Points of sales - European Lotteries

No 32 December 2009
EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
Points
of
sales
The Executive Comittee of the
European State Lotteries
and Toto Association
President
Dipl. Ing. Friedrich STICKLER, Deputy General Director
AUSTRIAN LOTTERIES, Austria
1st Vice-President
Mr. Christophe BLANCHARD-DIGNAC,
President – General Director
LA FRANÇAISE DES JEUX, France
2nd Vice-President
Mr Jussi ISOTALO, Executive Vice-President
VEIKKAUS OY, Finland
MEMBERS
Mr Hansjörg HÖLTKEMEIER, Member of the Managing Board
DEUTSCHE KLASSENLOTTERIE BERLIN, Germany
JUDr. Ales HUSAK, Chairman of the Board of Directors and
General Director
SAZKA a.s., Czech Republic
Mr Léon LOSCH, Director
LOTERIE NATIONALE, Luxembourg
Mr Jean-Luc MONER-BANET, General Director
LOTERIE ROMANDE, Switzerland
Mr Dimitris PANAGEAS, Member of the Board of Directors
OPAP Services SA, OPAP SA, Greece
Mr Offer PERI, CEO & General Director
ISRAEL SPORTS BETTING BOARD, Israel
Ms Dianne THOMPSON, CBE, Chief Executive
The National Lottery CAMELOT, United Kingdom
Mr Tjeerd VEENSTRA, Director
De Lotto, Netherlands
27 - 29 January 2010
London / UK
Hosted by
Marketing
Are the 4Ps in balance?
"Are
the 4Ps
in balance?"
This year the Marketing seminar focuses
on the basic foundations of Marketing:
Price, Product, Promotion, Point of
Sales, as it is important to ensure, in
these turbulent and fast-changing times,
that we, in the Lottery industry, dedicate the right resources to each of these
factors in a solid, sound and up-to-date strategy. But, there
is much more to consider than the 4Ps, as the seminar will
demonstrate. Is there more than the 4Ps to include in one’s
strategy? Is it time to stabilize the basics or time to be even
more innovative?
In addition these 4Ps need, however, to be integrated together with a high-level of game integrity, transparency and
strong Corporate Social Responsibility.
Price
Product
Place
Promotion
... the 4Ps... are they in balance in your Marketing Plan and activities
These questions and more will be addressed in the
upcoming joint WLA/EL Marketing seminar to be
held in London Jan 27-29, 2010.
Contents
1. Message from the President
3. Editorial
4. Points of sales
18. The impact of ECJ ruling
in the Liga Portugesa de Futebol case
20. Members’ News
23. Premium Partners
25. Agenda
26. Workshops
You can already register on our Web site www.european-lotteries.org, on which the preliminary program of the seminar
will be posted in due time.
As the previous seminars have been attended at full capacity,
please register early as seats and hotel rooms are limited.
Also, please note that the participants have the possibility,
during their stay, to visit the largest international Casino
and Gaming Exhibitions ICE and ICEi taking place at Earl’s
Court, London from January 26 to 28, 2010.
An excellent opportunity to network
General Secretariat
Bernadette Lobjois
Secretary General
Av. de Béthusy 36
CH-1005 LAUSANNE
Tel. +41 21 311 30 25
Fax +41 21 312 30 11
internet: http://www.european-lotteries.org
E-mail. info@european-lotteries.org
THE MATERIAL, VIEWS, OPINIONS AND COMMENTS EXPRESSED BY THE AUTHORS, THE SPEAKERS AND THE PANELISTS ARE
THEIR OWN AND DO NOT NECESSARILY REPRESENT THE POSITION OF PANORAMA OR EL ASSOCIATION. PANORAMA ACCEPTS NO
LIABILITY FOR THE ACCURACY OF STATEMENTS MADE BY ADVERTISERS. ALL RIGHTS RESERVED. NO PART OF THIS MAGAZINE
MAY BE REPRODUCED WITHOUT WRITTEN PERMISSION FROM EL GENERAL SECRETARIAT.
Editorial
Message from the President
Dear EL Members,
Ladies and Gentlemen,
Dear friends,
2009 has been an eventful year for our association and many of its Members. At the
European level, we have seen very positive
developments. In March, the European
Parliament adopted, by an overwhelming
majority, a resolution on online gambling.
In this so-called Schaldemose report, the
only EU representatives directly elected
by Europe’s citizens once again objected
to the commercialisation of gambling and
recognised that the Member States have
right to regulate and control their gambling markets in accordance with their traditions and cultures.
In the other legislative body of the EU, the
Council, the 27 Member States have built
on the European Parliament’s report, deepening the discussion on important aspects
addressed by it, such as the fight against
the illegal promotion and offer of gambling
and betting services. The discussions in the
Council will continue throughout 2010.
In September, the European Court of Justice ruled that the European Treaty does
not preclude a national monopoly for internet gambling, hereby clarifying the
legal situation which commercial online
gambling operators have wrongly been
contesting for years. After the long deliberations in the bwin/Santa Casa case,
the Court is now proceeding quickly with
the other cases referred to it by national
courts and may come up with a number of
rulings in 2010.
With regard to European and national
gambling policies, much will of course
depend on the political line the new European Commission, which will start its
five-year term in office in early 2010, and
especially the new Internal Market Commissioner will take.
1
The successful year 2009 should motivate
us to even strengthen our efforts next year
when it comes to advocating a sustainable
gaming model from which the entire society benefits, and not only “happy few”.
I would like to thank all EL Members, the
General Secretariat in Lausanne and the
EU Representation in Brussels for the contributions they have made to our association in 2009 and look forward to hopefully
another successful if certainly challenging
new year.
Friedrich STICKLER
EL President
WAVE™– Scientific Games’ latest-generation retail terminal – offers retailers
and lotteries a world of possibilities, including:
Speed-of-service for increased lottery sales
Easy to service and maintain
Intuitive, easy to use touch-screen layout
Sleek, stylish, ergonomic design
Wide array of promotional displays
and signs
Built-in training mode and extensive
help support
Enhanced communication to retailers
and players
©2009 Scientific Games Corporation
Editorial
Retrospective 2009!
2009 has been an interesting and
successful vintage!
EL got off to a good start in January 2009
already, when more than 100 participants
met in London for the joint EL-WLA seminar on marketing. The other seminars followed one another and success was ever
present.
The highlight was of course the Istanbul
Congress which lived up to our expectations, had an excellent participation-rate
and a very rich content. It was followed
by the General Assembly and the election
of a new Executive Committee which met
twice since, in September and November.
In September, ELU went on its way and
more than 40 participants have spent a
week sharing experiences and know-how.
The seminar on responsible gaming enabled the Lotteries to further familiarise
themselves with the EL Responsible Gaming Standards.
At our next General Assembly in June
2010, we will introduce and honour the
first Lotteries to have officially subscribed
to our standards.
What can we expect from 2010?
In this Panorama you will find the 2010
meeting agenda. As usual, the marketing
seminar will start the season followed by
many other meetings.
The most important ones will of course be:
- The Industry Days in Barcelona
- The General Assembly, also in Barcelona, with the official certification of the
Lotteries acknowledged by the Certification Committee
- In August/September: ELU in Portugal
3
Other meetings for specialists will hold
their attention:
- The Seminar on Public Order which will
be organised at the same time as the Legal Affairs Seminar in Madrid
- The Seminar on Sports Betting which
will be organised together with the WLA
and the AALE in Marrakech, Morocco
- The Seminar on PR/Communication
With two new topics though:
- ELManagement: Broad agenda – total time two and a half days. Casework
based on various topics. Designated for
Directors
- Internet Seminar (legislation, games, licences) jointly with the WLA.
A large choice for various needs!
2009 has not been an easy year for many
Europeans and as the New Year comes
closer, we can only wish all of you that
2010 will be more pleasant and rewarding.
Best wishes to you, your families and colleagues,
erry Christmas and a very Happy
M
New Year 2010!
Bernadette Lobjois
Secretary General
Points of sales
Retail Network: priority for
the Française des Jeux
The Française des Jeux (FDJ) designs
specific commercial merchandise for its
distribution network. This is composed
of independent retail outlets, which are
mainly tobacconists, newsagents and barsbrasseries. The range of FDJ products
they offer varies according to their activity, their business potential and their environment; the level of offers present in the
outlets is on the increase.
The merchandise set up in the points of
sale (POS) enables the FDJ to be present
all along the consumer’s path and answers
several needs: identifying the POS and understanding the offer thanks to the sign
boards, window stickers, poster frames;
taking bets and checking on the terminal,
receipt; publishing information by cash
display and retailer’s printer; presentation
of product offers and related information
on Novéo counters, Espace Joueurs Modulo (gaming corners), change tray displays
and multi-clips; and lastly automatic vending machines.
For the scratch and draw POS, the FDJ has
developed three major products:
- The FDJ Novéo counter has been installed in a major part of the network distributing scratch card and drawing games.
It provides a panoramic view of the scratch
card games and houses the betting terminal. Placed near the cash desk, it captures
the attention of the player flow.
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- Cash display: placed on the mast of the
Novéo counter, this dynamic display solution permits high-reactivity publication of
messages about FDJ offers, POS’s winners
and other more institutional messages.
- The Espace Joueur Modulo (gaming
corner module) completes the presence
of the FDJ in the POS; this self-service installation gives the player easy access to
the entire range of draws and sport betting
games by providing the betting slips and
information on the games (posters showing the results, list of matches, etc.). It is
equipped with wide writing tables and individual accessories (pens, scratchers) and
provides a comfortable gaming space. As it
is adjustable it can be adapted to the different layouts of each POS; its positioning is
also adaptable to suit the type of POS.
In addition, we have had to develop special
equipment in order to install the Rapido
game in the bar zone, by means of ticket
holders, a screen for displaying animated
features, and various signage elements.
For the POS with scratch card games, various specific materials have been developed
for signage and presentation, adapted to
available space and the commercial potential of the POS.
The POS offering sporting bets also sell
other games: draws, scratch cards and/or
Rapido. These POS are identified by specific logos on the windows pointing out the
sport brand; inside, the bettor will find all
the elements concerning this game offer in
the gaming corner. The retailer can provide
the list of matches and the odds via a printer provided by the FDJ or by means of the
betting terminal, depending on the POS.
The counter is designed on the one hand
to ensure the best visibility of the games
available, while remaining attractive, ergonomic and practical for the retailer. It
also enables communications to reach the
POS via the cash display or the temporary
point-of-sale displays set up in different
counter zones.
The cash display is an LCD screen fixed on
the mast of the Novéo counter; it enables
FDJ news to be displayed in real time in
addition to messages concerning public
health, notices about kidnappings, charities, and so on.
The FDJ has around 900 scratch card
game vending machines (380 DAT 8 games
and 510 DAT 16 games). They are set up in
POS with a high traffic flow such as shopping centres or railway stations. However,
some of the DAT 8 games are located in
city centre bar-tobacconist outlets with
a high customer traffic flow. In shopping
centres, the DAT is placed as close as possible to the traffic passing in front of the
POS, to be used outside. Nevertheless, in
order to guarantee a responsible gaming
policy and to respect the laws against selling games to minors, the DAT are systematically placed under the visual control of
the retailer, who can disable the distributor with a remote control if necessary.
In the city centre POS, the DAT are located inside the retail outlets so remote controls are not required (the DAT 8 games in
use for the past 10 years are not equipped
with remotes).
Points of sales
We have measured a significant impact on
the turnover of several kinds of merchandise, in particular:
- The Novéo counter
- The cash display
- The automatic vending machine
The Receipt Checker set up in 2008 in all
of our 24,000 POS in real time enables the
retailers to provide the bettors with a new
service. The material offers the players a
better transparency and increased confidentiality, allowing them to verify personally if they have a winning ticket without
having to submit it. Set up in the gaming
corner, it also reduces jams around the cash
desk and thus helps improve the efficiency
of the POS. Dynamic displays are set up
in the windows, pointing out the jackpot
amounts and game launches, by LCD type
screens, LED displays or e-paper.
