Corporate Social Responibility  Page 1 GTECHDIRECT®
 
Special Edition Consumer Protection  Page 2 What the Future Holds Page 4
 
 
Responsible gaming has always been a hallmark of socially responsible lotteries, but has grown in prominence in the last few years driven by two dynamics: 1) the expansion of revenues for good causes has come under increasing public scrutiny, and 2) market pressures have focused the justification for lottery licenses on the basis of the protection of the consumer.
As depicted in the Corporate Social Responsibility graphic – Responsible Gaming encompasses three major areas:
  1. Age and Residency Verification – Ensuring players are of proper age and residents of the jurisdiction offering a game.
  2. Geo-filtering – Ensuring players are within the proper geographical boundaries (for interactive channels).
  3. Spending Controls – Creating spending limits (established by the lottery or by the player) for play over the course of a specified period of time (i.e., daily, weekly, monthly)
A major issue that lotteries face today is the enforcement of age verification. With the popularity of self-service lottery terminals on the rise, it is becoming more of a challenge to ensure underage play is not occurring. Many retailers are opting to keep their self-service terminals in their direct line of sight, so that they can monitor their customers’ purchases. Internet- based play now sometimes requires an individual to enter personal identification and address information in order to verify they are of the legal playing age. While these efforts are growing and becoming more of a priority for many lotteries, there is a great deal of work that still needs to be done.
Like ProSys®, GTECH Enterprise Series (ES) is also at the heart of our customers’ business operations. It provides access to both high-level and detailed information, enabling our customers to monitor gaming at the player, retail, and game level. The powerful ES Reporting suite of tools allows for detailed analysis of games, retailers, and players to determine if action needs to be taken or to provide information to third-party organizations. In  addition to monitoring player behavior and providing customers with important information concerning responsible gaming, ES provides customers with essential tools to enable them to control gaming in a timely manner. For example, if a customer determines that a retailer is consistently violating local regulations on underage play, ES gives the customer the ability to disable all lottery functionality. ES also enables customers to implement system-wide sales limits on daily sales for all games or just for specific games.
Age Verification at the POS
The point-of-access for lottery transactions plays a critical role in responsible gaming. Today, the majority of governments are adopting PDF 417 barcodes as a standard feature on driver’s licenses and other forms of identification. These barcodes allow for the dense storage of information such as an individual’s age and address. All of GTECH’s current point-of-access products are capable of reading these barcodes, providing customers with reliable age-verification technology for their retailers. The age-verification process becomes even more critical with self-service devices. Retailers now have the ability to remotely shut off the power to GTECH products, and customers can implement the actual scanning of a player’s driver’s license for each transaction, virtually eliminating underage play.
The Ultimate Solution: Player Registration
The popularity of consumer membership cards for vendors across all industries has significantly increased over the past few years. Whether it’s a consumer’s CVS ExtraCare Card, gym membership card, or a Borders Book Rewards card, their use is widespread.  After a simple registration form is completed, each consumer’s purchases are automatically documented. The use of such membership cards (player cards) and player registration have also increasingly become seen as a viable tool to promote CSR efforts in the lottery industry.
Traditionally, playing the lottery has been an entirely anonymous activity. With the advent of commercial loyalty programs several years ago, some lotteries introduced the concepts of player cards and subscriptions. Over time, they realized that it was good business to have players register for these services, as a means of collecting critical demographic and player preference data. Online lotteries now use this information to fine-tune their game portfolio, market communications, and promotional budget.
In jurisdictions where interactive gaming is permitted, lotteries require that players register to ensure age and residency verification, set up stored-value accounts to fund lottery play from personal financial instruments, and deliver player- and lottery-managed responsible gaming controls.
In general, players are cautious about yielding personal information to the government or perceived government agencies regarding gaming. GTECH is exploring opportunities to see if players are willing to exchange personal information for perceived value.
How Does Player Registration Work?
Typically, players register with the lottery over the Internet, but in some jurisdictions, they may also send the appropriate forms by fax or mail to the lottery. The player information required is similar to what non-lottery consumer brands request when a new or unknown customer expresses interest in purchasing a book, music, or clothing via the Web.   Each player must provide basic information, including date of birth, address, source of wager funding, etc.
Once the lottery authenticates the registration, the player is eligible to place automated wagers. Examples of automated wagering include: playing favorite numbers at an authorized retail location with a player card, ordering a subscription over the Internet, or sending an SMS text message from a phone to wager on a sporting event. Validating the registration prior to the electronic wager being placed ensures that the player satisfies the lottery’s age, residency, and any other local requirements.
In addition, registration enables both the player and the lottery to set and enforce spending controls that comply with local requirements. Such limits would be set in place for a certain period of time. Maximum limits could either be set by the player or set by the lottery on behalf of the player. Players would have the ability to set their own limits, either completely on their own or up to the lottery-suggested maximum.  In either case, players would be allowed to make changes to their limits if they desired via the Internet.  
Many jurisdictions are exploring the concept of player registration, however some lotteries, including Norway, have already made it mandatory. Others, like Svenska Spel in Sweden, have successfully implemented optional player registration programs. In contrast, primarily because of federal statutes that prohibit electronic wagering, US lotteries offer very little, if any, registered play.
Video Lottery Terminals – Leading the Way
The unique environment associated with video lottery play proved to be a logical place to implement a number of responsible gaming efforts. GTECH’s video lottery subsidiary, Spielo, currently offers customers a number of specific solutions to support responsible gaming as part of its Informed Player Choice System. Players are ultimately accountable for using good judgment in terms of setting their own limits, but it is our intent to enable customers to supply players with the information necessary to promote responsible play. Each video lottery terminal (VLT) currently supports a number of responsible gaming features, including the following:
  1. A greeting for new players that displays responsible gaming information, including video game odds and outcomes, and gambling addiction help information provided by the operator.
  2. An age-verification feature that confirms players are of legal age before allowing a play session.
  3. A permanent clock display to inform players of the duration of their play sessions.
  4. A display of credits in dollar amounts to make players more aware of their actual cash losses while highlighting their total spending.
Time limits that force players to limit how long they will play. This feature requires players to cash out at the end of each time period, rather than allowing for continuous play, thus creating a break in play, consistent with responsible gaming best practices.
 
