Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION

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Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
No 30 April 2009

      EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION

Playing Lottery
        in
        Eastern Europe
Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
The Executive Committee of
the European State Lotteries
and Toto Association

PRESIDENT
Dr. Winfried WORTMANN, Managing Director
WESTDEUTSCHE LOTTERIE GmbH & Co. OHG, Germany

1ST VICE-PRESIDENT
Mr. Christophe BLANCHARD-DIGNAC,
President – General Director
LA FRANÇAISE DES JEUX, France

2ND VICE-PRESIDENT
Mr Jussi ISOTALO, Deputy Managing Director                MAY                                                                                                                                                   SEPTEMBER
VEIKKAUS OY, Finland                                      s Joint EL/WLA Sports Betting                                                                                                                         s %,5 i%UROPEAN
                                                            Seminar                                                                                                                                               Lottery University»
MEMBERS
                                                            Dates: 06-08 May 2009                                                                                                            6 - 8 May 2009

                                                                                                                                                                                                                  Dates:
                                                                                                                       Hosted by

Prof Vesna BAKRAN, General Manager                                                                                     Staatliche Lotterieverwaltung in Bayern
                                                                                                                                                                                             Munich / Germany

                                                                                                                                                                                             Against
                                                                                                                                                                    Sports Betting Seminar   all odds
                                                                                                                                                                                             Preparing the

HRVATSKA LUTRIJA d.o.o., Croatia                            Location:
                                                                                                                                                                                             Future

                                                                                                                                                                                                                  30 August-04 September 2009
Mr. Gonzalo FERNÁNDEZ RODRÍGUEZ, General Director           Munich / Germany                                                                                                                                      Location: Malta
LOTERÍAS Y APUESTAS DEL ESTADO, Spain
                                                            Host: Staatliche Lotterie-                                                                                                                            Host: Maltco Lotteries Ltd
JUDr. Ales HUSAK, Chairman of the Board of Directors
and General Director                                        Verwaltung in Bayern
SAZKA a.s., Czech Republic                                                                                                                                                                                      s 2ESPONSIBLE 'AMING 3EMINAR
Mr Léon LOSCH, Director                                   s Joint EL/WLA Seminar                                                                                                                                  Dates: 28-30 September 2009
LOTERIE NATIONALE, Luxembourg                                                                      Seminar hosted by
                                                                                                   NORSK TIPPING                                                               May 25 - 28 ,2009
                                                                                                                                                                               Hamar / Norway

                                                            on Interactive Gaming                                                         Interactive Gaming
                                                                                                                                                                             Lotteries
                                                                                                                                                                             in                                   Location: Barcelona / Spain
Dipl. Ing. Friedrich STICKLER, Deputy General Director                                                                                               Seminar
                                                                                                                                                                             Cyberspace

österreichische Lotterien, Austria                          and New Media                                                                                                                                         Host: Loteria de Catalunya
Ms Dianne THOMPSON, Chief Executive                         Dates: 25-28 May 2009
The National Lottery CAMELOT, United Kingdom                Location: Hamar / Norway                                                                                                                            OCTOBER
Mr Tjeerd VEENSTRA, Director                                Host: Norsk Tipping AS                                                                                                                              s 3EMINAR ON )NFO 3HARING %,)3%
De Lotto, Netherlands
                                                                                                                                                                                                                  Dates: 12-14 October 2009
                                                          JUNE                                                                                                                                                    Location: Lisbon / Portugal
                                                          s EL Congress                                                                                                                                           Host: Santa Casa da Misericordia de
                                                            Dates: 08-11 June 2009                                                                                                                                Lisboa
                                                            Location: Istanbul / Turkey
Contents                                                    Followed by:
1.    Message from the President
                                                          s EL General Assembly
                                                            Date: 11 June 2009 afternoon
3.    Editorial

4.    Playing Lottery in Eastern Europe                   s Joint EL/WLA Security
                                                            Seminar
                                                                                                          Hosted by
                                                                                                                                                                                    23 - 25 June, 2009
                                                                                                                                                                                    Budapest / Hungary

                                                                                                                                                                 Security Seminar   Where
                                                                                                                                                                                    Creativity
19. Philippe Vlaemminck EL Legal Adviser                                                                                                                                            meets Security

                                                            Dates: 23-25 June 2009
21. Camelot                                                 Location:
                                                            Budapest / Hungary                                                                                                                                  Registration for all our seminars
24. Members’ News
                                                            Host: Szerencsejatek Zrt                                                                                                                            can be done online at
27. Premium Partners                                                                                                                                                                                            http://www.european-lotteries.org
31. Workshops

                                                         All events are available on our website (under events)
                                                         Announcements are made a few months in advance

     General Secretariat
     Bernadette Lobjois
     Secretary General
     Av. de Béthusy 36
     CH-1005 LAUSANNE
     Tel. +41 21 311 30 25
     Fax +41 21 312 30 11
     internet: http://www.european-lotteries.org
     E-mail. info@european-lotteries.org
                                                         THE MATERIAL, VIEWS, OPINIONS AND COMMENTS EXPRESSED BY THE AUTHORS, THE SPEAKERS AND THE PANELISTS ARE THEIR
                                                         OWN AND DO NOT NECESSARILY REPRESENT THE POSITION OF PANORAMA OR EL ASSOCIATION. PANORAMA ACCEPTS NO LIABILITY
                                                         FOR THE ACCURACY OF STATEMENTS MADE BY ADVERTISERS. ALL RIGHTS RESERVED. NO PART OF THIS MAGAZINE MAY BE REPRO-
                                                         DUCED WITHOUT WRITTEN PERMISSION FROM EL GENERAL SECRETARIAT.
Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
Message from the President

Ladies and Gentlemen,                         are constitutive and justified. It is re-
Dear friends,                                 markable how clearly the Parliament has
                                              expressed that these resources should
With its decision of 10 March, 2009, the      not go to private pockets.
European Parliament has set an impor-
tant signal that corresponds to our basic     We will continue to support the Europe-
principles. It shows that we are not alone    an Parliament and its committees in the
and that it is not only the governments of    development of sustainable solutions for
the Member States that give us guidance       gambling in Europe. The 10th of March
on responsible gaming. By voting with         also proved how important and right it
544 votes in favour and only 36 against       has been and still is to focus our strategic
the resolution on online gambling, the        work on Brussels.
European Parliament has taken a very
clear stance.. This is all the more remark-   Within our European Association of
able as online gambling is a very complex     State Lotteries and Toto organisations,
and difficult subject. The rapporteur and      everything is now stepping up to the big
the IMCO committee haven taken the            congress in Istanbul in June. We have
time to carefully examine the subject and     prepared an ambitious programme that
give clear recommendations.                   reflects the broad ranger of topics we are
                                              currently working on. In the General As-
Gambling falls within the scope of the EU     sembly, we will determine the guidelines
Treaty. But it is a very sensitive service    for the strategic work in the future. We
that cannot be compared to other areas;       will elect a new team to master these ac-
a mere self-regulation in this area cannot    tivities. I would like to thank, also on be-
be sufficient. It is also very important to    half of the General Secretary and the Ex-
note that the Parliament considers that       ecutive Committee, our host, the Turkish
the national legislation in the respective    National Lottery Milli Piyango, for the
Member State is responsible for the gam-      kind invitation that it has extended to all
bling sector. The subsidiarity principle      of us.
has to be applied. For this reason, the
Member States have the right, but also        I am looking forward to the discussions
the obligation to regulate the gambling       with you in Istanbul.
sector with their means – as far as they
can. And as the past has shown, they can.
                                                                                Yours
Areas like internet gambling and cross                            Winfried Wortmann
border activities (cross border betting)                                    President
however also show that the current mod-
els have to be further developed. To this
end, political solutions are needed. It is
not satisfactory to wait for decisions by
the European Court of Justice. Certainly
the European Parliament emphasizes as
well that the national levies on gambling,
our contribution to the public welfare,

1   PAN   RAMA
Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
EL Premium Partner

 Glimpsing the Future of Gaming

              The maturing core player. The younger emerging consumer.

