Harambee Africa International
Inveneo
Comitato Parchi per Kyoto
Spirito di Stella
Elecom Sport
Print
Tipolitografia Trullo
Finished printing july 2011
W W W . L O T T O M A T I C A G R O U P. C O M

2010 Sustainability Report

Transcription

Similar documents

BCLC the new age of gaming

Addictive Games and affect on our children

Totalizator Sportowy Sp. z oo WLA certification

Bram - Keynote - ExplOERer.pptx

Hoosier Lotto Prize Pool Sheet

Best of Times - Neil Sedaka.pub

Charitable Giving Report

PlayCentral - Scientific Games

Computer

- Sustainability Report GTECH 2014