MINUTES OF MEETING OF THE ASIA PACIFIC LOTTERY ASSOCIATION EXECUTIVE COMMITTEE HELD AT 3.00PM ON TUESDAY 1 MAY 2012 AT THE INTERCONTINENTAL HOTEL, HANOI, VIETNAM PRESENT: Ms June Roache Chairman Mr Tan Soo Nan Vice Chairman Mr Henry Chan Executive Committee Member Mr Teisaburo Seta Executive Committee Member Mr Lawrence Lim Executive Committee Member Mr Warren Salisbury New Zealand Lotteries Mr John Teo Treasurer IN ATTENDANCE: Mr Richard Cheung HKJC Lotteries Limited Mr Takashi Yoshida Mizuho Bank Ms Yumiko Ishiguro Interpreter Ms Ryuko Shinzaki Interpreter MINUTES: Ms Janine Harvey Lotterywest APOLOGIES: Mr Wayne Pickup Executive Committee member Ms Jody Nunn Administrator Agenda 1. Welcome The Chairman welcomed attendees to the Executive Committee Meeting of the Asia Pacific Lottery Association in Hanoi, Vietnam and thanked Mr Tan Soo Nan and his team for hosting and facilitating the APLA 2012 Seminar. The Chairman welcomed Mr Warren Salisbury (NZ Lotteries) in Mr Wayne Pickup's absence. Mr Wayne Pickup is the new CEO of NZ Lotteries and will join the Executive Committee. Ms Jody Nunn was delayed in her travels and the Chairman also welcomed Ms Janine Harvey who attended the meeting in her absence. The Chairman announced that Ms Sue van der Merwe will join the meeting at 4.30pm to discuss the status of arrangements for the APLA 2012 Regional Conference. Amendments to the Agenda The following items were added to the agenda: 4.2. Application from Jumbo Interactive: Associate Membership 11.1. Nominations for the Executive Committee. 2. Apologies Apologies were received from Executive Committee Member Mr Wayne Pickup, NZ Lotteries and Administrator Ms Jody Nunn, Lotterywest. APLA Executive Committee Meeting 1 May 2012 DRAFT Page 1 of 9
3. 3.1 3.2 4. 4.1 4.2 5. 5.1 Minutes from Previous Meetings Confirmation of Minutes of Executive Committee Meeting held in Penang, Malaysia on 10 October 2011. In accordance with By-laws, the Minutes of the Executive Committee Meeting held in Penang, Malaysia on 10 October 2011 were confirmed. Proposed: Seconded: In favour: 9 Against: 0 Abstentions: 0 Motion: Carried Mr Henry Chan Mr Lawrence Lim Draft Minutes of Annual General Meeting held in Penang, Malaysia on 13 October 2011. The Chairman confirmed that there were minor amendments to be made to the final draft. Ms Janine Harvey to advise Ms Jody Nunn, Administrator of amendments. Draft Minutes were noted. Ratification of decision made by Executive Committee Appointment of Mr Wayne Pickup, New Zealand Lotteries to the APLA Executive Committee Decision ratified. Application from Jumbo Interactive: Associate Member Decision ratified. It was also noted that Jumbo Interactive was a sponsor of APLA 2012 Seminar in Hanoi, Vietnam. Matters Arising from the Minutes WLA Annual World Lottery Data Collection WLA Memorandum of Understanding to Regional Associations The Chairman provided a summary of item 5.1 and opened the subject up for discussion. A number of concerns were raised including: 1. The usefulness of the data to APLA region 2. The overall cost for complying with the information 3. Different products and games across Lotteries 4. APLA is more diverse than Europe and America - WLA is closer to Europe than APLA. 5. The data could be misleading and could end up in the Administrator to update minutes for formal record and redistribute to Executive Committee. Administrator to prepare feedback to the WLA for consideration at WLA Executive (complete). APLA Executive Committee Meeting 1 May 2012 DRAFT Page 2 of 9
5.2 5.3 hands of illegal organisations (disclosed figures) Other comments included: 1. Useful for showing to Government global Lottery trends rather than being used for cost base 2. Commercial organisations such as La Fleurs are trying to collate information and publish it 3. Its good for WLA to collect information and grasp general trends however aggregate data averages requires a lot manipulation. 4. The role of WLA should be to develop a standard form for information gathering 5. Australia is very advanced compared to most Lotteries in Asia 6. Sharing of information with WLA should be a matter for individual Lotteries to determine instead of providing the information through the Regional Association. 