| Creating A Lottery For The Future
NLC
Publishes History of National Lottery Competition
UNITED KINGDOM
(April 30, 2008) -- The National Lottery Commission (NLC) has today published
Creating a Lottery for the Future, a transparent report of its competition
process to award the third National Lottery licence.
Mark Harris, Chief
Executive of the National Lottery Commission said:
“This document is
a transparent record of a complex and challenging process. The National Lottery
Licence competition is a multi-billion pound industry deal which was designed,
run and evaluated over an intensive four year period.
“There are
few lotteries worldwide which undertake a competition for the whole lottery
operation as we do in the UK, and certainly none of the same scale. Our
competition was therefore unusual, and demanded a consortium with a specific
range of skills including experience of running lotteries, lottery technology
and understanding of the UK retail environment.”
The document
captures the process by which two bidders competed for the ten-year licence,
and the use of third party expert advisers to create the best possible
competition. The NLC sourced extensive consultation, analysis and feedback to
ensure the process generated optimum returns for good causes; to date £20
billion has been raised and 280,000 grants awarded.
To download Creating a
Lottery for the Future, please visit www.natlotcomm.gov.uk
For further
information please contact: National Lottery Commission Press Office on: 020
7016 3431/ 3422, Out of hours: 07802 849965.
SOURCE: National Lottery
Commission media release Ref 03/08.
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La
Fleur’s 2008 World Lottery Almanac -- Sweet16 Edition (Available April 3
2008)
The 470-page La Fleur’s 2008 World Lottery
Almanac is the complete reference source on the $224 billion worldwide lottery
industry. Section I features a “Fast Facts” compilation of
data on North American lotteries, including startup history, guide to product
mix, government profits earmarking, lotto matrices, worldwide lotto matrices,
top lotto jackpots and video lottery terminal guide.
Section II features
four-page profiles on 44 U.S., five Canadian and six Australasian lotteries.
Each profile traces the lottery’s calendar 2007 versus 2006 sales by game
(instant, 3-digit, 4-digit, lotto, cash lotto, keno, VLTs, niche games), its
calendar 2007, 2006 and 2005 instant sales by price point ($1, $2, $3, $4, $5,
$7, $10, $20) and its projected fiscal 2008 versus fiscal 2007 ad budgets by
media and by game. Each profile tracks the lottery’s five-year annual
sales by game from fiscal 2003 through fiscal 2007.
Each profile features
the number and the percentage of total, instant and online retailers by type of
business, plus each retailer’s fiscal 2007 total, instant and online
sales. Section III is divided into seven chapters: worldwide lottery sales;
fiscal 2007 sales, profit and expense analysis; the retailer network; ad
expenditures; historical analysis; contractor survey; and calendar 2007 U.S.
lotteries’ weekly sales by game.
The worldwide lottery sales chapter
tracks calendar 2007 game sales in local currency and converted to U.S.
currency for approximately 180 lotteries worldwide, including rankings by total
and per capita sales for instant, lotto, total, keno, toto and draw games.
There is a separate section on VLT net machine income rankings. The
historical analysis section features the U.S., Canadian and Australian
lotteries’ annual sales by year for the past decade for instant, pulltab,
3-digit numbers, 4-digit numbers, in-state and bloc lotto, keno and video
lottery terminals.
The contractor guide features a monetary guide to U.S.
lotteries’ instant ticket and online system contracts. In addition, there
is a worldwide guide to instant printers, online system and VLT vendors’
contracts by lottery organization. The appendix includes a glossary of terms,
lottery address directory and supplier directory.
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Privatization of state-controlled gambling
operators
Only hype or a reality in the near
future?
Detailed industry report analyzing one of the most
relevant and controversial issues of state shareholders in the gambling
industry.
Hard-to-control Internet gambling offers and the
intensive debate about increasing liberalization make life difficult for
state-controlled operators. Although they recently won some
“battles”, according to many experts business will not get any easier
for them, and the value of state-controlled operators will probably decrease
rather than increase in the future.
This fact combined with tight budgets
might lead a growing number of state shareholders to see the regular
contributions to state budgets in jeopardy and prompt them to consider
privatizing their gambling operations as soon as possible. Indeed, recent and
current privatizations, such as those of the Greek OPAP and the UK tote, show
that this is not just idle speculation. Furthermore 73% of the experts surveyed
expect that the number of privatized state gambling operations will continue to
increase in the near future.
But what exactly are the advantages and
disadvantages of privatizing the gambling sector besides filling up state
coffers? Many complex issues have to be analyzed closely in advance, for
example:
- Are state-controlled companies really inferior and
inefficient compared to private operators? While some state-controlled
operators, such as German WestLotto, work even more efficiently than some
privatized companies, others are indeed far more inefficient.
- How could a privatized operation be regulated to
prevent excessive gambling or other negative side effects?
