P a g e 1. SUPERVIVO Lottery System. Patents and Trademarks Pending. World s Best Odds. Information Memorandum

Transcription

1 P a g e 1 SUPERVIVO Lottery System Patents and Trademarks Pending World s Best Odds Information Memorandum by Finvest Limited (NZ Company number ) 20 October 2012

2 P a g e 2 Index Paragraph Subject 1 Introduction 5 History 13 Types of Lotteries 30 Lottery Odds 37 Lotteries around the World 42 The SUPERVIVO Lottery System - World s best odds 45 Background Prior Patented Invention 50 New Lottery System - SUPERVIVO 51 To play is easy 61 The Odds of Winning in a Weekly Draw 63 Incorporation of a Super Draw 67 Lottery Integrity Random allocation of Super Draw Numbers 69 Super Draw Prizes 70 The Odds of Winning Super Draw 76 Explanation CHARTS 78 Patent Applications 79 The International Market and its size 79 Sellers 82 Gaming Organisations 92 Ticket Resellers 96 Getting the SUPERVIVO Lottery System to market Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 CHARTS No.1 CHARTS No.2 Lottery Mathematics from Wikipedia The Lotter s best picks - The Smart. The Lotter s biggest declared jackpots The Big. Explanation of SUPERVIVO System one phase straight to a winner. Assessment of International lottery Market One Phase Game Straight to a Winner Two Phase Game Selected number to Game/TV Show

3 P a g e 3 Introduction 1. The SUPERVIVO lottery system is a new type of lotto game. 2. SUPERVIVO has significant flexibility. It can be played in either one or two phases, the second being a phase where an element of excitement and suspense can be introduced possibly in a short TV game show. 3. This information memorandum: provides background material on existing lotto games; details the SUPERVIVO lottery system; considers (from a players perspective) the odds of winning, and considers the international lotto market. 4. In considering the odds, it is believed that the SUPERVIVO system has the World s Best Odds. History 5. A short history of lotteries and their emergence and uses around the World is set out below. 6. The first recorded signs of a lottery are keno slips which date from the Chinese Han Dynasty between 205 and 187 B.C. These lotteries are believed to have helped fund major government projects such as the Great Wall of China. The first known European lotteries were held during the Roman Empire. 7. The first known lottery to offer tickets for sale with prizes was in the 15 th century. In 1449 in Milan, Italy, a lottery was held to finance the war against the Republic of Venice. 8. By the beginning of the 20 th century, most forms of gambling, including lotteries and sweepstakes, were illegal in many countries, including the USA and most of Europe. However, in the 1960 s, casinos and lotteries began to appear throughout the world as a means to raise revenue - in addition to taxes. 9. Modern lotteries began in Australia. The state of Queensland introduced the Queensland State Lottery of Australia in 1917 and was the first lottery to start operations in the 20 th century. In 1931 the United States legalized lotteries by passing the Lotteries Act. 10. Lotteries were also used to fund causes. For example, in the United States the legalization in 1931 of lotteries was for the initial purpose of funding hospitals during the Great Depression. In 1957, Australia commenced selling tickets in the Opera House Lottery, which was to fund the Sydney Opera House. But it wasn t until the 1990 s that national lottery games were introduced throughout Australia.

