LOTTERY




FIVE-MINUTE LOTTO




       WWW.INFINIA-IT.COM
CONTENT                                           GOALS OF THE PRESENTATION



3    GOALS OF PRESENTATION                 ...
WHAT IS ROTO LOTTO?                                                                                    GAME CONCEPT

     ...
HOW TO PLAY?                                                              GAME MODALITIES

                   TICKET      ...
DRAWING                                                                   WINNING




    Roto Lotto number drawings are p...
NuMBER OF COMBINATIONS IN ROTO LOTTO                         INFINIA IT SOLuTIONS



                                     ...
ROLE OF PARTICIPANTS IN ROTO LOTTO PROCESS                                                                        SALES PL...
DISTRIBuTION                                                                                                       RISK AS...
SWOT ANALYSIS                                                                                             ExPERIENCES

   ...
BENEFITS                                                                                                       KEY ELEMENT...
Infinia IT is a mobile solutions company, an acknowledged leader and innovator in the use of technology
to deliver mobile ...
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Rotoloto English

  1. 1. LOTTERY FIVE-MINUTE LOTTO WWW.INFINIA-IT.COM
  2. 2. CONTENT GOALS OF THE PRESENTATION 3 GOALS OF PRESENTATION GOALS OF THIS PRESENTATION ARE: 4 WHAT IS ROTO LOTTO • Presenting the new winning game and its market potential 5 GAME CONCEPT • Defining the basic game parameters 6 HOW TO PLAY • Estimation of number of payments and amounts of cash flow 7 MODALITIES OF THE GAME • Statistical risk overview 8 DRAWING • Clear overview of benefits for all participants • Accomplishing the strategic partnership between Infinia IT and Lottery with goal of 9 WINNING development of new games of chance 10 NUMBER OF COMBINATIONS IN ROTO LOTTO 10 INFINIA IT SOLUTIONS 11 TECHNOLOGY 12 ROLE OF PARTICIPANTS IN ROTO LOTTO PROCESS 13 SALES PLAN 14 DISTRIBUTION 15 RISK ASSESSMENT 16 SWOT ANALYSIS 16 DEVELOPMENT – PHASE 2 17 EXPERIENCES 18 WHAT DOES ROTO LOTTO BRING 18 BENEFITS FOR PLAYERS 18 BENEFITS FOR LOTTERY 18 BENEFITS FOR STATE 18 BENEFITS FOR INFINIA IT AND SELLING POINTS 19 KEY ELEMENTS NECESSARY FOR PROJECT SUCCESS 3
  3. 3. WHAT IS ROTO LOTTO? GAME CONCEPT 1 2 3 4 5 6 1 Player fills in the ticket and pays desired amount (EUR 1-10). 2 Seller or terminal user executes the payment and registers the ticket through the terminal. Roto Lotto is a quick, simple and interactive lottery game adjusted to 3 Player receives printed voucher for the ticket containing information for the paid ticket in the round for which the payment was made. modern lifestyle. 4 The Roto Lotto number drawing is performed every 5 minutes (business plan is based on 144 drawings a day during a 12 hour period). It is played in cafés, bars, bus and train stations, betting spots and all 5 Sales point is equipped with a TV screen through which the encrypted dig- other highly visited locations where conditions for undisrupted organizing ital TV signal is beamed making it possible to watch Roto Lotto drawing in of Roto Lotto exist. real time. 6 Based on the voucher received upon payment and winning numbers, the After filling in the ticket, the result is known after only 5 minutes player finds out if his ticket is the winning one. If the player wins, he is to be paid off at the sales point but if the gain is greater than EUR 300, the player can only redeem his prize at the National Lottery branches. 4 5
