Lottery Challenges; Interactive a Tool to attract Millennials April 1st, 2015

2 GTECH Interactive Offering 2 INTERACTIVE PRODUCTS AGTECH Interactive is a one stop-shop operator with the largest portfolio of Interactive Gaming verticals in the industry Leading commercial operator and provider of technology in regulated worldwide gaming markets Offers products and services in approximately 100 countries Services over 1 million internet players monthly Company combines #1 Global Lottery business with #1 Global Gaming Equipment Provider Invested over $0.5 Billion in the interactive business

3 GTECH Interactive Leadership and Expertise 3 In addition to being an interactive B2B provider in more than 20 regulated jurisdictions, GTECH is competing across the globe as a B2C iLottery and iGaming operator serving every month over 1 million internet players and generating over 1.5 billion in wagers every year UK Spain Illinois Indiana Italy New Jersey Colombia B2CB2B Sweden Belgium California Ontario Quebec UK British Columbia Greece Spain Ireland Norway Finland Chile Mexico Luxemburg New York Georgia Austria Recent Awards 2014 DIGITAL INDUSTRY SUPPLIER OF THE YEAR 2014 BEST B2C ITALIAN INTERACTIVE OPERATOR

4 Age demographic comparison Age GroupPopulation US Lottery % US Lottery Pop INTL Lottery % INTL Lottery Pop ,457,65312%3,774,91816%5,033, ,844,58717%7,283,58029%12,424, ,452,69014%5,663,37723%9,304, ,767,53219%8,315,83117%7,440, ,316,43120%7,863,28611%4,324, ,704,07418%8,046,7334%1,788,163 Millenials are the dominant age demographic globally Average age increases

5 Millennials: The largest Spending Power As of 2015, the market volume of social game developers in the United States is expected to amount to 9.82 billion U.S. dollars Millennials are the largest demographic for spending power in the U.S. They are unengaged by traditional brick and mortar real money gaming experience and are moving to digital experience 76 million strong, their size and combined purchasing power make Millennials a necessary market segment to target An estimated combined purchasing power of $2.45 trillion world wide by Not influenced by traditional ‘push’ marketing strategies. Born and raised in the age of technology, Millennials consume information when and how they want to Gen Y

6 Multichannel Player Demographic *Source: MQO market research 2012, commissioned by Spielo Players Demographic (Age profile)U.S Social Gaming Development (billion U.S.) Interactive gaming attracts younger players… Market volume of social game developers expected to reach billion U.S. dollars by 2017

7 Mobile vs. Millennial Lottery Players: Illinois Lottery Spending Per Age Group (Mobile App vs. Web) Younger players spend more on Mobile App Channel PERIOD: JAN'14-FEB'15 Sales Mobile App: Currently ~28% of iLottery Sales Mobile Channel: ~39% Mobile App Sales PC Web Sales Mobile App %Mobile Web %Web %

8 8 Mobile Convenience App Illinois Lottery Launched: Jan. 12, 2014 Downloads: 269,000+ Avg. Weekly Usage Users: ~35,000 Sessions: ~148,000 CURRENT FEATURES Jackpot Information Winning Numbers Push Notifications Retailer Locator How To Play Shopping Cart Responsible Gaming Terms & Conditions Registration FUTURE RELEASE Ticket Scan Inquiry Digital Playslip Wager Builder

9 9 Mobile Convenience App Indiana Lottery Launched: Aug. 10, 2014 Downloads: 106,000+ Avg. Weekly Usage Users: ~19,000 CURRENT FEATURES Jackpot Information Winning Numbers Retailer Locator How To Play Bingo To-Go Responsible Gaming Terms & Conditions FUTURE RELEASE Ticket Scan Inquiry Digital Playslip Wager Builder

10 The Real and Virtual Worlds are One: Digical Approach 10 Customers have changed. They weave their digital and physical worlds tightly together Digital channel will not undermine the retail lottery business but we cant ignore the changes brought by digital technologies. Lotteries must fuse the digital and physical worlds, just as consumers are doing. We should pursue a DIGICAL innovation approach. The real and the virtual worlds are one: so should be GLC

11 Digital and Physical Mash-Up Digical 11 Digical innovations will hit some businesses much harder and faster than others, The range of impact is wide. The biggest change for retail is yet to come.

12 The Real and Virtual Worlds Are One: Starbucks

13 The Real and Virtual Worlds Are One: Disney Future Customers can enjoy attractions with little or no wait, with the ability to reserve Park experiences in advance, as well as making changes on-the-go Customers can manage Family & Friends lists, plans, customize profiles, view reservations, tickets and FastPass+, keep track of plans with reminders of reservations, show times, attraction wait times, all via GPS-enabled maps MagicBands My Disney Experience Mobile App FastPass+ My Disney Experience FastPass+ 2 3 Disney is on target to realize some $500 million in annual incremental revenue with a 20% operating margin Results Future applications may include the personalization of rides and attractions, such as Winnie the Pooh greeting a child by name and wishing him a happy birthday Future All-in-on devices that customers can use to enter parks, unlock hotel rooms, use FastPass+, charge purchases to rooms, and link PhotoPass photos to their Disney accounts MagicBands 1

14 Lottery Digical Expansion: Non-Traditional Lottery Store Mobile APP (iOS and Android) or Mobile Browser LOTTERY WiFi PLAY HERE Download APP Set up Account PLAY! WIN! BRAG! NO LOTTERY TERMINAL REQUIRED WiFi Connection GTECH Comm Lottery Host and ES Player Direct WiFi lottery Hot- spot terminal

15 Ecosystem Constraints Lottery Industry is not moving fast enough compared to how the market is evolving and regulation is moving even slower Millenials Regulation Retailers

17 Ecosystem Constraints Lottery Industry is not moving fast enough compared to how the market is evolving and regulation is moving even slower Millenials Regulation Retailers DIGICAL 2.0

18 GTECH’s MGM Offering Summary 18 Customers inside all 12 MGM properties in Las Vegas will be able to play slots, casino and live betting on their mobile devices connected to their room account Customers will be able to place pre- and live bets on sports on their mobile devices, anywhere in Nevada GTECH will supply a full retail solution to MGM’s sports books in Nevada based on MarginMaker and World*Till.

19 Digical Convergence of Offline & Online Gaming Choose your footer and place here PHYSICAL DIGITAL DIGITAL GAMES WEB / DESKTOP PLAYER POS INTERACTIVE PROCESS

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21 Synergy for Everyone Choose your footer and place here BENEFITS OF DIGICAL RETAILER ASSOCIATED PLAYER ACOUNTS Top Ups & Wagers Retailer Commission % of TopUps OR % of Wagers (Variable by Game) Drive Traffic to the Point of Sales Expand Game portfolio Enlarge Retail Network PHYSICAL