Prize Payments for Lotteries. APLA / WLA Seminar Cambodia April 2013

Transcription

1 Prize Payments for Lotteries APLA / WLA Seminar Cambodia April 2013

2 Innovative New Games and Channels and their Risk Management Prize Payments for Lotteries

3 Prize Payments for Lotteries Evolution of prize payment systems Offline prize validation Online prize validation Introduction of barcodes Risk factors: Lotteries exposed Player fraud Retailer fraud Latest solutions Weaknesses? Solutions

4 Phase 1 Late 1970 s /1980 s 1990 s OFFLINE validation of prizes VOID IF REMOVED number / paper validation list All winning tickets returned to lottery for checking Phone authorisation # required for retailers to pay prizes of $50+ RISK to lottery & retailers Cut & paste

5 Phase 1 Late 1970 s /1980 s 1990 s OFFLINE validation of prizes Solution: Retailer codes Code letters with list behind counter for retailers to check when small prizes claimed

6 Phase 1 Late 1970 s /1980 s 1990 s OFFLINE validation of prizes Solution: Retailer codes Code letters with list behind counter for retailers to check when small prizes claimed

7 Phase 2 Introduction of ONLINE VALIDATION of prizes Growing range of games Introduction of higher priced tickets More complex with multiple games on tickets BARCODES on tickets, used together with concealed digits under scratch panel RISK reduced for lottery Risk of keying errors Busy retail periods vulnerable

8 Phase 3 Mid 1990 s / 2000 s 2010 s Introduction of Bingo, Crossword & other Extended Play games Required On-line validation of prizes Too difficult for retailers to sight check Not all lotteries had this facility Advanced retailer code system 2-part void if removed code system

9 Phase 3 Mid 1990 s / 2000 s 2010 s Introduction of Bingo, Crossword & other Extended Play games Required On-line validation of prizes Too difficult for retailers to sight check Not all lotteries had this facility Advanced retailer code system 2 part void if removed code system RISK? Potential for retailer fraud

10 Phase 4 Introduction of Failsafe barcodes Player ticket checking devices in stores Fast & accurate validation for retailers Enabled players to check their own tickets

11 Fraud exposed! CBS program The Fifth Estate Oct 2006 Retailer fraud exposed Players being tricked by retailers Validation systems being abused! Instant games as well as on-line/terminal games

12 Fraud exposed! The report by the fifth estate added that over 200 lottery retailers in Ontario have won major prizes from 1999 to 2006

13 Fraud exposed! Ontario Lottery (Canada) under microscope Player apathy/trust created vulnerability Multiple techniques in use Tickets switched behind counter Retailer prize codes created vulnerability Poor systems & lack of management control Not just Ontario Other US & Canadian lotteries Australia

14 Solutions Strengthened security Signature panel on front of ticket Instant & on-line games

15 Solutions Strengthened security Signature panel on front of ticket Instant & on-line games

16 Solutions Strengthened security Signature panel on front of ticket Instant & on-line games Scratch & Scan Intuitive for players

17 Solutions Strengthened security Signature panel on front of ticket Instant & on-line games Scratch & Scan Intuitive for players

18 Solutions Strengthened security Ticket checkers for players Customer facing terminal displays Sounds from terminal for winning tickets Terminal freeze if prize of $10,000 or more. Lottery calls & speaks to winner immediately while still in store

19 Solutions Strengthened security Position of Failsafe barcodes Must be obvious if revealed

20 Solutions Strengthened security Prize Check

21 Solutions Strengthened security Scratch to Cash

22 Solutions Player Self-Check system No scanner required Can check tickets at home

23 Solutions Player Self-Check system

24 Future Complex designs & large no of games Design wants v security needs

25 Future Complex designs & large no of games Design wants v security needs Second Chance Draws integrity of process for entries & prize draws

26 Future

27 Future Higher priced games High payouts... State attempts to stop use of lottery tickets for money laundering - Israel

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