Magazine of the european Lotteries, 2014, septeMber
Transcription
Magazine of the european Lotteries, 2014, septeMber
News 46 M ag a z i n e o f t h e E u r o p e a n Lot t e r i e s , 2 0 1 4 , S e p t e m b e r agenda 2014 OCTOBER • Responsible Gaming Seminar Dates: 30 September – 2 October Location: Florence, Italy Host: Sisal SpA • Joint EL/WLA Security Seminar Dates: 7 – 9 October Location: Gdańsk, Poland Host: Totalizator Sportowy Sp. z.o.o. • Sport Immersion Dates: 13 – 16 October Location: Rome, Italy It is now three years since the last ELISE Workshop was held in Madrid in 2011, and it is no exaggeration to say that there hassubstantial been three since the products last ELISE (European Lotteries haveItbeen changesyears in the mix of lottery and distribution channels for which Information data is collected and analysed, as well as substantial changes in the environment in which these data are being disseminated. Sharing Extended) Seminar was held in Madrid in 2011, and it is no exaggera- •ELISE Workshop – Info Sharing Dates: 28 (from 14:00) - 29 October (until 16:00) Location: Warsaw, Poland Host: Totalizator Sportowy Sp. z.o.o. NOVEMBER • Joint EL/WLA Legal Seminar Dates: 6 – 7 November Location: Rome, Italy For the 2014 ELISE Workshop in Warsaw, we are bringing together interesting keynote speakers such as Martin tion to Director, say that there have substantial the mixonofthelottery prodOelbermann, MECN GmbH, Unitedbeen Kingdom, who will givechanges an “outsider”in perspective topic; Manuel Lhoir, Account Harris Interactive, channels France, who will comparative data, andand Philippe Vlaemminck, uctsDirector, and distribution forpresent whichFDJdata is collected analysed, andELinLegal Advisor, who will bring participants up-to-date with the latest EU position and thinking on the use of European data. the environment in which these data are now being analysed and disseminated. We will have papers on best practice in information collection, and exchange from Scandinavian and UK lotteries, as well as a presentation of data on online bookmakers. We will explore in workshops and discussion groups the best use and presentation of public Lottery data in your Annual At the 2014 ELISE Seminar, in addition to exciting and interesting keynote preReport and official Lottery communications to the media. sentations, will presentations onlatest best practice; open discussions A critical open forum there will be held on be the form and format of the ELISE Questionnaire … What new public dataon should be collected? Is the current format optimal? … Areof theELISE data being collected fit for purpose? data in… Annual Reports; review Questionnaire and a root-and-branch We need all interested lottery professionals in the area to be present in Warsaw in October to participate in what will be a review“root of the ELISEreview project. fundamental and branch” of the ELISE project and to contribute to charting the way forward for this important project. WHOAll SHOULD ATTEND? professionals lottery involved in the collection, analysis and dissemination Lottery Management, benchmark analysts, business intelligence professionals and other data analysts. Persons involved in of lottery data are urged to attend. the delivery of data, or in sending questionnaires and reports to EL, EU, EC, EFTA. This seminar is for EL Lottery Members only. WHEN? The seminar will start on Tuesday, October 28, 2014 at 13:00 with a lunch and end on Wednesday, October 29 at 15:00. WHERE? 2015 is just around the corner… Marketing Seminar in London from February 4 to 6 The venue for this meeting and accommodation will be at: POLONIA PALACE HOTEL Al. Jerozolimskie 45 / PL - 00-692 Warsaw Tel: + 48 22 31 82 800 - www.poloniapalace.com Transfers will not be organized. LANGUAGE Registration for all our seminars can be made online at http://www.european-lotteries.org The seminar and sessions will be conducted in English only. All events are available on our website (under events). Announcements are made a few months in advance. COSTS 1 night CHF 1’300.- EL Lottery Member NEW ASSOCIATE MEMBERs: FASTRAK RETAIL UK Ltd. Macclesfield / Cheshire / United Kingdom KAMBI SPORTS SOLUTIONS Ta’Xbiex / Malta 2 nights CHF 1’475.- The fee includes 1 or 2 nights’ accommodation depending on your travel schedule, all meals, meeting rooms, technical assistance, working material. REGISTRATION THE QUALITY GROUP NOVOMATIC AGattendance to the General Secretariat Please confirm your no later than September 10, 2014 by registering online through Lotterywill Technology GmbH Gumpoldskirchen / Austria our website www.european-lotteries.org. The programme be availableSystems on the website. Hamburg Germany together with the corresponding invoice. A written confirmation will be sent to you upon receipt of your/ registration, SPORTING SOLUTIONS London United Please note/ that any Kingdom cancellation after the registration deadline September 10, 2014 will be charged, if not replaced. For more information and queries, please contact: THE EUROPEAN LOTTERIES PRESIDENT Dipl. Ing. Friedrich STICKLER Deputy CEO AUSTRIAN LOTTERIES, Austria 1ST VICE-PRESIDENT Mr. Christophe BLANCHARD-DIGNAC Chairman and CEO LA FRANÇAISE DES JEUX, France 2ND VICE-PRESIDENT Dipl.-Kfm. Hansjörg HÖLTKEMEIER Member of the Managing Board DEUTSCHE KLASSENLOTTERIE BERLIN, Germany Bernadette Lobjois, Secretary General, MEMBERS OF THE BOARD Mr.Association WojciechinSZPIL GENERAL SECRETARIAT European State Lotteries and Toto Lausanne Phone: ++ 41 21 311 30 25 ++ 41 21 312 30 11 Email: [email protected] Mr. Torbjørn ALMLID, Ph.D. ChiefFax: Executive Officer Ms. Bernadette LOBJOIS President and CEO TOTALIZATOR SPORTOWY Sp. z.o.o., Secretary General NORSK TIPPING AS, Norway Poland Av. de Béthusy 36 CH – 1005 LAUSANNE Mr. Franci KRIŽAN Ms. Dianne THOMPSON, CBE Tel. +41 21 311 30 25 Member of the Management Board Chief Executive Fax +41 21 312 30 11 LOTERIJA SLOVENIJE D.D., Slovenia CAMELOT UK LOTTERIES LTD., http://www.european-lotteries.org United Kingdom Email : [email protected] Mr. Fernando PAES AFONSO Vice-President Mr Arjan VAN’T VEER SANTA CASA DA MISERICÓRDIA Member of the Board DE LISBOA, Portugal NEDERLANDSE STAATSLOTERIJ, The Netherlands Mr Emilio PETRONE Chief Executive Officer Mr. Evgeniy VLASENKO SISAL S.p.A., Italy Counsel to the President MSL, Ukraine agenda the european lotteries news september 2014 foreword Dear EL members, Dear friends, Before the start of the summer, the EL Industry Days in Lisbon have once more proven to be a great opportunity for EL Members to gather and reflect on the challenges that lie ahead of us. The place taken by new technologies in everyday life and the constant presence of new media are some of the challenges that offer new potential possibilities for our sector and that we discussed together in Lisbon. Our suppliers and speakers from other sectors contributed with presentations and in discussion, providing fresh perspectives and inspiring new food for thought. At the policy level, online gambling has been the subject of a Recommendation from the European Commission. The “Recommendation on common principles for the protection of consumers and players of online gambling services and for the prevention of minors from gambling online” was published in July. Our Association has closely followed and monitored the preparation process of this non-binding document, contributing notably through its “EL Ambitious Model for the best protection of consumers”. Whilst protecting consumers is a priority constantly promoted and defended by EL, we need to remain particularly cautious that the primary competence of Member States in this sector is not threatened. Member States remain the best placed to ensure a high level of consumer protection when it comes to gambling. The publication of this Recommendation marks the end of the reflection process on online gambling that was undertaken during the last five years by the current European Commission. It now opens a new period for us at the policy level, notably with Member States’ reaction to this and the European Commission’s forthcoming evaluation of this implementation in 2016-2017. This will take place under the mandate of the new European Commission. The EL Executive Committee is particularly attentive to these evolutions, which will require further occasions to exchange inside the Association. The current and future challenges for Lotteries in Europe are also the reasons why we are currently reflecting on the most appropriate way to adapt the structure of our Association, with the primary concern of consolidating the organisation of our Association. The preliminary reflections that have been shared at the last General Assembly in Lisbon will continue, taking into consideration the remarks expressed. A further update will of course be communicated to you in due time, the aim being that the evolution of the Association gathers strong support and enthusiasm from its Members. with the set-up of the new European Commission, the start of the new legislature in the European Parliament and expected new developments at EU level with the final agreement on the Anti-Money Laundering Directive, the adoption of the Council of Europe Convention on Match-fixing, and the forthcoming European Commission Recommendation on sports integrity. I would like to thank all the members of the Executive Committee for their commitment to the Association and all EL working-group members for their contributions. EL Members can be assured that, for the next half of its mandate, the EL Executive Committee is fully dedicated to reach these challenging goals and prepare EL for the future evolutions of our sector. We have seen in the past that the best way to adapt to the current evolutions of our environment remains through a large collaboration from all EL Members. I thus once again look forward to our joint collaboration. Yours sincerely, Friedrich Stickler EL President A busy last quarter of 2014 awaits us all foreword 1 the european lotteries news september 2014 Global Solutions, Custom Crafted LOTTERY + SPIELO + INTERACTIVE + BETTING All Together GTECH is an advocate of socially responsible gaming. For more information visit gtech.com Editorial THE STREAK OF SUCCESSFUL EL EVENTS CONTINUES! Industry Days successfully organised in Lisbon The Industry Days 2014 event that was held in Lisbon, on 2-4 June 2014, with the motto “2020 Gaming – Stand Out in the Market Place” broke a record in terms of participation: Some 270 participants flocked to the beautiful Portuguese capital and attentively followed the numerous presentations. Our Premium Partners (GTECH CORPORATION – INTRALOT GROUP and SCIENTIFIC GAMES INTERNATIONAL) developed three rich streams of presentations on gaming in the context of New Media and covered a great realm of issues, including mobile gaming, electronic games and marketing/retail. Innovation