4 P a g e The New Zealand Lotteries Commission was founded in It operates as a Crown Entity under the Gambling Act The United Kingdom National Lottery was established after New Zealand had established its own. It was established in 1994 by the then Prime Minister, John Major. It is regulated in the UK by the National Lottery Commission, and is currently operated by the Camelot Group. Types of Lotteries 13. Lotteries come in many formats. For example, prizes can be a fixed amount of cash of goods, or a fixed percentage of the receipts. A popular form of a percentage draw is the draw where lottery organizers promise that the prizes will be 50% of the revenue. 14. Lotteries based on paying out a fixed percentage of receipts are often referred as being based on the pari-mutuel system, a French word meaning that the jackpot is based on the amount of tickets sold and not a fixed amount. 15. Lottery games are generally classified into 4 categories as set out below: a. One-Number Games b. Multi-Number Games c. Multi-Number Games with two sets of numbers, and d. Keno type games One-Number Games 16. These are games where a player selects just one number with either 3 digits or 4 digits. A few territories, including some US states, have introduced a 5 digit lottery game. 17. A 3 digit game involves selecting a number from 000 to 999 and is often referred to as Cash 3; or Pick 3; or Play 3; or Daily 3. An example number is A 4 digit game involves selecting a number from 0000 to 9999 and is often referred to as Cash 4; or Pick 4; or Play 4; or Daily 4. An example number is In both a 3 and 4 digit game, a player can choose to play the selected number as a Straight (exact) match or as a Box (any). When a Straight match is selected, the player bets on the numbers coming in the exact order. If a Box play is elected, the player bets on the numbers arriving in any order. 20. Besides Straight and Box, there are also other play types such as combo, front pair, back pair, and split pair.

5 P a g e 5 Muti-Number Games 21. In a multi-number game, a player selects 4, 5, or 6 numbers from 1 to a certain maximum specified by the game. 22. Multi-number games are usually denoted by the abbreviation n/n, which means that a player has to select n numbers from 1 to N. A common multi-number game is the classic or commonly played lotto, a 6-number game denoted by 6/49, where a player selects 6 numbers from 1 to Usually it does not matter what order a player selects the numbers. 24. Usually prizes commence being awarded to those players who get 2 or 3 numbers correct. For a player that gets all the numbers correct, that player wins the jackpot. 25. Often, in addition to the n numbers, another number is drawn from the same set of numbers as a bonus ball. Its only effect usually is to increase the amount of lower prizes to be distributed to the players and bonus balls have no effect on the outcome of winning the jackpot. Multi-Number Games with two sets of numbers 26. Multi-Number Games with two sets of numbers are games where players make selections from two sets of numbers. 27. They are denoted by the abbreviation n/n + m/m, which means that a player has to select n numbers from 1 to N (in any order) from the first set, and m more numbers from 1 to M from the second set. Most multi-number games with two sets of numbers that are played in the world, are played by selecting only one number from the second set (i.e., m = 1). The number selected from the second set is usually called the Mega Ball, or the Extra Ball, or the Power Ball. 28. An example of the multi-number game with two sets of numbers is the New Zealand Power Ball (6/40 + PB 1/10). Another example is the United States Power Ball (5/59 + PB 1/35). Keno type games 29. Keno type games are basically multi-number games, where the player selects 10 numbers from 1-80 or 82. The difference from multi-number games is that the game draws double the numbers that a player selects i.e. if a player selects 10 numbers, then 20 are drawn.

6 P a g e 6 Lottery Odds 30. The probability of winning a lottery jackpot can vary widely depending on the lottery design, and are determined by several factors, including the count of possible numbers, the count of winning numbers drawn, whether or not order is significant, and whether drawn numbers are returned for the possibility of further drawing. 31. In a simple 6 from 49 lotto (6/49), a player chooses six numbers from 1 to 49 (no duplicates are allowed). If all six numbers on the player s ticket match those produced in the official drawing (regardless of the order in which the numbers are drawn), then the player is a jackpot winner. For such a lottery, the chance of being a jackpot winner is 1 in 13,983, However, in a 6/49 lottery, it was a requirement that the six numbers be chosen in the order in which the numbers are drawn, then the odds of being a jackpot winner deteriorates significantly, to 1 in 10,068,347, The United States Mega Millions lottery is a compulsory extra ball lottery. 5 numbers are drawn from a group of 56 and 1 extra number is drawn from a group of 46 (5/56 + 1/46). A player must match all 6 balls to win the jackpot prize. The chance of winning is 1 in 175,711, Italy s SuperEnalotto requires players to match 6 numbers out of 90 (6/90). The chance of winning the jackpot is 1 in 622,614, And Italy s Super Star lottery requires players to match 6 numbers out of 90 and 1 extra number from a group of 90 (6/90 + 1/90). The chance of winning the Super Star lottery is 1 in 56,035,316,700 (i.e. 1 in 56 billion). 36. Appendix 1 contains a copy of Lottery Mathematics from Wikipedia, which details the calculations required to determine the odds.

