Growing Sustainably: An Interview with Scientific Games Lottery Marketing Strategist Chris Allen

Chris Allen, a lottery marketing and vice president of the European Scientific Games (SG), is familiar with the essence of the lottery that has evolved and is a proposal of social responsibility in the lottery industry.

Allen gave a lecture on how the SG supports the secure and sustainable growth of the lottery at the 2021 European lottery association (EL)/ World lottery association (WLA) marketing seminar. Allen, a 1 5-year veteran lottery industry, who had a degree at Leeds University in the UK, began working as a marketing analyst for evaluating the performance of instant games around the world. Currently, Allen is in charge of developing a growth strategy for major lottery companies around the world.

"It is difficult to imagine a business strategy conversation that does not include the topic of sustainability and social responsibilities, and brainstorming product innovation. There is enough reason for such initiatives.

Scientific Games European Lottery Marketing & Strategy Vice President, Chris Allen

According to data, more consumers are choosing products based on brand sustainable business practices.

CONJoint. ly conducted a survey conducted in the United Kingdom and the United States in January 2021 asked about the choice for consumers to buy products. The answer clearly shows that consumers are evaluating the following companies:

• Reduce carbon footprints and aim for carbon neutral
• Proper raw materials and parts responsibly
• Manufacture in an environmentally friendly way

"The global trend extends to all layers, taking into account the lon g-term effects of consumers for future generations and human beings on the earth."

Scientific Games European Lottery Marketing & Strategy Vice President, Chris Allen

People, Planet, Profit

In 1994, John Erkinton, a British writer known for its corporate responsibilities and sustainability, created the word "PEOPLE, Planet and Profit." "Triple Bottom Line" was published in the Harvard Business Review, proposed "a sustainable framework for corporate social, environmental, and economic impacts."

In the past quarter century, many individuals, companies, and governments have been doing a lot of things to reduce the impact of humanity on the earth. In November, the United Nations Conference (COP26) was held in Glasgow, and leaders around the world discussed how to take action towards the goal of Internet Zero up to 2030. In negotiations, the world leaders agreed to reduce fossil fuels over time and reduce emissions faster.

While it is important for governments to agree to limit emissions, COP26 demonstrated "the urgency and opportunity for a zero-carbon economy and the power of international cooperation to address the serious challenges facing the planet," Allen explains. "It's important for all of us and brands to take action."

In recent years, global brands have tackled the issue in their own ways:

• Adidas, one of the world's largest sportswear manufacturers, has been innovative in its efforts to reduce plastic waste, with a goal of selling 20 million pairs of shoes made from recycled plastic parts in 2020.
• Sky News International, the British media and communications brand, has programs such as Sky Ocean Rescue and the #PassOnPlastic campaign to support ocean cleanups around the world. The company's campaign aims to eliminate single-use plastics throughout its supply chain, including cables, cups, TV controls and technology.
• Ambitious companies like Volvo are not only looking to eliminate fossil fuels, but are also continuously promoting safer and more productive transportation.
• Formula One, an international auto racing sport, is focusing its sustainability strategy for 2030 on its race cars and production, and how spectators and fans interact with the brand at its events. It is also using Formula One's recognizable brand to lead change that will help create a more diverse and inclusive society.

Allen says that the lottery, as the most recognizable brand on the planet, and its suppliers also have a responsibility to affect change.

"It's incumbent on all of us to continue on the path to a more sustainable and socially responsible industry operation," Allen points out. "As a leading global industry supplier, Scientific Games' mission goes beyond providing maximum funding to good causes to enrich lives through active play. The lottery industry can take action to make the world a better place not only by making products in more sustainable ways, but also by promoting the responsible use of those products. With this in mind, Scientific Games was one of the first companies to receive certification as a responsible gaming supplier from the World Lottery Association (WLA). With its new Healthy Play™ sustainability strategy, the company is delivering on its commitment with its approach to people, planet and prosperity."

Setting the Standards for Healthy Play

Healthy play based on deep industry research and market analysis will increase the integration of the scientific Games Lotary Group's responsible WLA gaming principles and the integration of the entire organization. We are also working on innovative healt h-cho products, technologies and services.

