- Sustainability Report GTECH 2014

Regulators
Shareholders
Clients
Communities
Personnel
Suppliers
38
39
REGULATORS
GTECH is a company subject to extensive global
gaming laws and regulations, as well as substantial
oversight worldwide by lottery authorities and
related government agencies and bodies. GTECH
holds one of the largest license portfolios in the
gaming and lottery industry. The Company is
subject to many jurisdictional gaming regulations
that not only regulate its activity in a state’s
geographic or business area, but also monitor
and assess its activities throughout the world.
Many of GTECH’s individual gaming licenses hold
the Company accountable for all gaming activity,
regardless of the specific jurisdiction.
The casino industry and lottery industry are some
of the most regulated and monitored industries in
the world. States, Provinces, and Indian Tribes with
legalized casino gaming and lottery operations
employ regulating agencies to enforce appropriate
casino regulations within their jurisdiction. In
addition, gaming equipment suppliers work with
the properties to ensure compliance with their
various guidelines.
GTECH IS COMMITTED TO
T H E H I G H E S T S TA N D A R D
OF BUSINESS ETHICS AND
I N T E G R I T Y, A S W E L L A S
COMPLIANCE WITH THE
L AW S A N D R E G U L ATI O N S
G O V E R N I N G I T S G LO B A L
USINESS OPERATIONS. AS
A RESULT, GTECH ADOPTED
COMPLIANCE AND GOVERNANCE
PROGRAM THAT APPLIES TO
ALL EMPLOYEES, OFFICERS,
DIRECTORS, AGENTS, AND
CONSULTANTS
40
Lottery Operator Models
In recent years, some governments have
outsourced more of their day-to-day operations
to maximize profits and generate more money for
good causes. Additionally, gaming operators have
progressively sought to expand their business
base to remain competitive and offer a broad
range of integrated products. The combination
of these two dynamics has contributed to the
evolution of a variety of operator models. In the
Lottery Management Services (LMS) business
model, GTECH manages a varying degree of
the day-to-day operations and core functions
of a lottery which can include marketing and
advertising; lottery game development; retailer
recruitment training and communications; call
center operations; supply of goods and services;
and subcontractor and vendor selection and
management.
Under the North America LMS operating model,
states continue to own the lottery and maintain
regulatory responsibility for lottery management
services including integrity, security, auditing and
licensing. The private entity is only responsible for
managing and operating the lottery’s consumer
business.
Variations of GTECH’s operations management
model exist in Illinois, Indiana, and New Jersey in
North America; Colombia and Costa Rica in Latin
America; Anguilla, Antigua, Barbados, St. Kitts
& Nevis, St. Maarten, and the U.S. Virgin Islands
(collectively known as GTECH Antilles) in the
Caribbean.
European Activities
The development of new gambling technologies
allows for cross-border distribution of games
through diverse channels like Internet, mobile,
or Smart TV. This cross-jurisdictional access
increases the need for stronger protection for
consumers as different forms of gambling services
can now operate across borders and outside
of the control of the regulatory authorities of
member countries. In collaboration with the
Italian national regulator, GTECH has drawn on its
extensive experience and expertise to provide a
sustainable, legal, and coherent gambling model
that is recognized at the European Union (EU)
level. GTECH is constantly involved in constructive
dialogues with EU institutions, being present
not only as gaming professionals but also as an
active member in the European Lotteries (EL).
EL is the most widely-recognized interlocutor for
EU institutions, representing the largest trade
association in the regulated gambling sector. With
more than 40,000 people employed and 400,000
indirect jobs, EL associates greatly contribute to
social development, supporting good causes with
a positive impact on the communities.
Enacting a proactive approach with EU institutions
and national regulators, GTECH has proactively
engaged with EU institutions and national regulators
to support the useful and sustainable development
of the gambling sector in Europe. This approach is
built upon the principle that guarantees certainty
of the rules in a regulated system, fully respecting
the jurisprudence of the European Court of Justice
and confining the proliferation of uncontrolled
illegal operator activities.
SEEKING TO DEFEND PUBLIC ORDER BY
SUPPORTING LAW ENFORCEMENT AT THE
NATIONAL LEVEL, GTECH IS A LEADING VOICE
ON CONSUMER PROTECTION AND IS A CREDIBLE
AND RELIABLE PARTNER AT THE FOREFRONT OF
ANTI-MONEY LAUNDERING AND MATCH FIXING.
The European legal developments in the gambling
sector during 2014 have been in-line with GTECH
suggestions. During 2014, GTECH welcomed
the adoption of the European Commission (EC)
recommendation on online gambling services (July
2014), inviting Member States to pursue a highlevel of protection for consumer players, vulnerable
groups, and minors, in order to safeguard health
and minimize the economic harm that may
result from compulsive gambling. Secondly, the
formal agreement reached in December 2014
on the revised Anti-Money Laundering Directive
(AMLD) has been closely followed by GTECH.
From the beginning of the legislative process,
EL has called for the extension of the scope of
AMLD to all gambling services, considering the
high risk for money laundering in the sector, if not
regulated properly. GTECH and EL play an active
role in combating illegal practices such as match
fixing, as part of the wider efforts to ensure that
competitive sports are fair. They support the EC’s
role to protect the integrity of sports. The EC
planned a recommendation on best practices in
preventing and combating betting-related match
fixing in 2014. However, with the establishment
of a new EC in October 2014, the content of the
initiative has yet to be defined, but the it will serve
as a support to the implementation of the Council
of Europe Convention against the Manipulation of
Sports Competitions.
RECOMMENDATION ON ONLINE GAMBLING SERVICES
Non-legally binding instrument
Notification of EU Member States measures to the European Commission by 19
January 2016
In line with the EL self-regulatory approach on Responsible Gaming standards,
the EC Recommendation contains a number of principles, drawing from good
practices, which allow Member States to implement a unified, high-level of
consumer protection in their regulations for online gambling services.
The main elements are:
Basic information requirements displayed on the landing page of operators’
gambling websites to ensure that consumers are provided with sufficient
information to understand the risks related to gambling.
• Prevention of underage gambling.
• Mandatory registration process to open a player account with the
operator. This should also enable operators to keep track of player behavior
and raise the alarm if necessary.
• Player activity and ongoing support to prevent gambling-related
problems by equipping consumers with tools to keep gambling under
control.
• Access to helplines providing information and assistance in respect to
gambling disorders. In the event of disconcerting changes in gambling
behavior, players can call for assistance about their gambling behavior.
• Socially responsible and transparent advertising/sponsorship of online
gambling services. For example, advertising should not make unfounded
statements about the chances of winning, exert pressure to gamble, or
suggest that gambling resolves social, professional, personal, or financial
problems.
• Training for employees of online gambling operators interacting with
players to ensure they understand problem-gambling issues and are able to
liaise with the players appropriately.
41
SEMINAR “FIGHT AGAINST MATCH-FIXING”
(ROME, 25 FEBRUARY 2014)
GTECH hosted a seminar to raise awareness of the need to promote integrity in sports
and fight against corruption.
The overall project was coordinated by the French research center Institut de Relations
Internationales et Strategiques (IRIS) and financed by the European Commission,
together with the EL, under the rules of the call launched by the “Sport” unit of the
Director General for Education and Culture in 2012 (ref. EAC/S06/12). One specific aim
of the project was to act in favor of the Enlarged Partial Agreement on Sport (EPAS) to
combat the manipulation of sports results. Therefore, the identification of potential
betting-related risks and good practices led to the decision to draft a recommended
proposal to be adapted, as needed, to the particular situation in each country.
The seminar gathered different points of view from national authorities who were
engaged in sports administration (Italian government, public authorities, operators,
national Olympic committee, sports federations, and the Italian gaming authority
regulator) in order to bolster the existing platform for a dialogue among national
stakeholders. The in-depth analysis on the specific risks linked to the growing sports
betting market in Italy, showed that the Italian State strongly controls and supervises
the shareholders of the betting industries.
GTECH is constantly engaged in cooperative activities with national stakeholders to
share information, develop research and promote responsible gaming as broadly as
possible, and encourage a better understanding of the social impact of betting. Since
2005, GTECH has actively participated in the European Lotteries Monitoring System
(ELMS), monitoring sport events for UEFA, FIFA, and IOC with the objective of helping
safeguard the integrity of sports against the threat of manipulation of sports events.
With the aim of implementing future actions regarding sports and its good practices on
a European scale, the program led to the presentation of the new EL Code of Conduct on
Sports Betting during the final event of the IRIS project in June 2014.
Regulatory Model in Italy
The Italian government has adopted a model of
legal gaming that allows strong public control
through stringent requirements when operators
enter the market and during the subsequent
stages that delineate mutual obligations and
compliance controls. The license model allows the
State, represented by the Customs and Monopolies
Agency, to control the legal gaming market and
its players. The concessionaire is the temporary
42
owner of the right to exercise a prerogative of
the State. The role of concessionaire, therefore,
assumes compliance with the laws and regulations
that govern the entire sector, and also assumes
compliance with the strict rules regarding the fight
against money laundering, the protection of players
and minors, and Responsible Gaming.
The Customs and Monopolies Agency (the new name
following the merger of the Independent Authority
for the Administration of State Monopolies into the
Customs Agency, which occurred in 2012), regulates
the public gaming industry in Italy. The Agency prepares
the regulatory framework for the industry, designing the
guidelines for its dynamic and rational development,
verifying, in communication with its technological
partner Sogei, the regularity of the concessionaires’
behavior to provide a legal and Responsible Gaming
environment in a widely-monitored and technologically
advanced context.
THE INDUSTRY IN ITALY
The significance of this industry is now obvious because of the employment
effect, which can be measured in terms of businesses and workers employed:
•120,000 points-of-sale;
•6,600 companies belonging to the federation “Sistema Gioco Italia [Italy
Gaming System]” of Confindustria
Altogether, the sector employs around 140,000 people (around 20,000 employed
directly by the Operators and Tecnology Providers).
Source: Sistema Gioco Italia
THE ITALIAN LICENSING SYSTEM
Lotto
NUMBER OF CONCESSION
CONCESSION STARTING
AVALAIBLE ONLINE
1 (Lottomatica SpA)
1998
YES
Instant lotteries
1 (Lotterie Nazionali Srl)
2010
YES
Superenalotto
1 (Sisal SpA)
2008
YES
Bingo
222
Starting in 2000 variable
based on the agreement
conclusion date
YES
Sports and horse betting
296
2007 (sport/horse/online)
2009 (horse betting)
2013 (sport/horse)
YES (only for the concession
starting in 2007)
Remote gaming
107
Starting in 2011 variable
based on the agreement
conclusion date
YES
VLT/AWP (gaming machines)
13
2013
YES
Source: Internal - Libro Blu Agenzia delle Dogane e dei Monopoli, 2014
LOCAL INITIATIVES IN ITALY
The situation concerning the
Italian gaming regulation is
marked by the several local
initiatives (regional, municipal).
At the end of 2014, 13 Italian
regions had approved and
published laws which, with
different intensity and different
measures, impose limits on the
option of legal gaming in the
areas within their jurisdiction.
The laws introduce new
measures regarding distance
from the so-called “sensitive
places;” bans or limitations
on product and institutional
advertising; and incentives of
various kinds granted to the
shops that do not install gaming
devices or remove the existing
ones.
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SHAREHOLDERS
GTECH S.p.A. is a company with a registered
office at Viale del Campo Boario 56/D, Rome.
As of December 31, 2014, the deliberated
share capital amounts to €190,502,053.00,
the underwritten and paid up portion of which
amounts to €174,976,029.00. This quota is
divided into 174,976,029 ordinary shares with a
par value of €1.00 each, all equipped with
equal rights. All shares are dematerialized and
there are no restrictions in share transfer. There
are no class of shares granting particular control
rights.
At the end of the 2014 financial year, GTECH was
directly and indirectly controlled by De Agostini
S.p.A. (hereinafter, “DeAgostini”), directly through
DeAgostini (52.9%) and indirectly through DeA
Partecipazioni S.p.A. (5.8%). GTECH is subject to
direction and coordination by De Agostini S.p.A.
The Company issued bonds of different types
from 2006 until 2012 for a total value of 2,500
million euros, as stated and described in detail
in the GTECH S.p.A. Corporate Governance and
Ownership Structure Report.
