Crowd - Why the world is ready for the crowdlottery

CROWD!Why the world is ready for the crowd lottery
Jasper Versteege

Everybody deserves a fair chance in life
Technology reduces overhead
costs, connects the world and
makes it possible to challenge the
status quo in traditional markets.
The power of crowds can be used
to democratize the current lottery
systems. Together we can create
better chances for everyone.

01
Time for the Crowd
Lottery
Pages 7-12
02
The Power of
Crowds
Pages 13-18
03
Crossing
Boundaries
Pages 19-29
INTRO
Pages 4-6
A Brief History...
TABLE OF CONTENTS
What is a crowd
lottery?
The world’s first crowd
lottery
An improvement on all
levels
Everybody wins
The time is now
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New ways to get
organized
Purchasing power
The crowd as a source
Power to the crowd
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A connected world
Forces shaping the
future
Speed of development
Double moral
standards
Gamblers vs. chance
takers
Economic fears
Auditability and
accountability
Into the future
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+
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A BRIEF HISTORY...
They built wonders of the world
The first recorded signs of a
lottery are keno slips from the
Chinese Han Dynasty between
205 and 187 B.C.
A spurious legend has it that the invention of
the game saved an ancient city in time of
war, and its widespread popularity helped
raise funds to build the Great Wall of China.
Lotteries are as old as we are
The lottery is one of the oldest
games in the world. They even
refer to it in the Old Testament
more than once, for example;
.”..and the lot puts even contentions to rest,
and it separates even the mighty from one
another” (Proverbs, XVIII, 18).
They are a fair tool
Ancient Athens is one of the first
known democracies and they used
lotteries (via a kleroterion, seen on
the right) to select citizens for most
state offices and court juries as it
was regarded as fairer and less
subject to corruption.
4000 B.C.
550 B.C.
200 B.C.
© WTA Gaming Ltd. 2014 4

They aided the poor
The first lotteries with monetary
prizes were held in the Low
Countries in the 15th century to
raise money to aid the poor and
fund fortifications of the towns.
In fact, the English word lottery is derived
from the Dutch word loterij which stems
from the Dutch noun lot meaning "fate".
They have been running for a
long time
The Dutch state-owned
Staatsloterij is the oldest running
lottery in the world.
They funded revolutions
The world famous universities
Princeton and Columbia were
funded by lotteries and at the
outset of the Revolutionary War,
the Continental Congress used
lotteries to raise money to
support the Colonial Army.
We might say the United States of America
are not only founded by its fathers, but also
funded by its lotteries.
1445 A.D.
1726 A.D.
1740 A.D.

THE PRESENT
Nowadays lotteries have grown
into large corporations which
come up with complicated prize
schemes that result in ridiculous
jackpots but actually diminish
someone’s chance to win.
And large parts of their income go
straight into immense marketing
budgets aimed at maximizing the
amount of money people spend
on lotteries.
Time for change.

WHAT IS A CROWD LOTTERY?
Every player counts as one
All stakes are paid out
Admin fee on top of stakes
Every player counts as one; this
determines the structure of the
lottery. It limits gambling and
creates equal chances for
everyone.
All stakes are paid out; this
removes the ‘house’ from the
game. It guarantees payouts and
winners.
Admin fee on top of stakes; this
adds a layer of transparency. It
makes sure all overhead costs are
clearly communicated by the
operator so players know exactly
what they are paying.
Crowd lotteries are social and
more transparent than traditional
lotteries. They lead to better
odds, higher payouts, lower costs
and still act as fundraiser for
charity.
A crowd lottery is built on three very simple principles.

