NOVEMBER/DECEMBER 2020

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EXECUTIVE SUMMARIES OF PGRI EXPO AND POST-COVID19 LOTTERY: THE MOVIE

ROUNDTABLE DISCUSSIONS • SWOT Applied to the Lottery Industry • What are the key drivers for success in the world of online lottery? • Digitization of the in-store shopping and player experience • Maximizing the Potential of Instant Scratch-offs to Continue to Drive Growth NAVIGATING THE FUTURE of progressive new products. Whether you’re a supplier creating new inventions, a regulator approving new technologies, or an operator who wants new experiences for your players, GLI can help. Land-based, lottery, online, sports betting, and more, we’re navigating the future

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CONTENTS Publisher & FEATURED INTERVIEWS Chief Executive Offi cer Paul Jason [email protected] 10 22 President Susan Jason [email protected] Brand and Design Dan Eggers Design Honored Founders Doris & Duane Burke Contact Information T: +425.449.3000 F: +206.374.2600 For email address changes, 22 The future of Digital: Looking into the Post-COVID19 World subscription requests and Sharon Anderson, Head of Digital – (The Lott) Tabcorp requests to be placed on our e-Newsletter distribution list, contact: FE ATU R E D A R TIC LES [email protected] PGRI, Inc. 9 The Reviews Are In! Lottery Expo: 14 Strengths, Weaknesses, 218 Main Street, #203 Transformed and POST-COVID19 Opportunities, Threats Roundtable Kirkland, WA 98033 PublicGaming.com Lottery: The Movie Executive Summary of SWOT 10 What are the key drivers for Roundtable Subscriptions Annual Public Gaming success in the world of online May Scheve Reardon, Executive International magazine lottery? Director, , Chair of subscription rates: Executive Summary of the Group iLottery Roundtable United States: $145 USD Gretchen Corbin, President & CEO, Canada & Mexico: $160 USD Gretchen Corbin, President and Lottery Corporation All other countries: $225 USD Chief Executive Offi cer, Georgia Rebecca Hargrove, President & Lottery Corporation Public Gaming CEO, Tennessee Education Lottery International Magazine Richard Bateson, Chief Commercial Corp. and President of the World Published six times a year and Offi cer, JUMBO Interactive Lottery Association distributed to readers all around Kevin Hall, Executive Director, Gordon Medenica, Director, the world. Electronic version is & Gaming and Lead e-mailed and is also available on Doug Pollard, Co-Chief Executive Director of our news website: Offi cer, Pollard Banknote and Co-CEO Drew Svitko, Executive Director, PublicGaming.com of NeoPollard Interactive Bret Toyne, November/December 2020 Executive Director, MUSL (Multi-State Stephanie Weyant, Deputy Volume 47, Issue 6 Lottery Association) Executive Director, Marketing & ©2020 all rights reserved. Product Development, Pennsylvania Bret Toyne, Executive Director, MUSL Public Gaming Research Institute Lottery (Multi-State Lottery Association) cISSN: 1042-1912 Andrea Williams, Senior Marketing Manager - PlayLottery, IGT

4 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 5 FE ATU R E D A R TIC LES Visit Our Family 16 Digitization of the in-store Scientifi c Games Of Websites shopping and player experience 31 LotosXi: Empowering Lotteries Executive Summary of the in their “fi ght” against the Digitization at Retail Roundtable pandemic Gary Grief, Executive Director, Sotirios Sklavounos, Customer Experience Director, INTRALOT PublicGaming.com Panelists: Group industry news & information 32 Fast Forward to the Future: Michelle Carney, Vice President PGRITalks.com Global Lottery Marketing, IGT Applying research driven solutions to support lottery videos of conference presentations Maxwell Goldstein, Vice President customers in the transition to Sales, Carmanah Signs PublicGaming.org what’s next PGRI conference information Nick Papadoglou, Chief IGT Commercial Offi cer, INTRALOT US 36 Lotteries, Casinos and iLottery: PGRIDigitalLibrary.com Jennifer Westbury, Executive A partial product solution in the magazine archive of past issues Vice President Sales & Customer time of Covid-19 and Beyond? PGRIDirectory.com Development, Pollard Banknote Dr. Barry Goodstadt, Principal listing of lotteries and vendors 20 Maximizing the Potential of and Founder of Telecom, Utility & Instant Scratch-offs to Continue Regulatory Consulting, LLC, PGRIAwards.com to Drive Growth 38 Staying Ahead of the Game Showcase of industry honorees Executive Summary of the in Extraordinary Times: IGT recognized by the Instant Scratch-off Roundtable Sustainability Report Lottery Industry Hall of Fame Beth Bresnahan, Executive 50 Team USA is ready to bring its PGRI Lifetime Achievement Award Director, DC Lottery inspiring, unifying, patriotic, and Sharp Award for Good Causes David Barden, Chief Executive optimistic characteristics to U.S. Lottery Industry Statesman Offi cer, Lotteries and Stateswoman Award Charles McIntyre, Executive Rebecca Hargrove Mentorship Award Director, Lottery Collaboration Award Meghan Dondero, Regional Vice 20 President, Scientifi c Games Mike Purcell, Senior Vice President of Sales & Marketing, Kentucky Subscribe To Our Lottery Corp. Free Digital Newsletters Brad Thompson, Vice President Receive our daily newsletters at no Sales & Marketing, Pollard charge, published 5 times a week Banknote to bring you the latest breaking 26 6 Take-Aways from 2020: news in the global lottery industry. Actionable Insights for Lotteries Send an e-mail to: [email protected] with “add to Daily Digest list” DEPARTMENTS in the subject line.