Helseep play is based on the basic principle of a responsible game supported by the simple goal of "Do good. Play Healthy ™." We are promoting education to reduce, "says Allen.

Scientific Game's healthy play is not only promoting consume r-responsible games. Scientific Games Games organizes SG CARES ™, SG GREEN ™, and SG Grows ™ in sustainable initiatives, focusing on people, the earth and prosperity, respectively. The company's efforts to cooperate with the company are aimed at returning to the local community that operates business around the world. Through charitable donation, leadership, and volunteer activities, Scientific Games believes in creating a more working and livable workplace.

"In SG Keans, people, business partners, suppliers, or stakeholders are at the center of our business. SG Green begins on Earth and ends on Earth. The footprints on the earth that are trying to leave only the joy gained from healthy play.

Scientific Games has established SG CARES to support and grow teams around the world. The goal is to develop a diverse, fair and comprehensive workplace that cooperates to achieve common goals.

"Employees are our biggest assets, and this has never been important than last year, when they were pandemic. Maintain the safety and motivation of employees and take into account mental health. That is the top priority, "says Allen.

From environmentally friendly ink to recycle paper garbage and significant reduction in harmful emissions, scientific games incorporate the sustainability of the environment into each business process and functions. This initiative is called SG GREEN. The following actions that the company implemented at SG Green is:

Scientific Games plans to achieve zero waste reclaimed disposal in the UK and promote this program throughout the world.

• The ink and coating agents used in the company's instant game manufacturing process are all wate r-based.
• Tickets are manufactured using recycled paper, which is procured from forest resources managed by the Sustainable Initiative and the Forest Stewardship Council.
• The used paper is sent to a recycled factory, unused ink becomes fuel from other industries, and unused plastic is reborn as a new furniture.
• The company's manufacturing facilities in the United States, Canada and Britain have obtained ISO14001 certification. The ISO14001 is an environmental management system enacted by the International Standardization Organization to reduce the effects of companies on the environment, especially air pollution, water pollution, landfills, and energy use.
• "By using sustainability as an essential factor for business management, we are more protecting the earth and creates value for stakeholders," Allen says.

Finally, Scientific Games believes that doing the right things will lead to the growth of the company and customers.

This spirit is symbolized by SG Grows. Gaming for good means that all stakeholders win due to sustainable growth. "

"We believe not only to follow the standard, but also to set the standard," Alen says. "SG Grows is based on creating the maximum return to the cause of our industry. We are responsible growth, who is the player and how to play. I understand that it is born deeply and creates a closer relationship with the player. "

In fact, all businesses, including the lottery industry, were influenced by COVID and the aftermath.

Putting Players First

"This was definitely an event that remains in history, but with each age, I am always impressed with how resilute the industry in the changing business environment by always thinking about players. Allen says.

Scientific Games strives to think about players first by creating a more diverse product portfolio so that more spectators can reach. When optimizing a game portfolio, we analyze the current game mix of the market and determine what games you can take responsible for your new player. In addition, the company's digital player engagement offers more fun and exciting content through platforms that promote responsible play.

"Responsible growth is to balance the return to goodwill while reducing risk," Allen says. "We strive every day to support the achievement of lottery goals.

Chris Allen, VP Marketing & Strategy, European Lottery, Scientific Games

Scientific Games European Lottery Marketing & Strategy Vice President, Chris Allen

© 2021 Scientific Games Corporation. All Rights Reserved.

It was great to meet and connect with SCIENTIFIC GAMES colleagues from around the world. Thanks to the Austrian Lottery for hosting!

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50 years of science built into every game – Behind the scenes of the world’s largest instant game operations

The manufacturing process starts long before the roll paper is on the printing machine, and continues after the forklift has carried colorful tickets to the complex packaging and prize balance process of the company. It is a sight of modern technology that is remarkable. And it is sometimes difficult to understand the size of this $ 118 billion of consumer goods.

Behind the scenes, it is rare for those who visit the world's five instant game manufacturing facilities in the world of scientific Games. The security guards are always accompanied, photography and videos are prohibited (unless highly managed customers or educational purposes), and most of the tour participants return in awe.