              Attracting both requires products that continue to maximize lottery sales of traditional retailers as
              well as solutions that leverage new sales channels, including fresh, exciting game concepts for the
              Internet and mobile phones.

              That’s the future. That’s the challenge. That’s our focus.

Scientific Games delivers on its commitment to be a good
neighbor and good global citizen and, as such, is committed to
socially responsible gaming and sustainable business practices.                                                ©2008 Scientific Games
                                                                  2   PAN   RAMA
Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
Editorial

            Two decades later…
            This Panorama is dedicated to the Lot-          When some of these countries wanted to
            teries from Eastern and Central Europe.         join the European Community, our Associa-
            Some of these organizations are Members         tion fulfilled its role by inviting the Lotteries
            of the European State Lotteries and Toto        of these countries in round tables to inform
            Association (formerly AELLE) for almost         them on EU law and the various challenges
            20 years, and most have applied since 1995.     they will have to face. Our Legal Advisors
                                                            provided them with some concrete exam-
            The first Lottery to have joined our As-         ples and answered all their questions.
            sociation in early 1991 was the Lottery of
            the Czech Republic (formerly Czechoslo-         Subsequently, some countries made the
            vakia which included the Czech Republic         step forward and entered the Euro zone.
            and Slovakia). This country, that joined        An information meeting was consequently
            the EU in May 2004, currently assures           held in Paris, during which different Mem-
            the EU Presidency. Other Lotteries also         ber Lotteries of the Euro zone presented
            followed in 1991, such as the Romanian          the requirements and practical examples.
            and Hungarian Lotteries.
                                                            All our Members can count on EL’s sup-
            Furthermore, in November 1993, we or-           port. Indeed, the Association has always
            ganized the first conference for the coun-       been there, throughout the years and has
            tries of Eastern and Central Europe. This       even anticipated some situations.
            event took place in the city of Cracow in
            Poland. Other meetings followed on an an-       Today, there is no need to meet our Mem-
            nual basis until 2001. Then, the meetings       bers for the above-mentioned specificities
            were not organized anymore due to the           anymore. Nevertheless, they continue to
            fact that the involved Lotteries in this part   regularly participate in our seminars, con-
            of Europe reached a high technological          ferences and other meetings organized
            level and set up modern sales networks.         throughout the year, within a quite unique
                                                            family : the European Lotteries.

            EL activities’ landscape for the coming months:
            The seminars on sports betting in Munich, on interactive games in Hamar, and on se-
            curity in Budapest are in progress. The related information is available in our website.
            The most important event remains our Congress in Istanbul with our General As-
            sembly which will close this major event. Mr. Biçer, CEO of Milly Piyango, the Turkish
            National Lottery Administration – and his whole team look forward to welcoming you
            to this magnificent city of Istanbul, where an enriching program awaits you. All infor-
            mation are available in the Congress website : www.el2009.org
            Then, in September, we will have our usual rendez-vous : ELU – European Lottery
            University, which will take place on the very beautiful island of Malta.
            We hope to see many of you in Istanbul to celebrate together the fifth Congress of
            our Association.

            Istanbul’da görüümek üzere… (see you soon in Istanbul)

                                                                                    Bernadette Lobjois
                                                                                    Secretary General

            3   PAN   RAMA
Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
Playing Lottery in Eastern Europe

                                               OLD WORLD - NEW WORLD OF LOTTERIES

Most of our Members in Eastern and             but they are definitely in sync with 21st     by a tumultuous history and how they
Central Europe have experienced an in-         century mentality: Online games and wa-      have found the high road to success. Still
tertwined history. Their Lotteries have        gering systems, Internet and mobile gam-     many challenges lay ahead, due to mar-
sometimes followed a similar path but as       ing processing, strong focus on business     ket penetration by unlicensed offshore
the countries have become independent,         transparency and adoption of strict so-      game operators, liberalization of cross-
they have focused on their own identities      cial responsible gaming principles. They     border games and the difficult task to
– a trait that is obvious in their games of-   are doing well in terms of pleasing their    convince their own governments of the
fering. They are now making history with       customers; they are doing even better at     urgency to set up stringent gaming laws
a new approach and a new vision for their      supporting good causes, social and other     to better protect the players.
State Lotteries.                               government-sponsored programs and
We have asked our Eastern and Central          their community by strengthening their
European Members to give us an over-           image and presenting an attractive, mod-
view of their experiences and the evolu-       ern and clearly transparent gaming envi-
tion of games in their respective coun-        ronment very well in line with the rest of
tries. One main feature that seems to          Europe.
appear in each of these countries is their     Take a look at the following presenta-
advanced level of technology and the fu-       tions sent by our colleagues from Eastern
turistic games already in place. These         and Central Europe, and see how they
countries might belong to “Old Europe”         have overcome major difficulties caused