7 P a g e 7 Lotteries around the World 37. Examples of lotteries from around the world are set out in the table below. The information has primarily been sourced from the web site of the Lotter. Tax on winnings is approximate. Country/Name Type Odds of Winning lowest prize Australia 6/45 Saturday plus 2 bonus balls Australia 6/ Wednesday plus 2 bonus balls 1 in 211 Australia 5/45 + PB 1/45 Match 2 + PB Power Ball 1 in 556 Australia 7/ Oz plus 2 bonus balls 1 in 87 Austria 6/45 Match plus 1 bonus ball 1 in 16 Belgium 6/45 Match plus 1 bonus ball 1 in 64 Brazil 6/60 Match 4 Mega-Sena 1 in 2,332 Brazil 6/60 Match 4 Mega da Virada 1 in 2,332 Brazil 6/50 Match 4 Dupla Sena 1 in 1,120 Brazil 5/80 Quina 1 in 866 Canada 6/49 Match BC 49 plus 1 bonus ball 1 in 81 Canada 6/45 Ontario - Lottario Canada Ontario Ontario 49 Jackpot is set at $1m per draw Canada 649 (created and operated by the ILC in 1982) Canada Max plus 1 bonus ball 6/49 plus 1 bonus ball 6/49 plus 1 bonus ball 7/49 plus 1 bonus ball Odds of winning 1 st Prize 1 in 35 1:8,145,000 0% 1 in 23 1 in 57 Match in 81 1 in 8 1:8,145,000 0% 1:54,979,156 0% 1:45,379,620 0% 1:8,145,060 0% 1:8,145,060 - I:50,063,856 0% I:50,063,856 0% I:15,890,700 0% I:24,040,016 0% 1:13,983,816 1:4,072,530 1:13,983,816 0% 1:13,983,816 0% 1:28,663,528 0% Tax on winnings

8 P a g e 8 Country/Name Type Odds of Winning lowest prize Europe EuroJackpot (commenced 2012 over 9 Countries) Jackpot starts at 10m and max of 90m Europe EuroMillions (commenced 2004 over 9 Countries) Jackpot max of 190m Finland (Minimum Jackpot 700,000) Finland Viking (Played in 8 countries) France Germany Greece Hong Kong Mark Six (founded by HK Jockey Club in 1975) Ireland Israel New 5/50 + 2PB 2/8 Match PB 1 in 80 5/50 + 2PB 2/11 Match PB 1 in 157 7/39 plus 1 bonus ball in 54 Odds of winning 1 st Prize Match 5 + 2PB 1:59,325,280 Match 5 + 2PB 1:116,531,800 1:15,380,937-6/48-7/49 + 1/10 Match 2 1 in 16 6/49 + 1/10 plus 2 bonus balls 1 in 61 6/49 plus 1 bonus ball 1 in 57 6/49 plus 1 bonus ball 1 in 57 6/45 plus 1 bonus ball 1 in 45 6/37 + 1/7 1 in 30 Tax on winnings 0% 0% 1:19,068,840 0% 1:139,838,160 0% 1:13,983,816 10% 1:13,983,816-1:8,145,000 0% 1:18,598,272 25% on amts above NIS5000

9 P a g e 9 Country/Name Type Odds of Winning lowest prize Italy 6/90 Match 2 SiVince Tutto 1 in 22 Drawn monthly, if no winner, then prizes paid out to secondary division Italy SuperEnalotto If no winner, then runs a Jackpot Italy SuperStar (commenced 1997) Japan 6 New Zealand Power Ball Poland Romania Russia Gosloto 6/45 (founded 2003 and privately run by Orglot Limited, supported by Russian Govt. Partner is Intralot. Minimum Jackpot is RR10m, or US$311,000) 6/90 plus 1 bonus ball 1 in 327 6/90 + 1/90 Match 0 + PB 1 in 138 6/43 Plus 1 bonus ball 1 in 39 6/40 + PB 1/ in 363 6/49 1 in 57 6/49 1 in 57 6/45 Match 2 1 in 7 Odds of winning 1 st Prize Tax on winnings 1:622,614,630 6% on amts above 500 1:622,614,630 6% on amts above 500 Match 6 + PB - 1: 56,035,316,700 1:6,096,454-1:38,383,800 0% 1:13,983,816 10% 1:13,983,816 25% 1:8,145,060 13%

