supervivo lottery system - invest tech

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SUPERVIVO

Lottery System

Patents and Trademarks Pending

“World’s Best Odds”

Information Memorandum by Finvest Limited (NZ Company number 548615)

20 October 2012

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Index

Paragraph Subject

1 Introduction

5 History

13 Types of Lotteries

30 Lottery Odds

37 Lotteries around the World

42 The SUPERVIVO Lottery System - “World’s best odds”

45 Background – Prior Patented Invention

50 New Lottery System - SUPERVIVO

51 To play is easy

61 The Odds of Winning in a Weekly Draw

63 Incorporation of a Super Draw

67 Lottery Integrity – Random allocation of Super Draw Numbers

69 Super Draw Prizes

70 The Odds of Winning Super Draw

76 Explanation CHARTS

78 Patent Applications

79 The International Market and its size

79 Lotto Sellers

82 Gaming Organisations

92 Ticket Resellers

96 Getting the SUPERVIVO Lottery System to market

Appendix 1 Lottery Mathematics from Wikipedia

Appendix 2 The Lotter’s ‘best picks’ - The Smart.

Appendix 3 The Lotter’s biggest declared jackpots – The Big.

Appendix 4 Explanation of SUPERVIVO System – one phase straight to a winner.

Appendix 5 Assessment of International lottery Market

CHARTS No.1 One Phase Game – Straight to a Winner

CHARTS No.2 Two Phase Game – Selected number to Game/TV Show

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Introduction

1. The SUPERVIVO lottery system is a new type of ‘lotto’ game.

2. SUPERVIVO has significant flexibility. It can be played in either one or two phases, the second

being a phase where an element of excitement and suspense can be introduced – possibly in a

short TV game show.

3. This information memorandum: provides background material on existing ‘lotto’ games; details

the SUPERVIVO lottery system; considers (from a players perspective) the odds of winning, and

considers the international ‘lotto’ market.

4. In considering the odds, it is believed that the SUPERVIVO system has the “World’s Best Odds”.

History

5. A short history of lotteries and their emergence and uses around the World is set out below.

6. The first recorded signs of a lottery are keno slips which date from the Chinese Han Dynasty

between 205 and 187 B.C. These lotteries are believed to have helped fund major government

projects such as the Great Wall of China. The first known European lotteries were held during

the Roman Empire.

7. The first known lottery to offer tickets for sale with prizes was in the 15th century. In 1449 in

Milan, Italy, a lottery was held to finance the war against the Republic of Venice.

8. By the beginning of the 20th century, most forms of gambling, including lotteries and

sweepstakes, were illegal in many countries, including the USA and most of Europe. However, in

the 1960’s, casinos and lotteries began to appear throughout the world as a means to raise

revenue - in addition to taxes.

9. Modern lotteries began in Australia. The state of Queensland introduced the Queensland State

Lottery of Australia in 1917 and was the first lottery to start operations in the 20th century. In

1931 the United States legalized lotteries by passing the Lotteries Act.

10. Lotteries were also used to fund causes. For example, in the United States the legalization in

1931 of lotteries was for the initial purpose of funding hospitals during the Great Depression. In

1957, Australia commenced selling tickets in the Opera House Lottery, which was to fund the

Sydney Opera House. But it wasn’t until the 1990’s that national lottery games were introduced

throughout Australia.

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11. The New Zealand Lotteries Commission was founded in 1987. It operates as a Crown Entity

under the Gambling Act 2003.

12. The United Kingdom National Lottery was established after New Zealand had established its

own. It was established in 1994 by the then Prime Minister, John Major. It is regulated in the UK

by the National Lottery Commission, and is currently operated by the Camelot Group.

Types of Lotteries

13. Lotteries come in many formats. For example, prizes can be a fixed amount of cash of goods, or

a fixed percentage of the receipts. A popular form of a percentage draw is the “50-50” draw

where lottery organizers promise that the prizes will be 50% of the revenue.

14. Lotteries based on paying out a fixed percentage of receipts are often referred as being based

on the pari-mutuel system, a French word meaning that the jackpot is based on the amount of

tickets sold and not a fixed amount.

