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Lottery and Gambling Report Bundle

  • ID: 1081204
  • Report
  • 198 Pages
  • MECN GmbH
1 of 3


  • Admiral Sportwetten
  • Camelot
  • Fujitsu Services
  • Loto-Québec
  • SvenskaSpel
  • MORE
Lottery and Gambling Report Bundle - 2 reports at a special discounted price:
- Lottery Benchmarking and Success Factors - Benchmarks, Success Factors, and Best Practices, The Updated 3rd Edition
- Privatization of State-Controlled Gambling Operators: Only Hype or a Reality in the Near Future? - The Updated 2nd Edition"

"Lottery Benchmarking and Success Factors - Benchmarks, Success Factors, and Best Practices 3rd"

The study provides a wealth of information on lottery-specific industry benchmarks far beyond existing sales comparisons.


– Many more analyses of the Internet/interactive segments incl. product breakdown (Internet lotto, betting, ...), mobile business, active users, .... In total, the analyses of the interactive segments now make up one third of the entire report.
- For the first time we analysed the highly sensitive topic of benchmarking responsible gambling measures (e.g., age limits and verification systems, ...) and best practices.


- 2009 and 2010 data. Analyses of data from ca. 120 state/public lotteries and operators for the years 2009 and 2010.
- Sales-related benchmarks. Total sales and product-related sales (e.g., lotto, betting, instant, …) benchmarks such as per-capita sales analyses.
- Sales channel benchmarks such as number of residents and sales per outlet, interactive/Internet sales per capita, ...
- Marketing benchmarks such as marketing/advertising expenses in % of total sales, optimal media mix of the ad budget, ...
- Operating expenses benchmarks such as operating expenses in % of sales broken down into human resource (e.g., average personnel expense, sales per employee), IT and communications, and other benchmarks.
- Success factors of the lottery business – The analysis of success factors is based on an updated survey conducted among more than 40 lottery executives.
- Best practices. For each benchmark area we provide updated best practice case studies of the leading lotteries.
- In total, the report has 110 pages and more than 100 graphs/exhibits.

"Privatization of State-Controlled Gambling Operators: Only Hype or a Reality in the Near Future? - The Updated 2nd Edition"

Privatisation of state-controlled gambling operators - 2nd edition. Privatisation is becoming acceptable in the global gambling market

Detailed industry report analyzing one of the most relevant and controversial issues of state shareholders in the gambling industry - updated and revised 2nd edition (2009).

Four years ago we published our first privatisation study, which was very well received. In the past 12 months, as many new developments sparked increased interest in the market, more and more clients have asked for an updated study.

In our first report broke new ground by discussing potential privatisation of gambling operations; by now the situation has developed further and shows additional issues:

- Growing relevance of key drivers for privatisations – Ever increasing legal pressure (e.g., in most EU states), increasing liberalisation (e.g., in France), and/or tight state budgets (e.g., in the US) are putting pressure on state owners to evaluate a potential privatisation of their gambling assets.

- Drastic increase of likelihood that state gambling operations will be privatised soon – The number of experts surveyed who believe that some of the top state lotteries/operators will be privatised in the coming 2-3 years nearly doubled compared to MECN's 2005 analysis and survey.

- Several privatisations are currently being considered – In addition to perennial “hot” privatisations, such as the UK Tote and Milli Piyango, many other ones are under discussion. According to our survey, several potential privatisations are expected to be at the top of the list: Some Australian and US lotteries/operators, the Hungarian State Lottery, and La Française des Jeux, to name just a few.

- Billions are on the table – Some of the lotteries/operators that are expected to be privatised in the near future are valued in the double-digit billion dollar range.

- Privatisation is no longer limited to only one method – In the future privatisation will not necessarily mean a change in ownership of shares, …. In addition, alternative forms, such as long-term licenses that transfer responsibility for operations to private companies, are also possible.

The report includes:

- Analysis of selected potential privatisations and overview of state operators most likely to be privatised in the near future.
- Case studies of already privatised lotteries/operators.
- Valuation of relevant state-controlled gambling operators.
- Discussion of advantages, disadvantages, and options for privatisation of state-owned gambling operations.
- Many results are based on a survey of more than 50 industry experts, including representatives from state lotteries, private online operators, and financial investors.
- In total, the second edition has nearly 100 pages and 36 graphs/exhibits.
- The report is co-authored by many renowned experts, among them the investment bank Sal. Oppenheim.
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  • Admiral Sportwetten
  • Camelot
  • Fujitsu Services
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  • SvenskaSpel
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"Lottery Benchmarking and Success Factors - Benchmarks, Success Factors, and Best Practices, The Updated 2nd Edition"

Table of Contents:

1 Introduction

2 The Impact Of The Global Financial And Economic Crisis On State Lotteries
2.1 The Impact On Us Lotteries
2.2 The Impact On European Lotteries