10 P a g e 10 Country/Name Type Odds of Winning lowest prize Russia Gosloto 7/49 (founded 2003 and privately run by Orglot Limited, supported by Russian Govt. Partner is Intralot. South Africa (played by 82% of population) South Africa Powerball Spain Bono Spain El Gordo Minimum Jackpot 5 million Spain La Primitiva (began in 1763 as a match 5/90, running for 100 years, and then returned in 1985) 7/49 1 in 22 6/49 plus 1 bonus ball 1 in 57 5/45 + 1/20 Match 1 + PB 1 in 53 6/49 plus 1 bonus ball 1 in 57 5/54 + 1/0-9 Match 0 + PB 1 in 10 6/49 plus 1 bonus ball 1 in 57 Odds of winning 1 st Prize 1:85,900,584 13% 1:13,983,816 0% 1:24,435,180 0% 1:13,983,816 0% 1:31,625,100 0% 1:13,983,816 0% Tax on winnings Sweden Sweden Viking Switzerland Turkey 6/49 Turkey Super 6/54 7/35 plus 4 bonus ball Match 4 1 in 59 6/48 plus 2 bonus ball 1 in 53 6/45 plus 1 bonus ball 1 in 45 6/49 1 in 57 6/54 1 in 75 1:6,724,520 0% 1:12,271,512-1:8,145,060 35% 1:13,983,816 0% 1:25,827,165 0%

11 P a g e 11 Country/Name Type Odds of Winning lowest prize United Kingdom 6/49 National Lottery plus 1 bonus ball 1 in 57 United Kingdom 5/50 + 2/11 Match 2 EuroMillions UK 1 in 23 United Kingdom 5/39 + 1/14 Match 0 + PB Thunderball 1 in 29 United States 5/39 + 1/19 Match 0 + PB Hot United States Mega Millions United States Power Ball Arizona The Pick California Super Colorado (described by the Lotter as having exceptional winning odds Connecticut Classic Florida Illinois Indiana Hoosier Kansas Super Kansas Cash Louisiana Massachusetts Megabucks Michigan Classic Missouri 1 in 39 5/56 + 1/46 Match 0 + PB 1 in 75 Odds of winning 1 st Prize 1:13,983,816 0% Match PB 0% 1:116,531,800 1:8,060,598 0% Tax on winnings 1:10,939, % 1:175,711,536 34%, but 30% -for non resident 1:175,223,510 36% 5/59 + 1/35 Match 0 + PB 1 in 56 6/44 1 in 42 1:7,059,052 36% 5/47 + 1/27 Match 0 + PB 1 in 49 6/42 1 in 37 6/44 1 in 42 6/53 1 in 71 6/52 1 in 67 6/48 Match 2 1 in 7 5/32 + 1/25 Match 1 + PB 1 in 58 6/40 1 in 32 6/49 1 in 57 6/47 1 in 50 6/44 1 in 42 1:41,416,353 30% 1:5,245,786 34% 1:7,059, % 1:22,957,480 30% 1:20,358,520 30% 1:12,271,512 30% 1:5,034,400 30% 1:3,838,380-1:13,983,816 30% 1:10,737, % 1:7,059,052 29%

