20 minute read
Lottery
by SBC Global
FOLLOWING HIS RE-ELECTION AS GLMS
PRESIDENT, SBC Leaders spoke with Ludovico Calvi about his plans for the organisation, challenges to overcome as well as what is being done to ensure that sporting competitions remain free of crime
BY CONOR PORTER
The Global Lottery Monitoring System (GLMS) re-elected Lottomatica’s Ludovico Calvi as its President during its online General Assembly in June, marking his third term in the job. It has been a transformative time for lotteries during his tenure, especially over the past year with lotteries learning to survive and prosper in a COVID world while also helping good causes.
SBC: Congratulations on being reelected for a third term as GLMS’ President. What has been a key highlight during your tenure so far?
LC: Thank you very much. I am delighted and privileged to have been appointed President of GLMS for a third consecutive term after two very exciting mandates during which we have been able to review the GLMS organisation effectively, invest in human and technical resources, draw new, transparent and more effective processes and governance, and implement new and more efficient statutes which will allow GLMS to grow a diversified membership base involving new strategic sport integrity stakeholders.
We have also been able to strengthen relations with key public and private stakeholders worldwide, define and implement a new communication strategy, and engage and increase our membership base effectively.
SBC: What are your plans for GLMS between now and 2023?
LC: We have set very solid foundations to drive the success of our association in the titanic fight against match fixing and to protect sports integrity worldwide. Our strategic drivers are fully focusing on safeguarding GLMS growth while aiming at accomplishing our vision and mission of investing resources in communication, education and operations; market learning and adjusting to new challenges improving GLMS' perception among existing members, and strengthening key stakeholder relations.
SBC: What challenges are you expecting to face during your third term?
LC: The phenomenon of matchfixing is one of the main problems facing the world of global sport and legalised betting. Some believe that the manipulation of sports competition results is the natural negative evolution of sport since the economic implications linked to the development of legalised sports betting became part of the ecosystem and it is a price to pay. I do not agree and there’s evidence to confirm my opinion on the subject.
We have concrete and solid indications that the legalisation of sports betting in many countries has averted the proliferation of black markets, criminal organisations and therefore match-fixing. GLMS LC: As President of GLMS, I have observed an extremely busy period during the last 18 months with the detection and analyses of several irregular and suspicious betting activities.
GLMS Integrity Hubs in Copenhagen, Hong Kong and Montreal together with members and partners have never been so busy in fighting the phenomena of ghost matches and match-fixing. During the last 18 months, there have been cases of matches that never took place, but they were promoted on the web with the only objective to generate frauds against the public and betting operators.
Criminal organisations have been very active since the outbreak of Covid-19 seizing any opportunity - even a health crisis - to further their illicit activities and therefore GLMS has
increased the level of vigilance and intelligence monitoring and will do more so in the future.
Further threats will come from a weaker sport ecosystem, given that the financial crisis has hit several sport organisations globally at all levels, and this, in turn, could potentially increase the level of vulnerability of several sport stakeholders and athletes.
The world of sport after Covid-19 will be certainly with more unknowns and fewer certainties vs the past, in particular with regards to the level of revenues generated by sports clubs and the need to offset the losses with drastic cost-cutting measures.
This scenario will inevitably create conditions for fraudsters to exploit weaknesses and take advantage of this moment of vulnerability of the system in the “new normal”.
We must work together as a Global Sport Integrity Community actively involving key public and private stakeholders while continuing to be vigilant and protect the safeguarding measures put in place to guarantee the legality and shield athletes and consumers across the globe.
SBC: Have there been any particular jurisdictions which the industry should focus its attention on? Brazil or the US for example?
LC: The Brazilian Ministry of the Economy has been very active in the last few years on the regulatory front and the market, despite the outbreak of the pandemic, is eager to see through the legalisation process of several gaming verticals.
At federal and state levels, Brazilian public authorities are evaluating different gaming bills, including a proposal to exclusively regulate casino resorts in tourist destinations, instant lottery products, in addition to sports betting, bingo games and video slots.
