Responsible Marketing HKJC Best Practice

Responsible Marketing HKJC Best Practice Robert Wong The Hong Kong Jockey Club 20 October 2015 1

HKJC is the sole authorized operator of 3 wagering entertainment in Hong Kong US$ 24 billion turnover 2

... returning surplus for the betterment of Hong Kong for 130 years >US$ 1 billion charity donation in last 3 years US$ 2.6 billion tax last year 24,800 employees US$ 39 million funding on gambling-related education & treatment via Ping Wo Fund since 2003 3

First lottery in Asia attaining WLA RGF Level 4, re-accredited in 2015 Game Design Employee Training 4

Responsible marketing approach at HKJC Internal Embed RG as culture Protect underage Prospect, lottery player, betting customer Avoid excessive gambling Promote informed choice Promote green way to play HK public Create social value 5

Responsible marketing approach at HKJC Internal Embed RG as culture Protect underage Prospect, lottery player, betting customer Avoid excessive gambling Promote informed choice Promote green way to play HK public Create social value 6

Embed RG as culture RG is a core corporate KPI at HKJC, accountable by all levels from top management to operation staff 7

Responsible marketing approach at HKJC Internal Embed RG as culture Protect underage Prospect, lottery player, betting customer Avoid excessive gambling Promote informed choice Promote green way to play HK public Create social value 8

Protect underage Stringent underage access control No retailor One guard one door Remote gaming requires opening account at betting shops with proof of age Underage reporting hotline Rejected 28,000 underage last 3 years 9

Avoid excessive gambling Stringent game design approach (WLA Best Practice) No credit betting Limit product choice 3 products, no increase for 10+ years 1 Lotto game for 40 years No VLT / scratch cards / instant games Confine In-play to football live match, limited bet types Multiple RG checkpoints on new bet type design Gam-GaRD to assess product risk 10

Avoid excessive gambling Targeted, segmented RG messages 11

Avoid excessive gambling not-to-be missed in both physical and digital channels 12

Promote informed choice Help customer especially rookies know the game 13

Promote informed choice Offer powerful fact-based analytical tools, not tips 14

Promote green way to play Embrace green element in marketing operation Upcycle waste into merchandise From paper to digital info 15

Promote green way to play Innovate digital experience to migrate customers to paperless channel - Mobile 16

Promote green way to play Digitalize physical channel - Racecourse 17

Promote green way to play Digitalize physical channel - Betting shops 18

Promote green way to play Results 61% Digital Share 1M+ 20% Active account customers Reduction in betting ticket last 5 years 19

Responsible marketing approach at HKJC Internal Embed RG as culture Protect underage Prospect, lottery player, betting customer Avoid excessive gambling Promote informed choice Promote green way to play HK public Create social value 20

Create social value Promote good cause inside TV program of live lottery draw for 40 years NGO service Target group Contact 21

Create social value Racecourse designed not only for racing, but also as landmark running track in Hong Kong Happy Valley Racecourse Popular training track for both professional and leisure runners 22

Create social value as well as adding fascinating greenery for the city Penfold Park at Shatin Racecourse Infield One of the best garden & most pet-friendly venues in HK 23

24 Create social value Betting shops not only for betting, but also serving non-betting needs of local community Caring Heart Service Multi-media theatre for local community function on non-raceday Multi-function room for public use on non-raceday

Create social value Leverage 100+ betting shops to promote community service with NGOs Elderly Health Care Day Green Day 25

All in all, taking a holistic approach is the key Internal Embed RG as culture Protect underage Prospect, lottery player, betting customer Avoid excessive gambling Promote informed choice Promote green way to play HK public Create social value 26

Thank You 27