THE WORLD’S FIRST CROWD LOTTERY
Here’s how the world’s first crowd
lottery works;
• 1 euro per ticket
• 1 ticket per draw
• 1 draw per week
• 1 winner takes all
This means the jackpot equals the
number of players, and the size of
the crowd determines your odds.
However, there is always
someone within that crowd that
takes home the jackpot.
Guaranteed.
CrowdLottery.com uses the certified Random Number Generator ISAAC to
randomly select the Lucky Ones. There is still a challenge and small reward
associated with breaking ISAAC.
CrowdLottery.com gives you the best possible chance
to hit the jackpot for the least amount of money.
CrowdLottery.com uses the
winner-takes-all-principle and the
power of crowds to create the
best possible chance to hit the
jackpot for the least amount of
money.
As a crowd, we can unite the
world in one game while
spreading happiness and creating
better chances for everyone in a
social & transparent way.

Lower costs
Limiting the number of tickets
people can buy per draw limits
the amount of money people can
spend on crowd lotteries.
AN IMPROVEMENT ON ALL LEVELS
The simplicity of the crowd lottery underlines the unnecessary complexity of
other lotteries. Simplicity gives players a better chance, a higher payout
percentage, and it lowers their costs. An improvement on all levels.
100%
Higher payouts
Seperating the operating costs
from the stakes improves
transparency and dramatically
increases the payout ratio.
Better odds
Odds increase significantly thanks
to the direct link between the size
of the crowd (no. of players) and
the prize money.
© WTA Gaming Ltd. 2014 10Visit crowdlottery.com for more info.

THE LOTTERY OF THE 21st CENTURY
Lotteries should be about realizing people’s hopes and dreams, not about
maximizing the company’s profit.
4%
9%
87%
Transaction fee Admin fee Prize money
We live in a connected word an
the sharing economy is in full
swing, yet there is no such thing
as a digital lottery for the world.
Together, as a crowd, we can cut
out the middleman, minimize
administration fees and marketing
costs, maximize payouts and
generate the best possible odds
while sharing happiness on a
global scale.
The crowd lottery concept is an
improvement on all levels: it truly
is the lottery of the 21st century.
Power to the crowd!
DISTRIBUTION
OF FUNDS
Including administration
and transaction fee

THE TIME IS NOW
The crowd lottery is a new
concept that only works when the
volumes are big enough to profit
from economies of scale.
The only thing a
crowd lottery needs
is a crowd.
Thanks to the internet and social
media it is possible to target a
global crowd and connect with
people from all over the world.
Technology keeps overhead costs
low and makes it possible to
accept online payments from
around the globe.
The conditions are right, all it
takes now is people who join the
crowd and become Ambassadors
of Happiness.

NEW WAYS TO GET ORGANIZED
The power of the masses has
always been an important force
that helped shape the world.
Crowds are online versions of the
masses, only crowds do not need
to be in the same place physically.
This gives people new ways to get
organized and use the power of
crowds.
The internet already played an
important organizational role
during the Arab Spring and
continues to create new
opportunities.
Time to get organized.

PURCHASING POWER
Thanks to the internet it is now
possible for individual consumers,
as part of a crowd, to leverage
their purchasing power in order
to get better deals or easier
access to certain products.
Group-buying sites like Groupon
work by negotiating better deals
with local merchants and in turn
promise to deliver crowds in
exchange for those discounts.

THE CROWD AS A SOURCE
Crowdfunding sites like
Kickstarter create a market for
new products or projects that are
not necesserily for the masses. In
reaturn it gives people rewards
and a chance to directly support
initiatives or products they like.
Crowdfinancing sites like Funded
By Me offer easier access to
capital for businesses and
startups. The crowd has the
possibility to invest into
companies directly and in return it
gets interest or share capital.
Crowdsourcing websites like
99designs offer businesses easier
access to a large group of people
with the needed skill set. In return
it provides those people with a
potentially global market and an
easier way to get new jobs.
Crowds cannot only get better deals, but they also provide easier access to
resources. Whether it is services, designs, ideas, content or capital; the
crowd has it. New platforms are built everyday to link people, projects,
businesses and organizations directly in a mutual beneficial way.