The introduction of a sustainable gaming regulatory framework would bring in precious investments to the Brazilian market due to its enormous potential and, above all, legalise all gaming activities, which currently operate outside of the scope of the law and could generate valuable revenues for the federal and local state governments.
Another important market, in my opinion, is Canada, where singleevent sports wagering, after almost 10 years and two attempts by political parties, is about to be legal. This is a major opportunity for several B2b and B2C gaming operators. The market is significant especially in provinces such as Ontario and British Columbia.
In Canada, black-market bookmakers and offshore websites have had a monopoly on single-event sports betting and igaming for a long time and this is a great opportunity for public authorities, licensed gaming
has always supported regulated, responsible and sustainable betting market environments since bans have often favoured sport corruption.
Unfortunately, the evidence of relatively young aged athletes being corrupted is consistent. This negative phenomenon originates from a lack of awareness and the absence of a culture of sport integrity among young athletes. On top of that, the temptation of making easy money without getting caught, given the limited visibility of some low-profile sports events, have been encouraging factors and is at the base of the proliferation of cases among young professional athletes.
SBC: What would you say is the most important lesson learnt by lotteries during the COVID-19 pandemic?
organisations to regulate the sport betting market effectively while safeguarding consumer protection and generating valuable revenues for provincial and federal governments.
A legal and sustainable Canadian sports wagering market environment will also provide a much-anticipated financial boost to professional leagues through partnerships with gaming operators while selling precious sports data gathered through their matches.
As for the US, more than half of the states have now legalised sports betting, the majority of which offer mobile and online sports betting alternatives. Internet casino gaming is legal and available in five states. Even if the market is fragmented due to the different state regulatory frameworks, there are jurisdictions where the regulatory provisions have created sustainable market environments and despite the pandemic, the figures are very encouraging.
Unfortunately, there are also US states where policymakers and regulators have been unable to create sustainable regulatory and fiscal conditions, and the sport betting market has turned out to be not attractive for both consumers and gaming operators, who will no doubt choose to turn away from an opportunity deemed economically non-viable. In these cases, the black market and offshore operators are likely to continue to expand their businesses outside unfettered by integrity measures and standards of consumer protection. allow robots to analyse real-time price volatility and detect suspicious line/ price movements. GLMS predictive models analyse more than one million prices every five seconds.
More importantly, GLMS Operational team can leverage our members' active trading floors in 31 countries, which contribute effectively to the detection of suspicious betting patterns in retail
and digital environments.
The “glocal” dimension of GLMS operational arm is the real differentiator from other sports integrity entities since we have an actual local presence and intelligence on the territory and a very active global network.
On top of the operational engagement, GLMS constantly invests quality time and key resources in education and prevention, which we consider strategic to create awareness, develop a culture of Integrity and Social Responsibility across the globe. •
SBC: Can you tell us more about GLMS’ efforts to ensure that sporting competitions remain free of crime? What are the challenges involved in staying one step ahead of those that threaten the integrity of sport?
LC: GLMS’ strategic approach against sports corruption through a multistakeholder, multi-jurisdiction policy with integrity monitoring hubs and active sports lotteries trading floors across the globe is paying off. To manage real-time data flows effectively, GLMS Integrity analysts use a peerless monitoring system to
A BRIGHT FUTURE FOR LOTTERIES: SAZKA ON BECOMING A PAN-EUROPEAN OPERATOR
ROBERT CHVÁTAL, CEO OF SAZKA GROUP,
discusses the company’s transformation into a pan-European lottery operator and the bid for the UK National Lottery contract
BY TED MENMUIR
SBC: Thanks for speaking with us. 2020 marked your eighth year of leading the SAZKA Group. How has this Czech business transformed itself into a panEuropean lottery operator?
RC: Thank you for speaking with me. When we took control of the Czech Republic’s National Lottery in 2012, SAZKA Group’s strategy centered around making lotteries entertaining while focusing on what makes customers play more regularly and safely.