12 P a g e 12 Country/Name Type Odds of Winning lowest prize New Jersey 6/49 Pick Six New York Sweet Million Ohio Classic Oregon Megabucks Vermont Megabucks Plus Washington Wisconsin Megabucks 1 in 57 6/40 1 in 32 6/49 1 in 57 6/48 1 in 53 5/41 + 1/6 Match 2 1 in 13 6/49 1 in 57 6/39 [?] 1 in 29 Odds of winning 1 st Prize 1:13,983,816 30% Tax on winnings 1:3,838, % 1:13,983,816 31% 1:12,271,512 30% 1:4,496,388 31% 1:13,983,816 30% 1:6,991, % 38. The Lotter s web site also sets out for its lotto players its analysis of the best cost/benefit ratio of lotteries in the world. When making these rankings, the Lotter states that it takes into account the size of the jackpot in relation to the taxes a winner would have to pay, the odds of winning and the price of a ticket. Appendix 2 contains a copy of the Lotter s picks as on 14 October Of note in the rankings, showing that the biggest jackpot does not means the best overall play, is: [1] - Australia Saturday - Jackpot of A$4,000,000 odds 1:8,145,000 [10] - Australia Wednesday lotto - Jackpot of A$1,000,000 odds 1:8,145,000 (but worse odds of winning a minor prize) [11] - New Zealand s Powerball - Jackpot of NZ$11,000,000 odds 1:38,383,800 [19] - United States Mega Millions - Jackpot of US$61,000,000 odds 1:175,711,536 [20] was the Europe Euro Millions - Jackpot of 54,000,000 odds 1:116,531,800 [29] was UK Thunderball - Jackpot of 500,000 odds 1:8,060, When commenting on the Australian Saturday, the Lotter states on the Smart, top spot is usually held by the Australian Saturday thanks to the combination of the tax-free jackpot, the entering fee is reasonable, there are favourable odds of winning and the guess range is only The Lotter s web site also sets out its rankings in respect of the biggest declared Jackpots. Appendix 3 contains a copy of the Lotter s rankings as at 14 October 2012.

13 P a g e 13 The SUPERVIVO Lottery System World s Best Odds 42. Like lotto, the SUPERVIVO lottery System is a game of chance. But it operates differently to other lottery systems. It operates by using the outcomes of the players choices in the game itself, to determine the outcome of the lottery. Because it utilizes players choices, the SUPERVIVO lottery system can always get to a winning result i.e. it can guarantee a winner. 43. Because it can always get to a first division winner, the SUPERVIVO lottery system has the World s best odds. 44. The SUPERVIVO lottery system has flexibility and can be tailored to reflect the size and nature of the market in which it is offered for play. Broadly, it can be played in either one or two phases. One Phase: it is played as a one phase game, with a winner guaranteed and determined on closure of the game. or Two Phases: it can be played in two phases, with the first phase determining a select number of final players (say 9), and the second phase involving those final 9 players competing to be the winner - possibility in a short TV game show with elements of excitement and suspense. Background Prior Patented Invention 45. Jim Piper, a New Zealand patent attorney, owns a patented invention involving a lottery game referred to as Sole Survivor or Last Man Standing. The USA Patent relating to that invention was granted in 2006 (US7,100,822). 46. This prior lottery system is a computer based lottery in which participants choose at least one unique number from a defined range of numbers - e.g. 1 to 1,000,000. The aim being that no one else selects the number. The participant who has the last number not selected by anyone else becomes the winner. 47. A distinguishing feature of the prior system is it can guarantee a single winner, or a guaranteed division one/jackpot winner. It can also guarantee a 2 nd and 3 rd place, and so forth.

14 P a g e On average (through computer simulations), it takes about 10x the number range to get to a sole winner i.e. it will take about 10 million numbers on a number range of 1 to 1,000,000. The odds of winning could be akin to the odds of winning a standard lotto game. The odds of winning the first division/jackpot in a 6/49 lottery is 1 in 13,983, However, while the prior lottery system (represented in US7,100,822) has its advantages and unique features, a problem with it is that without some form of intervention to accelerate the process to achieve a winner, it cannot be run to any set time frame. New Lottery System SUPERVIVO 50. The new improved system is called the SUPERVIVO Lottery System. It achieves the following: It utilises most of the prior invention; It can be run to a set time and date e.g. weekly; It can guarantee a winner, or a set number of winners; It can have a concurrent running Super Draw that is drawn once every set period e.g. 6 monthly or yearly; SUPERVIVO has the World s Best Odds in lotteries; It can be run in two phases, with the incorporation of a TV show with suspense and excitement. To play is easy 51. To play SUPERVIVO is easy. The following sets out the SUPERVIVO system played in one phase to come straight to a guaranteed winner, with draws run weekly. This is more fully set out in Appendix A player picks 6 different numbers from the number range of [1 30]: One PRIMARY number: The player picks one number from the number range of [1 30], as his/her PRIMARY number choice. Five SECONDARY numbers: The player also picks 5 other different numbers from the number range of [1 30] which may be used in later elimination stages.

