Tenlot, the lottery as a way of social development

Source: www.gamingintelligence.com 

Yossi Abadi, CEO of Tenlot Group, in the midst of the lottery operator´s expansion in Latin America, after starting operations in Guatemala. Along with a strong risk investment that is not usually within the reach of governments, this company has among its objectives an important social development component.

Not only does it provide its technological platform, but it also contributes a risk investment that governments usually cannot afford. Thus, TENLOT makes a total investment to develop the lottery and gaming market. But it also maintains an important social development component to generate economic support for the most needy through social programs. They started in Guatemala and now their aspiration extends to the whole region. This is what Tenlot´s CEO, Yossi Abadi, says in this interview.

Answer: Our group, led by its founder, Jacob Engel, comes from the mining and oil, construction, and infrastructure sectors. With concessions in more than 25 countries, we have led large mining exploration and operation projects; we have built tens of thousands of homes around the world, and we have invested in more than 20 new technology companies through our investment fund. Mr. Engel has owned eight public companies, listed on the New York, London and Tel-Aviv stock exchanges. We entered this sector because we see in the lottery an opportunity to develop a project with great scope and social impact, and at the same time, with great capacity for economic growth. We identified a gap in which our financial strength as a group, our willingness to invest and assume risk, as well as our ability to develop a market, can drive large and good projects. We entered this sector because the business philosophy of risk investment is in our DNA.

A.- We have not chosen one over the other. We believe very much in the future of online gaming. The projections of that sector show its rapid growth, and it is estimated that online gaming revenues, worldwide, will reach USD 55 billion in 2019. In fact, we are expanding along the same lines. But we believe that an online project will be much more successful when it has significant and broad retail backing. Especially if it is launched in countries where e-wallet and credit card penetration is not widespread. That´s when physical presence at the point of sale becomes your greatest strength. 

A.- Yes, we use external suppliers. We choose the best suppliers for the development of our technology platforms. We are an operating group: that is our great strength. We focus on the development of a market, on creating value for the company. I believe that focusing on investment, implementation and operation is what leads us to success. Everyone must do what they do best.  

Q.- How does your marketing strategy differ from that of traditional lottery operators?

A.- First of all, we understand that the key is to design a good advertising campaign, to consolidate a brand that, above all, has the human touch, the social relationship, the sense of help. I also believe that our financial capacity to invest heavily, to bet everything, is what makes the difference. We establish strategic alliances in the world of sports, music, television... We even reach theaters with lottery comedies. We are in the key points of national life, where feelings are aroused. 

Q.- What are the long-term plans for the company?

A.- Our objective is to expand both in Latin America and Africa, expand our investment and enter new markets. The founder of our group comes with the experience of having listed eight of his companies on the New York, London and Tel-Aviv stock exchanges. We have consolidated our company as if it were public, in terms of procedures and transparency from day one. And indeed, we are planning to launch TENLOT on the Stockholm Stock Exchange by the end of 2020. It is part of our strategic vision. 

Q.- Lottery is one of the most popular games in the world and also in Latin America. What is your key strategy to adapt the games and operations, in each of the countries?

A.- TENLOT is not just another company in the lottery world. We bring a new vision to Latin America. Unlike companies that are dedicated only to provide their technological platform, looking for a secure income, we bring a vision of risk investment. Governments generally, for obvious reasons, have budgetary limitations. They cannot compete on an advertising level with the private sector. We fill that gap: we offer a total and absolute investment for the development of the lottery and gaming market on behalf of the government. It´s a win-win-win-win partnership: the state wins, the players win, and we win. We assume all the necessary investment: we install and operate the most advanced technological platform; we expand the marketing and distribution channels; we assume the design of the games and the prize matrix; the cost of the team of experts and operation. And, perhaps most importantly, we assumed, in its entirety, a significant investment in marketing and advertising at a national level. Television, radio, newspapers, billboards... Everything. We are talking about millions of dollars of investment. Breaking paradigms. Doing what few dare to do.

A.- We consolidated our base of operations for Latin America in Guatemala. Great country, great people. To date, we have invested more than $16 million there. We are really proud of what we have achieved so far. We set up the structures and the most advanced technological platform; taking our time, without haste, convinced that things have to be done right. In a reliable and transparent manner. We came to Guatemala with the purpose of doing what has never been done before in terms of technology, transparency and product attraction.  And the vote of confidence we received, even from the local business sector, has been simply magnificent. We managed to reach more than 5,000 points of sale in a very short time. We consolidated an alliance with the main supermarkets; we are in pharmacies; in gas stations; in neighborhood stores; in markets; and we have hundreds of street vendors.

Q.- What has been your marketing strategy?

A.- Our first product is a scratch-off ticket. "A Lucky Shot". Easy to play: scratch and win. Today, with more than 100 employees in Guatemala, TENLOT has invested in advertising like never before. With only six months of sales, we are already sponsors of two important soccer teams, we have a large segment in the most famous and most watched television program in the country, and we even supported the launching of a play, a comedy about the lottery. We are on all the radio stations, in all the newspapers, channels and social networks. The investment is millions of dollars in advertising. We are coming in big. 

Q.- You mentioned the social vision of the company, what has been your approach in this project?

A.- I think many have lost the social focus that the lottery should have. But the lottery should, and can, be a magnificent platform for social development. The sales should generate economic support to the neediest, through social programs. The lottery in Guatemala allows us to create an extraordinary platform to be able to dream and fulfill dreams, to be able to dream of social development, to help the neediest and fulfill the dreams of those who dare to try their luck. Social support is in the DNA of our activities. What a privilege it is to be able to help, to be able to generate smiles. That is what we have been doing in Guatemala and what we plan to do in several other countries in the region. One of the most exciting things is to see the results of this work: a few days ago, for example, a Guatemalan woman won one of the big prizes by scratching her "Tirito de la Suerte". She is a noble and very humble person, someone who really needs the money. And do you know what she said when she received her check? "I didn´t buy the ticket with the intention of winning. I did it because this way I can help the children of Guatemala." I was moved to tears. What a privilege it is to see that the social message gets through. In Israel, for example, a country with only 9 million people, the National Lottery sold almost 3 billion dollars last year. With this, they have been able to build schools, sports centers, music centers, provide scholarships and fulfill their social vision. The lottery plays a very important role. And that is the social vision we bring to Latin America.   

A.- In Latin America we are expanding to Mexico and two other countries in Central America, but we are also active in Africa, where we have a large operating team. In these months, we are concluding an important alliance to enter a strategic country in Asia. We believe in developing countries. That is where innovation is possible; where we are making a multimillion-dollar investment, convinced of their great growth potential.  

Q.- How do you think the lottery market will evolve over the next year in the Latin American region?

A.- In 2017, lottery sales in WLA member countries, amounted to almost $300 billion! But what is incredible is that Latin America and Africa, two continents that represent 25 percent of the world´s population, accounted for only 2.7 percent of all sales. This indicates that there is still a lot to do; a lot of room for growth in these regions and that is where we are going with our investment.

Q.- How can we combat illegal lottery operations in the region?

A.- Illegal lottery is an evil that will always be there. But we have to fight it intelligently. And beyond regulation, I think the best way to do it is to focus on the social cause. When someone knows that they can not only win, but also help, I am convinced that they will choose that option. But to do that you have to build trust, demonstrate achievements, work with transparency, invest for real, and yes, offer attractive products. These are the fundamentals that guide us.