7. Lotteries that choose to share the information should have access to the results and those that don t share shouldn t. Comments to be complied in response to WLA. Website Competition Ms Jody Nunn is to distribute APLA website brief outside the meeting by 30 May 2012. Feedback from the Executive Committee is to be provided to Ms Jody Nunn by 30 June 2012. The APLA website brief is to be finalised and a quote submitted for the next meeting in November. Sponsorship The paper prepared by Ms Jody Nunn was noted. It was agreed that tiered sponsorship should be considered for future events. The Chairman, Vice Chairman and Administrator to confirm at November s meeting. Feedback from APLA/WLA Seminar 2012 Sponsors to be taken into consideration for future events. Future Sponsorship Models: The benefit includes preventing competition between WLA and APLA. Mr Henry Chan felt that it was making it too complicated as we don t require large amounts of money from Sponsors. The main purpose of these events was not for the money but rather strengthening partnerships and finding out about latest trends. Mr Tan Soo Nan agreed and said that WLA should let us know the sponsorships they have reached with key sponsors. Administrator to complete draft of Web Brief. Executive Committee to provide feedback. Final draft and budget to be supplied to Executive Committee at next meeting in November. Administrator to follow up with APLA Seminar Sponsors for feedback (complete) Administrator to draft and distribute sponsorship packages to potential sponsors for APLA Conference. President, Vice President and Treasurer to review the sponsorship packages before they are distributed (complete). APLA Executive Committee Meeting 1 May 2012 DRAFT Page 3 of 9
It was suggested that we rotate sponsors within APLA Seminars. It was proposed that APLA to continue on our own unless sponsors are happy to negotiate with WLA and APLA jointly. Mr Seta commented that in their case associate members have no interest in dealing with overseas Lottery Associations as they have no benefit for Japan. This sentiment was shared by a number of Executive Committee Members. APLA doesn t require large amounts of money from Sponsors. The main purpose of these events was not for the money but rather strengthening partnerships and finding out about latest trends. Mr Tan Soo Nan agreed and said that WLA should let us know the sponsorships they have reached with key sponsors. It was suggested that we rotate sponsors within APLA Seminars. It was proposed that APLA to continue on our own unless sponsors are happy to negotiate with WLA and APLA jointly. 5.4 Membership Incentives 2012 The Treasurer considered increasing Membership payment however didn t consider it necessary at this stage. Questions were raised on whether the same membership will apply to Australian Lotteries and the low participation at APLA events from Australian Lotteries. The Chairman advised that the main reason for low participation rates from Australian Lotteries was due to overseas travel requiring approval by the Government (SA Lotteries and Lotterywest) or the Board (Tattersalls). It was suggested that subsidising the fee would not be an issue and the Executive Committee could subsidise travel costs. Concerns were raised as to the proposed cost of US$1,250 per member for the next APLA conference in Sydney and it was suggested that cost savings should be explored. The conversation was put on hold until Ms Sue van der Merwe was present. 6. Chairman s Report Members noted the report from the Chairman included in the meeting papers distributed prior to the meeting. In particular 1.3 and 2.4. 1.3: Questions were raised on the relevance of involving APLA as only a handful of Members do sports betting and we are less sophisticated compared to European Lotteries. 2.4: The Executive Members considered nominations for the CSR Working Group (Hong Kong Jockey Club or SA Lotteries). Chairman to confirm who from SA Lotteries APLA Executive Committee Meeting 1 May 2012 DRAFT Page 4 of 9
