www.PublicGaming.com JANUARY/FEBRUARY 2024 ROMANA GIRANDON President & Chief Executive Officer, Loterija Slovenije and President, The European Lotteries (EL) FOR THE BENEFIT OF SOCIETY: EL’S STRATEGIC OUTLINE 2023-2025 ALSO INCLUDING INTERVIEWS WITH … ; Jan Karas Chief Executive Officer, OPAP ; Pat McHugh Chief Executive Officer, Scientific Games ; Nikos Nikolakopoulos Chief Executive Officer, INTRALOT, Inc.
LETTER FROM THE CEO To our valued clients and partners, The new year brings the next chapter of our journey together, and I couldn’t be more excited. In my previous open letters, I promised we’d continue our journey on the road, meeting clients at their desks, not ours. This amplified travel has brought us invaluable insights that position us to continue playing a small part in achieving a visionary future for our industry. Amid rapid advancement, our collective dedication and adaptability demonstrates that when we work together, we move everyone forward and can achieve almost anything. Whether you’re a startup or an industry leader, we believe everyone is entitled to GLI’s world-class service; you should expect nothing less. We are never too busy to put all our customers in the express lane, remaining fully equipped to support you with 1,600+ highly skilled team members. In fact, to guarantee that your needs are always met, we are continuing to add to our delivery team globally. With the acquisitions of SIQ and iTech complete, our businesses are not only service-oriented, but are also fully integrated and ISO-certified, ensuring there’s no one better suited to support your path to success globally. Over the last 35 years, we have excelled by meeting our customers wherever they are in their product journey. Our end-to-end integrated compliance and testing solutions are constructed so that the results from each stage of evaluation flow into the next and build from there. From early regulatory advisory, QA, pre-compliance, and compliance testing, to load, performance, and interoperability testing, working with GLI provides you the advantage of having the same team from start to finish. This is how we get you to market quickly. Whether projects are simple or complex, you can count on GLI, because when it comes to delivering quality and accuracy – every part of the process matters. Given the steady growth of high-stakes security breaches and the expansion of iGaming, iLottery, and digital sports betting, our cybersecurity division, Bulletproof, has been exceedingly busy keeping you safe. We’ve introduced a full SOC monitoring center in Las Vegas, Nevada, expanded our team of professionals, and added several U.S. Gaming and lottery customers to our already robust international portfolio. With cyberattacks projected to cost the global economy over $10.5 trillion by 2024, our Bulletproof experts are well-prepared to ensure safety and prevention as well as support during crisis. The results of our recent surveys, plus speaking with regulators, suppliers, operators, and lottery professionals at events across the world, reaffirms the confidence I have in our future. We’re advising lotteries amid evolving jurisdictions; welcoming new gaming opportunities; and are laser-focused on concerns surrounding AI, unregulated gaming, geolocation and KYC, money laundering, and responsible gaming because, when our clients tell us what they need, we listen. No matter what comes your way, we will offer the support you deserve. I’m excited for the busy start to our year. We’ll be meeting clients at ICE, the Indian Gaming Tradeshow, and at our premier annual event – the Regulators Roundtable – held at the Palms Resort in Las Vegas, April 24-25. With another year of record-breaking attendance expected, I’m looking forward to seeing new and familiar faces as we dive into the largest challenges and opportunities facing regulators today. Thank you all for your continued trust – we never take it for granted. Wishing you a prosperous new year and looking forward to seeing you somewhere on the globe. Sincerely, James Maida gaminglabs.com ILLUMINATING YOUR PATH TO GREATNESS
© 2024 IGT. The trademarks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors. ColorPlay is a visually captivating, player-facing brand that captures the essence of Infinity Instants games. With ColorPlay, players and retailers can quickly identify games that feature Infinity Instants’ colorful game symbols under the surface. Introducing ColorPlay™ for Infinity Instants™! $2 Scratch the entire play area to reveal 12 symbols. Reveal 3 matching symbols, win the corresponding PRIZE in the PRIZE LEGEND for that symbol. 3 SYMBOLS PRIZE PRIZE LEGEND . . . . . . . . . . . . . . . . . . . . . . $2 . . . . . . . . . . . . . . . . . . . . . . $5 . . . . . . . . . . . . . . . . . . . . . $10 . . . . . . . . . . . . . . . . . . . . .$20 . . . . . . . . . . . . . . . . . . . . .$40 . . . . . . . . . . . . . . . . . .$100 . . . . . . . . . . . . . . . . $200 . . . . . . . . . . . . . . . . . $500 . . . . . . . . . . . . $2 , 000 . . . . . . . . . $30,000 r t reveal 12 symbols. Rev al 3 matching symbols, win the corresponding PRIZE in the PRIZE LEGEND for that symbol. SYMBOL P IZE VOID SHAMRCK SHAMRCK SHAMRCK RAINBOW RAINBOW LADYBUG LEPRCAN CHRRIES SEVEN HORSHOE HORSHOE DICE