With regard to its network activities, the
FDJ communicates non-stop in its POS,
either for recurring events such as the Euromillion, Loto and Keno jackpots, or for
the launching or the relooking of games. In
this case, point-of-sale displays and information are set up.
Promotional operations can be organized
to support a game; generally they are financed by a gaming fund with a gametype mechanism comprising compulsory
purchase and prize draws with lots in kind
such as travel tickets, i-pods, etc.
It should be noted that if the games available on the physical network are generally
launched simultaneously on the Internet,
this channel also provides specific games
and adapted activities which are sometimes the subject of partnerships.
In the retail outlets, publicizing the winners has proved to be an important element in the point-of-sale activities.
For major launches, support operations
of the network are organized with travel
5
tickets as the main prize. The retailers
look forward to these operations; they are
a genuine catalyst in the development and
motivation of the network, which considers these trips to be veritable holidays!
Boasting 37,600 POS, the FDJ proximity
network is the most important in France.
In a difficult economic context, the retailers can count on the support of the company, which is demonstrated notably by a
sustained investment policy. Maintaining
optical networking in the territory by the
presence of proximity POS remains the
pivot of the FDJ’s strategic priorities, as
we strive to offer to the greatest number
the possibility of accessing our products in
all security.
Points of sales
Camelot’s “value of the
Lottery” programme –
a boost for Point of Sale
The UK National Lottery creates around four
million winners a week across its portfolio of
games. At the time of writing, £36 billion has
been paid out in prizes and more than 2,300
millionaires or multi-millionaires have been
created since The National Lottery’s launch
in 1994.
In addition to this, Camelot, which operates
The National Lottery, delivers around £25 million each week for the Good Causes throughout the UK from the sale of lottery products.
To date, The National Lottery has raised over
£23 billion for the Good Causes, while retailers
have earned more than £3.6 billion in commission from selling lottery products.
In the UK, Camelot offers all of its 28.000plus retailers an extensive in-store Point of
Sale (POS) kit, which is free of charge as part
of their retail agreement. This kit includes a
Playstation, digital media screen, Scratchcard
dispenser, in-store communications and external signage.
The Playstation is based on the idea of a
‘dream bubble’. Its distinctive design has been
recognised as being groundbreaking – offering
retailers a fantastic marketing tool for promoting games and providing space for a “How to
Play guide and interactive instructions, as well
as play slip holders for every game in the National Lottery’s portfolio. It also features desks
at two different heights to allow wheelchair
users to play. Camelot, through its experience
and expertise, has found that the correct positioning of the Playstation can improve in-store
sales by up to 7.5%.
Camelot has provided all retailers with digital
media screens, the first lottery operator in
Europe to undertake such a feat. The screens
are used to promote jackpots and Rollovers,
current TV campaigns and new Scratchcard
6
launches. In addition, Camelot provides each
retail outlet with a National Lottery Scratchcard dispenser. The size of dispenser can be
tailored to a retailer’s needs to optimise performance and sales – and thereby maximise
returns to the Good Causes.
Retailers are also provided with regularlyupdated in-store communications materials
promoting, among other things, mega jackpot draws, Rollovers and new Scratchcard
launches. This material ensures that players
are always presented with a clear and consistent message, and helps retailers to make the
absolute most of the great sales opportunities.
Camelot’s Retail Sales Team is on hand to help
National Lottery retailers maximise their lottery sales and so raise even more money for
the Good Causes. The sales team is customerfocused and spends time with retailers to really understand their business and to highlight
the benefits that improvements in the way
that they sell National Lottery products will
bring to their business. To this end, Camelot
has developed a programme, ’Perfect In-store
Execution’ (PIE), to help retailers make the
most of selling National Lottery products. For
example, PIE ensures that Scratchcard dispensers are fully-stocked with the latest range
of games and that POS materials are sited for
maximum impact. PIE also focuses on the till
area of outlets as research shows that 60% of
all purchasing decisions are made here.
Over the last 15 years of operating The National Lottery, Camelot has developed three Playstations and is currently looking to develop
the ‘National Lottery Counter of the Future’.
Seeking to maximise the understanding of
consumers’ path to purchase, the new equipment will be innovative and help Camelot to
build an even better and brighter National
Lottery during the third lottery licence period.
Camelot also provides each of its retailers with
a standard retail agreement, a document designed to inform and ensure that all retailers
know what is required of them as a National
Lottery retailer. Comprehensive and covering
everything from IP rights and game rules to
details of Camelot’s support services, the document makes for a good structured working
relationship between both parties.
At a time when retailer margins in some categories have been declining, Camelot has
underlined its commitment to its retailers by
maintaining commission on National Lottery
draw-based games at 5%, and increasing retail commission on Scratchcard games – now
a £1 billion-a-year business – by 20%, from
5% to 6%. With National Lottery Scratchcards
enjoying a 70+% increase in sales since 2003,
the increase in commission – which was introduced earlier this year – is a major boost to
retailers’ bottom lines.
Camelot has worked hard to develop what
it refers to as the “value of the lottery” – a
unique scheme that has shown retailers the
value that lottery products, as a category, provide to their business. As well as the obvious
cash benefits from direct sales, The National
Lottery is a proven driver of footfall in stores.
Research shows that one in five customers
visit convenience stores, for example, because
they want to buy a National Lottery ticket. On
top of this, lottery shoppers visit their convenience store more frequently and spend on average 45%* more than non-lottery shoppers,
a figure that rises even more sharply between
5pm and 7.30pm on draw nights.
Camelot’s relationship with its retailers is vital.
The company has a proven track record of innovation and delivering for the Good Causes –
but all of this is only possible by engaging players, and with the enthusiasm, vigilance and
hard work of all of its retail partners. By working closely its retailers, Camelot makes sure
that The National Lottery is constantly fresh
in-store, available to players when and how
they want it, and continues to add value to
retailers’ businesses – both in lottery pounds
and in that all-important incremental footfall.
Points of sales
advantage of this solution is that each POS
can set aside the space it wishes for its sport
wagers corner. Lastly, mention can be made
of our BetterSlot project, namely the stocking
of POS with specific features (plenty of room
and high flows of players) with the whole
range of Lottomatica’s products, particularly
the Slots. The aim of BetterSlot, in fact, is to
offer our POS the chance to increase their
business through the use of specific compleThe same strategy has been adopted for the mentary furnishings for each product, and
Lotto (numbers game). Extra attention is de- bettors an opportunity to enjoy the experivoted to the area where people fill in betting ence of entertaining and satisfying gaming. slips that has been made both very attractive Lottomatica constantly direct its interest to
and highly functional. The outfit provided the attainment of greater efficiency and result
when the new game 10eLotto with its draws maximisation by its POS network. To help its
every five minutes was launched in the mid- retailers, the Lottery has created many forms
dle of December on an experimental basis of incentive programmes. Nationwide, promothrough 5000 POS included both specific bet- tion initiatives directed to bettors equally benting slips and freshly created POP materials, efit POS owners. There are also game-specific
trade incentive plans. Lottomatica runs anand monitors for viewing the draws.
A different arrangement has been devised for nual prize competitions for its retail outlets,
“Better”, Lottomatica’s brand for fixed-odds designed to reward those with the best pergaming. The POP materials - are presented formance over a given period, thus rewarding
by modules located in “gaming corners”. The more than 6500 POS on average every year.
Europe’s most extensive
online retail Network
Its more than 97.200 points of sale (POS)
make Lottomatica the company with Europe’s
most extensive network of outlets linked on
line in real time. But it is the wide variety of
these POS that makes us highly competitive
and versatile. 46.000 tobacconists and 27.000
bars throughout the length and breadth of Italy bring us in touch with players of every kind. New agents and shops in department stores,
too, constitute a different type of network.
Our success has been attained, consolidated
and developed through the soundness, sureness and distinctive features of our gaming
products and technology, together with the
attention we devote to the POS in our network. Our POS, in fact, are of prime importance for the success of our gaming business,
and the professional support, conviction and
constancy they dedicate to innovative products are equally essential. Together with the
development of the network itself, therefore,
we pursue an active trade marketing strategy through the provision of merchandising
materials for use both inside and outside a
POS. Window stickers and stand-alone sailshaped displays bearing our product logos
are the most effective for outside layouts
because they provide players with an immediate identification of the premises where
Lottomatica products are on sale. Interior
layouts comprise betting slip holders, hanging mobiles, and floor stickers that have been a great hit with our retailers. Our aim,
in fact, is to endow all our gaming corners,
whether big or small, with a characteristic,
personal appeal, since we believe that the
strong visual impact stemming from their immediate recognition encourages people to try
their luck: For our “Gratta e Vinci” scratch
cards, we have produced Plexiglas display
boxes and others of a bar type fitted with branded clips that clearly indicate the price
of the ticket. These are installed at the cash
register counter where the products most
associated with impulse buying are usually shown. The quantity of the materials thus
provided is naturally determined by the size
of the POS. Self-service vending machines
also boost sales in these high traffic points
of sale such as supermarkets, shopping malls
and city railway stations.
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Points of sales
Product display and attractive dispensers:
a sure added value for Loterie Romande
Loterie Romande (LoRo) has developed a
series of furniture to provide display and
high visibility for its products. This equipment presents in most part a specific display concept according to the type of products. Depending on the point of sale (POS)
and its concept, this equipment is mandatory for retailers. Exception is made for certain chain stores that have developed their
own displays.
Product presentation is done differently depending on the games. For the number lotteries, tickets are presented in mini-towers
and other indoor furniture and outside on
stands. Instant tickets are recessed inside
dispensers offering key presentation areas
for maximum game exposure: For example,
the bottom or center of the display window
is reserved for “novelties”. These dispensers can also fit rolls of tickets that are presented on top of the dispenser thanks to an
electrostatic pouch. POS have access to all
sorts of merchandising components – some
in the form of kiosks, others as table toppers, garlands, outdoor easels, small posters for customer-screen, posters, bulletin
holders, and more.
A Sports Betting communication network
(posters) is in place in the most important
POS (1000 POS out of 2800), and a dedicated retail network for Sports Betting is currently being set up among 10 points of sale.
The Lottery POS currently can use 3 different automatic tickets vending machines.
The DistriDuo (530 machines) and the DisTribolo (250 machines), mainly used in the
Horeca POS, and the distriloro (or ITVM)
installed in train stations or shopping centers. Besides the self-contained support
they offer retailers, these vending machines
clearly generate additional sales because
they trigger an impulse purchase and attract new players.
A DistriDuo generates on average a turnover of about CHF400 per week, or more
than CHF20.000 annually. As for the recently launched DisTribolo, sales of distributed
tickets have jumped more than 70%. The
advantages are their full acceptance by retailers due to their easy installation and low
maintenance, and also the added value of
impulse purchases triggered by the prime
visibility of lottery products.
Retailers act as middlemen between LoRo
and players. It is therefore essential for
them to understand perfectly the games
and be motivated to promote them in order to achieve their sales goals – Thus, the
importance for the Lottery to focus on retailer’s training. In addition, one or twice a
year, incentive programs among retailers
are launched to thank the most active POS.
Some of these programs target the special
event ticket such as “Le Million”, which is
a challenge requiring a serious sales approach from retailers. Other incentives are
applied to “Swiss Loto” and “Plus” games
and opened only to POS equipped with
terminals. The performance of these POS
is established by comparing their sales percentage for the “Plus” game against their
“Swiss Loto” game sales during a specific
period, and the best POS are rewarded.