SHAREHOLDING STRUCTURE
SHAREHOLDER
NUMBERS OF SHARES
% OF OUTSTANDING SHARES
De Agostini
92,556,318
52.897
DeA Partecipazioni
10,073,006
5.757
5,693,995
3.254
Assicurazioni Generali
* Based on most recent information available to GTECH S.p.A. as of December 31, 2014
GTECH owns 2,183,503 treasury shares,
amounting to 1.25 % of its share capital, as of
December 31, 2014.
GTECH has stock-based compensation plans that
serve as incentives for selected employees of the
Company and its subsidiaries. The plans provide for
the allocation of (i) options to subscribe to ordinary
shares (stock options) at a pre-determined
price or (ii) free shares (restricted stock) vested
upon achievement of predetermined economic
objectives at a consolidated level within a three
year period. These incentive-based plans are
designed to encourage employees to remain
with the Company, connecting compensation
with the creation of value for the shareholders, as
well as ensuring the market competitiveness of
compensation packages.
THE MERGER OF GTECH WITH IGT
On July 15, 2014, De Agostini, DeA Partecipazioni and IGT entered into a definitive
merger agreement for the acquisition of IGT by GTECH. The notice of this
agreement was been made available on the website of the Company and in the
Consob. The merger creates the world’s leading end-to-end gaming company,
through the combination of GTECH, the largest global lottery business, and IGT,
the world leader in the gaming equipment space.
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2014 PERFORMANCE OF GTECH S.P.A. STOCK
The charter of the board of directors provides
some provisions regulating the maximum number
of other offices that its members may hold in
the management or control bodies of other
relevant sized companies. The provisions are in
place to ensure that directors have sufficient
time to effectively address the responsibilities
of their position and any committee
memberships they may hold within the Company.
MINORITY SHAREHOLDERS’ RIGHTS
GTECH is compliant with the legislation protecting minority shareholders and
with the best international practices of corporate governance. Minority shareholders have the right: a) to integrate the list of objects to be discussed in the
Shareholders’ assembly; b) to integrate the appointment methods of the board
of directors and the board of statutory auditors; c) to designate a delegate to
the shareholders’ meetings, to whom voting instructions can be granted on the
proposals included in agenda.
Investor Relations
Investor Relations (IR) provides a constant, complete, and timely flow of information on the Company
and its subsidiaries in compliance with the principles of correctness and transparency. IR ensures that all
relevant information is distributed to all stakeholders.
Under the supervision of the Chief Financial Officer, the IR department communicates through quarterly
financial reports, the annual budget, special Company presentations, and price sensitive press releases.
Moreover, an audio web cast of the conference calls given by the top management of the Company are
available in connection with the presentation of quarterly and annual results.
The IR activities have increased during 2014: a total of 525 meetings with investors were held
(+ 22.4%). These meetings comprise a total of 15 road shows - 11 of which were in Europe
and four were in the United States - and two conferences with the financial community
concerning the presentation of the three-year strategic plan and the annual results. Financial
presentations were also given in conjunction with conferences organized by financial institutions.
As mentioned, the quarterly and annual results of 2014 had been presented through conference calls.
The GTECH S.p.A. website (http://www.gtech.com/) shows all of the final and intermediate reports of the
last year, an updated company presentation, all press releases, and all price sensitive documents.
45
CLIENTS
GTECH is a worldwide lottery operator and provider
of technology solutions and systems to regulated
gaming markets. The Company delivers innovative
products, creative content, and superior services
with an abiding commitment to the principles of
responsible gaming to effectively manage and
grow today’s evolving gaming markets.
GTECH has a global presence in all gaming sectors
and is a leader in the lottery industry, delivering
synergies in technology and advanced gaming
solutions.
GTECH HAS:
• 400,000 LOTTERY POINT-OF SALE-(POS) DEVICES DEPLOYED AND APPROXIMATELY 40,000 SELFSERVICE UNITS WITH LOTTERY CUSTOMERS AND LOTTERIES THAT GTECH OPERATES.
• INSTANT TICKET PRODUCTS OR SERVICES WITH A TOTAL OF 57 CUSTOMERS; 37 IN THE U.S. &
CANADA, SIX IN CENTRAL/SOUTH AMERICA AND CARIBBEAN; 12 IN EUROPE, ONE IN AUSTRALIA,
AND ONE IN AFRICA.
• FACILITIES MANAGEMENT, LOTTERY PRODUCTS, INSTANT TICKET SERVICES OR THE COMBINATION
THEREOF WITH LOTTERY OPERATORS IN REGULATED MARKETS IN APPROXIMATELY 100 COUNTRIES.
• 21 VIDEO CENTRAL SYSTEMS DEPLOYED, OVER 83,000 VIDEO LOTTERY TERMINALS (VLTS)
CONNECTED GLOBALLY
DATA SECURITY
Information Security plays an integral role in GTECH’s worldwide business as a
technology provider and licensed gaming operator. As cyberspace and other IT
security threats continue to increase, the continuing advancement of our security
framework is a key strategic target for the Company.
GTECH has implemented, and continuously updates, an integrated security framework
for the gaming market to protect customers and corporate assets, while complying
with regulations, standards, and certifications.
The framework is based on industry-leading security solutions for continuous
monitoring of the IT environment and secure processing of data. GTECH security
solutions and internal processes proactively resolve the new vulnerabilities of
technology and protect internal platforms, as well as defend online players from
cyber-attacks. GTECH has the ability to integrate systems such as anti-Distributed
Denial of Service (DDOS) protection, pro-active security monitoring, security incident
management, identity access management, antivirus protection, and software and
hardware vulnerability assessment across all areas of the business.
GTECH’s framework also leverages certified Information Security Management System
(ISMS) standards for all IT operations; from physical point-of-sale devices to new
game technologies and digital channels. GTECH’s ISMS utilizes industry best practices
and adheres to the highest security certifications such as ISO27001, PCI-DSS, PA-DSS,
OWASP, and NIST to ensure security compliance for all technology, processes, and
gaming products.
Protecting personal player data is of paramount importance for GTECH. An
internal security procedure exists within the IT system that is engineered
to deter any breach of personal data and to automatically detect the rootcause, impacts, and tracking of a security threat. The technical expertise and
security industry acumen of GTECH’s professionals guarantees the continuous
improvement of incident management procedures and the attainment of a high
level of protection and security for personal data.
46
All products sold by GTECH comply with the
international and national rules relative to user safety
for the consumer. The potential consequences to the
consumer’s health and safety of the products and
services concerning lotteries’ self-service equipment
are evaluated during the design phase and before
they are introduced onto the market. They comply
with the certifications required by the law in all the
districts in which they are adopted.
As gaming is subject to public regulation in all
the countries in which GTECH operates, the
production of machines and the management of
related services are subject to public restrictions
and controls, the main one being a ban on
gaming by minors. Consequently, GTECH activities
are 100% subject to stringent information
requirements aimed at full compliance with this ban.
Another critical deliverable for the Company is to
provide constant, secure and reliable transaction
processing for gaming customers. This goal is
fulfilled in many different ways: adoption of the most
advanced technologies, continuous improvement of
the network, optimization of the Backup Data Center
(BDC), implementation of the principle of redundancy,
and pursuit of constant innovation through important
investment programs.
B2B Clients
GTECH operates a unified, customer-facing
organization and is a leading competitor in the
rapidly evolving gaming market through its
Customer First service model.
GTECH PRODUCTS AND SERVICES
Lottery
GTECH provides and operates highly-secure, online lottery transaction processing systems. The Company designs, sells, and operates a complete suite of lottery-enabled Point of
Sale terminals that are electronically linked to a centralized transaction processing system that reconciles lottery funds between the retailer, where a transaction is enabled, and
the lottery authority.
The Company is also a major technologically advanced instant game supplier. As an end-to-end provider of instant tickets and related services, GTECH specializes in the fast delivery
of high-quality instant ticket games. In addition, GTECH provides its customers with instant ticket marketing plans and graphic designs, programming, production, packaging,
shipping, and delivery services.
The Company is also the provider of lottery management services and is responsible for day-to-day operations in certain jurisdictions. In this role, GTECH leverages its years of
experience as the sole concessionaire for the Italian Lotto game, which includes management of all activities along the lottery value chain.
GTECH continues to develop new lottery games, license new game brands, and install a range of new lottery distribution devices and actively advises its customers on growth
strategies.
Machine Gaming
GTECH designs, develops, manufactures, and provides top performing cabinets, games, systems, and software for customers in legal gaming markets throughout the world. The
Company is a provider of video lottery terminals (VLTs), VLT central systems, and VLT games to government customers in North America and Europe, and is a provider of VLTs and
games to operators in the U.S. GTECH is also a provider of video and traditional mechanical reel slot machines and casino systems to casino operators in Europe, the Middle East,
Asia, and the Americas, as well as to Native American casinos in the U.S. In addition, GTECH provides amusement with prize (AWP) machines and games to government customers in
Europe.
Sports Wagering
GTECH offers a sports-wagering platform comprised of a core engine and associated support modules and serves leading lotteries and commercial operators around the world. Our
modular approach enables us to fit the components to customers’ unique architectures and create a customized product in response to specific customer requirements.
Commercial
Services
GTECH offers high-volume transaction processing of non-lottery commercial transactions such as pre-paid cellular telephone top-ups, bill payments, and ticketing for sporting
and musical events. We also provide financial collection services and processing and network services on behalf of third parties. In addition, we issue electronic money through
immediate conversion of funds received, as well as other related activities.
Interactive Games
GTECH provides interactive games such as poker, casino, bingo, and lottery games, all of which are configurable. The poker product is the industry’s first fully compliant Apple poker
product, making it 100% compatible with all leading platforms and devices. GTECH’s online casino products include a wide selection of table and slot games with single, multiplayer,
and tournament play. The bingo solution includes social and interactive, available in nine countries and in eleven languages, with the content adjusted to suit specific regions.
GTECH has nearly 100 interactive gaming customers operating under license in nearly 20 jurisdictions (countries) around the globe. With GTECH, customers are
grouped by product type; Bingo, Poker, Casino, Games, Lottery, and Sports Betting. Customers are then further segmented into two categories: commercial or World
Lottery Association customers.
VIDEO GAMING/VLT SYSTEMS AND GAMES CUSTOMERS
Sweden
Iceland
British
Columbia
Alberta
Manitoba
Saskatchewan
Quebec
Newfoundland
& Labrador
Prince Edward Island
Montana
Oregon
South Dakota
Kansas
Còrdoba,
Argentina
New Brunswick
Nova Scotia
United
Kingdom
New
York
Rhode Island
Pennsylvania
Illinois
Delaware
West Virginia Maryland
Switzerland
Louisiana
Italy
Greece
System, VLT’S
and Games
VLT’S
and Games
Games
only
47
Direct customer relationship management is
primarily the responsibility of GTECH’s Account
Teams which consist of a variety of people who
support the Company’s customers on a day-today basis. These teams are 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. The Account
Teams ensure that the Company’s overall strategy
and vision are executed and serve as a focal-point
for all of the Company’s business.
Ultimate responsibility for the Accounts lies with
the Account Development Managers (ADM) or
Country Managers. Their role is to work with
the customer to execute the contract and build
the customer relationship. The ADM is the link
between the local organization and corporate.
The Company maintains a focus on its customers,
maximizing its capabilities in response to existing
and evolving market opportunities in the lottery
industry, gaming venues, and commercial services
sectors. Service to GTECH’s global customer base
addresses all of the different segments of the
value chain from the implementation of hardware
to the direct relations with players - and can be
analytically divided into two broad segments of
business: B2B and B2C. B2B products and services
are delivered to public or private gaming operators
and retailers; B2C products and services are
offered to players and customers.
GTECH can take advantage of synergies and cross
selling opportunities between B2B and B2C by
applying a dynamic technology strategy as is the
case with sports betting services.