4 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 Publisher & Chief Executive Officer Paul Jason pjason@publicgaming.com President Susan Jason sjason@publicgaming.com Brand and Design Dan Eggers Design Lottery Industry Consultant Jim Acton Honored Founders Doris & Duane Burke Subscriptions United States: $145 USD Canada & Mexico: $160 USD All other countries: $225 USD For email address changes, subscription requests and requests to be placed on our e-Newsletter distribution list, e-mail Susan Jason at sjason@publicgaming.com Contact Information PGRI, Inc. 1769 Flagstone Terrace, The Villages, FL 32162 PublicGaming.com T: +425.449.3000 F: +206.374.2600 Public Gaming International Magazine Published six times a year and distributed to readers all around the world. Electronic version is e-mailed and is also available on our news website: PublicGaming.com January/February 2024 Volume 53, Issue 1 ©2024 all rights reserved. Public Gaming Research Institute cISSN: 1042-1912 10: FAST FORWARD TOWARDS TRANSFORMATIVE DISRUPTION Jan Karas, Chief Executive Officer, OPAP 12: FOR THE BENEFIT OF SOCIETY: EL’S STRATEGIC OUTLINE 2023-2025 Romana Girandon, President & Chief Executive Officer, Loterija Slovenije and President, The European Lotteries (EL) 22: REINVENTING SUCCESS TOGETHER: EMBRACING TRANSFORMATION AND INNOVATION IN LOTTERY GAMING Nikos Nikolakopoulos, Chief Executive Officer, INTRALOT, Inc. 26: APPLYING THE SCIENCE TO DIGITAL ENGAGEMENT Pat McHugh, Chief Executive Officer, Scientific Games CONTENTS J A N U A R Y / F E B R U A R Y 2 0 2 4 10 12 22 26 FEATURED INTERVIEWS AND PANEL DISCUSSIONS
6 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 Visit Our Family Of Websites PublicGaming.com industry news & information PGRITalks.com videos of conference presentations PublicGaming.org PGRI conference information PGRIDigitalLibrary.com magazine archive of past issues PGRIDirectory.com listing of lotteries and vendors PGRIAwards.com Showcase of industry honorees recognized by the Lottery Industry Hall of Fame PGRI Lifetime Achievement Award Sharp Award for Good Causes Lottery Industry Statesman and Stateswoman Award Rebecca Paul Mentorship Award Collaboration Award Subscribe To Our Free Digital Newsletters Receive our daily newsletters at no charge, published 5 times a week to bring you the latest breaking news in the global lottery industry. Send an e-mail to: sjason@PublicGaming.com with “add to Daily Digest list” in the subject line. 16: THE EUROPEAN LOTTERIES: STRATEGIC OUTLINE OVERVIEW 2023-2025 18: THE LAUNCH OF THE NEW “ANNUITY LOTTERY” EURODREAMS LOTTERY 24: A GLOBAL GAMES-OFCHANCE INDUSTRY IN FLUX: AN INTERNATIONAL PANEL Discussion with Sarah Taylor, Executive Director of the Hoosier Lottery in Indiana Younes El Mechrafi, Chief Executive Officer, la Marocaine des Jeux et des Sports (MDJS) Andreas Kötter, Managing Director, WestLotto (Germany) and Chair of EuroJackpot Callum Mulvihill, Chief Commercial Officer, The Lottery Corporation (Australia) Rebecca Paul, Chief Executive Officer, Tennessee Lottery and President of the World Lottery Association 28: IS SPORTS BETTING THE BIGGEST THREAT TO LOTTERY IN 2024? Simon Jaworski, Founder & CEO, Lotto Research 29: IGT NEXTGEN: SECURITY AS A PROCESS 34: SIX MEGA-GAMES OF 2023: IN SEARCH OF THE SCIENCE INSIDE Scientific Games 38: NEOGAMES: WORKING WITH LOTTERIES ON THEIR DIGITAL JOURNEY Chris Shaban, Executive Vice Preident of Global Business and Customer Development, NeoGames 40: SUCCESS IS BUILT BY PUTTING THE PLAYERS FIRST Fennica Gaming FEATURED ARTICLES All performance indexes based on Scientific Games MAP™ fiscal year data for U.S. lotteries. LuxShimmer®, MAP™, and Sparkle® Select are trademarks of Scientific Games, LLC. © 2024 Scientific Games, LLC. inventive four-member family of games with a nod to the state’s culture and rich history of gold. $5,000 ORO, the $2 game, would go on to win the coveted North American State and Provincial Lotteries Association’s 2023 Best New Game award. Branded ORO – which means gold in Spanish – all the games were designed using a precious metals theme with the gold and twinkle Sparkle Select patterns on blue. Across the family, the $2 game was a stand-out. The two-number match game gives players extra value with a $1,000,000 second-chance win opportunity. It was the best-selling New Mexico Lottery game in the $1 to $5 price point category by per capita sales, performing 52% higher than other $2 games. The entire family, which includes an extended play game, has performed very well for the Lottery. “Families of games are important for New Mexico Lottery players because they provide a cohesive look, an advertising campaign featuring multiple price points and an opportunity to appeal to many different players with different play styles, price points and top prizes,” said Karla Wilkinson, Director of Gaming Products, for the New Mexico Lottery. “We were thrilled with the game’s performance. The $2 and $5 price points sold out in just eight weeks. introductory price point for players,” Wilkinson shared. “The $2 ORO scratcher also received the most entries into the second-chance promotion, which supports that it was an entry point for new and infrequent players. Wilkinson said that the success of the ORO family was a perfect blend of game appeal (look), prizes, a secondchance promotion and a comprehensive ad campaign. Congratulations to these lotteries for a job well done. These games reflect the innovative decisions made by product managers to learn what their players prefer in a scratch game entertainment experience. For more information on these top performers, contact your Scientific Games representative 8: FROM THE PUBLISHER Paul Jason 20: POWERBALL’S AMAZING FIRST 24 HOURS OF 2024 MUSL NEWS (Multi-State Lottery Association) 43: PHOTO COLLAGE: Scenes from PGRI Lottery Expo Nashville Conference 46: PULSE OF THE INDUSTRY: Synopsis of recent gaming industry news 50: THE TRANSFORMATION OF THE LOTTERY SECTOR Philippe Vlaemminck – Managing Partner Vlaemminck.law DEPARTMENTS 34 29 20
