APLA 2012, Sydney 1
Game Innovation
Presented by
Barry Lee
Senior Manager – Business Solutions Magnum Corporation Sdn Bhd
Malaysia
APLA 2012, Sydney 2
Game Innovation
Contents
1. Lottery Landscape in Malaysia
2. The most popular game - 4D
3. Why Innovate? Why New Games?
4. Game Innovation – Magnum’s Experience
5. Lessons Learnt
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Lottery Landscape in Malaysia
Highly Regulated
Environment
Regulatory & Religious Constraints
No Sales Promotions or Advertisements
Strictly Land-Based. Online Prohibited
Selling conducted in Dedicated Retailer Outlets Only Can’t operate in Shopping Malls, Transport Hubs, Newsstands etc
Outlets must not be within sight of Places of Worship, Schools etc
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Lottery Landscape in Malaysia
3 National Lotteries
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Lottery Landscape in Malaysia
33% are Non-Muslims
54% are of Legal Playing Age
Addressable Target: Approx. 5 million+ Players
Population of 29 million
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Lottery Landscape in Malaysia
Numbers games 3D, 4D, 5D and 6D
Lotto games 6/42, 6/49 and 6/52
Passive game Big Sweep (7D plus Powerball)
Types of Games
Available Before Sept 2009
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Lottery Landscape in Malaysia
Sports Toto had 4D, 5D, 6D, Lotto 6/42, 6/49 and 6/52
Damacai had 3D, 4D and Big Sweep
Magnum had only 4D
Games offered by
the 3 Lotteries Before Sept 2009
A game all 3 offer!
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Lottery Landscape in Malaysia
Total Revenues from all Games 9 Billion
Revenue from 4D alone 7 Billion
Total
Lottery Revenues from 3 Lotteries
4D
Others
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The Most Popular Game – 4D
Mystique surrounding Numbers
Meanings in 4D Numbers!
Customers have their own favourites
Why is 4D so popular?
As a result,
They fear missing out if they don’t buy!
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The Most Popular Game – 4D
Similar to Pick 4 game
1. Picks a 4-digit number from
0000 to 9999, e.g. 6652,
1234, 0070, 0120 etc.
2. Spend minimum $1 for one
game.
3. You win if the 4-digit number
picked matches one of the 23
4-digit numbers drawn.
How to Play?
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The Most Popular Game – 4D
Types of Plays and Prizes
Ways of Example 1st Prize 2nd Prize 3rd Prize Special Consolation
Plays Pays Pays Pays Prize Prize
Pays Pays
Straight 1234 $2,500 $1,000 $500 $180 $60
Match 4 numbers in exact order
4-Way Box 1112 $625 $250 $125 $45 $15
Match 4 numbers, of which 3 are the same, in any order
6-Way Box 1122 $417 $167 $84 $30 $10Match 4 numbers that consist of two pairs of identical numbers in any order
12-Way Box 1123 $209 $84 $42 $15 $5
Match 4 numbers, of which 2 are the same, in any order
24-Way Box 1234 $105 $42 $21 $8 $3
Match 4 numbers in any order
Straight
Boxed
Pick 4
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Why Innovate? Why New Games?
Increased Competition
Changing Demographics
Changing Player Preferences
Why Innovate? Why New
Games?
Lotteries worldwide are facing the following challenges:
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Why Innovate? Why New Games?
Why new games?
We had only one game while competitor had six!
Why innovate?
To regain market leadership, principally from the illegal operators!
Why Innovate?
Why New Games?
In Magnum’s case, apart from challenges just mentioned,
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Game Innovation - Magnum’s Experience
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Game Innovation - Magnum’s Experience
Appeal to Existing Players
Appeal to New Players and
Broader Demographics
Has Life-Changing Appeal
Illegal Operators cannot Imitate
What Game to Launch?
A game that:
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Game Innovation - Magnum’s Experience
Our New Copyrighted Product,
first of its kind in the world,
was launched on
23 September 2009
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Game Innovation - Magnum’s Experience
Important Features of the Game
Taking inflation into consideration, priced boldly at $2 instead $1!
So that jackpots can grow quickly!
More prizes and easier to win! So more players can experience winning!
Exciting Cascading feature! Making winning millions very easy indeed!