POWER TO THE CROWD
A crowd lottery uses the
purchasing power of crowds to
create the best possible odds for
the least amount of money and in
a fair and transparent way.
A crowd lottery also uses the
crowd as a source to fund
random people’s dreams and to
support charity. Everybody wins.
Traditional lotteries are not built
to maximize the player’s chance
or to limit the player’s costs.
Today people are finally
empowered to challenge the
status quo. Time to do something
about it.
Power to the crowd!

“I believe it is possible to have a positive
impact on this world by leveraging the
power of crowds. Leveraging works best
if you manage to keep efforts at a
minimum and rewards at a maximum.
CrowdLottery.com is the perfect format
to leverage this power; together we can
create better chances for everyone!”
Jasper Versteege
Founder & Ambassador of Happiness
CrowdLottery.com

A CONNECTED WORLD
We are all global citizens and
thanks to internet, social media
and the smartphone everybody
has the world in its pocket.
The ever growing internet and
globalization forces us to
restructure our world. The next
step should be further integration
and cooperation, not separation
and protectionism.
Source: http://www.slideshare.net/wearesocialsg/social-digital-mobile-around-the-world-january-2014
93%
26%
35%
52%
URBAN
INTERNETPENETRATION
SOCIAL NETWORKINGPENETRATION
MOBILEPENETRATION
7.095.476.818
TOTAL WORLD POPULATION
2.484.915.152
INTERNETUSERS
1.856.680.860
ACTIVE SOCIAL NETWORKUSERS
6.572.950.124
MOBILESUBSCRIBERS

FORCES SHAPING THE FUTURE
The internet should open up the world, it should not be used to close it
down. Luckily the core values on which the internet was built have some
internal forces that will shape the future. It is up to the crowd to protect
them.
Openness Transparency Cooperation Trust
The open and
decentralized
nature of the
internet links the
world in a unique
way and enables
it to be a patform
for innovation
and creativity that
should be
preserved.
As long as
transparency
remains a driving
force behind
technological
developments,
accountability and
freedom of
information will be
safeguarded.
If the internet is
open and
transparent it
leaves room for
individuals to do
their part, how
insignificant it may
seem. The whole is
much more than
the sum of its
parts.
With the before
mentioned values
in place trust will
rise which in turn
will rise our trust in
its core values. A
virtuous circle that
will move this
world forward in
the right way.

SPEED OF DEVELOPMENT
When it comes to gambling
governments have a strong moral
reason to restrict market access;
addiction. Most citizens probably
agree addictions are something
that should be prevented as
much as possible.
Borders are fading, governments
are under pressure and markets
are expanding. Naturally, these
opposing forces bring in
limitations on the speed of
development.
Since 2006 the United States prohibits online gambling sites from
performing transactions with American financial institutions in order to
keep gambling profits within its own borders.
This is possible because almost all US citizens use credit cards for online
payments, and the credit card companies are American.
Governments also have a very
strong economic reason to keep
the gambling market within its
powers; taxes. This is probably
something which is of less
concern to its citizens.
The fear of losing income forces
governments to use erroneous
and hypocritical reasoning that
leads to seperation and
protectionism.

Now back to the crowd lottery.
Lotteries are considered gambling
in most countries. This gives the
government a moral reason to
strongly regulate those markets
and tax it heavily.
This moral reason is built on the
presumption gambling is bad, a
priori. It is addictive, it is based on
chance and can have negative
social effects. But the same thing
can be said about some forms of
stock trading, and why do
governments offer lotteries
themselves?
This raises the question whether
crowd lotteries should be
considered gambling at all.
The addictive powers of a crowd
lottery are very limited.
Most addictions depend on
actions which give people a quick
and positive kick. Crowd lotteries
are infrequent and in each lottery
the losers greatly outnumber the
winners, so the kick is not that
positive.
Another dangerous part of
addiction might be the illusion of
control.
Betting on uncertain outcomes
(casino games, sports results,
selecting winning numbers) gives
players a false notion of influence;
if they had chosen something else
they would have won, so it
depends on their own actions.
Participating in a crowd lottery is
a calculated decision with a very
low risk of addiction.
DOUBLE MORAL STANDARDS