15. Lottery games are generally classified into 4 categories as set out below:

a. One-Number Games

b. Multi-Number Games

c. Multi-Number Games with two sets of numbers, and

d. Keno type games

One-Number Games

16. These are games where a player selects just one number with either 3 digits or 4 digits. A few

territories, including some US states, have introduced a 5 digit lottery game.

17. A 3 digit game involves selecting a number from 000 to 999 and is often referred to as Cash 3; or

Pick 3; or Play 3; or Daily 3. An example number is 549.

18. A 4 digit game involves selecting a number from 0000 to 9999 and is often referred to as Cash 4;

or Pick 4; or Play 4; or Daily 4. An example number is 1038.

19. In both a 3 and 4 digit game, a player can choose to play the selected number as a Straight

(exact) match or as a Box (any). When a Straight match is selected, the player bets on the

numbers coming in the exact order. If a Box play is elected, the player bets on the numbers

arriving in any order.

20. Besides Straight and Box, there are also other play types such as combo, front pair, back pair,

and split pair.

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Muti-Number Games

21. In a multi-number game, a player selects 4, 5, or 6 numbers from 1 to a certain maximum

specified by the game.

22. Multi-number games are usually denoted by the abbreviation n/N, which means that a player

has to select n numbers from 1 to N. A common multi-number game is the classic or commonly

played lotto, a 6-number game denoted by 6/49, where a player selects 6 numbers from 1 to 49.

23. Usually it does not matter what order a player selects the numbers.

24. Usually prizes commence being awarded to those players who get 2 or 3 numbers correct. For a

player that gets all the numbers correct, that player wins the jackpot.

25. Often, in addition to the n numbers, another number is drawn from the same set of numbers as

a bonus ball. Its only effect usually is to increase the amount of lower prizes to be distributed to

the players and bonus balls have no effect on the outcome of winning the jackpot.

Multi-Number Games with two sets of numbers

26. Multi-Number Games with two sets of numbers are games where players make selections from

two sets of numbers.

27. They are denoted by the abbreviation n/N + m/M, which means that a player has to select n

numbers from 1 to N (in any order) from the first set, and m more numbers from 1 to M from

the second set. Most multi-number games with two sets of numbers that are played in the

world, are played by selecting only one number from the second set (i.e., m = 1). The number

selected from the second set is usually called the Mega Ball, or the Extra Ball, or the Power Ball.

28. An example of the multi-number game with two sets of numbers is the New Zealand Power Ball

(6/40 + PB 1/10). Another example is the United States Power Ball (5/59 + PB 1/35).

Keno type games

29. Keno type games are basically multi-number games, where the player selects 10 numbers from

1-80 or 82. The difference from multi-number games is that the game draws double the

numbers that a player selects i.e. if a player selects 10 numbers, then 20 are drawn.

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Lottery Odds

30. The probability of winning a lottery jackpot can vary widely depending on the lottery design, and

are determined by several factors, including the count of possible numbers, the count of

winning numbers drawn, whether or not order is significant, and whether drawn numbers are

returned for the possibility of further drawing.

31. In a simple 6 from 49 lotto (6/49), a player chooses six numbers from 1 to 49 (no duplicates are

allowed). If all six numbers on the player’s ticket match those produced in the official drawing

(regardless of the order in which the numbers are drawn), then the player is a jackpot winner.

For such a lottery, the chance of being a jackpot winner is 1 in 13,983,816.

32. However, in a 6/49 lottery, it was a requirement that the six numbers be chosen in the order in

which the numbers are drawn, then the odds of being a jackpot winner deteriorates

significantly, to 1 in 10,068,347,520.

33. The United States “Mega Millions” lottery is a compulsory extra ball lottery. 5 numbers are

drawn from a group of 56 and 1 extra number is drawn from a group of 46 (5/56 + 1/46). A

player must match all 6 balls to win the jackpot prize. The chance of winning is 1 in 175,711,536.

34. Italy’s “SuperEnalotto” requires players to match 6 numbers out of 90 (6/90). The chance of

winning the jackpot is 1 in 622,614,630.

35. And Italy’s “Super Star” lottery requires players to match 6 numbers out of 90 and 1 extra

number from a group of 90 (6/90 + 1/90). The chance of winning the “Super Star” lottery is 1 in

56,035,316,700 (i.e. 1 in 56 billion).