Another great example is OPAP in Greece; at a time when investors and businesses were leaving Greece in droves due to the global recession and subsequent Euro crisis, we took the
decision to show confidence in the Greek market, purchase OPAP via the government’s regulated process, and ultimately revitalise a lottery that had been underperforming for years.
It’s now one of the best performing lotteries in the world based on sales per capita.
From a technical perspective, if you look at how we have improved each of our lotteries, whether that be in Greece, Czech Republic, Austria or Italy, our customer centric approach has been fundamental to our growth. We listen to our audiences, understand the peculiarities of customer behavior in each market, and plan accordingly.
Starting in the Czech Republic, we recognised how lotteries across the continent had become increasingly irrelevant in the modern gaming landscape. Instead of taking the easy route of leveraging a shrinking pool of old but loyal players, we’ve reversed this trend by reinvigorating lotteries using digital innovation to attract new players – both in retail and online – which is why we’ve achieved one of the highest global lottery growth rates
We’re obviously delighted that retail has bounced back so strongly in most of our markets during Q1, but it’s clear that the pandemic has rapidly accelerated the shift to digital. World leading lotteries of the future need to be digital first, which also means deploying more technology in-store to ensure that retail remains relevant and exciting.
In Greece, we’re even helping retailers benefit from the transition to digital by creating a rewards scheme that gives shopkeepers a proportion of digital sales for players they help get online. Additionally, we track in-store traffic through beacons installed in our stores that notify us each time an in-store customer is playing online. I believe there is a bright future for any lottery if it can develop a strong mix of unique experiences for both the retail and digital segments. But to achieve this, big investments in technology must be made while partnerships with leaders in digital innovation are also crucial. This is what SAZKA Group is currently focused on.
of any lottery operator over the past nine years.
SBC: 2020 was a tough year for all lottery operators; how do you see the sector rebounding from the pandemic?
RC: SAZKA Group’s recent Q1 results is a clear indicator of how lotteries can thrive as we emerge from the pandemic. In the Czech Republic, Austria, and Italy we’ve even enjoyed our best-ever quarters, and we expect to see similar results in Greece now that retail is reopening.
SBC: Has 2020 fundamentally changed how national lottery firms should be operated, in terms of benefiting society and good causes?
RC: Naturally, public spending will be a
major issue due to the actions taken to support businesses and jobs during the past 18 months, which is why lotteries and the contributions they make to society are more important than ever.
We’ve always ensured that our lotteries maximise returns to society and good causes, both through taxation, and our own initiatives such as OPAP’s redevelopment of the two largest children’s hospitals in Greece, or SAZKA’s support of the Czech Olympic Committee.
In the post-pandemic world, increasing returns to society and good causes will only grow in importance. This is why it’s more essential than ever to grow your customer base while ensuring responsible play, as this is the surest way to guarantee more sales and even larger returns for good causes.
SBC: SAZKA Group has made no secret of its intent to operate the UK market. Can you shed light on SAZKA Group subsidiary Allwyn’s bid for the National Lottery?
RC: In my eyes, The National Lottery is one of the most prestigious lottery institutions in the world. Allwyn’s team, spearheaded by Sir Keith Mills
IN THE POST-PANDEMIC WORLD, INCREASING RETURNS TO SOCIETY AND GOOD CAUSES WILL ONLY GROW IN IMPORTANCE KNOWING YOUR CUSTOMER AND BEING ABLE TO PREDICT THEIR FUTURE DEMANDS IS KEY
and David Craven (Allwyn’s CEO) and supported by the likes of Vodafone, Justin King, Brent Hoberman and Dr. Mark Griffiths, is building an exciting and credible proposition for The National Lottery.
If you look at our track record in Europe, we have consistently improved lotteries, refreshing them with our brand portfolio and by adapting to the unique characteristics of each market by implementing a mix of products and approaches that are tailored for those consumers. So, rest assured – our talented team has exciting plans for The National Lottery!