GAMBLERS VS. CHANCE TAKERS
My point is not necessarily that lotteries should not be viewed as gambling,
a lottery is still a game of chance, but I do want to show governments do
not have a very strong moral reason to be against a crowd lottery. What is
wrong with taking a chance evey now and then?
Gamblers Chance takers
Want to get rich quick Want to get rich without the hassle
Are looking for a quick win Are looking for the best opportunity
Like highly repetitive games Assess their chances
Are betting on uncertain outcomes Hope fortune favors the bold
Have the illusion of control Are conscious of the consequences
Continue despite adverse consequences Quit when they don’t like the odds

ECONOMIC FEARS
However, there is no need for
national governments to close off
their online borders. Thanks to
technology a crowd lottery is
perfectly taxable.
Game tax on prize money and
income tax on profit can be
calculated based on the player’s
nationality and paid out to every
single country seperately.
The internet is a force which
pushes us forward in creating a
global market.
Governments should try to work
with instead of against this force.
When we look at the economic
reasons for governments to put
limitations on the development of
the online lottery market the fear
of losing income through taxes is
an obvious one.
On top of that most governments
run state lotteries (it is not
without reason lotteries are often
seen as a painless form of
taxation) which will need to
compete with new initiatives.
Governments can still tax the operators profit and
the player’s winnings.

AUDITABILITY AND ACCOUNTABILITY
It is impossible for companies
who trade online to know every
single law in the world.
When a company’s business
model and business practices are
transparent, trustworthy and fair
it makes a company auditable
and accountable.
Crowd lotteries are perfectly
taxable per country while
gambling addiction and money
laundering can be prevented.
From an economic perspective
governments should focus on
auditability and accountability on
an international level instead of
focussing on protecting their own
income on a national level.
The next step is further
integration and cooperation.

INTO THE FUTURE
To sum it all up; when you look at
the pros and cons on the left it is
clear it will be a matter of time
before the crowd lottery will set
the standard.
It is up to the crowd to start using
its power to challenge the status
quo. It is time to move forward.
Time to cross boundaries.
+
+
+
+
+
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Players get better odds while their costs are
being limited.
Charities can still get funded through
crowd lotteries.
Governments can still tax the company’s
profit and the player’s winnings.
Crowd lotteries are not addictive and
gambling is limited.
Money laundering through crowd lotteries
is impossible.
Total tax return for governments might be
lower.

TIME TO THINK GLOBAL
CrowdLottery.com already reached players in more than 50 countries.

SPREAD THE WORD
Together we can unite the world in one game while spreading happiness
and creating better chances for everyone in a social & transparent way.
Join the crowd and become an Ambassador of Happiness!

About the author
Jasper Versteege is a philosopher and
entrepreneur who believes everybody
deserves a fair chance in life. As a
global citizen living in a connected
world he sees fresh opportunities to
restructure the world in fair and
transparent ways.
He is the founder of the world’s first
crowdlottery; CrowdLottery.com.
By developing the crowd lottery he
hopes to fulfill his lifelong dream to
become a philanthropist and make a
difference in the world.
Historically lotteries have always been a
means to achieve philantropic goals.
Launching CrowdLottery.com thus feels
like a natural place to start challenging
the status quo.
We are all Ambassadors of Happiness.

CrowdLottery.com is the world’s first crowdlottery.
Our mission is to unite the world in one game while spreading
happiness and creating better chances for everyone in a
social & transparent way.
We believe that together we can have a positive impact on this
world by leveraging the power of the crowd.
Leveraging the power of the crowd works best if you manage to
keep efforts at a minimum and rewards at a maximum. Thanks to
internet and low ticket prices our players can effortlessly
participate in a rewarding lottery that not only makes it winners
happy but also collects money for the greater good.
Join the crowd on crowdlottery.com
We are all Ambassadors of Happiness.

Crowd - Why the world is ready for the crowdlottery

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Crowd - Why the world is ready for the crowdlottery