                                           4   PAN   RAMA
Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
Playing Lottery in Eastern Europe

                                    Russia      The Lottery market in Russia
                                                target audience to evaluate players’ pref-     two months, the applicant is issued ei-
                                                erences are not held regularly in Russia,      ther a license for the term not exceeding
                                                Interlot has researched at different times     5 years or a reasonable refusal to get the
                                                the market to streamline its marketing         license. A decision of reasonable refusal
                                                strategy. Social and demographic profile        is made based on the law’s stipulations.
                                                of TV lottery players, highlighted by mar-     Applicant may appeal the decision in the
                                                ket research, almost completely mirrored       order prescribed by the legislation of the
                                                the social and demographic features of         Russian Federation.
                                                the population of Russia. There were not
                                                considerable differences in geographical       Gaming environment in Russia
                                                areas for most player groups.                  While official Russian operators have dif-
                                                                                               ficulties getting licensed to operate lottery
                                                    0ERCENTAGE OF MEN VERSUS WOMEN             games on Internet and mobile phones,
            Alexander Zibrov
            General Director                                    players                        there is a great deal of foreign operators
                                                                                               selling in our country without a Russian
“Interlot” Jsc., founded in 1996, is the                                                       license via Internet-based offshore opera-
largest Russian operator responsible for                                                       tions. To ensure the security of our gaming
organizing and managing lotteries. Since                                                       offering, Interlot has addressed a proposal
1997, Interlot has been conducting the                                                         to the appropriate authorities of the Rus-
“Golden Key” Housing Lottery, the only                                                         sian Federation to research the activities
one of its kind in Russia, throughout the                                                      of such illegal gambling sites in Russian
country. The unique targeting of this Lot-                                                     Web space. According to public informa-
tery is based on the fact that a new apart-                                                    tion, as of the end of 2007, Russian In-
ment (value at about two millions rou-                                                         ternet counted 6 894 gambling sites. The
bles) is available in every weekly drawing.               !GE RANGE OF PLAYERS                 number of visitors to those sites is stagger-
“Golden Key” is a passive lottery based                                                        ing: For example, one of Internet-casino
on a 30/90 scheme. Even the structure                                                          gets hit 108 148 per month.
of the prize funds of the Lottery is aimed                                                     Most of the sites have no authorization for
at providing the population with proper                                                        running games and any lotteries in Russia.
social security as far as residential facili-
ties throughout the country. Besides this,                                                     The Federal Service of Financial Moni-
according to Russian legislation, part of                                                      toring of Russia expressed concern on
our annual revenue goes to finance social                                                       the issue of monitoring criminal activities
programmes.                                                                                    through gambling sites. As of today, there
                                                                                               are no legislative measures, nor financial
Our games                                       Our legislation                                sanctions to restrict the invasion of for-
Interlot is a leader in Russia among TV         In accordance with our gaming law, there       eign operators in Russian Internet space.
lotteries (with an earning share of 48 %        are established principles controlling re-     It creates more difficulties for national
for 2008). The number of TV projects            lations between Lottery companies and          operators to promote their lottery games
has grown to three. One of them is a Card       the State in Russia since 2005. Live lot-      on the Web.
Lottery with a winning formula of 5 plus        teries can be run by a state. A state prog-
1 out of 36 numbers with a combination          nostic game was started last year, using       ! VIEW ON OUR FUTURE
pre-printed on the lottery ticket. The          lottery terminals to sell tickets. There are   However, Interlot is actively looking at
other is a number Lottery with a formula        some legislative restrictions for commer-      launching new lottery games on the Inter-
of 9 numbers out of 30. In 2007, Inter-         cial companies that have to go through         net and on mobile phones. Now it has de-
lot launched a momentary lottery, six           a complex legal licensing process before       veloped a range of interactive prognostic
projects based on the umbrella principle.       launching mobile lotteries.                    games adapted to the Russian mentality.
                                                                                               They are officially registered. At the same
The most popular and successful project         The legal process of licensing Inter-          time Interlot is looking for new technolo-
is ”Golden Key”. More than 700 apart-           net and mobile lotteries is no different       gies to make traditional lotteries more ac-
ments have been raffled off over the past        from the process of licensing traditional      cessible all over the country. We already
10 years. This Lottery is a leading game        games. A federal authority issues the li-      use terminals to accept payment for the
not only among Interlot portfolio, but also     cense but only to Russian applicants. In       sale of pre-printed lottery tickets. We up-
at national level. The ticket price for TV      the Russian Federation such an author-         graded our own site to accept sales of pas-
lotteries is 50 roubles, for instant lotter-    ity is the Federal Treasury Department.        sive lotteries on the Web and developed
ies: 10 roubles.                                To get a license to run a lottery on the       active games with a range of combina-
                                                territory of the Russian Federation, the       tions. In summary, it should also be stated
7HO ARE OUR PLAYERS                            applicant must submit all documents            that now Interlot has moved into a stage of
Although marketing researches with a            required by federal gaming law. Within         intensive and extensive development.

                                                5   PAN   RAMA
Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
Playing Lottery in Eastern Europe

                     Bosnia and Herzegovina       LUTRIJA BIH: A LOTTERY WITH A HEART

The basic activity of the Lottery of Bos-                                                       The Audi TT ticket is particularly popu-
nia and Herzegovina (BiH) is to manage                                                          lar among our players. There are 2 games
games of chance and fun games all over                                                          on one ticket. By scratching one of two
the Federation of Bosnia and Herzegovi-                                                         specifically indicated fields, one may win
na. In 1973, the Assembly of Bosnia and                                                         valuable cash prize, while by scratching
Herzegovina established an independ-                                                            the other indicated field, i.e. the car reg-
ent Lottery organization called “Lutrija                                                        istration plate, one may win 1 of 10 Audi
BiH” which until then had been operating                                                        TT cars. The price of this ticket is 2 KM,
since 1951 under a Yugoslav Lottery sys-                                                        while all other tickets cost 1 KM and for the
tem. Consequently, pursuant to the Law                                                          replacement of a ticket, an additional pay-
on Games of Chance, the Government of                                                           ment is required.
the Federation of BiH is a sole owner and         3PECIAL GAMES OF CHANCE
founder of the Lottery of BiH. Our Lottery        s #ASINO GAMES                                Audi TT ticket
organization is a Member of the European          s 3LOT MACHINES IN GAMING CLUBS
State Lotteries “EL”.                             s "ETTING GAMES
The BiH Lottery operates under the con-           With the aim of organizing modern, attrac-
trol of a Board of Directors. The President       tive and diverse games of chance, special
of the Board is Zdravko Rajic. Muris Aga-         attention has been given to the joint-ven-
nagic, General Manager, is the head of the        ture project done in cooperation with the
BiH Lottery. Game development contin-             Austrian Gaming Industries that allowed
ued until 1992, but then the political situa-     the implementation of slot machines.
tion brought any new development in lot-          There are currently 40 gaming clubs in
tery games to an end. In 1996, there was          the country. 1000 slot machines have been
a renewed interest in games of chance.            installed throughout these clubs where a
Since then, we have re-established our            very attractive jackpot is being offered.
retail network, supported by our own in-
vestments and without any donations or            'RAPH OF THE TURNOVER OF "I( ,OTTERY PERIOD  
assistance from third parties. In an effort
to maintain our leading role in organiz-
ing games of chance, we are continually
monitoring any development in modern
technology, as well as the latest trends in
this field.
The BiH Lottery complies with the stand-
ards for responsible gaming activities and
it has implemented a new technology to
improve its payment process and fulfil its
obligations towards the players. Current-
ly, we are providing service to 350 points
of sales all over the Federation, a coun-
try with 2 million inhabitants. In order to
make our games more accessible and of-
fer a more efficient purchase and payment
process, we are planning to expand and            #LASSIC GAMES OF CHANCE                      The BiH Lottery is an interesting employ-
adapt our current retail network.                 s ,OTO   COMBINATION COSTS   +-      er, offering its employees a possibility of
The BiH Lottery has a strong presence             s *OKER                                       constant professional advancement, con-
on the national market thanks to its wide         s 46 "INGO THE MOST POPULAR GAME OF          tinued improvement of working condi-
range of games that are constantly re-            chance in our country). The price of a        tions and career promotion. A motivating
viewed and refined in order to meet the            bingo ticket is 1, 50 KM for the regular      working environment is created through
expectations and needs of our players.            draws and 2 KM for extraordinary draws.       an appropriate award system. In all as-
The games assortment consists of special          s Instant Tickets with merchandise and cash   pects of our business, we have proved that
and classic games.                                prizes (Horoscope, Prati srecu /Follow your   we really work in accordance with the slo-
                                                  luck, Express lottery, Bingo and Audi TT)     gan: « The BiH Lottery has a heart».