36. Appendix 1 contains a copy of Lottery Mathematics from Wikipedia, which details the

calculations required to determine the odds.

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Lotteries around the World

37. Examples of lotteries from around the world are set out in the table below. The information has

primarily been sourced from the web site of the Lotter. Tax on winnings is approximate.

Country/Name

Type Odds of Winning lowest prize

Odds of winning 1st Prize

Tax on winnings

Australia Saturday Lotto

6/45 plus 2 bonus balls

1 in 35 1:8,145,000 0%

Australia Wednesday Lotto


Match 3 + 1 1 in 211

1:8,145,000 0%

Australia Power Ball Lotto

5/45 + PB 1/45

Match 2 + PB 1 in 556

1:54,979,156 0%

Australia Oz Lotto


Match 3 + 1 1 in 87

1:45,379,620 0%

Austria Lotto

6/45 plus 1 bonus ball

Match 0 + 1 1 in 16

1:8,145,060 0%

Belgium Lotto


Match 2 + 1 1 in 64

1:8,145,060 -

Brazil Mega-Sena

6/60 Match 4 1 in 2,332

I:50,063,856 0%

Brazil Mega da Virada

6/60 Match 4 1 in 2,332

I:50,063,856 0%

Brazil Dupla Sena

6/50 Match 4 1 in 1,120

I:15,890,700 0%

Brazil Quina

5/80 Match 3 1 in 866

I:24,040,016 0%

Canada BC 49


Match 2 + 1 1 in 81

1:13,983,816

Canada Ontario - Lottario


Match 3 1 in 23

1:4,072,530

Canada Ontario – Ontario 49 Jackpot is set at $1m per draw


Match 3 1 in 57

1:13,983,816 0%

Canada Lotto 649 (created and operated by the ILC in 1982)


Match 2 + 1 1 in 81

1:13,983,816 0%

Canada Lotto Max


Match 3 1 in 8

1:28,663,528 0%

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Country/Name



Tax on winnings

Europe EuroJackpot (commenced 2012 – over 9 Countries) Jackpot starts at €10m and max of €90m

5/50 + 2PB 2/8 Match 1 + 2 PB 1 in 80

Match 5 + 2PB 1:59,325,280

0%

Europe EuroMillions (commenced 2004 – over 9 Countries) Jackpot max of €190m

5/50 + 2PB 2/11 Match 1 + 2 PB 1 in 157

Match 5 + 2PB 1:116,531,800

0%

Finland Lotto (Minimum Jackpot €700,000)


Match 3 + 1 1 in 54

1:15,380,937 -

Finland Viking Lotto (Played in 8 countries)

6/48 -

France Lotto

7/49 + 1/10

Match 2 1 in 16

1:19,068,840 0%

Germany Lotto

6/49 + 1/10 plus 2 bonus balls

Match 3 1 in 61

1:139,838,160 0%

Greece Lotto


Match 3 1 in 57

1:13,983,816 10%

Hong Kong Mark Six (founded by HK Jockey Club in 1975)


Match 3 1 in 57

1:13,983,816 -

Ireland Lotto


Match 3 1 in 45

1:8,145,000 0%

Israel New Lotto

6/37 + 1/7 Match 3 1 in 30

1:18,598,272 25% on amts above NIS5000

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Country/Name



Tax on winnings

Italy SiVince Tutto Drawn monthly, if no winner, then prizes paid out to secondary division

6/90 Match 2 1 in 22

1:622,614,630 6% on amts above €500

Italy SuperEnalotto If no winner, then runs a Jackpot


Match 3 1 in 327

1:622,614,630 6% on amts above €500

Italy SuperStar (commenced 1997)

6/90 + 1/90 Match 0 + PB 1 in 138

Match 6 + PB 1: 56,035,316,700

-

Japan Lotto 6

6/43 Plus 1 bonus ball

Match 3 1 in 39

1:6,096,454 -

New Zealand – Power Ball

6/40 + PB 1/10 Match 3 + 1 1 in 363

1:38,383,800 0%

Poland Lotto

6/49

Match 3 1 in 57

1:13,983,816 10%

Romania Lotto

6/49

Match 3 1 in 57

1:13,983,816 25%

Russia Gosloto 6/45 (founded 2003 and privately run by Orglot Limited, supported by Russian Govt. Partner is Intralot. Minimum Jackpot is RR10m, or US$311,000)

6/45 Match 2 1 in 7

1:8,145,060 13%

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Country/Name



Tax on winnings

Russia Gosloto 7/49 (founded 2003 and privately run by Orglot Limited, supported by Russian Govt. Partner is Intralot.

