How do we tackle the shared issues facing the industry? July 2014 Matt Osgood September 2014

2 Falling net revenue returns Falling net revenue returns Declining participation Declining participation Industry wide problems

Digital features in all our lives The need for Access is approaching human right status 3

4 Smartphones are accelerating this need

iLottery is a core tool to address our issues 5 However with single digit % of total revenues, many lotteries in Europe and North America have not seen the Lottery revenues from iLottery that they envisaged So how can we leverage iLottery to help address these industry wide issues?

6 1.Change of lottery mind-set to that of being the retailer 2.Management of the Player lifecycle 3.Adoption of digital tech processes, tools & people Camelot’s 3 core guiding iLottery principles

7 1) Change of mind-set to that of a retailer Actively drive digital connections Flexible technology solutions Test & learn - improve One-to-One Player interaction Anytime, Anywhere access Optimize POE media Requires channel agnostic perspective, investing in accessibility and convenience

8 2) Management of the Player life-cycle Display ads SEO / PPC Affiliates Partnerships Social /Viral Response/ROI Analysis Display ads SEO / PPC Affiliates Partnerships Social /Viral Response/ROI Analysis ATTRACT Search Promotions Usability Merchandising Player Support Response/ROI Analysis Search Promotions Usability Merchandising Player Support Response/ROI Analysis CONVERT RETAIN GROW Targeted Communication Personalisation Community Loyalty Campaign Management Site Performance Trigger campaigns Segmentation Targeted Communication Personalisation Community Loyalty Campaign Management Site Performance Trigger campaigns Segmentation Data Analytics Web Analytics Predictive Modelling Campaign Management Response/ROI Analysis Usability Real Time Offers Data Analytics Web Analytics Predictive Modelling Campaign Management Response/ROI Analysis Usability Real Time Offers

9 3) Adoption of digital tech, processes, tools and people Key to achieving both the Mindset of a Retailer and the optimization of the Player Lifecycle is having the right enablers: Processes / Tools / People Analytics Campaign Management Personalisation/ Relevance Building a forensic understanding of the player Operational insight Digital channels should enable quicker reaction to player insights The Challenge lies in making these insights actionable Challenges of technical legacy Understanding play motivations and sustaining regular play Game awareness and perceptions Optimal win experiences Individual games evaluation and optimisation Identifying and assessing the real competitive set Multi-channel Media ROI

In summary

11 You have the toolkit

However to address falling penetration & net revenue returns it’s vital iLottery is executed effectively 12 1.Adjust to a retailer mind-set 2.Actively optimize the player lifecycle 3.Enable both through adopting digital tools and experts

13 Camelot can now offer our own iLottery platform to lotteries