8 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 From the Publisher We have an exciting slate of interviews for you in this issue. Elected president of EL (European Lotteries Association) last June, Romana Girandon (CEO of Loterija Slovenije) and the EL Executive Committee have updated the mission and purpose of the trade association for a modern world that continues to evolve faster than ever. We are pleased to not only share her vision, but also the 2-year EL Strategic Outline. One sign-of-the-times that gives us plenty of reason to be hopeful: The four biggest lottery industry associations are all led by female presidents: Rebecca Paul for the World Lottery Association (WLA), Cindy Polzin for the North American Association of State and Provincial Lotteries (NASPL), Sue Van Der Merwe for Asia-Pacific Lottery Association (APLA) and Romana for the EL. And thank you to Pat McHugh, CEO of Scientific Games, and Nikos Nikolakopoulos, CEO of Intralot Inc., for sharing their visions of the future. The role of technology partner to government lotteries has evolved into a genuine collaboration, with the objectives and action-plans of both the operator and the technology partner aligned so that everyone is pulling in the same direction. Commercial partners are investing in the development of new technologies, and applying more creative ingenuity to strategically deploy value-adding solutions to enhance the player experience and improve operational effectiveness and efficiencies. And lottery operators are more receptive than ever to the introduction of new and innovative initiatives, and applying a more sophisticated risk-return calculus that unlocks resources to drive ongoing success and increased funds for good causes. And so the Golden Era of Lottery continues unabated. An inspiring example of the modern lottery leader’s approach to business can be found at OPAP in Greece. CEO Jan Karas describes an ambitious, entrepreneurial action-plan that is being executed poste haste. We’re talking “Fast Forward Toward Disruptive Transformation”! Players seeking great experiences now have expectations that evolve faster than ever, and OPAP is on a tear to meet and exceed those expectations. The OPAP leadership team philosophy and posture of bold change-agent positions it and its customers for a bright future. MUSL (Multi-State Lottery Association) does it again! The hits just keep on coming as the new year starts off with a huge bang. New Year’s Rockin’ Eve with Ryan Seacrest had over 22 million viewers, the highest late-night audience in two years. Great fun for the lucky winner of Powerball’s first million-dollar jackpot. And a really great boost for one of the most valuable and well-known consumer brands in the world: Powerball®. And what kinda luck is it to have the fifth largest Powerball jackpot ($842 million) ever won to be drawn on the first day of the year! Congratulations to MUSL members for continuing to lead the innovation train. I have not seen specific metrics on how much crossover there is between sportbettors and lottery. The wait is over. I asked my friend Simon Jaworski to help us understand how sports betting is reshaping the competitive landscape in the gamesof-chance sector, and how we might assess the impact on and implications for lottery. The situation is fluid, but I promise you’ll find this article to be as detailed, as fact and evidence-based, and as comprehensive an update on these issues and how sports betting relates to lottery as can be found anywhere. NASPL always produces fabulous conferences and trade-shows. Check out their schedule at NASPL.org. In this issue, we are pleased to share an executive summary of the “International” panel discussion held at NASPL Milwaukee last November. Sarah Taylor led luminaries Rebecca Paul, Younes El Mechrafi, Andreas Kötter, and CallumMulvihill on a discussion that reveals the universality of so many issues that affect our lottery world. An example of how smart operators are observing and learning from the success of others from all around the world is the relatively recent explosive growth of annuity-style draw games. Congrats to the EuroMillions team of lottery operators for the success of EuroDreams, one of the biggest game launches of the last twenty years. Philippe Vlaemminck, our resident expert on all matters political, legal, and regulatory, drills down on an issue that did not hardly exist fifteen years ago. Enterprising operators are commercializing their success strategies while technology partners are diving more directly than ever into the role of lottery operations. Which raises the question: Does there continue to be a relevant distinction between lottery operator and technology partner? Thank you to IGT, Scientific Games, Neogames, and Fennica Gaming for your editorial contributions. I think we could anoint 2024 as the year of collaboration between Technology Partner and Lottery Operator. Win-Win-Win for players, operators, and good causes. We hope to see you at the WLA/EL Marketing Seminar and ICE Gaming show in London in early February. Mark your calendars for March 12 to 14 of 2024. Join us in Fort Lauderdale Florida for PGRI Smart-Tech 2024 to discuss how the Player Journey runs through Digital Lottery, PGRI’s reinvented conference experience. Visit Euroean-Lotteries.org and PublicGaming.com to get complete info. Lastly, thank you for your support of PGRI and the lottery industry! Paul Jason, Publisher Public Gaming International Magazine
© 2024 Scienti c Games, LLC. All rights reserved. More and more, lotteries around the world are choosing Scienti c Games’ advanced systems technology to grow their business and give their consumers the ultimate playing experience. *Based on total instant game sales, La Fleur’s World Lottery Almanac, 2023.
