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SMART TECH 2010

CONTENT IS KING

The First Wave – Pioneers Blaze The Trail

•Glendenning, General Technology, SGI, AWI/IGT, Totalizator•Invented the Lottery systems we use today•Used the state of the art technology at the time

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SMART TECH 2010

CONTENT IS KING

The Second Wave – Vertically Integrated Single Source Solutions

•GTECH, SGI, Intralot

•Comprehensive mainframe solutions

•Original Equipment Manufacturers (OEM)

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SMART TECH 2010

CONTENT IS KING

The Third Wave - Content is King

•Innovators, Entrepreneurs

•Responding to the challenges and opportunities of the new marketplace

•Platform independent content and solutions that leverage the Internet

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Content is King - The Third Wave of Innovation

SMART TECH 2010

CONTENT IS KING

iPhone

iPad

•Games need to be localized and delivered on the devices players use.

•The Gen X,Y player grew up playing interactive HD quality video games.

•Lotteries should be testing 25-50 games in the market on an ongoing basis.

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SMART TECH 2010

CONTENT IS KING

Content is King - The Third Wave of Innovation

•Gen X, Y players interests are under-served

•Social Space Internet is their world

•Our focus is on Lottery Content that Gen X and Y will pay to play.

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Content is King - The Third Wave of Innovation

SMART TECH 2010

CONTENT IS KING

•Content drives: Broadcast and Cable TV, Radio, Internet and wireless Networks

•Original Content is offered 24/7 on thousands of channels

•2 Million hours of content are needed annually to fill 200 Cable TV channels

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SMART TECH 2010

CONTENT IS KING

Key elements of a successful game

1. Attract

2. Entertainment Value

3. The Math

4. Player Psychology

5. Celebration

6. Localization

7. Relevance

“The art and science of game development.”

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DC Lottery - Localization

SMART TECH 2010

CONTENT IS KING

•DC Lottery is considering a horse racing game.

•Through research, we found out that there was a race track in DC in the late 1800’s

•Our game is a re-creation of that track in DC, as if it existed today.

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Apache Legends - Relevance

SMART TECH 2010

CONTENT IS KING

•Apache Tribe asked T1 to create sacred ground and tribal legends for a Mystery.

•We developed the detailed scene and the legendary characters, as they appeared in real life.

•After we converted the physical representations of the legends to spirits, the Tribe approved.

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Atronic – Cultural Relevance and Localization – SLOT GAME OF THE YEAR

SMART TECH 2010

CONTENT IS KING

•Atronic asked T1 to develop a Mystery set in Asia

•We researched a range of themes and presented Dragon Boat Racing

•Our accurate representation and attention to detail won Atronic a top industry award.

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Using Gameology™ to create Gen X and Y games for GTECH

SMART TECH 2010

CONTENT IS KING

•GTECH asked T1 to look into game play styles that are relevant to Gen X, Y players

•We are in the process of creating completely new game play and math.

•T1 is designing these games to play on GTECH systems.

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Massachusetts Lottery Daily Race Game

SMART TECH 2010

CONTENT IS KING

•T1 won the RFP to replace the Daily Race Game at the Mass Lottery

•Our Play-By-Play™ engine generates over 4 Million variations of a horse race.

•The T1 game runs 300 times a day in over 1000 locations.

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SMART TECH 2010

CONTENT IS KING

Cultural Relevance & Localization

•Ethnic Markets in large urban areas are an untapped opportunity for Lotteries

•In language instant and Monitor games expand the player audience and revenues.

•This monitor game uses two legendary icons of the Salsa Music Genre.

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Why testing is important

SMART TECH 2010

CONTENT IS KING

•Testing must be done on a continuous basis with a variety of players and non-players.

•There is no substitute for “In Market’ Tests, with real money and real players.

•Test, Test, Test is to Lotteries, as Location, Location Location is to Real Estate.