and Imagination also were high on the agenda. Keynote speakers and a panel on innovation and creativity formed part of the programme as well as an attempt to develop the first ever “crowd sourced” instant game. In this edition of EL News, you can find all details about this event’s presentations and speakers. An exciting and eventful Fall As usual, the upcoming months will see numerous EL seminars on many different interesting issues. As always, the “academic” year started with the European Lotteries University (ELU), which this year took place in Bordeaux, France and was followed by the PR/Communication workshop that took place in Amsterdam, the Netherlands on 9 September. September will also see the Joint EL/WLA Internet & New Media Seminar which is taking place in Reykjavik, Iceland on 22-24 September and the well-known Responsible Gaming Seminar which will this year take place in Florence, Italy from 30 September to 2 October. October will be quite a busy month as well, with the Security Seminar in Gdańsk, Poland on 7-9 October and the 2nd edition of the Sport Immersion-the Sports Betting Master Class, which will be held in Rome, Italy on 13-16 October. The ELISE Workshop is also planned for 28-29 October in Warsaw, Poland. For the first time, the Legal Seminar will be organised jointly by EL and WLA and will take place in Rome on 6-7 November 2014. In addition, we have started planning the 2015 events - including our 8th Congress - (to be held in Oslo, Norway in June 2015) whose information will be communicated shortly. Update on Sport After 22 national seminars (participation of 23 EU Member States) the IRIS Project came to an end on 10 June 2014 in Brussels. A restitution seminar was organised in the Committee of Regions in Brussels, where the IRIS experts presented the conclusions of the project. In the final event in Brussels, the experts presented some facts and figures about the 22 national seminars and also some conclusions of the project, which include the absolute need for fight against illegal betting with concrete measures (IP blocking, payment blocking etc.), the need for appointment of integrity officers within the major national sport federations, the need for monitoring of sport competitions (the ELMS was re- EDITORIAL ferred to as a best practice, as opposed to ESSA), the need for promotion and ratification of the EPAS International Convention against the manipulation of sport events (which will normally open for signatures in September) and the need for cross-sector cooperation and coordination. Such examples as the Norwegian National Action Plan, the German Ombudsman, and the Finnish “red button” whistleblowing mechanism were also mentioned as best practices. The Head of the Sport Unit of the European Commission, Yves Le Lostecque, along with his new Policy Officer in charge of match-fixing, George Paterson, joined the approximately 50 participants who attended the event and stated that they learnt a lot and the conclusions of the project were very useful to them. Last June IRIS submitted a new project proposal, under the new programme of the European Commission “ERASMUS+”, which seeks to build upon the expertise gained throughout the 2013/2014 project, re-activate the developed national networks and also go one step further by assisting national sport organisations in developing a “riskmanagement” approach in order to be ready to deal with integrity-related risks. EL and its Public Order & Security Committee will be among the major partners of the project. The results of the “ERASMUS+ call for proposals” are expected to be released in November 2014. EL takes this opportunity to thank again all its Members who so enthusiastically organised an IRIS workshop in their country, contributing in this way to the success of the IRIS Project Bernadette Lobjois Secretary General 3 the european lotteries news september 2014 Did the event accomplish its mission and how? We think it did. The working sessions were extremely interesting with presentations promoting very interesting debates and enlightening us on the kind of trends we must count on, the drivers that will help us move forward and the effective innovation we should all strive for. Interview Fernando PAES AFONSO Vice-President Santa Casa da Misericórdia de Lisboa EL News: What was your main reason in inviting the Industry Days to Lisbon? Our main intention was to serve as a wide interests’ platform gathering consistent and sustainable ideas on the kind of innovation we all wish to implement in our Lotteries. We also wanted to show all our colleagues that a country like Portugal, which has been under a 3-year period of financial external aid from the Troika, had the means to host such an event, showing what Santa Casa is capable of and how it stands out in Portuguese society. Lastly we wanted to promote fruitful experience exchanges, involving people in the reflection of what paths must be followed in order to preserve the gaming model we stand for and still stand out in the marketplace. Industry Days How do you see a benefit for your team as well as any other Lottery teams with this type of event? As mentioned before, the benefit of this kind of seminars to our Lottery teams is the knowledge platform that this kind of technical meetings provides. They are an excellent forum to discuss the latest market trends being aligned with the most innovative technological offers, to have a broadened perspective of the evolution of the retail environment, the means to be used to make our gaming offer attractive and responsible. Our Lottery teams have the chance to add experience and knowledge to their areas by exchanging views and perspectives with their colleagues. These events create added value for us all strengthening the bonds, making us more confident to face the challenges that the new consumers impose upon us, and questioning the importance of our current gaming model. This type of events brings improvement and innovation giving us the chance to renew ourselves as well. 4 the european lotteries news september 2014 2020 GAMING : STAND OUT IN THE MARKET PLACE Industry Days reconvened last June, as it has done over the last years to discuss technologies and new games. Welcoming participants in Lisbon, Portugal, the event clearly placed a focus on what Lotteries need to do NOW to maintain their leadership position. The regulatory shift is of serious concern in Europe. In 10 years’ time, the face of that business might be totally different from what we are accustomed to now, and Lotteries must prepare for that transformation. Lotteries and their partners have come to realize the urgency of setting up immediate strategies for the future to ensure, as noted by President Friedrich STICKLER, that in 2020 and beyond, Lotteries can still be able to take care of society. CHANGE NOW FOR FUTURE RESULTS The gaming sector is experiencing challenging times, but it is not a reason to slow down. As Pedro SANTANA LOPES, President of Santa Casa da Misericórdia de Lisboa in Portugal, says “Lotteries sell beautiful games” and should talk more about it and highlight their social responsibilities and involvement. One way to do it is to be on social networks, which have become so important in everybody’s life. Mr. Lopes warns that such a presence might not yield immediate results, but they will eventually happen. Young entrepreneur, Danny MEKIC, starts with a striking comparison: in the 1930s, companies were expected to survive for at least 90 years, nowadays, the lifespan is only 18 years - thus to keep growing, one must constantly improve, reinvent and find new targets. Then, there is the new consumer: Used to a technology that can change practically overnight, he/she wants a fun but economical experience. Innovation is something that might change their lives: this is where Lotteries could shine by emphasising beautiful, fun and easy content instead of focusing on money – a boring concept for young people who prefer to enjoy life rather than make a lot of money to impress others. Social media is the best way to approach these potential con- Industry Days sumers, but a digital strategy must include Webcare (or know the dreams of people). On social media, you cannot buy the crowd, but you can bring interest for the crowd to answer and like: the gamification of real experiences (i.e. the case of Budweiser’s strategy based on tweeting at Happy Hour to extend that experience in bars), will pleasantly surprise consumers. So it is essential to place the young generation predominantly in a business strategy. Big data is the in-word, but few companies use it correctly: Mekic’s recommendation to Lotteries - focus on small data, know the dreams of each of your customers. TODAY AND TOMORROW The discussions about new technology also showed the challenges. Being a billion-dollar market is one of them, notes Jim KENNEDY, EVP, Group Chief Executive Lottery - SCIENTIFIC GAMES CORPORATION, so work must be done in a scaled world. For Ioannis PANTOLEON, Group Chief Operating Officer – INTRALOT GROUP, technology will help face the challenges and there is an urgent need to address online offers. Connie LAVERTY O’CONNOR, Senior Vice President & Chief Customer Officer – GTECH CORPORATION, reminds people that the business of selling tickets for good causes is growing 5 the european lotteries news september 2014 2020 GAMING : STAND OUT IN THE MARKET PLACE and meeting budgets is as important as responding to customers’ wishes. Good content, respect of regulations and stronger partnerships between Lotteries and suppliers, will allow better performance. Innovation might be slow in coming, but Lotteries must continue to offer a whole slate of services/products to be totally ready for what’s coming in the future. There is space for growing traditional games but obviously the major investment now is in digital. Taking a look at what is being done today, the panels considered that leveraging the new media and building a strategy for greater player engagement should provide the right balance between adding value to the players and pleasing the regulators. For Martyn BAXTER, Head of Instants of Camelot UK Lotteries Ltd, digital platforms must emphasise fun plays, a concept echoed by Rhydian FISHER, CEO of Instant Win Gaming Ltd. The entertainment factor is really important and existing games could regularly propose new trends such as a near-win experience to encourage players to come back again, presenting added value. Pam LEE, VP, Linked Games – MDI, proves the added value of 2nd chance games that extend the play opportunities of a losing ticket. The main difficulty with digital lottery lies in finding as many people as possible to play without over stimulating the market. After all, Lotteries must abide by the state regulations and game mechanics must be adapted to each jurisdiction with a system in place to ensure responsible