While I would love to talk more about our plans for the UK, under the Gambling Commission’s communications protocol I’m unable to do so.
SBC: As lottery and wider gambling businesses re-emerge from lockdown, what advice would you provide to business leaders confronting future unknowns?
RC: As I’ve said, lotteries are more important to society than ever, so any operator should be prepared to shoulder bigger demands from regulators and governments.
To deliver for the needs of both customers and wider civil society, lottery operators must speed up the digital transformation of their business by offering customers an omnichannel presence. This is about making sure that players and potential players feel connected to your brand no matter what restrictions we could face in the future.
Knowing your customer and being able to predict their future demands is key – omnichannel presence provides more customer touchpoints which are key for gaining this insight.
Of course, the technology that makes this omnichannel presence possible will also be crucial as we emerge from the pandemic into an increasingly digital world where the need to improve how lotteries protect their players is vital.
It’s all about speed of intervention and prevention – in Greece, our team developed an algorithm that trained on real time data to better predict and manage problematic behavior among players. It has proven to be 30 times more effective than the self-exclusion schemes that have been prevalent in the industry, and it’s clearly something I believe more operators should be developing. •
TOKYO 2020: THE NATIONAL LOTTERY SHOWS ITS SUPPORT FOR OLYMPIC ATHLETES
WITH THE LARGEST TEAM GB delegation for an Olympics on foreign soil, the National Lottery has continued to show its support for athletes competing in the Tokyo 2020 Games
BY HOLLY HUNT
Last year, for the first time ever, the Olympic Games - like many other sporting spectacles - was postponed, having only been cancelled a total of five times as a result of World War I and II since 1896.
The events has been shrouded by controversy due to the looming global-scale health crisis and the declaration of a state of emergency in Japan; mass public opposition also cast a shadow over the sporting showcase prior to its opening.
Although the country took a gamble on proceeding with the event, the Olympic Games remains to be one of the most exciting events in the sporting calendar, with the event filling a void for operators when leagues and competitions are ordinarily put on pause during the off-season.
Despite the lack of spectators in attendance to watch athletes across the globe make history in a summer of sport, 339 events across 33 sports - from table tennis to taekwondo and golf to gymnastics - were hosted across 41 different venues.
This year’s edition of the Summer Games, which will go down as the most expensive Olympic Games of alltime, saw the inclusion of a handful of new sports including karate, surfing,
sport climbing and skateboarding - all of which unlock new opportunities for bookmakers. Meanwhile baseball and softball made a return to the Games.
Athletes from Great Britain were backed by The National Lottery, which continued its unwavering support by launching its ‘largest-ever’ branding campaign, voicing its support for Team GB Olympic and Paralympic athletes.
The Team GB investment was used to cover a range of Covid mitigation measures, from cutting-edge hygiene technology to a comprehensive testing programme, which was set up to protect the team delegation before and during the Games.
For ParalympicsGB, the investment has delivered safeguards including lateral flow testing across all prep camps, the Athlete Village and out-of-village locations, as well as Covid-secure transport and dining at athletes’ pre-Games camps in Tokyo.
British Paralympic Association CEO,
Mike Sharrock, said: “Like so many organisations the Covid-19 pandemic has had a major impact on the British Paralympic Association and this partnership with Camelot will help ensure we can deliver worldclass preparation and Games time environments to empower our athletes to achieve their goals this summer.
“Tokyo 2020 is a wonderful opportunity to celebrate the resilience of the human spirit and we are confident ParalympicsGB can help unite and inspire the nation once again.”
Sophie Morgan, Marketing Manager
at Camelot Group, commented: “National Lottery players have funded over 1,000 elite athletes across the UK as they’ve prepared for Tokyo and beyond, and The National Lottery has a long history of playing a role in the success of Team GB and ParalympicsGB.
“Following the introduction of National Lottery funding in 1997, Team GB has moved from 36th in the Olympic medal table in 1996 to second at the Rio 2016 Games. In total, 864 Olympic and Paralympic medals have now been won by British athletes since National Lottery funding began.