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Testing, Testing, Testing

SMART TECH 2010

CONTENT IS KING

•T1 has mastered In-Market Testing – real people, real environments, real games

•Lotteries should be testing 25-50 new games annually.•All Lotteries have Web sites, bu the web site must be set up for testing.

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Testing, Testing, Testing

SMART TECH 2010

CONTENT IS KING

Multi-screen games – a T1 specialty

T1 Multi-game set up

•Testing results drive content strategy and delivery.

•Testing helps identify the ‘next big’ game or play style…

•Before an investment is made in deployment.

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What’s next after Instant Games?

SMART TECH 2010

CONTENT IS KING

Cheers ® Instant Game

Cheers ® Keno Monitor Game

• Add high frequency monitor games (every 3-4 minutes), with targeted content.

• Opens opportunities for cross channel branding and sales

• Deployment over multiple platforms reaches more players

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What’s next after Instant Games?

SMART TECH 2010

CONTENT IS KING

• Games specific to the venue and the audience.

• Create games that are customized to cultural, and demographic preferences.

•Lotteries can leverage their extensive networks and neighborhood presence

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SMART TECH 2010

CONTENT IS KING

The Lotteries’ Key Market Advantages

• Lotteries’ key advantage is local presence

•A Lottery typically has 1,500 agents, and often more than 5,000 in their state

•By comparison, Walmart has on average 150 stores and McDonalds has 500 per state.

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SMART TECH 2010

CONTENT IS KING

The Lotteries’ Key Market Advantages

• Lotteries can’t grow without their agents.

•Agents require full time attention and support to be as successful as possible.

• T1 Sales & Service teams work with retail agents to maximize their sales potential.

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SMART TECH 2010

CONTENT IS KING

The Third Wave Partnership for Success

State LotteryPartner

Lottery Retail Agent

Partner

Online Systems Partner

Content Sales & Marketing Retail Recruitment

Partner

• T1 offers online systems providers exciting new content and content delivery solutions.

•T1 offers Lotteries in market testing to drive content strategy and retailer recruitment.

• T1 Sales & Service teams offer retail agents sales and marketing assistance.

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SMART TECH 2010

CONTENT IS KING

The Lotteries’ Key Market Advantages

• Upgrade agent displays to maximize sales, where it makes business sense.

• Cull the bottom 10% of agents and recruit new ones to replace them.

• Lotteries are businesses that support state and local governments.

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SMART TECH 2010

CONTENT IS KING

The Lotteries Key Market Advantages

• Cable TV companies bring in a closing team to scour their markets periodically

• These are called sweeps and they coincide with TV ratings sweeps weeks

• Because growing the number of locations expands your footprint and your reach

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Content is King - The Third Wave of Innovation

SMART TECH 2010

CONTENT IS KING

• In TV, experimentation and testing drive innovation at the speed of the customer

• You have to innovate to change the game

• Tournament One is a game changer

Multi- screen games a T1 specialty.

Multi-game screen in hotel lobby restaurant.

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BroadcastR™ - Innovation in action bringing Lottery Games to digitally savvy players everywhere.

SMART TECH 2010

CONTENT IS KING

• Animated Draw displays can now be accessed on demand by any player on any device.

• Files are completed and published within 2 minutes of draw completion.

• Available as a turnkey or ASP solution.

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BroadcastR™ - Innovation in action bringing Lottery Games to digitally savvy players everywhere.

SMART TECH 2010

CONTENT IS KING

• In Massachusetts, BroadcastR™ is delivering the Daily Race Game To Go

• Players can download their draw animation any time on any device

• Since installation in fall of 2009, we’ve delivered over 300,000 draw displays to players throughout Massachusetts.

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SMART TECH 2010

CONTENT IS KING

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Tournament One is Your Lottery Partner

Growing Revenues Responsibly

In the New Marketplace

With a new Generation of Players

SMART TECH 2010

CONTENT IS KING

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SMART TECH 2010

CONTENT IS KING