SPORTS BETTING SERVICE MODEL DEPICTING INTEGRATION FROM B2B TO B2C
GTECH product & services
portfolio
Product & services provided
Typical pricing model
Channels
Technology supplying B2B
Technology platform and
software to support player
management
Product sales
• Retail
• Interactive
• Mobile
Service providing B2B2C
Value added services
including event/odds and risk
management
Revenue sharing
• Retail
• Interactive
• Mobile
Game operations B2C
End-to-end services including
player and distribution
management
Profit sharing
• Retail
• Interactive
• Mobile
Retailers
POINT OF SALES MANAGED BY GTECH BY COUNTRY IN 2014
140,000
131,983
109,345
120,000
100,000
80,000
60,000
40,000
10,138
20,000
9,169
9,292
48
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As a gaming operator, service manager, and
technology supplier, GTECH provides services that
include iLottery and Communications equipment
repair and maintenance, training, installation,
and removal of equipment, call center support
(help desk and dispatch), as well as distribution
of consumable supplies. The retailer network
includes a wide range of products and game types.
The retailer base works directly with the end
consumer. The quality of the relationships with
the point-of-sale retailers is an important success
factor for GTECH as the Company places great
emphasis on providing value-added services
to retailers. GTECH considers the retailers to
be business partners and encourages their
entrepreneurial development through various
training programs. These programs address the
commercial aspects of selling GTECH products as
well as the best practices that relate to product
distribution, legal responsibilities, business
management, and responsible gaming. In turn,
the point-of-sale retailers benefit from GTECH’s
reliable, secure system operation, and responsive
implementation and ongoing support services.
LOTTERY POINTS OF SALE IN THE UNITED STATES
19.4%
36.4%
GAS C-STORE
C-STORE
15.3%
GROCERS
3.4%
KIOSKS
0.1%
OTHER
1.8%
MERCHANDISE
0.7%
SERVICE
2.4%
3%
DRUG STORE
8.4%
BAR/REST.
9.1%
LIQUOR STORE
NEWS/SMOKE
Source: La Fleur Almanac 2014
In 2014, GTECH worked with its largest domestic
lottery customers, Texas, New Jersey, and
North Carolina to implement an innovative
retailer training delivery system known as
Lottery Learning Link (LLL). LLL is a web-based
instructional program that includes full motion
video and audio, three dimensional, interactive
representations of terminal hardware, and
simulations of the touchscreen lottery terminal
applications. Retailers receiving training via LLL
can virtually open doors and replace paper rolls;
turn the terminal around to see data and power
connections; and produce lottery wagers and
reports on the web, just as if they were doing it
in front of an actual lottery terminal. LLL is also
used by the North Carolina Education Lottery, to
deliver required responsible gaming training to
their retailers.
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GTECH POINTS OF SALE IN ITALY
2.6%
0.4%
56.2%
TOBACONISTS
OFFICES
AGENCIES
BAR
RESTOURANTS
POST
BETTING
33.7%
0.4%
5%
KIOSKS
1.1%
MERCHANDISE
0.7%
GAS STORES
Lottomatica
Retailer training is a key asset for Lottomatica,
given the breadth of products and services
covered and the importance of operating values
to be transmitted. Training represents a critical
success factor as a tool for economic growth and
it is a means of promoting socially responsible
values.
During retailer training, Lottomatica ensures a
complete understanding of the technology and
services it provides, as well as our commitment
to Responsible Gaming. To meet specific training
needs, classroom training is also provided by
the Training and Marketing Responsibles (RAM)
which provides specific training activities for
retailers. As an example, Lottomatica uses several
communications channels including terminal
communications, pop-up messages on terminals,
direct mailing, emails, telephone calls, and its
Resellers Portal (www.rivenditorilottomatica.it).
POINTS OF SALE BY TYPE OF GAME OFFERED IN ITALY
67,913 67,410
70,000
60,000
50,000
40,000
32,739 33,178
30,000
24,066 23,236
1,727 1,793
20,000
818 777
10,000
2013
50
2014
P
AW
TIV
E
HA VL
LL T
S
AC
S
BE POR
TT TS
IN
G
SC
AN RAT
D CH
W
IN
LO
TT
O
0
LOTTOMATICA RETAILERS PORTAL
The portal, www.rivenditorilottomatica.it, contains all business news, giving
information in a timely, detailed, and customized way to each customer that logs
on to the website.
Through this portal, customers can download training materials such as manuals,
accounting documents, online assistance requests; monitor credit limits and
services; and directly order Scratch and Win and materials. Moreover, GTECH can
send out messages to each Point of Sales or to a specific group.
In addition, the Responsible Gaming section has been improved and reinforced.
The portal is designed to support the Company/retailer relationship.
TRAINING HOURS TO THE POINTS OF SALE - LOTTOMATICA
No. of hours
Hours devoted to
Responsible Gaming
Participants
Participant of the
Responsible Gaming Training
Classroom
9,310
286
1,194
572
Online
36,893
1,654
20,260
3,308
Total
46,203
1,940
21,454
3,880
Northstar New Jersey
Northstar New Jersey offers its retailers a best-in-class retailer training program that has several components
such as terminal functionalities; basic terminal trouble shooting; retailer accounting; overview of draw-based and
instant ticket games; settlement procedures; lottery security requirements; and Responsible Gaming awareness.
Northstar, Illinois
Northstar Illinois provides approximately two hours of classroom training to all retailers and focuses one
hour of that training Responsible Gaming.
As the table below shows, a significant amount of time is devoted to retailer training in Illinois.
A retailer page is included on the Illinois Lottery website: www.illinoislottery.com/retailer. Northstar Illinois
posts several retailer communications to this site including the Retailer Focus newsletter, raffle results, and
other product communications.
Northstar Illinois distributes the Retailer Focus newsletter on a monthly basis and includes it with all initial
instant ticket allocations. Copies of the newsletter are also supplied to the Lottery Sales Representatives so
they can leave them at retail locations. Game-specific flyers are created for communicating game launches,
changes, etc., on an as needed basis, averaging 12-14 times per year.
TRAINING HOURS TO THE POINTS OF SALE - ILLINOIS
Type
2014 Hours
2013 Hours
Avg. Hours per Year
Classroom Training
360
330
345
Vending Training
600
406.5
503.25
Total Training
960
736.5
848.25
GTECH Antilles
Technical training is available to retailers 9:00 a.m. to 5:00 p.m. Monday through Friday by GTECH Antilles
Field Service Technical Staff. There are also training sessions provided monthly at the main office to educate
retailers on all of the GTECH Antilles lottery games and equipment, as well as best practices. This training is
conducted in a classroom setting with a trainer and equipment for practicing the instruction given.
Careful integration and coordination of many channels of communication is intended to send a clear,
consistent, and compelling message about the organization and its related products, while promoting a
culture of legal and Responsible Gaming for players and retailers.
51
B2C Clients - The Players
In recent years, gaming operators have been reexamining the single business segment model and
have begun to offer a range of integrated products.
GTECH, whose approach is centered on the
customer, has followed and even encouraged this
change, presenting itself as a unified organization,
capable of offering solutions in all areas of the
industry. In compliance with the differences of the
legal specificities of each country and jurisdiction
all over the world, GTECH has adopted a model
centered on the individual customer, providing
services that embrace all of the various gaming
segments in an integrated approach.
In some countries, under Lottery Management
Services (LMS) agreements, GTECH manages
the day-to-day operations and core functions of
a lottery, including lottery game development;
retailer recruitment training and communications;
call center operations; supply of goods and
services; subcontractor and vendor selection and
management; and marketing and advertising. This
has been the case in Italy, where Lottomatica has
longstanding experience as the lottery operator.
This experience has been applied to GTECH’s LMS
customers including New Jersey, Illinois, Indiana,
Costa Rica, Colombia, and GTECH Antilles.
OPERATOR BRAND/LOTTERY MANAGEMENT SERVICES
GTECH Antilles consist of 6 private
Management contracts (Anguilla, Antigua,
Barbados, St Kitts, St. Maarten and U.S.
Virgin Islands) signed with 6 different
sovereign nations, wich are managed under
one multi-jurisdictional management
structure.
52
Lottomatica
In 2014 Italy was one ofthe most important market
for consumers, where GTECH continues the history
of superior service established by Lottomatica.
In the fourth quarter of 2014, Lottomatica served
23.1 million players (47.5 % of total population
of 18 and more), which increased by more than
250,000 million compared to the fourth quarter
of 2013.
In the gaming market, Lottomatica holds 47.5%
of the gaming market share, meaning €6.6
billion turnover. In this market, Scratch and Win
comprises 17% of the business base, followed by
slot machines (AWP/VLT) with 12.8%. 10eLotto
equates to 7.2% of the business, with Lotto
totaling 5.3% of total business. The rest of the
business is 3.2% Online Poker, 1.2% land-based
sports betting, 0.5% online sports betting, and
0.1% online lottery.
New games played on new platforms such as
smartphones and tablets, have increased the
number of online players to eight million and
growing. The online gambling for money market
is increasing as well, as shown by research that
revealed that 1.1 million people say that they have
played a game online in the last three months, and
more than 800,000 players have an online gaming
account
PERCENTAGE OF PLAYERS BY GAME TYPE IN ITALY
%
n°
100.0%
48,560,000
Played at least one game
47.5%
23,070,000
Lotteries
43.8%
21,270,000
Adult population: 18 and more
AWP/VLT (NET)
7.0%
3,400,000
Sports Betting (NET)
4.5%
2,190,000
Football pool and other sports games (Totogol, Bigmatch)
3.0%
1,460,000
Bingo
2.1%
1,020,000
Poker online (NET)
0.8%
390,000
Total online games (NET)
2.8%
1,360,000
Source: GFK-Eurisko Whole 2014. 12 Months.
ACTIVE GAME ACCOUNT IN ITALY
1,400
1,200
966
1,000
800
665
960
743
600
400
14
20
13
20
12
20
11
20
10
20
09
20
08
0
20
RECORDED AT A LOW 0.01%
200
07
TRANSACTIONS WERE
663
550
20
DURING 2014, FRAUDULENT
820
785
Source: Doxa Game Italy 2014
ANTIFRAUD MEASURES IN PROACTIVE PHASE
The gaming account management Fraud Team ensures the safety of gaming environments and maintains an appropriate level of
transparency to the customer:
Assessment preventive actions
1 Prevention activities, Fraud and Money
Laundering detection
2 Customer protection and transaction
safety
3 Cooperation with the Authorities
4 Preventive actions in game
Customer registration based on an identity
details verification to prevent risk of
customer identify theft
A team of experts monitors financial
transactios in order to prevent the use of
counterfeit payment instruments
Cooperation with the Authorities to report
fraudulent activities
A fraudulent gaming account will be
suspended or closed by applyng special
procedures
53
During 2014, the variety of games offered has been improved. In particular, GTECH introduced Betting Exchange, a
variation on certain existing games, designed in response to the player’s preferences. Overall, product innovation
in 2014 was focused on the betting segment that, in fact, achieved a significant increase in turnover after
several years of decline, thanks to the consistent recovery of shares of the game played on unauthorized sites.
Two-thirds of active online players spend an average of less than €50 a month and more than
half of those players only play occasionally. This is consistent with the recent analysis of the
expenditures which shows that a large proportion of online players spend a small amount of money.
More than half of the players who open an account play only occasionally (at most, playing an average
of three months during the year), while only 15% of active online players play consistently throughout
the year (at least nine months). Surveys carried out in Italy show changes in players’ motivations. Players
tend to be more responsible, and most of them establish spending limits. Surveys also show that Italian
online players want to play for fun, rather than to make money (source:Doxa G@ame in Italy 2014).
PERCENTAGE OF PLAYERS BY GAME TYPE IN NEW JERSEY
Northstar New Jersey
On June 20, 2013, Northstar New Jersey signed
a 15-year LMS Agreement with the New Jersey
Department of Treasury and New Jersey Lottery to
provide comprehensive lottery services through
year 2029. The mission of the New Jersey Lottery
is to raise revenue for maximum contribution to
education and institutions benefiting the citizens
of New Jersey through the sale of Lottery products.
Under the LMS agreement, Northstar New Jersey
administers several functions for the New Jersey
Lottery including sales and marketing operations,
promotions, advertising, technology, game
development, instant ticket management, and retail
communications to maximize Lottery revenue while
providing greater support for Lottery beneficiaries.