gaming behaviour. Beyond shifting consumers’ attitude, the latest regulations in Europe are changing Lotteries’ traditional operating practice. Organisations must now compete in a world of open markets. The consumer is now in Industry Days charge and, explains Eurico NOBRE, CEO of OgilvyOne in Portugal, companies must connect with him/ her to maintain the brand’s reputation and longevity. The key to success is therefore to understand a consumer’s journey and digital technology allows for creative communication with today’s consumer. Dermot GRIFFIN, CEO of National Lottery Ireland, concurs that technological investment is needed to address the online challenge and to adequately create a great experience for the consumers as well as retailers. The whole consumer experience, through involving and sharing, must be part of any new digital Lottery strategies in order to maximise the entertainment value for players, adds Antonis DIMOS, Deputy General Director at INTRALOT Interactive. Changing behaviour is a necessary step and being authentic is essential; for Arjan VAN’T VEER, Member of the Board of Nederlandse Staatsloterij, it is better to improve the existing offer than totally reshaping it – disruptive innovation should be reserved for other departments. The problem for Heinz-Georg SUNDERMANN, Managing Director of LOTTO Hessen, Germany, rests with over-regulating, which impedes State Lotteries from trying something new. One direction showing promise for the future is multi-jurisdiction games with wider collaboration between Lotteries across borders. To drive growth across all channels, Lotteries representatives made a strong case for the skills and digital technology they already have in place and the advantages of partnerships with suppliers. SAZKA’s objective, said Robert CHVÁTAL, CEO & Member of the Board, is “innovate now.” The latest draw-based game uses the player’s mobile phone number as a lottery ticket: very appealing to young players. An- 6 the european lotteries news september 2014 other innovation is the Penny Market, a quick-pick style game merchandised at cash registers. The pace of interaction needs to follow the pace of the market. In Norway, Norsk Tipping has launched 65 new games capable of satisfying both young and old consumers. The Lottery’s online presence is good but explained Jan Peder STRØMSLID, EVP Communication & Strategy - Norsk Tipping, there is more to be done with interactive games and social media. The Lottery strongly relies on partnerships with suppliers to find quick solutions to a lot of digital issues. The experience in Belgium is slightly different as Arnaud HERMESSE, Director of Sales of the Belgium National Lottery comments on the negative evolution of products in many points of sale. The Lottery’s efforts have been to target the retail environment with an improved merchandising display of lottery games at cash registers, which are in direct competition with an array of other products. For Belgium National Lottery, the urgent innovation is in retail environment; implementation of VLTs is in the works and in the future game offer for smart- phones. In Poland, existing retailers help the core business by increasing lottery awareness with better floor marketing, on shopping carts and around cash registers. “Innovation, says Wojciech SZPIL, CEO of Totalizator Sportowy Sp. Z.o.o., is more than a new game, it is a vision.” Evolution also is about changes inside a company – soon to be implemented. GAMIFICATION AND INNOVATION Addressing the phenomenon of new media and their possible application in the Lottery industry, Philip TAN, Creative Director of MIT Game Lab in the US, gives surprising statistics. In the US, 68% of Industry Days games are played on PC and 33% of mobile gamers are women. Smartphones’ offer of free-to-play and premium (pay) games is a market of over 11 billion dollars. Top games are the ones that can be downloaded for free but require real money spent inside the game. The play expectations are labour (progress in a game by playing more hours) and skill (with consistent practice, you will progress in a game). These games are articulated around specific social motivations, says Tan, citing the description of Scot Osterweil of MIT of the “4 Freedoms of Play”: Freedom to experiment, freedom to fail, freedom of identity and freedom of effort. Luck is not part of the equation – it’s all about social experience, where losing can be fun and failure is more rewarding than winning - A concept seen in 2nd chance games, but one that Lotteries could further develop. Gamification, for Pedro DO CARMO COSTA, Director and Co-founder of Exago – UK, is all about engagement. Access to an enormous amount of information has given consumers the power to decide; new entrants with no legacy costs and no regard for rules, consolidation among companies and purchase globalization are among the factors that created a saturated market. His recommendations to Lotteries: innovate or become irrelevant, add benefits for the consumer in each product, ride emerging trends, leverage unique competencies and address consumer unvoiced needs, but also use gamification of day-to-day (boring) activities to engage all personnel. Andy DUNCAN, Managing Director of Camelot Group – UK, recognises that Lotteries need first to improve what is being done at the present time. Innovation will support growth but it should be implemented without taking unnecessary risks. Wojciech Szpil is interested in defining 7 the european lotteries news september 2014 2020 GAMING : STAND OUT IN THE MARKET PLACE the goal of where to be in the future and then implementing it through technology innovation and internal changes. And then the fun began: Ray BATES, Moderator and EL Honorary President, orchestrated a very exciting interactive session. Using an app accessible on mobile phones, the audience was pulled together to answer a series of questions and make choices related to the parameters for an instant game. A few minutes later and after entering the average answers, the final ticket was designed and the first crowd sourced instant game came to life. The audience loved the interaction and the final product. legal issues at stake for European Lottery organisations Philippe VLAEMMINCK, EL Legal Advisor and Bart VAN VOOREN, Professor in EU Law, talked about the tectonic shifts in the EU policy. Lotteries are being faced with major legal threats such as infringement procedures or the “soft” legal recommendations by the Commission, which de facto harmonise gambling at EU level - according to the CJEU, as long as there is no harmonisation, Member States remain free in their national policies – this will change with these recommendations. What can be done? For one, use the Conclusions of the Council of December 2010 on gambling, recognising that Lotteries play an important role in the funding of good causes, directly or indirectly; Build on CJEU and AG statements that unbridled competition in gambling is not desirable; working towards the recognition by the Court of Justice of the existence of an “EU Public Order” as an equivalent to free movement principles, so that future legislative initiatives must take into account the special position of Lotteries working for the benefit of society. Sharing and innovating were among the major topics of Industry Days. Changes have to be implemented for a sustainable future in a highly competitive gaming world, but the approach might differ on how to apply or when to bring in these changes. Though, there was consensus about the implementation of digital technology, mobile games and social media. Also during the seminar, Birgitta KERVINEN, President of ENGSO, was invited to say a few words about another important topic: the situation of sport activities. Highlighting the involvement of ENGSO with many European sport federations and its cooperation with the Council of Europe, she also reminded the audience of ENGSO’s commitment for better collaboration with Lotteries, and the fight for sports integrity and against match fixing. Cooperation among all concerned parties will bring positive changes in the sport movement, concluded Kervinen. Industry Days 8 the european lotteries news september 2014 EL NEWS INTERVIEWS Philippe VLAEMMINCK EL Legal Advisor EL News: At the Industry Days in Lisbon, you presented the future challenges for Lotteries in the EU legal field. With a new President at the helm of the EU Commission who tends to favour a limitation of Member States’ powers, do you anticipate a repercussion on Lotteries? The composition of the EU Commission is of course important, but the debate is amongst the various institutions, whereby the European Parliament plays an important role, but certainly and maybe even more, also the Council. One should not forget that it was the Council that unanimously adopted in December 2010 conclusions stating that the specific role of Lotteries needs to be recognised in all future actions at EU level. Such Council conclusions are providing a binding interpretation for the EU Commission. While the EU Commission is the guardian of the Treaties, the Member States are the masters of the Treaties. The view of the States meeting in the Council is extremely important. Also the Court of Justice plays a big role and has been quite supportive for Lotteries. Per your experience, do you get the impression that Lottery executives really have a clear sense of the legal consequences for their own organisations? Are they doing enough to help EL in Brussels and what actions should they take to improve the industry’s image in Brussels? Long before EL was in Brussels, several Lotteries were already active in the EU debate at various levels. Some of them continue to work together with their government in the Court of Justice, the Council and the expert groups. It is extremely important to continue this work and to convince other Lotteries to do the same. Participating actively (as Belgium and Portugal do through their Lotteries) in all the cases at the Court of Justice of the EU by making written observations is a priority. The Court always listens carefully to what the Member States have to say. The position of the states is helping the Court to make the exact findings. Educating the gaming regulator is equally important. Regulators have extensive knowledge of gaming law, but do very often misunderstand EU law. They do not understand the mechanism of the EU Internal Market. You do not need to adopt formal directives to harmonise the various markets and create a single market. If de facto every state agrees to apply the same rules regarding consumer protection, the result is the same as with harmonisation. The same applies to the infringement cases. What the EU Commission pretends is not always legally right. The issues at stake, Industry Days like server location, etc., are important questions. EU law has