Incentive programs
help Mifal Hapais retailers
Mifal Hapais in Israel has established a
business arrangement with its retailers,
based on sale targets. Each retailer is
given a target for each product and the
store performance is constantly measured
up to that figure. In addition, the Lottery
has set up a number of important rules for
its retailers: Specific opening hours, regular replacement of signs, obligation to any
campaign or product launch and visibility
of Lottery products.
To show support to its retailers and encourage them to make a commitment to
reach their targets, the Lottery launches
annually a big incentive program, valid 6 to
8 months and aimed at 1,800 retailers out
of the 2,500 in the network. In addition,
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many promotional programs are offered to
specific retailers.
Due to the diversity of points of sale
(POS), each store has specific needs and
it is not possible to place a one-size-fit-all
equipment everywhere. Therefore, the
Lottery supplies a variety of dispensers
and cabinets in order to accommodate different space requirement of the retail environment. Also, because counter space is
at a premium in some stores, the Lottery
has designed special stand-alone units to
give a place for the public to scratch their
tickets on site.
Three years ago, Mifal Hapais realized the
importance of a much- needed improvement of its retail space. Building that cost
in its annual budget, the Lottery has been
renovating some of the leading stores, to
make them more attractive and more customer-friendly. New and more informative
signage is being added. By increasing the
flux of customers in these stores, games
sales are expected to go up as well.
Points of sales
Multi-channel
distribution for Tipos products
TIPOS offers
its
products
and
services to players
through
three
distribution channels:
Brickand-mortar
points of sale
(number and
instant lotteries); Internet (number lotteries, sports betting, casino games, instant
games and bingo); and SMS (number lotteries except for KLUB KENO). Each of
these distribution channels has its specific
marketing strategy and promotional tools.
TIPOS recorded 2,150 active POS with
more than 2,200 terminals on line. Off-line
sale is aimed solely at instant lotteries and
there are more than 1,300 POS. All retailers work with the Lottery either with a contract or on a commission-based agreement.
In these shops, placement of lottery product is very important as well as the type of
equipment and promotion materials. Every
advertising item must emphasize the visual
concept of a product line: For instance,
each number lottery game has its own colour – allowing customers to immediately
identify the game. TIPOS decision to install
specific equipment in a POS depends on
various factors such as the establishment
size, layout of windows, furniture and cash
register, as well as sales performance.
TIPOS supplies announcement boards for
single games jackpots displayed on windows; Billboard in a shape of totem for
LOTO Jackpots (the most popular game in
Slovakia); External racks showing, per a re-
eye level whenever possible, to attract the
customers’ attention on jackpots and special promotions. Products with strong visual
attractiveness such as instant tickets are
grouped under one unifying header.
TIPOS also offers Internet games whose
sales for 2009 represent so far more than
40% in sales for TIPOS game mix. This
has become an important channel due to
the influx of new players (usually younger
players or people with a higher education),
who did not have any experience with the
lottery before. The communication with
these players is slightly different. It is done
via Internet and through indirect marketing support on TV, always emphasizing the
comfort, safety and non-stop availability of
this sales medium.
Since June 2009, SMS on cell phones has become another interesting channel as TIPOS
is using it to launch bets on select number
lotteries. Two out of three mobile operators
in the Slovak market currently provide the
service. SMS betting is transparent, interactive and very convenient for users and it is
targeting technically inclined groups.
tailer’s needs, promotions for players, jackpots; Banners and outdoor signs with logos
of specific games. For indoors, it provides
hanging frames to hold posters of current
promotion campaigns, monitors (for Klub
Keno and jackpots of other games), Lottery
ticket holders and other marketing accessories. Placement of products must be at
A productive relationship
in Catalonia
In Catalonia, Spain, retail stores distribute
lottery products along with other merchandise. The Catalonia Lottery supplies a variety of equipment and accessories specifically
designed for POS, but their use is up to the
retailer’s agreement. The only mandatory
element to sell Lottery games is the use
of a terminal, and some POS such as bars
need to have a monitor in order to sell the
“Loto Express”, a game with draws every 4
minutes.
9
Great attention is brought to the presentation of games in a store and for that reason,
the Lottery has created merchandising elements such as outdoor signage to clearly
identify the shop as a Lottery POS, adhesive
door signs to reinforce the relation of the
store with the Lottery, blackboards showing the Loto drawing results, displays for
Lottery literature and online game slips,
instant ticket dispensers, Lottery panels indicating where the Lottery funds go.
For the launch of new games, the Catalonia
Lottery resorts to special marketing tools
that could include door or window posters,
floor stickers, hanging signs or counter displays for flyers. Sales promoters also support the Lottery’s efforts by making sure
shops use as many merchandising elements
as possible with the greatest visibility.
Visibility and practicality are key factors for
successful POS. The Lottery has designed
four different models of a stand-alone cabinet that will offer game forms, flyers and
other informative brochures along with
a space for the player to fill in game slips
or scratch instant tickets. The Lottery will
present this novelty very soon, expecting
its implementation in about 40% of POS.
The Lottery requires its retailers to play an
active role in promoting its products and
in exchange offers them great incentives.
Retailers receive fixed compensation and
support in the form of merchandising positioning, loyalty program with points based
on sales amounts and redeemable for gifts,
PR campaigns allowing POS to participate
in major cultural or sports events, and promotional programs targeting both vendors
and players.
Points of sales
In Austria, optimal
placement of gaming
products in a point of sale
ment must allow players to feel at
ease while providing a convenient
and fast service.
Points of sale for the Austrian Lottery
games and those that sell sports betting
products are presented in the same way, offering an identical image, easy to identify.
Points of sale of lottery games are also allowed to take sports betting. The games
presentation is essential in the commercial
approach of the Lottery and this environ-
For this reason, the design of a
game counter in a store is very
important.
In terms of practicality, there are
dispenser filled with all betting
slips and information material
for each game. (Lottery games,
Sports betting games). Furthermore there are various dispenser offering
instant tickets (scratch, break open). Additional advertising material as high quality posters for Lotto or EuroMillions are
designed to attract customers. In some
POS there are designed counters where the
player can fill in his coupons or scratch the
instant tickets. The POS are also equipped
with terminal customer displays which
show general information and advertising.
shops. Most of them have illuminated signs
with the logos of each game.
For promotions, POS may use, depending
on space which is reserved for games, other
advertising materials to draw the attention
of customers, such as large posters, signs
or wreaths hung from the ceiling. Lottery
urges the concept of optimal placement
of gaming products in a business environment where competition from other advertisements such as those for cigarettes is
very high. But not all POS may be able to
increase the visibility due to lack of space.
The retailers training is another important
factor because it allows them to have adequate knowledge of product offerings, the
use of the terminal, the mission of the Lottery, the laws governing gambling, Responsible Gaming and positioning of effective
advertising and information to players in
a POS. For new retailers there is a mandatory seminar “how to sell lottery products”
which is offered also to existing partners on
a voluntary basis.
10 % of the retailers offering all products
are equipped with a monitor in their shop
window to attract passersby with commercials.
POS which sell all Lottery products are
equipped with a sign on the outside of their
Touch-screen terminal:
a successfull promotional
tool in Slovenia
The Slovenian Lottery Sportna Loterija d.d.
works in partnership with its retailers, making recommendation on how to position
the Lottery promotional materials, but the
overall presentation of the store remains
the shop owner’s responsibility. A variety of
lottery equipment to improve the visibility
of lottery games and promote this type of
merchandise is provided to the retail network: Ticket dispensers at cash registers,
stand-alone cabinets or tables offering flyers and game slips, posters, pencils, information screens and touch-screen terminals.
At select points of sale (POS) such as gas
stations, betting agencies and stores that do
not offer the typical lottery games, touchscreen terminals have been extremely successful in promoting the Lottery, improving
10
at the same time the POS returns.
Beyond betting agencies that typically display the games literature and slips in a very
prominent way, regular POS are encouraged to position lottery information and
tickets in key location such as right on the
counters, near cash registers or other good
locations in the store. Every once in a while,
the Lottery will run special promotional
activities for its retail network, but only at
specific POS such as Post Offices. Another
promotional approach is Internet games
but this sales channel is not highly promoted, except during special sports events.
The Lottery relies heavily on regular POS
for its marketing efforts, as they still are the
best performing environment for promoting
games of chance in Slovenia.
Points of sales
A clean, organised POS is
an inviting space in Hungary
and bulletin boards showing draw results.
The location of signs throughout a store is
crucial as they are the most productive marketing approach. Although it is not always
possible, retailers are required to place promotion materials of new products at eyelevel for the best impact. With POS located
in railway stations, underpasses, buildings,
malls, etc… there are a wide variety of floor
spaces and conditions, but finding the best
Szerencsejáték Zrt does not require from place to promote any new products is always on the
its retail partners the use of any particuagenda.
In
lar design for their shops. Most important
a POS, the
is to present a clean and organized POS,
most imporand to operate in conformity with the legal
tant thing is
requirements such as presenting clearly to
that players
the public all the terms and conditions of
can get all the
participation in a game; Ensuring that no
information
one under the age of 18 play any games, etc. they need.
Also, the Lottery asks its retailers to use
For their daias often as possible the marketing materily operations,
als and displays sent to them. Some stores
retailers are
receive special promotional tools from
supported
the Lottery in the form of branded labels,
by 2 kinds of
stand-alone cabinets, flags, flyers, posters
terminals: E5 and MX. Approx 900 type
MX terminals and 3800 type E5 terminals
are in the front line. The Lottery has plans
to change the type E5 terminals with new
ones by 2014 to help its retail network grow
their businesses with improved technology. To build up a good relationship with
its retailers and motivate them in selling
its product mix, the Lottery offers training
sessions, good sales commissions (5 to 6%
for online games and 9 to 10% for instant
games), sales meetings organised every 6
months to discuss new promotions and future goals as well as monetary incentives.
Incentives are organised, to keep a shop’s
owner motivated. Also, the use of random
checks and mystery shoppers has proved
very effective.
Best retailers are rewarded
by De Lotto
Lottery retailers in The Netherlands must
strictly follow the guidelines of the Dutch
Betting & Gambling Act and must operate
within the law such as for example refuse to
sell to under-age customers. De Lotto considers its retail network as a continuation
of the Lottery’s promotional campaigns and
POS must make their best efforts to sell and
promote De Lotto’s products. In exchange,
and through incentives organized among
retailers, the Lottery rewards the retailers
with prizes for the highest sales recorded in
a specific period.
The presentation of displays and other ad11
vertising materials at POS is important to
promote lottery games. Lately, it has come
to the attention of the Lottery that games
and brand materials might not be positioned to get the best visibility or are not
attractive enough to have the expected impact on customers. An
evaluation of
that situation
is being conducted and
the Lottery
expects that
the results of
the research
will help find a solution to improve visibility,
product information, promotion and in the
end tickets sales.
Dutch POS are usually equipped with wagering terminals and in 2010, the Lottery
will install throughout its network brand
new terminals that will provide retailer and
player screens. Due to the impulse charac-
ter of a purchase of lottery products,
best
efforts
are made to
display instant tickets and as many other
games as possible, depending on space, at
or near the cash register. Lottery promotional and informational materials also are
placed surrounding the POS counter whenever possible. Each POS sells the whole
Lottery product mix: Instant tickets, Lotto,
Lucky day and Toto games.
Points of sales
Greek POS linked to strong
brand Identity
OPAP agencies are dedicated to the sale of
traditional lottery and sports betting. Instant games are not offered. All games can
be played at any POS and are offered exclusively via online terminals. The sale and
presentation of Sports Betting is the same
as all other games. POS counters have a
transaction terminal as well as a customer
display. Display cases are provided for game
slips and all lottery-related equipment bear
the lottery logo. Agencies also have at least
one TV screen for the Keno game to show
draws occurring every five minutes. A new
corporate style is designed for all agencies.