  4. 4. HOW TO PLAY? GAME MODALITIES TICKET MINIMuM AND MAxIMuM TICKET VALuE SECOND CHANCE Ticket consists of 5 sections. The amount a Player is willing to pay for a ticket lies Each round also provides an additional chance to Section A, Section B, Multiplier Section, Section with Number of Games, and a Second Chance Section. in the Multiplier section, which contains 5 payment Players through a separate number drawing that fol- choices. Multiplier payments per ticket can be from lows suit from the first chance drawing. Selecting SECTION A 1 EUR to 10 EUR. this option raises chances of winning but also dou- Section A contains numbers from 1 to 20, out of bles the payment of the ticket. which 8 are chosen. FIRST CHANCE SECTION B QuICK GAME Ticket is organized in a way to be easy to fill in. It con- Section B contains numbers from 1 to 4. Player can chose 1, 2, 3 or all 4 numbers in this Section. By tains: Section A with fields containing numbers from 1 Quick Game is an option by which a Player gives the choosing more than one number, Players increase to 20 out of which 8 numbers are to be chosen. Roto Lotto mainframe system the permission to ran- their winning chance, and by that multiplies the value Section B contains numbers from 1 to 4 out of which domly select any 8 numbers from Section A and 1 of the ticket for the number of combinations that are one is to be chosen, and Player in this Section can number from Section B. Then the Player may manu- in relation to the number of chosen numbers. choose 1,2,3 or all 4 numbers in order to increase ally mark additional numbers from Section B, as well his winning chances, but at the same time multiplies the number of bets, multiplier and second chance. MuLTIPLIER SECTION the ticket payment of the basic bet in relation to the Is a field where Player fills in the bet amount he wants to pay to participate in the winning drawing. The high- number of marked numbers in Column B. er the bet amount, the greater the reward. NuMBER OF GAMES SECTION Player marks the number of rounds he wants to par- ticipate in with the same combination on the ticket. by marking any number of rounds, the value of the played ticket is multiplied. SECOND CHANCE participate in one additional chance of the same round if he/she marks the Second Chance field. By that, the payment for the ticket value is duplicated. Every 5 minutes the winning combination is done. Af- ter the first number drawing, a second drawing is in- stantly performed but are valid only for those players that have marked and paid Second Chance Section. 6 7
  5. 5. DRAWING WINNING Roto Lotto number drawings are performed every 5 minutes starting Jack Pot takes place when a Player guesses 8 numbers in Section A and 9AM for a duration of 12 hours every day. More number drawings can be the winning number in Section B. The payout for such winning guess is implemented, depending on the agreement with the Serbian State Lottery. 10,000 times higher than the value of the basic payment. Other winning combinations are shown in the Table. WINNING PRIZES & PAYMENT IN EuR In the course of one game, two winning combinations are drawn and are WINNING defined as First Chance and Second Chance. In every drawing of COMBINATION COEFFICIENT 1 2 3 5 10 First Chance and Second Chance, 8 random numbers in Section A and 8+1 10000 10000 20000 30000 50000 100000 one in Section B are to be drawn. 8 1000 1000 2000 3000 5000 10000 7+1 150 150 300 450 750 1500 7 50 50 100 150 250 500 6+1 30 30 60 90 150 300 New Game for New Chance 6 5+1 5 10 6 2 10 6 2 20 12 4 30 18 6 50 30 10 100 60 20 4+1 1 1 2 3 5 10 8 9
  6. 6. NuMBER OF COMBINATIONS IN ROTO LOTTO INFINIA IT SOLuTIONS Selling points are equipped with Infinia IT’s HW/SW so- GuESSES NuMBER OF lutions, adequate terminals with OCR readers and TFT SELLING POINT LOTTERY COMBINATIONS monitors, as well as other pertaining equipment. JACKPOT(8+1) 503,880 Infinia IT connects all of its terminals in the Roto Lotto TV uNIT lottery system to its platform, providing appropriate DIGITAL SW licences and maintenance. BEAMING ENCRIPTED 8 125,980 COMBINATION TV CHANNEL Infinia IT installs the reception of digital encrypted TV ROTO LOTTO 7+1 310,080 SERVER channel at all selling points where the drawing is be- OCR uNIT ing watched. This channel is beamed over a TFT moni- 7 77,520 tor connected with terminals, which operate with the DATA BASE NuMBER OF assistance of special applications. ROuNDS, uNIQuE 6+1 155,040 COMBINATION NuMBER Infinia IT Platform manages and memorizes registra- 6 38,760 tion of paid tickets and it is directly connected with the Lottery’s central information system. REPORTS 5+1 62,016 Infinia IT server performs processing and drawing of 5 15,504 winning combination and is directly connected with the Lottery’s central information system. 