Total Answering (n=)
Game
1044
%
Powerball
65.6
Mega Millions
70.1
Cash 4 Life
44.9
Pick 6 Lotto
53.8
Jersey Cash 5
46.3
Pick 4
39.3
Pick 3
39.2
Instant Match
20.4
Instant Scratch Games
58.4
Source: Instant Game Segmentation study
conducted in New Jersey in late 2014
HOOSIER LOTTERY PLAYER PROFILE
88%
85%
GTECH Indiana
GTECH Indiana, LLC, signed the 15-year Integrated
Services Agreement with the Hoosier Lottery on
October 12, 2012. Under the Agreement, which
began in 2013, the Hoosier Lottery has control
over all significant business decisions. GTECH Indiana manages the day-to-day operations of the
Hoosier Lottery and its core functions until June
30, 2028.
20%
23%
71%
20%
32%
57%
35%
12%
42%
13%
15%
25%
23%
24%
19%
13%
8%
11%
12%
7%
9%
4%
PLAYED IN PAST WEEK
54
4%
1%
12%
15%
24%
9%
9%
3%
3%
PLAYED IN PAST MONTH
28%
14%
10%
3%
1%
26%
13%
9%
3%
1%
25%
18%
10%
10%
18%
16%
7%
6%
3%
2%
PLAYED IN PAST YEAR
2%
1%
12%
4%
7%
7%
1%
2%
PLAYED MORE THAN A YEAR AGO
9%
12%
7%
4%
1%
Source: KS&R 2014
GTECH Antilles
GTECH Antilles consists of six private management contracts (Anguilla, Antigua, Barbados, St. Kitts and Navis, St. Maartens, and U.S.
Virgin Islands) signed with six different sovereign nations, which are managed under one multi-jurisdictional management structure.
GTECH ANTILLES PLAYER PROFILE
90
80
71%
78%
78%
73%
68%
70
62%
59%
60
32%
18%
20
47%
34%
31%
25%
30
72%
53%
48%
50
40
67%
23%
22%
14%
10%
10
CH
O
AT
TT
PE
TS
R
CR
LO
KE
GA
ME
PI
NO
6
4
CK
3
CK
NT
ST
AN
LL
BA
PI
SU
DO
PO
UB
W
LE
ER
DR
AW
0
BARBADOS
ST MARTEEN
ANTIGUA
USVI
GTECH ANTILLES SERVICES PROFILE
Planned
Executed
Explore
Comm Services
• Plan,develop and launch DR Comm Services
• Onboard 600 terminal retail services
• Launch 6 partner services
• DR Comm Services launched Sept 2014
• 546 terminals
• 3 partner services
• Partner discussions with 8 additional providers
• Infancy partner discussions with multiple business
lines
Online
• Launch Mini-Loto Game
• Execute year-long Double Draw
• Increase St. Maarten market share 11%
• Launched Lucky Pick Feb 2014
• Double Draw down 5.4%
• Estimated market share up 19.7%
• Barbados Sunday sales
Instants
•
•
•
•
•
•
•
•
•
Category up 9% YTD
Conversions of 21 agents complete
Launched Family
of game categories
Launched Trucks and Cash and Miami Nice Merchandise themes
• Expanded popular Monthly Bonus game to $10 and
$5 price points
• Implement Rio 2016 Olympic Game
Cost saving
• Achieve $250k in savings
• Convert comm solution to ADSL
• Projected $310k in savings
• ADSL implementationn in Barbados and St. Maarten
in process
• ADSL conversions in DR Barbados high sites on tap
Retail strategy
•
•
•
•
•
•
•
•
Grow category 8%
Convert 52 non-selling agents
Diversify portfolio
Push players to higher price points
Jackpot internal coverage to 100%
Jackpot external coverage to 85%
Introduce Menu Board to overlay IST support
Implement Lucky Store Concept
Reached 95%
Reached 92%
Introduced 102 Menu Boards
Implemented Lucky Store Concept
55
GTECH Costa Rica
In Costa Rica, the number of players ranges
from 1.3 million to 1.5 million (the country’s
total population is 4.6 million). It is estimated
that over 840,000 people are regular players
of the Costa Rica Lottery, which equates to
approximately 60% of the country’s regular
players. Approximately 60% of Costa Rica’s
regular players are males and two thirds of that
percentage are between 35 and 65 years old.
Colombia
GTECH SAS has been the Operator of the
Baloto Game in Colombia since 2000, providing
all services including information technology,
field services, marketing, finance, sales, point
of sale trainings, executing points of sale
materials, and human resources.
DISTRIBUTION OF ANNUAL SALES BY GAMES
Lotto Game
14%
Numbers Games
66%
Casinos
Passive Lotteries
5%
IN ITALY, CARTALIS “IMEL“ CONTRIBUTES TO THE DIFFUSION OF ELECTRONIC CASH, PROVIDING THE
ECONOMY WITH CASHLESS TOOLS.
15%
The customers’ services in Italy
GTECH also offers high-volume transaction
processing of non-lottery commercial transactions
such as prepaid mobile top-ups and bill payments.
The Company provides financial collection services
and processing and network services on behalf
of third parties, and issues electronic money
through immediate conversion of funds received.
Through the experience gained by its brand
Lottomatica in Italy, GTECH has developed
innovative, simple, convenient, and technologically
advanced solutions to satisfy and simplify
daily needs by saving time, offering quick and
close-to-home services and safe transactions.
These services represent an efficient and richer
alternative to more traditional channels such as
post offices and banks. Through 77,546 pointsof-sale locations, GTECH offers the largest
nation-wide network, supplying more than 100
non-lottery commercial transaction services such
as card and telephone recharging, ticket office,
electronic money transfers, and revenue stamps.
56
SERVICE MANAGEMENT
GTECH’s strategically designed and customized maintenance program fulfills the
need for proper upkeep and
maximum operations uptime.
GTECH utilizes a Service Management Tool (SMT) to ensure that this happens. This
tool adds automation to the
entire life cycle of a service
call, ensuring the utmost customer satisfaction. It covers
every discipline including but
not limited to installations,
moves, removals, hotline, repair depot, and dispatch.
Clients Services
GTECH’s Lottery and Gaming Services organization
incorporates more than 1,200 Field and Gaming
Service personnel spread across 28 domestic
U.S. lottery states, 363 North American Gaming
venues, and 25 countries internationally. They
provided the following services:
• Retailer support for the United States and
Leeward Islands
• Internet Wagering support for Illinois and Georgia
• iGaming support for Ontario
• Poker and Bingo support in Quebec, British
Columbia, and Manitoba.
Client Services resources are responsible for
more than 1,140,000 pieces of equipment
that include on-counter terminals, satellite
communication equipment, and player facing
games. Resources are available to assist with
terminal
provisioning
(installs/removals/
relocations), repairs, and all maintenance
requirements any hour of the day, 365 days a year.
In 2014, Lottery and Gaming Service Technicians
responded to over 1.2 million service calls.
The National Response Center (NRC) manages
its operations from five call center locations:
Providence, Rhode Island; Austin, Texas; Atlanta,
Georgia; Charleston, West Virginia; and Toronto,
Ontario; with outsourced operations in Tennessee
and Virginia. These centers support calls from
28 jurisdictions and eight lottery player sites.
NRC Management uses workforce optimization
software to schedule associates based on the
calling patterns of the retailers. Currently, the NRC
has 206 associates trained to handle customer
calls. The NRC also has several dedicated support
staff members including call center supervisors;
managers; directors; workforce managers; project
managers; technology managers; trainers; and
software, network, and telecomm engineers.
MAIN METRICS THE EMEA CALL CENTER UTILIZED IN 2014 TO MANAGE A POSITIVE CUSTOMER EXPERIENCE.
Metric
Description
2014 Results
Answered Calls
Total Calls received by Call Centers First/Second Line
294180
Unanswered Calls
Percentage number of Unanswered Calls
4%
Ring Time
Average daily ring time
35 seconds
Clear Rate
Percentage of calls resolved without escalation/ the need to send out a Field
Service Tech (FST) to a retailer location. The goal is to clear more than 60% of all
calls received.
58%
GTECH’s Europe, Middle East, Africa (EMEA) Call
Center operations provides lottery retailers and
commercial services clients with a dedicated
team of call center associates that may be
reached toll-free during working hours, seven
days a week and 365 days a year. EMEA Call
Center supports calls from four jurisdictions and
four lottery player sites throughout four call
center locations: Cracow, Poland; Madrid, Spain;
Prague, Czech Republic; and Bratislava, Slovakia.
The EMEA Call Center is a single point of contact for
retailers who need assistance or help in working with
their terminals, handling equipment issues, resolving
network-related problems, completing supply
requests, or obtaining answers to general questions.
Support is provided across multiple contact channels
including phone, email, web-based forms, etc.
In addition to first line retailer support, the EMEA
Call Center provides dispatch support for the Field
Service Technicians (FSTs), network specialists,
and depot technicians. The second line Call Center
support is responsible for resolving issues remotely.
A variety of tools are used to perform remote
diagnosis in order to resolve an issue. If the issue
cannot be resolved remotely, then the second
line team will dispatch a Field Service or Network
Technician to visit the retailer in order to replace
the failed equipment. Second line support also
receives calls from FSTs as well as from Customer
(Lottery) and external departments (Operations).
GTECH also manages an English-speaking Contact
Center, based in Hyderabad, India, and a multilingual
contact center in Bucharest, Romania.
The contact centers have dedicated and
experienced teams providing customer support for:
• Bingo
• Casino
• Poker
• Sports betting
• Cashier
There is a dedicated quality assurance (QA) officer
who is in charge of the QA program:
• All the phones, emails, and in-person help are
logged.
• A random sample size of 10 - 15 interactions
per agent are analyzed every month.
• The samples are taken from all three channels
of communication emails.
• The data is analyzed according to the QA
parameters and scored.
• Feedback is given to the Customer Service
Representatives on a monthly and spot basis.
Most inquiries are serviced in Italy through the
local contact center. In 2014, it processed more
than 2.2 million B2B calls and almost 1.4 million
B2C contacts.
57
2014 B2C CONTACT CHANNELS USED BY PLAYERS
ITALY
15%
EMAILS
14%
CHAT
CANADA
71%
20%
TELEPHONE
TELEPHONE
U.K.
10%
28%
TELEPHONE
CHAT
62%
EMAILS
58
71%
CHAT
9%
EMAILS
QUALITY ASSESSMENT EXERCISE OF NRC IN 2014
Metric
Description
Results
Adherence
The percentage of time an agent’s activities match what was scheduled (i.e. breaks, projects, etc.). The goal is 90%.
92.63%
Quality
Percentage of quality areas met on all reviewed calls. The goal is 90%.
90.90%
Handle Time
Average time it takes to handle a call (includes hold and wrap-up time). The goal is
dependent upon the majority of all associates’ time.
415 seconds
Clear Rate
Percentage of cases resolved without the need to send out a FST to a retailer
location. The goal is to clear 63% of all calls received.
53.65%
59
COMMUNITIES
The goal of GTECH’s community involvement
programs is to enrich and strengthen the
communities where the company operates,
especially those where its facilities are
historically rooted and where relationships
have been established with local and national
governments, associations, and institutions. The
Company encourages employee involvement in
causes that are important to them by offering
additional financial support to these initiatives.
GTECH works closely with communities and
governments around the world and is well aware
of the impact it can have as a committed corporate
citizen. The Company donates to many worthy
organizations globally, offering support for select
projects based on the results obtained by the
organizations, the effectiveness of the initiatives
proposed, and the reliability of the associations
as measured by performance documentation.
GTECH CONTRIBUTIONS IN FAVOR OF LOCAL COMMUNITIES (€/000)
2,187.6
SOCIAL
2,294.6
SPORTS
60
2,973.4
CULTURE
Cultural Initiatives
GTECH strongly believes that culture is the glue
that holds a society together, in addition to being
an important factor for growth and development.
GTECH has continued the tradition of supporting
important projects and events that add cultural
value to society.
THE MOST IMPORTANT RESTORATIONS
FROM IL GIOCO DEL LOTTO
Since 1996 with the introduction of the second weekly draw on Wednesday (Law
No. 662/1996), a portion of the income from “Il Gioco del Lotto” has been designated by the Ministry of Economy and Finance to support the restoration and
enhancement of Italian cultural and artistic heritage.
In 2014, thanks to the proceeds of “Gioco del Lotto”, throughout Italy, more than
120 restoration projects had been able to get funds, with a total budget of nearly
23 million euro.
