Oregon Problem Gambling Services Regional Training, Fall 2018 Stacy Shaw & Krystal Smith

1. Oregon State Lottery:
Stacy Shaw, Director, Corporate Social Responsibility
Krystal Smith, Associate Program Manager,
Responsible & Problem Gambling
Problem Gambling Services [PGS]
Regional Trainings - 2018

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Oregon Lottery Mission:
To operate a lottery with the highest standards of security and
integrity to earn maximum profits for the people of Oregon
commensurate with the public good.
It Starts With Our Mission
We conduct our
business with the
higheststandards
of integrity and
security
Wework to ensure
maximumprofits
We are committed to
balancing revenue
creation
commensurate with
the public good
3 important Fundamentals:

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Why we do what we
do!
Today’s information sharing agenda will cover the following area:
How we do it!
Looking to the future
-New Ideas-
Our Beneficiaries

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Why we do
what we do!
Oregonians count on us. The Lottery provides funding for education, economic development, state parks and environmental
restoration, veterans programs, outdoor school and problem gambling prevention and treatment services (aka our
beneficiaries). Lottery bonds fund a host of state projects designed to promote job creation and market development. And
thousands of Oregonians enjoy our games and win prizes.

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The Lottery is the state’s second largest source of discretionary
fundingafterpersonalincometax,contributing over $12billion
to state funding since1985.
Creating Revenue For Oregon

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Lottery Dollars Do Good Things for Oregon
Lottery bonds fund a host of state projects designed to promote job creation and market development
and thousands of Oregonians enjoy and play our games safely.
To see how funds may be allocated in you county, visit Oregonlottery.org

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How we do it
We collaborate. We listen. We work with business partners and retailers who sell our products, We work with our
beneficiaries to promote their programs and the good things they do for Oregon. And we partner with the public health
community to promote responsible gaming and help and care for problem gamblers.

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Offering A Variety Of Products
We offer a variety of games for everyone,
including eight different draw games and video
lottery, so there’s something for everyone
(18 and over of course!!).

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Creating Revenue Responsibly
Our Goals
•Provide information
and toolstohelp
playersmake informed
choices and enjoy
Lottery games in a
responsibleway.
•Create awareness of the
help and resources for
those affected by
problem gambling.We
aimtoensure that
Oregonians know how
toaccess helpand that
treatment is FREE,
confidential and it
works.
Our prevention efforts
are paying off: the
prevalence of problem
gambling has remained
at about 2.6 percent of
adult Oregonians for
the past 20 years, even
though gaming types
and venues have
multiplied during that
time.

11. Responsible Gambling
By TheNumbers
12

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Retailers are ourprimary business
partners.Last year,Oregon retailers
sold over$1 billionin Lottery
products.
Working With Our Business Partners

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Meeting Market Demands
And to deliver on our mission to earn maximum profits, the Lottery must remain relevant and competitive by innovating and evolving our
strategies to meet the needs of Oregonians. Evolving technology presents the Lottery with new ways to reach current players, and new
opportunities to expand gaming options.
We do this by:
• Leveraging our current portfolio and
• Exploring new ways to engage with Players

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Leverage Current Portfolio
Video Lottery
 Ongoing refresh of Video Lottery games
o We introduce 12 new VL games a year
 Test and deploy new VLT models and vendors
 New video gaming system upgrades will include:
o Player management to enable an RG module
o Allows the functionality to collect player information
o Progressives – early stages of exploration
Traditional Lottery
 Ongoing refresh of Scratch-it’s themes
 Test possible Keno enhancements
 Traditional gaming system upgrade to include new digital
vending equipment
o Replacing outdated technology
o Will allow for stronger RG messaging and monitoring of
underage activity

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Exploring New Ways To Engage With Players

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Looking to the
future
-New Ideas-
Fulfilling our promise to Oregonians means keeping pace with market and technology trends all while maintaining
our commitment to responsible gaming and sustainable growth

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Engaging Players Online
Our players engage online and are increasingly mobile. The Lottery needs to expand and improve its
digital presence to meet current and future customer demands.
E-commerce is the new normand the expectation for self-service via the web are increasing.

