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How Will You Expand Your Retailer Base?. What is the #1 Product for US Lotteries? Instant TicketsInstant Tickets Account for ~56% of all Lottery salesAccount.

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Presentation on theme: "How Will You Expand Your Retailer Base?. What is the #1 Product for US Lotteries? Instant TicketsInstant Tickets Account for ~56% of all Lottery salesAccount."— Presentation transcript:

1 How Will You Expand Your Retailer Base?

2 What is the #1 Product for US Lotteries? Instant TicketsInstant Tickets Account for ~56% of all Lottery salesAccount for ~56% of all Lottery sales Instant Tickets generate over $30 Billion in sales in 2011Instant Tickets generate over $30 Billion in sales in 2011 Fast, easy play with instant resultsFast, easy play with instant results

3 StatePop. (M)Pull Tab% of tot.VLTs% of tot.Instant% of total Arizona % Arkansas % California % Colorado % Conneticut % Delaware0.9 $ % DC0.6 Florida % Georgia % Idaho1.5$ % % Illinois % Indiana6.4$ % % Iowa3$ % Kansas2.8$ % Kentucky4.3$ % % Louisiana % Maine % Maryland % Massachusetts6.6$ % % Michigan10$ % % Minnesota % Missouri % Montana % Nebraska % New Hampshire % New Jersey % New Mexico % New York19.5 $1, % % N. Carolina % N. Dakota0.6 Ohio % Oklahoma % Oregon3.8 $ % % Pennsylvania % Rhode Island1.1$ %$ % % S. Carolina % S. Dakota0.8 $ % % Tennessee % Texas % Vermont % Virginia % Washington % West Virginia1.8 $1, % % Wisconsin % Total: % 2010 US Lottery Sales by Product

4 How Can You Sell More Instant Games? Add more retailers…but where?Add more retailers…but where? The perfect answer: Bars, Taverns, and Fraternal ClubsBars, Taverns, and Fraternal Clubs Already age controlledAlready age controlled Already have amusement gamesAlready have amusement games Pool, Darts, Golden Tee, Pac Man, etc.Pool, Darts, Golden Tee, Pac Man, etc. Built in service staffBuilt in service staff Entertainment DestinationsEntertainment Destinations Patrons intent to spend disposable income on entertainment products.Patrons intent to spend disposable income on entertainment products.

5 States With Video Bar Products Now OregonOregon Video Lottery Terminals (reel games and poker)Video Lottery Terminals (reel games and poker) 12,393 VLTs; 2,382 locations12,393 VLTs; 2,382 locations $707 million in annual revenue (FY2010)$707 million in annual revenue (FY2010) West VirginiaWest Virginia Limited Video LotteryLimited Video Lottery 7,940 terminals; 1,622 locations7,940 terminals; 1,622 locations $397,287 million in annual rev (FY2010)$397,287 million in annual rev (FY2010) LouisianaLouisiana Video poker machines (numbers for bars only)Video poker machines (numbers for bars only) 3,743 VGMs, 1,247 locations3,743 VGMs, 1,247 locations $116 million annual rev (FY2010)$116 million annual rev (FY2010) MontanaMontana Video Gaming MachinesVideo Gaming Machines 17,892 VGMs17,892 VGMs $349 million annual rev (FY2009)$349 million annual rev (FY2009) South DakotaSouth Dakota Video Lottery Machines (includes c-stores)Video Lottery Machines (includes c-stores) 9,114 machines; 1,476 locations9,114 machines; 1,476 locations $215 million annual rev (FY2010)$215 million annual rev (FY2010)

6 Is there room in my state? Consume on Premises licenses:Consume on Premises licenses: Florida – Approx. 9,600 licenseesFlorida – Approx. 9,600 licensees Michigan – 6,823 licenseesMichigan – 6,823 licensees Washington DC – Approx. 1,000 licenseesWashington DC – Approx. 1,000 licensees Wisconsin – Approx. 13,000 licenseesWisconsin – Approx. 13,000 licensees Minnesota – 2,844 licenseesMinnesota – 2,844 licensees California – Approx. 16,000 licenseesCalifornia – Approx. 16,000 licensees Missouri – 5,687 locationsMissouri – 5,687 locations

7 So why haven’t states pursued B&Ts? Gaming Devices require a law changeGaming Devices require a law change Current instant product is not a good fitCurrent instant product is not a good fit ITVMs are too big for barsITVMs are too big for bars Not AttractiveNot Attractive Not EntertainingNot Entertaining Low Sales VolumeLow Sales Volume Ticket hassles for bar ownerTicket hassles for bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

8 What if all these Problems Went Away? Gaming Devices require a law changeGaming Devices require a law change Current instant product is not a good fitCurrent instant product is not a good fit ITVMs are too big for barsITVMs are too big for bars Not AttractiveNot Attractive Not EntertainingNot Entertaining Low Sales VolumeLow Sales Volume Ticket hassles for bar ownerTicket hassles for bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

9 What if there was an ITVM that … Gaming Devices require a law changeGaming Devices require a law change Current instant product is not a good fitCurrent instant product is not a good fit ITVMs are too big for barsITVMs are too big for bars Not AttractiveNot Attractive Not EntertainingNot Entertaining Low Sales VolumeLow Sales Volume Ticket hassles for bar ownerTicket hassles for bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