                                                                                                Change : 1 BAM/MK = Eur 0.51

                                              6   PAN   RAMA
Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
Playing Lottery in Eastern Europe

                                 Bulgaria

Eurofootball was founded in 1990 and of-     Our retail network                              Most of our players rely on their personal
fered its first nationwide game in 1993.      Eurofootball has 850 points of sales            knowledge, supported by the extensive
The company is the first licensed sports      with attractive exteriors and interiors,        volume of statistical data provided by
betting operator in Bulgaria, supported      throughout Bulgaria. Each retail loca-          EUROFOOTBALL.
by our shareholders, BILOT EOOD and          tion comes equipped with terminals, TV
EUROSADRUZHIE OOD. On the interna-           monitors and Internet connections. The          Gaming Legislation in Bulgaria
tional front, Eurofootball is a Member of    points of sales, open year round, are cen-      Eurofootball has a full range license al-
the World Lottery Association, the Euro-     trally located in towns and villages, and       lowing us to provide additional games,
pean States Lotteries and Toto Associa-      a high level of professional and technical      apart from the existing ones and to use
tion and EFP.                                services are offered for utmost clients’        interactive channels for distribution such
                                             satisfaction.                                   as telephone betting that is scheduled
Our company has adopted a policy of                                                          to be launched during the second half of
corporate social responsibility practices    #OMMUNICATION CHANNELS                          March 2009. We are also envisioning new
and, as a consequence a variety of insti-    Eurofootball’s website, www.eurofoot-           betting possibilities in the fall of 2009.
tutions benefit from our social involve-      ball.bg, has been receiving a lot of hits.
ment: The arts, sports organizations and     According to our latest survey, the number      The company holds a license, issued by
charity events promoted throughout the       of one-time visitors per month reached          the State Gambling Committee, for the
entire territory of Bulgaria. In 2007, Eu-   1.097.738 while the number of comeback          organization of betting on results from
rofootball received the top award in the     visitors amounted to 13.374.340.                sports competitions. In compliance with
Annual Ranking Contest of the newspa-                                                        the strict Bulgarian gambling rules and
per Pari for “Top 100 Biggest Companies      Eurofootball handles a newspaper with a         laws, Eurofootball monitors its business
in the Service Sector“.                      weekly circulation of more than 80.000.         activities and reports on-line to the Min-
                                             TV Eurofootball: The programmes are             istry of Finance. As per the Gambling
Our games                                    broadcasted in all POS, during the entire       Act, games of chance in Bulgaria can be
In August 2003, Eurofootball introduced      opening hours, and in some areas, they          organized and conducted solely by oper-
for the first time an on-line system based    are transmitted via satellite or cable.         ators licensed by the State Commission
on the IT infrastructure provided by                                                         on Gambling, which is the only compe-
INTRALOT. With this system, Eurofootball                                                     tent state authority in the country.
offers more than 20.000 betting options
in two weekly draws, covering more                                                           Eurofootball’s policy helps support the
than 20 types of sports, not counting the                                                    State Gambling Committee, thus protect-
Olympics. Our main products are:                                                             ing both state and consumers’ interests.
                                                                                             In addition, Eurofootball has been faced
Football & Sports betting program – a                                                        with a new challenge presented by ille-
combination of up to 3.000 betting events                                                    gal local gambling operations and Inter-
is offered (full-time, half time, double                                                     net operators and we have been gaining
chance, even/odd, under/over, correct                                                        ground in this fight by improving the
score, goal/no goal, etc.) twice per week.                                                   quality of our services and the products
Super Jackpot – a very popular game                                                          we are offering.
with 3 Jackpots, covering 10 to 14 foot-     Our player statistics
ball matches per draw.                       Looking at the statistics of past years,
Live Betting - Super chance – this pro-      Eurofootball is expecting more than 34
gramme offers up to 9.999 betting op-        Million visitors-players in its retail estab-
tions, Live Betting on more than 5 match-    lishments for the year 2009.
es per day and long term betting events.     Clients are predominantly male - 90%
Handicap – over 100 matches are offered      and among players, 50% are between
with this betting option in the Super        the age of 20 and 35 years. Players come
chance programme                             from all social classes, thanks to the at-
Basketball – this programme was              tractiveness and variety of the products.
launched in November 2004 and includes
81 matches.                                  About 37% of the clients are visiting Eu-
                                             rofootball’s points of sales for entertain-
                                             ment. Another 21% think that Eurofoot-
                                             ball is a nice way to spend their free time.

                                             7   PAN   RAMA
Playing Lottery Eastern Europe in - EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION
Playing Lottery in Eastern Europe