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Mobile Application Objective
Provide digital utility that engages Lottery
consumers in a means and manner they
expect and desire. We embrace digital, it is
the future - Launch, learn and grow digital
capabilities
Strategy
Using a customer-first analytics-driven
approach, we created a mobile application
that meets Oregonian needs/wants and allows
the Lottery to expand digital engagement
Launch with Value
Provide mobile app tools and experiences for
consumers that are so valuable that a player
uses the app every time they play.
Going Mobile – It Starts With The APP

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Going Mobile – APP Experience
DID I WIN? A CHECK-A-TICKET
EXPERIENCE
The current “Did I Win” experience is outdated
and underwhelming. Our app-based check a
ticket provides the player with several benefits:
 Mobile verification of winning (or not) for
Scratch-its, Draw Games, and Keno.
 Built-in “excitement” when someone scans
a winning ticket. Think getting your 10,000th
step on your fitness tracker.
 Mitigation of buyer’s remorse in the form of
the good things lottery dollars do for their
area of the state displayed via geo-targeting
for a non-winning ticket.

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Going Mobile – APP Experience
RESPONSIBLE GAMING TOOLS
It is of the utmost importance that any mobile offering
follow the Lottery’s mission to grow our player base in a
responsible, sustainable manner.
RG content and tools are, and will always be, a staple of
the mobile app.
 Lottery app users must be 18+. There are several
points where the customer is asked to verify age
 An interactive set of RG “tips” is available and allows
you to earn fun badges
 A budgeting & timer tool integrated for Video Lottery
players
 The Cost of Play calculator explains what regular play
equates to financially over a period of time for players
Check out a Cost to Play calculator on oregonlottery.org
until the app comes out soon!

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Going Mobile – APP Experience
GAME INFORMATION
 The APP informs players about new
games or new features
 Keno players will have the ability to
display a “live” game play experience on
their mobile device
 Players have the opportunity to opt-in
for reminders when the 8-Spot bonus
reaches levels they care about.

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Going Mobile – APP Experience
Launch in APP stores soon –
 September 2018 – Release to the Apple
Store.
 Early November 2018 – Release to the
Google Play Store.
Customer first Communications
 Jackpot reminders, sales messages,
Lottery events and promotions, and key
beneficiary information
 Retailer information – available games,
busy times of the week, exterior building
images to find retailer, links to websites,
and more.
 On-going RG messaging and tools via
APP
Convenient Point of Purchase
 Launching player account management,
e-commerce, and selling traditional
products digitally will be considered.

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New Opportunity – Sports Products
What happened:
Professional and Amateur Sports Protection Act of 1992
(PASPA)
 Federal legislation was passed relating to the expansion of sports gambling.
 Effectively outlawed sports betting nationwide, excluding a few states.
 Oregon was one of four states grandfathered in by PASPA sports
betting laws on the books.
 Oregon voluntarily ended Sports Action in 2007.
Murphy v. National Collegiate Athletic Association (May 2018)
 U.S. Supreme Court ruled that states should have the right to regulate and
tax sports betting, and that it was unconstitutional for the federal
government to ban them from doing so.
 Opens the door to all states to offer different approaches to sports betting.

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New Opportunity – Sports Products
Why would we Look at Sports Betting?
 It would provide incremental revenue growth
 Help grow our portfolio and player base in a responsible, sustainable manner
 Research indicates - An estimated 28 million Americans would be more likely to
wager on sports if sports betting was legal (American Gaming Association - AGA)
 Nearly one in five Americans have bet on sports in the past year (AGA)
 Americans bet more than $15 billion on the Super Bowl and March Madness – 97
percent of that was bet illegally (AGA)
 In the 2017 football season, an estimated $58 billion in illegal bets were placed
on NFL and college games (AGA)
 Estimates of illegal U.S. sports betting vary from $107 billion annually (Ernst &
Young) to $150 billion annually (AGA)

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New Opportunity – Sports Products
What could Sports betting look like in Oregon?
The Oregon State Lottery Commission can offer any game of chance,
including sports betting right now.
There are a number of ways to explore these opportunity:
 Sports Betting: Have a catalog featuring fixed-odds sports betting games as seen similar
to Nevada
o Retail Sportsbook - Fixed Odds
• Bets placed printed on paper slips in Lottery retailers.
o Online Sportsbook – Fixed Odds
• Bets placed on electronic play slips through the lottery app.
o Sports Action - Parlay betting that involve the outcome of more than one game at a
time. [what we offered in the past]
• Paper-based wagering on professional sporting events (NFL – expanding to
NBA, MLB, NHL).