4+1 19,380 TECHNOLOGY Roto Lotto Server consists of two main modules: • Transaction module is responsible for simultaneous acceptance of a large MARKET ANALYSIS number of requests coming from selling points, checking correctness of combinations, persistence of data as well as generating and sending appro- 2009 2010 2011 2012 2013 priate data (unique combination number, payment time, number of rounds for which ticket is valid) to terminal. Module is highly stable and scalable Potential Customers Growth CAGR part of the system. Youth - students 5% 300,000 315,000 330,750 347,288 364,652 5.00% • Module for random number generating: Youth employeed 2% 20,000 20,400 20,808 21,224 21,648 2.00% Numbers are being drawn through quant random number generator. Random number generation is a critical security and reliability criterion in Active 14% 200,000 228,000 259,920 296,309 337,792 14.00% many demanding applications, especially in the lottery industry. Because of its intrinsic randomness, quantum physics is an excellent source of ran- Active unemployeed 10% 500,000 550,000 605,000 665,500 732,050 10.00% domness. Total 9.31% 1,020,000 1,113,400 1,216,478 1,330,321 1,456,142 9.31% Quantum random number generators have the advantage over conventional randomness sources of being invulnerable to environmental perturbations and of allowing live status verification. PROMOTION: • Technologies used: One promotion idea to improve on sales includes the “Happy Hour” promotion, where the coefficient of the win- • Java Transaction system ning prize is increased while the ticket payment fees stay the same. More details on this strategy will be dis- • Oracle 10 g system for data base management cussed during the development of the project. • MS .NET web interface for reporting 10 11
  7. 7. ROLE OF PARTICIPANTS IN ROTO LOTTO PROCESS SALES PLAN ORGANIZER - LOTTERY Sales are based on several key success factors of the game: Provides legality of the game, collects payments, performs wins payment, is in charge for material and finan- • Number of drawings during the working day is 144 – or more in agreement with the game cial business, tax payments etc. organizer . • Number of terminals- minimal 5000 pieces. SERVICE CENTER - INFINIA IT • Average number of payments per terminal for one drawing is 1.22 to 35 registered tickets. Provides IT support, HW and SW necessary for undisrupted and secure game functioning, equips selling Based on the payment analysis for other lottery games as well as distribution system for top points, responsible for TV channel program in terms of program and technics, performs repairs, surveillance ups of mobile telephony, which is most similar to ROTO LOTTO system , number of paid tickets in and control or equipment performance and education of employees at selling points. minimal number of transactions is derived ( details shown in the business plan). SELLING POINT Provides attractive premises, ticket payment, issue and registration of vouchers, makes daily incomes, wins Number of drawings during the day 144 payment up to certain amount, informs the players and promotes the game. Number of active POS 5000 Number of payments per POS per drawing 1.22 POS (SELLING POINT) INFINIA IT LOTTERY Total daily payments – No. of transactions 878,400 Average payments RSD 107 DISTRIBuTION SERVICE CENTER BACK OFFICE TOTAL monthly RSD 2,819,664,000 Owner of Small Business OWNER OF HW ROTO LOTTO ORGANIZER SW LICENCE • 5% of income of all transactions TV CHANNEL • Control over all transactions • Receipt of payments • Control over all payments • Small wins payments • In agreement with Lottery x% of • Marketing & Promotion income of all transactions • Pays winners • Control of all transactions • Reporting • Control of payments • System maintenance • Payment and reporting MONEY COLLECTION (95%) 12 13