no clear-cut answers for this. So regulators should be more confident in that they can win these cases. So in addition to EL, Lotteries can do a lot in the Council and European Parliament, in the Court of Justice and internally by helping the regulators. With the EU focused on gaining more power to the detriment of States and having an open gaming market, how do you see the evolution of the European lottery world? Monopoly might become obsolete: Could you picture for us the “NEXT” Lottery Model? I do not belong to the people who believe that the Lottery monopoly will be obsolete. On the contrary, I would not be surprised if, one day, governments reinvent the benefits of the Lottery monopoly. Our new EU legal strategy is precisely aiming at getting the societal role of Lotteries recognised at a higher level. In various states around the world the Lottery model is protected by the Constitution. It is the case in various US states, in India and in Switzerland. In the EU, it is part of the common (constitutional or legal) traditions of the states where the EU is built upon. We talk about Unity in Diversity. The same high-level principles are defining the societal role of Lottery in the states, but applied in different ways. Lotteries are not normal economic activities and, contrary to other activities, competition does not bring any benefit in this area. The Court of Justice (and its advocates general) has been repeating this since 1992 and still says it explicitly today in its judgments. The Lottery monopoly, as it stands today responding in a moderate way to ever-changing technological challenges and societal needs, is the best model for the Future! 9 the european lotteries news september 2014 LOTTERY HALL OF FAME NEW MEMBERS JEAN-LUC MONER-BANET General Director of Société de la Loterie de la Suisse Romande President of World Lottery Association EL NEWS: You were justifiably inducted recently into the Lottery Hall of Fame, an honour highlighting as much your colleagues’ appreciation as the years of services you have dedicated to this industry. In your experience, what are the most impressive gaming realisations that should remain influential for years to come? The latest lottery developments, such as the use of interactive channels or social media networks to sell our games, are indeed bound to keep growing over the next years. Still, I believe that the traditional elements that make up the peculiarity and the strength of our Lottery games will be an even more predominant vector to our success in the future. Particularly, I think about the most important traditional games: the Lotto – both national and transnational, the scratch-off games – whether actual tickets or virtual play, and also Sports Betting. All networks – both physical and virtual, will need to market and offer these games in their modern format and get innovative in their selling approach. You always show a strong interest in human development and especially – as proved by the guidelines you have established in your organisation – the impact that a Lottery can and should have on society and communities. How did you guide the actions of Loterie Romande to make it a responsible company? For Loterie Romande as well as the whole industry, corporate social responsibility is not a tool, but rather an element central to our activity. The products that we sell – games of chance and money – are not innocuous. Selling them implies a set-up of specific measures to ensure an everlasting Lottery activity. Therefore Loterie Romande has implemented its activities, always bearing in mind this element at the core of our actions. Can you apply the lessons you have learnt in Switzerland to WLA international community and how do you pass on the message? If we can consider that social responsibility at the core of Lotteries’ operations is a universal message, its implementation through actual measures must of course take into account the social, political and economic reality in the countries where they ought to be applied. WLA shall not give lessons, but on the contrary shall ensure its actions address the local interests of each of its Members. The future of Lotteries in Switzerland, Europe and around the world: your vision and based on your experience, the recommendations you have for your colleagues? The future of our sector draws its substance from the past and our traditional games that must be presented and sold in the context of the 21st century. Also, let’s never lose sight of the ultimate finality of our activity, which is to organise the industry of games of chance for the benefit of the community. LOTTERY HALL OF FAME 10 the european lotteries news september 2014 BERNADETTE LOBJOIS EL Secretary General EL NEWS: You have been inducted recently to the Lottery Hall of Fame, in recognition for your work and your services on behalf of EL Members. Tell us about EL role now and in the years to come? The aims and objectives of the Association are to advance the collective interests of its Members and enhance the capability, common knowledge and status of individual Members. Our Members always operate with an explicit authorisation in the jurisdiction of the consumer. In addition, most of our Members’ profit is channelled to the society and good causes. And it is this model that EL has to safeguard and promote. Fighting against unlicensed private betting companies, jeopardising public order and consumer safety, should remain a top priority for EL. EL has been trying hard to make clear that gambling is a very special area, in which the “freedom of movement” has no place. Member States are free to choose for the regulation system they deem most appropriate for the best protection of the consumers in their jurisdiction. In addition, the significant contribution of Lotteries to society should be taken into account in all EU policies. EL will definitely continue to voice these factors and ensure that EU institutions take them into account. Under your direction, the EL General Secretariat has implemented many actions: Which ones have had most impact for Members? It is true that when I took the position of EL Secretary General, the Association looked quite different from what it is now. Back in 1990, the Association only had around 30 Members, none of them from Eastern or Central Europe. There were virtually no educational seminars but priorities also were different. I worked hard to help in the development of the Association and I can say that today I feel quite proud of what has been achieved. The Association now has 80 Members from 46 countries – in fact every single European country is represented and even beyond. EL has developed numerous successful educational seminars, which attract a lot of participants every year and we have also set up numerous working groups to facilitate the exchange of knowledge and expertise among Members. Indeed the market situation has changed over the years. The competition from illegal private operators has grown intense. Due to the EU developments, in 1997, I recruited with the support of our Executive Committee our Legal Advisor, Philippe Vlaemminck, who has been supporting the Association legally ever since and in 2007 we opened our EU Representation in Brussels to further strengthen our position at EU level. Sports integrity has also become a huge issue over the last years. Thanks to our numerous actions within the field, EL is now considered as a worldwide pioneer in the field of sports integrity. I can now say that after almost 25 years dedicated to EL, I am very happy to see the Association thriving and being even more essential in the fight for our Members’ rights. Rest assured that for my remaining years of service, I will keep doing my best for the benefit of EL Members and subsequently the benefit of society. In the new legal and technological gaming environment, what would be for you an ideal approach for a sustainable future of Lotteries in Europe? I strongly believe in the traditional Lottery model: always abiding by the law of the jurisdiction, abiding by high responsible gaming standards and supporting good causes. This is the reason why Lotteries make the difference: For a sustainable model, they must be responsible in their operations, support good causes and combine innovation and creativity; all these factors will help Lotteries thrive in competitive markets and keep their status as the natural partners of sport and society. LOTTERY HALL OF FAME 11 the european lotteries news september 2014 The Lisbon agenda of Lotteries in the EU: In the past few decades the discussion judgment was the Schindler ruling, in the EU was limited to the question where the Court stated that “it must whether Member States could imple- not be ignored that, even though this is ment their own gambling policy. In the not an objective justification, lotteries absence of harmonisation, the Court significantly contribute to the financing of Justice of the EU accepted that for of non-profit activities of general inter- reasons of consumer protection and/ est, such as philanthropic works, sport or fight against fraud and crime, the or culture.” Member States could maintain certain restrictions. The new line of argument draws on the fact that this express recognition has The present-day position of Lotteries gotten somewhat lost in translation can be negatively affected by the ju- over the years of developing the ju- dicial and legislative strategy, which is risprudential legal framework. Given being pursued by the European Com- this reality, and given the fact that now mission: it consists of various infringe- two dozen judgments have created a builds among others on the Omega ment expressed well-established regulatory context for Spielhallen case. Here the Court of Jus- during Directive 98/34 notification cases, objections games of chance, it is necessary to “go tice of the EU has ruled that the four procedures, the adoption of recom- back to basics”. freedoms are to be balanced against mendations, the discussion on com- fundamental rights, and that the lat- mon technical standards, etc. This This is achieved through the notion of ter may justify restrictions to the fun- approach is very likely to lead to a uni- “EU public order”, which we presented damental freedoms guaranteed by the form regulatory framework for gam- for the first time during the Industry Treaty. In that case, the Court express- bling services in the EU. Days in Lisbon. ly referred to the Schindler judgment. Currently it is unlikely that the devel- The Lisbon Treaty and the Charter In the gambling jurisprudence of the opment of an EU regulatory framework of Fundamental Rights, strongly rec- Court, the distinct position of Lotter- will accommodate the distinct position ognize the evolution started by the ies through a monopoly or otherwise, of Lotteries. A new legal approach is Maastricht Treaty, namely a