7/49 Match 3 1 in 22

1:85,900,584 13%

South Africa Lotto (played by 82% of population)


Match 3 1 in 57

1:13,983,816 0%

South Africa Powerball

5/45 + 1/20


1:24,435,180 0%

Spain BonoLotto


Match 3 1 in 57

1:13,983,816 0%

Spain El Gordo Minimum Jackpot €5 million

5/54 + 1/0-9


1:31,625,100 0%

Spain La Primitiva (began in 1763 as a match 5/90, running for 100 years, and then returned in 1985)


Match 3 1 in 57

1:13,983,816 0%

Sweden Lotto


Match 4 1 in 59

1:6,724,520 0%

Sweden Viking Lotto


Match 3 1 in 53

1:12,271,512 -

Switzerland Lotto


Match 3 1 in 45

1:8,145,060 35%

Turkey Lotto 6/49

6/49

Match 3 1 in 57

1:13,983,816 0%

Turkey Super Lotto 6/54

6/54

Match 3 1 in 75

1:25,827,165 0%

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Country/Name



Tax on winnings

United Kingdom National Lottery


Match 3 1 in 57

1:13,983,816

0%

United Kingdom EuroMillions UK

5/50 + 2/11 Match 2 1 in 23

Match 5 + 2 PB 1:116,531,800

0%

United Kingdom Thunderball

5/39 + 1/14 Match 0 + PB 1 in 29

1:8,060,598 0%

United States Hot Lotto

5/39 + 1/19 Match 0 + PB 1 in 39

1:10,939,383 31.5%

United States Mega Millions

5/56 + 1/46 Match 0 + PB 1 in 75

1:175,711,536 34%, but 30% -for non resident

United States Power Ball

5/59 + 1/35 Match 0 + PB 1 in 56

1:175,223,510 36%

Arizona The Pick

6/44 1 in 42 1:7,059,052 36%

California Super Lotto

5/47 + 1/27 Match 0 + PB 1 in 49

1:41,416,353 30%

Colorado Lotto (described by the Lotter as having “exceptional winning odds”

6/42 Match 3 1 in 37

1:5,245,786 34%

Connecticut Classic Lotto

6/44 Match 3 1 in 42

1:7,059,052 31.5%

Florida Lotto

6/53 Match 3 1 in 71

1:22,957,480 30%

Illinois Lotto

6/52 Match 3 1 in 67

1:20,358,520 30%

Indiana Hoosier Lotto

6/48 Match 2 1 in 7

1:12,271,512 30%

Kansas Super Kansas Cash

5/32 + 1/25 Match 1 + PB 1 in 58

1:5,034,400 30%

Louisiana Lotto

6/40 Match 3 1 in 32

1:3,838,380 -

Massachusetts Megabucks

6/49

Match 3 1 in 57

1:13,983,816 30%

Michigan Classic Lotto

6/47 Match 3 1 in 50

1:10,737,573 34.35%

Missouri Lotto

6/44 Match 3 1 in 42

1:7,059,052 29%

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Country/Name



Tax on winnings

New Jersey Pick Six

6/49

Match 3 1 in 57

1:13,983,816 30%

New York Sweet Million Lotto

6/40 Match 3 1 in 32

1:3,838,380 37.85%

Ohio Classic Lotto

6/49

Match 3 1 in 57

1:13,983,816 31%

Oregon Megabucks

6/48

Match 3 1 in 53

1:12,271,512 30%

Vermont Megabucks Plus

5/41 + 1/6 Match 2 1 in 13

1:4,496,388 31%

Washington Lotto

6/49

Match 3 1 in 57

1:13,983,816 30%

Wisconsin Megabucks

6/39 [?] Match 3 1 in 29

1:6,991,908 32.75%

38. The Lotter’s web site also sets out for its lotto players its analysis of the best cost/benefit ratio

of lotteries in the world. When making these rankings, the Lotter states that it takes into

account the size of the jackpot in relation to the taxes a winner would have to pay, the odds of

winning and the price of a ticket. Appendix 2 contains a copy of the Lotter’s picks as on 14

October 2012.

