Lottery Director John Musgrave said the number of video slot machines at the state’s four racetrack casinos tell the tale, dropping from the maximum of 13,900 to 7,354 currently in use, a decline of 53 percent. “We’ve had quite a decline in the machines approved at the various facilities, and that’s because of competition,” he told the Lottery Commission. “You can see the impact competition has had on us.”Video lottery and table games at the four casinos accounted for more than half of the Lottery’s gross revenue, at $641.36 million, dropping $84.57 million or 11 percent from 2012-13.
“From top to bottom, we’ve stayed focused on the corporation’s mission to serve Tennessee students and their families by responsibly maximizing proceeds for the education programs funded by the Lottery,” said Rebecca Hargrove, President and CEO of the Tennessee Education Lottery Corporation.“We work continually to refine our business model, to introduce innovative and entertaining games for our players, to promote efficiencies and best business practices across the organization, and to provide top-notch support for the retailers that sell the Lottery’s products. In this manner, the Tennessee Lottery succeeds for all of our stakeholders—from the player who enjoys our games, to the retailer who earns the commission, to the student who works hard for and relies upon the scholarship.”
Lottery Director Vernon Kirk said record sales for Instant Games and the "exceptional performance" of Mega Millions contributed to this fiscal year's milestone. Additionally, the number of retailers selling traditional game products jumped from 535 stores in 2011 to the current total of 655. "The success we achieved in Fiscal Year 2014 is the outcome of the groundwork laid over the past few years," Kirk said. "We will continue to look for new ways to offer products and winning experiences that our players want in an effort to build a better gaming future in Delaware."
This is a once in a lifetime opportunity to have the Powerball draw occur from Idaho,” said Idaho Lottery Director, Jeff Anderson. “Everyone who attends the rodeo that evening, or who plays Powerball in Idaho will want to have at least one ticket for the drawing, just to be a part of this historic event. And you never know, we could have a big winner from the draw that evening.”
“Ohioans have multiple options today as to where they spend their entertainment dollar, and we’re pleased to see another record year despite the growing competition,” Director Dennis Berg said.
“We are very grateful to our players for helping us achieve a record year,” said Kansas Lottery Executive Director Terry Presta. “Recognition also goes to the Kansas Lottery staff and lottery retailers across the state, who work hard every day to provide fun and exciting entertainment for our players. We’re already looking forward to next year with its new games and opportunities.” Presta, who became Kansas Lottery Executive Director in January 2014, is especially pleased with the healthy increase in sales of instants and pull tabs. “This is our largest sales category, and also the products we can best control through careful ticket selection and merchandising at retail locations,” said Presta.
European Commission publishes Recommendation on online gambling   The European Lotteries Association supports the goal of protecting consumers and players and in particular minors and stresses that a high level of consumer protection in the gambling sector is reached notably by taking into account the national specificities and cultural features, as ruled on several occasions by the European Court of Justice and confirmed by the European Parliament. Gambling services and advertising for gambling services should only be allowed for operators who are legal i.e. who hold a specific authorisation in the Member State of the consumer. Accordingly, EL calls on the Commission to take a clear position on this matter.  
EL President Friedrich Stickler: “The purpose of the Recommendation – protecting consumers and minors – is laudable. We recall that in the specific economic activity that is gambling, Member States hold the primary competence to decide how to regulate it on their territory in order to best protect consumers. The Recommendation may never prevent Member States from maintaining more stringent measures or from adopting, if necessary, new measures.” In that context, EL points to the importance of Member States taking effective enforcement measures at the national level and the importance of cooperation between Member States, rightly addressed in the 2010 Council Conclusions on a legal framework for gambling and betting in the EU Member States. These Conclusions also called for the recognition of the specific contribution of lotteries to society in any discussion on gambling at the European level.
Santa Ysabel Launching Real Money Online Poker For California Players  According to a report by  Marco Valerio, the Iipay Nation of Santa Ysabel have launched PrivateTable.com and will be offering real money gaming to anyone located in the state of California. PGRI Note: If this report is accurate, it sounds like i-poker is being offered to residents outside of the sovereign territory, and without approval and licensing from the state of California.
“Pollard Banknote is excited about this newly formed partnership with Tatts Lotteries,” said Jennifer Westbury, Executive Vice President, Sales & Customer Development, Pollard Banknote. “This is an opportunity to demonstrate our dedication to developing instant games of the highest quality and security and to showcase our premium and proprietary innovations in the Australian marketplace.”
“This year we began working closely with Pollard Banknote, and we are leveraging both their unique proprietary products and their expertise in multi?jurisdictional games to boost retail sales and broaden the player base for Golden Casket and NSW Lotteries,” stated Bill Thorburn, Chief Operating Officer of Tatts Lotteries. He added, “Our first game with Pollard Banknote, One Million Prestige, featuring Scratch FX®, launched successfully and promoted just in time for our key Mother's Day gifting period and since then has continued its popularity in these markets. We are also excited about our first Spectrum Scratch FX® game which launched on June 23. We will follow this with several more Scratch FX® games in the coming months.”
Online gambling will be regulated by 2015, so that players can play safely and responsibly supervised providers is possible. Holland Casino will be privatized by 2017. And the lottery operators will be given space to innovate more.
“With a collective effort from lottery employees, our quality retailers, vendor partners and loyal customers, we have once again contributed record dollars to Georgia’s HOPE and Pre-K programs,” Georgia Lottery President and CEO Debbie D. Alford said. “We remain focused on our mission to responsibly maximize revenues for these important educational programs.”
According to Senator Ciro Nogueira, the bill introduced to the country's Senate earlier this week may finally regulate the scattered Brazilian gambling market and give the country the unique opportunity to "comply with the rest of the world and boost the economy with new tax revenues."  "Among the 193 countries that are members of the United Nations," Nogueira wrote in the final considerations of Brazil's gambling bill, "75.52 percent of them have legalized gambling, while Brazil is among the 24.48 percent who do not. And we have to consider that 75% of the countries that haven't done so, are Islamic," and therefore are anti-gambling because of their religious beliefs.  The text, which plans to regulate all forms of online and offline gambling, aims to bring Brazil down the same road already taken by European countries like Italy, France, Spain and recently by Portugal – with the creation of a state-controlled gambling market regulated with a system of licenses. "A prohibitive approach to gambling does not work, as the truth is that no one will ever give up playing only because that is forbidden," Nogueira wrote in the text that includes also specific measures to punish those who don’t act according to the proposed regulation.  "Companies that will operate [in Brazil] without a gambling license will be sanctioned with a fine and with imprisonment from one to four years; those who will accept underage players will risk being sentenced from a minimum of three months to a maximum of one year of jail. The current anti-gambling legislation did not stop gambling in Brazil, and today's clandestine market moves more than R$ 18bn. (approximately $8bn.) every year.  According to some studies, if regulated, the gambling market could bring to the State new revenues for at least R$ 15bn. (approximately $6.8bn.) a year," he said explaining that this would be twice more what Brazil gets from the taxes applied on cigarettes and drinks together.
“GTECH is very excited to extend our partnership with Betfred into the Australian market. This is the first such foreign venture we have worked on together, and we hope it is the first of many,” said GTECH International Senior Vice President and Chief Operating Officer EMEA Declan Harkin.
Commenting on the transaction, Marco Sala, GTECH S.p.A. CEO said, "This transaction is transformational for our business. With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape.  It will increase our global scale and with a full suite of offerings and robust customer relationships across the client spectrum, the new company will be uniquely positioned to take advantage of the ongoing convergence across global gaming market segments.  Our expertise across these segments and greater ability to invest in R&D will improve player experiences and benefit our government and business clients.  The transaction will significantly enhance our cash flow and financial strength, and provide clear and achievable cost and revenue synergies."  "We are extremely pleased to reach a definitive merger agreement with GTECH as a result of our exploration of strategic alternatives to increase shareholder value.  This outstanding combination of two global leaders redefines the future of the gaming industry.  Together we are uniquely positioned to provide the industry's broadest and most innovative portfolio of best-in-class products, solutions and services," said Patti Hart, IGT CEO.  "This strategic agreement positions us to further transform the industry while providing meaningful benefit and value to our customers, our employees and our shareholders."