political was viewed as an exception to the es- thus required to steer the above devel- recognition at EU-level that there are sentially free market rationale of the opment in a more advantageous direc- common principles and rights which EU. Indeed, economic freedom is the tion for State Lotteries in the EU. are considered as essential by the EU general principle, and any exception for and the Member States: a political Un- Lotteries must be justified for reasons It is well-known that presently, at EU ion alongside the economic project of of national public order requiring a dis- level the legal framework for gam- European integration. tinct position. The problem with this bling has been solely “judge-made approach is that the position of Lotter- law” through a long string of case-law This notion that the EU is composed of ies, and their support for good causes, is spanning more than 20 years. The first both an economic and political Union, never expressly recognized as reflecting legal 12 the european lotteries news september 2014 advocating for the EU public order concept political preference. Indeed, their dis- From the perspective of Unity, there It is crucial that by the time regulatory tinct position is at most viewed as a is the wide consensus on the special developments mentioned at the outset deviation from the norm, something position of lotteries which emanates become reality, this special position of negative but reluctantly accepted as a from the constitutional (or republican, Lotteries is explicitly developed in the consequence of historical development. in some countries) and social tradi- debate before the Court of Justice; a tions of the Member States, where a recognition which is presently already The notion of EU public order aims to strong connection is forged between found in the Conclusions of the De- change that (legal) reality. The objec- the proceeds with an origin in an activ- cember 2010 of the Council. tive is to utilize this concept to legally ity which is ethically questionable, and accommodate an ethical and social vi- the support for societally and ethically By Philippe Vlaemminck sion of the position of Lotteries in the desirable objectives. EL Legal adviser 1 societies of the Member States, and to elevate it at EU level so that it is given From the perspective of Diversity, a foundational position within the EU there is the fact that, since the EU ordre Treaties alongside the principle of eco- public is the emanation of the national nomic freedom – and not merely an constitutional traditions, that within exception to it. this EU legal framework it is for the 1 Article written with the support of Prof. Bart Van Vooren, senior associate at Altius. Member States themselves to hammer On the basis of Schindler and case law out the details of their gambling poli- thereafter, the argument goes that the cies. Court has given space for the funda- they themselves must set the level of mental societal consensus which ex- consumer protection, and they them- ists in the legal orders of the Member selves flesh out the connection which States as regards lotteries. It has done is made between games of chance, so in accordance with Article 6 of the their proceeds and their goals, all in EU Treaty, which states that general line with their cultural, ethical and re- principles of EU law can be recognized ligious, national ordres publics. Within this European concept insofar as they emanate from the common constitutional traditions of the While relatively abstract in legal terms, Member States. On that basis, we ar- the real-world impact of this notion is gue that the aforementioned notion of potentially significant: if recognized, EU public order displays a dual charac- the Lotteries’ distinct position would ter which is a reflection of the so-called no longer be perceived as an exception Unity in Diversity of the national and – but as an integral part to the EU in- European legal orders. ternal market. Within the EU public order, unity-indiversity means the following: legal 13 the european lotteries news september 2014 An Interview with Gavin EL NEWS ASKED.... Isaacs, President and SCIENTIFIC GAMES ANSWERED CEO, Scientific Games Here in Europe and also in the United States there is a large dependence on multi-jurisdictional jackpot games like Euro-millions, Powerball® and Mega Millions. How do we best protect against jackpot fatigue and create entertainment and fun in the games for the players? Jackpot fatigue is a challenge facing lottery and gaming operators. This is something I have seen during my 15 years of experience at Aristocrat, Bally, SHFL and now here at Scientific Games. Whether it is a progressive jackpot slot machine game, a local lottery jackpot game or even a national game, the challenge lies in understanding the consumer. I am excited to see the exchanges taking place between our Insights team at WMS and the Lottery Group. The research, knowledge and understanding of player behavior, game structures and prizes are combining to reveal new opportunities for game content and player engagement. We must stay ahead of change and innovation, and we must keep the play experience exciting for the player. Engaging players responsibly is a primary driver for sales performance. As a provider of games, technologies and services to lottery operators in Europe and around the world, what performance trends are you measuring and what do you see as the key success factors? No two lotteries operate in the world in quite the same way, yet many of the key performance drivers are the same. These drivers are great game content, optimized game distribution in the right channels and player engagement and promotions all coming together to create performance success. We serve more than 50 European lotteries, and they all have our full scope of products and technology available to them – from imaginative game content to licensed brands like MONOPOLY™, sports betting products, instant product category management, retail solutions and systems technology. With 40 years of global lottery expertise, Scientific Games’ presence in Europe has been well established since the early 1980s. We have customerfocused teams in our major technology and manufacturing facilities in Vienna, Austria, and Leeds, England, and in many other countries. A great example of innovation to overcome jackpot fatigue is in the United States with the new $5 national game, MONOPOLY Millionaires’ Club, soon to launch with a nationally televised game show and an internet-based 2nd Chance game. This game is the result of great change. A primary driver of game success originates in our Insights group, the heartbeat of our customer business support and planning. Insights recently completed several research projects in Greece and began a larger segmentation study across 11 countries in Europe. The customized marketing plans created for our customers use our proven marketing approach based on 15 Determinants of Demand and our proprietary MAP™ system, which houses over 1.7 million sales data points. As the new Chief Executive Officer for Scientific Games, what are your short-term and long-term plans for the company? We will have many innovative opportunities in the creation of game content and marketing programs to reach consumers across multiple distribution channels. Our focus is to deliver flexible solutions and value for our lottery customers’ important missions. We have collaborated on multiple initiatives with European lotteries over the years with the goal to responsibly maximize the performance of creative lottery games through secure operations on a platform of high standards. Long-term, we are committed to creativity, responsibility, security and business integrity for the European lottery and gaming industries. Scientific Games completed its acquisition of WMS last year and has announced plans to acquire Bally Technologies. What benefits do you expect to be realized? That’s easy – great talent and great products. Since our acquisition of WMS in 2013, we have created new games, introduced new licensed properties, developed deeper industry insights, and integrated technologies and innovation teams. Our planned acquisition of Bally Technologies, a leading systems and content company, is expected to offer European lotteries similar benefits. The goal is to be the partner of choice and provide even more value opportunities to help our customers engage their players and grow revenues and net profits responsibly. ............ On August 1, 2014, Scientific Games entered into a definitive agreement to acquire Bally Technologies, Inc. Premium PARTners ACTIVITY 14 the european lotteries news september 2014 10 NEWS 39 MAY 2012 A SURE Sure BET: Bet: FIFA FIFA WORLD World CUP Cup TOURNAMENT Tournament DEMONSTRATES Demonstrates A the Benefits of SPORTS Sports BETTING Betting in Portfolios THE BENEFITS OF IN Lotteries’ LOTTERIES’ PORTFOLIOS The FIFA World Cup tournament played in Brazil in June and July was a game-changer in the sports betting business, particularly as it relates to government-regulated lotteries. Across Europe, Asia, and Latin America, lotteries and commercial operators scored big, with record-setting sales that underscore the benefits of offering sports betting as an attractive addition to a lottery’s gaming environment. Sports betting will only grow in popularity worldwide as technology escalates to offer more exciting products, in numerous channels, and with expanded levels of service. It’s an exciting time for the industry and for GTECH, as the Company’s technology and operational services are garnering attention in the sports betting arena. In Belgium, Loterie Nationale – whose fixed-odds sports betting product, SCOOORE!, is offered both online and at retail – realized its highest sales week ever during World Cup, as well as the best-selling single event (Belgium– Algeria). During the tournament (June 13–July 13), 90% of retail stakes and more than 60% of online stakes were placed on World Cup football matches. For Loterie Nationale, GTECH provides a business-to-business-to-consumer (B2B2C) service that includes trading services, content management, and sales and marketing support. GTECH leads the daily planning and coordination of event matches with Loterie Nationale and compiles odds for the offered matches, taking into consideration local demand and the Lottery’s need to position itself in the market. GTECH offers the Lottery a guaranteed payout level for both retail and online channels that enables Loterie Nationale to run a riskfree operation. In Italy, where GTECH provides a complete end-to-end solution including sales, marketing, and risk management services, Lottomatica – under the Better (retail and online) and Totosi (online) brands – saw sports betting revenues rise 26.5% in the second quarter of 2014 over the same period in 2013. Much of this lift can