8 From the Publisher Paul Jason 21 MUSL & WLA Collaborate to Expand Uniform Security Standards MUSL NEWS (Multi-State Lottery Association) 46 Pulse of the Industry Synopsis of Recent Industry News

6 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 When Seconds Count, Dollars Shouldn’t

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One of the big themes to emerge from the recreational venues? We know that iLottery e executive summary of the Instants terrible ravages of pandemic is that trends sales sky-rocketed during the shut-down Roundtable discussion was led by Beth are accelerating. Consumer are adopting period. I would think we can expect that Bresnahan who was joined by four other new behaviours (like online ordering, self- at least some of those players who were new industry leaders with special insight into the service vending, enjoying local recreational to iLottery as a result of the pandemic will underlying dynamics of what drives Instant gaming options instead of travelling to resort continue to play online. But how many? Scratch-o sales. gaming destinations, playing the lottery And what can we do to retain the player-ship Gary Grief led the Digitization of the online) much more quickly. Technologies of these iLottery newcomers? in-store shopping and playing experience like video-conferencing are skipping the Likewise Instant Scratch-o s. Sales Roundtable. e exec summary re ects the whole “early-adopter” stage and moving increased in this category as well. We do not con dence that industry leaders have in the right into mass-market acceptance. With have data to explain exactly why Scratch- momentum going forward to invest in the positive expectations for a fast deployment requisite technologies that will drive retail of vaccines, maybe we can hope for a return modernization. to some semblance of “normalcy” in six “I would think we can or seven months – just in time for the EL expect that at least some And then there is the over-arching theme Congress in the ancient city of Šibenik of how we begin to analyze the e ects Croatia on the Adriatic coast the end of of those players who of the major disruptions of the past nine May. Certainly we will be more than were new to iLottery as a months, and what do we do about it. May ready to convene at the annual NASPL big result of the pandemic will Scheve and panel of experts applied the trade-show and conference event the end “SWOT” methodology to the process and of September in Kansas City. PGRI’s next continue to play online. led a most provocative discussion that is in-person event, PGRI Lottery Expo will But how many? And also summarized here as well as available for be held in Nashville on October 26 to 28. what can we do to retain viewing on PGRItalks.com. e question still looming over us, though, I want to thank Scienti c Games, IGT, and is what the “new normal” will look like. I the player-ship of these INTRALOT for their exceptional editorial think we can expect, for instance, that iLottery newcomers?” contributions to this issue. And thank video-conferencing will continue to be a big you to Jim Acton for editing the executive part of our lives. It has been so vital to our o sales went up so much. But some are summaries of the Roundtable discussions. ability to function and still manage to get surmising that the lack of other gaming e success of “Post-COVID19 Lottery: the the job done in this period of extreme social and entertainment options (not just the Movie” has inspired us to develop a series distancing. But once the social distancing shut-down of casinos but also movie theatres, of six 3-hour virtual seminars that we have constraint is relaxed or lifted entirely, does restaurants and recreation where people dubbed PGRI Live! We hope you join us that mean we will go back to hopping on gather together) caused people to turn to the from 1:00 pm to 4:00 pm Eastern Standard airplanes to engage in-person meetings with games available everywhere in their local Time (EST): the frequency of pre-COVID days? I think C-stores. 1. January 20: iLottery everyone agrees that in-person interaction is I know you will  nd the executive an important component to the preservation summaries of the Roundtable discussions 2. February 17: Retail Modernization of a corporate culture and social fabric that is held as a part of Post-COVID19 Lottery: 3. March 17: Regulatory Modernization healthy and comports with the fundamental the Movie most useful. You can also see and the Politics of Gaming human need to bond and get to know each the video-recording of the entire conference Follow PublicGaming.com (PGRI other. But video-meetings have proven to (or any portion that you want to select) on home-page and news website) for virtual be quite e ective as the communication PGRItalks.com. hub that enables collaboration, teamwork, conference and webinar updates, and to and the functioning of even large-scale We have two big iLottery features in this track the production process as we work enterprises. On another front, I asked a few issue. First, there is the executive summary together to create a new kind of experience, people about the ongoing utility of print of the fabulous iLottery Roundtable led by digitally transformed to not just enable but versus digital media (and print magazines Gretchen Corbin and featuring  ve other enrich and enhance the joy of working and like this one) and was pleasantly surprised to iLottery industry leaders. en there is the striving together. learn that people do still love to receive the feature interview with Sharon Anderson of print magazine. Australia’s e Lott for her assessment of the future of iLottery in the post-COVID What about iLottery – how has the world, and for insight into e Lott’s evolution of online gaming been impacted strategies for optimizing the future of digital Paul Jason, Publisher by the chilling e ect of the pandemic on platforms going forward. shopping and going to casinos and in-person Public Gaming International Magazine

