Brian Roberts

U.S. Lotteries and the Internet

– Revolution or Evolution? 1

Words of WisdomProfound Words

of Wisdom

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I’m Listening

U.S. Gaming Market 1964excluding Racetracks

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U.S. Gaming Market 2012

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40 states

900,000

machines5

The Point

If we don’t take those BABY STEPS to take ownership of the Internet our

competitors will;

Just like they took VLT’s!

Things Evolve, little by little, BABY STEPS

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The INTERNET is NOT a NEW FORM or EXPANSION of

GAMING

The INTERNET

It is a Global System of Interconnected

Computer Networks7

The Political DebateThe mere mention of Internet and gaming

in the same sentence, regardless of legitimacy of the activity fuels the political

debate.

Today’s debate is confused by our competitors; under the mantra of allowing people to play poker over the Internet; but

it want stop there.

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Change our Terminology

OUT:Internet Gamingi-gaming Playing on the

internetIN:Digital retail

channelse-commercem-commerceOnline sales

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The Gaming and Consumer Markets Have Changed

The current practices of selling lottery tickets do not appeal to new consumers who prefer to make purchases online at their convenience.

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Providing e-commerce for the sale of existing lottery products simply

expands the retail base to maximize sales;

it does not expand gaming. It is protecting the franchise that state

legislatures have given their respective Lotteries to provide funding

for good causes.

Benefits and Experience

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Commercial Break

The World’s Largest e-Retailer of Lottery

Tickets

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MORE Words of Wisdom

Remember – Things are not

always the same as we think they

are!

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THANK YOU