39. Of note in the rankings, showing that the biggest jackpot does not means the best overall play,

is:

[1] - Australia – Saturday Lotto - Jackpot of A$4,000,000 – odds 1:8,145,000

[10] - Australia – Wednesday lotto - Jackpot of A$1,000,000 – odds 1:8,145,000 (but worse

odds of winning a minor prize)

[11] - New Zealand’s Powerball - Jackpot of NZ$11,000,000 – odds 1:38,383,800

[19] - United States Mega Millions - Jackpot of US$61,000,000 – odds 1:175,711,536

[20] was the Europe Euro Millions - Jackpot of €54,000,000 – odds 1:116,531,800

[29] was UK Thunderball - Jackpot of £500,000 – odds 1:8,060,598

40. When commenting on the Australian Saturday Lotto, the Lotter states “… on the Smart, top spot

is usually held by the Australian Saturday Lotto thanks to the combination of the tax-free

jackpot, the entering fee is reasonable, there are favourable odds of winning and the guess

range is only 1-45”

41. The Lotter’s web site also sets out its rankings in respect of the biggest declared Jackpots.

Appendix 3 contains a copy of the Lotter’s rankings as at 14 October 2012.

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The “SUPERVIVO” Lottery System

“World’s Best Odds”

42. Like lotto, the SUPERVIVO lottery System is a game of chance. But it operates differently to

other lottery systems. It operates by using the outcomes of the players’ choices in the game

itself, to determine the outcome of the lottery. Because it utilizes players’ choices, the

SUPERVIVO lottery system can always get to a winning result i.e. it can guarantee a winner.

43. Because it can always get to a first division winner, the SUPERVIVO lottery system has the

“World’s best odds”.

44. The SUPERVIVO lottery system has flexibility and can be tailored to reflect the size and nature

of the market in which it is offered for play. Broadly, it can be played in either one or two

phases.

One Phase: it is played as a one phase game, with a winner guaranteed and determined on

closure of the game.

or

Two Phases: it can be played in two phases, with the first phase determining a select

number of final players (say 9), and the second phase involving those final 9 players

competing to be the winner - possibility in a short TV game show with elements of

excitement and suspense.

Background – Prior Patented Invention

45. Jim Piper, a New Zealand patent attorney, owns a patented invention involving a lottery game –

referred to as “Sole Survivor” or “Last Man Standing”. The USA Patent relating to that invention

was granted in 2006 (US7,100,822).

46. This prior lottery system is a computer based lottery in which participants choose at least one

unique number from a defined range of numbers - e.g. 1 to 1,000,000. The aim being that no

one else selects the number. The participant who has the last number not selected by anyone

else becomes the winner.

47. A distinguishing feature of the prior system is it can guarantee a single winner, or a guaranteed

division one/jackpot winner. It can also guarantee a 2nd and 3rd place, and so forth.

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48. On average (through computer simulations), it takes about 10x the number range to get to a

sole winner i.e. it will take about 10 million numbers on a number range of 1 to 1,000,000. The

odds of winning could be akin to the odds of winning a standard lotto game. The odds of

winning the first division/jackpot in a 6/49 lottery is 1 in 13,983,816.

49. However, while the prior lottery system (represented in US7,100,822) has its advantages and

unique features, a problem with it is that without some form of intervention to accelerate the

process to achieve a winner, it cannot be run to any set time frame.

New Lottery System – “SUPERVIVO”

50. The new improved system is called the “SUPERVIVO” Lottery System. It achieves the following:

It utilises most of the prior invention;

It can be run to a set time and date e.g. weekly;

It can guarantee a winner, or a set number of winners;

It can have a concurrent running “Super Draw” that is drawn once every set period e.g. 6

monthly or yearly;

SUPERVIVO has the “World’s Best Odds” in lotteries;

It can be run in two phases, with the incorporation of a TV show with suspense and

excitement.

To play is easy

51. To play SUPERVIVO is easy. The following sets out the SUPERVIVO system played in one phase to

come straight to a guaranteed winner, with draws run weekly. This is more fully set out in

Appendix 4.