be attributed to the World Cup (along with the introduction of virtual betting and a stable payout percentage), despite the early exit of the Italian national team. Together, Better and Totosi offer all the sports (30+) and all the markets allowed by the Italian regulator. Latin American lotteries also experienced a double-digit increase in sports betting sales brought by the World Cup Premium PARTners tournament. Chile’s Polla Chilena de Beneficencia saw its sports betting sales rise 11.7% and the average stake increase 38.4% over the year-to-date (YTD) average. In Mexico, Pronósticos para la Asistencia Pública realized an 11.8% lift in sports betting sales. GTECH provides the technology platform and risk management/trading services for both Polla and Pronósticos. The World Cup was a boon for commercial operators as well. In Spain, GTECH customer Marca saw a 55.9% increase in the average World Cup stake (to €13.1) over YTD average stake, and the lift in sales brought by the tournament was more than 18.4% year-over-year. Marca offers 23 different sports and over 10,000 sports events a month. In France, market leader Betclic reported that it had nearly doubled its initial recruitment target, adding 76,000 new client accounts during the World Cup period. GTECH’s first foray into sports betting for its customers Veikkaus in Finland and Danske Spil in Denmark, among others, was as a pure technology provider with traditional maintenance and facilities management. As new technologies and new sales channels evolved, GTECH expanded into fixed-odds risk management. Today, GTECH Betting Services include a range of solutions to support a betting operation in any channel, in any market, including: • Trading Services • Content Management • Marketing Support • Market Analysis, Strategy and Planning GTECH’s latest sports betting solution, WagerWise, currently being readied for customer deployment, offers a new way for lotteries to add betting capabilities while minimizing the impacts on their current lottery system landscapes. Scalable and adaptable to lotteries everywhere, WagerWise successfully integrates with GTECH’s Enterprise Series (ES) system, Player Account Management, and the GTECH interactive portal, and promises to open up a world of opportunities to lotteries everywhere. 15 the european lotteries news september 2014 EL NEWS ASKED.... Win the game in an IFLEX-ible way INTRALOT ANSWERED The Lottery industry faces exciting challenges. These challenges are affected by the rise and acceleration of regulatory initiatives both at a European level but in other regions as well. Service providers and their technology counterparts need to further enhance the flexibility of their offered solutions and services and to be able to deliver a true B2B service offering. This strategy extends towards providing significant value to the existing brand equity of established organizations. As a result, an exciting betting experience is created for the player. Sports betting operators along with technology and service providers are pushed towards inPHOTO novating, always one step ahead of the technology curve in order to satisfy their customers’ needs. The flow of new requirements is continuously growing. One of the most influencing factors of the industry is the change in the players’ needs and gaming behavior. However, there has been a tremendous shift in the market. The entertainment that one could only get through a retail store has now transformed into a popular service accessible to the global market. This change has made room for new betting functions that offer a multidimensional gameplay experience and ultimately, create a multilateral win-win relationship between the player and the operator. PUT THE PLAYERS IN THE SPOTLIGHT INTRALOT’s main objective is to successfully integrate all the modern tools available so that every player maximizes his satisfaction using his mobile device or smartphone. The player must benefit from each and every game he participates in, acknowledging that he can become a valued part of the game. Content is the most challenging change that defines a player’s experience and creates the window for interaction with the game. Not very long ago, betting content was only about calculating odds and viewing sport results. Using today’s expert knowledge, content can be enriched with multimedia extensions. Some of them are live streaming from the sporting events, videos in second screen features, social media sharing as well as advanced personalisation depending on each player’s preferences and habits. ............... Our main focus has shifted towards delivering a rich, global and competitive sports book, optimized to the particular market requirements. We achieved these goals by adding entertainment to the player’s experience and through understanding his behavior. We succeed in doing so mainly through the integration of openness and agility in our core systems engineering. Mobility, rich content management, per player customisation and expansion of ACTIVITY Premium PARTners the targeted audience, are four essential ingredients for achieving entertainment during the betting process. THE OPERATORS’ POINT OF WIN From the operators’ point of view, robustness, reliability, stability in performance and system security are the cornerstones for the successful implementation of a sports betting platform and its services. INTRALOT’s design philosophy consists of breakthrough technologies and tools that offer all these characteristics combined with unparalleled results at a fraction of the cost. Moreover, operators can take advantage of social media platform integration and their players’ preferences in order to further enhance the betting experience online and develop what we at INTRALOT refer to as “Know Your Customers’ Likes (KYCL)”. As we already know, the main objective of the operators is the expansion of their targeted audience. Data mining technologies and artificial intelligence can distinguish patterns in each player’s behavior and differentiate appropriately all the displayed content on the screen in real time. This not only gives operators feedback on who their customers are, but also offers players a complete experience that draws their attention and maximizes their satisfaction. DON’T PLAY THE ODDS. PLAY IFLEX These rapid changes in the industry created a unique market gap which INTRALOT succeeds in bridging with IFLEX. INTRALOT’s IFLEX platform is a breakthrough, all inclusive, multi-channel, high performance sports betting platform. It focuses on providing a full betting management solution in an easyto-use environment. The IFLEX advanced trading component provides a fully automated solution with all the necessary multi-channel real time information and tools. In INTRALOT we strive to provide an efficient environment to the operator, while at the same time offer a unique experience to each player. IFLEX has the unparalleled capability to run in high automation mode needing only minimum human interaction where required. This feature allows operators to intervene only when real trading activities are needed and decisions on key risk management issues are essential. This capability of IFLEX makes it a unique working platform that utilizes human potential in an effective and efficient fashion. INTRALOT’s IFLEX platform efficiently implements our expert know-how in order to enable operators to deal with the modern challenges existing in the betting industry and, in turn, offer to the end player a fully personalised, unique and entertaining game experience. 10 NEWS 39 MAY 2012 16 the european lotteries news september 2014 Responsible Gaming Certification Ceremony In anticipation of pressure from the EU on Responsible Gaming in the lottery and gambling industries we have this year prioritised bolstering the credibility and robustness of our standard. Whilst we have driven significant change it has been a great year with some notable successes. Revised Standards Through 2013/14, the members of the CSR/Responsible Gaming working group have been working hard on the revision of the EL Responsible Gaming Standards and Certification Framework. They made changes to four of the eleven sections, which were later approved by Prof. Mark Griffiths from the Nottingham Trent University in the UK. Both revised documents were approved by the EL General Assembly last June 4 in Lisbon. In addition to these changes, various guides have been developed in order to help the Members through the certification process. On the EL website, a page designed to facilitate the choice of an assessor was created, and an online library with the CSR reports from the Member Lotteries will soon be available. Those tools are made to give the non-certified Members the opportunity to start the process with confidence and support. A record number of certified Lotteries The certificates award ceremony took place this year in Lisbon, during our Industry Days. At the beautiful gala evening organized at the Palacio de Xabregas, the President Friedrich Stickler and the Chair of the CSR/ Responsible Gaming Committee, Dianne Thompson, handed first time certificates to 4 Lotteries: • • • • Loterie Nationale, Morocco Loterija Slovenije d.d., Slovenia De Lotto, Netherlands Maltco Lotteries Ltd., Malta Then, 13 Lotteries received their certificate for the second time: • • • • • • • • • • • • • TOTO (The Israel Sports Betting Board), Israel AS Eesti Loto, Estonia LOTTO Hamburg GmbH, Germany Loterie Nationale, Luxemburg Lotto-Toto Sachsen-Anhalt, Germany Loterie Nationale, Belgium Sisal SpA, Italy Norsk Tipping AS, Norway ONCE, Spain Deutsche Klassenlotterie Berlin, Germany Latvijas Loto, Latvia National Lottery Ireland, Ireland Toto-Lotto Niedersachsen GmbH, Germany The Association is proud to have 43 certified Members, of which 24 have already obtained the 2nd certification. With 53% of our Members having completed the certification process according to the Responsible Gaming Standards, we are moving closer to our goal but much remains to be done. This is why, like Dianne Thompson did during the General Assembly, we urge the non-certified Members to start the process as soon as possible. All the tools needed, as well as the members of the working group, are available so that every Lottery may reach this extremely important and rewarding goal. It is with some regret that we say goodbye to the Chair of the CSR/Responsible Gaming Committee, Dianne Thompson, who will leave her position at Camelot UK Lotteries at the end of October. It has been a great honour and pleasure working with someone that much involved in the respect for responsibility and integrity values. Responsible Gaming 17 the european lotteries news september 2014 FAREWELL TO A FRIEND : BARUCH DAGON through the funding of sport infrastructures, teams and associations as well as grass-root organisations and projects dedicated to