                                                      SAZKA –TENDING TO GOOD CAUSES AND SPORTS
                               Czech Republic         DEVELOPMENT
                                                      SAZKA currently operates approximately        ,EGAL GAMING REQUIREMENTS
                                                      6,500 on-line terminals for lottery and       The betting and lottery industry in the
                                                      non-lottery services and more than 1,000      Czech Republic is governed by Act No
                                                      terminals of the StarPort gaming system.      202/1990 Coll., on Lotteries and Other
                                                      Most of sales in the betting field are tra-    Similar Games. At the moment, the Minis-
                                                      ditionally generated by number lotter-        try of Finance is considering the merits of
                                                      ies. StarPort and odds betting shares are     a new bill that will reflect the changes the
                                                      also on the rise, with those segments         sector has gone through.
                                                      growing most dynamically. The greatest        The Act defines the individual betting
                                                      year-to-year rise was achieved in 2008        games and lotteries (cash or merchandise
                                                      by odds betting stakes (47.3%) and Star-      lotteries, raffles, number lotteries, instant
                                                      Port stakes (26.0%), while instant lottery    lotteries, slot machines, sports and odds
                                                      stakes were up by 3.8%. Non-lottery prod-     bets, casinos, technical games, horserac-
            JUDr. Ales Husak Chairman of the          ucts and services make up approximately       ing bets…) and the operators’ responsi-
            Board of Directors and General Director
                                                      10% of the company’s sales.                   bilities. Lotteries and betting games may
                                                                                                    only be operated by a legal entity with
                                                      +NOWING OUR PLAYERS                          registered offices in the Czech Republic to
SAZKA was established in 1956 and since               SAZKA regularly conducts surveys on bet-      which an authorised body has granted a
January 1, 1957, the organization has been            ting behaviour and bettors, in cooperation    licence. Only people above the age of 18
owned by civic associations active in sports          with renowned opinion poll agencies. The      may take part in a betting game or lottery.
and physical education. The Czech Re-                 surveys monitor individual player groups      As for the Lottery, the compulsory por-
public has a population of about 10 million           by staked amounts, betting frequency and      tion of proceeds allocated to good causes
people of which roughly 25% are members               type of games; Player profiles are moni-       ranges between 6% and 20 %.
of those associations. SAZKA has been the             tored by game segments (number lotter-        The licensing bodies are the Ministry of
largest provider of funds to good causes              ies, fast-draw games, sports and odds bets,   Finance and, for certain games, Town
in the Czech Republic for more than fifty              instant lotteries, reel-spinning and casino   Halls or City Halls. The preconditions for
years. While hundreds of operators are                games…) including products the com-           obtaining the licence include providing
active in the country’s gaming market,                pany does not operate (raffles, horserac-      the company’s capital assets and secu-
SAZKA makes up approximately 50% of all               ing, bingo, telephone competitions, bar       rity deposit, paying administrative and lo-
contributions of the sector to good causes.           games, general knowledge competitions,        cal fees as well as state supervision fees,
Neither the State nor any individual has              games with no stake required) and other       complying with the compulsory amount of
ever owned a share in the SAZKA joint-                leisure activities (theatres, cinemas, con-   payments to good causes or obtaining an
stock company, and SAZKA has never                    certs, sports…). The last surveys indicat-    expert opinion created by an independent
had the monopoly of the betting and lot-              ed that 75% of the adult population in the    expert. Pursuant to Section 50, the Min-
tery market in the Czech Republic. The                Czech Republic took part in games or bets     istry of Finance may also permit betting
oldest betting game, named Sazka (Toto)               with a stake required over the last twelve    games and lotteries not governed by law.
was launched in September 1956, while                 months. More than a third of them bet at      In that case, the terms and conditions of
the oldest number lottery, named Sportka              least once a week and approximately the       the operation are laid down in detail in the
(lotto) has been played since April 1957.             same number of people bet once a month,       licence, while new games are subject to
                                                      while the others bet less frequently.         the provisions of other sections of the Act.
/UR CURRENT GAME OFFER                               Games where a stake is required are more
SAZKA offers a variety of number lotter-              often played in the Czech Republic by
ies (Sportka, ŠĨastných 10, Euromilióny)              men, young and middle-aged people, peo-
and their optional features (Šance, Šance             ple with a secondary education level who
milión, Královská hra), as well as instant            have not graduated, people with average
lotteries, fast-draw games (Keno, Kostky,             or slightly above-average income, and
Lucky Lines), sports and odds bets. Also,             those living in larger cities. Most people
the StarPort gaming system, a central                 play number lotteries (more than half of
lottery system with interactive video-lot-            the adult population), followed by instant
tery terminals, which the company also                lotteries (one third of the population) and
operates, offers almost 30 reel spinning,             odds bets (one fifth of the population).
casino, lottery and betting games includ-             Ten percent of the population play slot
ing accumulated jackpot.                              machines, which SAZKA does not oper-          ! COMPETITIVE ENVIRONMENT
As far as non-lottery products and serv-              ate. The percentage of casino and fast-       A number of Internet betting firms ille-
ices are concerned, SAZKA provides, for               draw game players ranges between 0.5%         gally operate in the Czech Republic from
example, an additional service to mobile              and 6% of the population. Measured by         abroad, offering their products without a
phones which allows to sell tickets of                the amount of stakes, people spend most       licence from the Ministry of Finance, and
sports, cultural and other events, make               money on slot machines, technical games       thus operating at variance with the law.
payments by pay-slips, pay bills and in-              (interactive video-lottery terminals), odds   The amount of funds that Czechs spend
surance premium fees, as well as services             bets, casinos, lotteries and bingo.           with illegal odds betting operators is es-
and goods ordered over the Internet.                                                                timated at CZK 4 billion a year, i.e. one

                                                  8   PAN   RAMA
Playing Lottery in Eastern Europe

third of this market segment. The Ministry      and the operators are obliged to pay all       services, and utilising the potential of
of Finance has confirmed that the activi-        fees and contributions to good causes, as      products with the fastest growth rate, no-
ties of those betting firms are illegal, and     set out by law. The operators who have         tably Internet odds bets and the StarPort
brought several legal actions associated        obtained the licence have undertaken to        gaming system.
with them, with no real outcomes so far.        follow the European Responsible Gaming         In recent years, our company has paid
Due to the fact that illegal foreign opera-     Standards.                                     great attention to building up a compre-
tors are still operating Internet odds bet-                                                    hensive and mutually connected system of
ting, not allowed by the State, outside         /UR FUTURE                                    the corporation’s websites which include
any regulation, control and supervision,        At the moment, we can see an increasing        the following portals: www.sazka.cz (in-
the Ministry of Finance has allowed five         pressure in the Czech Republic for the         formation about the company, its lottery
domestic companies, including SAZKA,            liberalisation of reel spinning and casino     and non-lottery services), www.sazkatip.
to offer their odds bets over the Internet,     games over the Internet, and for allow-        cz (Internet odds bets), www.sazkastar-
effective January 5, 2009. Preconditions        ing bets over mobile phones. SAZKA does        port.cz (StarPort gaming system), www.
have been set up to obtain the licence:         not support those efforts, pointing out        casinosazka.cz (reel spinning and casino
Operators must have their players regis-        the risks involved, particularly in terms      games “for fun”), www.sazkaticket.cz
ter in person at retail outlets, get a thor-    of gambling addiction and underage gam-        (event ticket sales), www.tipovani.cz (dis-
ough identity check, prohibit access by         bling. At the same time, the company is        cussion server for bettors), www.o2arena.
third parties, and comply with responsi-        taking steps to be prepared for all alterna-   cz (multipurpose arena), www.kpsmedia.
ble gaming measures. The software used          tives of future legislative developments.      cz (subsidiary’s websites), www.kolby.cz
is subject to certification by an authority      Regarding its business activities, SAZKA       (subsidiary’s websites), Intranet for em-
approved by the Ministry of Finance, the        focuses on optimising its sales network,       ployees and Extranet for business part-
server must be physically located in the        supporting traditional and enhancing new       ners, providers and terminal operators.
Czech Republic, the state supervision au-       products, opening its loyalty programme
thority has on-line access to the system,       to customers of lottery and non-lottery

                                                CROATIA: FROM THE AUSTRO-HUNGARIAN EMPIRE
                                    Croatia     TO A MODERN LOTTERY
Games of chance on the Croatian territory       Parliament may determine the rights and        Game ‘A for Auto’ (December 2006), A
have been organized since the Austro-           obligations of this sole founder. A super-     + (March 2008), Bingo Plus (September
Hungarian times. A lottery organization         visory commission oversees operations of       2005), Keno (January 2006), two weekly
in the Republic of Croatia began in 1951,       the Croatian Lottery and a director man-       drawings for a Lotto 7/39 (May 2005), a
when a Division for Croatia was set up          ages the company’s operations.                 new revised platform for Betting games
within the Yugoslav Lottery. Croatia ac-                                                       (February 2008) and a redesign of the
quired legal jurisdiction over this entity in   Our Lottery has 1,518 full-time employ-        Joker game (April 2008). However, the
1973 under the name of State Enterprise         ees. Of this number, 753 are salespeople       greatest advance in our operations has
of the Lottery of Croatia, which became         and 420 are employed in casinos and            been the transition to a new communica-
part of the Business Community of the Yu-       clubs offering slot machines. In addition,     tions infrastructure that provides greater
goslav Lottery Organizations. With the es-      the Croatian Lottery cooperates with 806       capacity and new functionalities such as
tablishment of the Croatian State in 1991,      other retailers. It operates through 1185      implementation of online ticket sales, a
the relationship with the Business Com-         points of sale: 379 are owned or leased        new type of record keeping for sales and
munity of the Yugoslav Lottery Organiza-        by the Lottery and 806 are regular retail      inventory by means of an online transac-
tions ended, and in 1993, the Lottery of        shops, mostly tobacco and newspaper            tion system on all terminals and the intro-
Croatia changed its name to the Croatian        shops and convenient stores. In accord-        duction of a new ERP system.
Lottery d.o.o.                                  ance with the Law, payments to partici-        The Croatian Lottery currently offers the
                                                pate in games and buying lottery tickets       following games:
The population of Croatia is 4.5 million. In    are only accepted at points of sales. Re-
the last five years the average GDP growth       mote gaming is not permitted.                  Lotto 7/39: Launched in 1985, we are of-
in Croatia was about 5%, while the aver-                                                       fering since May 2005 two weekly public
age annual inflation rate in the same pe-        In the last several years the Croatian Lot-    drawings that are broadcast live every
riod was about 3.3%. The average annual         tery has successfully implemented new          Wednesdays and Saturdays. The high-
growth of the lottery turnover between          games and introduced important changes         est jackpot paid was about 2.5 million
2004 and 2007 was about 12%. The Re-            – Betting (June 2004), Occasional Lotter-      EUR. This Lotto generates the highest
public of Croatia is the sole founder of the    ies that combine classic and instant lot-      General Government Receipts (GGR).
Croatian Lottery d.o.o. Only the Croatian       teries (November 2004), the Occasional         ,OTTO : The drawings are also public
                                                9   PAN   RAMA
Playing Lottery in Eastern Europe

