SPORTS BETTING INDUSTRY INNOVATION TRENDS

Wednesday, 26 June, 16h15-16h30 , Montreal, Canada

Ludovico Calvi, GLMS President

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Sport Betting and the Lotteries

Major Sport Betting Industry Trends

Successful Gaming Companies distinctive capabilities

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CONTENTS

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01

Sport Betting and theLotteries

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Possible Challenges for Sport Lotteries

Difficult balance between commercial effectiveness and social responsibility,

especially for a Lottery organization in a potentially competitive market environment

Market Needs Social Responsibility

• Players demand

• Market competition

• Time to market

• Business profitability

• Return on Investment

• State Revenues

• Regulatory requirements

• Responsible gaming

• Compliance and reputation

• Anti-money laundering

• Match Fixing

• Good causes

• WLA, ISO, …

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Lotteries and Sports Betting: The Opportunities

Leveraging on Sports to evolve and grow the business profitably, if not acting,

possible substitution from lottery to sports purchases across all channels

Sports Betting

Engage

millennials

effectively

Increase same

store sales

Enhance cross

selling

opportunities

Protect

traditional

business lines

Leverage

existing retail

network

Generating

more traffic on

all channels

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Lotteries & Sports Betting: evolution of competitive markets

Markets naturally tend to mature and increase competition

CO

MP

ET

ITIV

EN

ESS

Early stage

Mature market

SOPHISTICATION

Italy

Lottomatica• Very competitive

• Pools and Fixed Odds

• Retail, Interactive and

Mobile

• Live betting

• Extensive offer

• Payout up to 90%

Chile

Polla Chilena• Monopolistic

• Weekly Pools only

• Retail and Online

• Pre-match only

• 53% payout

Mexico

Pronosticos• Monopoly

• Fixed Odds from 2012

• Retail only

• Pre-match only

• 67% payout

Holland

Delotto, • Competitive

• Pools and Fixed Odds

• Retail, Interactive and

Mobile

• Pre-match only

• Limited offer

• 70% payout

OPAP, Greece• Monopoly in retail

and SSBTs

• Sport Betting since

2000

• Competition on

Interactive

• Pre-Match and Live

Betting

Danske Spil

Denmark• Competitive

• Fixed odds

• Retail, Interactive

• Live betting

• E-Sports

• Monopolistic

• Capped payout

• Pools only

• Retail only

• Pre-match only

Delaware (US)

Sports Lottery• Monopoly up to today

• Fixed Odds from 2009

• Retail and Parlay only

• Pre-match only

• 64% payout

Singapore Pools• Competitive

• Fixed odds

• Retail, Interactive

• Live betting

• Payout up to 85%

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Major Sport BettingIndustry Trends

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Major Industry trends

� Increase in Newly Regulated Markets

� Effective Processes are becoming more strategic to succeed

� The Customer Digitalization

� Technology Platform Modularisation

� The Digitalisation of the Retail Store

� The Rotation to the digital world driven by Mobile

� More & More Data-Driven Betting Operations

� New Technology transforming the Gaming experience (AR, VR, AI)

� Strategic Influence by Adjacent Markets

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Industry Trends: Changing demographics

� Increase in “impulse player” segment, decline in traditional player

� Streaming of sports & TV coverage rapidly increasing

� Technology improvements� Mobile betting

� Technology to support many more betting markets on each game

� Need to engage new generation (“Millennials”) more familiar with quick mobile interactions and gaming consumption

Industry offer needs to change to reflect this

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Innovation Synergies

There is an high convergence of customer innovation needs which lead to the identification of 2 main key area

self service devices

Loyalty

Cross-channel Marketing/CRM

Booking Devices

Entertainment

anywhere

and anytime

Digital winnings cashed in retail

video streaming

mobile evolution

multichannel

Digital

Virtual Betting

Retail

Retail Digitalization

One CustomerApproach

cashout

In-Play

mobile

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Customer Centric Approach

Betting Booking

Mobile

Online Registration

Online Winnings on

Retail

Self

Light Retail Registration

Betting Booking

Device PoS

Payment

CRM

On field

Development

New Services

RETAILRETAIL

DIGITALDIGITAL

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Focusing on Player demand Evolution

from

PHYSICAL

to

DIGITAL

from

ONE-CHANNEL

to

OMNI-CHANNEL

from

BOOKMAKER

to

PLAYMAKER

from

ONE TO ALL

to

ONE TO ONE

- Info-entertainment

- Added value

services provided

- Offer & promotion

strong customization

level

- 2015 wagers online

> retail

- Self service

technology

- Unique user

experience

retail & online

Promo cross

channels

2017 - 2022

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Successful GamingCompanies distinctivecapabilities

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Successful Gaming Companies will share 6 common capabilities :

Living Services -Evolve

Rapid Delivery Capability - Engineer

Customer experience - Engage

• Create highly segmented and rapidly evolving products & services that continually engage with the customers (chooser/user/end-user)

• Digital Platforms, modern delivery methods and tools enabled the scaled delivery of customer services and experiences using IT and networks

• Customer knows when and how to engage with the business to enable an ever growing array of channels. Meanwhile they now have liquid expectations (vis a vis Consumer)

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2

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Applied Intelligence - Learn

Innovation Culture -Growth

Digital Process -Automate

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5

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• A central brain for the business, providing connecting intelligence, powered by data and analytics, and guiding customer experience and business performance

• A company personality that rewards risk taking, encourages cross functional cooperation, and data driven culture

• Processes that are automated and highly efficient, providing accuracy, cycle time speed, and significant data for use by the business

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THANK YOU!

Ludovico Calvi

President GLMS

Ludovico.calvi@glms-sport.org

Mob. + 39 334 67 65 831

info@glms-sport.org