10 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 Paul Jason: Do you agree with the notion that digitization is imperative for the lottery and gaming industry? What is OPAP’s approach towards digitization? Jan Karas: In my view, the continuous rise of online gaming and the fact that customers generally pursue more and more digital experiences indicate that digitization certainly is the “name of the game” for our industry globally. Lotteries all over the world are seeking ways to remain relevant and successful in a world of everchanging customer preferences. This is where technology steps in. By leveraging the power of data, AI and machine-learning, we can understand customers better, offer personalized experiences, and interact with them in meaningful and innovative ways, ensuring that lotteries are up to date with customer demands and expectations. At OPAP, we consider technology as an enabler of the evolution of our business model. In fact, exploring technology possibilities is one of the priorities of our Fast Forward business strategy. In this framework, we prioritize the digital transformation of our retail and the evolution of our online activities, implement targeted technology initiatives that upgrade our product propositions and customer experience, and promote innovations such as the use of AI to ensure player protection and promote responsible gaming, among other things. What would you consider a success story in OPAP’s digitization efforts? Is there a practical example you can share with us? J. Karas: In the last couple of years, we have focused on disrupting the traditional retail customer journey, promoting a fully digital, paperless, and cashless gaming experience for our customers. This has been possible through several initiatives, but I would like to highlight the introduction of the OPAP Store App, which Fast Forward towards Transformative Disruption Jan Karas Chief Executive Officer, OPAP OPAP.gr PGRI INTERVIEWS PGRI Introduction: Customers seeking great experiences now have expectations that evolve faster than ever. Fortunately, technology and digitalization are creating more opportunities for innovation and growth. Listening to customers and addressing their needs, while exploring technology possibilities, is fundamental to OPAP’s Fast Forward business strategy, which drivers the company’s philosophy of delivering value across its stakeholders’ ecosystem in a sustainable and socially responsible way. OPAP, a member of Allwyn group, is the leading gaming company in Greece and one of the most renowned in the industry worldwide. Founded in 1958, it operates and manages numerical lotteries, sports betting games, horseracing mutual betting, lotteries, instant win games and video lottery terminals (VLTs). Moreover, OPAP is a leader when it comes to embedding global Responsible Gaming principles into every aspect of its operations. At the same time, OPAP holds a prominent position among corporate social champions in Greece. Through its extensive Corporate Responsibility program, which focuses on Health, Sports and Employment, the company supports Greek society in practice. Our discussion with Mr. Karas drilled down on the importance of embracing change even when it is disruptive. That is the pathway to Fast Forward into a future that meets the expectations of the modern consumer, the marketplace, and OPAP stakeholders. You'll see that OPAP is indeed implementing an ambitious strategy to deploy some of the most advanced technologies available today. And looking forward to continuing its role as bold change-agent to position itself and its customers for a bright future. Continued on page 32
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12 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 Paul Jason: I’m sure that we all feel like the issues we’re dealing with are more complicated and difficult than they have been in the past. But sometimes they actually are, and isn’t now one of those times? Romana Girandon: We live, to be sure, in a perplexing time. Changes in consumer behaviour and the way products and services are distributed; the way regulatory frameworks are evolving to address technological change and changes in public policy objectives … it certainly does seem like we have more paradigm-shifting changes to contend with than ever before. Thankfully, we also have the tools and resources to address those challenges. Technology is empowering us in ways we could not have imagined in the past. We need to embrace revolutionary innovations like Artificial Intelligence for their potential to positively impact the way we overcome those challenges, the way we improve operations and produce value for our stakeholders and for society. On the other hand, we want to be vigilant to make sure these new tools and capabilities work for us and not the other way around. Sometimes I wonder if constant attention to our phones and use of social media, e-mail and other tools that are meant to save time have actually taken on a life of their own. I still think digital media has transformed our lives for the better. And For the Benefit of Society: On EL’s Strategic Outline 2023-2025 PGRI INTRODUCTION: Elected president of EL (European Lotteries Association) in June 2023 at the EL Congress Croatia, Romana Girandon and the EL Executive Committee set about the task of updating its EL Strategic Outline (see pages 16). The timeless principles that EL membership holds dear are affirmed along with the outline of values, strategic goals, and actionitems to guide them in their mission to serve society. Remember when strategic plans had five and ten year timelines? Keen on ensuring ongoing relevance in a climate of rapid change on every front, the EL Strategic Outline is designed to be a living document that is amenable to revision and updates that keep us focused on the values and actionplans that support the most positive social impacts. Following is our discussion with Ms Girandon on how to think about that mission, and on how to stay true to principles while being flexible enough to navigate a world that is changing so quickly. Learn more about the conferences, educational seminars, and services of EL at european-lotteries.org. Romana Girandon President & Chief Executive Officer, Loterija Slovenije and President, The European Lotteries (EL) PGRI INTERVIEWS EL welcomes the challenge to lead the way and contribute towards the goal of regulating games-of-chance for public good.
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14 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 I think AI will do the same, probably even more so. Let’s just make sure we are not overwhelmed by our own inventions. The very first sentence of the EL Strategic Outline Overview vision statement is “United in diversity, EL will be recognized as an association of responsible and successful members making the most positive social impact.” R. Girandon: It is time for us to think carefully about how to evolve our sector to adapt to changes and stay aligned with the mission to serve society and stakeholders of lotteries. We need to identify our strengths and values as well as services we perform for society in order to forge the best pathway forward. While some of the questions we face may not have black-andwhite answers, we need to be decisive and principled in our resolve to stay true to our mission to serve society. The business models and strategies of EL members and associate members are incredibly diverse. We operate within different public policy and regulatory frameworks; we have different languages, different cultures, different game portfolios, different operating and distribution models, etc. etc. But we are united in our mission to make the