                                                                                                 Legal situation
                                                                                                 Games of chance in Croatia are operated
                                                                                                 under the provisions of Gaming Act of 2002.
                                                                                                 The Croatian Lottery has a monopoly on or-
                                                                                                 ganizing lottery games. The Gaming Act di-
                                                                                                 vides games of chance into four categories:
                                                                                                 Lottery, Betting, Casino and Slot machines.
                                                                                                 The Croatian Lottery is licensed to offer all
                                                                                                 of these games. For any new games, the
                                                                                                 Lottery must seek approval for the Rules
                                                                                                 of the Game from the Ministry of Finance,
                                                                                                 meaning that we must adhere to the provi-
and broadcast live on TV every Sundays.           The advantage of the Croatian Lottery          sions of the Gaming Act: A game of chance
The highest jackpot paid was 2.2 million          over other betting establishments lies in      - not a game of skill, structure of the game,
EUR. Our game of Joker is a supplemen-            the larger number of its own sales loca-       percentage of the payouts, ways in which
tary game to the Lotto 7/39, Lotto 6/45 or        tions where all other lottery products are     the draws are organized, etc. Remote gam-
Toto13 – by marking the Joker play area, a        sold, so the degree of utilization of the      ing still is not permitted. We expect that a
player participates in a game in which the        sales force is greater. Since bookmakers       new law, which is supposed to be passed
play slip serial number must match partly         in our country began to develop in 2000,       in the third quarter of 2009, will permit us
or completely the drawn Joker number.             and the Croatian Lottery began to organ-       to operate games via the Internet, mobile
                                                  ize betting only in June 2004, it must be      phones, ITV etc. This will be an important
46 "INGO : Recently created, it is a         stated that the penetration of this pro-       point to enable to enhance the channelling
successful TV Show watched on a regular           tected market was difficult. However, with      activities of the Croatian Lottery.
basis by thousands of viewers every Sat-          the implementation of second-generation
urday. All age groups are attracted to the        wagering systems, the Croatian Lottery         Unfortunately, our Gaming Act does not
game. Cash prizes are given to the show’s         could reach 50% more consumers in              recognize Internet operators as illegal op-
participants and the game has a supple-           February 2008, compared with the same          erators. Only the selling of tickets is illegal.
mentary game, Bingo Plus.                         period the previous year. These systems        Since Internet operators do not sell tickets,
                                                  brought new functionalities that were          they are not treated as criminal offenders.
Also, we offer a daily Keno, a prognostic         developed completely in-house, offering        The Lottery has tried to persuade the legal
game 4OTO  in which players bet on the          players an easier access to a game.            authorities that there are exceptions to an
outcomes of 13 football matches. On the                                                          orthodox interpretation of the law, but we
instant lottery front, we have launched a         While everyone plays Lotto (especially         have not had any success. We are expect-
variety of games: "REAK OPEN %XPRESS ,           7/39), Instant and Express lotteries, more     ing that the new Gaming Act will explain
Instant tickets and Occasional lotter-            women play the promotional games, oc-          precisely what a violation is or is not.
ies (Christmas, Easter for example.)              casional lotteries and bingo. More men
Betting has been implemented in 2004.             bet in the betting shops and go to casinos.    0LANS FOR FUTURE IMPROVEMENTS
We present our bet offers through an IT           Also, the promotional games, using a cou-      Many approaches can be key developmen-
support that has given players more op-           pon, are more accepted by older players        tal factors for our future. Strengthening our
tions, such as playing on multiple systems,       and games via SMS are more attractive to       brand as a competent, responsible organizer
more events for one ticket, a simpler way of      the younger population – Such a market         of games of chance for one; Increasing the
filling out the play slip, as well as additional   analysis will help us evaluate if we need to   share of the Sports betting market; Limit
services such as for example SMS check of         adjust the prize fund.                         our risk with implementation of modern se-
the status of players’ betting tickets, and                                                      curity systems; Migration from a selling net-
payment of the winnings within 30 minutes         Almost half of the respondents play games      work owned by the Lottery to a retailer net-
of the end of an event. We also operate 26        of chance one to four times per month          work; Addition of multi-jurisdictional games
slot machine venues and seven casinos.            (48%). Male, younger and not yet part of       with a larger player base and therefore the
Our most successful games are Lotto 7/39          the work force (mainly undergraduates)         opportunity for larger jackpots; And innova-
and Sports Betting. The bingo game is in a        respondents play more frequently com-          tion through the use of new technologies,
steady third place. Although the Lotto 7/39       pared to the rest of the respondents of        and new sales channels (Internet, mobile
is the leading game in terms of GGR, Sports       the cited groups (for betting games). The      telephones, ITV, self-service machines) for
betting surpasses Lotto 7/39 if total turno-      highest number of respondents spends up        both new and existing games.
ver is taken into consideration. In regard        to 100 HRK per month (81%), while 1% of
to betting, the Croatian Lottery must take        those spend more than 1,000 HRK. By age
into account the strong competition from          groups, the 18-34 years old spend more
11 registered and well-organized book-            than 1,000 HRK per month, and based on
makers that together have more than 2,200         gender, only men spend more than 750
sales locations in the Republic of Croatia.       HRK per month – again for betting games.
                                             10   PAN   RAMA
Playing Lottery in Eastern Europe