10 What if there was an ITVM that … Does NOT require a law changeDoes NOT require a law change Current instant product is not a good fitCurrent instant product is not a good fit ITVMs are too big for barsITVMs are too big for bars Not AttractiveNot Attractive Not EntertainingNot Entertaining Low Sales VolumeLow Sales Volume Ticket hassles for bar ownerTicket hassles for bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

11 What if there was an ITVM that … Does NOT require a law changeDoes NOT require a law change Is designed specifically for bars and tavernsIs designed specifically for bars and taverns ITVMs are too big for barsITVMs are too big for bars Not AttractiveNot Attractive Not EntertainingNot Entertaining Low Sales VolumeLow Sales Volume Ticket hassles for bar ownerTicket hassles for bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

12 What if there was an ITVM that … Does NOT require a law changeDoes NOT require a law change Is designed specifically for bars and tavernsIs designed specifically for bars and taverns Can fit in a 2’ x 2’ spaceCan fit in a 2’ x 2’ space Not AttractiveNot Attractive Not EntertainingNot Entertaining Low Sales VolumeLow Sales Volume Ticket hassles for bar ownerTicket hassles for bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

13 What if there was an ITVM that … Does NOT require a law changeDoes NOT require a law change Is designed specifically for barsIs designed specifically for bars Can fit in a 2’ x 2’ spaceCan fit in a 2’ x 2’ space Has stunning graphics and soundHas stunning graphics and sound Not EntertainingNot Entertaining Low Sales VolumeLow Sales Volume Ticket hassles for bar ownerTicket hassles for bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

14 What if there was an ITVM that … Does NOT require a law changeDoes NOT require a law change Is designed specifically for barsIs designed specifically for bars Can fit in a 2’ x 2’ spaceCan fit in a 2’ x 2’ space Has stunning graphics and soundHas stunning graphics and sound Is exciting and immersiveIs exciting and immersive Low Sales VolumeLow Sales Volume Ticket hassles for bar ownerTicket hassles for bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

15 What if there was an ITVM that … Does NOT require a law changeDoes NOT require a law change Is designed specifically for barsIs designed specifically for bars Can fit in a 2’ x 2’ spaceCan fit in a 2’ x 2’ space Has stunning graphics and soundHas stunning graphics and sound Is exciting and immersiveIs exciting and immersive Drives thousands of sales a dayDrives thousands of sales a day Ticket hassles for bar ownerTicket hassles for bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

16 What if there was an ITVM that … Does NOT require a law changeDoes NOT require a law change Is designed specifically for barsIs designed specifically for bars Can fit in a 2’ x 2’ spaceCan fit in a 2’ x 2’ space Has stunning graphics and soundHas stunning graphics and sound Is exciting and immersiveIs exciting and immersive Drives thousands of sales a dayDrives thousands of sales a day Reduces hassles on bar ownerReduces hassles on bar owner Stocking / RestockingStocking / Restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

17 What if there was an ITVM that … Does NOT require a law changeDoes NOT require a law change Is designed specifically for barsIs designed specifically for bars Can fit in a 2’ x 2’ spaceCan fit in a 2’ x 2’ space Has stunning graphics and soundHas stunning graphics and sound Is exciting and immersiveIs exciting and immersive Drives thousands of sales a dayDrives thousands of sales a day Reduces hassles on bar ownerReduces hassles on bar owner Simple, one-roll restockingSimple, one-roll restocking SellingSelling ValidatingValidating AccountingAccounting SecuritySecurity

18 What if there was an ITVM that … Does NOT require a law changeDoes NOT require a law change Is designed specifically for barsIs designed specifically for bars Can fit in a 2’ x 2’ spaceCan fit in a 2’ x 2’ space Has stunning graphics and soundHas stunning graphics and sound Is exciting and immersiveIs exciting and immersive Drives thousands of sales a dayDrives thousands of sales a day Reduces hassles on bar ownerReduces hassles on bar owner Simple, one-roll restockingSimple, one-roll restocking Automates all dispenser functions:Automates all dispenser functions: ActivationActivation SalesSales ValidationValidation RedemptionRedemption AccountingAccounting

19 A Competitive That uses:  High definition screens  2.1 stereo sound  Interactive touch screen to accept player input and display ticket results Presenting the ITVM for Bars Modern Ticket Dispenser The Diamond Game LT-3 That has:  A tiny footprint  Simple one roll restocking  Automated security, accounting, and reporting And is Legal NOW with no law change And can be deployed IMMEDIATELY

20 Ticket dispenser  Reads, dispenses and displays pre-printed, pre-determined paper tickets  The machine has no effect on the outcome of the game  Thus, the game is in the ticket and the ticket result governs  The machine cannot function without the paper tickets The Diamond Game LT-3

21 Choose from a spectrum of instant ticket dispenser Kiosk Kiosk Duo Gem The Diamond Game LT-3

22 Choose from our Full Library of Game Themes

23 Instant Tickets are the popular lottery productInstant Tickets are the popular lottery product Bars and TavernsBars and Taverns Age-controlled entertainment destinationsAge-controlled entertainment destinations Offer thousands of new retail locations per stateOffer thousands of new retail locations per state Gaming devices are, legally, not an option.Gaming devices are, legally, not an option. ITVMs are legal and available nowITVMs are legal and available now Summary

24 So… How Will You Expand Your Retailer Base?

25 The LT-3 The ITVM For Bars


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