Multi-Jurisdiction

Games“The World Is Not

Enough”Presented By:

Brian GeorgePresident & CEO

Supreme Ventures Limited

Industry Overview Gaming Industry

Lottery Market (numerical games, instants) – Top Player Betting Market (sports, financials) Casinos and Video Lottery Games

2007-2011 Total Worldwide Lottery Per Capita Sales (Excluding VLTs and Instant)

2011 Worldwide Lottery Sales - US$190.5 Billion 2010 Worldwide Lottery Sales – US$180.6 Billion

Excluding VLTs and Instant % Change Increase– 5.5% Source: La Fleur’s

Industry Overview2007-2011 Total Lotto/Spiel Sales

Source: La Fleur’s

2011 Total Worldwide Lottery Sales

Games Include: Lotto/Spiel, Numbers, Keno, Toto, Bingo, Draw, Instant/Pulltab

2011 Worldwide Lotto/Spiel Sales

Lotto/Spiel

Industry Overview

Source: La Fleur’s Annual Report 2012

Industry Overview First Half of 2012 Sales by Region

Despite the financial crisis over the past few years lotteries worldwide continue to grow and perform strongly over the first half of 2012 (January- June) Increase of 10.7%

Source: World Lottery Association

Industry Overview 2011 Top 10 Worldwide Lotteries (Lotto&Spiel) by Per

Cap Sales

Source: La Fleur’s Annual Report 2012

US$

Industry Overview2011 Top 10 US State Lotteries (Lotto&Spiel) Showing the

Contribution of Multi-jurisdictional Games by Per Cap Sales

Population 8.8 M

Population 19.1 M

US$

Source: La Fleur’s Annual Report 2012

Population 8.8 M

Population .6 M

Population 19.5 M

Population 19.1 M

Population 12.7 M

Population .9 M

Population 1.1 M

Population 1.3 M

Population 3.6 M

Population 6.6 M

$65.56

$63.58

$57.88

$46.88$46.43

$43.40$43.80$42.59$42.46

$41.58

Challenges in the Industry Jackpot Fatigue

Players no longer excited by the prospect of winning available jackpots.

Players demand higher jackpots Will pay higher price for bigger jackpots

PowerBall January 2012 – Cost of ticket increased US$1 to US$2

Gaps in Customer Gaming Market Traditional lottery player – 35-65 years old Product offerings do not appeal to all target markets 18-35 demographic is shrinking and lacking

motivation to buy within industry A key market, “tech-savvy” consumers – to find a

way to communicate and buy

Challenges in the Industry

Keeping up with Technology Last 15 years- internet / PC based era Technology continues to advance

Rapid growth of smartphones and tablets worldwide

Lotteries have to keep moving and growing with technology Reach its potential market Gain its most profitable returns

Regulatory Restrictions Example: In Brussels there are legal and legislative

battles underway on the issue of cross border gambling

Adapting to the Challenges

Possible increase of customer base to reach a broader market by bridging demographic gaps through new technology and communication channels such as mobile gaming.

Introduction of lotteries in the mobile gaming industry will create many profitable opportunities such as: Creating more options and exciting ways for

consumers to choose and buy Expansion of multi-jurisdictional games

Multi-Jurisdictional Games Multi-Jurisdictional Games

A group of lottery jurisdictions offering the same game Provides more excitement

Larger pool, larger jackpots

Examples: Europe – Euro Millions North America

Mega Millions PowerBall

Caribbean – Super Lotto

Challenges Laws and regulations within the game and geographical

restrictions Providing games that deliver excitement and appeal to a more

diverse consumer base Cannibalization

Multi-Jurisdictional Games - EuroMillions Europe – EuroMillions started February 2004 European Countries

February 2004 -U.K, France, Spain, October 2004-Austria, Belgium, Luxembourg, Portugal

,Sweden 2007 – 2011 Total EuroMillions Per Capita Sales

Total EuroMillions Sales 2011- £5.958 Billion Total EuroMillions Sales 2010- £4.346 Billion

% Change increase – 37.11%

Multi-Jurisdictional Games - EuroMillions

Top 5 EuroMillion Jackpots won: August 2012, €190million, 1 winner, U.K. July 2011, €185million, 1 winner, Scotland February 2006, €183million, France and Portugal March 2011, €138.2million, 2 winners, Belgium and

Portugal October 2010, €129.8million, 1 winner, U.K.