The use of vivid colors, sophisticated materials and shiny finishes creates a pleasing
game atmosphere. The signs on the counter and throughout the store are purposely
placed to be highly visible and to re-enforce
the brand. Counters are modular. They
come in six different shapes and can be
manufactured in different sizes to fit the
particular layout at each store. POS are equipped with self-service terminals placed on tables or counters and customers play any game with a smart card
preloaded with game units at the main online terminals. Most shops have one or two
online terminals and a few have three or
four, depending on the volume of sales. The
majority also have additional TVs to show
sports events.
A lottery POS must be clearly identifiable to
strengthen the brand and an important part
of this identity is the store façade. Storefronts will mostly have the same fascia of
metal panels, blue and orange, the OPAP
logo above the main entrance and backlit
streaks of blue, yellow and red lines. The
extensive use of OPAP logo and its colored
scheme create a conceptual design linking
the brand, the games and POS. Greece has
extensive local architecture that needs to
be preserved, and special consideration is
made for these areas.
A new system to evaluate retailers is currently under consideration. The proposal
links retailers’ performance to corporate
goals in few specific dimensions such as
regulatory compliance, quality of service,
logistics and financial performance. About
86% of the 5000+ retailers have signed a
new contract with OPAP. This new contract
streamlines the rights and obligations of
each party and consolidates the relationship of the network with OPAP.
Terminals added services:
great for POS in Lithuania
ment clearly mark the game unit. Points of
sale also provide instant tickets and present
them in display cases. A stand-alone cabinet where players can fill in their game slips
is usually part of the equipment mix.
Particular attention is devoted to the eyecatching design and the positioning of signs
in the store, in order to use them to their
full advantage for visibility and publicity
purposes. Additionally, large posters are
added in the lanes.
The Lithuania Lottery designs the POS
game concept and all lottery retailers are
required to use that particular design and
presentation. Online games are offered
in retail environment by ways of terminals, equipped with customer display. All
around, posters and other type of advertise12
The Lottery has updated its technology
input at POS and with this improvement,
returns have seriously increased since Lottery terminals now offer new services such
as mobile phones top-up and bill payments.
The Lottery plans to go one more step and
add LCD advertising screens to their retail
terminals.
The Lottery closely works with its retailers
by encouraging them to add more lottery
informative posters as well as ticket holders
throughout the stores in order to increase
the awareness of the latest instant games.
To motivate its retail network, the Lottery
supports various promotional campaigns
to benefit their best retailers, and some
of the incentives are to pay retailers extra
commissions if their returns have increased
over the previous year. Also, some monetary prizes are presented to POS employees
when sales plans have been fulfilled.
Points of sales
A trade marketing plan
supporting POS in Italy
Although SISAL has established a website
where consumers can go and play, Italy’s
best lottery points of sale (POS) remain the
traditional brick-and-mortar retail shops.
After extensive research on the best positioning of logos and advertisement, Sisal
has developed in 2009 a visibility guideline
for its retailers, showing them how to use
promotional materials and install the new
merchandising signs in the best viewable
location. Based on the “capture-power”
program, SISAL has invested in new signs
and special materials for outside the store
to attract the attention of potential consumers. And consequently, the Lottery has
improved the “Conversion Rate” - the index
that measures how much attention is transferred to the sale.
This year too, Sisal has invested more than
4 million Euros to set up a Trade Marketing
Plan highlighting in-shop support materials
and special incentives for the retailer.
Currently, POS use stand-alone cabinets for
flyers & game slips and special cash registers called “Leonardo” which have been
very well received by the consumers. Retailers can use TV screens to present Sisal
TV Channel. Games throughout the store
are presented separately.
Sports betting games are sold in different venues. SISAL has a special network
of about 4,000 POS called MatchPOINT:
About 150 POS are Sports Betting agencies
Points of sale:
new design, qualified staff
and prevention
instant win tickets. Above the cash drawer
are instant win tickets and light boxes with
the word “LOTTO”. Wording indicates the
different tickets and therefore makes the
service user-friendly. The concept gives a
harmonious look to the entire module.
In 2000, WestLotto commissioned a design
company to develop a modern concept for
its points of sale. The idea was for points
of sale to be easy to identify, offer a pleasant and informative environment and to
differentiate them from illegal operations.
With financial assistance from WestLotto,
the points of sale have been fitted according to the “Design 21” model – and this style
is now compulsory for all new sites opened.
In addition to a play stand where the player can fill out a lottery slip, each point of
sale also offers a sales counter that has a
touch screen terminal for the salesperson
as well as the customer, and a corner for
13
This new concept for the presentation of
game products – using colours, spot lighting on company signs and ergonomic furniture – gives the sales points a modern and
friendly look. However, the presentation of
information and views on excessive playing
are made clear across the whole shop area.
This is an extremely important aspect for
WestLotto points of sale because, in accordance with German law, the advertising of
games, which has been reduced to a minimum, should in no way encourage the purchasing of tickets. The advertising area of a
point of sale should essentially be reserved
for public information on the prevention
of excessive gambling and the protection
of minors, and should give details of help
centres. However, it is permitted to display general information about the games
offered in the window or inside the point
and the rest are bars where betting products are presented in a special way.
With the success realized this year, SISAL
will continue investing in the improvement
of its POS network throughout 2010. Sisal
is already working on a special project to
develop a new POS concept that will be implemented next year.
of sale. However,
shops with online
games have been
prohibited from
1st January 2008.
In a point of sale
everything
has
been designed to
comply with the
law on gaming. For this reason WestLotto
has several requirements when an enquiry
is made with regard to opening a point of
sale: the retailer should have a fairly large
space which can hold all the required signs
as well as the fitting of the play stand. In order to ensure a completely legitimate range
of games and to meet standards, WestLotto
also stipulates that its retailers must undertake practical, technical and type training
for dealing with gaming products before
they can become a licensed agent. On this
basis WestLotto has highly qualified staff at
the service of its players at all its points of
sale.
Points of sales
Standardised POS
Equipment Project in the
Czech Republic
SAZKA requests that the points of sale
(POS) of its contracting partners (agents)
who sell its lottery and non-lottery products, meet certain standards for providing
those services. In 2007, SAZKA launched
the Standardised POS Equipment Project,
on the basis of which the company equips,
under certain conditions, the POS with online terminals. Today, the basic equipment
is compulsory for each new vendor in order
to get a Lottery contract.
of fast-draw games (Keno, Lucky Lines,
Dice, etc.) and to present odds bets.
Special attention is paid to the presentation of SPORTKA (Lotto 6/ 49), with the
current jackpot amounts presented in POS
windows. This project is supported by a
contest for retailers, who are financially
involved in the appropriate presentation.
Projects of this sort show long-term effec-
SAZKA places its terminals in general retail
outlets (most typical POS are tobacconist
and newspaper shops). Other retailers include gas stations, post-offices, and restaurants. SAZKA standardised equipment
catalogue includes approximately 70 items,
making it possible to equip any kind of POS
and any space availability. The terminal
is located at the cash register and offers
a presentation space as well as a scratch
tickets display case. Another component is
a writing desk with an information system
showing promotional and player information materials. If there is no space, the information system alone is installed. Other
displays are also used to promote the sales
tiveness of up to 90%. Not everything is
installed in every POS. For example, the
displays showing fast-draw game results are
placed exclusively in high traffic areas such
as shopping centres or in locations with a
large population. Placing such equipment is
only worth installing in POS that generate
above-standard sales.
The Lottery signs agreements with its retailers for an indefinite period of time. Regularly, motivation programs are designed
for the retail network for different types of
products or POS evaluation projects that
reward good performers with special bonuses in the form of merchandise prizes.
Also, the Lottery holds regular meetings
with its top retailers and invites them to social and sporting events as well as cultural
events held in the Lottery’s multipurpose
hall – O2 arena.
Product display: key
communication tool for MSL
In Ukraine, MSL products are distributed
through three different channels: The Lottery’s own retail agencies, independent
agents and a network made out of the State
14
Post Office centers and select banks located
in key areas. MSL handles all the merchandising as well as brand and trade marketing
activities at POS.
Product display at POS is a key communication tool for instant games: Not only do
retailers offer convenience to players with
separate stands for a place to scratch instant
tickets, but also winning tickets are widely
used to promote instant games throughout
the whole store. Ticket dispensers, coupons
and other product related materials are well
presented near cash registers or other areas of a store for the best visibility. Jackpots
are clearly displayed too. Whether indoor
or outdoor, the Lottery attractive marketing approach is a constant reminder of the
games.
Some POS are equipped with LCD screens
which allow to market fast-play games such
as Pick 4 with draws every 8 minutes. The
Lottery makes special efforts to promote
its products by designing a wide variety of
highly visible promotional materials to satisfy all agents’ needs: Thus, it does not matter if there is fierce competition from other
industries, the Lottery brand at each POS is
well marked, well advertised and well supported by the retailers thanks to a sound
business relationship established between
Points of sales
MSL and its trade partners.
Lottery kiosks are another important factor
for MSL product line. The kiosk is in fact
the most ubiquitous “convenience store” in
Ukraine and as such, it is the trade category
of key priority in the Lottery’s promotional
activities. Launched in September 2009,
the first oddest-type game “Sportliga” is
distributed through the Lottery agencies in
the same dedicated approach to promotion
and information given at all POS and sports
events are well announced on all “Sportliga”
vending stands.
Player education, product information and
promotion, and high quality service at POS
remain essential for MSL: All retailers, independent agents included, are trained to
cooperate in achieving that goal and receive
regularly innovative “how-to” materials to
improve their store presentation.
Kiosks and mobile
POS for ONCE
In Spain, ONCE retail network is comprised
of only two types of points of sale (POS):
Its 8000 kiosks, installed on the sidewalks
of the busiest streets and Mobile POS, handled by about 14,000 street vendors.
The Lottery has designed a corporate concept presenting 10 different models of kiosks, all prominently showing ONCE logo.
These installations are in line with the urban environment and fit naturally in the
cities. Each kiosk exhibits a similar format
in terms of product
presentation, location
of signs, orientation of
the windows and tickets, giving the public a
sense that this is ONCE
space. With street vendors, the exhibition of
the products is the important factor.
Ticket design does the promotion of the
Lottery brand by offering an appropriate
concept with clear information on prize
amount. And grouping the games at POS
forms a sort of mosaic highlighting the attractiveness of Lottery products. All kiosks
are equipped with a LED screen announcing the prizes and communicating promotional messages or drawing results. All POS
15
use online wireless hand-held retail terminals that operate via a wireless communication system GPRS, for all their transactions.
ONCE has plans to modernize its kiosks with
a concept that would be more in line with
21st Century commercial trends, improving convenience for the Spanish consumers with multiple services and distribution
channels. Recently, ONCE has launched
an Internet shop site selling only passive
games and Lotto 7/39. This is a very new
endeavor and no serious promotion campaign has been set up yet, except through
the regular ONCE advertising channel and
some exceptional promotions such as the
Christmas Campaign with gifts remitted to
the site’s visitors.
The relationship between ONCE and its retail network is unique. ONCE vendors are
Lottery’s employees, receiving a fixed sal-
ary plus commission on sales especially on
the “Coupon” – a passive traditional lottery
game with pre-printed tickets that has been
the exclusivity of ONCE since 1938. Also,
extremely important and unique is that this
retail network is the main basis of work and
integration in society for disabled people.
By paying more than 600 millions Euros annually to cover salaries and commissions,
ONCE makes an important contribution to
society. In addition, ONCE offers an incentive program to his vendors called “Your
Best Plan” in which the vendor can accumulate points and exchange them for gifts.
We see opportunity.
Today’s global economic pressures have generated incredible business challenges.