Reggia e Parco Venaria Reale
Turin
Palazzo Reale
Milan
Biblioteca Nazionale Marciana
Venice
Biblioteca Palatina
Parma
Parco archeologico
Paestum
Palazzo del Collegio Romano
Rome
Archivio di Stato
Bari
Museo Nazionale “G.A. Sanna”
Complesso di Sant’Agostino
Sassari
Biblioteca Nazionale
Potenza
61
CULTURAL INITIATIVES
Associations/Events
Cultural Initiatives
Auditorium Parco
della musica
Gioco del Lotto has been a sponsor of the foundation “Musica per Roma” since its very beginning. The foundation is responsible for the organization and management of the
Auditorium Parco della Musica in Rome, an important Italian and European venue that offers concerts, theatrical productions, dance performances, literary readings, film viewings,
and meetings with authors. In partnership with the Santa Cecilia foundation, Gioco del Lotto organized a special event dedicated to music, with concerts, workshops and
meetings, all free of charge.
Bookcity
The Gioco del Lotto partnered with BookCity 2014 for the fourth annual book and literature fair organized in partnership with the City of Milan and the BookCity committee. The
four day long fair included events throughout the city during which Gioco del Lotto offered the local community the opportunity to participate free of charge at the event “Aperitivi
con l’autore” (aperitif with the author).
FAI Marathon
The Gioco del Lotto once again partnered with FAI (Fondo Italiano per l’Ambiente) to organize the 2014 “cultural marathon” – an initiative held simultaneously in 120 cities
throughout Italy. Marathon stops included important monuments such as San Michele in Rome, the Portico of San Luca in Bologna, the Museo del cappello Borsalino in
Alessandria, Castel dell’Ovo in Naples, Castello Normanno Svevo in Bari, and the Grifi House in Milan.
FirstWorks
GTECH continues to support FirstWorks and its world-class performing arts programs that builds the cultural, educational, and economic vitality of Rhode Island. Its mission is to
enhance Providence’s reputation and reach as a vibrant center for art and innovation, engage new audiences and artists across the region, and spark creativity and dialogue.
Friends of Italian
Cultural Center of
Boston italianissimo!
2014
GTECH is a proud sponsor of the Friends of Italian Cultural Center of Boston’s mission to establish a sustainable Italian Cultural Center in Boston (ICCB). To achieve this, it works
very closely with the Consulate General of Italy in Boston, with the Italian and Italian-American community, with Italian and Italian-American associations, with universities,
colleges and other Boston-based non-profit cultural organizations, with local authorities, as well as with Italian museums, foundations, and cultural centers.
Il Gioco serio
dell’arte
An art festival with free admission was held at Palazzo Barberini, which was restored using Lotto proceeds. The 2014 edition focused on cinema, and speakers included wellknown directors, like Paolo Sorrentino, Gabriele Salvatores, and Carlo Verdone.
JuniOrchestra
The Gioco del Lotto sponsors JuniOrchestra, the Santa Cecilia National Academy youth orchestra. JuniOrchestra aims to give young people the opportunity to learn to play music
together and to share the wonderful world of music. Gioco del Lotto represents and promotes the youth orchestra during its other cultural events.
Museo del
Novecento Florence
The Gioco del Lotto has confirmed its participation in supporting the arts and culture throughout Italy, by partnering with Museo Novecento, a new 20th century Italian art
museum in Florence. During its opening weekend, Gioco del Lotto offered free guided tours, and organized fun and interactive workshops for children and families.
Trinity Repertory
Company
GTECH has been a long supporter of the Trinity Reperatory Company, one of Rhode Island’s largest arts organizations. Trinity Rep has a significant impact on the community and is
the center of Providence’s arts and entertainment district.
Vittoriano
The Vittoriano which was restored using Lotto proceeds, held two important art exhibits in 2014: “The masterpieces of Musée d’Orsay,” which included free workshops for children
and free admission on certain evenings, and “Mario Sironi 1885-1961.” The Company also offered free guided tours of both exhibits for its employees and their families.
WaterFire
Providence
Each year, GTECH supports numerous social and cultural activities taking place at its Providence, Rhode Island headquarters including WaterFire Providence. WaterFire Providence
is an independent, non-profit arts organization whose mission is to inspire Providence and its visitors by revitalizing the urban experience, fostering community engagement, and
creatively transforming the city by presenting WaterFire for all to enjoy.
OPENING OF MUSEO 900
The Gioco del Lotto has confirmed its participation in supporting the arts and culture throughout Italy, partnering up with Museo
Novecento, a new 20th century Italian art museum in Florence. During its opening weekend, Gioco del Lotto offered free guided tours,
and organized fun and interactive workshops for children and families “Io Gioco con l’Arte,” free of charge. The partnership with Museo
Novecento and the events organized together demonstrate how Gioco del Lotto works to give everyone the opportunity to enjoy the
immense artistic and cultural patrimony in Italy, promoting awareness of its value.
62
Initiatives in Education
GTECH makes education a top priority. The Company’s largest philanthropic contributions go toward
educational programs supporting engineering, computer science, technology, and business management
areas. In addition to granting corporate gifts to colleges and universities, GTECH supports hundreds of
employee-directed efforts by matching gifts and scholarship donations that support colleges and
universities. In all areas of giving, GTECH aims to support programs that serve diverse groups.
GTECH’S AFTER SCHOOL ADVANTAGE PROGRAM
GTECH’s After School Advantage Program provides computer centers for at-risk children during the critical after school hours. The
program, established in 1998, was created as an opportunity for technical and non-technical GTECH employees to share their
time and skills with children in communities where GTECH does business. The program lessens the digital divide for disadvantaged
children who are at risk of falling behind academically because they do not have access to computers in today’s ever increasing
digital society. To date, the After School Advantage program has successfully been implemented in 27 U.S. states and several
international jurisdictions including Jamaica, Colombia, Barbados, and Chile. In 2014, new computer labs were launched in several
GTECH jurisdictions including California, Florida, Indiana, Jamaica, Missouri, New York, North Carolina, South Dakota, Tennessee, Texas,
Virginia, Washington, Antigua, Barbados, Chile, Colombia, St. Kitts and Trinidad and Tobago.
EDUCATIONAL INITIATIVES
Association/event
Education Initiative
AIPD – Lavoratori in corso
The national professional training program works to organize workshops for disabled workers with Down syndrome. The project will organize national seminars and
specialized events for operators and young people with Down syndrome in order to help them enter the workforce.
City Year Rhode Island
City Year bridges the gap in high-poverty communities between the support that students actually need and what their schools are designed and resourced to provide. The
aim is to help increase graduation rates across the country, and change the lives of the students.
Dorcas International Institute of RI
Dorcas International Institute of RI assists low-income adults in realizing their full potential through literacy, employment, advocacy, and community involvement.
Girls on the Run
Girls on the Run is a 12-week program of interactive activities that teach girls in third through eighth grades to celebrate their unique and real selves while giving them
the tools to make positive decisions and avoid risky adolescent behaviors.
International Collaborative
Industry Program (ICIP)
The goal of the ICIP program is to make Information Technology sustainable as and available to the largest number of people as possible. Inveneo designed and has
already distributed a communication system using existing telephone line networks that can be accessed by computer. It has also implemented low consumption wireless
technologies through the use of solar power.
Institute for Labor Studies &
Research (ILSR)
ILSR is a private, non-profit institution that provides education and training to encourage the workforce of Rhode Island and the labor movement to have a stronger and
more meaningful voice in the workplace, to participate in Rhode Island’s changing job market, and to create a more just and equitable society.
The Institute for the Study &
Practice of Nonviolence
The Institute is an innovative and nationally lauded organization that targets the reduction of gang or group related violence in Rhode Island. The Institute utilizes
Nonviolence Trainings in prison and schools, Street Outreach, hospital response to violent crime, employment services and enrichment activities.
Meeting Street School
Meeting Street School innovatively empowers children and their families to thrive by fostering their self-development.
The Providence Children’s
Museum
The Providence Children’s Museum inspires and celebrates learning through active play and exploration, welcoming families from all communities and backgrounds.
Providence Community
Library
Providence Community Library provides library services to Providence residents for the benefit of the entire community. PCL’s nine neighborhood libraries serve thousands
of families in the Providence area, many of whom have limited or no access to books, computers, and the Internet. Over 24,000 Providence students rely on the resources
available at PCL locations to fulfill their summer reading lists, practice critical academic concepts, and to further develop necessary reading skills. PCL seeks to narrow
the academic divide by providing students and their families with the appropriate materials to learn, read, and succeed.
Reach Out and Read Rhode
Island
Reach Out and Read Rhode Island (RORRI) prepares young children to succeed in school by partnering with doctors to prescribe books and encourage families to read
together.
63
Social Initiatives
GTECH chooses projects and events that have an
impact on critical areas of daily life, and initiatives
that support the basic needs of the population
such as healthcare, education, and
assistance to lower-income families.
The resources collected from gaming
fund opportunities to create new
partnerships between the public, private,
and service sectors. The investments are
made in order to compensate in areas
where public spending is inadequate
or in cases where an individual is unable
to pay for certain services. The rationale
behind which projects are selected is based on
initiatives which benefit the general public and local
institutions (hospitals, schools, municipalities).
COMPANY VOLUNTEER PROGRAMS
GTECH encourages its employees to identify schools, charities, and civic
organizations that may benefit from the Company’s Reach Out! program. The Reach
Out! program offers employees a wide variety of opportunities to volunteer in their
local communities. Some of the many organizations that benefited from employee
initiatives in 2014 include the Giving Hope Center, the Arizona Pound Pups, Inc.,
Bikers Against Child Abuse, Ocean Community YMCA, the Hindu Association of Rhode
Island, the Hollywood Youth Athletic Association, and Heart Havens, Inc.
Through GTECH’s Reach Out! program, staff can also participate in the After School
Advantage initiative as well as the following Company volunteer programs:
Day Off for Volunteerism: This program offers employees one paid day off annually to
perform community service at a non-profit organization of their choice. In 2014, 159
employees volunteered 1,170 hours to diverse charitable organizations reflecting
those causes that are most important to them.
Dollars for Doers: In this program, GTECH donates $250 to any non-profit organization
an employee has volunteered at least 25 hours with in a year.
Matching Gifts: This program encourages employees to make monetary donations
to any U.S.-based college or university by matching the gift, dollar-for-dollar, up to
$500 annually.
Team Grants: This program encourages teams of 10 or more employees to volunteer
for a non-profit event of their choice. In return, GTECH will contribute $1,000 to that
organization. The Reach Out! Team Grants provide community organizations with
financial support while recognizing and assisting employee volunteer teams in their
efforts to participate in various charitable events.
64
The strict guidelines for sponsoring initiatives
strengthen the Company’s relationship with the
local area, where new community opportunities
can be developed thanks to the proceeds from
gaming.
GTECH invests in programs that meet the various
needs of disadvantaged families, being committed
to services and programs that empower families
to achieve economic self-sufficiency, provide
quality childcare and elder care for families with
limited income, and assist families affected by
drug addiction and child abuse.
Each organization that GTECH supports has
common characteristics including volunteer
services to the local population, and strong
diverse support to the local community, as
well as being results-oriented.
SOCIAL INITIATIVES
Associations/Events
Social Initiative
AIBI – Pan di Zucchero
The Association Pan di Zucchero in the city of Messina (Italy) is located in an area of poverty that has grown in the last years by the increase of incoming
immigrants and unaccompanied minors. The pilot project is called “Progetto famiglie,” and aims at creating a warm and welcoming environment for these
children.
All Hands Volunteers
All Hands Volunteers is a non-profit organization that seeks to provide immediate, effective, and sustainable support to communities in need by
harnessing the energy and commitment of dedicated volunteers around the world.
Big Brothers Big Sisters of the Ocean State
Big Brothers Big Sisters of the Ocean State provides children facing adversity with strong and enduring, professionally supported, one-on-one
relationships that improve their lives.
Crossroads Rhode Island
Helps homeless or at-risk individuals and families secure stable homes, by providing services including housing, basic needs, shelter, case management,
education, and employment services.
Day One
Day One provides services to victims of sexual assault domestic violence, and other violent crimes. It also educates the public throughout Rhode Island
on these issues.
Elizabeth Buffum Chace Center
Elizabeth Buffum Chace Center serves individuals and families affected by abuse.
Family Services of Rhode Island
Family Services of Rhode Island seeks to build social service partnerships that address the unmet needs of individuals, families, and the community,
helping people live independently and responsibly.
