Description of business models


Vend Lotto


Sale of classic lottery tickets by installing a 10-dispenser add-on module on a payment or lottery terminal.

Business model
  1. A single terminal may display up to 20 printed lottery tickets of various value and size.
  2. A customer chooses one of the lottery tickets loaded into the add-on module of the terminal.
  3. The customer pays for the ticket through the terminal.
  4. The add-on module dispenses a chosen lottery ticket.
  5. The customer scratches the protective layer off, inserts the ticket into the special slot on the add-on module and scan the QR-code.
  6. The system enquires the manufacturer’s server of the prize by secure communication channels.
  7. The terminal pays the prize.
PROJECT WEBSITE

Long Lot


Sale of instant lottery tickets by installing an add-on module with tear-off ticket dispenser on a payment or lottery terminal.

Business model
  1. A customers buys a ticket in the terminal.
  2. The add-on module turns the roll of tear-off tickets and dispenses one.
  3. In the process of dispense, the ticket bar code is scanned to determine the ticket number.
  4. The system enquires the manufacturer’s server of the prize by secure communication channels.
  5. Depending on the result (win or loss), the display shows appropriate visualization.
  6. The customer scratches the protective layer on the ticket off and compares the results with information on the screen.
  7. The terminal pays the prize.
PROJECT WEBSITE

Reallot street


Sale of video lottery with secured fiscal receipts by installing an add-on module with protected receipt tape on a payment or lottery terminal or through a panel integrated into a street stand/pavilion.

Business model
  1. A customer pays for participation in video lottery.
  2. The display shows visualization of the chosen video lottery and the customer chooses an electronic ticket.
  3. The system enquires the manufacturer’s server of the prize by secure communication channels and depending on the result (win or loss) the display shows appropriate visualization.
  4. The add-on module prints a receipt with information on the chosen electronic ticket and the lottery result.
  5. The terminal pays the prize.
  6. The operating procedure includes inspection of the lottery result with the use of Reallot technology.
PROJECT WEBSITE

Advantages of business models of selling lottery tickets in the street

  • Full automation. Retail workers take no part in the process.
  • Any terminal. The solutions may be used for modernization of any models of payment and lottery terminals with no effect on their principal functions.
  • Fixed costs. The terms of terminal rent stay unchanged.
  • Transparency. The technologies used make the process of lottery sale completely transparent. In case of Vend Lotto and Long Lot business models, transparency is ensured by printed tickets. For video lottery sales we used protected receipts and Reallot technology that allows inspection authorities to perform an expert examination on site without the terminal extraction.
  • Security. Every ticket and fiscal receipt has all the required security features and fully conforms to the legal requirements.
  • Software. We have developed appropriate software packages for remote control of the terminal networks from computer or mobile phone.
  • Copyrights. We produce all the images and sounds for visualizations in-house. We respect copyrights of third parties and refrain form violation thereof.
  • Patents. We have obtained patent protection for all of our components: Software, design, business logic and identity.

For potential partners who have not been engaged in lottery business but can obtain a license to hold lotteries we also offer the following opportunities:

  • Purchase various type of turnkey lottery products
  • Order development of tailor-made complex lottery products
  • Order specific components of lottery projects:
    • Lottery ticket design.
    • Lottery mathematics.
    • Lottery game rules.
    • Legal support.
    • Manufacture of lottery tickets

For more information on lottery product development services, click here.


BUSINESS TERMS AND CONDITIONS

Withing the street selling business models, we offer our clients three types of partner relationships:


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

WITH THIS TYPE OF PARTNERSHIP THE PARTNER GETS:
  • The right to use our trademarks
  • Rental equipment
  • The right to use our software (including but not limit to exclusive visualizations for video lotteries)
  • Equipment and software setup instructions
  • Recommendations on decoration design for the client’s equipment
  • Supply of extendable products (lottery tickets, receipt tape)
  • Technical maintenance
  • Legal support
FINANCIAL TERMS:
  • Lump sum payment is 0 rubles
  • The royalty is calculated on a case by case basis depending on the number of equipment items
  • Long-term franchising agreement — 3 years with an option to renew.
KEY NUMBERS (for one terminal):
Upfront investments* From $1,500/unit
Monthly cost-to-serve From $70-$150 (depending on the region)
Gross monthly income From $600 (depending on geographic territory)
Net monthly profit after deductions incl. taxes From $150/month
Return of investments (ROI) From 8 months
Target capability From 35 people/day
Target average check From 100 rubles
Upfront investments in case of buying 1 lottery ticket vending machine:

 

 

Type of expenditure Amount
Rental charges From $50/month
Purchase of terminal (used — new) >$250 — $1,300
Purchase of built-in panel
Purchase (or manufacturing) of lottery tickets On a case-by-case basis
Rent of equipment On a case-by-case basis (depending on the number of equipment items)
Promotional items for visual merchandising of the vending machine From $20
Salaries N/a
STAGES OF PARTNERSHIP
  1. Making agreements:
    • Lottery distribution agreement (in the absence of such an agreement or lottery holding license)
    • Cash collection agreement (in the absence thereof)
  2. Equipment: purchase of payment or lottery terminal/built-in panels (in the absence thereof)
    • Choosing configuration of the add-on module
    • Pick up of the chosen add-on modules
    • Mounting of the add-on modules/built-in panels, software installation
  3. Finances
    • Payment of annual rent for the chosen add-on modules
    • Payment of deposit for the lottery tickets and receipt tape (for appropriate options)
    • Loading money for prize payouts
  4. Launch of terminals/built-in panels
    • Installation of add-on module and software on the terminal
    • Getting a set of lottery tickets (for appropriate options)
    • Visual merchandising/re-branding of terminals/build-in panels

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) who undertake a commitment to make an operating agreement with the new legal entity including manufacturing of lottery tickets, software and equipment as well as sales organization and advertizing campaigns within the scope of the applicable license
  • 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 Vend Lotto, Long Lot, and Reallot Street 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.


Option 3. Acquisition of license to use Reallot technology to adapt it to a third party lottery products being used by our partners.

Right to the use the technology may be assigned under option 3 in two cases:

  • For state level projects and in relation to a certain geographic territory, or
  • If the client orders a new, turnkey lottery products based on Reallot technology and assumes an obligation to make no modification to the developed lottery product.