most positive impact on society. We all share a common heritage of operational integrity and transparency as we provide responsible games for public good. Our Strategic Outline guides and empowers our action-plans to build on and continue our success, delivering value to our stakeholders and society for many years to come. The second thing we notice in the Strategic Outline is less focus on regulatory and public policy issues and more a call-to-action in support of values like sustainability, integrity, and service to society. R. Girandon: We want to focus on areas which we can directly and materially impact. We will still do everything we can, so that relevant EU and European decision makers understand the role of lotteries in Europe as well as their heritage; and also, that they provide a regulatory framework that enables us to achieve our mission. We still do expect the European Court of Justice to enforce the laws that prohibit illegal and irresponsible online gambling. We continue to establish and fight to uphold the highest standards across Europe. The EL Strategic Outline does state our goal to continue to influence the debate about how the sector should be regulated to serve society and prevent illegality as well as any socially harmful practices. At the same time, we recognize the limitations of our control over external factors like the actions of the EU Commission and ECJ as well as individual EU member and non-member countries. When it comes to the EL strategic plans, our attention is focused on the things we can do to impact and shape the future of the sector in a positive way. We feel that this is a time when it is more important than ever to channel our energies and resources in the most productive ways possible. That calls for a clarity of who we are and what we stand for; and a purpose statement that is more action-oriented than aspirational. I should point out that our 5-word headline, For the Benefit of Society, continues to represent our most foundational mission statement. Our transition towards this focus on action-based values has actually been years in the making. The current Strategic Outline is a living document with a 2-year timeline to enable ongoing revisions. We are prepared to evolve our action-plans to keep up with a world that is changing at a faster rate than ever; while staying clear and true to our core values. The notion of a government lottery that is focused on lottery gaming with margins that are protected by the government in order to maximize funding for good causes … is that gone, no longer a relevant notion? R. Girandon: Lottery has always had a special role in society. According to the original Treaty on European Union, the founders wanted to strengthen the solidarity between their peoples while respecting the history, culture, and traditions of each member state. EL continues to advocate for preservation of those principles on the political and judicial international level and, where requested by the member lottery, at the national level. In order to be effective in our advocacy role, our message needs to reflect a recognition for how the political climate is changing, and how that affects the real world of regulatory actions. For instance, I have not heard the term “government lottery” in Europe for many years. Ownership structures have changed so that organizations and performing lotteries including sports betting and other games of chance, are operated by either the states, various public entities, or commercial companies. Regardless of whether the lottery operator is held by private, public, or state shareholders they still have to be operated For the Benefit of Society. That is all that is important for us. In spite of their diversity, the members of EL are all dedicated to service to society. Maximizing funding for good causes is just one side of the equation. Protecting the players and implementing responsible and sustainable practices are just as important. Generating funds by doing harm to society would still be bad even if you shared some of the funds for good causes. The impetus to align with the values of the EL has less to do with ownership than with the governance that determines corporate culture and mission. EL stands shoulder to shoulder with those whose corporate culture and actions align for the purpose of serving society in all those aspects. We notice that gaming operators which historically have not respected the laws of each EU member state are now wanting to become legitimate and get licensed to operate properly within the laws of every state where they operate. Does EL welcome them as members? R. Girandon: Not automatically, no. EL is not just about respecting the laws. That is a minimum baseline standard that does not begin to meet the value system represented by the membership of EL. We are about embracing a set of values that support a mission to protect the consumer and serve society. For that value to be genuinely embraced, it can’t be based on a business We are prepared to evolve our action-plans to keep up with a world that is changing at a faster rate than ever; while staying clear and true to our core values.” Continued on page 32
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16 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 Forward thinking We are assertive and ambitious. We actively foster innovation, creativity and development. We collaborate to anticipate trends, share visons and discover newways. We see opportunities and introduce changes. Our initiatives bring fresh perspectives, marked by change, adaptability and improvement. We are committed to learn and grow. Sustainability We are a diverse community that aims to make our positive social impact bigger and more far reaching. Our common heritage of responsible games for public good is our core, but we understand sustainability comprehensively. We promote diversity, embrace equality, operate transparently and visibly enact environmentally friendly practices. We share sustainability know-how, while actively engaging our stakeholders. Integrity We promote clarity – in messages, activities, operations and intentions. Collectively, we raise standards in the field and adopt a zero-tolerance policy towards any kind of unethical practices. We strictly enact compliance and respect legal frameworks. Through awareness raising and advocacy work with governments and regulators, we strive towards greater public safety. In our actions and communication, we are reliable, honest, truthful and transparent. We treat internal and external stakeholders fairly and equitably. THE EUROPEAN LOTTERIES: STRATEGIC OUTLINE OVERVIEW 2023-2025 For the Benefit of Society PURPOSE We promote and defend a sustainable lotterymodel, empowering our members to become successful and responsible organisations that inspire millions of players across Europe and generate funds for the public good. VISION United in diversity, EL will be recognized as an association of responsible and successful members making the most positive social impact. EL will deliver outstanding services that understand and illuminate the times and future challenges of lottery sector. It will help its members implement the highest standards of safe entertainment, lead the sustainability transition and proactively facilitate innovation. Members and employees will be proud to be part of EL and will see it as a key longterm driver of their success, one that enhances their reputation and stakeholders’ trust. EL will be known as a proactive expert organization. It will be a stakeholder that will be regularly consulted by EU institutions and invited in decision making processes regarding gambling sector and related policy areas. To defend sustainable lottery