52. A player picks 6 different numbers from the number range of [1 – 30]:

One PRIMARY number: The player picks one number from the number range of [1 – 30], as

his/her “PRIMARY” number choice.

Five SECONDARY numbers: The player also picks 5 other different numbers from the number

range of [1 – 30] – which may be used in later elimination stages.

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53. A player’s aim is to choose the PRIMARY number and each SECONDARY number on the basis

that each pick will be a number that is least picked by all the participants in the lottery.

54. A player can choose his/her own numbers, or the numbers can be allocated randomly. To

ensure the integrity of the weekly lottery result, the weekly numbers from each week’s lottery

cannot be merged at any time into any combined set of numbers until after that weekly draw

has been closed. Once a weekly draw has been closed it cannot be reopened. This ensures that

no party can identify what numbers, when combined, are less nominated than other numbers.

In the alternative, so as to further ensure the integrity of the lottery result, all numbers could be

by way of random allocation.

55. For example, if number 13 is the PRIMARY number that is least picked by all the participants in

the lottery, then all participants that picked 13 as their PRIMARY number are winners and each

will:

receive a minor prize; and

receive a free entry into Super Draw; and

proceed further – into further elimination stages using their SECONDARY numbers, with the

opportunity to earn further prizes, including the first prize.

56. When proceeding further, all those participants that picked the number 13 will be subject to a

computer analysis of their other 5 SECONDARY numbers.

57. The remaining 5 SECONDARY numbers are then used, in their chosen order, to determine which

of the initial winning participants who had all picked the number 13 as their PRIMARY number,

are to be eliminated. Ultimately one participant avoids elimination and becomes the ‘last man

standing’, winning the first prize.

58. This elimination process is achieved by looking at each of the participants 5 SECONDARY

numbers, in their chosen order, and calculating how many times each of those 5 SECONDARY

numbers were picked by all the participants in the lottery/game.

59. Those participants that have the 1st SECONDARY number that is the least picked are not

eliminated and proceed to the next phase of eliminations. If the eliminations and winner/s can’t

all be effected by using the same process in respect of the 2nd SECONDARY number, then the 3rd

SECONDARY number is used, and so on, until the required eliminations are achieved and the

winner is determined. Further prizes are paid out during the elimination processes.

60. The major or first prize is awarded to the winner/s.

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The Odds of Winning in a Weekly Draw

61. The odds of winning a prize in the weekly draw – in the first instance correctly choosing the

weeks winning PRIMARY number – is 1 in 30.

62. The odds of winning first prize in a weekly draw, is equal to the number of participants in that

week’s lottery. If there are 500,000 tickets/players in the week’s lottery, the odds of winning

first prize is 1 in 500,000.

Incorporation of a “Super Draw”

63. The SUPERVIVO lottery is proposed to include a concurrent running “Super Draw”, that is to be

drawn once every set period e.g. 6 monthly or yearly – at no cost to eligible participants.

64. The Super Draw involves the same processes of elimination as applicable to the weekly draws.

65. A player’s participation in the Super Draw is only achieved by:

Purchasing a ticket in a weekly draw; and

Correctly picking a winning PRIMARY number in a weekly draw.

66. Limiting the participation in Super Draw to only those players that correctly pick a winning

number in a weekly draw greatly enhances for those players their chances of winning SUPER

Draw. And the odds of becoming a Super Draw player are not onerous as the odds are 1 in 30

every time a weekly draw is played with one entry ticket. The number of tickets/entries a

participant can have in Super Draw is based on how many times a participant correctly chooses

the winning PRIMARY number in one or more of the weekly draws.

Lottery Integrity - Random Allocation of Super Draw Numbers

67. The Super Draw numbers are randomly allocated. They are allocated only to those players who

correctly chose a winning PRIMARY number in a weekly draw. Those random numbers comprise,

as they do for the weekly draws, 1 PRIMARY number and 5 SECONDARY numbers. This random

allocation is to ensure that no participant can stipulate what Super Draw numbers he or she

wants and to protect the integrity of the later Super Draw result.