                                        Serbia     SERBIA: A LOTTERY WITH GREAT FUTURE
                                                   had a 23.90% share of the market in 2008.          0LAYER DEMOGRAPHICS
                                                   Scratch cards were first launched in June           The last survey we conducted was in Feb-
                                                   2005. They became a very popular form of           ruary 2008. The results show that 51% of
                                                   games, due to the opportunity to win instant-      players are men versus 49% for women –
                                                   ly with a low initial investment. However, no      with 58% being married and 42% single. The
                                                   new instant tickets were launched for over         largest player group is among middle-aged
                                                   two years prior to 2008, thus the decline in       persons (30%), followed by young players
                                                   turnover was obvious. By mid-2008, we              (22%). More than half of players have at least
                                                   started a strong product innovation process        a secondary education (52%) and 32% be-
                                                   with the launch of 4 new instant tickets: Our      long to the category with a primary or even
                                                   instant sales improved. Presently scratch          lower education level. University graduates
                                                   tickets account for 15.41% of the market           play the least (16%). Most players reside in
                                                   share. Our plan is to grow this segment in         urban environment (59%) while 41% live in
             Tijana Andjelic General Director
                                                   the upcoming period. At the moment, we of-         rural areas. And Central Serbia comes ahead
The Serbian State Lottery was launched at the      fer a variety of 6 scratch tickets, with differ-   with 50% of players while in other regions,
end of November 2004. Presently, we are op-        ent price levels and prize structures. One of      Serbian are less interested in games with an
erating 5 games: Lotto, Bingo, Instant Lottery /   the best selling tickets in Serbia remains the     average of more or less 25% of players.
Scratch tickets, SMS lottery and Tombola.          one with an Audi A3 as the main prize, and
Our game of LOTO has acquired legendary            we also launched a «win for life» card.            Game legislation
status and is now a household name for             Our experience tells us that there would be        While we have the monopoly in classical
Serbian people. It is the number 1 game in         a huge risk of losing customers if we were         games (Lotto, Bingo, Scratch tickets), we
Serbia with very high brand awareness and          to eliminate low price tickets. Thus the low       also have the monopoly in Internet gaming
over 50% share of our portfolio. LOTO was          cost segment accounts for the major part of        and mobile phones. We have the possibility
launched in January 2005 and since then,           the business – with ticket prices going from       to add other games, and for each new game
it has been associated with “dreams come           as low as e0,3 up to e1,1. Last New Year, we       we want to add, we need to get first the ap-
true”, “chance for everyone” and benefits to        launched a new instant game with a price of        proval from the Board of Directors and the
the whole community. Our lotto game is a           3,2 Euros. This more expensive instant did         Ministry of Finance.
7/39 formula that is tailored to fit our play-      not quite fulfil our expectations, mainly due       In respect to sports betting, video lottery and
ers’ gaming patterns with a small number of        to a late launch. However, we realized there       other types of games, there is an open and
maximum prizes, attractive mid-tier prizes         is definitely a potential in the high ticket        very competitive market in Serbia. No meas-
and a high number of low-tier prizes. In           cost segment and we’ll launch new tickets          ures have been taken yet against foreign
particular, the jackpot starts at e350 000         in 2009 with better planning. This instant         offshore-based operators of mostly Internet
with a rollover of e100 000 added to each          ticket had the largest prize payout percent-       games like Poker or sports betting or even il-
draw if there is no winner during the last         age – 72%, while the payout for other games        licit local ticket sales. Of course, the Ministry
draw. Last year, more than 9.7 million single      varies between 50 and 65 percent.                  of Finance and its Games of Chance Admin-
prizes, including jackpots, mid-tier and low                                                          istration have assured us that all efforts will
prizes, for a total amount of 23 million Eu-                                                          be put in place to find a solution to undertake
ros in prize payouts, have been won. The TV                                                           these activities – an important step, espe-
Game Show is broadcast on RTS 1 television                                                            cially once the State Lottery of Serbia starts
channel at 21h00, on Tuesday night. In 2007,                                                          operating its games on Internet.
“Republika Srpska” joined our jackpot list.                                                           Regarding local competitors, currently we
A TV Bingo is present on the market since                                                             have a wide range of indirect competition
September 2007 and goes live on the air                                                               coming from businesses such as newspa-
every Saturdays. Players must play during                                                             pers, magazines, banks and others. These
the TV Bingo show. The numbers are drawn           A SMS Lottery was implemented in Decem-            private companies try to increase their rev-
from a series between 1 and 90, until a win-       ber 2008 and the first round of the game            enue by offering prize games in line with the
ner has been established and until 15 win-         lasted 4 weeks. By sending a blank SMS to          prizes we offer. Also, some local companies
ning numbers have been drawn in one com-           8888 the player enters the game. Winners           provide Internet gaming that is not allowed
bination. In 2008, we re-worked the whole          are being picked on a daily and weekly basis       nor legally authorized.
TV Show, changed the communication, the            and once in every gaming period, the jack-
set and the airtime from 9 pm to 6 pm. The         pot is being drawn at the Lottery via an elec-     /UR FUTURE
ratings of the show jumped almost imme-            tronic system. This lottery’s share in 2008        In 2009, the State Lottery of Serbia plans to
diately. A total prize sum of e11.1 million        was 1.25% of our game portfolio.                   strengthen its gaming model in order to bet-
was awarded during 2008. Beginning of              The Tombola game is actually a classical           ter serve the players, the government and
2008, we increased the price of the Bingo          Bingo game operated by 53 agents in ven-           the society’s interests. There are 3 priorities
ticket by 30% from 60 Din (e0,63) to 80            ues such as Tombola clubs across Serbia.           in this area: Reinforcing our sales network,
Din (e0,85). As a result, sales decreased by       The numbers are drawn from a series be-            launching Internet and poker games, and
more than 10% leading us to the conclusion         tween 1-90. 15 correct numbers make for            getting ready to enter the sports betting
that Serbian players are still very much in-       a winning ticket. Tombola has a share of           market in a regulated and controlled format.
terested in cheap, accessible games. Bingo         8.98% of the market.
                                                   11   PAN   RAMA
Playing Lottery in Eastern Europe

