Game Innovation. Presented by Barry Lee Senior Manager Business Solutions Magnum Corporation Sdn Bhd Malaysia. APLA 2012, Sydney 1
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1 Game Innovation Presented by Barry Lee Senior Manager Business Solutions Magnum Corporation Sdn Bhd Malaysia APLA 2012, Sydney 1
2 Game Innovation Contents 1. Lottery Landscape in Malaysia 2. The most popular game - 4D 3. Why Innovate? Why New Games? 4. Game Innovation Magnum s Experience 5. Lessons Learnt APLA 2012, Sydney 2
3 Lottery Landscape in Malaysia Highly Regulated Environment Regulatory & Religious Constraints No Sales Promotions or Advertisements Strictly Land-Based. Online Prohibited Selling conducted in Dedicated Retailer Outlets Only Can t operate in Shopping Malls, Transport Hubs, Newsstands etc Outlets must not be within sight of Places of Worship, Schools etc APLA 2012, Sydney 3
4 Lottery Landscape in Malaysia 3 National Lotteries APLA 2012, Sydney 4
5 Lottery Landscape in Malaysia Population of 29 million 33% are Non-Muslims 54% are of Legal Playing Age Addressable Target: Approx. 5 million+ Players APLA 2012, Sydney 5
6 Lottery Landscape in Malaysia Types of Games Available Before Sept 2009 Numbers games 3D, 4D, 5D and 6D Lotto games 6/42, 6/49 and 6/52 Passive game Big Sweep (7D plus Powerball) APLA 2012, Sydney 6
7 Lottery Landscape in Malaysia Games offered by the 3 Lotteries Before Sept 2009 Sports Toto had 4D, 5D, 6D, Lotto 6/42, 6/49 and 6/52 Damacai had 3D, 4D and Big Sweep Magnum had only 4D A game all 3 offer! APLA 2012, Sydney 7
8 Lottery Landscape in Malaysia Others 4D Total Lottery Revenues from 3 Lotteries Total Revenues from all Games Revenue from 4D alone 9 Billion 7 Billion APLA 2012, Sydney 8
9 The Most Popular Game 4D Why is 4D so popular? Mystique surrounding Numbers Meanings in 4D Numbers! Customers have their own favourites As a result, They fear missing out if they don t buy! APLA 2012, Sydney 9
10 The Most Popular Game 4D How to Play? Similar to Pick 4 game 1. Picks a 4-digit number from 0000 to 9999, e.g. 6652, 1234, 0070, 0120 etc. 2. Spend minimum $1 for one game. 3. You win if the 4-digit number picked matches one of the 23 4-digit numbers drawn. APLA 2012, Sydney 10
11 The Most Popular Game 4D Types of Plays and Prizes Pick 4 Ways of Example 1st Prize 2nd Prize 3rd Prize Special Consolation Plays Pays Pays Pays Prize Prize Pays Pays Straight 1234 $2,500 $1,000 $500 $180 $60 Match 4 numbers in exact order Straight 4-Way Box 1112 $625 $250 $125 $45 $15 Match 4 numbers, of which 3 are the same, in any order 6-Way Box 1122 $417 $167 $84 $30 $10 Match 4 numbers that consist of two pairs of identical numbers in any order 12-Way Box 1123 $209 $84 $42 $15 $5 Match 4 numbers, of which 2 are the same, in any order Boxed 24-Way Box 1234 $105 $42 $21 $8 $3 Match 4 numbers in any order APLA 2012, Sydney 11
12 Why Innovate? Why New Games? Why Innovate? Why New Games? Lotteries worldwide are facing the following challenges: Increased Competition Changing Demographics Changing Player Preferences APLA 2012, Sydney 12
13 Why Innovate? Why New Games? Why Innovate? Why New Games? In Magnum s case, apart from challenges just mentioned, Why new games? We had only one game while competitor had six! Why innovate? To regain market leadership, principally from the illegal operators! APLA 2012, Sydney 13
14 Game Innovation - Magnum s Experience APLA 2012, Sydney 14
15 Game Innovation - Magnum s Experience What Game to Launch? A game that: Appeal to Existing Players Appeal to New Players and Broader Demographics Has Life-Changing Appeal Illegal Operators cannot Imitate APLA 2012, Sydney 15
