Lottery Challenges; Interactive a Tool to attract Millennials
April 1st, 2015
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2 GTECH Interactive Offering 2 INTERACTIVE PRODUCTS AGTECH
Interactive is a one stop-shop operator with the largest portfolio
of Interactive Gaming verticals in the industry Leading commercial
operator and provider of technology in regulated worldwide gaming
markets Offers products and services in approximately 100 countries
Services over 1 million internet players monthly Company combines
#1 Global Lottery business with #1 Global Gaming Equipment Provider
Invested over $0.5 Billion in the interactive business
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3 GTECH Interactive Leadership and Expertise 3 In addition to
being an interactive B2B provider in more than 20 regulated
jurisdictions, GTECH is competing across the globe as a B2C
iLottery and iGaming operator serving every month over 1 million
internet players and generating over 1.5 billion in wagers every
year UK Spain Illinois Indiana Italy New Jersey Colombia B2CB2B
Sweden Belgium California Ontario Quebec UK British Columbia Greece
Spain Ireland Norway Finland Chile Mexico Luxemburg New York
Georgia Austria Recent Awards 2014 DIGITAL INDUSTRY SUPPLIER OF THE
YEAR 2014 BEST B2C ITALIAN INTERACTIVE OPERATOR
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4 Age demographic comparison Age GroupPopulation US Lottery %
US Lottery Pop INTL Lottery % INTL Lottery Pop
18-2431,457,65312%3,774,91816%5,033,224.48
25-3442,844,58717%7,283,58029%12,424,930
35-4440,452,69014%5,663,37723%9,304,119
45-5443,767,53219%8,315,83117%7,440,480
55-6439,316,43120%7,863,28611%4,324,807
65+44,704,07418%8,046,7334%1,788,163 Millenials are the dominant
age demographic globally Average age increases
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5 Millennials: The largest Spending Power As of 2015, the
market volume of social game developers in the United States is
expected to amount to 9.82 billion U.S. dollars Millennials are the
largest demographic for spending power in the U.S. They are
unengaged by traditional brick and mortar real money gaming
experience and are moving to digital experience 76 million strong,
their size and combined purchasing power make Millennials a
necessary market segment to target An estimated combined purchasing
power of $2.45 trillion world wide by Not influenced by traditional
push marketing strategies. Born and raised in the age of
technology, Millennials consume information when and how they want
to Gen Y
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6 Multichannel Player Demographic *Source: MQO market research
2012, commissioned by Spielo Players Demographic (Age profile)U.S
Social Gaming Development (billion U.S.) Interactive gaming
attracts younger players Market volume of social game developers
expected to reach 12.31 billion U.S. dollars by 2017
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7 Mobile vs. Millennial Lottery Players: Illinois Lottery
Spending Per Age Group (Mobile App vs. Web) Younger players spend
more on Mobile App Channel PERIOD: JAN'14-FEB'15 Sales Mobile App:
Currently ~28% of iLottery Sales Mobile Channel: ~39% Mobile App
Sales PC Web Sales Mobile App %Mobile Web %Web %
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8 8 Mobile Convenience App Illinois Lottery Launched: Jan. 12,
2014 Downloads: 269,000+ Avg. Weekly Usage Users: ~35,000 Sessions:
~148,000 CURRENT FEATURES Jackpot Information Winning Numbers Push
Notifications Retailer Locator How To Play Shopping Cart
Responsible Gaming Terms & Conditions Registration FUTURE
RELEASE Ticket Scan Inquiry Digital Playslip Wager Builder
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9 9 Mobile Convenience App Indiana Lottery Launched: Aug. 10,
2014 Downloads: 106,000+ Avg. Weekly Usage Users: ~19,000 CURRENT
FEATURES Jackpot Information Winning Numbers Retailer Locator How
To Play Bingo To-Go Responsible Gaming Terms & Conditions
FUTURE RELEASE Ticket Scan Inquiry Digital Playslip Wager
Builder
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10 The Real and Virtual Worlds are One: Digical Approach 10
Customers have changed. They weave their digital and physical
worlds tightly together Digital channel will not undermine the
retail lottery business but we cant ignore the changes brought by
digital technologies. Lotteries must fuse the digital and physical
worlds, just as consumers are doing. We should pursue a DIGICAL
innovation approach. The real and the virtual worlds are one: so
should be GLC
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11 Digital and Physical Mash-Up Digical 11 Digical innovations
will hit some businesses much harder and faster than others, The
range of impact is wide. The biggest change for retail is yet to
come.
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12 The Real and Virtual Worlds Are One: Starbucks
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13 The Real and Virtual Worlds Are One: Disney Future Customers
can enjoy attractions with little or no wait, with the ability to
reserve Park experiences in advance, as well as making changes
on-the-go Customers can manage Family & Friends lists, plans,
customize profiles, view reservations, tickets and FastPass+, keep
track of plans with reminders of reservations, show times,
attraction wait times, all via GPS-enabled maps MagicBands My
Disney Experience Mobile App FastPass+ My Disney Experience
FastPass+ 2 3 Disney is on target to realize some $500 million in
annual incremental revenue with a 20% operating margin Results
Future applications may include the personalization of rides and
attractions, such as Winnie the Pooh greeting a child by name and
wishing him a happy birthday Future All-in-on devices that
customers can use to enter parks, unlock hotel rooms, use
FastPass+, charge purchases to rooms, and link PhotoPass photos to
their Disney accounts MagicBands 1
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14 Lottery Digical Expansion: Non-Traditional Lottery Store
Mobile APP (iOS and Android) or Mobile Browser LOTTERY WiFi PLAY
HERE Download APP Set up Account PLAY! WIN! BRAG! NO LOTTERY
TERMINAL REQUIRED WiFi Connection GTECH Comm Lottery Host and ES
Player Direct 1 2 3 WiFi lottery Hot- spot terminal
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15 Ecosystem Constraints Lottery Industry is not moving fast
enough compared to how the market is evolving and regulation is
moving even slower Millenials Regulation Retailers
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17 Ecosystem Constraints Lottery Industry is not moving fast
enough compared to how the market is evolving and regulation is
moving even slower Millenials Regulation Retailers DIGICAL 2.0
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18 GTECHs MGM Offering Summary 18 Customers inside all 12 MGM
properties in Las Vegas will be able to play slots, casino and live
betting on their mobile devices connected to their room account
Customers will be able to place pre- and live bets on sports on
their mobile devices, anywhere in Nevada GTECH will supply a full
retail solution to MGMs sports books in Nevada based on MarginMaker
and World*Till.
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19 Digical 2.0 - Convergence of Offline & Online Gaming
Choose your footer and place here PHYSICAL DIGITAL DIGITAL GAMES
WEB / DESKTOP PLAYER POS INTERACTIVE PROCESS
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21 Synergy for Everyone Choose your footer and place here
BENEFITS OF DIGICAL RETAILER ASSOCIATED PLAYER ACOUNTS Top Ups
& Wagers Retailer Commission % of TopUps OR % of Wagers
(Variable by Game) Drive Traffic to the Point of Sales Expand Game
portfolio Enlarge Retail Network PHYSICAL