Multi-Jurisdictional Games - EuroMillions

United Kingdom EuroMillions Per Capita Sales versus Total EuroMillions Per Capita Sales 2004-2011

2011 UK EuroMillions Sales - £1.666 Billion 2010 UK EuroMillions Sales - £1.056 Billion

% Change increase – 57.85%

Multi-Jurisdictional Games - EuroMillionsUnited Kingdom Product Portfolio 2005 vs. 2011

2005 – £5.013 Billion 2011 - £6.503 Billion

Multi-Jurisdictional Games - EuroMillions

United Kingdom % Change 2005 Vs. 2011

283.01%

EuroMillions -

18.07%

Lotto

78.52%

Lotto Plus5

-7.13%

Thunderball

99.51%

Scratchcards

-11.2%

Hotpicks

North America – Mega Millions & PowerBall

MEGA MILLIONS ONLY

POWERBALL ONLY

BOTH MEGA MILLIONS & POWERBALL

Multi-Jurisdictional Games – North America

North America – MegaMillions started August 1996 Started with 6 Jurisdictions

Georgia, Illinois, Maryland, Massachusetts, Michigan, Virginia

Currently available in 42 states along with District of Columbia and U.S Virgin Islands

Top 5 MegaMillions Jackpots won: March 2012, $656 Million, 3 winners Kansas, Illinois,

Maryland March 2007, $390 Million, 2 winners New Jersey, Georgia January 2011, $380 Million jackpot, 2 winners Washington

State, Idaho August 28, 2009, $336 Million jackpot, 2 winners California,

New York March 2011, $319 Million, 7 winners, New York

Multi-Jurisdictional Games – MegaMillions

Multi-Jurisdictional Games – MegaMillions

MegaMillions Per Capita Sales Vs. Total US Lottery Sales 2006-2011

Total Sales 2011 US$3.236 Billion Total Sales 2010 US$3.078 Billion

% Change Increase – 4.23%

Multi-Jurisdictional Games – MegaMillions

2011 Top 10 MegaMillions States by Per Capita Sales

North America – PowerBall started April 1992 Previously known as Lotto America Started with 15 Jurisdictions

District of Columbia, Delaware, Idaho, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Oregon, Rhode Island, South Dakota, West Virginia, Wisconsin

Currently Available in 44 Jurisdictions

Top 5 PowerBall Jackpots won: February 2006, $365million, Multiple Winners, Nebraska August 2012, $337milloin, 1 winner, Michigan February 2012, $336.4, 2 winners, Rhode Island March 2008, $276million, 1 winner, West Virginia August 2009, $259.9million, 1 winner, South Carolina

Multi-Jurisdictional Games – PowerBall

Multi-Jurisdictional Games – PowerBall2011 Top 10 PowerBall States by Per Capita Sales

Multi-Jurisdictional Games – PowerBallPowerBall Per Capita Sales Vs. Total US Lottery Sales

2006-2011

Total Sales 2011 US$3.107 Billion Total Sales 2010 US$3.228 Billion

% Change decrease – 3.74%

Multi-Jurisdictional Games – MegaMillions &PowerBall

MegaMillions & PowerBall Sales as % of Total US Lottery Sales 2006 Vs. 2011

9.32%Mega Millio

ns 10.22%Power

Ball

Multi-Jurisdictional Games – MegaMillions &PowerBall

MegaMillions & PowerBall Per Capita % Sales Change 2006 Vs. 2011

In 5 years – slight increase Maturity stage in product life cycle

Needs innovation, “new life” – to increase and grow profits

Multi-Jurisdictional Games – MegaMillions & PowerBall

Total Multi-Jurisdictional Us Games Sales Per Capita Vs. Total US Lottery Sales 2006-2011

Caribbean- Super Lotto started August 2009 Only muliti-jurisdictional game currently operating in

Caribbean, Central and South America Available in Dominican Republic, Jamaica, Barbados,

Anguilla, Antigua, and Barbuda, Bermuda, St Kitts and Nevis, Barbados, St Marteen and United Virgin Islands.

2011 Total SuperLotto Sales- US$14.477 Million 2011 SuperLotto Per Capita Sales- US$ 5.17

Super Lotto Jackpots won: October 2010, J$467 Million/ US$5.4 Million St. Maarten September 2011, J$387 Million (split price)

won J$232 Million / US$2.6 Million, Jamaica

Multi-Jurisdictional Games – SuperLotto

Multi-Jurisdictional Games – United States vs. Jamaica

US MJG60%

Other US

Lottery40%

US 2011

JA MJG31%

Other JA Lottery

69%

JA 2011

Opportunity for growth in country

Tremendous opportunity for growth in SuperLotto Trinidad & Tobago, Central & South America

The expansion of multi-jurisdictional games would allow this region to become a player in the world stage of multi-jurisdictional lotteries and give the region leverage with negotiation and participation with other multi-jurisdictional lotteries

Multi-Jurisdictional

games represent 60% in the

US

Multi-Jurisdictional

game represent

31% in Jamaica

Multi-Jurisdictional Games How do we increase sales among existing jurisdictions?

How do we increase sales across multi-jurisdictional games?

How do we address the consumer buying industry to penetrate for more reach in existing games whilst expanding regions?

Key ideas: Expand total revenue Increase per cap sales with an increase in contribution

without cannibalization Expand reach of customers (population base) Change value propositions

Are we going to need to increase region? Or increase how we market?

Multi-Jurisdictional Games will inevitably lead to a “Worldwide Lottery”

Tremendous opportunity to expand multi-jurisdictional games

The present reality of mergers, partnerships and acquisitions is helping to create a foundation Enables lottery companies to meet the increasing demand

for innovative gaming products.

Individual jurisdiction lotteries and current multi-jurisdictional games will reach a point of jackpot fatigue

Tipping point of an increase pool and jackpots

“Multi-jurisdictional lottery games are not only inevitable but necessary for growth in the lottery

industry.”