With tens of thousands of tickets in one minute, security, pr e-and afte r-process processes, and stat e-o f-th e-art printing technology have been sophisticated for nearly 50 years. Among the precise roll tickets, millions of dollars are waiting for a lucky player.

Instant games are designed to overcome the issues of supply chains and labor, which may threaten lottery inventory and beneficiary's cash flow due to the unmatched agility of Scientific Games Games. We are proceeding with manufacturing and retail distribution pipelines.

Instant Game Production

It is a truly amazing business to start with the basic raw materials of paper and ink and manufacture 53 billion safe and accurate instant game tickets worldwide. The final product indicates the complex fusion of art and science, such as design, chemistry, mathematics, engineering, computer science, product marketing and management, robot engineering, logistics, etc. And all of them are closely along with contracts with customers and compliant laws in the jurisdiction of each lottery.

Most of the scientific games manufacturing processes are unique, but there are 14 major processes before the independent coded tickets reach the retail store.

The company uses recycled paper and wate r-based ink procured in a sustainable way, leading the industry in environmentally friendly instant games, such as energy use and waste reclamation processing.

Programming of all games (data that determines where all prizes are) requires a global team consisting of an industry veteran and experts, such as game developers, auditors, mathematicians, security experts, and managers. It is. Most members have more than 15 years of experience and are operated 24 hours a day, 365 days a year in the United States, the United Kingdom, Canada, and Chile, so they can always be supported.

Game Programming

The global team offers accurate, hig h-quality hig h-quality games on a daily basis on a daily basis. With this programming process, Scientific Games has established a status as a world leading instant game provider. This process has obtained ISO 27001 certification that meets international standards that require 133 individual security management policies and procedures, and guarantees that all necessary procedures are observed. Controled by automation system.

From the first ticket to the last ticket, the company's system maintains confidentiality and creates a game that displays the prize structure and the unified integration of the game parameters [SH4].

Game Software Developmen t-Programmers create game development software according to the lottery game specifications. This software creates all play symbols, numbers, characters, and barcodes unique to individual tickets.

Next, an independent audit programmer has developed an audit software, all ticket numbers, all verification numbers, all play symbols, all barcodes, that is, game data of each ticket, the game "working paper". Verify that the rules are completely observed. This includes play mechanics, symbol sets and arrangements, prize money configuration, rules, and parameters verification.

As a final stage, another team between the internal auditors and the external auditors of the scientific Games and external auditors will confirm reports, test tickets, test ticket data, and comply with all game data requirements listed on working paper. Test game software and make final approval using other evidence required to prove.

Game Data Productio n-Custom applications and security systems control live data production of games. The automated application will transfer the approved final game software to the production system, and another application suite starts to produce game data from the beginning to the end. Since these systems are linked, the data is safe and 100 % confidential.

No one knows where the winning ticket is until the game is purchased and the prize is revealed. Scientific Games uses complex, highly safe processes and technologies that guarantee the integrity of the game. This has been demonstrated millions of times every day as players around the world play instant games.

The company's instant game manufacturing process includes a lot of quality and security options, from auditing to game design, programming, safe barcodes and scratc h-off coating of physical game tickets, and safely distribution of lottery games. Is involved. This is performed from the moment when the game is designed, programmed, and manufactured, to the moment when it is distributed, sold, and authenticated as a prize.

Security

The number of heavy security systems, including cuttin g-edge firewalls, networks, and other security applians and applications, protects the integrity of each game. The core game data of these protected security systems is completely encrypted using advanced encryption systems. All of the company's systems are continuous and independent scrutiny by professional auditors who evaluate security instead of lotteries.

The prize money is distributed as randomly as possible in the game. The patented key dual security technology protects the game by demanding different "keys" from multiple independent parties for each game. To create valid game data, you need two keys created by Scientific Games and the key created by lottery. This key controls the random number generator of the game and controls the winning tickets and the no n-elected ticket shuffle.

As a result, winning tickets and no n-elected tickets are unbiased. With the random distribution of packs from the warehouse, millions of instant games around the world are random events that occur every day.

As the company that developed the world's first secure instant game, Scientific Games is continually developing new systems and tools that improve the safety, accuracy, and efficiency of the game development process.