Investor Call

GTECH will hold an investor conference call to discuss the combination today at 2:00 a.m. (Eastern Time).  To access the call, please use one of the following dial-in numbers: 877-546-5018 (U.S. and Canada), 39 0666053188 (Italy) and 857-244-7550 (International), and enter the Conference ID number: 84883561.

 

A live broadcast of the conference call will be available online by visiting GTECH.com and clicking on the “Investor Relations” tab on its website, or by visiting http://edge.media-server.com/m/p/fhpycz96/lan/en.  Related presentation materials will be posted to the Company’s “Investor Relations” section in Adobe Acrobat format prior to the call.

 

A telephone replay of the call will be available until July 23, 2014.  The replay dial-in numbers are 888-286-8010 (U.S. and Canada) and 617-801-6888(International), and the Conference ID number is 68896648. In addition, the call will be archived on the companies’ websites in the “Investor Relations” sections.






LOTTERY EXPO 2014

Co-Hosted by PGRI and the Florida Lottery  Eden Roc Hotel South Beach Miami, Florida Wednesday and Thursday, September 10 and 11
PLATINUM SPONSORS
                

Silver Sponsors
       
            

Exhibitors 
       

Lottery Expo Basic Agenda:
Conference Sessions to be held 9:00 am to 5:00 pm on Wednesday and Thursday, September 10 and 11
Receptions to be held 5:00 to 7:00 pm on the evenings of Tuesday, Weds, and Thursday, Sept. 9, 10, and 11
Luncheons and coffee breaks to be held on the conference days of Wednesday and Thursday
Friday: Networking Day

Limited Number of Rooms in our Block available from $199 Click here to reserve    - Rooms almost sold out call or email us if you get a sold out or rate over $199 and we will try to get you in.
Early Bird Vendor Conference Registration Click Here      Complimentary Government and Lottery Registration Click Here


Check out website www.PublicGaming.org for conference updates.Venue:  Eden Roc Miami Beach
Lottery Expo Conference Schedule (Notice that there are NO sessions on Friday.  Conference is on Weds and Thursday, and closes with the Reception on Thursday evening):
--  Tuesday September 9:  5:00 pm. Opening night reception
--  Wednesday, Sept. 10:  Conference Sessions followed by Reception at 5:00 pm.
--  Thursday, Sept. 11: Conference Sessions followed by Reception at 5:00 pm.
Our receptions traditionally end at 7:00 pm., so do not conflict with dinner plans. 

