Marketing the online lotto

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2 Marketing the online lotto Arsenal Lotto and The Arsenal Foundation Who are Lotto Network? How are we different? Betting product vs. lottery The power of jackpots Five steps to marketing the online lotto Q&A

3 Arsenal Lotto and The Arsenal Foundation Arsenal Football Club was looking for a way of raising more money for their charity, The Arsenal Foundation which focuses on work to motivate and inspire young people, helping them to reach their potential. Arsenal Football Club PLC is the fourth largest football club in the world. 10 million likes on Facebook, 1.8 million followers on Twitter, and a huge global fan-base. Arsenal were looking for a lottery which would engage their audience. The Arsenal Lotto has been running since September 2012 and has generated significant revenue for The Arsenal Foundation.

4 Marketing the online lotto Arsenal Lotto and The Arsenal Foundation Who are Lotto Network? How are we different? Betting product vs. lottery The power of jackpots Five steps to marketing the online lotto Q&A

5 Who are Lotto Network? Lotto Network is a brand of bookmaker MyLotto24 Ltd, Europe's leading lottery-betting provider, established in provider, established in the UK in It is also part of the Tipp24 group which was established in 1999 and is listed on the Frankfurt Stock Exchange Stock Exchange (SDAX). Lotto Network was conceived in 2011 in order to offer My Lotto 24 s very successful B2C product to B2B partners product to B2B partners in the UK.

6 High standards of compliance and corporate governance MyLotto24 ltd holds a Combined Remote Operating Licence issued by the UK Gambling Commission (Gambling Act 2005) since Audited by Ernst & Young LLP, London. PCI compliant ISO accredited.

7 Lotto Network Key Facts 31.7m The largest jackpot paid out to a single player in one lump sum 250m+ Annual billings 10m+ 200m+ 3m Bets sold each and every month Paid out in prizes since 2009 Registered customers across the network

8 The draws Draws take place on Wednesday and Saturday evenings. Players choose 6 numbers and a star number and win prizes when they match 1, 3, 4, 5, 6, and 7 numbers plus the star.

9 Marketing the online lotto Arsenal Lotto and The Arsenal Foundation Who are Lotto Network? How are we different? Betting product vs. lottery The power of jackpots Five steps to marketing the online lotto Q&A

10 How are we different? Lotto Network is not a lottery. Lotto Network is a betting product. From a player perspective is the same as a lottery. The draw is based on the outcome of the German National Lottery. What does this mean? Setting up your own successful lotto from scratch is a Catch-22 situation. In order to attract more players, you need large jackpots. In order to generate large jackpots, you need more players. Lotto Network is different even the very first player that joins a Lotto Network-powered lotto plays for our mega prizes.

11 Marketing the online lotto Arsenal Lotto and The Arsenal Foundation Who are Lotto Network? How are we different? Betting product vs. lottery The power of jackpots Five steps to marketing the online lotto Q&A

12 Lotto Network betting product Lotto Network operates under our own pools and pools and betting licences, issued by the UK UK Gambling Commission. Our jackpots are uncapped. Rollovers running into tens of millions of pounds. pounds. No cap on revenue. Society lottery Most lotteries have to complete a lengthy licence licence application and manage ongoing and timeand time-consuming administration. Jackpots are capped at 25,000 for small lotteries. No rollovers, or only very small increases in prize in prize money. Society lotteries cannot raise more than 10m per 10m per year.

13 Marketing the online lotto Arsenal Lotto and The Arsenal Foundation Who are Lotto Network? How are we different? Betting product vs. lottery The power of jackpots Five steps to marketing the online lotto Q&A

14 Jackpots and rollovers Do people really care about jackpots?

15 Graph from Office for national statistics 2012

16 Jackpot size (Millions) This graph shows the comparison between the jackpots available through small society, large society, the National Lottery and Lotto Network Draw date Small society Large society National Lottery Lotto Network

17 14/08/ /08/ /08/ /08/ /08/ /08/ /08/ /08/ /08/ /09/ /09/ /09/ /09/ /09/ /09/ /09/ /09/ /09/ /09/ /09/ /09/ /09/ /09/ /09/ /10/ /10/ /10/ /10/ /10/2013 Jackpot size (millions) 30 Jackpots are everything! New player acquisition vs. jackpot size (August 2013 October 2013) Axis Title Jackpot size New players

18 Rollover fever Arsenal Lotto player acquisition % above benchmark Jan Dec % 564% 330% 105% 34% 850,000-1m 1m - 5m 5m - 10m 10m - 15m 15m - 20m 20m - 25m

19 Marketing the online lotto Arsenal Lotto and The Arsenal Foundation Who are Lotto Network? How are we different? Betting product vs. lottery The power of jackpots Five steps to marketing the online lotto Q&A

20 STEP 1 Market when the jackpot is high

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23 STEP 2 Put product first

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25 STEP 3 Smart segmentation

26 Who is playing? CUSTOMER DEMOGRAPHIC The majority of players on Lotto Network are male (82%) and between the ages of (40%). This is a similar correlation to the expected demographic of a sports fan or student. Gender 18% Age 7% 17% 82% Female Male 36% 40% Average Lotto Network Football Database

27 Frequency Revenue

28 Active A player with a purchase or participation in a draw within the last 30 days.

29 Jackpot players 90% of player revenue in the last 90 days in draws when jackpots over 7.5m Incentive players Over 50% of player wagering in the last 90 days made up of bonuses, vouchers or free bets. Duration Playing with a multi-draw block bet for a period of a week or more. Subscription Playing with a long-term, automatically renewable bet.

30 Inactive No purchases or participation in a draw within the last 30 days.

31 Player reactivation Permanent Inactive Long-term inactive Short-term inactive

32 Revenue groups Under 35 in last 30 days in last 30 days in last 30 days Over 500 in last 30 days

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34 STEP 4 Incentivise

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36 STEP 5 Keep it fresh

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38 The partnership has helped us step-change fan engagement with the Arsenal Foundation and dramatically raise supporter donations to our good causes the unprecedented jackpot levels and simple online play only increase the appeal. Angus Kinnear Marketing Director, Arsenal Football Club

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