Why Lottery needs a multi channel approachRICHARD BATESON, 5TH NOVEMBER 2013

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• Our philosophy

• Background – our players

• The need for multi-channel

• The results

Our philosophy

Allow players to play wherever and whenever they want to…

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It is about player convenience

We don’t tell our players where to play, they tell us!

Background – our players

The UK lottery operates in one of the most competitive markets in the world

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9,000 Sports Betting outlets 677 Bingo Halls

144 casino’s800 Society Lotteries

2,000 gaming centres

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The UK lottery makes up only 22% of the gambling market

UK consumers have ‘choice overload’Camelot has had to innovate

Compounded by consumer changes

The changing consumer: 2013

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Consumers are adopting technology quicker and this will accelerate

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To reach an audience of 50m took:

50

radio years

30

TV years

4Internet years

3iPod years

1Twitter year

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Smartphones are accelerating this need for convenience

Retail is adapting to convenience demanded by consumers

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Use of smartphones in-storeClick and collect

E-vouchers/couponingSelf serve/self check-out

Taking the store to the shopper…. the list goes on

The need for multi-channel

The need?

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• Our core-weekly players don’t demand it!• You can’t download an Instant• You can play in thousands of shops in my

State!• Business has grown by over 3.5% last year!

• Who are we missing from our current set-up?

• How can we become relevant to more consumers?

• How can you fend-off competition?• How can we make the lottery more

convenient?

V’s

The facts

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Player penetration is fallingYounger players aren’t interestedin the current tired lottery formatToday’s consumer expects immediacy and convenience from all brands Gamification/other leisure activities are stealing our lottery $

The offer

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Offer full interactive services: - PC, smartphone and tablet (today)Continue to invest in retail: - UK $220m over the last decadeCarefully target players to complimentspend and bring in new players to the lottery

Continue to invest in retail!

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Place order View & select Pay Receive

tickets

App

YOUR NUMBERS

My Card1234 5678

Scan phone order Virtual ticket / voucher

Paper ticket /Game Store

voucher

Scan player card / registered

Fast Pay card

‘DRP’ points

Traditional

Retail experienc

e

Digitalretail

experience

Place order View & select Pay Receive

tickets

App

YOUR NUMBERS

My Card1234 5678

Scan phone order Virtual ticket / voucher

Paper ticket /Game Store

voucher

Scan player card / registered

Fast Pay card

‘DRP’ points

Traditional

Retail experienc

e

Digitalretail

experience

The results

The results so far…

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Over 6 million players registered

Growing retail and interactive business - record lottery sales at $11bn - interactive sales over $1.9bn - retail has grown 28% over past 5 yearsPositivity and trust in the UK

lottery at record levels

Record participation levels – 70%+

Top 5 interactive site in UK and Top 3 consumer goods brands

Players shop across channels and their value increases as they do

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Retail Only 89%

On-line Only 5%

Multi Channel 6%

Participation by Channel

All Pla

yers

Retai

l Only

On-line

Only

Multi-C

hann

el

£3.98 £3.74 £4.46

£7.30

Average Weekly Player Spend (claimed)

In summary

Multi channel is not an if, it is a when

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Competition is increasing and requires innovation to stay ahead

Our players’ behaviours are changing and will do so more rapidly in the future – consumer expect immediacy and convenience

Multi-channel builds value - It is not about retail or interactive, it is about both

Need to invest in all channels Interactive will attract younger players and those not currently disposed to the lottery

Thank you