15 P a g e A player s aim is to choose the PRIMARY number and each SECONDARY number on the basis that each pick will be a number that is least picked by all the participants in the lottery. 54. A player can choose his/her own numbers, or the numbers can be allocated randomly. To ensure the integrity of the weekly lottery result, the weekly numbers from each week s lottery cannot be merged at any time into any combined set of numbers until after that weekly draw has been closed. Once a weekly draw has been closed it cannot be reopened. This ensures that no party can identify what numbers, when combined, are less nominated than other numbers. In the alternative, so as to further ensure the integrity of the lottery result, all numbers could be by way of random allocation. 55. For example, if number 13 is the PRIMARY number that is least picked by all the participants in the lottery, then all participants that picked 13 as their PRIMARY number are winners and each will: receive a minor prize; and receive a free entry into Super Draw; and proceed further into further elimination stages using their SECONDARY numbers, with the opportunity to earn further prizes, including the first prize. 56. When proceeding further, all those participants that picked the number 13 will be subject to a computer analysis of their other 5 SECONDARY numbers. 57. The remaining 5 SECONDARY numbers are then used, in their chosen order, to determine which of the initial winning participants who had all picked the number 13 as their PRIMARY number, are to be eliminated. Ultimately one participant avoids elimination and becomes the last man standing, winning the first prize. 58. This elimination process is achieved by looking at each of the participants 5 SECONDARY numbers, in their chosen order, and calculating how many times each of those 5 SECONDARY numbers were picked by all the participants in the lottery/game. 59. Those participants that have the 1 st SECONDARY number that is the least picked are not eliminated and proceed to the next phase of eliminations. If the eliminations and winner/s can t all be effected by using the same process in respect of the 2 nd SECONDARY number, then the 3 rd SECONDARY number is used, and so on, until the required eliminations are achieved and the winner is determined. Further prizes are paid out during the elimination processes. 60. The major or first prize is awarded to the winner/s.

16 P a g e 16 The Odds of Winning in a Weekly Draw 61. The odds of winning a prize in the weekly draw in the first instance correctly choosing the weeks winning PRIMARY number is 1 in The odds of winning first prize in a weekly draw, is equal to the number of participants in that week s lottery. If there are 500,000 tickets/players in the week s lottery, the odds of winning first prize is 1 in 500,000. Incorporation of a Super Draw 63. The SUPERVIVO lottery is proposed to include a concurrent running Super Draw, that is to be drawn once every set period e.g. 6 monthly or yearly at no cost to eligible participants. 64. The Super Draw involves the same processes of elimination as applicable to the weekly draws. 65. A player s participation in the Super Draw is only achieved by: Purchasing a ticket in a weekly draw; and Correctly picking a winning PRIMARY number in a weekly draw. 66. Limiting the participation in Super Draw to only those players that correctly pick a winning number in a weekly draw greatly enhances for those players their chances of winning SUPER Draw. And the odds of becoming a Super Draw player are not onerous as the odds are 1 in 30 every time a weekly draw is played with one entry ticket. The number of tickets/entries a participant can have in Super Draw is based on how many times a participant correctly chooses the winning PRIMARY number in one or more of the weekly draws. Lottery Integrity - Random Allocation of Super Draw Numbers 67. The Super Draw numbers are randomly allocated. They are allocated only to those players who correctly chose a winning PRIMARY number in a weekly draw. Those random numbers comprise, as they do for the weekly draws, 1 PRIMARY number and 5 SECONDARY numbers. This random allocation is to ensure that no participant can stipulate what Super Draw numbers he or she wants and to protect the integrity of the later Super Draw result. 68. In addition, to further ensure the integrity of the later Super Draw lottery result, the Super Draw numbers allocated from each week s lottery cannot be merged at any time into any combined set of numbers until after the last weekly draw (prior to the Super Draw) has been closed and concluded. This is to further ensure that no party can identify what numbers, when combined, are less nominated than other numbers.