  8. 8. DISTRIBuTION RISK ASSESSMENT Depending on the established agreement, in its first phase, Roto Lotto will be distributed at 5000 selling Based on an estimated number of payments and combinations, the risk of a potential win per lottery drawing points that include cafes, restaurants, betting spots and hotels. was calculated. There is a very low possibility of a potential win and that the Prize Fund, defined as 25% of pay- ments, is sufficient to cover all possible wins. Infinia IT can also become a distributor in the supply chain by installing terminals for payment acceptance at selling points, as well as TFT monitors for watching the number draws. Infinia IT will also train employees and supply the selling point with adequate quantity of advertising material as well as with prepared printed tickets. Money collecting, respectively payment, is under the full control of Lottery. DISTRIBuTION OF RISK PER DRAWING In order to create a game that will be played on mass-scale, selling points should be offered an attractive com- mission that will stimulate distributors in promoting, marketing and providing comfort to potential players. 50 100 200 500 1000 NuMBER OF NuMBER OF 50.00% 35.00% 11.00% 3.00% 1.00% GuESSES COMBINATIONS 3050.0 2135.0 671.0 183.0 61.0 JACKPOT 503,880 0.605% 0.424% 0.133% 0.036% 0.012% (8+1) 8 125,980 2.421% 1.695% 0.533% 0.145% 0.048% 7+1 310,080 0.984% 0.689% 0.216% 0.059% 0.020% 7 77,520 3.934% 2.754% 0.866% 0.236% 0.079% 6+1 155,040 1.967% 1.377% 0.433% 0.118% 0.039% 6 38,760 7.869% 5.508% 1.731% 0.472% 0.157% 5+1 62,016 4.918% 3.443% 1.082% 0.295% 0.098% 5 15,504 19.672% 13.771% 4.328% 1.180% 0.393% 4+1 19,380 15.738% 11.017% 3.462% 0.944% 0.315% 14 15
  9. 9. SWOT ANALYSIS ExPERIENCES STRENGTHS WEAKNESSES • Novelty at Market • High security costs (anti fraud) • Flexibility • Expensive maintenance of distributive network • Availability • Simplicity • Interactive game OPPORTuNITIES THREATS • Weak economic position of citizens • Inefficiency of financial security mechanisms • World Economic Crisis • Growing unemployment • Advanced services- development of SMS payments and Internet DEVELOPMENT - PHASE 2 After the initial establishment of Infinia IT systems, Roto Lotto has the option of further development to mobile platforms and ticket payments via SMS. The greatest advantage of Roto Lotto comparing to other competitive In accordance with the development of IT infrastructure games is frequency of the game which is interactive, performs a new and mobile operators, it is expected that the payment drawing at every 5 minutes and gives a new chance for lottery win. services in the future will have a key role in the signifi- cant increase in the number of players. Infinia IT’s goal is to develop IT payment systems by integrating postpaid The concept of Roto Lotto satisfies the interest of all generations and above all those that frequently visit cater- mobile phone accounts to real funds for game financing ing facilities (cafes, bars, betting spots, restaurants, etc.). Considering the city life style, constant movement (credit cards, bank accounts, etc). and living dynamics provide the game a great advantage comparing to existing ones. Estimation of the number of users and income via SMS Games with similar concepts are already present in the markets of developed countries such as France and is incomparably higher, since from the standard target Greece, and have proved to be successful in recent years. In order to illustrate the development and capacity group of lotto players, the customer base of players is of this type of game of chance, we will consider KINO, a 5-minute lottery organized in Greece. Total revenue in potentially increasing towards the target group of all mo- 2006 generated by KINO was EUR 1,85 billion, while in 2007 revenue increased to almost EUR 2,9 billion. KINO bile phone users. is a game that helped the Greek Lottery maintain high revenue and profitability growth rates in 2007. Also, it is a game that is remarkably well accepted by the players. The percentage of canibalization of other games of Protection mechanism used by Infinia IT satisfies the chance is maximum 12%. highest security standards providing reliable system. The game can be available for Internet users through During 2008, KINO achieved 19% growth rate in total revenue increase. Statistics also claim that the 20% in- paying cards payment system. crease is achieved in Q4 2008 and matches the ongoing world financial crisis. 16 17