3 Total Sales Benchmarks
3.1 Total Sales Per Capita
3.2 “Real” Market Penetration - Per Capita Sales As % Of Per Capita Income

4 Lotto Sales
4.1 Benchmarks
4.2 Success Factors – Results Of Mecn Survey
4.3 Best Practices
4.3.1 Lae - Loterías Y Apuestas Del Estado
4.3.2 Norsk Tipping
4.3.3 Lotterywest
4.3.4 Lotto Bremen
4.3.5 Irish National Lottery

5 Betting Sales
5.1 Benchmarks
5.2 Success Factors – Results Of Mecn Survey
5.3 Best Practices
5.3.1 Svenska Spel
5.3.2 Norsk Tipping
5.3.3 Danske Spil
5.3.4 Veikkaus
5.3.5 Pmu
5.3.6 Opap
5.3.7 Hong Kong Jockey Club
5.3.8 Oregon State Lottery

6 Instant Lottery
6.1 Benchmarks
6.2 Success Factors – Results Of Mecn Survey
6.3 Best Practices
6.3.1 Massachusetts Lottery
6.3.2 La Française Des Jeux
6.3.3 Lottomatica

7 Keno Sales
7.1 Benchmarks
7.2 Best Practices
7.2.1 Opap
7.2.2 Veikkaus
7.2.3 Rhode Island Lottery
7.2.4 Massachusetts Lottery

8 Vlt Sales
8.1 Benchmarks
8.2 Best Practices

9 Retail Channel - Benchmarks Related To The Retail Channel
9.1 Density Of Retail Outlets
9.2 Sales Per Retail Outlet
9.3 Retail Strategies In Comparison
9.4 Success Factors – Results Of Mecn Survey

10 Internet And Interactive Channels - Benchmarks Related To The Internet And Interactive Channels
10.1 Internet Sales
10.2 Registered Users, Sales Per User, And Other User-Related Benchmarks
10.3 Growth Rates Of Interactive Sales Of State Lotteries
10.4 Success Factors – Results Of Mecn Survey
10.5 Best Practices
10.5.1 Austrian Lotteries
10.5.2 Pmu
10.5.3 Norsk Tipping
10.5.4 Svenska Spel
10.5.5 Veikkaus
10.5.6 Kansas Lottery

11 Overall Cost Efficiency
11.1 Operating Expenses Benchmarks
11.2 Economies Of Scale In The Lottery Business
11.3 Success Factors – Results Of Mecn Survey

12 Marketing Effectiveness
12.1 Marketing Expenses Benchmarks
12.2 Success Factors – Results Of Mecn Survey

13 Human Resource Effectiveness
13.1 Personnel Expenses Benchmarks
13.2 Success Factors – Results Of Mecn Survey

14 Prizes

15 It And Data Communications Costs

16 Retailer Commission

17 Potential Public Income From Lotteries

18 Other Benchmarks

19 Methodology

20 List Of Exhibits

21 About The Authors And Contact

"Privatization of State-Controlled Gambling Operators: Only Hype or a Reality in the Near Future? - The Updated 2nd Edition"

Table of Contents:

1 Executive summary

2 Privatisation of state gambling operations – status worldwide
2.1 Introduction to privatisations
2.1.1 Definition of privatisation in the gambling market
2.1.2 From state to private ownership – a step-by-step process
2.1.3 Number of privatisations expected to increase
2.1.4 Liberalisation not equal to privatisation
2.1.5 Different views of management and shareholders
2.2 Developments driving privatisations in the gambling market
2.2.1 Increased legal and political pressure on existing gambling regulations
2.2.2 Tighter state budgets due to economic crises
2.2.3 Unlicensed Internet offerings are still successful
2.3 Key regions and sectors for privatisation
2.4 Overview of different types of state-controlled gambling operators

3 Selected potential privatisations in the near future
3.1 La Française des Jeux
3.1.1 Privatisation in view of liberalisation
3.1.2 The privatisation story so far
3.2 Privatising the Turkish lottery Milli Piyango – a never- ending story?
3.2.1 A seemingly endless privatisation process
3.2.2 Company value of Milli Piyango
3.2.3 Allocation/split of sales among licensee, players, and state after the privatisation
3.2.4 Value of the 10-year license – was the starting price too high?
3.2.5 Overview of bidders
3.2.6 The main principles of the license and regulations
3.2.7 Company profile of Milli Piyango – the national lottery
3.3 UK tote – planned for a long time and hopefully implemented soon
3.4 US lotteries – many would like a privatisation, but will it happen?
3.4.1 Federal lottery statutes – the basis for lottery operations in the US
3.4.2 The opinion of the US Department of Justice and the reactions of the US lotteries
3.4.3 Massachusetts Lottery
3.4.4 California Lottery
3.4.5 Texas Lottery
3.4.6 Illinois Lottery
3.4.7 Others
3.5 Planned privatisations Down Under - Australia
3.5.1 New South Wales Lottery
3.5.2 Tote Tasmania
3.5.3 Victoria betting
3.6 Lutrija Crne Gore - Montenegro
3.7 Loteria Electronica - Puerto Rico
3.8 Hungarian State Lottery
3.9 Others