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Game Innovation – Magnum’s Experience
1. Pick two instead of one 4-digit
numbers from 0000 to 9999,
e.g. 1019 0120 or 6652 4509.
2. Spend min $2 for one game.
3. You win Jackpot 1 if the two 4-
digit numbers picked are drawn
as the winning numbers of any
two of the three top prizes.
How To Play?
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Game Innovation – Magnum’s Experience
1. Share the Same Draw Results
used for 4D game
2. Capitalizing on Popularity of 4D
game
3. Positioned as Turbo-Charged
Version of 4D game
Draw Results of 4D Jackpot
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Game Innovation – Magnum’s Experience
Standard Bet
Pick two 4D Numbers
2 Ways of Plays
System Bet
Pick three or more 4D Numbers
For example:
System 7 has
21 pairs of 4D Numbers
System 10 has
45 pairs of 4D Numbers
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Game Innovation – Magnum’s Experience
Prizes for 4D Jackpot
5 Divisions of Prizes to be Won
Min $10 million
when there is a
Cascade!
Division Prize Odds
1 Jackpot 1, Min $2 million 16.67mil
2 Jackpot 2, Min $100,000 1.67mil
3 $168 1,667
4 $68 500
5 $28 500
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Game Innovation – Magnum’s Experience
Effects of Cascade
Cap Jackpot 1 at $30mil
Responsible Gaming!
Jackpot 2 > $10 mil!
Easy to win $millions!
Buying Frenzy!!!
What is Cascade?
In a Responsible Way!
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Game Innovation – Magnum’s Experience
Magnum's 4D Jackpot vs Competitor's 3 Lotto Games
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
23-S
ep-0
9
28-N
ov-09
31-J
an-1
0
31-M
ar-1
0
1-Ju
n-10
1-Aug-1
0
5-Oct
-10
5-Dec
-10
6-Feb
-11
6-Apr-
11
8-Ju
n-11
13-A
ug-11
15-O
ct-1
1
14-D
ec-1
1
12-F
eb-1
2
14-A
pr-12
16-J
un-12
18-A
ug-12
Draw Date
Dra
w S
ale
s (
RM
Mil
)
Lotto 6/58
Lotto 6/55
Lotto 6/52
Lotto 6/49
Lotto 6/42
Magnum's 4D Jackpot
4D Jackpot outperforms competitor’s
3 Lotto games combined!
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Game Innovation – Magnum’s Experience
Performance of 4D Jackpot
Immediate Market Acceptance
Well Received by Existing Customers
500mil Sales in 1st Full Year of Operation
Appeal to Broader Demographic
Attracted New Customers
Attracted Ladies, Gen-X and Gen-Y
Increased Revenue
Increased No. of Customers
Increased Overall Sales
Sports Toto Launched The Same Game on 11 Jun 2011
Enjoyed the same level of success
Damacai also launched The Same Game on 23 Nov 2012
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Game Innovation – Lessons Learnt
Analyze Your Strengths & Weaknesses Leader in 4D but lack Jackpot Game
Know Your Customers Customers prefer 4D but also attracted to Jackpot
Satisfy Customer Need Give them 4D with Jackpot
What Did We Learn?
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Game Innovation
Thank You
Terima Kasih
谢谢 Nandri
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Game Innovation – Magnum’s Experience
Examples:
9409 7041
9409 2935
7041 2935
Win Jackpot 1
Odds: 1 in 16.67mil
How to Win Division 1 or Jackpot 1?
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Game Innovation – Magnum’s Experience
Examples:
9409 2128
9409 5657
9540 7041
Win Jackpot 2
Odds: 1 in 1.67mil
How to Win Division 2 or Jackpot 2?
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Game Innovation – Magnum’s Experience
Examples:
9409 0000
1111 9409
7041 9999
Win $168
Odds: 1 in 1,667
How to Win Division 3?
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Game Innovation – Magnum’s Experience
Examples:
2128 0000
1111 9540
5657 9876
Win $68
Odds: 1 in 500
How to Win Division 4?
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Game Innovation – Magnum’s Experience
Examples:
6038 0000
1111 1931
2257 9999
Win $28
Odds: 1 in 500
How to Win Division 5?
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The Most Popular Game – 4D
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The Most Popular Game – 4D
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The Most Popular Game – 4D