Multi-Jurisdictional Games will inevitably lead to a “Worldwide Lottery”

Establishing a worldwide lottery, which can and will exist with the growth of the mobile industry.

Customers want better chances/odds of winning worldwide lottery will increase chances of winning,

bigger jackpots Increase profit for the lottery companies (customers

will increase their spend when the jackpot it high).

Attracting public participation to the global game by focusing on the good causes/ public funded projects that will benefit from additional revenue, Generated through the larger pool of funds.

Multi-Jurisdictional Games will inevitably lead to a “Worldwide Lottery Jackpot”

2011 Worldwide Lottery Sales

Potential future growth

in these markets

especially due to their large

population size

Northern

Europe 100M Wester

n Europe 189M

Eastern Europe 295M

Southern

Europe 155M

USA & Canada 347.4M

South America 400.1M

Central America

& Caribbean 197.4M

China 1.34B

India 1.2B

Africa 1.1B

7 Billion

Potential “WorldwideLottery” Market

Multi-Jurisdictional Games will inevitably lead to a “Worldwide Lottery Jackpot”

Maximum Generated Jackpots: Mega Millions - US$656 Million Powerball - US$364 Million Euro Millions - US$257 Million Super Lotto - US$5 Million

If all four of these were to be combined on a Per Capita basis, a possible worldwide lottery jackpot, based on a population size of 7 billion, would potentially generate US$12.177Billion

The additional contribution to the pool of funds would also be significantly increased when Africa, China and India are factored in

Multi-Jurisdictional Games will inevitably lead to a “Worldwide Lottery Jackpot”

Potential Worldwide Lottery Jackpot

$12.177B

Mega Million

s$656M

Powerball

$364M

Euro Million

s$257M

Super Lotto$5M

Multi-Jurisdictional Games will inevitably lead to a “Worldwide Lottery Jackpot”

Benefits for participating countries Opportunity for retailer expansion

Increased employment Increased agents commission

Increased taxes collected in the country of residence of the winner

Increased revenue to be used for “Good Causes”

Larger players in the industry who have access to more resources/funds can boost the growth of the industry by investing in smaller lottery companies/partnerships Provide design support Marketability of new/other games, Functional and technological modernization of the draws in the smaller

operations/territories

Example: The new partnership of Spain’s State Society State Lotteries (SELAE) and Loteria Nacional de la Republica Dominicana will introduce the lottery “El Gordo de la Primitiva” in Dominica Republic, February 2013 8 Award Categories Guaranteed minimum weekly prize of US$6.48M Possibility to accumulate prizes up to US$51.87M

Creating more exciting options for consumers to choose and buy

These incentives might not be enough. To fully maximize the potential of multi-jurisdictional lottery

mobile money cannot be ignored. Allows lotteries to expand their reach without

proportionally increasing their cost. New way of consumer access.

Mobile creates access It will continue to help to grow the lottery industry by being able

to drive the expansion of territories through the idea of mobile money

Mobile Money Is the ability to use your cell phone to transact business A treasury function/management which creates a electronic

account/wallet that can be credited or debited through your cell phone

Creating more exciting options for consumers to choose and buy

The growing mobile industry contributes to the increasing growth of mobile gaming At the end of 2011- 6 billion mobile subscriptions worldwide

87% of the world population of 7.043 Billion. It will bridge the gap between demographics and tap into the 18-35 demographic

Technology enable operators to turn every player user interface into a medium to provide consumers with the entire portfolio of games It will benefit all:

Content Providers- by giving them the widest exposure of games Distributors – by enabling them to sell more products and

deliver better value to their customers Consumer – giving them more options, making it easy to

exercise their freedom to choose The ultimate consumer trigger in the buying process

Multi-Jurisdictional Games will inevitably lead to a “Worldwide Lottery Jackpot”

How should Lottery companies/participating countries prepare themselves and players for someone to wake up a billionaire:

Lottery companies would need to consider the possibility that potential players may think that such large jackpots are impossible to conceive and win, and hence may choose not to participate. September 3, 1988 the largest single lottery jackpot in world history,

to that date, was won in Florida (Winter Springs) for US$55.16M in 2012 there was a winning Mega Millions jackpot of US$656 Million

(now the largest winning jackpot in American history)

Participating Lottery companies would also need to consider if such a collaboration could be so big that it could fail, perhaps because of challenging regulatory issues, legal and legislative concerns which would have to be tackled

Lottery companies could also, for jackpot winners, direct them to financial institutions and advisors who would be able to assist and advise them with making wise decisions with their new found and massive wealth.

Multi-Jurisdictional Games will inevitably lead to a “Worldwide Lottery Jackpot”

Is it possible for a jackpot to be too big?

Is it possible for it to be so big that it is a set up to fail?

Would jackpots so big lead to the participating jurisdictions being forced to think differently on how they payout winning prizes?

Could a higher percentage of payments go to lower tiered prizes to help generate excitement and participation to the “Worldwide Lottery” game? Do subsidiary prizes now become more important in keeping interest? Can we now create multiple lower tier millionaires?

“The World Is Not Enough”