 LOTTERY EXPO 2014 Panel Discussion Topics :  

--  Maximizing Net Funds by balancing the mix of high and low margin products  Looking at how consumer products marketers apply category management principles to maximize sales of their high-margin products.  How do consumer products companies manage this systemic capitalist dynamic of finite product life-cycles, margin erosion, customer migration to lower-margin products, etc.?  What are the marketing principles that others apply to produce the optimal balance between high and low margin products, and use the consumer appeal of some products to drive traffic to others?   How does the consumer interact with the entire category of lottery products, what drives their behavior towards one set of product attributes over another, and how can Lottery appeal to those drivers such that we are channeling the maximum volume towards the high-margin products, and/or at least extracting maximum net profit from the category, etc.? 

-- Content Marketing is the provision of free content for the purpose of engaging the consumer who hopefully becomes a paying customer.  But it is also being used to build a deeper connection with your customer. Connecting Lottery with a new generation of consumers means thinking and feeling like them - and building relationships based on that emotional connection.  It’s about telling a story more than selling.  It’s about re-branding, re-shaping our image so that everyone feels that Lottery “is for people like me”, it’s about integrating digital technology and retail merchandising strategies so that we are talking with our customers rather than at them so that consumers embrace Lottery as part of who they are and want everyone to know it.  How is Lottery evolving its approach to create this emotional connection that drives sales? 

--  Multi-Jurisdictional Games, promotional campaigns, and marketing strategies   Creating truly national brands requires national advertising, marketing, promotion, and distribution.  Forging consensus among 44 + lotteries requires compromise, and the conviction that the goals are worth the effort.  Some might ask: Why should we do that when our markets are confined to the boundaries of our state - and our state statutes, gaming cultures, and consumer attitudes all vary from state to state, and certainly from region to region. Why is it so important for Lottery Directors to work hard to create nation-wide branding and promotional programs?  Multi-state initiatives provide economies of scale not achievable on an individual state basis. That is key to the TV Lottery Game Show.  How relevant is that to the calculus of cost/benefits/ROI for other factors like developing new games, and new promotional and branding initiatives?  What are some actionable ideas for additional nation-wide promotions and marketing campaigns?

--  Retail Modernization drives Lottery Modernization     Retail is changing.  What can Team Lottery do to make sure make sure that Retail Modernization results in increased sales of its products?  Merchandising and POS trends, demand for better data capture and analyses and reporting, transaction processing technologies, increased consumer options like self-serve and digital connections, cross-promotional marketing, adding entertainment value to the in-store shopping experience.  Integrating Retailer products into Lottery promotions, and vice-versa.  How can Team Lottery continue to modernize itself to take full advantage of these trends?   

--  The triumph of Traditional Lottery over i-gaming      The growth of casinos and casino-style i-gaming has flattened-out in the mature markets of Europe.  And sales are falling far short of projections in the U.S states that offer it now.  But not Lottery, which continues to grow. Additionally, casino-style gaming (both on-line and land-based casinos) is rife with intense competition that drives margins lower and lower.  Could the coming two years be the window of opportunity for Lottery to push harder than ever to focus on its strengths, its core competencies and products, and consolidate its position with the traditional games for the traditional lottery markets? The last few years have been witness to some major innovation. How can Team Lottery continue to build on that, add to the vitality and excitement and accelerate the rate of progress and innovation in Lottery’s traditional games? 

--  Leveraging the promotional power of the Internet to drive Retail sales       Is the real power of the Internet is as a promotional tool, much more than as a channel for distribution?  Marketing and promotional strategies are integrating the on-line and off-line worlds to drive sales at land-based Retail, leveraging the power of the Internet as a promotional tool to drive store traffic and lottery sales.    How are digital channels being used to generate maximum consumer engagement that results in increased sales at Retail? 

--  Decision-Driven Leadership: Exploiting the Abundance of Opportunity (or ... don't wait for a crisis to act)      The nation-wide approach to managing the multi-state games is not easy.  Forty four lotteries with different agendas need to manage the games together as one cohesive, unified body of decision-makers.  Creating nation-wide strategies for branding, promotions, advertising, distribution, and whatever else can be transplanted onto the national stage, could be the key to Lottery’s version of the “Next Big Thing."    What is the kind of governance structure that will drive effective decision-making and action? How can lotteries work together to act now to produce the results we need sooner than later in the multi-state gaming space?  

Conference website: www.PublicGaming.org  

Video-recording website: www.PGRItalks.com 

Public Gaming /Paul Jason - pjason@publicgaming.com   / Susan Jason - sjason@publicgaming.com  /Office Phone - + 425-449-3000  
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