16 Game Innovation - Magnum s Experience Our New Copyrighted Product, first of its kind in the world, was launched on 23 September 2009 APLA 2012, Sydney 16
17 Game Innovation - Magnum s Experience Important Features of the Game Taking inflation into consideration, priced boldly at $2 instead $1! So that jackpots can grow quickly! More prizes and easier to win! So more players can experience winning! Exciting Cascading feature! Making winning millions very easy indeed! APLA 2012, Sydney 17
18 Game Innovation Magnum s Experience How To Play? 1. Pick two instead of one 4-digit numbers from 0000 to 9999, e.g or Spend min $2 for one game. 3. You win Jackpot 1 if the two 4- digit numbers picked are drawn as the winning numbers of any two of the three top prizes. APLA 2012, Sydney 18
19 Game Innovation Magnum s Experience Draw Results of 4D Jackpot 1. Share the Same Draw Results used for 4D game 2. Capitalizing on Popularity of 4D game 3. Positioned as Turbo-Charged Version of 4D game APLA 2012, Sydney 19
20 Game Innovation Magnum s Experience 2 Ways of Plays Standard Bet Pick two 4D Numbers System Bet Pick three or more 4D Numbers For example: System 7 has 21 pairs of 4D Numbers System 10 has 45 pairs of 4D Numbers APLA 2012, Sydney 20
21 Game Innovation Magnum s Experience Prizes for 4D Jackpot 5 Divisions of Prizes to be Won Division Prize Odds 1 Jackpot 1, Min $2 million 16.67mil 2 Jackpot 2, Min $100, mil 3 $168 1,667 Min $10 million when there is a Cascade! 4 $ $ APLA 2012, Sydney 21
22 Game Innovation Magnum s Experience What is Cascade? Effects of Cascade Cap Jackpot 1 at $30mil Responsible Gaming! Jackpot 2 > $10 mil! Easy to win $millions! Buying Frenzy!!! In a Responsible Way! APLA 2012, Sydney 22
23 Draw Sales (RM Mil) Game Innovation Magnum s Experience Magnum's 4D Jackpot vs Competitor's 3 Lotto Games $6.00 $5.00 Lotto 6/58 Lotto 6/55 Lotto 6/52 Lotto 6/49 4D Jackpot outperforms competitor s 3 Lotto games combined! Lotto 6/42 $4.00 Magnum's 4D Jackpot $3.00 $2.00 $1.00 $ Sep Nov Jan Mar-10 1-Jun-10 1-Aug-10 5-Oct-10 5-Dec-10 6-Feb-11 6-Apr-11 8-Jun-11 Draw Date 13-Aug Oct Dec Feb Apr Jun Aug-12 APLA 2012, Sydney 23
24 Game Innovation Magnum s Experience Performance of 4D Jackpot Immediate Market Acceptance Well Received by Existing Customers 500mil Sales in 1st Full Year of Operation Appeal to Broader Demographic Attracted New Customers Attracted Ladies, Gen-X and Gen-Y Increased Revenue Increased No. of Customers Increased Overall Sales Sports Toto Launched The Same Game on 11 Jun 2011 Enjoyed the same level of success Damacai also launched The Same Game on 23 Nov 2012 APLA 2012, Sydney 24
25 Game Innovation Lessons Learnt What Did We Learn? Analyze Your Strengths & Weaknesses Leader in 4D but lack Jackpot Game Know Your Customers Customers prefer 4D but also attracted to Jackpot Satisfy Customer Need Give them 4D with Jackpot APLA 2012, Sydney 25
26 Game Innovation Thank You Terima Kasih 谢谢 Nandri APLA 2012, Sydney 26
27 Game Innovation Magnum s Experience How to Win Division 1 or Jackpot 1? Examples: Win Jackpot 1 Odds: 1 in 16.67mil APLA 2012, Sydney 27
28 Game Innovation Magnum s Experience How to Win Division 2 or Jackpot 2? Examples: Win Jackpot 2 Odds: 1 in 1.67mil APLA 2012, Sydney 28
29 Game Innovation Magnum s Experience How to Win Division 3? Examples: Win $168 Odds: 1 in 1,667 APLA 2012, Sydney 29
30 Game Innovation Magnum s Experience How to Win Division 4? Examples: Win $68 Odds: 1 in 500 APLA 2012, Sydney 30
31 Game Innovation Magnum s Experience How to Win Division 5? Examples: Win $28 Odds: 1 in 500 APLA 2012, Sydney 31
32 The Most Popular Game 4D APLA 2012, Sydney 32
33 The Most Popular Game 4D APLA 2012, Sydney 33
34 The Most Popular Game 4D APLA 2012, Sydney 34
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