Gaming Solutions was formed to take advantage of existing systems and commodity components to customize and deliver cost efficient solutions for license holders. Having a long and broad background in the gaming industry we believe in the opportunity to bridge the demand gap for emerging markets, niche markets and mature markets.
The future of lotteries
Lotteries are the most profitable and most sustainable part of the gaming industry. A lottery exists in order to collect tax, to finance a good cause or expensive projects through generating normal margins of 20 – 40 %. Worldwide lottery sales (ex sports games) were almost $300 billion in 2014.
Today many people believes that the future belongs only to the private operators offering Internet games with a very high percentage paid to winners (typically 95 %) and with typically 1 % to the government/licensee (20 % of what is left after prizes). A simple calculations tells us that this means that if these operators totally takes over the market and the same amount shall be collected to good causes, the turnover in the Nordic Countries must be 250 billion Euro annually (2012 level). Gaming Solutions don’t believe we will have such a future, and we don’t think people want such a society.
We believe strongly in the future of lotteries, but we will see heavy changes:
- More products will enter the market and the time to market will go dramatically down.
- Use of modern technology will make it possible for also smaller lotteries to raise significant funds.
- The cost of operation will go down in lotteries, and they will liberate themselves from the grip of their current supplier.
- The state-owned lotteries will face a much tougher competition and the governments will allow competition – but on equal terms.
- Regulatory bodies in the different jurisdiction will get more power, since the threats of gaming addictions and other problems are increasing. Most of these problems are generated from gaming offers coming from abroad.
- We also believe that there will be regulations stating that at least i.e. 15 % of the total sales must be paid to a beneficiary.
We believe that lotteries will have a great future in their struggle to serve society, but a lot of changes will happen – at least those listed above. Gaming Solutions wants to be a significant player in these changes - reinventing lotteries
A lottery exists in order to collect tax or to finance a good cause or an expensive project. The first recorded signs of a lottery are Keno slips from the Chinese Han Dynasty around 200 B.C., and probably helped to finance major government projects like the Great Wall of China.
Lotteries are regulated and governed by national, state or provincial governments or cities. They might be operated by the above mentioned entities (like in Norway) or by private enterprises based on issued license (like in the UK).
Lotteries are providing funds for the finance ministry (like in Finland) or to special organizations /sectors (like in Norway). It is an interesting experiment to try to calculate how many gold medals Norway would have won in the Winter Olympics without the contribution from the lottery. Or if one could think of another organization where most people happily are cueing each week to be able to pay their tax.
A lottery is often also a driving force for building of a modern infrastructure. Dependent upon the maturity of the country this is (or/and has been) communication technology, banking services and ID-technology.
And a lottery provides entertainment – many people look forward to the lotto-draw usually the most popular TV-programs around the world.
Gaming Solutions is a proud contributor to a better life for a lot of people.
In order to safeguard our mission, an Ethical Advisory board has been created.
Since our mission is to Serve the Society, we must of course be aware of and avoid things that creates problems for a society. We including our subsidiaries are obliged to (at least) follow the rules and regulations provided for by the WLA:
“The duties are not only to grow sales and returns to good causes but to facilitate responsible play. In 2006, the WLA adopted the Responsible Gaming Principles and a Responsible Gaming Framework aimed at protecting lottery players around the world. This effort and commitment ensures not only that our public is protected but also that the revenues are sustained for the public good”.
We follow guidelines and look for so-called “Green Games”; meaning games having a minimum risk of generating addictions.
A lottery’s mission is to serve the society and the main asset of a lottery is the credibility and trust it has amongst the player – in reality the society.
This means that we must have strict rules regarding:
- Corporate governance. We have a framework of rules and procedures by which we govern and control the business. Good corporate governance is about establishing a sound platform for such a framework and applying our values in order to create value for our stakeholders. We consider good corporate governance to be a prerequisite for value creation and trustworthiness and for access to capital. In order to secure strong and sustainable corporate governance, it is important that we ensure good and healthy business practices, reliable financial reporting and an environment of compliance with legislation and regulations across the group.
- Trust and transparency. We believe good corporate governance involves openness and trustful cooperation between all parties involved: Owners, Board, employees, business partners, customers, suppliers, public authorities and society in general.
- Applying values to create value. Good corporate governance principles are reflected in our values – Make it easy. Keep promises. Be respectful. Be inspiring. By applying our values in what we do as an organisation, we create value and maintain a healthy corporate culture.