model, EL support its members on a supra-national (EU), as well as, where deemed needed by the concerned Member, on a national level. OUR CORE MESSAGE For the Benefit of Society STRATEGIC GOALS FOR THE PERIOD 2023 - 2025 To pursue our vision and purpose, we will be aiming to achieve three Strategic Goals. VALUES EL will be recognized as a representative association whose members generate an outstandingly positive social impact. Members will describe EL services as important to their activity and evolution of the sector. EL will be influencing the debates and made itself known to relevant stakeholders as an expert to consult on the sector’s policies, regulations and developments. THE EUROPEAN LOTTERIES FOR THE BENEFIT OF SOCIETY THE EUROPEAN LOTTERIES FOR THE BENEFIT OF SOCIETY 2 3 1 POSITIVE SOCIAL IMPACT By putting our purpose first, we aim to position EL and its members as recognized leaders in Positive Social Impact. We want to clearly distinguish and distance EL and its members from irresponsible practices, by effectively researching, measuring, reporting, communicating & demonstrating that EL members operate in the best interest of society. Specifically, we want to show and compare that the EL community is a clear leader in maximizing social contribution (trough funding good causes; employment; DEI, sustainable governance and more), while minimizing social harm (trough concrete RG effects, environmental impact, etc). EFFECTIVE COMMUNICATION Although EL has established the highest Responsible Gaming standards that all its members are committed to and has also developed several advanced tools, initiatives, guidelines, programmes and platforms that are available to our members, we still feel that our messages are not reaching our members deeply enough, while external stakeholders are completely unaware of them. We want to communicate our standpoints and messages to all relevant parties (members, regulators, political bodies, media, players, public etc) with engaging content in a clear and creative way. RESPONSIBLE INNOVATION FACILITATION While EL does not operate games itself, the association will be taking an even more proactive role as a facilitator for innovation, sharing best practises and insights with its members, addressing future challenges, customer experiences, demographic shifts, digitalization, marketing, communication, and more. EL, in its role as an association, will also innovate towards the evolving landscape of the lottery sector and keep offering state-ofthe-art services. Collaboration with strategic partners and sector suppliers is encouraged where needed. FOCUS AREAS There are three key topics - Focus Areas - that we consider essential for achieving our Strategic Goals. They also shape the plans, priorities and outputs of our Working Bodies. 2 3 1 ABOUT EL The European Lotteries association (EL) is the European umbrella organization of entities operating national lotteries and other games of chance, including sports betting. The members of EL are operating their services for the public benefit. EL is the largest and most representative lottery and gambling sector’s organization in Europe, present in 39 European countries with a total of 70 members, including all EU member states (50 members are in the EU and 20 non-EU member states). EL stands for the sound and sustainable activity model for the benefit of society, based on the values of forward-thinking, responsibility and integrity. EL members only operate in those jurisdictions in which they are licensed by the state and where they comply with the legal requirements (e. g. anti-money laundering, responsible gaming policies, etc), and act as the most responsible operators in each jurisdiction. In 2021 only, EL members secured more than €20 billion for society and directly supported valuable projects related to sport, cultural heritage, art, health care, individuals with disabilities/disadvantages, education, science and many other areas. It is estimated that around half of the European adult population annually participates in the games that are offered by the EL members. THE EUROPEAN LOTTERIES FOR THE BENEFIT OF SOCIETY THE EUROPEAN LOTTERIES FOR THE BENEFIT OF SOCIETY
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18 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 The draws happen twice a week, on Monday and Thursday evenings, and the first draw was on Monday, 6th November. The price of a ticket is €2.50, equaling the EuroMillions rate. The jackpot is spread out over a long time - as much as £20,000 per month for 30 years. The second prize is £2,000 per month for a period of five years. And there are multiple prize categories in total. The best part? The chances of winning at least the reimbursement of the ticket is 1 in 4.66, which is much more advantageous than the EuroMillions’ (1 chance in 12). EuroDreams allows you to earn a phenomenal pension for thirty years. What happens if the winner dies along the way? Jean-Luc Moner-Banet: This is indeed a question that everyone asks themselves. In the case of EuroDreams, the remaining balance of the annuity will be paid in the form of a lump sum to the heirs. With EuroDreams you can now play drawing games all week long! Jean-Luc Moner-Banet: Yes, Monday to Saturday, except Sunday. It's a game that we want to see played frequently, but always responsibly, according to our means. It is important. And it is also a message that comes through this game, the winnings remain in the realm of the understandable. We remain in a human dimension. Are you preparing other projects with EuroMillions partner lotteries? Jean-Luc Moner-Banet: What is certain is that we will not wait another twenty years to launch new games together. We have plans. One of the first would be, why not, to involve other lotteries in the EuroDreams adventure, in addition to the nine already partners. Thanks to its expertise, FDJ (Française des Jeux) will be responsible for draws for the entire EuroDreams community. These draws (held on Mondays and Wednesdays of each week) will be conducted electronically, with the results revealed through a brand-new virtual 3D animation. EuroDreams features a bright colour scheme and pop design to convey its spirit of optimism. Stéphane Pallez, Chairwoman and CEO of FDJ Group, commented: “The launch of EuroDreams is a major event for FDJ and for all our partner lotteries in the Euromillions community. This European collaboration marks a new phase in our development, with players able to win an unprecedented prize of €20,000 a month for 30 years. We are very proud to offer our customers another game spanning multiple European countries, 20 years after the launch of Euromillions.” Check out the wonderful advertisement broadcast on TV and the Internet in France: YouTube link to view the advert: https:// youtu.be/8CpBmLAxHC8. n French EuroDreams ticket: New EuroDreams Lottery Launched in November Jean-Luc Moner-Banet, general director of Loterie Romande, during the presentation of EuroDreams on the 1st floor of the Eiffel Tower. (copyright Victor Fingal) One of the biggest lottery game launches of the past 20 years happened in November of last year. Following other lotteries such as Grand Vie (Canada), Set for Life (Australia and the UK), and Cash4Life (the US), EuroDreams is an annuity lottery—meaning winners get a certain amount of money monthly or annually over a long period of time. This game is aimed at young players with ages between 18-35 who aspire to become financially independent. EuroDreams has been launched by most of the countries which are part of the EuroMillions community, including Andorra, Austria, Belgium, France, Ireland, Liechtenstein, Luxembourg, Monaco, Portugal, Spain and Switzerland.
