Confidential Property 1

Rick WeilPresident, Sciplay

A World of Possibilities: U.S. iLottery & iGaming

Confidential Property 2

THE LOTTERY UNIVERSE IS EXPANDING –BUT NOT OUT OF CONTROL

iLOTTERY JUST MEANS BRINGINGINTERNET & MOBILE CHANNELS INTO THE LOTTERY WORLD

Confidential Property 3

ECOSYSTEM STAYS THE SAME

STATELOTTERY

LOTTERYOVERSIGHT

GOOD CAUSES RETAILERS

SUPPLIERSPLAYERS

Confidential Property 4

Red Gaming

GAMING SPECTRUM

Loyalty & Rewards Programs

Social Games +

Virtual Goods

Draw Games

Electronic Instant Tickets

Bingo Poker Casino

Extensive 'player segmentation' research has shown that, just like in the offline world, players view lottery as distinctly different than gaming

iLOTTERY iGAMING

The global Green Gaming market was valued at approximately US$5.35bn in 2010.Growth is expected to reach 23.6% of total global interactive gaming by 2015, with a value of US$9.67bn.

Sports

Green Gaming

Confidential Property 5

CENTRAL GROWTH OPPORTUNITY

TOPLINE RESULTS

EU player research supports the importance of an online channel as a central growth opportunity

INTERNET IS AN IMPORTANT CHANNEL FOR NEW SEGMENTS,ESPECIALLY YOUNGER PLAYERS

Finding: 57% are in 18 – 44 Age Group

INTERNET GAMING HAS NOT CANNIBALIZED RETAIL LOTTERY SALES; THIS IS VERY CLEAR

Finding: Retail Sales Grew at 2X rate for Lotteries with Internet

ONLINE PURCHASES ARE INCREMENTAL TO OFFLINE

FINDING: 60% Report that EIT Purchases are in Addition to Retail Play

EU TRENDS TRANSLATE TO US LOTTERY MARKET

FINDING: More Than 45% in U.S. Report They Would Like to Buy Lottery Online

Confidential Property 6

RETAIL IMPACTIn the EU market there is more sales growth for lotteries with internet presence; an online channel supports retail growth & serves as a promotional tool to drive players back to retail.

2%

1%

Internet Sales

Retail Sales

3%

1% RetailSales 1% Retail

Sales

4%

Internet Sales

Retail Sales

6%

2%

DRAW GAMES5 YR CAGR GROWTH

INSTANT GAMES5 YR CAGR GROWTH

Lotteries With

Internet Presence

Lotteries WithoutInternet Presence

Lotteries With

Internet Presence

Lotteries Without Internet Presence

Sources: Sciplay Analysis, MECN Lottery Benchmarking Report

Confidential Property 7

• Draws new consumers to the games and grows retail sales • Lottery customers buy on average 50% more items in-store than non-lottery customers

• Drives new growth; does NOT cannibalize traditional lottery retail sales• UK National Lottery retail commissions (a proxy for retailer sales) increased by more than 8% from 2003-2011 while they launched iLottery products• Retail sales grew—instant games grew 20% in 2011 

• Serves as a complementary lottery sales and marketing channel – NOT a replacement channel

• Italian Lottery increased instant ticket sales from €408 million to over €10 billion over an 8 year period while expanding all their online products including Lottery games, Sports Betting, Poker, Casino games and rolled out 25,000 VLTs

• Provides a social experience• Facebook (of course), Checking In on Four Square is a good example for retailers

• Reward Retailers for driving sales on the Internet

INTERNET CAN INCREASE RETAIL REVENUES

Confidential Property 8

MULTIPLE OPPORTUNITIES TO ENSURE SUCCESS

Confidential Property 9

CRITICAL COMPONENTS

A HOLISTIC APPROACH

Serving all stakeholders and growing the Lottery holistically across internet and retail

USE OF ALL THE TOOLS

Differentiate with engaging content, more win opportunities, and embedded retail presence

SECURITY & INTEGRITY

Player trust is more important than ever

Confidential Property 10

THE RIGHT FOUNDATIONPlayer and retailer engagement ties everything together

OnlineConvenience Draws NewParticipation

Purchase atRetail UnlocksMore Online

Opportunities

Online Promotionand eCouponsDrive New Trips

to Retail

Confidential Property 11

PROVEN GLOBAL PARTNER

3500EMPLOYEES

40YEARS

EXPERIENCE

120GAMING

CUSTOMERSON SIX CONTINENTS

MORE THAN

100INTERNET GAMES

DEVELOPED

LAUNCHED

400+U.S LOTTERYMICROSITES

DISTRIBUTION THRU

280THOUSANDPOINTS-OF-SALES

WORLDWIDE

CAPACITY TO PRINT

45BILLION

INSTANT TICKETSANNUALLY

REVENUES OF

878MILLION

(2011)

35LOTTERY

CSP + SYSTEMOPERATIONS WORLDWIDE

A proven &responsiblesupplier tothe Global

Lottery Industry

Confidential Property 12

BEST PRACTICES

Instant Games• Simple scratch to start• Leverage paper/offline liquidity to maximize play•Migrate to instant win with higher payout %

Web Presence• Shopping cart model• Rewards Club as foundation for engagement

Marketing• Connect internet with bricks & mortar retail• Traditional web techniques (e.g. affiliate, etc.)

Funding Options• Credit, debit, prepaid, voucher, etc.•Winnings deposited in eWallet

Draw Games• Daily/weekly games are most common for launch• Higher frequency offer better sales growth (Keno, etc.)

Confidential Property 13

HOW WILL YOUR LOTTERY GET THERE?