SmartTech 2012

Mike VeverkaCEO and Founder

Introduction to Jumbo Interactive

A lottery retailer that adopted the Internet.. and took off.

..and sales took off!

USA is very similar to Australia

State-based Government LotteriesNational Games – Powerball

Except:

Australia legislated Internet Lotteries in 2000

Adopted e-Retailer Model

Language very similarCulture very similar

Politically very similarRetailer model very similar

Evolution of the Internet e-Retailer Model

SOLUTION:

Retailers, like Jumbo, given equal rights to sell lotteries

Retailers permitted to keep the customer relationship

Must comply with ALL rules

Over 100 Motivated e-Retailers = Record Results

Retailers Predict

Job Losses

Lawmakers StruggleWith New Internet Laws

Case Study 1 – Typical Small Retailer

Financials:Revenue Sharefor a limited time

Jumbo provides all lottery graphicsas well as a dynamic upcoming games tablefor inclusion on the e-Retailer’s own website

Jumbo tracks customers and manages the sale to ensure all rules are followed

Retailer builds own website and refers customers to there

Working very wellfor 12 years

MICROSOFT NETWORK

Very Large Portal / General Retailer

Very Heavy Traffic

Jumbo tracks each click…

Case Study 2 – Typical Large Retailer

Lottery results and Banner ads displayed around the website

Case Study 2 – Microsoft Network

..to a special Microsoft branded website that is managed by Jumbo to ensure all rules are followed

Financials:Revenue share +Pay per new customer

Sells all Draw Games- Powerball- OzLotto- etc

Working very well for years

Case Study 3 - NSW Lotteries Official Website

Largest state lottery appoints Jumbo to manage all e-Retailers and website functions

State lottery provides branding and marketing

State lottery manages customers

Case Study 3 - NSW Lotteries Official Website

Jumbo is tasked with operating the website

Working very well for years

Financials:Revenue Share.No initial cost to the lottery

Case Study 4 – Ebay

Jumbo supplies Ebay with official lottery ads

More of an Advertiser than an e-Retailer

No custom website

Financials:Pay per viewPay per clickJumbo takes the Risk

Sales are fully managed by Jumbo

Working very well for years

Case Study 5 – Google and Facebook

More of an advertiserthan an e-Retailer – Risky

Jumbo manages campaigns andtakes the marketing risk

COST PER CLICK

Will a click become a sale?

COST PER CLICK

Will a click become a sale?

Comprehensive Retailer Reporting

E-Retailer Management

Jumbo reports all- Clicks- New Signups- Sales

Most important of all..- Commissions

E- Retailer CommissionsE-Retailer Management

Detailed drill-downon all commission payments..

..keeping e-Retailers motived!

Arming e-Retailers with the right tools

Jumbo manages a powerful Loyalty Program for all e-Retailers

Customer spend = Points = Loyalty promotions = More sales

Average spend is double traditional ticket spend

Jumbo provides web and mobile

COMPLIMENTS existing lottery gaming systems

Works WITH existing sales channels

12 years successful operation and maturity

Summary

• Adopt an e-Retailer model = Motivated army of marketers

• Maintain tight control

• Plugs into existing systems = Easy path to market

• Jumbo wants to sell $100 million pa of your lotteries!