Thank you all for attending the 2015 Gaming in Holland Conference!

In today’s recap, we will be focusing on some major questions regarding the global and Dutch lottery markets that were discussed by our expert panelists. Moderation was in the capable hands of Marcus Geiss, CEO of Neolotto.

We will keep you posted for more recaps.


The Global Lottery Market

What do private operators bring to the global lottery market?

Richard Bateson (Camelot): “Privatization is good. New talent is being drawn to the industry.”

Dr Hans Cornehl (ZEAL): “Bringing talent to the industry was less important when it was dominated by monopolies. Now we can, and have to, compete in the war for talent, in order to have access to innovation.”

Peter Paul de Goeij (Lottovate): “Competition will drive innovation, including player protection.”

Should lotteries offer their products online, through different channels?

Richard Bateson: “Don’t push people online. Instead, offer access where, when, and when they want it. It is all about offering more accessibility, not just about migrating customers online. Many customers are in the habit of, and actually like, buying their tickets offline. However, considering the wide use of smartphones, mobile is ultimately unavoidable.”

Štěpán Dlouhý (KKCG): “Buying tickets offline is sometimes also about socializing, playing games together.”

Hans Cornehl: “As an industry, we should not just offer our traditional products online, but develop a unique interactive channel. We should be creating something new.”


Should lotteries focus on their traditional products or consider expanding into other games?

Štěpán Dlouhý: “In the Czech Republic, we consider it in our best interest to preserve a strong, exclusive lottery brand. However, in Greece OPAP is already known for offering other games. So with them we are definitely considering expansion.”

Hans Cornehl: “In our experience there exists very little overlap between lottery players and, for example, casino players. So expansion carries the danger of diluting our brand. So we could do it under a separate brand name, but there will be very low synergy.”

Richard Bateson: “If you decide to do it, ring-fence the main brand.”

Joe Saumarez Smith (Bedegaming): “It is going to be a hard sell. Most players of online casino games come from land-based casinos, definitely not lotteries.”



The Dutch Lottery Market

What will the Dutch lottery landscape look like?

Arjan van ‘t Veer (Staatsloterij): “Currently, we are working on a merger between the Staatsloterij and De Lotto.”

Peter Paul de Goeij (Lottovate): “We will happily be a new entrant to the Dutch market.”

Arjan van ‘t Veer: “We have no problem with that. Historically, broadening the market has always increased revenues. Additionally, we are interested in expanding into other games, although our basis will remain the lottery.”

Sigrid van Aken (Dutch Charity Lotteries): “Our main goal is to raise money for charities. We might offer additional games, but only in order to connect with new or current customers. We don’t think it is likely that other games can contribute significantly to our mission.”


What will the future regulation of the Dutch lottery market look like?

Dennis van Breemen (Ministry of Security and Justice): “The current situation will be frozen until January 2017. There will be a reduction of the mandatory contribution rate of charity lotteries, from 50% to 40% of revenue. After January 2017, there will be room for additional charity lotteries. Online lotteries, once the Dutch remote gaming market will be regulated, will need a specific lottery, not iGaming license.”

“Additionally, new charity lotteries must:

  • be suitable and attractive to players and charities;
  • protect consumers;
  • provide for an apparent demand;
  • contribute at least 40% of revenue to charity;
  • ensure that its contributions are earmarked for purposes of general interest that have broad public support in the Netherlands;
  • only make necessary costs.”


Looking at Denmark, to what extent will remote gaming be a threat to Dutch lottery revenues?

Morten Rønde (Danish Online Gambling Association): “Many of you are familiar with the image of Alexander Rinnooy Kan showing a Dutch parliamentary commission that the charity contributions of lottery Danske Spil declined by more than 20% following the regulation of the Danish remote gaming market. This number is absolutely wrong.”

“Because of changes in tax rates and different accounting methods, it is impossible to compare numbers from before 2012 to numbers from after that date. In reality, the decline was less than 10%.”

“Moreover, even this decline is atypical. In other regulated European markets, lotteries are doing just fine. The fact of the matter is that Danske Spil has been focusing almost exclusively on the newly opened remote gaming market, including a significant shift in advertising budget away from its lottery toward iGaming.”