International Foundation for Electoral
Systems (IFES)
The International Foundation for Electoral Systems (IFES) supports citizens’ rights to participate in free and fair elections. Its independent expertise
strengthens electoral systems and builds local capacity to deliver sustainable solutions.
Lazio Wheelchair Basketball
The Lazio Wheelchair Basketball Team in the S.S. Lazio Sports Center has been sponsored by Lottomatica since 2007. Thanks to the recruitment of young
players throughout Lazio, the team has attained remarkable results.
RI Community Food Bank
The Rhode Island Community Food Bank works with the community and within the community to end hunger in Rhode Island by providing food to people
in need.
Phoenix House of New England
Phoenix House is committed to protecting and supporting individuals, families, and communities affected by substance abuse and dependency.
Sant’Egidio Community - Experimental
workshop for disabled artists
The project organizes experimental workshops where disabled artists can study and receive training. Two art exhibits showing the artwork were held at
Santa Maria della Pietà and the MAXXI Museum in Rome from November 2014 to April 2015.
Southside Community Land Trust
Southside Community Land Trust’s comprehensive urban agriculture programs empower garden growers of all ages, including children, youth, and adults
with the knowledge, skills and facilitative support to harvest high yields of food from small spaces.
Spirito di Stella- Sailing Campus
Sailing Campus is a specific program within the amateur competitive sailing world for people with motor disabilities. The program organizes an Open Day
and a 4-day course including lessons in the water with professional instructors.
United Way of Rhode Island
United Way of Rhode Island seeks to improve lives and build communities by engaging and mobilizing collective action.
Young Voices
Young Voices is a Rhode Island-based non-profit organization that transforms urban youth into advocates, who partner with Rhode Island’s major leaders
to create systemic reform and policy change that improve the community.
THE SANT’EGIDIO COMMUNITY ART LABORATORIES
FOR DISABLED ARTISTS
“IO È UN ALTRO” is a multidisciplinary art project sponsored by the Italian-Brazilian artist
César Meneghetti. The project first launched in March 2010, and aims to delve into the
boundary between mental disabilities and normalcy. Disabled artists are offered experimental
laboratories to study and learn new artistic techniques, as well as new communication
methods, keeping in mind the different levels of art study and not taking into account the
physical and mental condition of the participants. In November 2014 it was held at art show
“NOI DIAMO [+] SENSO”, at the former mental institution, Santa Maria della Pietà in Rome,
which celebrated its 100th anniversary in 2014. The location for the art show was chosen
for its symbolic value. The three artists from the Ostia, Tor Bella Monaca, and Trastevere
Laboratories spent significant amounts of time in similar institutions.
Since 2008, Lottomatica and the Sant’Egidio Community have followed the growth and
development of this project, demonstrating how art is a means of integration and expression for
people with mental disabilities.
65
GTECH BELGRADE: SUPPORTING SERBIAN FLOOD VICTIMS
GTECH ASSISTS CHILE
EARTHQUAKE AND FIRE
VICTIMS
Chile’s northern coast was
struck by an 8.2 magnitude
earthquake in April, which led
to subsequent aftershocks,
landslides, and a tsunami.
The result was widespread
property damage and power
outages. Less than two weeks
later, an uncontrollable
forest fire spread into the
city of Valparaiso, wreaking
havoc on the area, killing
12 people, and destroying
2,000 homes.
In the wake of Chile’s
devastating natural disasters,
GTECH donated to the
TECHO organization, which
is a non-profit organization
in Latin America and the
Caribbean which envisions
a poverty-free society in
which all people have equal
opportunities and are able
to exercise their rights to the
fullest degree. TECHO will
be using GTECH’s donation
to build emergency shelters
throughout the devastated
areas. In addition, GTECH
employees made individual
contributions by donating
money and water, using their
homes to collect needed
items for local shelters, and
organizing fundraisers.
66
The 2014 flooding of multiple rivers left water surging through the countries of BosniaHerzegovina, Croatia, and Serbia. This was the worst flood experienced by the Balkans
in over 100 years. The suburbs of Serbian capital city of Belgrade, Obrenovac and
Lazarevac, were left particularly devastated. The floods caused multiple landslides
and resulted in the evacuation of thousands of residents. While all 190 employees at
GTECH’s office in Belgrade were safe, they were deeply concerned about family, friends,
and residents of the heavily affected in the Belgrade suburbs and nearby towns. This
prompted GTECH Serbia, to immediately organize contributions for the Red Cross.
GTECH Costa Rica supported local child care
centers that help boys and girls through preventive
nutrition services. These services promote growth
and development, and daily care and protection
for maternal and children’s groups who suffer from
deteriorated socio-economic backgrounds and, in
some cases, with coexisting malnutrition levels or
developmental problems.
GTECH Chile worked with the Las Creches
Foundation and Maruri Foundation for
their meaningful Christmas events. Las
Creches Foundation provides protection and
comprehensive training to 22 girls, ages 5 to
18. Due to serious violations of their rights,
girls at Las Creches are under the protection of
family courts. Las Creches ensures that the girls
are provided with health care, food, clothing,
education, recreation, and the appropriate care
and attention for their personal development
in a secure environment. Maruri Foundation
also provides protection and comprehensive
training to boys, ages 5 to 20.
GTECH Germany spread their goodwill efforts
across three worthwhile causes – children and
families in need. The first initiative is in support of
local school children. This effort involved recycling
paper for the local kindergartens which are always
in need of drawing paper. The second initiative
was the Lübbecker Land Tafel, whose mission is to
collect groceries from supermarkets and retailers
and pass them on to families in need for a muchreduced cost.
GTECH India employees participated in a 7k
run to support NGOs India, a conglomerate of
non-profit organizations committed to a better
society. The primary objective of the run was to
raise funds for these charitable organizations,
but the run also brought awareness to the need
for a healthy, physically fit society. GTECH India
also held a clothing drive at its Hyderabad site in
September. Items collected were donated to a
charitable organization for distribution to the poor.
In addition, a monetary donation was made to the
Chief Minister’s Relief Fund to help flood victims.
Also in 2014, staffers of GTECH Trinidad & Tobago
donated some needed household items to Raffa
House for the holiday season. Raffa’s Home for
Girls provides long-term care for disadvantaged
children between the ages of 5 and 18, who
have suffered abuse, neglect, abandonment,
homelessness, or are in need of supervised care.
CANSTRUCTION 2014: GTECH FIGHTS HUNGER
In March 2014, GTECH Rhode Island employees participated in CANstruction, a unique, national charitable competition that puts creativity and
collaboration to the test while increasing awareness about hunger. Together, architects, engineers, and sponsors pooled their innovative ideas to
create giant structures out of canned goods that are symbolic of the fight to end hunger. CANstruction donated 100 percent of its proceeds to the
Rhode Island Community Food Bank, translating into thousands of pounds of canned goods for individuals in need.
Employees from GTECH teamed up with Durkee, Brown, Viveiros & Werenfels Architects; Herrick & White Architectural Woodworkers; and Odeh
Engineers to construct a 145,972 cubic foot, 2.83 ton sculpture entitled “Shedding Light on Hunger.”
HEALTH CARE INITIATIVES
Associations/Institutions
Health care initiatives
ALS (Rhode Island Chapter)
The Rhode Island Chapter was founded in 1990 to serve the needs of those living with Amyotrophic Lateral Sclerosis (ALS) and their caregivers. The ALS Association is the only national not-for-profit health organization dedicated solely to the fight against ALS. The organization covers all the bases - research, patient
and community services, public education, and advocacy - in providing help and hope to those facing the disease.
The American Heart Association
The American Heart Association is the nation’s oldest, largest voluntary organization devoted to fighting cardiovascular diseases and stroke. GTECH funds
innovative research, fights for stronger public health policies, and provides lifesaving tools and information to save and improve lives.
The American Lung Association
The American Lung Association is the leading organization working to save lives by improving lung health and preventing lung disease through Education,
Advocacy, and Research.
Ant Foundation
Ant Foundation, offers free care and assistance to cancer patients with the aid of the ODO-ANT Oncology Hospital in Naples.
Gabrielle Dinsmore Heart & Hope Fund
The mission of the Gabrielle Dinsmore Heart & Hope Fund provides educational, emotional, recreational, and financial support to children and families living in
Rhode Island, Connecticut, and Massachusetts impacted by congenital heart disease, heart defects and severe feeding issues.
Hasbro Children’s Hospital
GTECH supports the nationally-recognized pediatric hospital serving Rhode Island, southeastern Massachusetts, and New England.
Juvenile Diabetes Research Foundation
Juvenile Diabetes Research Foundation (JDRF) is the leading global organization funding type 1 diabetes (T1D) research. JDRF collaborates with a wide spectrum
of partners and is the only organization with the scientific resources, policy influence, and a working plan to better treat, prevent, and eventually cure T1D.
The Tomorrow Fund
The Tomorrow Fund provides daily financial and emotional support to children with cancer and their families.
Women & Infants (Infusion Center)
The new Infusion Center located at Women & Infants Hospital will have a direct impact on women and families and ensure an optimal patient experience,
allowing for state-of-the-art medicine while ensuring the comfort and dignity of its patients.
SINCE 2000, LOTTOMATICA HAS SPONSORED THE TELETHON RESEARCH PROJECTS
THROUGH THE AAMS (THE ITALIAN ADMINISTRATION OF STATE LOTTERIES).
IN 2014, DONATIONS WERE ONCE AGAIN COLLECTED THROUGH THE LOTTO
GAME NETWORK, ALONGSIDE THE TRADITIONAL COLLECTION ON THE BETTER
AND TOTOSÌ NETWORK, FOR THE PROJECT “GAMING HEADS FOR RESEARCH”
67
SPORTS INITIATIVES
Associations/events
Sports initiatives
Gioco del Lotto Sport Village
As in previous years, together with CSI (Italian Sport Center) GTECH has sponsored the pavilion “Il Gioco del Lotto Sport Village” during the 2014 Rimini Meeting, held
August 24-30. The pavilion hosted around 4,000 visitors a day, 80 volunteers, 15 tournaments, exhibitions, and free tryouts.
Special Olympics Rhode Island
Special Olympics Rhode Island provides more than 1,600 year-round sports training and athletic competitions for more than 3,000 athletes and hosting over 40 local,
regional, and statewide tournaments and competitions each year in 25 official and demonstration sports. Special Olympics Rhode Island’s innovative programs also
include the Unified Sports Program for athletes with and without intellectual disabilities, the Motor Activities Training Program for athletes with profound disabilities,
Young Athletes Program, Healthy Athletes Program and the Global Messenger Program for athletes who serve as spokespeople for Special Olympics.
Summer Olympics USA
GTECH also sponsored the 2014 Summer Olympics USA games as a silver supporter, which took place in New Jersey from June 14-21. Nearly 3,500 athletes competed,
which included 60 athletes who represented Rhode Island.
Volleyrò
The Volleyrò initiative includes all facets of volleyball, from micro-volley to competitive volleyball. The initiative aims at promoting this sport throughout the region and
in the city of Rome, involving more than 1,500 athletes ranging from 6 to 18 years old.
Women’s Volleyball World
Championship
Italy hosted the 17th annual Women’s Volleyball World Championship from September 23 to October 12, with matches in Bari, Milan, Modena, Rome, Trieste, and Verona.
More than 141 teams participated in the qualifications. The match in Rome was played in the Palalottomatica arena, seating more than 11,000 spectators.
THE ROME MARATHON
The Rome Marathon is one of the most important marathons in the world.
Celebrating friendship and sportsmanship, it has reached its 20th event with
more than 19,000 participants from more than 123 countries. The Gioco del
Lotto is a proud sponsor of this extraordinary event. The Rome Marathon
reinforces the well-being of the community and promotes cultural values
and ideals. The marathon is open to disabled athletes as well. The most
popular category is for athletes using a hand bike. Alex Zanardi won this
category in 2014 for the fourth time in a row.
Sports initiatives
GTECH is committed to sustaining sport activities,
especially those involving young people. Sports are
seen as an emblematic activity that encourages
positive values, such as healthy emulation,
respect for the opponent, team spirit, tolerance,
and loyalty.