Pre-press capabilities ensure that the final delivered game matches the original artwork approved by the lottery and represented in the ticket proof. The simulated ticket, called Contract Proof, uses the industry's most realistic proof generation technology to produce the most detailed and color-true representation of the final printed product.

Pre-production

As millions of tickets are created from plate files, Scientific Games' proofing technicians review every set of blue-line proofs before the game is plated for the printing press. These technicians are considered the audit team for the entire pre-press process, from artwork to creating working papers to completing the plate file. They check that the game specifications have been created and ensure every aspect of the ticket is correct.

Each printing press ("Print System") is an engineering marvel that integrates advanced image processing systems, custom-designed drying and curing units, inspection cameras, and data capture systems, all managed by printing professionals. Offering exceptional reliability, flexibility and capacity, each printing system has specialized features to produce a wide variety of game designs, ticket sizes, finishes and play styles.

Game Production

Once all internal and customer approvals are complete, actual live ticket production begins. Each system processes up to 1, 000 feet of paper per minute, producing up to one million 2" x 4" tickets per hour.

As the paper unwinds from its giant roll, it begins the process of passing through up to 21 separate printing units on the press. Each unit applies a different layer or ink color to the paper.

After the back of the ticket is printed, multiple security layers are laid down. First, an opaque black security coating is applied, providing excellent adhesion to the paperboard and preventing light transmission. Then, a white or colored security primer is applied over the black coating to create a secure, image-receptive play area. The ticket is now ready to receive game data.

With nine presses in operation around the world, Scientific Games' global team collaborates, sharing knowledge and best practices that benefit instant games customers across six continents. Currently at the forefront of cutting-edge technological developments used in the industry, the company continues to invest millions of dollars in instant games production, recently increasing its global production capacity by 20% with a technology expansion at its UK facility.

At Scientific Games, the shipping department is an extension of the finishing process, responsible for the final preparation of each game so that it arrives in good condition at the lottery's distribution center and can be distributed to the retail network. Each step in the process cannot occur until the previous step has been completed, in this order:

Shipping

Balancing the prizes, labeling and stacking the final cartons

• Banding and packaging
• Final audit
• Loading the truck and shipping
• Managed by the company's shipping system, a module of the overall packaging system, each step in this process is carried out by trained personnel using specialized equipment and closely monitored by managers and security personnel.

The pallets of completed tickets are tightly stretch-wrapped from bottom to top to protect the contents and provide tamper evidence if anyone attempts to open the carton during its transit to the distribution center.

The pallets are then loaded onto trucks according to the specifications of the customer profile, free of other deliveries. The shipping paperwork required is detailed in the customer profile. Every game also includes an inventory file and a validation file that are sent via secure transfer. These files identify every good pack in the game and allow for distribution and system trading.

Before closing and sealing the trailer doors, a shipping clerk photographs the inside of the loaded trailer. The truck is then locked and sealed.

Once the delivery truck leaves Scientific Games' manufacturing facility, the lottery company is notified. A shipping notification is sent to the distribution center and the lottery, providing game data, expected arrival date, and the seal number used on the truck.

Through a collaborative, total portfolio management approach, the company's products are designed and manufactured to entertain players and maximize profits for lotteries of all sizes, including 19 of the top 20 instant game lotteries in the world (based on retail sales per capita).

Game Innovation & Portfolio Management

Due to its production capacity, the team can carry out new products and materials press tests, and instant games continue to be appropriate for consumers. Our innovation teams consisting of designers, priz e-winning experts, market analysts, programmers, chemists, and technicians are players around the world by continuously improving and revitalizing instant games. We provide the latest and most fun lottery experiences.

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To the top, up, and far: Poland and Switzerland. The supe r-powerful cloud native system of IGT provides security to Loterie Romande in Switzerland and Totalizator Sportowy in Switzerland and Polish Totalizator Sportowy by procuring a proven solution built under meaningful cloud provider investment. < SPAN> Due to the production capacity, the team can carry out new products and materials press tests, and instant games continue to be appropriate for consumers. Our innovation teams consisting of designers, priz e-winning experts, market analysts, programmers, chemists, and technicians are players around the world by continuously improving and revitalizing instant games. We provide the latest and most fun lottery experiences.

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