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20 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 HELLO, 2024!!! If Powerball® could voice its own entry into the New Year, it would surely include a series of exclamation points, especially considering its buzzworthy start to 2024. For the fifth consecutive year, Powerball joined households across America on ‘Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest’ to present the finale of the Powerball First Millionaire of the Year® promotion. Shortly after midnight on New Year’s Day, Pamela Bradshaw, a Powerball player from North Carolina, became the promotion’s $1 million winner in a special drawing broadcast live on ABC. After her winning number was drawn, Bradshaw jumped into the air then collapsed on the floor before embracing Seacrest and her daughter, Joanna Hinson, who joined her on stage. The broadcast captured the emotional, unscripted reaction to a life-changing win. It’s the unique Powerball-based content that the Powerball Product Group has worked to showcase and share with national audiences, as it expands the brand’s reach and relevancy as an entertainment force. According to The Nielsen Company, the New Year’s Eve program attracted more than 22 million total viewers at midnight, with the show’s late-night edition becoming the highest-rated entertainment special on any network in two years. In addition to making national headlines, the promotion’s storyline trickled down to the state level, and nowhere has felt the local impact more than North Carolina, where players have won the national promotion the past two years. “The great thing about lotteries and games like Powerball is how they create amazing events like a $1 million drawing in Times Square on New Year’s Eve,” said Mark Michalko, executive director of the North Carolina Education Lottery. “Seeing a North Carolina player become the Powerball First Millionaire of the Year two years in a row certainly provided a big boost to the fun of Powerball and playing the lottery. This year’s winner not only got her first plane ride and first chance to see the Statue of Liberty but the money to afford her first home. It’s thrilling to be part of such a life-altering event.” Less than 23 hours after Bradshaw was declared the Powerball First Millionaire of 2024, Powerball® captivated the country, again, this time with a New Year’s Day drawing for an $842.4 million jackpot. The jackpot first gained traction and media attention in mid-December after it crossed half a billion dollars, and the spotlight only intensified over the holidays. The $842.4 million Powerball® jackpot was finally won by a single ticket, sold in Grand Blanc, Michigan, marking the first time in the game’s history that a Powerball jackpot has been won on New Year’s Day. The January 1 Powerball drawing also produced six tickets that won prizes ranging from $1 million to $2 million across six states. The New Year’s Day jackpot was the latest in a wave of gargantuan grand prizes generated by Powerball over the past year. The $842.4 million jackpot ranked as the fifth-largest Powerball jackpot and tenth-largest U.S. lottery jackpot ever won. It was immediately preceded by a $1.765 billion Powerball jackpot won on Oct. 11, 2023, and a $1.08 billion Powerball jackpot won on July 19, 2023, with both grand prizes won in California. “Powerball has entered a new era of growth in terms of sales and brand reach,” said Drew Svitko, Powerball Product Group Chair and Pennsylvania Lottery Executive Director. “Over the past year, and again in the New Year, Powerball has demonstrated what a tremendous asset it is for the lotteries that it serves. We are ecstatic to start the New Year with a new boost in funding for the deserving causes in our respective lottery jurisdictions.” n MUSLNEWS MULTI -STATE LOTTERY ASSOCIATION Pamela Bradshaw, a North Carolina player, won the $1 million prize shortly after midnight on Jan. 1. All five finalists were interviewed live on-air by Ryan Seacrest in Times Square before the $1 million drawing. The ticket that won the $842.4 million Powerball jackpot on New Year's Day was sold at the Food Castle of Grand Blanc in Grand Blanc, MI. Courtesy: Michigan Lottery Pamela Bradshaw with her daughter, Joanna Hinson, after becoming the Powerball First Millionaire of 2024. (L-R): NC finalist Pamela Bradshaw, ID finalist Lora-Lee Casady, Ryan Seacrest, NY finalist Maire Kelly Joyce, GA finalist Tracy Lacobie-Goeddel, and Nicole Mineau, RI Lottery proxy for finalist Finton Wallace. Powerball’s First 24 Hours of 2024 From the climactic finale of a national promotion on ABC to an $842.4 million jackpot won in Michigan, Powerball delivered new thrills and life-changing wins in the first 24 hours of 2024.
21 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 Abacus the lottery innovators at retail Putting lottery everywhere. In-lane Self-Checkout Mobile e-commerce Contact the Abacus team for more information: info@abacuslottery.com
22 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 Paul Jason: How is INTRALOT different today than it was three years ago? Nikos Nikolakopoulos: Over the last three years, we've seen remarkable adaptability and innovation from both individuals and organizations in the face of market challenges. However, the lottery industry in general has been slow to embrace new, efficient methodologies, unlike rapidly changing consumer behaviors. Currently, there's a concerted effort to not only preserve these gains but also to spearhead further advancement. INTRALOT has skillfully navigated the pandemic's challenges, emerging with a strategic plan enriched by key insights. Our strategy is rooted in embracing the digital revolution, preferring synergistic, interoperable, cutting-edge solutions over outdated models. Our strategic vision rests on four key pillars, essential for augmenting our influence and shaping the lottery industry's future. The first pillar focuses on solidifying our financial base, backed by significant shareholder investments. These investments aim to deleverage the company, and boost liquidity for growth initiatives. A healthy balance sheet and financial structure are fundamental to our future strategy. The second pillar emphasizes INTRALOT's new Lottery Ecosystem, LotosX Omni, featuring a cutting-edge central gaming system. Combined with a comprehensive, multi-tiered Player Account Management (PAM) system and a streamlined service orchestration layer. This facilitates a versatile, multi-vendor strategy. This strategy ensures seamless integration of leading solutions, bolstering system effectiveness and performance. It grants lottery operators exceptional control and adaptability in their processes. The third pillar is our people. At INTRALOT, we’re dedicated to fostering a workplace that is inclusive of our team members' aspirations and objectives. Central to our ethos is the investment in our human capital, crucial to our success. Finally, the fourth pillar is our investment in cutting-edge tools to improve software development and deployment. This includes automation, game content, product portfolio management, marketing services, and operational excellence, all aimed at fostering innovation vital for our clients' growth and success. It is an exciting time for INTRALOT. I think we can all feel the positive energy and momentum. How about the INTRALOT products that are driving this digital transformation? N. Nikolakopoulos: I’m convinced that the core of this momentum lies in the re-engineering of our gaming central system, a pivotal aspect of our strategic vision. This system has been redesigned to prioritize unparalleled flexibility and seamless interoperability. With its modular architecture, each component functions independently, Reinventing Success Together: Embracing Transformation and Innovation in Lottery Gaming Nikos Nikolakopoulos Chief Executive Officer, INTRALOT, Inc. Intralot.com PGRI INTERVIEWS PGRI Introduction: The Ultimate Player Journey begins with a holistic view towards the overall consumer experience. And there is a renewed willingness and ability on the part of the consumer to take advantage of the wealth of digital tools and solutions that are transforming that player experience. Paul and Nikos met during NASPL Milwaukee in November to discuss the evolving trends shaping consumer marketing and the lottery industry. They delved into how INTRALOT aims to position its customers to unlock their full potential, surpassing the expectations of both retail customers and lottery players.