“So, the idea of this summer-long, unmissable campaign – which is The National Lottery’s largest ever brand campaign – is to remind players that, every time they play a National Lottery game, they’re helping our Team GB and ParalympicsGB athletes in Tokyo.”
Alongside the core campaign,
advertising for the individual National Lottery games was badged with the Team GB and Paralympics GB logos, and the Lotto ‘It Could Be You’ TV ads given a fresh update with a Tokyo twist – meaning that players will be reminded of the part they play in funding athletes at every National Lottery touch-point.
“Taking inspiration from the original National Lottery campaign of the same name, we launched a new series of Lotto ads under the ‘It Could Be You’ banner last summer,” Morgan added.
“With the help of oversized lottery balls, the ads aim to tell the nation that their numbers are coming for them. This summer, the ads will be updated with a Tokyo twist and will feature a famous ParalympicsGB face alongside those mega Lotto balls.”
The core aim of this campaign, the Camelot Marketing Manager told SBC Leaders, is to remind National Lottery players of the differences they make in supporting Good Causes.
British Olympic Association CEO, Andy Anson, added: “The nation has been heavily impacted during the last 12 months and the Tokyo Games provide an amazing opportunity to generate a positive message.
“The support of Camelot is timely in ensuring that we’re able to maintain
the world-class environment for our athletes in Tokyo whilst incorporating the vital additional infrastructure to make sure our facilities are Covidsecure for our athletes and to allow them to reach the ‘start line’ in the best possible condition.
“We’re also excited to work with Camelot and their staff on our innovative wellness programme and share the lessons learned from the success of Team GB.”
With Team GB having sent its largest contingent of athletes to the Games, national pride also played a role in boosting the money raised for the National Lottery’s Good Causes as British audiences watched a host of gold medal winning performances from their Olympic heroes such as Tom Daley and Matty Lee in the synchronised 10m diving and Adam Peaty in the 100m breaststroke, keeping the country firmly in the top 10 leaderboard.
Morgan continued: “National Lottery players raise an incredible £36 million a week for Good Causes. So, even though they primarily play for the big jackpots on offer, it’s really important that we regularly remind them of the difference that they make. That way, even when they don’t win a prize, they realise that Good Causes have benefited.
“The Olympics and Paralympics also always provide a fantastic moment of national pride and, given the
difficult circumstances we’ve all been living through, we hope that National Lottery players get a real boost from knowing that they’ve played a part in this amazing summer of sport.”
Throughout the Summer Games,
the National Lottery used both its digital and retail presence to deliver Olympic-themed point of sale items - thereby driving new levels of engagement with lottery players across the UK.
The items included Tokyo merchandise and a range of specialised games - including a limited edition Win Gold £1 Scratchcard and three special event Lotto and EuroMillions draws
The UK’s National Lottery wasn’t the only lottery organisation showing its support for this year’s Olympics, with Tokyo 2020 presenting a host of new opportunities for US lotteries.
Across the pond, lotteries were able to offer Team USA-themed content on instant scratch tickets, ilottery games, social setting games, and terminalbased instant games. Meanwhile France’s National Lottery operator, La Française des Jeux (FDJ) launched a new scratchcard game themed around the French Olympic and Paralympic teams in Tokyo.
WE HOPE THAT NATIONAL LOTTERY PLAYERS GET A REAL BOOST FROM KNOWING THEY’VE PLAYED A PART IN THIS AMAZING SUMMER OF SPORT IT’S REALLY IMPORTANT THAT WE REGULARLY REMIND PLAYERS OF THE DIFFERENCE THAT THEY MAKE
“Now is the time for lotteries
to plan programs that will bring the excitement of Team USA’s participation in the Winter Olympic and Paralympic Games to their players,” explained Peter Zeytoonjian, Senior Vice President of Consumer Products, US Olympic and Paralympic Properties.
“We’re creating amazing opportunities for US fans and we’re excited lotteries can now extend experiences through the games they offer to players.” •