4 Advantages of privatisation
4.1 Advantages from introducing market competition
4.2 Are state-controlled companies inefficient compared to private operators - A benchmark analysis
4.3 Cost efficiency varies widely
4.4 Private operators - putting an end to the “regressive tax”
4.5 Regulation vs. self-regulation
4.6 Freedom to choose

5 Disadvantages of privatisation
5.1 Increase in negative social externalities of gambling
5.1.1 Does privatisation lead to market expansion?
5.1.2 Does privatisation lead to increased problematic gambling?
5.1.3 Incentive schemes of private gambling operators - focus on sales and profit?
5.2 Lottery - A need for a natural monopoly?
5.3 Guarantee of a basic supply of gambling products

6 Possible options for privatisation
6.1 Overview of alternative modes of sale
6.2 Placing shares on the capital market
6.3 Trade sale to a strategic or financial investor
6.4 If selling to private companies – which buyers would be best suited?
6.5 Sale to other/foreign state-controlled gambling operators
6.6 Sale to other state-controlled bodies
6.7 51% vs. 49% - how much to sell?

7 Valuation - what are state-controlled gambling operators worth?
7.1 Methods, peer groups, and multiples for valuation
7.2 Valuation of relevant state-controlled gambling operators
7.3 Valuation using multiples approach

8 Explanation of the trade sale process
8.1 Analysis and preparatory phase
8.2 Marketing and due diligence phase
8.3 Negotiating phase
8.4 Ancillary conditions imposed by the seller in privatisation processes

9 Case studies of privatized gambling operators
9.1 UK National Lottery
9.2 OPAP
9.3 Maltco
9.4 Tabcorp
9.5 UniTAB – Tatts Group
9.6 Casinos Lower Saxony
9.7 An Post Irish National Lottery Company
9.8 South Africa – from Uthingo to Gidani
9.9 Others

10 The other way around – nationalisation of lottery operators

11 Future developments
11.1 Increase in privatisations in the near future?
11.2 Overview of state operators most likely to be privatised in the near future

12 Recommendations
12.1 Recommendations for state shareholders
12.2 Recommendations for potential investors

13 Methodology

14 Appendix

15 List of exhibits

16 About the authors and contact information

17 Related MECN reports
Note: Product cover images may vary from those shown
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"Privatization of State-Controlled Gambling Operators: Only Hype or a Reality in the Near Future? - The Updated 2nd Edition"

Companies Mentioned:

- Admiral Sportwetten
- An Post National Lottery
- Associated Supplies
- Austrian Lotteries
- Austrian Mint / MünzeÖsterreich
- Austrian National Bank
- AutototeCorporation
- BerjayaSports Toto Berhad
- BetandWin
- Black Management Forum
- Cadbury Schweppes
- California Lottery
- Camelot
- Casinos Austria
- Casinos Austria International
- Casinos Baden-Wuerttemberg
- Casinos Lower Saxony
- China Sports Lottery
- Citicorp Nominees
- CONI Czech Sports Association
- DanskTipstjeneste
- De La Rue
- De Lotto
- Dogus
- EssNet
- Far East Asset Berhad
- Fujitsu Services
- GTech
- Hotel SacherGmbH
- Ingenio
- Intralot
- Irish National Lottery
- Jockey Club of Türkiye
- JP Morgan Nominees Australia
- Koc
- La Françaisedes Jeux
- Ladbrokes
- LAELLI Investment
- LoterijanaMakedonija
- Loto-Québec
- Lottery Romania
- Lotto Bavaria
- Maltco
- Mauritius National Lottery
- Medial BeteiligungsGmbH
- MGM Mirage
- MilliPiyango
- MotswediTechnology Holdings
- MTB Private Foundation
- NAFCOC Investment Holding
- New South Wales Lotteries
- New York Lottery
- NorskTipping
- Philippine Charity Sweepstakes Office
- Players Group
- RaiffeisenbankHolding
- Rehab Lotteries
- Royal Mail Enterprises
- Sazka
- Schellhammer& Schattera
- Scientific Games
- Sisal Group
- SociétéduCheval Français
- Sports Toto Malaysia
- SvenskaSpel
- Swisslos
- Szerencsejáték
- Tabcorp
- Tattersall's
- ThalesElectronics
- UK tote
- Unitab
- UthingoManagement
- VeikkausOy
- VirginWestLotto
- Westpac Custodian Nominees
- West Virginia Lottery
- William Hill
- Youbet
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