23 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 enabling specific updates or maintenance without compromising the system's overall efficiency. This strategy substantially diminishes the downtime often associated with traditional unified systems. Our approach is founded on a 'symbiotic ecosystem' model, promoting seamless collaboration among varied system elements. This facilitates swift and cost-effective integration of third-party external solutions. The orchestration layer of our system streamlines the inclusion or modification of components, guaranteeing a straightforward process. The essence of our strategy is the "Lottery Digital Transformation," where adaptability and flexibility are key. We understand that innovation springs from various sources and we want to empower our customers to choose the best mix of solutions and partners for their specific objectives. Our multi-vendor approach, successfully executed in countries like Greece, the Netherlands, Croatia, and Germany, has garnered significant acclaim. This is further validated by our recent engagement with British Columbia, set to launch in Q2 2024. Our technology, thoroughly market-tested, has proven its effectiveness and dependability, and this enhances the value we provide to our network of third-party vendors and offers considerable benefits to our clients— lottery operators—and stakeholders within INTRALOT. You have genuinely embraced the ideal that doing what is best for the industry and for your customers is ultimately what will benefit INTRALOT stakeholders. N. Nikolakopoulos: Our Jackpot Management System (JMS) is a good example of our strategic vision in action. It's a dynamic, multi-dimensional system designed to enhance gaming experiences across different States. JMS showcases our commitment to an innovative strategy by providing a customizable, all-encompassing solution for a variety of gaming formats. It effortlessly accommodates a wide range of games, from fast play to progressive jackpots, and functions smoothly across both digital and physical channels. Its scalable design ensures seamless integration with diverse lottery central systems nationwide, irrespective of their makers. Our ambition extends to forging a synergistic alliance with the Multi-State Lottery Association (MUSL), with the objective of broadening this platform to encompass many U.S. lotteries. This solution is designed not to replace existing systems, but to enhance them, thereby amplifying the industry's ability to distribute games across varied systems and technological landscapes. Marking our venture into this arena, our opening game 'Jackpot USA' is planned to debut with a motivating jackpot of $1 million, that will grow rapidly with sales. We foresee this platform evolving into an interconnection for diverse vendors to launch a multitude of games, leveraging the substantial player base inherent in the multistate environment. Such an expansion in gaming choices is anticipated to draw a broader audience, fostering a cycle of creative innovation and heightened player engagement. We believe that this paves the way for an ecosystem that champions interoperability and endorses a multivendor, best-of-breed methodology for operators. This forwardthinking strategy places equal emphasis on the necessities of operators and players, contributing significantly to the industry by spearheading the adoption of innovative and diverse solutions. What are the other components to Digital Transformation? N. Nikolakopoulos: We believe that consumer behavior is a critical driver in the evolution of digital landscapes. Digitization has notably streamlined processes, elevating both convenience and efficiency. In retail environments, the swift adoption and proficient utilization of digital tools by customers is imperative. The expectation for a virtually seamless online experience has become standard. Crucially, this objective must be achieved while ensuring customer comfort in revealing personal data, concurrently complying with strict lottery regulations. Furthermore, the growing trend of loyalty programs and the necessity for efficient, simplified registration systems are significant. In the retail lottery sector, aligning with these customer expectations is paramount, offering comparable benefits. This approach should include robust age verification, advanced player protection measures, responsible gaming practices, and sophisticated, location-sensitive digital wallets to reinforce security and augment the overall customer experience. None of this happens, though, in the anonymous world of retail commerce. N. Nikolakopoulos: Our strategic direction commences with a critical initial step: streamlining player registration to mirror the efficiency prevalent in top-tier mobile applications. This approach unlocks a plethora of resources, tools, and gaming experiences via our sophisticated Player Account Management system (PAM). In an era dominated by digital advancements, our dedication to technological innovation is imperative, particularly in the lottery domain where the online ticket sales market is burgeoning. This digital shift is in harmony with the expectations of a technology-oriented customer base. I believe it's essential to address customer hesitancy in disclosing personal information. While incentives such as discounts or exclusive offers can facilitate this, the core strategy must focus on establishing unbreakable confidence in the security and privacy of user data. The Lottery brand, synonymous with integrity, enjoys a distinct trust and security advantage in the gaming industry, an aspect that should be leveraged to fortify our digital rapport with users. Player registration transcends a mere procedural necessity; it represents the portal to potent tools for fostering relationships, a key element in our quest for enduring success. As the industry evolves and users become more acquainted with various operators, maintaining competitiveness requires continual innovation and adaptability. Long-term success in the digital realm hinges on forming deep, lasting digital connections. This underlines the importance Innovation springs from various sources and we want to empower our customers to choose the best mix of solutions and partners for their specific objectives. Continued on page 39
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