Decription of business models


Lottery Club


Due to variety of the presented lottery products, a club may cover maximum needs of various types of customers.

Club format:

Club format:

Space requirements:
    • Area from 50 sq. meters
    • Dedicated capacity from 7 kW
    • Wired Internet connection (at least 5 Mbit)
    • Ability to place an outdoor branded sign board and a light box reflecting the corporate identity
    • The space of lottery club may be divided
      into several functional areas

Opening of a pilot club required the following upfront investments:

Type of expenditures:

  • Rental charges
  • Renovation and decoration of the premises in accordance with the brand book
  • Equipment, furniture
  • Promotional items for visual merchandising of the club interior
  • Sign board
  • Light box
  • Materials for outdoor design and decoration of the club entrance space
  • Salaries
In case of franchising partnerships, partners are provided with the following commercial technologies:
  • The right to use trademark in accordance with the contract terms and conditions
  • Economic model description
  • Software license
  • The list of required equipment and estimated budget for setting up a club
  • Exclusive terms for supply of equipment, promotional merchandise and expendable materials
  • Detailed instructions on equipment assembly and software installation and launch
  • Step by stem plan for opening and development of the club
  • Brand book adopted for specific localization
  • Space requirements and presentation for a landowner
  • Individual project for interior and outdoor decoration design
  • Description of the procedures to be used with out technology including a process chart and the staff operating procedure
  • Staff list and plans/recommendations for optimization of personnel expenses
  • The list of regulation authorities and algorithms of interaction with these authorities for various partnership options
  • Bundle of sample legal documents including:
    • Full set of documents on legal aspects of the business (required for initial interaction with regulation authorities of all the possible levels)
    • Sample legal documents required in the process of building relationships with regulation authorities within the appropriate option
    • Sample agreements on daily operations such as rental and employment agreements
  • Marketing plan customized for specific localization
Contract relationship also include the following:
  • Support of the whole opening process by way of remote consultations
  • Systematic control of the processes to improve service quality and promote sales (secret shopper, expert evaluations, campaigns for getting feedback from the customers)
  • Consultations from a team of professionals focuses on franchisee’s success
  • Legal and technical support by way of 24/7 remote consultations
Optional services* (if necessary):
  • Provision of a crew for renovation and finishing of the rented space in accordance with the brand book
  • Provision of an opening crew 3 days before opening and collaborative work for 1 week after opening

Lottery Corner

Offer of video lotteries in a betting area will increase the product range and have a positive effect on gross revenues.
Lottery Corner construction is easy to install and may be adopted to any size even in case of a very limited room.

Opening of a lottery club in a betting area requires the following upfront investments:

Type of expenditures

  • Rent of the part of the premises to be used for equipment installation
  • Equipment
  • Promotional construction for zoning of the lottery corner
In case of franchising partnerships, partners are provided with the following commercial technologies:
  • The right to use trademark in accordance with the contract terms and conditions
  • Economic model description
  • Software license
  • The list of required equipment and estimated budget for setting up a club
  • Exclusive terms for supply of equipment, promotional merchandise and expendable materials
  • Detailed instructions on equipment assembly and software installation and launch
  • Step by stem plan for opening and development of the club
  • Space requirements and presentation for a landowner
  • Individual lottery corner design layout for the specific premises
  • Description of the procedures to be used with out technology including a process chart and the staff operating procedure
  • The list of regulation authorities and algorithms of interaction with these authorities for various partnership options
  • Bundle of sample legal documents including:
    • Full set of documents on legal aspects of the business (required for initial interaction with regulation authorities of all the possible levels)
    • Sample legal documents required in the process of building relationships with regulation authorities within the appropriate option
  • Marketing plan customized for specific localization
Contract relationship also include the following:
  • Support of the whole process of lottery corner opening by way of remote consultations
  • Systematic control of the processes to improve service quality and promote sales (secret shopper, expert evaluations, campaigns for getting feedback from the customers)
  • Consultations from a team of professionals focuses on franchisee’s success
  • Legal and technical support by way of 24/7 remote consultations
Additional services* (if necessary):
  • Provision of a crew for arrangement of the lottery corner in accordance with the design layout
  • Provision of an opening crew 3 days before opening and collaborative work for 1 week after opening

Advantages of this business model

Why club format lottery business is profitable for partners?

  • High margin and short payback period (6 to 12 months)
  • Every terminal may be controlled for the sale of lottery tickets and money turnover in the process of video lottery sale on remote basis through the Internet
  • Charity — every country’s legislation requires transfer of a portion of proceeds from lottery sales for charitable purposes (orphan asylums, sport organizations, etc.)
  • Massive involvement — in most of the countries, sale of lottery tickets is separated from gambling industry and has no limits on the places and number of points of sales of lottery tickets
  • There are no legal barriers to advertising of lottery products in mass media and/or other channels
  • Transparency — lottery products are protected from fraud and have no hidden algorithms

Lottery Club and Lottery Corner business models include the use of out exclusive Reallot technology that make every lottery draw absolutely transparent for the players.

Reallot technology makes it possible to prove legitimacy of any lottery with no effect on the lottery holding procedure shall there be any sceptical players or suspicions from the law enforcement authorities. It means that you can have expert evaluation of your operations (including an online lottery) for compliance with the law of your country at the very point of sale.


Business terms and conditions

Withing the club format lottery business project, we offer our clients three types of partner relationships:

 


Option 1. Acquisition of the right to use out turnkey business under a franchising agreement.

Financial terms:
Initial payment N/a
Advance indemnity payment on account of royalties* Determined on a case by case basis in dependance on the geographical territory and target number of clubs
Royalty, % of gross revenues
Marketing budget 2% of the income

In case of objective necessity to change location of the entity the indemnity payment is assigned to (for example due to unfortunate choice of location), the indemnity payment will be re-assigned to the new location minus the royalty that have been already paid.

 


Option 2. Establishment of a joint legal entity

This options implies establishment of a new joint legal entity with the following founding members:

  • Our partners (holders of lottery license) undertake a commitment to make an operating agreement with the new legal entity including sales organization and advertizing campaigns within the scope of the applicable license, and
  • Our company undertakes a commitment to make separate franchising agreements to provide the new legal entity with the opportunity to use the commercial technologies of Lottery Club and Lottery Corner projects.

All the above mentioned actions as well as responsibility in case of failure to perform the contractual obligations within the appropriate period is covered by the joint legal entity incorporation contract.


Getting started

Please inform us of your interest in club format lottery projects via the contact form.