8 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 The Reviews Are In! Lottery Expo: Transformed and POST-COVID19 Lottery: The Movie Jim Acton, Lottery Industry Consultant

etting back to normal hasn’t been has paid dividends, particularly with the instant present, question, collaborate and learn. quite as quick or easy as we had ticket product. Overall in FY2020, traditional lot- The Roundtable presentations featured small hoped it would be, with the return to tery (including draw games) sales were basically groups of thought leaders discussing the top is- the offi ce for many being postponed fl at at $80.7 billion (estimated based on states sues we are all facing. These presentations offer from Labor Day to January 1 and ix with fi scal years ending in June and others with timely case studies and sage advice to those on Gof in-person and remote learning. Grocery store later end dates). Instant tickets, though, helped the frontlines of the lottery industry activities, shelves have started to revert to their spring boost most lotteries’ revenue, with nation-wide providing roadmaps for navigating these unchar- states, with cleaning supplies again scarce in sales jumping 7% over FY2019 to $53.6 billion. tered roads. This special Roundtable overview some areas. Multi-state jackpot games took a big hit, with features: One constant has been the lottery industry, both Mega Millions and Powerball having to cut • The Big Picture: Impact of COVID on the which, unlike casinos and land-based venues, the automatic jackpot increases due to lagging Global Lottery Industry was never forced to shut down in most jurisdic- sales. tions. That has turned out to be a very good thing While the lottery industry has survived most of • Digitization of the In-Store Shopping and for U.S. states with strained budgets which rely the 2020 headwinds, the route forward is cer- Player Experience on lottery revenue to make up for shortfalls in tainly not clear just yet. And the best opportuni- • iLottery: What Are the Key Drivers for Suc- other areas. Retailers have also needed the foot ties for lotteries to communicate and collaborate cess in the World of Online Lottery traffi c created by lottery customers, for both – industry conferences and meetings – have • Maximizing the Potential of Instant Scratch- lottery sales and the residual purchases that moved to the virtual world and will stay there offs to Continue to Drive Growth always end up in the lottery player’s basket. for at least the fi rst half of 2021. But like other • How Does the Lottery Industry Look For both lotteries and commercial partners, the areas of our industry, the conference business is Through a SWOT Analysis pandemic provided a host of challenges and adapting to current conditions and constraints. opportunities. For lotteries, enabling employees One highlight of the lottery calendar is the an- Three days of insights and spontaneous conver- to work from home was a new dynamic but one nual fall PGRI Lottery Expo. Typically held in New sation from industry thought-leaders reinforced which balanced safety and customer service. York City, this year the event was re-branded as that the lottery industry is run by outstanding Early returns indicate that the new work-style is, “Lottery Expo: Transformed and POST-COV- professionals on both the lottery and commercial well, working, with many lotteries now consider- ID19: The Movie.” With a mix of live presenta- partner sides of the business, timely innovation ing allowing some employees to work from tions, pre-recorded “movies” from the industry’s is responding to the changing needs of lottery home permanently or to spend time working top commercial partners, and special features customers, and the exchange of ideas is needed from home as well as the offi ce. Resilience and like the Hall of Fame induction ceremony, the now more than ever. adaptability have served lotteries well, as the Virtual Expo rolled out in a decidedly 2020 fash- With that… Onward and Upward… hard work, fast response, and effective execution ion, allowing lottery industry representatives to

There will be a total of eleven PGRI Live! events in 2021. Each event will be Introducing PGRI Live! held from 1:00 to 4:00 pm EST, on the second or third Wednesday of every While we look forward to seeing everyone again month. The fi rst PGRI Live! will be held on January 20, 1:00 pm - 4:00 pm in-person ASAP, we are also pivoting to the virtual U.S. Eastern Standard Time (EST). environment in a big way in 2021. Our next live in-person conference event will be Lottery Expo on Oct. 26-28, 2021, in Nashville. More information forthcoming, and updates are available at www.public- gaming.com. And we always appreciate your guidance, suggestions, and critique as that helps us to improve. Thank you for your support and hope to see you on Zoom sooner than later. PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 9 PGRI ROUNDTABLES