7. 7.1 7.2 7.2.1 7.2.2 7.3 As SA Lotteries were the first to receive Level 4 certification it was agreed that SA Lotteries will represent the Asia Pacific Region. The Chairman is to confirm whom from SA Lotteries will be the Asia Pacific Region representative. The Chairman confirmed that all APLA Members have achieved a minimum Level 1 accreditation. Treasurer s Report Audited Financial Statements: 1 January 2011 to 31 December 2011 The Treasurer reported that it has been a good year and that there will be approximately $87k surplus from the two APLA events. Membership fees for the year total $36,200. The Report is to be updated with Lotterywest s address instead of SA Lotteries. It was proposed that the Audited Financial Statements for the period of 1 January 2011 to 31 December 2011 be approved. Proposed: Seconded: In favour: 9 Against: 0 Abstentions: 0 Motion: Carried Mr Lawrence Lim Mr Henry Chan Audited Financial Statements: 1 January 2011 to 31 December 2011 to be submitted to AGM for approval. Financial Report Income and Expenditure Statement from 1 January 2012 31 March 2012 The Treasurer commented that there had been no major changes in 3 months. The Executive Committee noted the Income and Expenditure Report from 1 January 2012-31 March 2012. Balance Sheet as at 31 March 2012 The Treasurer commented that there had been no major changes. The Executive Committee noted the Balance Sheet as at 31 March 2012. Members Fees: Outstanding The Executive Committee noted the report which was submitted prior to the meeting. The Treasurer commented that there were five Full Memberships outstanding. NSW Lotteries and Golden Casket Lottery Corporation now fall under Tattersalls. The Chairman suggested that the outstanding Tattersalls invoices are sent to Tattersalls Head Office. The Treasurer is to keep the Chairman informed about the progress of payment of these will be the Asia Pacific representative on the CSR Working Group (complete). Treasurer to update report with correct address. Treasurer to advise Chairman about progress of Tattersalls payments (complete). APLA Executive Committee Meeting 1 May 2012 DRAFT Page 5 of 9
invoices. As Future Gaming Solutions India Private Limited are two years in arrears and that they don t attend any APLA events is was suggested that their membership is suspended and that the amount owing is written off. Letters to Future Gaming Solutions India Private Limited and Pan India Network Infravest Pvt. Ltd are to be sent advising of suspension of membership in accordance with the By-Laws with a deadline of 30 June 2012 for outstanding payment, was agreed 8. Administrator s Report Treasurer to prepare letters suspending memberships. The Executive Committee noted the report which was submitted prior to the meeting. The Chairman noted that the APLA website visits to August 2011 in the report required updating. 9. 9.1 10. 10.1 10.2 Membership Membership interest / approaches The Executive Committee noted the report which was submitted. Latest figures to be circulated outside the meeting. Philippine Charity Sweepstakes Office, Moore Stephens and Pollard Banknote approvals to be sought from the Executive Committee outside the meeting. APLA Activity Plan 2012 APLA / WLA Regional Seminar: Singapore Pools The Treasurer circulated documentation during the meeting. He commented that they tried to keep costs under control by using Singapore Pools staff and depending on the final cost of social events there would be a surplus of approximately $35k generated from the event. Mr Tan Soon Nan suggested that the surplus was used to give participants a gift and expand on the quality of food. 97 registered 81 participants 14 sponsors 2 late cancelations 95 total participants 2012 APLA Regional Conference: Tatts Lotteries The Chairman welcomed Ms Sue van de Merwe from Tatts Lotteries to present details of APLA conference in September. Sue is a member of the local organizing committee and Tatts will be using the same committee as the successful WLA event in Brisbane (Angela, Alissa, Bill, Sue). Sue advised they are well advanced in their preparations. The Administrator to circulate figures and applications to Executive Committee for approval. APLA Executive Committee Meeting 1 May 2012 DRAFT Page 6 of 9