Best Practice Guidelines for Prohibiting Lottery Sales to Minors
Placement of Self-Service Machines
  1. In direct line of sight to the retailer
  2. In direct line with express checkout lanes at large retailers
  3. Never placed near children’s video games, toys or rides
  4. Placed in high traffic area of store, not in a cluttered area
Consumer Alerts
  1. Printed on lottery tickets
  2. Scrolling on LED displays – multiple times per day, i.e. “Must be 18 years or older to play”
  3. Bright warning stickers on self-service machines
  4. Advertising at each point-of-sale
Proactive Prevention Programs
  1. Educate and train store personnel on state/country laws prohibiting the purchase of lottery tickets by minors
  2. Periodic “sting operations” with local authorities, i.e. New York’s “Project 18+”
  3. Remote shutdown of self-service terminals
  4. Allows retailer to turn machine off if underage patrons attempt to purchase tickets with either a retailer controlled radio frequency (RF) key-fob device or a remote control shutdown from the online terminal screen
Age Verification Software Built into all Lottery Terminals
  1. Terminal application download to all
    lottery retailers
  2. Self-service terminals enabled to recognize player identification cards (with magnetic stripe, barcode, or smartcards)
  3. Field proven in both NY and PA
Player Registration Programs
  1. Player signs up one time and receives a magnetic or barcode player loyalty card
  2. Card will verify player age
  3. Card can be read at any lottery retail shop from the lottery self-service device
Responsible Gaming GTECH’s current technology is one of the many tools used to further responsible gaming.