In this climate, we see opportunity. Opportunity to accept, seize and manage
change—to be more competitive in the entertainment industry…and to grow lottery
sales from retail expansion, to implementing best practices, to new media games,
to exciting new business models. We see opportunity everywhere…but more importantly,
we see it for our customers.
Partnering with lotteries…for good causes.
GTECH® is an advocate of socially responsible gaming. Our business solutions empower customers to develop parameters and practices, appropriate
to their needs, that become the foundation of their responsible gaming programs.
16
Points of sales
Brand Identity at POS: direct
effect on sales in Finland
Veikkaus retail network constitute one
of the most important distribution channels. The Lottery has realized that brand
identity has a direct effect on the level of
sales at points of sale (POS). Because the
retail environment offers a strong marketing channel, reaching customers on a faceto-face basis, Veikkaus has developed the
”Key Red Concept” to provide retailers with
tools for effective retail marketing such as
outdoor signage, furniture concept and
marketing materials. The objective of each
POS through this new concept is to create a
consistent service experience for Veikkaus’
customers – wherever they shop for their
gaming tickets. Even more advanced concept elements are currently being tested
and developed with digital signage.
All Veikkaus games are being sold at retail
shops. About 2550 retailers carry Veikkaus
brand identity visuals and approximately
650 retailers are considered being “close to
Veikkaus identity”. In Veikkaus branded retail shops, the “Key Red Concept” presents
a very attractive grouping of furniture and
signage, creating a specific “gaming area”
made of stand-alone cabinets with displays
of information literature, gaming slips and
other tickets, and a writing space for the
players. Each piece of furniture, including
the cash register itself, is done in bright red
– the colour of the Lottery, making no doubt
about the meaning of this type of displays.
Other displays, mainly for instant tickets
and syndicated gaming, are presented at
the cash register both for convenience and
to attract attention on the games: Countermounted tickets cases and in-counter tickets cases.
Outdoor signage, designed to increase customer flow at POS, is also part of that brand
promotional concept to advertise jackpots
and special games campaigns. Almost all
marketing furniture and displays are efficiently placed inside and outside a store to
have best impact. To improve the efficiency
of traditional POS, increase the knowledge
of Veikkaus’ products and provide consumers with real-time information (i.e. on
sports betting), Veikkaus has launched a
one-year pilot test for digital signage in 17
stores. Wide screens show lottery and game
information at gaming areas and smaller
screens at counter areas are specifically
used for tactical marketing messages.
An excellent POS for Veikkaus has also
been its Internet games outlet, www-shop.
With real-time marketing and information,
advertising banners and shopping portals,
this channel is very effective for Veikkaus
and extremely convenient for players. Online registered customers are ”joint cus-
tomers” for both traditional POS and wwwshop, enabling multi-channel gaming. So
far, the Internet shop is showing a higher
growth %, although traditional POS sales
have increased and should improve if digital
signage is finally added to stores.
To help its retail network with better sales
goals, Veikkaus provides regular visits to
POS by its sales managers and mandatory
training sessions designed specifically for
retailers. The Lottery’s support activities
encompass motivation programs with commissions on sales and other sales incentives,
regional briefings, campaigns with special
events designed for the retail chains and
shopping mall tours. All marketing and information literature and games slips, as well
as online terminals and a help-desk service
are provided free of charge. As for the furniture concept, retailers and Veikkaus share
equally the costs.
Point of sale presentation:
a key factor for ISBB, Israel
ISBB works really hard at promoting its
image and games. One of the main tools
in this campaign is the lottery retail network. ISBB offers franchising contracts to
its retailers who receive a 7% commission
on sales. The Lottery works closely with its
17
retailers, either by supporting each participating store with special sales promotions
or by helping them design the right shop
for lottery products.
In order to strengthen the connections with
its retailers ISBB is publishing a bi-monthly
magazine to the POS emphasizing personal
stories, news and innovations within the
organization, tips for improving sales and
enhancing marketing. There is also a direct
line to the CEO and a special Hot Line for
retailers at the telephone Call Center .
ISBB designed a prototype model for all
points of sale (POS) used for both the interior and the exterior of the store. This
design emphasizes color, signage and
branding. Each POS equipment or accessory supplied by the Lottery organization,
whether it is tables, chairs, stands, exhibition panels or terminal covers, is uniquely
targeting the lottery brand.
A retail counter presentation, as well as the
whole store, is a very important factor in the
Lottery’s marketing approach. ISBB wants
the public to instantly recognize a Lottery
retail store and for that reason, each of its
POS must have that Lottery special look
and feel: A clearly marked brand and a simple friendly marketing atmosphere. More
than 50% of the stores belonging to the
Lottery retail network present already that
same Lottery look.
ISBB has plans to develop even more its retail network and one of the key elements will
be to come up with a new design concept for
ISBB points of sale throughout Israel.
Legal
The impact of the ECJ ruling in the Liga
Portuguesa de Futebol Profissional case
for the further EU gambling debate
related risks. The Portuguese legislation
in question also provided for penalties in
the form of fines which may be imposed on
those who organise such games in breach
of this exclusive right and who advertises
such games.
On September 8, the European Court
of Justice has finally delivered its long
awaited judgment in the Liga Portuguesa
de Futebol Profissional case. The ruling is
a clear victory for the EU Member States
and the European State Lotteries, as the
European Court of Justice has clearly recognised the right of the EU Member States
to regulate and control their national online gambling markets and therefore the
application of the principle of mutual recognition in the gambling sector was explicitly denied.
The delivery of the judgment, almost a year
after Advocate-general Bot has rendered
his Opinion in this case, has proven to be
a very challenging task for the 13 judges
of the Grand Chamber. Nonetheless, the
Court has managed to deliver a very clear
and even concise ruling, establishing the
core principles of the power of the Member States in the field of online gambling.
The Court was asked to rule upon the validity of the extension of an exclusive right
for the organisation of lottery and gambling activities to an online offer, under the
European free movement principles. The
case concerns the Portuguese legislation
which confers on Santa Casa da Misericórdia de Lisboa, a centuries-old non-profit
making organisation operating under the
strict control of the Portuguese Government, the exclusive right to organise and
operate lotteries, lotto games and sporting bets via the Internet. The aim of this
restrictive legislation is to prevent the operation of games of chance via the Internet
for fraudulent or criminal purposes and
to protect Portuguese consumers against
gambling addiction and other gambling
18
Bwin and the Portuguese Professional
Football League were fined 74500€ and
75000€ respectively for offering games of
chance via the internet and for advertising
those games within Portuguese territory.
According to a sponsorship agreement between Bwin and the Portuguese Football
League, Bwin logos were displayed to the
sports kit worn by the players and affixed
around the stadiums of the First Division
clubs. The League’s internet site also included references and a link allowing access to Bwin’s internet site, making it possible for consumers in Portugal and other
States to use the gambling services thus
offered to them.
In its ruling, the European Court of Justice first confirmed its previous case law
in the Läärä and Zenatti cases, by stating
that the mere fact that a Member State
has opted for a system of protection which
differs from that adopted by another
Member State cannot affect the assessment of the need for, and the proportionality of, the provisions enacted to that
end. Those provisions must be assessed
solely by reference to the objectives pursued by the competent authorities of the
Member State concerned and the degree
of protection which they seek to ensure.
Therefore, the Member States are free to
set the objectives of their policy on betting and gambling and, where appropriate, to define in detail the level of protection sought. It must however be recalled
that national legislation is appropriate for
ensuring attainment of the objective pursued only if it genuinely reflects a concern
to attain it in a consistent and systematic
manner. The Court also refers to its previous rulings in which it already recognized
that limited authorisation of games on an
exclusive basis has the advantage of confining the operation of gambling within
controlled channels and of preventing the
risk of fraud and crime in the context of
such operation.
The Court extended its previous case law
on the validity of an exclusive right in
the gambling sector to an exclusive right
system regarding the online provision
of gambling services. Indeed, in the Liga
Portuguesa de Futebol Profissional ruling,
the ECJ acknowledges that the grant of exclusive rights to operate games of chance
via the internet to a single operator which
is subject to strict control by the public
authorities may, in circumstances such as
those in the proceedings, confine the operation of gambling within controlled channels against fraud on the part of operators.
The key point and most important achievement of this ruling is that the European
Court of Justice has explicitly denied the
application of the EU principle of mutual
recognition in the gambling sector. According to the basic “mutual recognition”
principle a Member States has in principle
to recognise a license granted in another
EU state without duplication. The Court
considers that this basic principle cannot be applied to gambling services. The
Court states that in the absence of harmonisation, a Member State is entitled to take
the view that the mere fact that a private
operator such as Bwin lawfully offers gambling services via the internet in another
Member State, in which it is established
and where it is in principle already subject to statutory conditions and controls,
cannot be regarded as amounting to a sufficient assurance that national consumers will be protected against the risks of
fraud and crime. According to the Court,
in such a context difficulties are liable to
be encountered by the authorities of the
Member State of establishment in assessing the professional qualities and integrity
of operators.
The Court also recognised that games
of chance accessible via the internet involve different and more substantial risks
of fraud by operators against consumers,
compared with the traditional markets
for such games, given the lack of direct
contact between customer and operator.
Thereby the Court thus ruled that internet
games are more dangerous than physically
offered games, even when regulated and
controlled by the competent authorities of
the Member State of residence of the consumer.
This assessment goes very far and means
the end of gambling hubs like Malta and
Gibraltar. The ECJ indeed rules that the
competent authorities in those jurisdic-
tions, being the jurisdiction of establishment of the operator, cannot sufficiently
guarantee the integrity and quality of operators providing their games in another
Member State. Therefore, the Member
State of residence of the consumer can
maintain its own restrictive conditions and
can legitimately prohibit access to its market for operators established abroad.
Although the legal counsels of Bwin and
other companies operating from such jurisdictions have heavily criticized this ruling as being ‘irrelevant’ or very limited to
the particular circumstances of this case,
19
there is no doubt that they need to put
an end to the abuse of the internal market committed by providing their games
all over the EU without abiding by the restrictive legislation in the Member State
of their consumer. Several of their legal
counsels have tried to find escape routes
by inventing terms like ‘conditional mutual
recognition’ and presenting the solution
for the Member States to engage in bilateral agreements. Admittedly these thoughts
are very creative but unfortunately they
are not only very unclear as to their meaning but also in blunt contradiction with European law.
The answer the ECJ formulated to the
question referred by the Portuguese judge
leaves by no means room for interpretation. It is clear the Court wanted to deliver
a breakthrough ruling on the principal issue of mutual recognition in the gambling
sector, as it didn’t even refer the matter
back to the national judge for interpretation in this specific case. The Court ruled
itself that a Member State is as such entitled to prohibit the provision of online
gambling services within its territory by an
operator established in another Member
State. This leaves no room for a proportionality assessment by the national judge
as the ruling of the ECJ is unconditional.
So a breakthrough ruling in the gambling
sector it was, but unfortunate for those
companies who had put their money and
business strategy on another outcome.
In the meanwhile the Swedish Presidency
of the EU is coming to its end and the
Progress Report on the discussion held
between the Member States within the Establishment and Services Working Group
will be presented to the Competitiveness
Council. A large task is still waiting for the
upcoming Spanish and Belgian Presidencies, shaping the position of the Member
States even more, by determining which
gambling related elements should remain
national and which elements require a European solution.
By Philippe Vlaemminck
& Annick Hubert
Members’ News
National Lottery of Belgium:
75 years young!
2009 is a year full of joy for the National Lottery of Belgium: 75 years have passed since
the first lottery draw of the Colonial Lottery
took place, on October 18th, 1934. Today,
in 2009, the National Lottery organized a
range of different activities to celebrate that
75th anniversary.
