Digital Markedsplas fra Norsk Rikstoto

PRESENTATION OF NORSK RIKSTOTO
CEO Harald Dørum
Sales and Marketing director Haakon T. Smerud
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The legal platform of
gaming in Norway
• All sorts of gaming/ betting are illegal
• There are a few exeptions:
• Betting related to horse racing
• Sportsbetting, lotteries and bingo
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The legal platform of
Norwegian Horseracing Sport

The Totalisator Act, July 1st 1927

the basis for Organizing of the Sport
and the Gaming, and the Licensing

The Foundations Act, May 23rd 1980

Totalizator Gaming Regulations

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Regulations by “Odeltingsprop. nr.10
1995/96”
Guidelines on Marketing of Gaming
Gaming Commission
(Lotteritilsynet)
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Ministry of
Agriculture and Food

Decide takeout rate on all betting products

Approve betting rules

Approve new distribution channels
(e.g. WWW, mobile phone,a.o.)


Formal Regulator
Approves the commingling opportunities
in Norway
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Norsk Rikstoto is a Foundation

Founded 1982 by the
Norwegian Jockey Club (NJ) and the Norwegian
Trotting Association (DNT)

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Objective (by The Totalizator Act of 1927)

operate all totalizator gaming

control the economy of the sport
Support breeding of horses
and the equestrian sport
in Norway
Financing R&D activities
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The Horse Industry in Norway
- devided organization
Commercial
Organization
(the Sport)
Norwegian
Trotting
Association
(DNT)
Rikstoto
Norwegian
Jockey Club
(NJ)
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11 tracks
1 track
The Sport´s Organizations in Norway
Norwegian Trotting Association
 Established 1875
 A members organization:
13 regions and 179 clubs, 17.000
members
 Objective: To develop Norwegian
trotting and breading in a sound
manner
 Headquarters at Bjerke, Oslo
Norwegian Jockey Club
 Established 1932
 A members organization
 Objective: Organize all activity
related to breeding of
Thoroughbreds
 Supports the breeding of
thoroughbreds in Norway
 Headquarters at Øvrevoll, Oslo
Aim is to support and develop the horse breeding in Norway as an industry
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The Horse related Industry
– more than sport & gaming
Trotting and Gallop
Tourism, therapy
and recreation
Farming
Gaming and
administration
Riding sport
Breeding
Goods & services
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Rikstoto – the “financial engine”
of the industry
• Industry´s turnover is approx. €0,6 billion
TRACKS
- Tote is approx. € 0,5 billion
5
• Represents 4 000 man-years
- With secondary effects 10 000 man-years
• 10 horses makes a job!
• Norsk Rikstoto pays € 17millions in taxes
• The horse organizations counts >70 000 members
6
• Important employment factor
9
4
12
10
2 7
3
1
8
11
• Even more people are associated in hobby activities
• Important for teenagers contact with animals
• Important for the veterinary industry
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Market share – Norwegian Gaming Market
100 %
20
22
10
10
12
12
90 %
80 %
70 %
60 %
30
8
8
32
40
41
43
46
43
10
6
6
10
12
6
6
6
4
6
24
6
22
6
20
22
32
20
25
27
9
10
16
15
32
40 %
30 %
51
38
56
60
58
Utenlandsk WWW
Andre spill
38
50 %
20 %
Total i milliarder
(inkl. www)
Rikstoto
Norsk Tipping (inkl.
Extra)
Automater
53
42
40
28
10 %
0%
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
Kilde: Lotteri- og stiftelsestilsynet
Foreløpige tall 2008
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One agent per 3.500 citizen
– and we are still expanding
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Norway is wide
So we need wide
distribution
Every place there
is a small village
Agents
WWW
Governmental License System
Ministry of Agriculture
and Food
Rikstoto
12 Totalizator Tracks
(operating companies)
License
Licence &
Regulations
Rikstoto is responsible
for all commercial activities

License for all Totalizator gaming in Norway

Overall responsibility for all Totalizator gaming

Rikstoto can decide

number of Totalizator Race Meetings

distribute Meetings on Tracks

Product Mix (bets)

Sales Channels (distribution)

total yearly Budget of the Sport

distribution of Funding in the Sport
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The Tracks organize the
daily Sport