- What are state-controlled gambling operators worth
and how could they be valuated meaningfully since the number of examples to
refer to is limited.
The report addresses primarily state
shareholders and provides an objective analysis of all relevant issues as well
as firsthand information about possible options for privatization and their
implementation. The results are based in part on a survey of more than 90
industry insiders who offered their unique insights. The report is coauthored
by many renowned experts, among them the investment bank
Sal. Oppenheim and industry insiders
such as Rob van der Gaast and Wulf Hambach.
View
Brochure and Table of Contents
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Lottery Benchmarking and Success Factors - Benchmarks, Success
Factors, and Best Practices
Unique benchmarking report
for the global lottery industry including analysis of sales, costs, and sales
channels
Global lotteries have a growing interest in benchmarking as the
recent WLA seminar “Benchmarking Lottery Performance” has shown and
also MECN has frequently been approached regarding benchmarks for key business
areas of the lottery industry.
In response, we have prepared a unique
benchmarking report analysing data from more than 150 lotteries for the years
2005 and 2006. The report also discusses best practices as well as success
factors (results of a survey) and includes the following
analyses:
Sales benchmarks - total sales and product
related sales (e.g., lotto, betting, instant, …)
Sales channel
benchmarks - number of residents and catchment area per average
outlet, interactive/Internet sales per capita and per registered user, …
Operating expenses benchmarks - operating expenses in % of
sales and analysis of economies of scale.
Marketing
benchmarks - Marketing/advertising expenses in % of total sales, min.
and max. spending, and optimal media mix of the ad budget.
Human
resource benchmarks - Personnel expenses in % of total sales, average
personnel expense, and sales per employee
Various others -
Retailer commissions, prizes, IT and communications, .....
The analysis of
the success factors is based on a survey conducted among nearly 50 executives
of the foremost European and US lotteries - among them the who-is-who of the
lottery industry. In total, the report has 95 pages and more than 80
graphs/exhibits.
Update
10 -- A Briefing from the National Lottery Commission
UNITED KINGDOM (January 14, 2008) -- Update 10 -- A briefing from the
National Lottery Commission.
Counting down to 2009
CONTENTS:
1) Gender and the jackpot
2)
Commission contacts
3) New Licence – what happens next?
Also in this
edition of Update is news of our research into female Lottery players.
Understanding motivations is essential if we are to continue to regulate in the
best interests of players, and this latest research offers some valuable
insights.
Click
here to Download Document (PDF, 166 KB).
SOURCE: The National Lottery
Commission.
UK Gambling
Commission E-bulletin
BIRMINGHAM, United Kingdom
(December 28, 2007) -- The UK Gambling Commission
publishes a fortnightly electronic bulletin containing all the latest news
from the Commission and DCMS, notifications of approaching consultation
deadlines, and publication announcements..............Subscribers
Australian Gambling
Statistics
The Office of Economic and Statistical
Research (OESR) is pleased to advise that the 24th Edition of the Australian
Gambling Statistics is scheduled for release on Monday, 7 January 2008.
Australian Gambling Statistics is a comprehensive set of statistics
relating to gambling in Australia for the entire range of legalised Australian
gambling products.
This edition updates data for the entire range of
legalised Australian gambling products from 1980-81 to 2005-06 and features a
new easy access publication structure.
Australian Gambling Statistics is
produced annually by OESR in co-operation with all Australian State and
Territory governments.
The publication has been in production since 1984.
OESR has been responsible for producing this publication for the past three
years. The publication was previously produced by the Tasmanian Gaming
Commission.
If you would like to purchase a CD-ROM copy of the publication
($175 including GST, postage and handling), please complete the order form
available below and send it along with your payment details to OESR.
Australian
Gambling Statistics, 2007 order form pdf (45 kB)
For more information
on this publication please email us at
oesr@treasury.qld.gov.au
For
details about editions before 2003–04, including ordering copies of these
editions, please contact the Tasmanian Gaming Commission on +61 3 6233 2475 or
gaming@treasury.tas.gov.au
Principles of Contemporary
Lottery Marketing Is Now Available
BOYDS, Maryland, USA
(December 2007)- TLF Publications, Inc., publisher of La Fleur's Magazine, has
just released the all-new La Fleur's Principles of Contemporary Lottery
Marketing (3rd Edition). In classic textbook style, the book features 29 case
studies of new lottery game start-ups or relaunches in Australia, Canada,
Eastern and Western Europe, New Zealand and the United States-including
instant, daily numbers, lotto, multi-jurisdictional lotto, raffle, bingo,
hybrid and video lottery.
The hard-bound book also includes a companion DVD
and CD set featuring examples of television, radio, print, Internet and
point-of-sale advertising for the featured marketing campaigns.