In August 2009, the company announced
a new project to support the fight against
poverty, a series of concerts, a product specifically designed for the anniversary and an
exhibition on 75 years of National Lottery
sited in the Royal Museums of Fine Arts of
Belgium in Brussels.
On the social side, the National Lottery
presented a project to the media under the
name A Roof for Everyone. “Making millionaires is nice, helping people in need an obligation”, was the accompanying slogan. With
the amount of 2.000.000 Euros, the National Lottery is supporting eight laureates
which are, each their own way, struggling
to fight poverty by providing a firm and safe
roof for the homeless. On October 17th,
the International Day for the Eradication
of Poverty, the first step was taken, a step
closer to reaching the millennium goals.
Apart from the social project, other initiatives celebrating the Lottery’s anniversary
were taken as well, such as a series of con20
certs. The Brussels Jazz Orchestra together
with the Brussels Philarmonic were asked
to write and perform a unique composition
entitled Creating Chances. Over a period
from September to November 2009, ten
concerts were organised at ten different
locations in ten Belgian provinces. In addition, a unique product with a dazzling
gain - the Golden Ticket - was launched for
the occasion, since this special anniversary
could of course not possibly go by without
a special game of chance. On October 18th,
two winners were drawn, each with a price
of 1.000.000 Euros. Furthermore, a new
Win for Life scratch-ticket was developed:
Win for Life 75. Winners take home €75
every day for the rest of their life.
And last but not least, the exhibition The
Art of the Game, on the game of chance
through the ages, was installed in the Royal
Museums of Fine Arts of Belgium in Brussels. The curator of this exhibition, Mrs.
Annemie Buffels, made a selection of the
finest pieces of art and historical objects
the Cultural Patrimony of the Belgian National Lottery possesses. In collaboration
with a scientific committee consisting of
both national and international experts,
three major themes were chosen. The first
theme, the game of chance as a fascination
of mankind through history, is represented
by a series of historical objects, paintings
and two tapestries, all related to or relating
to the game of chance. The highlight of this
theme is a painting by David Teniers bought
on the occasion of the anniversary: A Tavern Interior with peasants playing cards. A
true masterpiece, dated around 1644-45.
An entire hall is dedicated to the second
theme, which is the universal symbol of all
lotteries: the goddess Fortuna. Etchings,
statues, paintings, a rare jewel, a tapestry and a beautiful Roman mosaic sketch
the evolution of Fortuna from the Antique
World to our modern age.
The third theme reflects on the concept of
lotteries. Both a national and an international timeline study the origins of public
and state lotteries, show the conception of
the Belgian National Lottery and explain
the many different attitudes towards lotteries. In addition, a documentary by Gérard
Corbiau and Dominique Leroy,
‘The National Lottery – Portrait
of a lady of 75 years’, presents
the visitor a view from a different
angle on the specific history of
the Belgian National Lottery.
The Art of the Game has also been
visited by the European Lotteries,
on the occasion of which a preview
was organized (more information
about this event can be found on
page 32 in this magazine).
Members’ News
David Teniers le Jeune (1610-1690)
A catalogue accompanying the exhibition
was published, The Art of the Game, in
which the specialists of the scientific com-
mittee, together with other art experts, give
a historical overview of the different games
of chance. Some exceptional works of art
are reviewed, all of them connected with
lotteries and the game of chance.
At the official opening of the exhibition,
an academic conference was organized.
Experts from other national lotteries and
Belgian politicians shared views on the future of gaming, the dangers involved and
effective solutions, and in particular on the
challenges the Internet offers with regard
to online gaming.
In sum, truly a 75th anniversary that does
not happen unnoticed! By organising these
many activities and projects, the National
Lottery wants to encourage everybody to
join in the festivities!
La Française des Jeux
launches the brand „FDJ“
In a dual purpose of simplicity and efficiency, La Française des Jeux launches the
new commercial brand « FDJ ». Symbol of
the company’s commitment to recreational
gaming and to player services. and of a dynamic company serving the players, “FDJ”
will sign all offers and advertisements of
the company’s products.
Starting from now and continuing throughout 2010, this new simplified name and
logo will be rolled out on all product ranges, advertising, as well as on all promotional and communication materials. The BDJ
brand will also appear on Fdjeux.com website and progressively on all the company’s
retail banners.
The name “FDJ” was chosen because of
its natural attribution to La Française des
Jeux, like the four-leaf clover that goes
with it. These two elements are represented by an arrow which provides players
with symbolic guidance through all the different stages of their gaming experience.
“Française des Jeux” associated with the
clover symbol remains the name as well
as the corporate brand of the company. It
promotes the ethics and responsibility values of La Française des Jeux.
ParionsSPORT/Parions WEB!
New brand and new sports betting
site of La Française des Jeux on the
Internet
As from November 3 (ParionsWeb) and
November 17, 2009 (ParionsSport), La
Française des Jeux is renaming its range
of sports betting on the Internet to consolidate its product range and give a simple
explicit image of the betting market.
21
This site provides more information, services and betting advices in order to coach
the players and help them bet better.
ParionsWeb is supported by a group of
sport experts and includes sequences of
Web TV and Web radio.
The Française des Jeux carries on with the
renovation and modernization of its range
of sports betting on the Internet to better
serve its players, with a responsible gaming model, respectful of sport.
Members’ News
Loterie Romande
Internet and training
RESPONSIBLE GAMING
AT A SIMPLE CLICK
Thanks to Internet (and Intranet), this
training can be adapted to the availability
of each participant. It takes about 35 minutes and ends with a test of the knowledge
acquired.
Online but obligatory!
This prevention tool is not just an accessory but is positively constraining. Indeed,
it paves the way to a certificate which is
obligatory:
• For all Loterie Romande employees
– nearly 300 in all. They have until 31
December to obtain it. Likewise, all new
employees will henceforth have to follow
this programme.
The Loterie Romande is seen as a pioneer
in Responsible Gaming and prevention,
as its double European Lotteries certification (European Responsible Gaming
Standards) and World Lottery Association
(Level 4 Responsible Gaming certificate)
bears witness.
The training programmes, of all the tools
that have been developed and introduced,
form one of the pillars of its action. One
of the latest developments is an interactive module devoted to Responsible Gaming that has just gone on line for Loterie
Romande employees and agents. Partner of Spelinstitutet
(The Gaming Institute)
Since 2008, the Loterie Romande has
been availing itself of the training possibilities offered by the Internet. This medium
has some unique qualities: it is “open 24
hours a day”. Above all, it makes it possible
to reach the entire network of agents and
employees without any time constraint.
To ensure maximum impact, the interactive programme recently launched was conceived in partnership with Spelinstitutet,
the Swedish body unanimously recognised
in matters of Responsible Gaming
Simulating reality
The training module is far from being a
simple succession of theoretical principles. Indeed, it is meant to provide not
only a basic knowledge of Responsible
Gaming but also an ability to adopt reflexes should the need arise. It comprises interviews, quizzes, simulated situations and
role playing.
22
• As of 1 January 2010, for the entire network of agents, i.e. more than 4000 people. Note that they will be authorised
to resell Loterie Romande games only
after having been trained and having
obtained the Responsible Gaming certificate. In addition to this course, they
go through programmes adapted to the
products placed at their disposal.
A tool in the making
The Loterie Romande can testify to excellent training results. For some years now,
measures aimed primarily at Tactilo agents
have been extended to the rest of its staff
in order to create a true sense of emulation
with respect to Responsible Gaming. That is why it intends to develop the potential offered by Internet. On the basis
of this module, stock will be taken of the
situation in 2010 in order to determine
which of these measures hold the greatest
promise.
Premium
Making WAVEs
Scientific Games introduced its WAVE fullfunction, clerk-operated terminal at the
2007 World Meet in Louisville, Ky. (USA),
with its first full-scale lottery deployment
in Connecticut at roughly 3,000 retailer locations in early 2008. A year later, another
9,000 were deployed in retail locations
across the state of Pennsylvania. Work has
just commenced for the Hoosier Lottery,
and by mid-2010, 3,900 WAVE terminals
will be installed to drive lottery sales.
In these jurisdictions, digital content marketing advertising displays, self-service
ticket checkers, wireless bar code reader
and other support peripherals are integral
to the comprehensive retail products Scientific Games provides.
The company also inked a major deal to
provide up to 15,000 Leonardo/WAVE terminals for Italy. The Leonardo/WAVE is
a customized version of the WAVE built
specifically for the Italian market in collaboration with Sisal S.p.A. Approximately
11,200 Leonardo/WAVE terminals are now
installed and operational across Italy. Another 3,800 are planned for deployment
within the next two calendar years.
In October, the Israel Sports Betting Board
placed an order for 600 WAVEs in what is
expected to be a 2,000-unit order, while
Hungary’s SZERENCSEJÁTÉK Zrt. has ordered more than 2,000 terminals as part of
a technology-upgrade initiative, with initial
installations imminent.
Keep Those Lines Moving
WAVE’s processing speed is making it easier to buy and sell lottery tickets.
“It’s much faster; I mean lightning fast,”
says Beth Vige, owner of Vige’s Convenience Store in Connecticut, USA.
Of course, lightning-fast transactions take on
added significance when jackpots reach lotto
mania levels. Such was the case this summer when the SuperEnalotto jackpot topped
out at €146.8 million, the largest jackpot ever
won by a single player in Europe.
“During the nearly seven-month SuperEnalotto jackpot rollover period, including
at peak demand, the performance of the
11,200 Leonardo/WAVE terminals easily
met the crushing demand brought about
by the largest lottery jackpot in Italy’s
long and storied history,” says Maurizio
Dell’Oca, Chief Information Officer of Sisal
S.p.A.
Ergonomic Design
Scientific Games engaged as partners in
the WAVE design and development initiative two of the world’s leading ergonomic
design firms: • Frog Design – best known for its work
with Apple, Sony, Victoria’s Secret,
Lufthansa, Disney and Hewlett Packard –
brought its skills and expertise to the areas
of terminal design, colors, materials and
trim kits.
•
NCR Human Factors
Engineering consultants –
whose work can be seen
(and touched) in airport
self-service kiosks and supermarket self-checkout systems – worked with Scientific
Games to help streamline the
touch-screen navigation and
placement of key peripherals,
including printer and barcode
reader.
23
Driving Sales. Raising the Bar.
Retail store manager Rosemary Ross says
WAVE and its support peripherals have
resulted in higher lottery sales and commissions. “An increase in sales has happened since we’ve gotten the new machine
because it’s so much faster. We can get the
customer in and out, and they don’t have
to wait in line.”
Adds Peter Patel, owner/manager of Mobil
on the Run in Hartford, Conn., “Players
also like the full-motion video advertising
display because it tells them how much the
Powerball jackpot is and how much they’re
going to get paid.”
That’s not all. Responsible gaming and
beneficiary messaging also can be electronically distributed and managed from
the central gaming system to the digital
content displays, something both the Connecticut and Pennsylvania lotteries are doing effectively.
Premium
MONITOR YOUR BUSINESS EFFICIENTLY
WITH INTRALOT’S GMIS
In times of rapid developments and continuously increasing competition, the decisions that a lottery organization needs to
make must be quick, precise and resultoriented. This could be easy if the POS
network is small, with limited transactions
and a small number of clients. But when
it comes to diversified business environments with multiple distribution channels,
an organization requires a more sophisticated system for integrating large amounts
of complex information.
