Public Gaming Magazine May/June 2016

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Thank you to our editorial contributors and interviewees for making
this a special issue. The over-riding theme is how government-gaming
is reshaping itself to compete in a market-place that no longer affords the
kind of monopoly protection that has always been our province. We do
still enjoy a measure of regulatory protection, but even that is changing.
The real driving force of change in the competitive landscape, though, is
the ubiquitous expansion of all forms of gaming. The consumer is con-
fronted with countless options. And not just in the eponymous category
of “entertainment”. We’re facing real competition within the games-of-
chance space. Granted, there will always be a large market of people
who will only play traditional lottery games. But it may be wishful
thinking that our customer base won’t be eroded by the easy availability
of more and more gaming options and the creativity of developers who
are creating a huge diversity of new and exciting gaming products. What
is encouraging is the wealth of ideas and strategies, the tenacity with
which they are being turned into reality in the market-place, and the vi-
sion of our industry’s thought-leaders who share their success stories in
this issue of PGRI magazine.
Jean-Luc Moner-Banet’s powerful presentation at SMART-Tech is
synopsized on page 27 and also can be viewed at He
tackles head-on the issue of the challenge that government-lotteries face
in world of increased competition from a lack of enforcement of regula-
tions, and even outright deregulation, and the ingenuity of for-profit op-
erators when it comes to exploiting the gray areas of existing regulations.
One of my personal take-aways is the need for government-lotteries to
find ways to promote who we are, what we stand for, and why our stake-
holders (which is everyone, really) should care. We know that people
play games-of-chance with the hope of winning something of value, like
money. But the overall value proposition that drives consumer behavior
may be more nuanced than the classical (and neoclassical for that mat-
ter) economic model that focuses on rationalistic, self-interested maxi-
mization of “utility”. Intrepid entrepreneur and investor Mark Cuban
explains “If you want to sell to Millennials, you have to have a social
responsibility component. I invest in young entrepreneurs and they all
know this. They’re all trying to copy the Tom Shoes model.” For every
pair of shoes it sells, Tom Shoes donates a pair of shoes to needy people
in under-developed countries. It sounds to me like everyone is trying to
copy government-lotteries!
Nobody ever accused Harvard Business School professor and re-
nowned author Michael Porter of being a quixotic idealist. But he wrote
an entire book on the subject of “shared value” as business strategy. And
in our interview with legal counselors Beata Guzik and Philippe Vlaem-
minck on page 74, Beata also refers to Michael Porter’s concept that
engaging the audience’s desire to affiliate with brands that reflect their
values is good business strategy. In fact, the mission of government-
lottery to support good causes is a theme that inhabits all of the inter-
views that we do.
Our stakeholders do care. The government-gaming mission of raising
funds for good causes as opposed to the mission of enriching private
shareholders is a competitive differentiator that does matter. We just
have to find better ways to integrate it into our brand and messaging, i.e
to sell it.
Next up in the world of important industry events is the EL/WLA
Industry Days in Marrakech, May 30 to June 1. This is a special invita-
tion-only conference. We will report on this event in both the EL NEWS
(the official publication for the European Lottery Association) and our
own publication. Many of the issues that affect our industry are univer-
sal, manifesting themselves everywhere in the world. The thing is, they
almost always manifest in Europe years before they come onto the radar
in other parts of the world. That is what makes Europe an incredible
looking glass into the future for government-lotteries everywhere. And
Industry Days delivers the most serious treatment of how to overcome
the obstacles, and maximize opportunities, that we will be facing in the
coming years.
Additionally, PGRI is extended the courtesy of conducting the Lot-
tery Industry Hall of Fame ceremony at Industry Days. Congratula-
tions to the four current European inductees: Ioannis Katakis (Head of
Lottery, Win Systems), Stavros Michael (Director Cyprus Lottery), Thi-
erry Pujol (Director Sporting Integrity, Française des Jeux), and Philippe
Vlaemminck (Managing Partner, Pharumlegal).
Visit for more info about all of the upcoming
high-level educational seminars hosted by the EL.
Thank you to those of you who joined us for PGRI SMART-Tech on
April 6, 7 & 8 in NewYork City. Pictures and synopses of the sessions
will be in the July issue of the magazine. Video-recorded presentations
and panel discussions can be viewed at . PGRI holds
two conferences a year. Our next event, Lottery Expo, will be at the
Eden Roc Miami Beach Hotel on September 12, 13, and 14. Three
receptions and two luncheons make it easy to visit with your colleagues
from around the world. We hope to see you there! Visit PublicGaming.
org for conference info, updates, and registration and room reservations
links. ■
The government-gaming mis-
sion of raising funds for good
causes as opposed to the mis-
sion of enriching private share-
holders is a competitive dif-
ferentiator that does matter.
Greatly.
10 // PUBLIC GAMING INTERNATIONAL // May/June 2016
From the
Publisher
Paul Jason, Publisher
Public Gaming International Magazine