1. 1 SMART TECH 2010 CONTENT IS KING The First Wave – Pioneers Blaze The Trail Glendenning, General Technology, SGI, AWI/IGT, Totalizator Invented the Lottery systems we use today Used the state of the art technology at the time

2. 2 SMART TECH 2010 CONTENT IS KING The Second Wave – Vertically Integrated Single Source Solutions GTECH, SGI, Intralot Comprehensive mainframe solutions Original Equipment Manufacturers (OEM)

3. 3 SMART TECH 2010 CONTENT IS KING The Third Wave - Content is King Innovators, Entrepreneurs Responding to the challenges and opportunities of the new marketplace Platform independent content and solutions that leverage the Internet

4. 4 Content is King - The Third Wave of Innovation SMART TECH 2010 CONTENT IS KING iPhone iPad Games need to be localized and delivered on the devices players use. The Gen X,Y player grew up playing interactive HD quality video games. Lotteries should be testing 25-50 games in the market on an ongoing basis.

5. 5 SMART TECH 2010 CONTENT IS KING Content is King - The Third Wave of Innovation Gen X, Y players interests are under-served Social Space Internet is their world Our focus is on Lottery Content that Gen X and Y will pay to play.

6. 6 Content is King - The Third Wave of Innovation SMART TECH 2010 CONTENT IS KING Content drives: Broadcast and Cable TV, Radio, Internet and wireless Networks Original Content is offered 24/7 on thousands of channels 2 Million hours of content are needed annually to fill 200 Cable TV channels

7. 7 SMART TECH 2010 CONTENT IS KING Key elements of a successful game 1.Attract 2.Entertainment Value 3.The Math 4.Player Psychology 5.Celebration 6.Localization 7.Relevance “The art and science of game development.”

8. 8 DC Lottery - Localization SMART TECH 2010 CONTENT IS KING DC Lottery is considering a horse racing game. Through research, we found out that there was a race track in DC in the late 1800’s Our game is a re-creation of that track in DC, as if it existed today.

9. 9 Apache Legends - Relevance SMART TECH 2010 CONTENT IS KING Apache Tribe asked T1 to create sacred ground and tribal legends for a Mystery. We developed the detailed scene and the legendary characters, as they appeared in real life. After we converted the physical representations of the legends to spirits, the Tribe approved.

10. 10 Atronic – Cultural Relevance and Localization – SLOT GAME OF THE YEAR SMART TECH 2010 CONTENT IS KING Atronic asked T1 to develop a Mystery set in Asia We researched a range of themes and presented Dragon Boat Racing Our accurate representation and attention to detail won Atronic a top industry award.

11. 11 Using Gameology™ to create Gen X and Y games for GTECH SMART TECH 2010 CONTENT IS KING GTECH asked T1 to look into game play styles that are relevant to Gen X, Y players We are in the process of creating completely new game play and math. T1 is designing these games to play on GTECH systems.

12. 12 Massachusetts Lottery Daily Race Game SMART TECH 2010 CONTENT IS KING T1 won the RFP to replace the Daily Race Game at the Mass Lottery Our Play-By-Play™ engine generates over 4 Million variations of a horse race. The T1 game runs 300 times a day in over 1000 locations.

13. 13 SMART TECH 2010 CONTENT IS KING Cultural Relevance & Localization Ethnic Markets in large urban areas are an untapped opportunity for Lotteries In language instant and Monitor games expand the player audience and revenues. This monitor game uses two legendary icons of the Salsa Music Genre.

14. 14 Why testing is important SMART TECH 2010 CONTENT IS KING Testing must be done on a continuous basis with a variety of players and non-players. There is no substitute for “In Market’ Tests, with real money and real players. Test, Test, Test is to Lotteries, as Location, Location Location is to Real Estate.

15. 15 Testing, Testing, Testing SMART TECH 2010 CONTENT IS KING T1 has mastered In-Market Testing – real people, real environments, real games Lotteries should be testing 25-50 new games annually. All Lotteries have Web sites, bu the web site must be set up for testing.

16. 16 Testing, Testing, Testing SMART TECH 2010 CONTENT IS KING Multi-screen games – a T1 specialty T1 Multi-game set up Testing results drive content strategy and delivery. Testing helps identify the ‘next big’ game or play style… Before an investment is made in deployment.

17. 17 What’s next after Instant Games? SMART TECH 2010 CONTENT IS KING Cheers ® Instant Game Cheers ® Keno Monitor Game Add high frequency monitor games (every 3-4 minutes), with targeted content. Opens opportunities for cross channel branding and sales Deployment over multiple platforms reaches more players

18. 18 What’s next after Instant Games? SMART TECH 2010 CONTENT IS KING Games specific to the venue and the audience. Create games that are customized to cultural, and demographic preferences. Lotteries can leverage their extensive networks and neighborhood presence

19. 19 SMART TECH 2010 CONTENT IS KING The Lotteries’ Key Market Advantages Lotteries’ key advantage is local presence A Lottery typically has 1,500 agents, and often more than 5,000 in their state By comparison, Walmart has on average 150 stores and McDonalds has 500 per state.

20. 20 SMART TECH 2010 CONTENT IS KING The Lotteries’ Key Market Advantages Lotteries can’t grow without their agents. Agents require full time attention and support to be as successful as possible. T1 Sales & Service teams work with retail agents to maximize their sales potential.

21. 21 SMART TECH 2010 CONTENT IS KING The Third Wave Partnership for Success State Lottery Partner Lottery Retail Agent Partner Online Systems Partner Content Sales & Marketing Retail Recruitment Partner T1 offers online systems providers exciting new content and content delivery solutions. T1 offers Lotteries in market testing to drive content strategy and retailer recruitment. T1 Sales & Service teams offer retail agents sales and marketing assistance.

22. 22 SMART TECH 2010 CONTENT IS KING The Lotteries’ Key Market Advantages Upgrade agent displays to maximize sales, where it makes business sense. Cull the bottom 10% of agents and recruit new ones to replace them. Lotteries are businesses that support state and local governments.

23. 23 SMART TECH 2010 CONTENT IS KING The Lotteries Key Market Advantages Cable TV companies bring in a closing team to scour their markets periodically These are called sweeps and they coincide with TV ratings sweeps weeks Because growing the number of locations expands your footprint and your reach

24. 24 Content is King - The Third Wave of Innovation SMART TECH 2010 CONTENT IS KING In TV, experimentation and testing drive innovation at the speed of the customer You have to innovate to change the game Tournament One is a game changer Multi- screen games a T1 specialty. Multi-game screen in hotel lobby restaurant.

25. 25 BroadcastR™ - Innovation in action bringing Lottery Games to digitally savvy players everywhere. SMART TECH 2010 CONTENT IS KING Animated Draw displays can now be accessed on demand by any player on any device. Files are completed and published within 2 minutes of draw completion. Available as a turnkey or ASP solution.

26. 26 BroadcastR™ - Innovation in action bringing Lottery Games to digitally savvy players everywhere. SMART TECH 2010 CONTENT IS KING In Massachusetts, BroadcastR™ is delivering the Daily Race Game To Go Players can download their draw animation any time on any device Since installation in fall of 2009, we’ve delivered over 300,000 draw displays to players throughout Massachusetts.

27. 27 SMART TECH 2010 CONTENT IS KING

28. 28 Tournament One is Your Lottery Partner Growing Revenues Responsibly In the New Marketplace With a new Generation of Players SMART TECH 2010 CONTENT IS KING

29. 29 SMART TECH 2010 CONTENT IS KING