Being not only a technology supplier, but
also a Lottery Operator in multiple jurisdictions and different environments
worldwide, INTRALOT has gained deep
insight into the needs of Lottery organizations. Having to handle traditional POS
and alternative channels networks (i.e.
mobile phone, ITV PC, etc.) or having to
offer a diversified product mix around the
world, we recognized the need for a business intelligence solution that would focus
on core competences, identify potential
weaknesses, improve cost control and support best practices, all of which would lead
to optimal business performance. To this
effect, we combined our vast experience
of Business Intelligence, our extensive
experience and knowledge of operations
and best industry practices to develop
the unique Games Management Information System (GMIS). GMIS surpasses
other business intelligence solutions in the
market today in that it is a rich set of dynamic and predefined reports specifically
designed to address the particular needs
of all hierarchical levels within a Lottery
organization as well as those of retailers. Knowing that maintaining a competitive
edge depends on intelligent data analysis
and insight into market behavior, GMIS can
be utilized towards a Lottery’s efficiency,
growth and profitability by offering end users easy access to all required information
so as to make informed business decisions
24
– i.e. not only understand past actions but
also monitor present ones and forecast future outcomes.
GMIS provides a uniform overview of all
indicators relating to the management
and operational support of a lottery business. Design and structure of the system
is based on Key Performance Indicators
(KPIs) that measure all the relevant factors that are crucial for the success of the
organization. These indicators can be correlated with targets, and through security
access rights, information is viewed only
by authorized persons.
budget requirements. It also evaluates
the performance of sales representatives
against predefined budgets and goals, such
as turnover, scheduled routing, and merchandising compliance.
Specifically concerning operations management, it offers an efficient way of
achieving operational excellence by continuously monitoring performance in key
business areas, such as service and maintenance, subcontractor, call centre and
delivery management and legal document
tracking.
Collecting data from all operating systems both internally and externally, GMIS
presents information in predefined, userfriendly visual formats (graphs, charts,
etc.), displays it directly on screen in a
common data format. The software structure is designed to allow the end user to
drill down on any piece of information to
the level of the actual transaction.
POS image is another key factor in strong
sales performance. How are we presenting
our products? What is our current status?
GMIS provides the answer to such critical
questions by providing the opportunity
to upload pictures and videos as well as
providing a real-time image per retailer. Management can thus be in a position to
decide on effective actions and solutions.
Benefits of GMIS for lottery operators are
numerous. It improves cost efficiency,
provides unified and common business
metrics, simplifies internal communication, and increases productivity. In short,
it substantially improves the efficiency of
the sales force.
GMIS also provides benefits for marketing
and operations management. The system
tracks and evaluates product performance
in comparison with past performance and
Finally, GMIS provides valuable insight
into player preferences and behavior, detects fraud and supports responsible gaming practices, by isolating and identifying
relations and patterns in large volume of
data.
GMIS substantially improves a Lottery organization’s decision-making process, and
thus has a highly beneficial impact on its
performance and profitability. By optimizing and controlling information assets,
INTRALOT’s innovative GMIS is a valuable
asset to every Lottery organization.
AGENDA 2010
JANUARY
•Joint EL/WLA Marketing Seminar
“Are the 4Ps in Balance?”
Dates: 27-29 January
Location: London, UK
Host: The National Lottery Camelot
27 - 29 January 2010
London / UK
Hosted by
Marketing
"Are
the 4Ps
in balance?"
Price
Product
Place
SEPTEMBER
•ELU «European Lottery University»
Dates: 29 August-03 September
Location: Porto/Portugal
Host: Santa Casa da Misericordia de Lisboa
XII
Promotion
... the 4Ps... are they in balance in your Marketing Plan and activities
MARCH
•EL European Legal Affairs Seminar
and Public Order
Dates: 8-11 March
Location: Madrid
Host: Loterías y Apuestas del Estado/Spain
MAY
•Joint EL/WLA/AALE
Sports Betting Seminar and MatchInfo
May 3: MatchInfo
May 4-6
Sports Betting Seminar
Location: Marrakech / Morocco
Host: La Marocaine des Jeux
•PR/Communication Seminar
Dates: tbc
Location: Vienna
Host: The Austrian Lotteries
•EL Responsible Gaming Seminar
Dates: to be defined
Location: to be defined
Host: to be defined
OCTOBER
•EUROPEAN LOTTERY Management (ELM)
Dates: to be defined
Location: Geneva, Switzerland
Host: Société de la Loterie de la Suisse Romande
•EL Workshop with Regulators
on the Legal Environment
Dates: to be defined
Location: to be defined
Host: to be defined
•EL European Legal Affairs Seminar
Dates: to be defined
Location: to be defined
Host: to be defined
JUNE
•EL Industry Days
Dates: 2 – 4 June
Location: Barcelona/Spain
Host: Loteria de Catalunya
Followed by:
•EL General Assembly
Date: 4 June, afternoon
NOVEMBER
•EL/WLA Internet Seminar
(legislation, games, licences)
Dates: 22-24 November
Location: Roma, Italy
Host: Lottomatica SpA
•EL Instant Game Workshop
Dates: tbc
Location: tbc
Host: tbc
DECEMBER
•EL Security Seminar
Dates: tbc
Location: tbc
Host: tbc
Registration for all our seminars can be done online at
http://www.european-lotteries.org
All events are available on our website (under events)
Announcements are made a few months in advance
NEW ASSOCIATE MEMBERS
SMARTPLAY INTERNATIONAL Inc.
1550 Bridgeboro Road
USA – EDGEWATER PARK, N.J. 08010
GLI Europe BV
Satellietbaan 12
NL – MH 2181 HILLEGOM
25
HUGHES Network Systems GmbH
Ottostrasse 9
DE – 64347 GRIESHEIM
Workshops
XII
Held in Malta
31 August – 4 September 2009
Mario Cassar
Maltco
When the European Lottery University
(ELU) program was started, no one would
have imagined that it would reach the
twelfth year mark. After Trinity College
(Dublin 1998), Heriot-Watt University
(Edinburgh 1999), Universidad de Salamanca (Spain 2000), Montpellier (France
2001), University of Salerno (Italy 2002),
the Universitat Autonoma de Barcelona
(Spain 2003), the University of Siena 2004,
the University of Santiago de Compostela 2005, the University of Zadar – Croatia
2006, it was only befitting that the tenth
edition of ELU be held back in Dublin,
where it all started.
But, the ELU kept on going and growing:
ELU XI in Dubrovnik, with the highest
number of participants ever, and now in
Malta. For ELU XII.
Ray Bates, Reidar Nordby, Jr
26
Originally supported by Ray Bates, then
EL president, championed and organized
by Bernadette Lobjois, Secretary General
and designed and moderated by Gilbert
Workshops
Rehayem since its inception, the ELU is
now considered to be the finest and most
successful management training of its kind
in the Lottery world. In 12 years, it has attracted over 500 managers (covering all
corporate functions) mostly from Europe,
plus some from Africa, Asia and North
America.
ELU has been enhanced, improved and
enriched to offer a unique combination
of academic presentations, case studies,
workshops and networking.
The ELU is a management education
program that includes discussions and
presentations on issues ranging from organization structure and performance to
marketing/sales, legal, finance, corporate
social responsibility, technology, communications and PR, new games, emerging
trends and corporate strategies. This program addresses the most relevant challenges and opportunities that the Lottery
sector is facing. During the 5 days seminar,
the participants shared their experience
and expertise in their specific fields. In
addition, guest speakers, added their insight and input in the areas of Sports Betting, Corporate Social Responsibility, Best
Practices in Retail Network, Gaming and
Risk Management and Marketing Scratch
Games.
The seminar ends with a global discussion
with Lottery experts and the panel My Lottery from A to Z gave the opportunity to
each participant to put one more question
and to ask for explanations on topics that
were not described during the seminar.
In addition to the several workshops and
as part of the program, the participants
had also to participate in three group case
studies, Build a modern lottery Organisation, A New Game from Idea to Market
and Regional Overview. As example of
the interaction and group interaction, the
first group case study involved the development of a modern Lottery organization
within a framework that is progressively
assembled from the workshops and discussions. The second Group Case study
consists on defining the tasks necessary to
bring a new on-line game to market, and
the third group case study to identify market trends by product category by country.
jury of experts and the best scratch game
developed by team.
A well-deserved thank-you to Mario Cassar, CEO of Maltco and his team, for their
typical Maltese warm hospitality, the EL
Secretary General Bernadette Lobjois, for
the overall excellent organization of the
seminar, and a special debt of thanks to
all the speakers involved in the seminar
as well as especially to all the participants
who made the ELU, by their comments,
participation and involvement, a beneficial, useful and entertaining initiative.
The next ELU promises to be even more
exciting… rendezvous in 2010, in Portugal!
The photos, in box, include the winning
team, Mercury for building the best modern Lottery organisation, as judged by a
Gilbert Rehayem
Moderator
Mercury winning team
27
Workshops
Responsible Gaming Seminar
Barcelona, 28 – 30 September 2009
risdictions. His summary was that between
2004 and 2009 there was little research
evidence of any significant increase in the
numbers of adolescents playing games for
money on the Internet. Also, he claimed that
there was no conclusive evidence that Internet gambling offers more risk of harm than
other forms of gambling. He provided many
insights into the characteristics of games
that might be problematic for vulnerable
players. One interesting conclusion was that
there was no evidence that the payout ratio
impacted on the level of problem gambling.
His parting message was to learn about your
players through deep research, and develop
games and facilities that would be consistent
with, and encourage safe and responsible
player behaviour.
Friedrich Stickler, Joan Laporta, Mercè Claramunt
The EL President, Friedrich Stickler,
opened this Seminar on Responsible Gaming
(RG) - warmly and professionally hosted by
Mercè Claramunt, Director of the Loteria de
Catalunya- with encouraging words to those
who were embarking on the task of Certification for the first time, and congratulations
to the ten EL Member Lotteries who had
already been certified as being in alignment
with the EL RG Standards. Joan Laporta,
Catalan Minister of Internal Affairs, then
addressed the 75 Delegates from 22 European States and displayed a genuine interest
in Social Responsibility and encouraged all
those present to embrace Responsible Gaming practices as being the most professional
and business-like way to develop gaming
over the coming years. He referred to recent
positive EU Court rulings, but urged that
State Lotteries should continue their drive
to implement the highest standards of responsibility in all their operations. The tone of the Seminar was set and underpinned by two excellent keynote presentations from David Grayson, Director of the
Doughty Centre for Corporate Responsibility and Dr Jonathan Parke of the University
of Salford Centre for the Study of Gambling.
The messages from David Grayson were
clear …
28
David Grayson
• There was much international evidence
that companies who did not behave responsibly would be “punished by the
consumers”, while those who behaved responsibly would be “rewarded”
• It is now popular for companies to commit
to 3 P’s - People, Profit and Planet
• Good companies were moving across a
spectrum of customer relations where “trust me” is no longer a sufficient corporate claim, but the consumer wants the
company to “tell me”, and finally wants
the company to “show me”
• Customers are becoming more powerful
and enabled, with “choice editing” and
“choice influencing” of products and services becoming the norm.
• Be careful not to be accused of engaging
in “Greenwashing”
Dr Parke presented an extensive overview
of Internet gambling behaviour across a
number of European (and International) ju-
The Lottery-specific contents of the Seminar
were developed and designed by the members of the EL Responsible Gaming Working
Group under the very able chairmanship of
Anne Pattberg, Head of Responsible Gaming
at Camelot. Anne delivered a historic perspective on the development of the Responsible Gaming Standards and Certification
process, which set the scene for a number
of papers covering the practical experiences
of lotteries who had achieved Certification.
Carlos Bachmaier from LAE explained in
some detail, and with great clarity, how the
overall Certification process works and, of
equal importance, why the process was designed in the way it is presented.
This was followed by a very interesting pair
of back-to-back presentations from Guillem
Salvans (Head of Responsible Gaming at the
Loteria de Catalunya) and Eloi Montcada
(Director of the Consultancy Department of
LaVola Sustainability Services) who acted as
Assessor for the Loteria de Catalunya. The
main messages were:
From the Lottery point-of-view …
• Must have strong Senior Management
support for the whole process
Workshops
Areti Markou, Business Development Manager at Intralot gave a short presentation
which demonstrated the importance attached by Intralot to providing support tools
and facilities in their lottery systems to support the RG aspirations of lotteries.
