PRESENTATION OF NORSK RIKSTOTO

Transcription

1 PRESENTATION OF NORSK RIKSTOTO CEO Harald Dørum Sales and Marketing director Haakon T. Smerud

2 The legal platform of gaming in Norway All sorts of gaming/ betting are illegal There are a few exeptions: Betting related to horse racing Sportsbetting, lotteries and bingo

3 The legal platform of Norwegian Horseracing Sport The Totalisator Act, July 1st 1927 the basis for Organizing of the Sport and the Gaming, and the Licensing The Foundations Act, May 23rd 1980 Totalizator Gaming Regulations Regulations by Odeltingsprop. nr /96 Guidelines on Marketing of Gaming Gaming Commission (Lotteritilsynet)

4 Ministry of Agriculture and Food Decide takeout rate on all betting products Approve betting rules Approve new distribution channels (e.g. WWW, mobile phone,a.o.) Formal Regulator Approves the commingling opportunities in Norway

5 Norsk Rikstoto is a Foundation Founded 1982 by the Norwegian Jockey Club (NJ) and the Norwegian Trotting Association (DNT) Objective (by The Totalizator Act of 1927) operate all totalizator gaming control the economy of the sport Support breeding of horses and the equestrian sport in Norway Financing R&D activities

6 The Horse Industry in Norway - devided organization Commercial Organization (the Sport) Rikstoto Norwegian Trotting Association (DNT) 11 tracks Norwegian Jockey Club (NJ) 1 track

7 The Sport s Organizations in Norway Norwegian Trotting Association Established 1875 A members organization: 13 regions and 179 clubs, members Objective: To develop Norwegian trotting and breading in a sound manner Headquarters at Bjerke, Oslo Norwegian Jockey Club Established 1932 A members organization Objective: Organize all activity related to breeding of Thoroughbreds Supports the breeding of thoroughbreds in Norway Headquarters at Øvrevoll, Oslo Aim is to support and develop the horse breeding in Norway as an industry

8 The Horse related Industry more than sport & gaming Trotting and Gallop Tourism, therapy and recreation Farming Riding sport Breeding Gaming and administration Goods & services

9 Rikstoto the financial engine of the industry TRACKS 5 Industry s turnover is approx. 0,6 billion - Tote is approx. 0,5 billion Represents man-years - With secondary effects man-years 10 horses makes a job! Norsk Rikstoto pays 17millions in taxes 6 The horse organizations counts > members Important employment factor Even more people are associated in hobby activities Important for teenagers contact with animals Important for the veterinary industry

10 Market share Norwegian Gaming Market 100 % 90 % 80 % 70 % 60 % 50 % 40 % Total i milliarder (inkl. www) Utenlandsk WWW Andre spill Rikstoto Norsk Tipping (inkl. Extra) Automater 30 % 20 % 10 % % Kilde: Lotteri- og stiftelsestilsynet Foreløpige tall 2008

11 One agent per citizen and we are still expanding Norway is wide So we need wide distribution Every place there is a small village s WWW

12 Governmental License System Ministry of Agriculture and Food Rikstoto 12 Totalizator Tracks (operating companies) License Licence & Regulations

13 Rikstoto is responsible for all commercial activities License for all Totalizator gaming in Norway Overall responsibility for all Totalizator gaming Rikstoto can decide number of Totalizator Race Meetings distribute Meetings on Tracks Product Mix (bets) Sales Channels (distribution) total yearly Budget of the Sport distribution of Funding in the Sport

14 The Tracks organize the daily Sport The Sport owns & runs 11 Trotting Tracks and 1 Gallop Track The Tracks are organized as Limited companies (Ltd) and independent of Norsk Rikstoto They have their own elected Board of Directors They organize the racing, promote the sport and promote betting (sales) in their region

15 The Norwegian Economic Model xx TRACKS 5 Basic philosophy: All income is equally important! Every track owns a Region Provision of all sales in their Region: On- and Off-track everybody sell on all Races on all Tracks independent of which Track is Racing Rikstoto 6 Track Track Track REGION REGION REGION 12

16 The Norwegian Economic Model xx TRACKS 5 Optimize the financial support to the sport! Provision of all sales to the tracks are divided in: Price money, dependent on type of race day Financial support to operating cost of the race days Financial support to major investments on the tracks Incentive program to support better sales in the region Rikstoto 6 Track Track Track price money REGION operating costs REGION Incentives REGION 12

17 Every Track has an Operating agreement with Rikstoto The Purpose of this Agreement is to Grant the Track right to run Totalizator Racing Regulate all the Track s Totalizator Racing & Planning Regulate the Track s Gaming Marketing in the Region Regulate the Track s Economic Planning, Budgeting and Control Regulate other business between Rikstoto and the Track e.g. IT Systems, Price money levels,

18 What do we gain by this? Predictable conditions for owners and breeders Common Brand building Common Graphical profile Scale of Economy advantages Common Sales Objectives Uniform National Sales campaigns More predictable and less complicated Budgeting Common Sponsor Strategy => National sponsor contracts

19 Vision

20 Our Marketing consept & ideas Tor s kiosk and the main actors

21 Norwegian Gaming market Percentage of the population that played different games during 2008 Lotto 53 % Flax 40 % Joker 27 % Viking Lotto 25 % Extra 19 % Tipping 12 % Rikstoto 7 % Oddsen 6 %

22 Total Gaming Market Development 2008 Mill. Euro 2008/2007 Norsk Tipping % Rikstoto % Extra % Lotteries (Excl. Flax) 60 +/- 0 % Bingo %

23 Our Distribution Tracks 8 % Commission agents 73 % Online/Internet 19 %

24 Our Distribution commission agents have a chain connection 300 are independent Within kiosk segment; Narvesen is the largest chain with 350 kiosks The second largest is Mix with 250 kiosks 300 grocery stores are distributors of Rikstoto 75 gas stations 25 others

25 Distribution strategy 2009 Goal; 250 new distributors/sales points during 2009 Strategy; develop a closer relationship with major chains and offer all new distributors/sales points DMP. Focus (take advantage of) on our strong growth in 2008!

26 DMP

27 Marketing Our mass-communication focuses on V75/Lyntoto mystery bets We introduced a new marketing consept in 2008; Tor s kiosk everything can happen in Tor s kiosk Main media are; TV, radio, web, newspaper and instore We produce both strategical and tactical material

28 Marketing strategy Long term; wide growth 2009; Further development of Tor s kiosk our consept Use a large number of communication channels to ensure that we reach our wide target group Maintain a heigh number of activity weeks approx. 15 Accomplish 2 super weeks with extra investments in media and a high level of activities throughout the country

29 Our consept Our scene is relevant it s a kiosk Target group; The Lotto player, 50/50 M/F What do we say? It s easy, you don t need any knowledge, the machine helps you pick out favorites and outsiders, remember to play before Saturday How do we say it? With humour and a in a friendly way. Strong characters. Payoff; The game that actually helps you to win

30 Our communication

31 Our communication results V75 Lyntoto ,3 % + 16,5 % 2009 (19 w) + 2,2 % + 11,1 %