68. In addition, to further ensure the integrity of the later Super Draw lottery result, the Super Draw

numbers allocated from each week’s lottery cannot be merged at any time into any combined

set of numbers until after the last weekly draw (prior to the Super Draw) has been closed and

concluded. This is to further ensure that no party can identify what numbers, when combined,

are less nominated than other numbers.

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Super Draw Prizes

69. The first prize available for the winner of the Super Draw will be significantly higher than the

weekly draw. An example of the Prizes for both a weekly draw and a yearly Super Draw is set

out in Appendix 4 (at pages 8 and 11). Using this example, this shows a weekly first prize of

$1.25 million and a Super Draw prize of $23.5 million.

The Odds of Winning Super Draw

70. The odds of winning a prize in Super Draw is dependent on the number of entries a participant

has in Super Draw – i.e. the number of times a participant enters weekly draws and correctly

chooses the winning PRIMARY number in those weekly draws.

71. Odds of winning a minor prize in Super Draw: For a participant that has only one entry into

Super Draw, the odds of winning the minor prize in Super Draw is 1 in 30.

72. The odds of winning a minor prize get shorter for each additional entry into Super Draw that a

participant has. A participant with 10 entries into Super Draw comprising 10 different PRIMARY

numbers has odds of at least 1 in 3 of winning a prize.

73. Odds of winning first prize in Super Draw: The odds of winning the first prize in Super Draw - for

the participant with only one entry in Super Draw - must be no more than the sum total of the

number of tickets/players in each week’s lottery, divided by 30.

74. For example, if there are on average 500,000 tickets/players in each week’s lottery, and the

weekly lotteries are run for 50 weeks prior to Super Draw, then the odds of winning first prize in

Super Draw is no more than 1 in 833,333.

75. If a participant has 10 entries into Super Draw, the odds of winning first prize must be no more

than 1 in 83,335.

Explanation CHARTS

76. CHARTS 1 – one phase play: sets out an overview of how the SUPERVIVO System works in a one

phase situation – straight to a winner, using a number range of 1-30.

77. CHARTS 2 – two phase play: sets out an overview of how the SUPERVIVO System works in a two

phase situation – with the first phase determining a select number of final players (say 9), and

the second phase involving those final 9 players competing to be the winner - in a short TV game

show with elements of excitement and suspense.

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Patent Applications

78. New Zealand Patent Applications have been filed on 15 August, 20 September and 17 October

2012 in relation to the SUPERVIVO System. These patent applications (NZ601824; NZ602537;

and NZ603063) provide a worldwide option to apply for patents within 12 months of the filing

dates of the applications, claiming priority from the original filing dates of these NZ applications.

During the course of next year, that will occur in the relevant jurisdictions.

The International Market and its size

Lottery Organizations - Lotto Sellers

79. The size of the international lottery industry has been put at US$260 billion. However, this

includes all lottery games, including instant games, pulltabs, 3, 4, or 5 digit games, Keno and

lotto games. Accordingly, the ‘lotto’ industry is only a sub-part of the overall lottery industry.

80. The North American Association of State and Provincial Lotteries (NASPL), in addition to the

lottery organizations in North America, state that: “Elsewhere in the world publicly-operated

lotteries exist in at least 100 countries on every inhabited continent”.

81. Appendix 5 contains an assessment on the International Lottery Market. This assessment is a

limited one that focuses on selected countries and determines their ‘lotto’ sales. An estimation

for the rest of the market for ‘lotto’ sales is then made. On any view, the ‘lotto’ market is large.

The results are summarized in the table below.

Country Comments Annual ‘lotto’ Sales US$ billions

Australia 4.8

Canada 5 lottery corporations 3.9

France 5.0

Germany 5.1

Italy 6.9

New Zealand 0.6

United Kingdom 6.5

USA Sales by 43 US States 9.5

Total for 8 Countries US$37.4 billion

Estimation for rest of World 12.6 plus

Total for World ‘Lotto’ US$50 billion plus

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Gaming Organizations

82. In addition to the lottery organizations that sell the tickets, there are large gaming organizations

that sell technology, systems, and games to those lottery organizations. Two of the most

prominent are GTECH and Intralot.