"It has been 13 years since TLF
Publications last compiled the 2nd edition of Principles of Contemporary
Lottery Marketing back in 1994," said Terri La Fleur, publisher, TLF
Publications. "Case studies chosen for this book resulted from our editorial
research for stories published in La Fleur's Magazine. This book will
definitely add to the 'mindshare' among lottery marketers by illustrating what
their peers are doing around the world to grow lottery sales."
Among the
case studies discussed in the book are higher instant ticket price point
launches, instant campaigns integrating proceed beneficiaries, umbrella product
campaigns, sports league tie-ins, summer promotions, iBingo, mobile gaming,
BovineUnite, VIP clubs, street team marketing, text message marketing, Internet
Poker, family branding campaign, full-product line campaign, online variable
prize payout, EuroMillions, Big Wednesday lotto, 5-digit lotto, short-run
hybrid lottery, Fast Play Bingo, multi-jurisdictional raffle, King Kong
Millions raffle and line game VLT launch.
Each case study is presented in a
uniform format that details the following aspects of the campaign: competitive
environment, demographic profile of lottery players, marketing situation
summary, campaign objectives, marketing strategy and results. The case studies
in La Fleur's Principles of Contemporary Lottery Marketing are complemented by
extensive graphical exhibits of marketing pieces, including print
advertisements, Internet banners, point-of-sale pieces, retailer brochures and
game logos.
Principles of Contemporary Lottery Marketing (3rd Edition) costs
USD $395 plus postage and handling. It can be ordered online at
www.lafleurs.com or by emailing to
terri@lafleurs.com for an order form.
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Report -- Retail Strategies of Global Lotteries Differ
Significantly
MECN’s New Benchmarking Report Offers Unique
Insight Into the Retail Strategies of Global Lotteries
LONDON, UK
(September 25, 2007) -- Lotteries are increasingly interested in benchmarking
and success factors. And as the retail channel still dominates the global
lottery market, retail benchmarks and success factors are the ones many eyes
are foremost turning to. Key results of MECN’s new lottery benchmarking
study: retail strategies differ significantly, and many European lottery
monopolists employ a much less aggressive retail strategy than is sometimes
alleged.
Wide variations in regard to retail density
Although the
interactive channels are catching up, the retail channel is still by far the
dominant sales channel for lotteries. But the retail density among the
lotteries varies widely. For example, the number of residents per retail shop
ranges from more than 6,000 residents per outlet to less than 500, with the
overall average number of residents per outlet hovering around
2,000.
Retail strategies in comparison
In our analyses we found
that lotteries pursue very different retail strategies. The best way to
characterise these strategies is to compare the average number of residents per
outlet and the catchment area per outlet – the result is a 4-field matrix
based on the following basic strategic approaches:
Exhibit 1: Retail strategies in
comparison 
1. Absorption and
penetration strategy - Lotteries whose retail outlets have only a
small catchment area and also a low average number of residents per outlet, as
a rule, are primarily focusing on increasing their overall sales. This
aggressive absorption and penetration strategy might potentially be problematic
in the eyes of some initiatives for responsible gambling.
2. Large
area strategy - Particularly lotteries serving sparsely populated
large states, such as Atlantic
Lottery and Norsk Tipping, face
massive challenges in defining their retail strategies. In field 2 of our
matrix we find lotteries for which the low number of potential customers per
outlet is not an indication of maximum absorption of buying power, but rather
the consequence of a sparse settlement pattern.
3. Pinpoint strategy
- Many lotteries want their retailers to have a potential customer
base of more than 2,000 customers. So instead of increased absorption, these
lotteries are betting on moderate penetration and a responsible approach to
supplying customers with lottery products without stimulating excessive
gambling.
4. Conservative strategy - Some lotteries could,
according to our analysis, even increase the number of their outlets without
hurting their retailers’ bottom line and without risking criticism for
creating incentives for excessive gambling.
Many European lotteries
employ a rather moderate retail strategy
In the recent conflicts,
critics have often cited the size of the retail networks of European lotteries
as an indicator of their excessive expansion strategy. According to our
analysis, only few European lotteries pursue such an expansive strategy. Most
of them – among them the German
WestLotto and the Dutch De Lotto
– instead pursue a moderate pinpoint strategy (as described in point
3).
New lottery benchmarking report
The information above is taken
from MECN’s latest report “Lottery Benchmarking and Success
Factors” - a unique benchmarking report analysing data from more than
150 lotteries for the years 2005 and 2006. The report analyses, among other
things, sales benchmarks, sales channel benchmarks, operating expenses
benchmarks, and marketing benchmarks as well as success factors and best
practices.
The study can be obtained at:
http://www.lottery-benchmarking.mecn.net
About Media & Entertainment Consulting Network (MECN)
MECN is
a network of experts on issues concerning the media and entertainment industry.
Together they provide in-depth knowledge, analysis, and advice to global
clients.
CONTACT: Martin Oelbermann, Tel: +49 (0)89 3835 6785, e-mail:
pr@mecn.net 
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