How do we tackle the shared issues facing the industry? July 2014 Matt Osgood September 2014.

How do we tackle the shared issues facing the industry?

July 2014

Matt OsgoodSeptember 2014

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•Falling net revenue returns

•Declining participation

Industry wide problems

Digital features in all our lives The need for Access is approaching human right status

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Smartphones are accelerating this need

iLottery is a core tool to address our issues

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• However with single digit % of total revenues, many lotteries in Europe and North America have not seen the Lottery revenues from iLottery that they envisaged

• So how can we leverage iLottery to help address these industry wide issues?

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1. Change of lottery mind-set to that of being the retailer

2. Management of the Player lifecycle

3. Adoption of digital tech processes, tools & people

Camelot’s 3 core guiding iLottery principles

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1) Change of mind-set to that of a retailer

Actively drive digital connections

Flexible technology solutions

Test & learn - improve

One-to-One Player interaction

Anytime, Anywhere access

Optimize POE media

• Requires channel agnostic perspective, investing in accessibility and convenience

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2) Management of the Player life-cycle

• Display ads • SEO / PPC• Email• Affiliates• Partnerships• Social /Viral• Response/ROI

Analysis

ATTRACT

• Email• Search• Promotions• Usability• Merchandisin

g• Player

Support• Response/ROI

Analysis

CONVERTRETAIN

GROW• Targeted

Communication

• Personalisation

• Community• Loyalty• Campaign

Management• Site

Performance• Trigger

campaigns• Segmentation

• Data Analytics• Web Analytics• Predictive

Modelling• Campaign

Management• Response/ROI

Analysis• Usability• Real Time

Offers

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3) Adoption of digital tech, processes, tools and people

Key to achieving both the Mindset of a Retailer and the optimization of the Player Lifecycle is having the right

enablers: Processes / Tools / People

Analytics Campaign Management

Personalisation/Relevance

Building a forensic understanding of the player

Operational insight

Digital channels should enable quicker reaction to player insights

The Challenge lies in making these insights actionable

Challenges of technical legacy

• Understanding play motivations and sustaining regular play

• Game awareness and perceptions• Optimal win experiences• Individual games evaluation

and optimisation• Identifying and assessing the

real competitive set

Multi-channel Media ROI

In summary

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You have the toolkit

However to address falling penetration & net revenue returns it’s vital iLottery is executed effectively

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1. Adjust to a retailer mind-set

2. Actively optimize the player lifecycle

3. Enable both through adopting digital tools and experts

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Camelot can now offer our own iLottery platform to lotteries

Camelot’s iLottery platform – a $30 million investment• A brand new website, mobile site and tablet platform• New mobile centric, responsive site• Fresh, modern and easy to use digital experiences

Live from 1st Sept 2014:• IWGs ahead of the

comparable week by over $300k+, despite trading for almost 2 fewer days

• Over $1m of IWGs sold via mobile devices in Week 1

• Nearly 20K new player registrations – significantly ahead of the comparable week