  10. 10. BENEFITS KEY ELEMENTS NECESSARY FOR PROJECT SuCCESS WHAT DOES ROTO LOTTO PROVIDE? BENEFITS FOR STATE • 20% revenue growth from games of chance • Revenue increase from games of chance • Development of new games of chance that satisfy • New significant sources for increase of State’s the need of all market segments budget • Strong and aggressive marketing in the first phase of • Additional incomes for filling in the State’s budget • Transparent and controlled system of games of game development chance BENEFITS FOR PLAYERS • Efficient taxation and cash flow control • Wide availability – high number of selling points • Providing new jobs • Possibility to win every 5 minutes • Distributors’ motivation • Wide availability BENEFITS FOR INFINIA IT • Simplicity of the game • Informing in real time • Possibility of further development to new markets • Possibility of multiple payment • Development of SMS and Internet services • Security and reliability of solution • Transparent and quick win payment • Positioning on the Balkans market as well as a • Innovation and possibility of further development • Possibility of large win reliable partnership with Lottery. • High visibility in the media BENEFITS FOR LOTTERY BENEFITS FOR SELLING POINTS • New income source, increase of profitability of • Increase of number of visitors and turnover games of chance increase • Profitable and efficient system of game distribu- • More interesting content and entertainment of tion that allows development of new services in visitors the future • Additional income • Leader’s position and decrease of grey emission of cash flow that runs through betting spots • Satisfying the need of all market segments 18 19
  11. 11. Infinia IT is a mobile solutions company, an acknowledged leader and innovator in the use of technology to deliver mobile financial solutions to organizations of all sizes. Company follows its goal – to assist and simplify their customers’ operational work in complex activities, with the assistance of wireless and mobile technology. Infinia IT offers technology, people and experience which help clients to achieve growth and development in the are of mobile transactions. Our strength lies in the expertise of the 24/7 active team. The team is located in Switzerland, Italy and Serbia and is consisted of pioneers in the most significant sectors of IT industry such as wireless communications, networking, information security and technology risks. InfiniaIT Lottery Platform enables innovative, secured, mobile and multi-channel services providing new perspectives for the lottery development. Mobile Solutions HEAD OFFICE SWITZERLAND Spranglenstrasse 32 Tel: +41 (44) 586 25 45 CH-8303 Bassersdorf Fax: +41 (43) 430 21 48 ZH Switzerland E-mail: info@infinia-it.com REPRESENTATIVE OFFICES ITALY EGYPT uAE GREECE SERBIA Via Errico Petrella, 4 El Remaia, 33 P.O. BOX 293550 Mitropoleos 13, Knez Mihajlova 2/6 20124 Milan, Italy 12411 Giza, Egypt Dubai, UAE 54624 Thessaloniki, Greece 11000 Belgrade, Serbia Tel: +39 02 201003 Tel: +202 22677160 Tel: + 971 50 9432434 Tel: +30 2310 532869 Tel: +381 2648835 Fax: +39 02 44386710 Fax: +202 33770608 Fax: + 971 50 9432434 Fax: +30 2310 532870 Fax: +381 2648775 office.italy@infinia-it.com office.egypt@infinia-it.com office.uae@infinia-it.com office.greec@infinia-it.com office.serbia@infinia-it.com InfiniaIT solutions, IT architecture and applications development processes are designed following COBIT, ITIL, SOA and NIST SP 800-30 methodologies to meet the internationally recognized security and quality standards (ISO90003, ISO9001, ISO27001, PCI Ready, BS25999 meeting DR Requirements, ETSI) or specific local regulations - avoiding capital outlays for traditional equipment and labor-intensive operations. www.infinia-it.com

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