                                  Hungary      SZERENCSEJÁTÉK ZRT., OF HUNGARY
Szerencsejáték Zrt., launched on January       ing Supervisory Board is entitled to issue
1st of 1991, is the largest gaming serv-       the licenses. If the game documentation is
ice provider in Hungary. It has exclusive      in accordance with the Hungarian Gam-
rights to distribute number lottery games      ing Act, the license is granted within 60
and instant tickets throughout the entire      days and the game can be introduced to
country. Also, the Lottery has interests in    the market.
four Hungarian casinos.                        The main steps of the authorizing proce-
                                               dure are as follows:
7HAT WE PLAY
                                               s -ANAGEMENTS DECISION
The Lottery institution operates a nation-
                                               s $ESIGNING THE NEW GAME RULES OF THE
wide retail network, supported by an on-
                                               game, calculations, figure of the game, etc.)
line technology. The majority of products
                                               s 0ETITION TO 4HE 'AMING 3UPERVISORY
are available by phone, on the Internet
                                               Board and pay the fee
and via SMS, too. Currently, the Lottery
                                               s /BTAINING A LICENSE
operates seven number games (5/90 lot-
tery, 6/45 lottery, Scandinavian (7/35)
Lotto, Joker, Keno, Luxor and Puttó), four
                                                                                              machines, formerly allowed only in exclu-
types of sports bets (Toto Pools, Tippmix,
                                                                                              sive casinos, were made available to the
Tippmax and Goal Toto), and a portfolio
                                                                                              general public in more and more public
of 10-14 varieties of instant tickets. In-
                                                                                              places. The tax regulations, implemented
stants are sold for 200-300 and 500 HUF
                                                                                              by the Act on Gaming Operations that was
(from 0,66 to 1,66e).
                                                                                              passed in August 1991, created a detri-
$EMOGRAPHICS OF OUR PLAYERS                                                                   mental position mainly for the Lottery
Two thirds of the Hungarian adult popula-                                                     and pools. The purchasing power of the
tion, evaluated at approximately five mil-                                                     population declined, and players became
lion people, are regular customers of our                                                     less interested in traditional games. The
Lottery. Our company has a market share                                                       expansion of game management activi-
of more than 50% in the Hungarian gam-                                                        ties and the participation in the organiza-
ing market. As a result of the company’s                                                      tion of horseracing bets, also showing a
dynamic growth, the average gaming rev-                                                       decline, were not successful ideas either.
enue per resident is the highest among                                                        Consequently, Szerencsejáték Zrt.’s rev-
the lottery companies of Central Eastern                                                      enue in real terms kept falling until 1994.
European countries. Szerencsejáték Zrt.                                                       The Lottery had to find a way out of the
has increased its turnover by nearly 70%                                                      pressing situation through technological
over the past two years.                                                                      development with the aim of strength-
Our market researches show that instant                                                       ening trust, extending the range of tra-
lotteries are by a slight margin the pre-                                                     ditional games and modernizing its sales
ferred games for players in the age cate-                                                     network. Through the rationalization of
gory of 30+, compared to younger players.      Game environment                               the business policy, the gaming profile
Regarding other demographic parameters,        Until the end of the 1980s, the Hungarian      became clearer, and the organization
women tend to buy tickets slightly more        gaming market was characterized as a mo-       of horseracing bets was taken out of its
than men. Also, players with lower edu-        nopoly environment. The product range          scope of activities. The amendments of
cational level prefer these types of tickets   consisted of traditional pools and lottery,    the Act on Gaming Operations also made
compared to players with a higher educa-       and a few prize draws, which were very         its contribution to the consolidation of the
tion. In terms of income, we can say that a    popular among the population. The other        market. The sale of draw games, sports
typical instant player has average or lower    segments of the gaming market, such as         bets and prize tickets were assigned un-
income. These differences compared to na-      horse racing and casinos, attracted only a     der the company’s exclusive competence;
tional values are very small, though.          minor group of players.                        Restrictions were imposed on operators
Legal situation                                Szerencsejáték Zrt. was founded in a pe-       with an unclear background, stricter con-
For each new game, a license must be           riod, which coincided with the liberaliza-     ditions were introduced for the issue of
obtained from the Gaming Supervisory           tion of a considerable part of the market.     casino licenses, while under the new con-
Board, which is an agency within the           As a result, private and foreign operators     ditions of taxation, slot machines emerg-
Treasury Department. The license proce-        appeared on the markets of both draw-          ing from their illicit position began to ex-
dure is regulated by laws: The two main        ing games and prize tickets. It resulted in    perience a dynamic development. By the
regulations are the Hungarian Gaming           an oversupply of gaming activities. The        end of the 1990s, the Hungarian gaming
Act - 1991: XXXIV Act, and its Executive       number of operating licenses for casinos       market had sprung into a two-commer-
Act – 32/2005. (X.21) PM. Act. The Gam-        exceeded market demand, and the slot           cial-pole activity.

                                          12   PAN   RAMA
Playing Lottery in Eastern Europe

                                              We haven’t undertaken any special               4HE FUTURE
                                              measures against foreign operators and          The future improvements focus in provid-
                                              local competitors. Our company has good         ing modern forms of entertainment for
                                              reputation, and we aspire to preserve it.       the players, while maintaining a responsi-
                                              Our company aspires to comply with the          ble approach. New sales channels, namely
                                              requirements of the market (successful          mobile betting and ATMs, have recently
                                              games, reliability – payments in full of        been added besides the traditional ter-
                                              jackpot’s prizes, advertisements, etc.). We     minal-based sales network and Internet.
                                              also enhance the requirements for Corpo-        New developments are being evaluated
                                              rate Social Responsibility. Szerencsejáték      for self-service terminals, special mobile
                                              Zrt pays particular attention to the securi-    games and interactive television.
                                              ty of games, in order to retain the trust of    In terms of instant tickets, we are plan-
                                              players. Sales and data processing are ex-      ning to launch a new ’top high’ (1000
                                              clusively performed electronically these        HUF – 3,33e) price category in the
                                              days, whereby any bet made at any point         near future. Also, in November 2008, we
                                              in the country is entered into the central      launched “World Poker Tour”, which is
                                              computer system within five seconds. The         the first licensed game in Hungary. With
                                              security of the system is guaranteed by         this scratch card, players can apply for a
                                              strict internal regulations, and the fairness   second chance draw where they can win
                                              of the games is ensured by the presence of      exclusive poker merchandises over the
                                              a Public Notary, as well as overall control     usual cash prize. Also, we are looking at
                                              by the Gaming Supervisory Authority. The        introducing in the upcoming years other
                                              coverage of the network is now almost           licensed games. This year, our new target
                                              complete. The full range of games is avail-     is a Monopoly game that could be an inter-
                                              able at 3,600 points of sale, of which 298      esting board game type for instant tickets.
                                              are Szerencsejáték Zrt’s outlets.

                                  Ukraine     M.S.L. and the future of Lottery in Ukraine
Founded in 1971, our company has come         The most successful game has been «Lo-          won the apartment. The lottery ticket
a long way and has followed a success-        to-Zabava» (a bingo game), which this           itself shows a map and the scratch area
ful path of development. From a Soviet        year will celebrate its 10th anniversary.       serves as a substitute for the dice.
state-owned enterprise to a modern lot-       It still is the most popular game in the        This game enjoys a wide appeal because
tery company, we are now the largest op-      country not only with the largest audi-         of the many interactive competitions that
erator of lottery games in Ukraine. When      ence of players, but also with consist-         take place during the TV show, giving view-
Ukraine became an independent nation,         ently high television ratings. Another          ers a chance to win a flat. The lottery game
our company was renamed in 1991 after a       game has been quite successful: An unu-         has been played for over 4.5 years and has
famous Soviet number lottery, «SportLoto»     sual lottery called «Who’s There», with a       remained widely popular among players.
(the first edition was held in April 1971):    unique drawing mechanism, and a partic-         Early this year, we have chosen to present
«MolodSportLoto», and in 1999, our com-       ularly captivating prize: A chance to win       this game «Who’s There» at the seminar
pany’s name became the current «M.S.L.»       an apartment. The idea of such a game           «New Colors of Advertising» in London.
                                              came from our company’s staff. This is an
Our best brands                                                                               7HO PLAYS WITH US
                                              instant lottery. One of the prizes is an op-
Today, we carry almost every type of lot-                                                     We have studied the many categories of
                                              portunity to participate in the TV game
tery games: Classic number lottery «MEG-                                                      players and their preferences. The re-
                                              show that offers a flat as its main prize.
ALOT», lottery bingo «Loto-Zabava»,                                                           sults show that the ratio of men to wom-
                                              This lottery game is based on a popular
lottery TOTO «Sportprognoz», instant                                                          en roughly equals: 50/50. The education
                                              game that is played with a dice. Players
lottery with TV draws: «Who’s There»,                                                         level of most players is high school or col-
                                              take turn to throw the dice and walk on
lottery pick-4 «The race for money», and                                                      lege. The most active players belong to
                                              the map. The one who finishes first has
more than 10 instant scratch-off lotteries.                                                   age groups 40 +, and 25-29. There was
                                              13   PAN   RAMA
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