improve the lives of disabled youth. Baruch Dagon has retired in June from his position of International Relations Manager at TOTO (The Israel Sports Betting Board), the sports betting organisation of Israel, a position he held since joining the organisation in 2000. Previously, he worked as sports reporter and spokesman for sports associations and as Advertising Manager at Bezeq, Israel’s national telecommunication company. A well-known figure in the world lottery industry, Dagon explains that his job at TOTO (ISBB) was like wearing “three hats: Advertising Manager, International Relations Manager and Spokesman for the organisation.” His career in the gaming world brought him many challenges but also a lot of satisfaction: from the beginning, his goals were to position TOTO (ISBB) in the public eye as well as in the media as a business dedicated to public welfare, sports and social responsibility. Some of his activities led him to work on a re-branding of TOTO (ISBB) as a unique player in the lottery industry by highlighting its specific characteristics such as being a major economical source for Israeli sports and social programs members'news Among the many goals that Dagon had set for himself and his team, one has had a profound impact on his career and his personal life: for years, he worked to develop a closer relationship with his European colleagues and the European Lotteries Association. The exchange of knowledge or as Dagon describes as “crowd wisdom concentrated at EL” and the contribution of TOTO (ISBB) in the international arena not only strengthened ISBB relationship with “Sister Lotteries” but showed to all TOTO (ISBB) employees the importance and usefulness of participating in EL seminars, collecting new ideas, envisioning new technological developments and using EL Data Center as a productive business tool. “This part of my activities was, as Dagon stresses, a very long process but in the end, it was a great success, which culminated in June 2013 with the hosting of the 7th EL Congress in Tel Aviv in cooperation with Mifal Hapais. Although this achievement remains a source of pride, it was a bittersweet moment for me as my career was coming to a close with my retirement fast approaching.” Baruch Dagon speaks highly of TOTO (ISBB) and its team, noting all the novelties that were implemented in the last few years such as online odds betting and horse betting. With these new game platforms, TOTO (ISBB) has more than tripled its revenues, ensuring more contribution to sports and society, and has established itself as a visionary. The future of TOTO (ISBB) can only be bright, insists Dagon, and more barriers will come down with probably in the future the adoption of live betting. 18 the european lotteries news september 2014 TECH STARS.... INNOVATIVE LOTTERIES STREAMING INTERNET GAMES LIVE SUPERLOTO A CONVERSATION WITH KORNELIJUS PIVORIUNAS, CHIEF OPERATING OFFICER SUPERLOTO, UAB – OLIFĖJA, INC. EL NEWS : WHAT DOES SUPERLOTO MEAN FOR LOTTERIES IN LITHUANIA? Kornelijus Pivoriunas : We all know that over the past 10 years, the development of computers and Internet technology has had a major impact in the Lottery market. Looking at the extent of that new electronic environment in Lithuania, we realized it was time for us to reconsider the specifics of our Lottery games and we came up with “Superloto” - a new lottery system. The Superloto enables lottery operators to introduce a new lottery concept based on live online broadcasting of a traditional lottery game (lotto) from a TV studio where frequent lottery draws are conducted every few minutes and made accessible to all sorts of online and mobile devices. WHAT GAMES DO YOU OFFER? Currently, we have three Superloto games, each allowing almost instant results thanks to our livestreamed drawing event: -Two Lotto games - 5/36 and 7/42 – offering fixed payout. The Superloto 5/36 is an extremely popular lottery, with a payout of up to 100,000 Euros. In the 7/42, players can win up to 200,000 Euros. Both games have other attractive features, which allow players not only to choose the ticket price but also the amount of numbers they want to pick (from 5 to 10 for the 5/36 game and 8 to 14 in the 7/42) - The “Interjackpot” game: Based on the Lotto 7/42, this Superloto has a jackpot that starts at 100,000 Euros and keeps growing with every purchased ticket. Moreover, multiple lottery operators can run that game at the same time with joint Tech Stars… Innovative Lotteries contribution to the grand prize. The high frequency of the game creates dynamics to the jackpot growth: it is a simple play but with guaranteed high entertainment value - a concept that is very attractive to players. HOW WELL WAS THIS LOTTERY CONCEPT RECEIVED BY PLAYERS AND RETAILERS? Quite well actually! The “Superloto” lotteries offer the advantage of easy integration in any Internet website and access on any types of mobile devices. The game plays are very easy to understand and provide instant fun and gratification. Furthermore, the “Superloto” system uses the regular network of retailers or lottery agents to distribute tickets, and lottery retailers have the possibility to analyse the games’ statistics within of course certain limits. Since players can watch these games in real time, the other benefit has been a perception of reliability for these lotteries, as game results no longer depend on a computer (such as the 5-minutes Keno or any other games with computer-generated results). We also provide all kind of backup systems to address any complication. A video archive and results of all the draws are readily available on our website, which are useful information for example whenever a player is unable to see the live stream (due to power failure or difficulties with Internet connection). If a draw is impaired due to mechanical or technical failures (streaming fails, drawing machine breaks down, etc.), tickets are cancelled and players receive full refund. The Superloto concept has been successfully implemented in Lithuania, so much so that we are in discussion with other Lottery partners to launch these games in other countries. 19 the european lotteries news september 2014 SAVE THE DATES! 8TH EUROPEAN LOTTERIES CONGRESS JUNE 8-11TH 2015 OSLO, NORWAY WWW.EL2015.ORG The 8th European Lotteries congress is titled “Touch tomorrow” and will take place in Oslo. Norway is known as a technological power center and a world leader in the development of technology. Hardly any business is so well suited to the modern technology platforms as the lottery business and the industry is definitely a business in change. This has inspired Norsk Tipping when outlining the topic for the 2015 congress in Oslo. European Lotteries and Norsk Tipping are delighted to welcome you to Norway to join the 8th EL Congress June 2015. Save the dates now! Oslo Spektrum is the venue for Touch tomorrow. It is located in the city centre and only minutes away from our partner hotels. WELCOME TO OSLO Oslo is surrounded by islands and forrested hills, and is located at the end of one of Norway’s most beatiful fjords. Perfect in size for exploring on foot, the city boasts, world-class museums, a rapidly growing cafe’ and bar culture, top-notch restaurants and nightlife options ranging from opera and jazz to rock. www.el2015.org Hosting company Congress organizer 20 the european lotteries news september 2014 Round Table on Electronic Gaming Machines (EGM’s) Helsinki – Finland, 29 April 2014 A general conclusion of the discussion was that the successful implementation of EGM gaming was not dependent on any one single element, but involved implementing a package of offerings and facilities such as Responsible Gaming; balance between percentage payout and pricing; location of EGM’s and use of Player Cards. In spite of the financial crisis throughout Europe, revenues from EGM’s have been stable or growing moderately over the past five years … a good sign for the future. Twenty representatives from nine jurisdictions who have implemented EGM’s or are planning to introduce this form of gaming joined with representatives from five suppliers for a one-day round table discussion on current issues and hot topics in EGM’s. Ray Bates Moderator RAY – the gracious host of the round-table - gave an extensive presentation on the unique Casino/ EGM offering they provide to the Finnish players, including a visit to their arcades and other retail outlets. They see their main business, transacted with some 5,000 corporate partners, as “convenience gaming” rather than “destination gaming”. Their unique role in being an integral part of the process of allocation of their proceeds to good causes has played an important role in developing the brand of their unique form of gaming. A separate presentation was made on “providing a channel for sports betting and e-games” by Primoz PÖSCHL from Športna Loterija in Slovenia. Topics covered in the round table discussion included age checking, mandatory limits, games and distribution channels, payment solutions, image and branding, loyalty and player cards, remote blocking and positioning of EGM gaming in the total gaming market. Activities 21 the european lotteries news september 2014 Player Cards Workshop Berlin - Germany, 14 May 2014 Fifty participants from twenty-five jurisdictions travelled to Berlin for this first ever EL event focussed entirely on the topic of Player Cards. Christopher O’CONNELL, from Norsk Tipping opened the morning with a presentation on the past and present experiences of Player Cards in Norway, covering an amazing 22 years of experience, from the first tentative steps when the players were prepared to pay a fee for their Player Cards in order to guarantee that they would receive their winnings up to the present situation where Player Cards are mandatory; Playscan is integrated into the Norsk gaming system, and registered players have the option of directing up to 5% of revenue generated to specifically designated good causes. The clear message from Norway was that the presence of a sophisticated Player Card system greatly facilitated the granting of permission by the Regulator to Norsk Tipping to introduce their online casino. Two separate aspects of the German experience were presented by Erika SIEBENECK from LOTTO Hamburg and Martin ROTH (Oddset) from Lotto Bayern. While the number of registered players with Player Cards is low, the facilities provided are relatively sophisticated. The participants were somewhat surprised to learn that, in Germany, “dangerous bets” are defined as games with a draw frequency of more than twice a week. In addition to this, there are many restrictions on the use of the existing cards, including a ban on their use for CRM. Julian PRICE from Camelot UK Lotteries gave the Responsible Gaming perspective on Player Activities 22 the european lotteries news september 2014 Cards, while