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The Sport owns & runs
11 Trotting Tracks and
1 Gallop Track
The Tracks are organized as Limited
companies (Ltd) and independent of
Norsk Rikstoto
They have their own elected
Board of Directors
They organize the racing, promote the
sport and promote betting (sales) in
their region
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The “Norwegian Economic Model”
Basic philosophy: All income is equally important!
xx
TRACKS

5

Every track “owns” a Region
Provision of all sales in their Region:



On- and Off-track
everybody sell on all Races on all Tracks
independent of which Track is Racing
Rikstoto
6
9
4
12
10
2 7
3
1
8
11
Track
Track
Track
Agent
Agent
Agent
Agent
Agent
Agent
Agent
Agent
Agent
Agent
Agent
Agent
Agent
Agent
Agent
REGION
REGION
REGION
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12
The “Norwegian Economic Model”
Optimize the financial support to the sport !
xx
TRACKS

5
Provision of all sales to the tracks are divided in:

Price money, dependent on type of race day

Financial support to operating cost of the race days

Financial support to major investments on the
tracks

Incentive program to support better sales in the
region
Rikstoto
6
9
4
12
10
2 7
3
1
8
11
Track
Track
Track
Agent
Agent
Agent
Agent
price
Agent
Agent
Agent
Agent
operating
Agent
Agent
Agent
Agent
money
REGION
costs
REGION
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Incentives
REGION
12
Every Track has an
“Operating agreement” with Rikstoto
The Purpose of this Agreement is to
 Grant the Track right to run Totalizator Racing
 Regulate all the Track´s Totalizator Racing & Planning
 Regulate the Track´s Gaming Marketing in the Region
 Regulate the Track´s Economic Planning, Budgeting and
Control
 Regulate other business between Rikstoto and the Track

e.g. IT Systems, Price money levels, …
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What do we gain by this ?
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Predictable conditions for owners and
breeders
Common Brand building
Common Graphical profile
Scale of Economy advantages
Common Sales Objectives
Uniform National Sales campaigns
More predictable and less
complicated Budgeting
Common Sponsor Strategy
=> National sponsor contracts
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Vision
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Our Marketing consept & ideas
Tor´s kiosk and the main actors
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Norwegian Gaming market
Percentage of the population that played different
games during 2008
•
•
•
•
•
•
•
•
Lotto
Flax
Joker
Viking Lotto
Extra
Tipping
Rikstoto
Oddsen
53 %
40 %
27 %
25 %
19 %
12 %
7%
6%
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Total Gaming Market Development 2008
Mill. Euro
Norsk Tipping
Rikstoto
Extra
Lotteries (Excl. Flax)
Bingo
2008/2007
1 169
451
+ 1%
+ 17 %
118
+ 11 %
60
+/- 0 %
460
+ 32 %
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Our Distribution
Tracks
8%
Commission agents
73 %
Online/Internet
19 %
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Our Distribution
1 300 commission agents
1 000 have a chain connection
300 are independent
Within kiosk segment;
Narvesen is the largest chain with 350 kiosks
The second largest is Mix with 250 kiosks
300 grocery stores are distributors of Rikstoto
75 gas stations
25 ”others”
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Distribution strategy 2009
Goal; 250 new distributors/sales points during 2009
Strategy; develop a closer relationship with major chains
and offer all new distributors/sales points DMP.
Focus (take advantage of) on our strong growth in 2008!
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DMP
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Marketing
Our mass-communication focuses on V75/Lyntoto –
mystery bets
We introduced a new marketing consept in 2008; Tor´s
kiosk – ”everything can happen in Tor´s kiosk”
Main media are; TV, radio, web, newspaper and instore
We produce both strategical and tactical material
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Marketing strategy
Long term; ”wide growth”
2009;
Further development of ”Tor´s kiosk” – our consept
Use a large number of communication channels to ensure
that we reach our wide target group
Maintain a heigh number of ”activity weeks” – approx. 15
Accomplish 2 ”super weeks” with extra investments in
media and a high level of activities throughout the country
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Our consept
Our scene is relevant – it´s a kiosk
Target group; ”The Lotto player”, 50/50 M/F
What do we say? It´s easy, you don´t need any
knowledge, the ”machine” helps you pick out favorites
and outsiders, remember to play before Saturday 15.00
How do we say it? With humour and a in a ”friendly
way”. Strong characters.
Payoff; The game that actually helps you to win
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Our communication
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Our communication results
V75
Lyntoto
2008
+ 9,3 %
+ 16,5 %
2009 (19 w)
+ 2,2 %
+ 11,1 %
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