GTECH Corporation

83. GTECH is headquartered in Providence, Rhode Island, USA. It maintains operations centers in

Australia, Belgium, Ireland, Poland and Brazil.1

84. It is owned by the Italian company, Lottomatica Group S.p.A, which itself is one of the world’s

largest commercial lottery operators and a market leader in the Italian gaming industry with a

market capitalization of €2.9 billion (as at 15 Oct 2012). In August 2006, Lottomatica acquired

GTECH in a cash transaction at a value of US$4.7 billion, including the assumption of debt.2

According to a GTECH news release, Lottomatica, along with GTECH, now control 63% of the

worldwide online lottery business.

85. GTECH is the market leader in providing technology, content, operations, and marketing

solutions to government authorized gaming operators around the world. GTECH operates in 27

US jurisdictions and 55 countries around the world, and has 5,000 employees. Its operations

include software and systems design, game development, and marketing services; point of sale

ticket vending machines, and video lottery terminal manufacturing; ticket printing and design

services; and local area network/wide area network communications. The company also

provides network solutions, which include bill and tax payments, prepaid cellular applications

and payments, and credit card transactions.

86. GTECH’s business development initiatives have included focusing on the emerging economies in

Eastern Europe, Latin America and Asia Pacific.

87. Over the last several years, GTECH has made efforts to expand its business to become a gaming

operator as well as a solutions provider. Northstar Lottery Group, which is 80% owned by

GTECH, was awarded the first-ever private manager contract in the United States to operate the

Illinois Lottery. GTECH’s CEO, Jaymin Patel, led the business development team that pursued the

opportunity and currently serves as Chairman of Northstar Lottery Group.

88. GTECH’s full year revenues for 2011 were €857.4 million, or about US$1.14 billion.3

1 Wikipedia

2 Wikipedia

3 Wikipedia

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Intralot S.A

89. Intralot originated as a spin-off from the Intracom group, owned by the Greek billionaire

Socrates Kokkalis. It originally provided infrastructure for the Greek National Lottery, under a

1999 contract, but has since expanded its operations into a worldwide market. Intralot’s games

library includes a variety of games such as numerical games, TV lottery games, sports lotteries,

fixed odds betting, instant lotteries, pari-mutuel, video lottery, and monitor games.4

90. Intralot is described as the World’s #2 lottery company, second only to Italy’s Lottomatica. It

designs and develops hardware and software for lottery gaming systems around the world. It

also operates the lotteries, including managing the games, printing the tickets, handling

advertising and marketing, and controlling payments and payouts.The company has operations

in more than 50 countries and in the US it manages the lotteries for 11 states.5

91. Intralot’s revenues for 2010 were €1.115 billion, or about US$1.5 billion.

Ticket Resellers

92. Generally, lottery tickets are sold by conventional retail outlets such as convenience stores, gas

stations, and super markets. These retailers are paid a commission, typically in the range from 5

to 8%, depending on the lottery product being sold.6

93. Over the last decade or so, various internet sites have established themselves as a gateway to

the world’s major or often played lotteries. It is believed that those internet sites, while

essentially performing the role as a ‘retailer’, are not paid commissions by the lottery

organizations. Rather, they can command a margin from their customers for the service and

convenience they provide, including for example, providing research material in respect of

what’s on offer, the best bets and odds, and the highest Jackpots.

94. Some of these internet sites offer the opportunity for lotto players to form a syndicate, in order

to increase the chances or a win.

95. Internet resellers include:

theLotter.com

PlayHugeLottos.com

Wintrillions.com

LoveMyLotto.com/ The Jackpot Store Limited (UK)

4 Wikipedia

5 Hoovers.com - Company Profile of Intralot S.A.

6 NSAPL – Lottery Sales

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Getting the SUPERVIVO Lottery System to market

96. Getting SUPERVIVO to market is occurring by presenting the SUPERVIVO system in the following

ways to:

selected lottery organizations - as an opportunity to become licensed to operate the

SUPERVIVO system in their territory;

selected gaming or lottery organizations - as an opportunity to become licensed to

commercialize (or potentially acquire for relevant territories) the SUPERVIVO system;

a selected Government operator for the purpose of being granted a license to operate the

SUPERVIVO system in that country. This later case will include arrangements with a gaming

organization (e.g. such as GTECH or Intralot), for systems and management of the lottery.

97. For commercial reasons, matters relating to this will not be disclosed any further in this

information memorandum.

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