• Must involve all company employees
• Must have specific budget, including dedicated human resources
• Many benefits accrue to the Lottery company from the certification process
From the Assessor point-of-view …
• Assessor’s approach is very important;
Lavola developed their own templates for
the audit, based on the EL Standards
• In depth Audit of sample of 45 Retail Sales
Agents was very important
• 15 days for the whole process was adequate
Guillem gave an excellent synthesis of the
whole RG effort when he said that “Giving
the odds of winning a prize in an instant
game as 1-in-4 was Marketing. Giving the
complete prize structure of an instant game,
including the odds of winning the top prize,
was Responsible Gaming”.
Herbert Beck (Austrian Lotteries) and
Konrad Supper (WestLotto) shared their
experience of the Certification process.
Konrad summarised the process as a case
of “Nothing new, but a new state-of-mind”.
He emphasised that many lotteries were already operating with the highest standards
of RG, but they now had to change the way
they regarded and classified such behaviour.
Herbert echoed this point and reinforced
the point by emphasising the importance of
“documentation, documentation and documentation” of all the existing RG processes.
29
Both of these contributors also commented
on how positively all of the staff of their lotteries had responded to being certified as
aligned with the standards.
Delegates were presented with three perspectives on support tools and services that
are available to them. These included Petra
Forsström presenting the services available
from IRGO and the depth of research experts available as well as access to tools such
as GAM-GaRD which can help game designers to be more aware of the potential impact
of games upon vulnerable players. Professor
Peren gave a detailed presentation on the
contents of his tool - AsTERiG ( Assessment
Tool to measure and Evaluate the Risk potential of Gambling products). On the basis
of twelve parameters, the tool shows the
concrete risk potentials of gambling products. The third tool, described by Zenita
Strandanger (Head of CSR at Svenska Spel),
was Playscan which also provides a formal
measuring tool to assess the effect of lottery
games on potentially vulnerable players. In
addition to the “tools”, Zenita also described
the Svenska Spel philosophy of keeping their
players in the “green zone” where their participation in gaming was moderate and left
them in no danger.
The message about all such “assessment tools”
is that their effectiveness is heavily dependent
on the subjective values assigned to the variable parameters contained within the models.
The final session comprised two presentations, one from Joan Espuelas, Project
Manager with the Gaming Regulator in Catalunya, who described the voluntary Code of
Good Practice which was in place for gaming in Catalunya (which included education
for students in the classroom). They used
the Code from Queensland in Australia as a
model and found that the best way to have
such codes generally accepted by the gaming sector is to engage in deep negotiation
with all of the representatives. The second
speaker was Javier Miro, Secretary General
of Andemar (gambling trade association) in
Catalunya. His message was simple. Gaming
is a healthy activity, and operators should
not apologise for offering gaming facilities
to players. It was a question of balancing
the social consequences with the economic
consequences. He saw it as the clear responsibility for each of the gaming sectors in catalunya to respond to and deal with the consequences of its own gaming business.
The remainder of the Seminar was taken up
with practical workshops, “Listening Posts”
and Case Studies where the delegates had
ample opportunity to explore all the elements of RG in detail and to question those
“experts” present who were more advanced
along the path of implementing the Standards and achieving Certification about their
experiences.
Many of the questions and answers will be
of general interest to all EL Members, and
will be included in the FAQ section of the Responsible Gaming & CSR section (password
protected) of the EL website.
Ray Bates
EL Honorary President
Seminar Moderator
Workshops
“Info-Sharing”
Lisbon/Portugal, 12 – 14 October 2009
The Information Sharing Seminar took
place in Lisbon, October 12-14, 2009, under the patronage of la Santa Casa da Misericordia de Lisboa.
The 32 participants were able to measure the
distance covered since the first seminar in
February 2007 in Finland, in which the Key
Performance Indicators (KPI) had been put
on paper. This is how the EL economic study
under the heading “ELISE: European Lotteries Information Sharing Extended” was born.
Jean Jørgensen, WLA Executive Director,
who began this project with EL in 2007
when he was Nordic Lottery Advisor, gave
the background, history and objectives of
the program.
Not only is it important that the Lotteries
share a common language in terms of methodology, it is equally important to structure
and group the data appropriately to analyse
and measure it the same way. Moreover, the
objective of ELISE is to position European
Lotteries as the most liable authority for the
supply of statistics to support key messages
about Lotteries in Europe.
This workshop is meant to specifically define the important data and provide the
tools necessary to achieve it.
Antonio Martins Barata, Ana Paula Barros
For 2008, the study covers two different
areas:
- The Lotteries belonging to the European
Union (27 states)
- All EL Lottery Members (73)
The first presentation is that of the Danish
Lottery, on its Lotto game and the impact of
the economic crisis on this game in Denmark.
Anette Østbjerg, Head of Corporate branding
and Consumer Insight at Danske Spil, indicates a decrease in sales of Lotto although
the market level seems to be more or less the
same. Lotto is one of the strongest brands in
Denmark. Annually about 70% of the Danes
play the Lotto and some 30% of the adult
population plays every week. Lotto there30
Workshops
fore retains a major market share but despite
everything, there is something wrong! Various studies have been undertaken to revive
the Lotto.
Dorthe Knudsen, Nordic director of Brand
Science further explained the situation giving very precise information on the impact
of the financial crisis on the gaming market
in Denmark. Fear prevents consumers from
engaging in non-material purchases.
Dorthe Knutsen
Subsequently, the presentations offered case
studies of Business Intelligence, highlighting
how to develop this activity, and the importance of numbers and of their interpretation:
Sami Ahtiainen, Veikkaus OY, explained
how his organization created a “Business
Intelligence” department in 2004. In any
business, he said, changes occur rapidly
and it is therefore important to measure the
performances. With a Business Intelligence
service, the collected data is analyzed and
then put at the disposal of the concerned
groups, which can access them anytime. It
took Veikkaus two years to achieve a fully
operational Business Intelligence service.
Then, Olivia Gillibrand of The National Lottery Camelot spoke of the gaming markets
in the United Kingdom, where bookmakers
have a prominent position.
Following changes in fees and new technologies, the gaming market has experienced an
impressive growth. The Decision Support
System is essential to Camelot because it
gives the best possible visibility on an intrinsic market of the Lottery activities, supporting its strategic and commercial decisions.
Wolfgang Leitner, Head of Financial Control at the Austrian lotteries commented
on the interest of the ELISE program for
his lottery and the importance of exchanging views with other lotteries. He said it is
essential to assess the sort of information,
its dissemination to the different sectors
concerned and to avoid duplication, while
improving the communication.
All these presentations raised many questions from participants, and of course a
strong interest in better understanding the
Business Intelligence solution (Decision
Support System). It is clear to everyone that
each organization brings together a lot of information scattered in several departments,
non-structured and measured differently
across the sectors. Therefore, there is a real
need for both the individual Lotteries and our
European group, to be able to collect, model
and measure the data in the same way to enable managers to have a clear vision of the
game activities within their company, their
country and at European level, giving them
a chance to make more pertinent decisions.
To complete this seminar, Estelle Metayer
of Competia gave a keynote presentation
in which she not only indicated the tools
necessary to develop a successful Business
Intelligence solution but also the role that
this service should play in society.
“Strategic Intelligence is a coordinated
activity of research, analysis and distribution of Information necessary to make
strategic decisions.”
ELISE Working Group
The first part of the second morning focused
on reports of the working groups on the
2009 questionnaire. These responses will be
analyzed and then enable the General Secretariat to send a questionnaire taking into
account the comments of the seminar participants. But already at that stage, the participants relate the importance for EL to have
correct data that can be used to defend the
European Lotteries cause. The expansion to
the other lottery associations of the world of
the ELISE terminology and data gathering
principles were also supported.
The presentation that followed had a more
legal sounding to demonstrate that our needs
are in line with competition law
Annick Hubert, lawyer at the Brussels based
For EL, it is important that the transmitted data clearly represent the gaming market within the European Lotteries and that the ELISE report is published in the first
6 months of the year. The EL Secretariat General receives more and more requests
from Members for data, and the cooperation of everyone is needed and encouraged
in this initiative. We can only remind each Lottery of the ELISE importance to
study and analyze its own market.
31
Vlaemminck & Partners, gave the group
a presentation on the European competition law issues which have to be taken into
account when gathering data. She gave an
overview of the legal framework under the
EC Treaty and the application of these principles to information sharing agreements.
Furthermore she gave an assessment of the
activities of the ELISE working group in the
light of the competition law principles. The
conclusion was that the kind of data that are
gathered by the ELISE group and the structure which is maintained, are not in breach or
conflict with EC antitrust law principles. Finally she explained how the current legislative evolutions in several EU Member States
may have an impact on the activities of this
group and how to deal with these changes.
was her definition of Strategic business intelligence and she grouped data into three
categories
- Decision Support
- Useful information
- Information Cycle
Estelle Metayer
Estelle answered many questions that
showed the growing interest in the subject
matter and understanding of the topic.
TO MAKE A SUCCESS OF THIS STAGE,
IT IS PARAMOUNT TO RECEIVE FACTUAL AND QUALITY DATA
Bernadette LOBJOIS
EL Secretary General
Workshops
European Lotteries reception
for EU stakeholders
Brussels, 3 November 2009
“We place social and public order concerns over purely economic interests. We
seek the overall benefit for society, taking
into account the social costs of gambling”, EL’s President told the audience. Friedrich
Stickler urged the EU’s political institutions
to be very cautious in the sensitive area of
gambling where deregulation and the uncontrolled development, especially of remote gambling, must be avoided.
The backdrop to the event was formed by
the exhibit of the Belgian National Lottery’s
archive collection at the Musée des Beaux
Arts, an exhibition which was set up in honour of the Lottery’s 75th birthday.
On 3 November 2009, European Lotteries
hosted a reception at the prestigious Musée
des Beaux Arts in Brussels, welcoming the
Brussels political stakeholders to the new
political season. Addressing EL’s guests,
Olivier Henin, the head of cabinet of Belgium’s Deputy Prime Minister and Minister of Finance Didier Reynders, spoke of
the important contributions by lotteries to
state budgets and to society at large and
expressed his wish that the discussions on
gambling and betting in the Council Working
Group continue under the Belgian Presidency which commences in July 2010.
In his keynote address, EL President Friedrich Stickler presented the values and principles European Lotteries and its members
stand for and act on, outlining the four pillars of EL’s sustainable gaming model: subsidiarity, integrity, solidarity and precaution.
The President highlighted EL and its members’ sustainable contributions to society
and the fundamental differences between
our model and the commercial model for
which private gambling companies stand.
Tjeerd Veenstra, Friedrich Stickler,
Dirk Messens, Dimitris Panageas
32
Winfried Wortmann, Birgitta Kervinen, ENGSO
European Lotteries media briefing
on Bwin/Santa Casa court case
As part of a successful outreach to the European media on the European Court of
Justice’s ruling on internet gambling, the
EU Representation organised a media briefing in Brussels for the correspondents of
European newspapers and news agencies a
few hours after the ruling on 8 September.
The briefing was highly successful and attended by about 25 journalists from some
of the most influential international and
national media. President Friedrich Stickler briefed the press together with Executive Committee Members Dimitris Panageas
(OPAP) and Tjeerd Veenstra (De Lotto) as
well as Dirk Messens, head of the legal service of the Belgian National Lottery. Our legal
advisors Philippe Vlaemminck and Annick
Hubert were also present and provided additional legal background to the members of
the press corps.
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