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What we need to
do it!
Fulfilling our promise to Oregonians means keeping pace with market and technology trends all while maintaining our
commitment to responsible gaming and sustainable growth

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The next few slides include language in the new legislative bill:
There has not been a comprehensive review and update of the Oregon Lottery statutes since coming into
existence in 1985. Current statutes do not reflect modern business strategies, organizational, and
administrative needs or best practice.
For Lottery to pursue strategic revenue growth within the current lottery portfolio and to expand our
portfolio into new game platforms, our statutes need to be updated.
Lottery’s legislative concept will:
1. Define and designate our current game portfolio, while enabling Lottery to consider new platforms for
offering games to players utilizing modern gaming technologies
2. Address moving from anonymous play to non-anonymous play
3. Enhance our responsible gambling/problem gaming duties
4. Make technical fixes to align statute with current practice, administrative references, and definitions.
Lottery Modernization Bill – Barriers to our growth

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Define Video Lottery Game terminals and Video Lottery Games
To pursue strategic revenue growth in responsible manner, Lottery wants to move into the digital world
and engage players on mobile platforms. But to do this a clear, statutory designation needs to be made
between mobile devices and Video Lottery terminals.
Currently, there is no definition of what a Video Lottery Game terminal is, only how they are regulated,
which means that mobile devices could be considered Video Lottery Game terminals. To clear the space
for expansion onto mobile devices and prevent personal and business mobile devices from acting like;
regulated like; or taxed like Video Lottery terminal definition is necessary.
Lottery proposes to:
• Define in statute, what a Video Lottery Game terminal (VLT) is (and subsequently is not), using
definition adopted in our OARs.
• Define in statute, what a Video Lottery Game is (and subsequently is not), using definition adopted in
our OARs.
.
Lottery Modernization Bill – Defining the Digital World

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Provide players confidence that Lottery will protect and maintain
confidentially of their Personally Identifiable Player Data.
Currently, people purchase and play Lottery games anonymously. Going mobile
means Lottery play and players activity is no longer anonymous. Players will be
asked to voluntarily share personal information with Lottery that will be connected
to their play and play habits, generating Personally Identifiable Player Data.
Players using the APP will have personalized player accounts that will generate
Personally Identifiable Player Data. The Lottery needs to be able to provide players
confidence in how this information is protected and secured by the Lottery.
Lottery proposes to:
• Define Personally Identifiable Player Data, establish the policy for how this
information will be protected and treated as strictly confidential by Lottery.
• Provide authority to the Oregon State Lottery Commission to adapt our
information systems, standards, and procedures to protect and maintain the
confidentiality of Personally Identifiable Player Data.
Lottery Modernization Bill – No longer anonymous

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Investing in Responsible Gambling through Research
As the Lottery strategically expands its lottery game portfolio and explores new
revenue and business strategies, research will be valuable to assist in identifying
and mitigating risks that the Lottery will confront as it engages new players and on
new platforms.
In the Oregon State Lottery Responsible Gaming Code of Practices Act, the
Commission is directed to research and to inform all areas of responsible and
problem gambling resource awareness efforts. The Lottery is required to provide
adequate funding for research so as to allow for the application of evidence-based
considerations to implementing lottery games and game features to allow for
informed decision-making by lottery players and discourage problem gambling.
Currently, there is a lack of research data available to arm stakeholders with is
necessary to obtain, allocate, and maximize problem gambling resources.
Lottery proposes to:
• Establish funding mechanism that will enable the Lottery to partner with a
research university to support specific Oregon-focused problem gambling
research.
Lottery Modernization Bill – Responsibility to our Players

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Getting our House in Order
Current statutes do not reflect modern references, technology,
information delivery methods, organizational, and administrative
needs. The Lottery has identified, and may identify additional
changes, that modernize statute while maintaining the original
intent of the law.
A few Lottery proposals:
• Allow for postmarks to be counted for purposes of one-
year deadline for claiming prize.
• Remove outdated reference to telecommunication
infrastructure;
• Change “security, integrity, honesty and fairness” to
“Fairness, Integrity, Security, and Honesty” (FISH);
• Printing tables of odds is not the best way to make this
information available, amend to allow discretion to use
modern means, not just printing; and
• Streamlining references.
Lottery Modernization – Housekeeping

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In lieu of Q & A
Please submit your questions to Greta Coe so that
the Lottery can review after attending all regional
training sessions to see if there are common
themes/questions asked.
Replies will be sent out to all attendees so that
everyone receives the same language.