event will take place in Sydney and the theme will be Sailing the Winds of Change. The logo has been designed especially for the conference. The venue will be Shangri-La Hotel. The opening dinner will take place in The Ballroom. Cost would be $1250 per member and Sue was confident that they will get 140-150 participants. (Min 130 participants required to break even.) The Chairman opened for questions re: budget. Mr Tan Soo Nan queried accommodation fee as he felt the Shangri-La was an expensive hotel and suggested Tatts look for a less expensive hotel. He ask if we are imposing a minimum take and Ms Sue van der Merwe confirmed this and there is a minimum 125 delegates per day to have the room hire fee wavered. Mr Tan Soo Nan asked if the assumption rate used was $1250 and what the biggest costs were. The assumption rate was confirmed by Ms Sue van der Merwe and provided a break down of some of the costs including: 1. Transport: $9.2k 2. Printing: $6.25k 3. Venue hire: $5k 4. Closing dinner: $22k 5. Photographer: $4k 6. Business networking day (harbor cruise): $16k 7. Day delegate package (Wednesday and Thursday): $26.5k 8. Bank charges 9. Registration process fee: $10 per person (same process used for WLA) Ms Sue van der Merwe to provide a break down of costs, look at it from the individual participant cost, provide more detail on number of attendees, and provide other hotel options for participants and final speaker list and conference costs. The Executive Committee to provide comments and consider whether APLA could provide some funding to make conference more manageable for participants. The Chairman thanked Ms Sue van der Merwe for the presentation. Tattersalls to provide further cost breakdowns, hotel options, conference costs and speaker list (complete) Executive Committee to provide feedback on conference program and final budget 10.3 10.4 The Administrator was approached by Korea re: holding 2013 APLA / WLA Seminar. Executive Committee Members to share any suggestions outside of meeting and a decision needs to be made at the next meeting in November. APLA Executive Committee Meeting 1 May 2012 DRAFT Page 7 of 9
11. 11.1 Other Business Executive Committee Nominations for AGM Ms Jody Nunn to forward to all members seeking re-nomination. Mr Henry Chan noted that he will be retiring and would consider nominating someone from Hong Kong Jockey Club. The Chairman said it was important for Hong Kong Jockey Club to renominate. Mr Tan Soo Nan, Mr Teisaburo Seta and Mr Wayne Pickup will be re-nominating. Ms June Roache will be stepping down as Chairman. Administrator to distribute nomination forms. Chairman to approach Mr Bill Thorburn and Ms Jan Stewart as potential nominees to the Executive Committee. A vote will be required by the Executive Committee for Chairman and Vice Chairman. The Chairman noted that in accordance with the By-laws there can be no less than five members and no more than seven members on the Executive Committee. It was suggested that the Tatts Lotteries Chief Executive may be a potential candidate for the Executive Committee; however, the Chairman advised that a discussion had been held with Bill Thorburn but his personal circumstances may not provide time. The Chairman also suggested that Ms Jan Stewart, Lotterywest may consider joining the Executive Committee, however the Chairman has not discussed this with Ms Jan Stewart but would do so. 11.2 WLA Chairman Nominations The Chairman advised that the current WLA President will not be seeking re-election as he is retiring. There will be a vacancy as Senior Vice Chairman (Mr Henry Chan) is also retiring and will be stepping down in September 2012. There will be an election for the WLA Chairman and any nominations should be put forward to Mr Henry Chan as soon as possible. The process will take place in the next couple of months. 12. 12.1 12.2 Next Meetings Executive Committee Meeting Monday 26 November 2012, 3.00pm at Shangri-La Sydney, The Harbour 409. Annual General Meeting Thursday 29 November 2012, 3.30pm at Shangri-La Sydney, The Grand Ballroom. APLA Executive Committee Meeting 1 May 2012 DRAFT Page 8 of 9
13. The Chairman thanked everyone for their attendance. The meeting closed at 5.10pm. APLA Executive Committee Meeting 1 May 2012 DRAFT Page 9 of 9