The Future of the Instant Ticket?

1. The Future of the Instant Ticket?

2. Industry Trends or Industry Buzz Convergence Internet Gaming Privatization Social Media

3. Lottery is a Trusted Brand

4. Instant Ticket Value Proposition

5. Historical Instant Ticket Sales 42 Lotteries iPod introduced Higher price points ($10+) PC / Internet in the home 38 Lotteries Multiple price points 33 Lotteries

6. Legalized Internet Gaming Lottery models • Finland • Started in 1996 • 15 years later, Internet sales are 23% of total sales • Denmark • Started in 2003 • 7 years later, Internet sales are 16%of total sales • Sweden • Started in 2003 • 7 years later, Internet sales are 13% of total sales • Canadian Lotteries • Internet sales are very small portion of total sales

7. Historical Music Sales

8. WHY?

9. “As long as people need to buy gas, the physical ticket is required” - Industry Expert

10. Theory of Anytime, Anywhere?

11. Impulse Purchase?

12. A Few Conclusions

13. Future Instant Ticket Sales?