68
8,809
8,800
8,750
8,700
8,650
8,600
8,500
CANADA
ON USING CONFIDENTIAL INFORMATION, AND
PRACTICES RELATIVE TO IMPROPER PAYMENTS
POLAND
AUSTRIA
UNITED KINGDOM
SERBIA
COLOMBIA
MEXICO
AND MONEY LAUNDERING ARE PRINCIPLES OF
INDIA
THE CODE OF CONDUCT WHICH EVERY EMPLOYEE
SPAIN
IS REQUIRED TO KNOW AND SIGN
14
20
GTECH PERSONNEL AROUND THE WORLD
ITALY
DILIGENCE, RESPECT FOR COMPETITION, BAN
13
8,450
UNITED STATES
COMPANY RULES CONCERNING LOYALTY,
8,592
8,581
8,550
20
GTECH complies with the recommendations of
the Tripartite Declaration of Principles concerning
Multinational Enterprises (Geneva 2000) and
subscribes to the guidelines expressed by the
International Labour Office (ILO). More specifically,
the Company is committed to promoting
employment growth, contract stability, equal
opportunity, protecting and improving work
conditions in terms of health and safety, freedom
of trade union association, collective bargaining,
and professional consultation. These guidelines are
followed in all the countries where GTECH operates.
GTECH’s employment rate has increased 2.5%
in 2014, to 8,809 workers with permanent jobs
in 51 countries on five continents. The largest
percentage of employees are based in the U.S.
(44.3% employment), Italy (19.2%), and Canada
(6.9%). The overall employment for 2014,
including fixed-term contracts, consultants,
outsourced vendors, and interim workers, reached
10,672 people.
8,850
12
General profile
THE CREATION OF NEW JOBS IN THE COMPANY (TOTAL PERMANENT EMPLOYEES)
20
PERSONNEL
CHILE
JAMAICA
GIBRALTAR
COSTA RICA
CZECH REPUBLIC
GERMANY
MONACO
OTHERS
3.900
1.692
611
371
326
238
209
168
118
110
109
92
66
65
58
52
50
50
524
69
Health and Safety at work
It is the Company’s policy to provide a safe work
environment, free from health and safety hazards.
In the case of a workplace-related injury or
illness, the Company is committed to providing
appropriate medical attention for the employee. If
the injury or illness is work-related, the Company
will comply with all jurisdictional laws regarding
reporting requirements, and all applicable
requirements for providing insurance to reimburse
employees for lost wages and medical expenses.
Activities promoting good health vary across
GTECH jurisdictions according to the local and
national variances in public health care systems.
The Company has developed health and safety
programs for workers in the following countries:
U.S., Italy, Canada, Great Britain, Spain, Turkey,
Poland, Ireland, Sweden, and Finland.
Specific trade union agreements are also
applicable in Italy, Sweden, and Finland. In
Italy, all employees are represented by the
special health and safety in the work place
board. The Company undergoes specific
training in accordance with law no. 123/2007
“measures for the safeguard of health and
safety in the workplace”.
In the U.S., where health care
programs are provided through
private insurance companies,
GTECH offers additional
programs to its employees
and their family members:
• Wellness Incentives: GTECH’s medical plan
includes wellness objectives that must be
achieved in order to receive a wellness
contribution to the employee’s Health Savings
Account.
• Wellness Calendar: each month focuses on a
different health and wellness initiative, including
a dedicated month for nutrition and heart health.
• Employee Mailings: targeted mailings are sent
to employees and their spouses promoting
GTECH wellness programs.
• Employee Assistance Program: GTECH offers a
comprehensive work-life balance program that
is available to all employees.
• Newsletters: include a Benefits monthly
newsletter emailed to employees and
newsletters from American Cancer Society and
WELCOA (Wellness Council of America) that
are featured on IntraConnect. Newsletters are
printed and displayed at each location.
• Diabetes Health Plan and Other Targeted
Programs: through GTECH’s medical plan,
there are a number of programs that focus on
preventing diabetes and other chronic diseases.
• Preventive Care: through GTECH’s medical
plan and other forms of communications,
GTECH provides specific information regarding
preventive care procedures and tips for the
whole family.
• Wellness Wednesday: GTECH’s Wellness staff
provides weekly blood pressure screenings,
weigh-ins, and fitness consultations in a private
IN THE U.S., GTECH RECEIVED THE 2014 HEALTHIEST EMPLOYERS IN RHODE ISLAND
WELLNESS AWARD FROM THE PROVIDENCE BUSINESS NEWS AND THE 2014 GOLD
ACHIEVEMENT AWARD FROM THE AMERICAN HEART ASSOCIATION. GTECH POLAND WON
THE TOP EMPLOYER CERTIFICATION FOR THIRD YEAR IN A ROW. IN ITALY, GTECH HAD IN
PLACE AN OCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEM COMPLYING WITH
OHSAS 18001 REQUIREMENTS AND CERTIFIED BY AN EXTERNAL AUDITOR, IN 2014 THE
BOUNDARIES OF THE MANAGEMENT SYSTEM WERE EXTENDED TO TWO SITES IN MILAN
70
setting. GTECH’s Cafes provide nutritious meals
as breakfast and lunch options.
• Healthy Weighs: a 12-week weight loss program
offered to GTECH employees for free, facilitated
by onsite Wellness Staff.
• First Aid Responders: each floor features several
first aid responders whose offices are clearly
marked. These employees are trained in CPR
and have first aid kits.
• Free Flu Vaccinations: each year, GTECH partners
with a third party provider and offers onsite flu
vaccinations at all Rhode Island locations. For
each location outside of Rhode Island, GTECH
partners with Walgreens to provide employees
with a free flu shot.
• Non-Smoking Program: all GTECH employees
covered under our medical plan have access to
a smoking cessation program.
• Shape Up RI program: through GTECH’s
partnership with Shape Up RI, employees
participate in a wellness program focusing on
exercise, nutrition, and diet. Employees are
given access to Shape Up’s social media website
which allows employees to connect and
challenge each other, share information, and
support one another throughout the program.
• Various Running/Walking Programs: GTECH
sponsors various exercise events through
charitable organizations such as the American
Heart Association, American Cancer Society, CVS
Health Downtown 5k, etc.
Internationally, GTECH has multiple offerings of HIV
screenings, maternity-related benefits, training
programs, fitness facilities and memberships, and
other programs that vary by country.
In some countries, the law requires that the
workforce is represented on formal joint
management-worker health and safety
committees. The percentage of workers’
representation can vary from 100%, as in
THE INCREASE OF FEMALE PERSONNEL BY %
Equal Opportunities
31.5
31.4
31.4
31.3
31.3
31.2
31.1
31
30.9
the case in Italy, to approximately 25% in the
U.S., according to the law. In the U.S. there
are a number of site level safety committees
in existence in addition to the Steering
Committee, which is led by the Senior Manager
of Environmental Health & Safety (EHS). The
EHS Steering Committee communicates with
the workforce regarding potential risks & injury
trends, upcoming EHS projects and programs,
awareness campaigns, and initiatives designed
to reduce risk and prevent injuries.
Although the Company strongly promotes health
and safety in the workplace, as evidenced by the
fact that all personnel in Italy are recognized as
“terminalista” (Computer operator), the GTECH
work environment, materials utilized, and activities
carried out in the Company’s facilities are not
considered to be of high risk, nor is there a high
incidence of diseases related to the occupations.
30.9
30.8
It is the Company’s policy to provide equal
employment opportunity for all employees on
the basis of qualifications and merit. The Company
does not discriminate on the basis of race, color,
creed, religion, national origin, age, disability, sex,
sexual preference, sexual identity, marital status,
military status, veteran status or any other legally
protected status in accordance with applicable
local, state, and federal laws.
As a global corporation that values workplace
diversity and respect for all employees, the
Company’s Code of Conduct gives specific
guidelines for the implementation of an effective
non-discrimination policy, as well as a set of
procedures to prevent mobbing and all forms of
harassment.
30.7
20
14
20
13
20
12
30.6
71
In the US, the Company’s policy makes it possible to provide eligible employees time off for an employee’s serious health condition and/or to attend to family
responsibilities. Some employees may be entitled to leave under the Federal or their State Family and Medical Leave Act (FMLA). Employees who are not entitled
to such leave may still be eligible to leave for medical or personal reasons.
The FMLA entitles eligible employees to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance
coverage under the same terms and conditions as if the employee had not taken leave. Eligible employees are entitled to twelve work weeks of leave in a 12-month
period for:
• The birth of a child and to care for the newborn child within one year of birth
• The placement of a child in adoption or foster care, and to care for the newly placed child within one year of placement
• Caring for the employee’s spouse, child, or parent who has a serious health condition
• A serious health condition that makes the employee unable to perform the essential functions of his or her job
• Any qualifying emergency with an employee’s spouse, son, daughter, or parent that is a covered military member on “covered active duty”
• Twenty-six workweeks of leave during a single 12-month period to care for a covered military member with a serious injury or illness if the eligible employee is
the military member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).
Corporate Welfare
GTECH provides different benefits to the Company’s
personnel in compliance with the national laws of
the jurisdiction in which the employee is hired.
Therefore, Company benefits can vary considerably
according to the benefits that are compulsory by
law in a particular jurisdiction and the Company
benefit which may be offered as a supplement
in order to reduce inequalities in benefits across
countries.
Where public benefits are limited, as in the
U.S., the Company’s benefit system prevails.
Contributions to the corporate supplement
investment program can be established
by the employee on a voluntary basis,
taking advantage of the Company’s market
investment program. Where the public
welfare benefit is extended, as in the case
in most EU countries, all personnel receive
compulsory pension plan coverage as defined
by each country. The Company is required to
pay regular contributions established in support
of the public welfare program for retirement,
unemployment compensation, and health care.
Where mixed welfare systems exist, the Company
supplements welfare contributions, sometimes
engaging in collective agreements with trade
unions.
In the U.S., GTECH has a partnership with a
specialized consulting company that provides
career transition services for terminated
employees. These services are part of the
Company’s program for skill management
and lifelong learning designed to support the
continued employability of employees and assist
them in managing career changes..
ACTIVITIES OF ARDIL - THE EMPLOYEE ASSOCIATION IN ITALY
The Association provides various services including: travel and reservation
assistance, ticket purchases for industry, music and cultural events, fitness and
gym memberships, sports clubs, summer camps for members’ children, and
employee tournaments. Agreements are developed with various organizations
including banks, insurance companies, and foreign language schools, and
employee contributions are made by payroll reductions. The Association also
offers carpooling assistance and reduced subscriptions for public transportation.
The “Scolarizzazione” (schooling) initiative allows a fixed contribution to be paid
to all employees with children enrolled in school at a university, as well as to
employees enrolled in a degree course.
GTECH supported the Association with a contribution of €120,000 in 2014.
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Rights of Minorities and Personnel
with Different Abilities
GTECH applies the principle of equal opportunities
for everyone, as stated in the Code of Conduct.
Consequently, no preference is given to hiring local
people or to favoring local managers in career
programs (this information concerns Italy).
It is the Company’s policy to treat all employees with
respect and dignity. The Company recognizes that
an employee’s disability or life-threatening illness
presents extraordinary challenges for the individual,
his or her manager, coworkers, and the Company.
The Company fully complies with all provisions of
the Americans with Disabilities Act (ADA) of 1990,
as amended. Consequently, when dealing with a
situation involving an employee with a disability
or life-threatening illness, managers know that
an employee’s health condition is personal and
confidential, and reasonable precautions must
be taken to protect information regarding an
employee’s physical or health conditions. The
Company makes every effort to find a reasonable
accommodation to allow an employee with a
disability or life-threatening disease to perform
the essential job functions of the position.
Guidance concerning reasonable accommodation
and essential job functions is contained in the ADA.
In 2014, a charge of discrimination was filed
against GTECH. The Company submitted a timely
response to the allegations concerning race, sex,
color, and national origin. It is the Company’s
belief and position that there is no evidence to
support the allegations set forth in this charge of
discrimination.
Training programs
GTECH strongly encourages employee education.
Annually, GTECH Human Resources leads various
processes to facilitate the understanding of
business challenges and the subsequent definition
of organization and department-specific learning
objectives.