Philippe VLAEMMINCK presented the legal perspective on the use of Player Cards as a response to EU institutional positions on money laundering and online gambling. David EXCELL, Founder of Feature Space UK, gave a most interesting perspective on the use of data collected through Player Cards (and online systems) to help Lotteries uncover patterns of play that might predict “problem play” in the future. From the use of Bayesian theory to sophisticated modelling techniques there was a lot of evidence that the “big data” gen- Activities erated by loyalty and player card systems can be harnessed to produce useable and relevant customer behaviour information. Following the morning of presentations, the afternoon was dedicated to discussions and exchanges on the most relevant topics (as defined by the participants) on the topic of Player Cards. During the workshops, the experienced Lotteries (and in particular Norway … thank you again, Christopher) were happy to share experiences of the “do’s and don’ts” of introducing Player Cards. While the benefits are clear and impressive it is important to remember that introducing a Player Card system can be expensive and can result in some organisational change in a Lottery. Ray Bates Moderator 23 the european lotteries news september 2014 SPORTS BETTING SEMINAR GOOOOOOOAL! Fix your focus on Fortaleza!! Fortaleza - Brazil, 22-25 June 2014 The seminar, which was attended by some 106 participants, coming from around 27 countries, opened with the welcome addresses of Fabio CLETO, VicePresident Government Funds of CAIXA, Friedrich STICKLER, EL President & WLA Executive Committee Member, and Luis GAMA, President of CIBELAE. Torbjørn ALMLID gave some updates about the work of the EL Sport working group and Christian KALB, Moderator of the seminar, guided the participants through the programme. Just like every year, representatives from 4 different continents updated the participants about what is new in their side of the world and many Lotteries had the chance to present their innovative products. Activities New Games and innovation are always of interest. Manuel GÓMEZ AMIGÓ from Sociedad Estatal Loterías y Apuestas del Estado (SELAE) delivered a presentation about the history of La Quiniela in Spain and SELAE’s plans for innovation. The way La Quiniela works in Uruguay and the way new technologies have been integrated in its sales were presented by Luis Gama from Loterías y Quinielas (Uruguay). Helmut LÖSCHENBERGER from the Austrian Lotteries presented their product, TOTO 13, and Borut BOHINC from Športna Loterija, from his side, presented the use of VLTs and e-games in Slovenia designed to enhance the players’ experience. 24 the european lotteries news september 2014 and make more profit than Lotteries in monopoly markets”. On one side, Jens NIELSEN from Danske Spil and Nikolaos KONSTAKIS from Intralot tried to convince the participants about the validity of the argument. On the other side, Torbjørn Almlid from Norsk Tipping and André CHAKER from Veikkaus Sports integrity remains high on the agenda and the seminar in Fortaleza saw a good number of relevant presentations: Ralf MUTSCHKE from FIFA presented the FIFA integrity Initiative to combat match manipulation and corruption. Thierry PUJOL from La Française des Jeux (FDJ) delivered a presentation about the FDJ system for monitoring sports betting and the way it has been useful for managing public order-related risks. Torbjørn Almlid delivered a presentation about the Norwegian Action Plan against match-fixing and Christian Kalb spoke about the results of the ICSS-Sorbonne research programme and also about the IRIS Project, a pan-European initiative that sought to raise awareness and develop national networks against match-fixing in 23 Member-States of the EU. Finally, Pierre CORNU, from the University of Neuchatel in Switzerland, delivered a presentation about match-fixing focusing on the need for a special criminal offence against the phenomenon. tried to advocate for the opposite. The two teams presented their arguments and afterwards the participants were asked to vote for the team that convinced them. Interestingly, both teams gathered the same number of votes. In the second debate, Uno SOLBERG from Norsk Tipping along with Kevin ANDERSON from SGI advocated for the fact that “Outsourcing data feeds gives top value for players and improves Lotteries’ bottom line”. On the contrary, Lennart NILSSON from Svenska Spel and Brian BENNETT from West- A breakthrough innovation of the seminar was that for the very first time, the programme included 2 debates (an idea of the WLA Executive Director, Jean Jørgensen, to whom all participants wished a quick recovery). The first debate was about the topic: “Lotteries in competitive markets are more innovative Activities 25 the european lotteries news september 2014 SPORTS BETTING SEMINAR ern Canada Lottery Corporation joined their voices for the opposite. After hearing the arguments of the two teams, the majority of the participants thought that outsourcing data feeds could be more interesting for Lotteries, but of course many different factors have to be taken into account, and first of all, the size of the market. In the evenings the participants had the chance to taste traditional food and enjoy some traditional Brazilian music and dances. Of course, as one would expect, participants watched many World Cup matches on especially designed big screens. The big highlight of the seminar, though, was the football match Greece – Ivory Coast, which all participants attended on Tuesday, 24 June. The participants had the unique opportunity to see the two teams passionately struggling for their qualification in the next round of the World Cup, with Greece winning 2-1 at the last minute of the match. EL would like to warmly thank CAIXA for hosting the event, WLA and CIBELAE for the fruitful cooperation, the moderator of the seminar, Christian Kalb, and, of course, all participants for their active participation. Sports Betting Seminar 2015 Save the dates! The Sports Betting Seminar 2015 will be organised on May 26-28, 2015 in Warsaw, Poland. EL and WLA will make sure that an exciting programme will be developed for the participants, who will also have the chance to attend the final of the Europa League, which will take place at the Stadion Narodowy in Warsaw on 27 May 2015. We look forward to welcoming your participants in Warsaw! Activities 26 the european lotteries news september 2014 ELU 2014 Bordeaux – France, 31 August - 5 September The European Lottery University (ELU) is a professional development programme for executives and managers within the lottery industry and is held annually. Targeted at both newcomers to the industry as well as experienced managers, ELU is the oldest lottery management training of its kind. Now in its 17th year, ELU has established a strong reputation amongst EL Members and assisted many of its 850 alumni in the progression of their lottery careers. The programme is intense but rewarding for participants many of whom go on to further their careers in the lottery industry. The week involves presentations from expert speakers, discussions, quizzes, workshops and case studies, covering a wide variety of current lottery related subjects. The opportunity to network with their peers and share ideas and practices is also important to participants and probably unique to Lotteries! This year’s ELU was held in Bordeaux, France and attracted 38 participants supported by 14 guest speakers during the course of the week. Participants represented 15 Lotteries, both large and small with a strong contingent in successive years from Morocco together with executives from Senegal and Argentina for the first time. In addition, participants from 4 industry suppliers were also present. A broad range of functions was represented with around a quarter of attendees being relatively new to the lottery industry. Activities The week commenced with a welcome from both Friedrich STICKLER, EL President and Christophe BLANCHARD–DIGNAC, Chairman and CEO of La Française des Jeux and EL 1st Vice-President. Subjects covered this year included the lottery business in Europe, game design, game strategy, social media, marketing and brand positioning, multijurisdictional games, digital gaming, sports betting, advertising and communications, loyalty programmes, business strategy, corporate social responsibility, financial control and risk management. In addition we were grateful to be given an insight into the latest global technology and consumer trends and the current status of European gaming law. Group case studies, under tight time constraints, were undertaken throughout the week covering lottery organisation structures, game strategy, 27 the european lotteries news september 2014 social media, game launches and financial management. Extensive workshops were held on instant product design and CSR. At the end of the week, all participants worked on one of two major case studies to launch a new Lottery in a fictitious European state or to structure a gaming authority. All groups worked hard to produce high calibre presentations summarising the key aspects of their ‘bid’ for this new Lottery in just a few hours. The winning groups pictured below particularly impressed our panel of experts with their branding, product plans and promotions. We felt these delivered both value and entertainment for players whilst covering all the bases on legal, compliance and commercial matters. As in previous years, we are indebted to Ray BATES for his continued support to the Moderator and Bernadette LOBJOIS and her staff for all the hard work necessary to smoothly administer the week’s activities. We also are grateful to the time spared by our expert speakers many of whom were available for lively discussions after their presentations. The quality of this programme remains high and is testament to the expertise of the speakers and the support of their sponsor Lotteries. Next year’s ELU promises even more. Please contact the Secretary General or refer to the EL website for more details. Tony Jones Moderator As is the tradition during ELU week, there was plenty of social activity to complement the hard work during the sessions. We were treated to a visit to an excellent wine tasting at the Château du Tertre, a guided evening tour of the beautiful ancient city of Bordeaux and an afternoon boat trip to Dune du Pyla, the highest sand dunes in Europe, and the Bassin d’Arcachon. At the final evening meal we were delighted that our participants became ELU graduates and we hope they will become like their predecessors enthusiastic ambassadors for the programme, which now has a genuine global appeal. Activities 28 the european lotteries news september 2014 XXXX XXXX ss XXXXXX 29 the european lotteries news september 2014 30 the european lotteries news september 2014