17 P a g e 17 Super Draw Prizes 69. The first prize available for the winner of the Super Draw will be significantly higher than the weekly draw. An example of the Prizes for both a weekly draw and a yearly Super Draw is set out in Appendix 4 (at pages 8 and 11). Using this example, this shows a weekly first prize of $1.25 million and a Super Draw prize of $23.5 million. The Odds of Winning Super Draw 70. The odds of winning a prize in Super Draw is dependent on the number of entries a participant has in Super Draw i.e. the number of times a participant enters weekly draws and correctly chooses the winning PRIMARY number in those weekly draws. 71. Odds of winning a minor prize in Super Draw: For a participant that has only one entry into Super Draw, the odds of winning the minor prize in Super Draw is 1 in The odds of winning a minor prize get shorter for each additional entry into Super Draw that a participant has. A participant with 10 entries into Super Draw comprising 10 different PRIMARY numbers has odds of at least 1 in 3 of winning a prize. 73. Odds of winning first prize in Super Draw: The odds of winning the first prize in Super Draw - for the participant with only one entry in Super Draw - must be no more than the sum total of the number of tickets/players in each week s lottery, divided by For example, if there are on average 500,000 tickets/players in each week s lottery, and the weekly lotteries are run for 50 weeks prior to Super Draw, then the odds of winning first prize in Super Draw is no more than 1 in 833, If a participant has 10 entries into Super Draw, the odds of winning first prize must be no more than 1 in 83,335. Explanation CHARTS 76. CHARTS 1 one phase play: sets out an overview of how the SUPERVIVO System works in a one phase situation straight to a winner, using a number range of CHARTS 2 two phase play: sets out an overview of how the SUPERVIVO System works in a two phase situation with the first phase determining a select number of final players (say 9), and the second phase involving those final 9 players competing to be the winner - in a short TV game show with elements of excitement and suspense.

18 P a g e 18 Patent Applications 78. New Zealand Patent Applications have been filed on 15 August, 20 September and 17 October 2012 in relation to the SUPERVIVO System. These patent applications (NZ601824; NZ602537; and NZ603063) provide a worldwide option to apply for patents within 12 months of the filing dates of the applications, claiming priority from the original filing dates of these NZ applications. During the course of next year, that will occur in the relevant jurisdictions. The International Market and its size Lottery Organizations - Sellers 79. The size of the international lottery industry has been put at US$260 billion. However, this includes all lottery games, including instant games, pulltabs, 3, 4, or 5 digit games, Keno and lotto games. Accordingly, the lotto industry is only a sub-part of the overall lottery industry. 80. The North American Association of State and Provincial Lotteries (NASPL), in addition to the lottery organizations in North America, state that: Elsewhere in the world publicly-operated lotteries exist in at least 100 countries on every inhabited continent. 81. Appendix 5 contains an assessment on the International Lottery Market. This assessment is a limited one that focuses on selected countries and determines their lotto sales. An estimation for the rest of the market for lotto sales is then made. On any view, the lotto market is large. The results are summarized in the table below. Country Comments Annual lotto Sales US$ billions Australia 4.8 Canada 5 lottery corporations 3.9 France 5.0 Germany 5.1 Italy 6.9 New Zealand 0.6 United Kingdom 6.5 USA Sales by 43 US States 9.5 Total for 8 Countries US$37.4 billion Estimation for rest of World Total for World 12.6 plus US$50 billion plus

