from lottery games to slot machine games: the growing momentum of internet gaming july 31, 2013
TRANSCRIPT
From Lottery Games to Slot Machine Games: The Growing Momentum of Internet Gaming
July 31, 2013
Gaming Spectrum
Green Gaming Red Gaming
Rewards & Loyalty
Draw Games
Electronic Instant Tickets
Bingo
Poker Casino
LOTTERY CASINO
Sports
iLOTTERY iGAMING
Social Games & Virtual Goods
VS
Broader potential audience,chance-based experience
• 10-minute or less play dynamic• Lower payout %, low volume• Direct connection to retail product is
critical (e.g. hybrid game)• Points + rewards is engagement currency• Player development through up-sell &
cross-sell
Narrower potential audience,session-based experience
• 60-minute or more play dynamic• Higher payout %, high volume• Can be independent from in-venue
product• Cash + free play is engagement
currency• Player development through bonusing
“I LOST” “I DIDN’T WIN”
For Social: Implications are Different
SOCIAL GAMING
Global Gaming Industry
• Worldwide gaming sales of $350 billion*
• Casinos operate in over 100 countries; more than 3,500 casinos**
• More than 4,300,000 slot machines worldwide**
• Online gaming annually generates almost $30 billion in win*
- Sports = $14.8 billion
- Casino = $7.1 billion
- Poker = $4.0 billion
- Bingo = $2.1 billion
* H2 Gambling Capital** Bank of America Merrill Lynch Gaming Primer 2013
U.S. Gaming Industry
• US 2012 total gaming revenue $64 billion*
• Las Vegas Strip 10%
• US Regional 47%
• Native American 43%
• Over 800 casinos in the U.S. in 39 states*
• 16 states with commercial casinos (~ 450 Casinos)
• 24 states with tribal casinos (~ 425 Casinos)
• ~900,000 slot machines in North America
• US iGaming Sales • Currently estimated at $3.1 billion**
• Pre-UIEGA sales estimated at more than $6.0 billion**
* Bank of America Merrill Lynch Gaming Primer 2013** H2 Gambling Capital
Social Casino Gaming
Why It’s Important
Source: Casual Games Association (CGA), May 2013
Social game audience estimated to be 700-750m people Social casino audience currently at ~170m
Why It’s Important
Source: Casual Games Association (CGA), Macquarie Research, May 2013
UK Study: Majority Play For Fun Or Money
42% play for money only
56% play for fun only
2% play for money
and for fun
22% of respondents play poker online either for fun or for money Of those …
52% play for money only
46% play for fun only
3% play for money
and for fun
27% of respondents play casino games online either for fun or for money
Of those …
55% play for money only
42% play for fun only
3% play for money
and for fun
29% of respondents play bingo online either for fun or for money Of those …
Source: KantarSport Research Jan 2012
Social Considerations
• Session-based of casino games nature match well with social model
• Proven real-money casino themes translate best into engaging social games
• But, are social players a source of future real-money patrons?
SOCIAL LOTTERY
Global Lottery Industry
Global Lottery Snapshot
• ~180 global lottery jurisdictions*
• ~$275B of revenues generated in 2012*
Draw sales ~$200B Instant sales ~$75B
• Less than 15% of lotteries selling products online**
*Source: Lafleur’s Lottery Almanac.** Company estimates.
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$30 $35 $39 $41 $48 $58 $61 $63 $65 $71 $76.0
$110$125
$148 $141$154
$166 $165$177 $181
$191$199
$140$160
$187 $182$203
$224 $226$240 $246
$262$275
InstantTickets DrawGames
Global Lottery Retail Sales ($ in billions)*
U.S. Lottery Industry
• 44 lotteries, including the District of Columbia
• ~$70B in annual revenues*
– 54% instant tickets
– 46% draw games
• 147 million Americans play lottery games**
• Lottery websites are top visited in their geography
• Today, just three lotteries are active with internet sales: IL, GA & MN
* Source: Lafleur’s Lottery Almanac.**Source: SGI’s State of the Industry FY’12.
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$16.3 $18.4 $20.4 $22.9$26.0 $28.3 $29.7 $30.5 $30.3 $30.7 $32.1
$36.9$19.4
$20.4$20.8
$22.0$21.4
$23.3 $22.7$22.9 $22.7 $23.5
$23.4
$26.6
$35.7$38.8
$41.2$44.8
$47.4$51.6$52.3
$53.3$53.1$54.2$55.5
$63.6
InstantTickets DrawGames
U.S. Lottery Retail Sales ($ in billions)*
Social – The Basics
Today, virtually all lotteries are actively leveraging social mechanics:
• Interactive 2nd Chance promotional games
• Mobile 2nd Chance games
• Internet-based loyalty and rewards programs
Example: Monopoly Jackpot
• Multi-State Linked Game
• Every non-winning Monopoly ticket provides a second chance to instantly win
• Players scan 2D code on scratch ticket to access website on mobile
• Players collect properties to achieve a “monopoly” for a chance to win one of 10 rolling cash jackpots or qualify to win a progressive cash jackpot - up to $1 million!
Concept Art
16
iLottery – The Basics
Draw Games Instant Games
Instant Games – Stage 1
• Basic Play
– Plays like a printed game– Very simple play action– Game reveals an outcome– Shared prize pool
Instant Games – Stage 2
• Extended Play– Adds interactive mechanics
(e.g. player choice)– Provides bonus features– Ideal for licensed brands
Instant Games – Stage 3
Social Play– Player choice– Collections– Power Ups– Continuity– Multiplayer– Leaderboards– Points / Micro-Wins– Progressive Jackpot
Social – Next Steps
• Leverage social sharing
• Create lottery social games
• Play with friends Team-Play Draw Multi-Player Instants
• eInstants – “Stage 3”
Social Considerations
• Lottery player dynamics match well with social model
• Social mechanics important to next generation real-money lottery games
• eInstant “Stage 3” games will emerge as a major market opportunity
Sciplay.Studio
WorldleaderinsupplyingiLotteryinstantgamesto
lotteriesandtheknow
howtomakethemwork
Aninnovatorintouch-gamesfor
lotteriesthatbridgethe
gapbetweensocialandonline,mobilegaming
Createsgameplayproducts
thatrepresentemerginggenresandadvancedbusinessmodels
30yearsofgaming
experienceandadeepunderstandingofcasualandsocialgamingontheinternet
Leadingproviderofcasino,slotandsocialthemedgames
Themostexperiencedprovideroflottery-specific
interactivecontentintheindustry
Culminationofmorethan12yearsexperiencedeveloping,deployingandoperatinginternet-basedsolutionsforthereal-moneygamingindustry
Questions?