GTECH allocates funding (1.5% of payroll) for
employee training in the U.S. Most of this funding
is managed locally to ensure alignment of training
investments to specific business unit/department
needs. Learning courses consist of GTECH-specific
training as well as general skills development,
leadership, management, communications/
interpersonal skills, business process/systems,
safety, and technical skills. Learning formats include
traditional classroom, virtual classroom, and a robust
catalog of self-paced mechanisms (e-Learning,
videos, and simulations) which are available to
all employees on-demand, 24 hours a day, seven
days a week. More than 20 standardized classroom
courses are available, and custom courses are
developed as requested by the business.
Additionally, GTECH has a tuition reimbursement
program in the domestic United States which
allows employees to receive reimbursement for
courses completed at accredited higher education
institutions.
TRAINING COURSES
Project Title1
Description
Leadership Development Programs
•
•
•
•
•
Innovation
Training workshops and operational development/change management activities to
support a culture of innovation.
Next Generation Learning Technologies
Adopting social learning, mobile, and new learning technologies.
Career Development Training Program
1. e-Learning course designed to increase employee and manager awareness regarding
career development
2. Blended learning (online and classroom) instruction for both Managers and
Employees to focus on career planning and development (in planning)
1
Leadership Development Program is for top and emerging leadership in the Company
Executive - Global Leadership Development
Mid-level - Management Development Curriculum
Emerging Leaders- Developing The Leader in You
Women’s Leadership Development programming
Inclusive solely of centrally managed and organized training projects by GTECH Learning Services. It does not include
any initiatives that may be managed by local sites, individual cost centers (departments), or individual employees.
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GTECH defines human rights training as respect in
the workplace training and harassment training for
the purposes of this report. The Company tracks
this training for U.S.-based employees through its
new hire orientation program (one hour in length)
and, as required by law, through e-learning courses
for harassment recognition and prevention in
the State of California. In 2014, there were 513
employees who participated in Human Rights
training.
All GTECH security personnel are trained in the
Company’s policies and procedures regarding
human rights. In addition, all employees, including
security personnel, are required to sign and abide
by the Company’s Code of Conduct which fosters
a culture that includes a safe, secure, and orderly
work environment; equal opportunity, dignity, and
fairness for all individuals; respect for diversity
in all its manifestations; honest and transparent
communication, creativity, and innovation, as well
as employee feedback in the form of suggestions
or complaints. GTECH is committed to its
Corporate Social Responsibility program as well as
to enabling its customers to provide educational,
cultural, charitable, and philanthropic support to
their citizens.
Incentive, Remuneration and Career
Development Plans
This rating, if utilized, assisted the supervisor in
completing the final assessment at the end of the
year.
In 2014, GTECH began implementation of
Success Factors as the new global, integrated
Human Resources Management System. Success
Factors is a cloud-based suite of integrated
applications for administering Goals and
Performance Management, Employee Profile
Management, Recruiting, On-boarding, Learning,
Compensation, and Succession Planning. GTECH is
also streamlining its Human Resources processes
across the Company, including the performance
appraisal process.
In 2014, the Company continued to use the
Appraisal System through the SAP portal.
Work Success Factors (WSFs) were a way for a
supervisor to evaluate an employee’s performance
in terms of the 10 WSF descriptions related to
success on the job. Each year, employees were
graded on a scale of one to five in all of the WSF
categories. The supervisor would complete a midyear appraisal and the employee would complete
a self-assessment. There was also an option to
add Matrix Managers to rate the employee. Matrix
Managers are comprised of other managers or
employees that the employee worked with.
SUCCESS FACTORS
In the U.S., employees have been periodically evaluated on 10 work success factors (WSF):
Adaptability (5.3%): Flexible, resourceful, ability to multi-task, and deal effectively with changing priorities;
Communication (5.4%): Ability to speak and write clearly, persuasively and concisely. Listens well and responds to requests in a
timely manner;
Innovation (5.3%): Creative, catalyst for change, solution oriented. Seeks new and innovative ways to solve problems and address
challenges;
Interpersonal relations (5.3%): Communicates effectively, listens well, works collaboratively, shares knowledge, accepts and acts on
constructive feedback;
Job skills (5.4%): Competent, knowledgeable, proficient in assigned job responsibility, resourceful;
Judgement (5.3%): Critical thinker, exhibits sound business acumen, evaluates risk and consequences before making a decision;
Leadership (5.3%): Actively supports Company vision and mission. Inspires and energizes other to achieve results. Demonstrates
courage and conviction;
Management (5.3%): Creates a positive work environment, encourages teamwork, develops and coaches employees, empowers
others to succeed;
Customer focus (5.3%): Responsive, resourceful, prioritizes customer concerns, anticipates needs of customer, timely, courteous and
committed;
Work results (52.0%): Consistently delivers what is required when required.
74
PERCENTAGE OF THE PERSONNEL RECEIVING FORMAL PERFORMANCE APPRAISAL BY GENDER
U.S. and International
Italy
2014
2013
2014
2013
Female
94.3
96.7
88.2
88.0
Male
95.1
97.0
95.7
92.0
Total
94.9
96.9
92.9
90.6
Internal Communication
GTECH uses a variety of channels to effectively communicate with personnel at all levels. The most
important internal communication channels are newsletters and the intranet:
• News At Your Fingertips: A monthly electronic, newsletter that contains a variety of newsworthy
stories compiled by Corporate Communications with input from GTECH sites around the world.
• ulearn is an electronic quarterly, internal newsletter distributed by our Learning Services group that
highlights upcoming training sessions and books/articles to read.
GTECH’s internal internet, IntraConnect, is a secure network that contains important employee information
and includes links to the following:
• ushare: A forum that is similar to YouTube which is only visible to employees who have access to
GTECH’s IntraConnect. Employees may post videos or photos and tag them according to content and
subject.
• uspace: This site is designed to be all about you (the employee) and may be customized to include links
about important business applications.
• Ask the Senior Staff: Employees may send questions, comments, or concerns directly to the Senior
Staff via anonymous email (they may also sign their name). The answers appear in News At Your
Fingertips.
• Ask the Board of Directors: If you have a question or concern for the Company’s Board of Directors,
you can complete a form to communicate with the Company’s Board of Directors. All submissions to this
mailbox are anonymous.
• Yammer: Newly implemented in 2014, this site is similar to Facebook for all GTECH employees who have
access to any of GTECH’s Intranets. Employees may follow other employees, join specific groups, post
comments and status updates, and join discussion topics.
Regular meetings are an opportunity to exchange face to face information. There are three main types of
meetings:
• The Annual Leadership Meeting is a two-day conference for the Company’s Directors and above to hear
updates on the business segments and other company news.
• The Company-Wide Meetings are general meetings during which the CEO discusses Company’s goals for
the year and gives an update on the performance of the business.
• Organizational Meetings are off-site meetings held by the Senior Vice President for his/her department.
GTECH Traction Digest is an internal Wiki that includes news stories from around the world related to
GTECH’s business. To feed and update this site, a paid search engine is used as well as Google, industry trade
publications, and local publications as needed.
GTECH Integrity Line is a toll-free number to anonymously report concerns or suspected violations
relating to the Company.
GTECH conducts a global engagement survey every 18 months. The last survey conducted was in 2011.
Due to the Company’s reorganizational changes that took place in 2013 and the 2014, the next survey will
be launched in 2015.
Industrial Relations
In line with Principle Three of the United Nations’
Global Compact, which has been integrated
into the Code of Conduct, GTECH recognizes
the value of using dialogue and negotiation to
achieve positive outcomes. The Company abides
by non-discriminatory policies and procedures
with respect to trade union organization, union
membership and activities, and provides workers’
representatives with appropriate facilities to
assist in the development of effective collective
agreements.
Consequently, GTECH is involved in collective
bargaining in different countries. Collective
agreements cover 100% of personnel in Austria,
China, Finland, Italy, Spain, and Sweden and 41%
in Argentina.
GTECH does not have a designated period
for notice to employees, and their elected
representatives, of significant operational changes
that could substantially affect personnel. The
notification period is affected by country laws and
is not usually specified in collective agreements in
those locations where such agreements apply. The
minimum notification time varies from a standard
30 days in China, to a variable period depending on
the employee’s tenure in Finland, to a person’s age
in Sweden. In Austria, employees are to receive
a seven day notice of termination and the work
council must be informed. For any other changes,
there are no general time lines.
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SUPPLIERS
The quality of the corporate supply chain has
gained importance in corporate social responsibility
policies and practices as public opinion has been
increasingly concerned about its environmental,
social, economic, and ethical implications.
These concerns are addressed not only by the
direct behavior of a company, but also by the
management of a company’s entire supply chain.
GTECH’s Code of Conduct sets the parameters
for acceptable employee behavior and serves as
a guide to the moral, legal, and ethical standards
expected in doing business with the Company. The
Code, which is translated into eight languages,
sets the standard for integrity and excellence in
employee behavior and business operations. It
includes the screening, selection, and ongoing
management of the Company’s suppliers.
Any outside activities or relationships that
may involve a conflict of interest or even the
appearance of a conflict of interest must first be
approved by management and then disclosed
to the Chief Compliance Officer or his designee.
According to the Code of Conduct, GTECH
employees, representatives, and consultants
GEOGRAPHIC DISTRIBUTION OF THE SUPPLIERS IN 2014 (%)
17%
OTHER COUNTRIES
43%
US
40%
ITALY
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are not allowed to participate in, claim, or
receive any benefit directly or indirectly from
any lottery game in any jurisdiction where
the Company provides services or products.
It is the Company’s policy to discourage the
receipt or giving of gifts, directly or indirectly,
by employees to individuals who do business or
are seeking to do business with the Company.
In 2014, GTECH incurred costs for production of €
1,349 billion from 7,354 suppliers located in many
countries, but specifically in the U.S. and Italy.
GEOGRAPHICAL SPEND IN 2014 (€/000)
342,386
ITALY
161,023
OTHER COUNTRIES
530,971
US
Selection and evaluation criteria of
the suppliers
The quality of the supply chain has become
increasingly important in social and environmental
evaluations. GTECH customers are often judged by
the highest standards of ethical conduct, and in
turn, holds the Company to these same standards.
GTECH has a good reputation in its community and
industry largely due to its consistent commitment
to quality, honesty, integrity, and dedication to its
products and activities. Consequently the most
important suppliers to GTECH are expected to
ascribe to those same high standards.
GTECH looks for suppliers to meet criteria of quality
(ISO 9001 and 14001 certifications preferred),
cost (competitive pricing relative to other bids),
delivery (sufficient size of the organization to
meet GTECH’s needs and financial stability), and
alignment with its corporate philosophy about
corporate social responsibility.
The Company requires all suppliers to meet and
provide compliance certificates with the European
Union Restriction on Hazardous Substances
declaration of July 2006 (RoHS). GTECH does
not discriminate on any basis of race, color,
belief, religion, age, ethnic origin, disability,
or any other basis. The Company’s policy
complies with applicable
statutory and regulatory
provisions.
GTECH utilizes a rigorous
review of vendors
consisting
of
cross-functional
teams including
quality, purchasing,
finance, technology,
and legal. The
focus of the due
diligence process is to partner with vendors who
provide the best technical solution, are financially
able to support long term customer contract
requirements, and support contract terms which
maximize GTECH’s ability to support its global
customer base.
Corporate social responsibility standards can be
a consideration in the formal selection of and
contract engagement with suppliers. For example,
SPIELO requires not only high quality standards
and immediate information of any potential failure
or defects in products and services, but also of any
actions, warnings, sanctions, or denials that the
supplier receives from any regulatory authority.
GTECH does not knowingly work with vendors
that use forced, or other compulsory labor in the
manufacturing of products. This includes labor
that is required as a means of political coercion, or
as punishment for holding, or peacefully
expressing, political views. GTECH
does not knowingly use
vendors who practice corporal punishment or
other forms of mental or physical coercion or that
hire child labor.
Moreover, GTECH asks its vendors to share ethical
concerns about environmental protection, respect
of human rights, non-discrimination practices, and
the workers’ right to fair wages.
The adherence to these principles and the
compliance to these standards are applied in
selecting vendors.
In 2014, 630 suppliers in Italy were registered to
the portal Vendor Management Solve. Of that 630,
9 are certified SA 8000 and 143 have declared to
follow this standard.
Environmental requirements for
suppliers in Italy
In conforming to the corporate energy policy
adopted in Italy, GTECH notifies the suppliers of its
energy policy, requires declarations on the energy
efficiency of the products to be purchased, and
involves the Energy Manager for the assessment
of the documentation presented.
77