19 P a g e 19 Gaming Organizations 82. In addition to the lottery organizations that sell the tickets, there are large gaming organizations that sell technology, systems, and games to those lottery organizations. Two of the most prominent are GTECH and Intralot. GTECH Corporation 83. GTECH is headquartered in Providence, Rhode Island, USA. It maintains operations centers in Australia, Belgium, Ireland, Poland and Brazil It is owned by the Italian company, matica Group S.p.A, which itself is one of the world s largest commercial lottery operators and a market leader in the Italian gaming industry with a market capitalization of 2.9 billion (as at 15 Oct 2012). In August 2006, matica acquired GTECH in a cash transaction at a value of US$4.7 billion, including the assumption of debt. 2 According to a GTECH news release, matica, along with GTECH, now control 63% of the worldwide online lottery business. 85. GTECH is the market leader in providing technology, content, operations, and marketing solutions to government authorized gaming operators around the world. GTECH operates in 27 US jurisdictions and 55 countries around the world, and has 5,000 employees. Its operations include software and systems design, game development, and marketing services; point of sale ticket vending machines, and video lottery terminal manufacturing; ticket printing and design services; and local area network/wide area network communications. The company also provides network solutions, which include bill and tax payments, prepaid cellular applications and payments, and credit card transactions. 86. GTECH s business development initiatives have included focusing on the emerging economies in Eastern Europe, Latin America and Asia Pacific. 87. Over the last several years, GTECH has made efforts to expand its business to become a gaming operator as well as a solutions provider. Northstar Lottery Group, which is 80% owned by GTECH, was awarded the first-ever private manager contract in the United States to operate the Illinois Lottery. GTECH s CEO, Jaymin Patel, led the business development team that pursued the opportunity and currently serves as Chairman of Northstar Lottery Group. 88. GTECH s full year revenues for 2011 were million, or about US$1.14 billion. 3 1 Wikipedia 2 Wikipedia 3 Wikipedia

20 P a g e 20 Intralot S.A 89. Intralot originated as a spin-off from the Intracom group, owned by the Greek billionaire Socrates Kokkalis. It originally provided infrastructure for the Greek National Lottery, under a 1999 contract, but has since expanded its operations into a worldwide market. Intralot s games library includes a variety of games such as numerical games, TV lottery games, sports lotteries, fixed odds betting, instant lotteries, pari-mutuel, video lottery, and monitor games Intralot is described as the World s #2 lottery company, second only to Italy s matica. It designs and develops hardware and software for lottery gaming systems around the world. It also operates the lotteries, including managing the games, printing the tickets, handling advertising and marketing, and controlling payments and payouts.the company has operations in more than 50 countries and in the US it manages the lotteries for 11 states Intralot s revenues for 2010 were billion, or about US$1.5 billion. Ticket Resellers 92. Generally, lottery tickets are sold by conventional retail outlets such as convenience stores, gas stations, and super markets. These retailers are paid a commission, typically in the range from 5 to 8%, depending on the lottery product being sold Over the last decade or so, various internet sites have established themselves as a gateway to the world s major or often played lotteries. It is believed that those internet sites, while essentially performing the role as a retailer, are not paid commissions by the lottery organizations. Rather, they can command a margin from their customers for the service and convenience they provide, including for example, providing research material in respect of what s on offer, the best bets and odds, and the highest Jackpots. 94. Some of these internet sites offer the opportunity for lotto players to form a syndicate, in order to increase the chances or a win. 95. Internet resellers include: thelotter.com PlayHuges.com Wintrillions.com LoveMy.com/ The Jackpot Store Limited (UK) 4 Wikipedia 5 Hoovers.com - Company Profile of Intralot S.A. 6 NSAPL Lottery Sales

21 P a g e 21 Getting the SUPERVIVO Lottery System to market 96. Getting SUPERVIVO to market is occurring by presenting the SUPERVIVO system in the following ways to: selected lottery organizations - as an opportunity to become licensed to operate the SUPERVIVO system in their territory; selected gaming or lottery organizations - as an opportunity to become licensed to commercialize (or potentially acquire for relevant territories) the SUPERVIVO system; a selected Government operator for the purpose of being granted a license to operate the SUPERVIVO system in that country. This later case will include arrangements with a gaming organization (e.g. such as GTECH or Intralot), for systems and management of the lottery. 97. For commercial reasons, matters relating to this will not be disclosed any further in this information memorandum.