PGRI LOTTERY EXPO & POST-COVID19 LOTTERY: THE MOVIE EXECUTIVE SUMMARY OF THE ILOTTERY ROUNDTABLE ILOTTERY ROUNDTABLE LEADER: Gretchen Corbin, President and Chief Executive Offi cer, Cor- poration PANELISTS: Richard Bateson, Chief Commercial Offi cer, JUMBO Interactive Kevin Hall, Executive Director, Virginia Lottery Doug Pollard, Co-Chief Executive Of- fi cer, Pollard Banknote and Co-CEO of NeoPollard Interactive Stephanie Weyant, Deputy Executive Director, Marketing & Product Develop- ment, Pennsylvania Lottery Andrea Williams, Senior Marketing Manager - PlayLottery, IGT

What are the key drivers for success in the world of online lottery? The path towards adoption of online lottery sales has been slow-going since the Illinois and Georgia lotteries launched in 2012. Thankfully, it appears that we may be nearing the proverbial tipping point. With the expansion of all games-of-chance categories over the last ten years, and now with the explosion of sports-betting into the U.S. market, maybe it is time for state governing authorities to allow their own state lotteries to make the products available online. The Georgia Lottery has been building out its iLottery program for the last eight years with CEO Gretchen Corbin leading the way for the last three years. New Hampshire, Pennsylvania, Rhode Island and Virginia are some more recent entries into the iLottery space. iLottery will hopefully be implemented by more and more U.S. lotteries over the coming months.

hen Virginia Lottery July 1. All this in the middle of a pandemic - Georgia (2012) Executive Director Kevin with lottery employees working from home. - Michigan (2014) Hall’s year started, he had A three-year lottery veteran, Kevin - Kentucky (legalized 2013, launched the typical “to do” items on recounted his 2020 iLottery experiences 2016) his list: W as part of the iLottery panel at the PGRI - New Hampshire (2018) - Continue to provide a strong product Lottery Expo. He was in good company, - Pennsylvania (2018) line-up for players as some of the industry leaders on iLottery joined him to provide an in-the-trenches - Rhode Island (legalized 2019, launched - Support retailers with cutting-edge 2020) technology and sales tools overview of the path to iLottery and what can be expected post-launch. e industry - Virginia (2020) - Grow returns for Virginia’s Department expectation is that with lotteries still dealing For lotteries considering going the iLottery of Education with COVID19-related sales issues, more route, or which are helping their state’s 2020 would prove to be the turning point states will explore iLottery platforms as government explore the possibilities, the for the Virginia Lottery. e House and pathways to increase sales. insights from the experts on this panel of Senate passed legislation allowing for As an update, there are now eight lotteries iLottery veterans are most enlightening. iLottery in February and the Governor featuring iLottery platforms: ey each shared their experiences and signed the bill three weeks later. After an tips for those wanting to learn more about all-out sprint, the iLottery site launched on - Illinois (Launched 2012) iLottery, putting together plans to present to

10 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 legislatures or to start the iLottery process, or already moving towards launch. Let’s start For lotteries considering going the with those on the frontlines with lotteries and then move to the commercial partners iLottery route, or which are helping that create and support the platforms. their state’s government explore STATE LOTTERY OPERATORS With product, marketing, research and the possibilities, the insights from iLottery under her purview at the Pennsyl- vania Lottery, Stephanie Weyant undertakes the experts on this panel of iLottery a fair amount of multi-tasking each day. But with traditional sales channels taking a hit veterans are most enlightening. during the initial COVID19 restrictions, the spotlight was rmly on the lottery’s iLottery platform, which initially launched in 2018. iLottery activity continue to grow. Mission- winds were blowing in the direction of the “We felt very fortunate to have iLottery critical to their iLottery agenda was that Virginia Lottery overseeing the other new during the height of the COVID19 the online connection augment and help forms of gaming headed his way. His sta pandemic. Having our Draw Games online its retailers, and not hurt the lottery’s had worked too hard for too many years gave players an alternative during stay-at- traditional sales avenues and retail partners. to not keep up the ght, particularly with home orders,” she said. “It didn’t entirely e Georgia Lottery launched its iLottery victory seemingly close in hand. close the gap for the loss of traditional platform in 2012, but it has only been the “We were having many circular conversa- sales, but it helped. And overall, just before past few years that the lottery has started to tions with our retail network, and it was our second-year anniversary, we hit the $1 oer the full array of online lottery products. not very productive,” he said. “We showed billion mark in top line online play.” e increase in online oerings in Georgia them the data from Michigan, Pennsylvania at’s quite the rapid beeline to a billion has certainly helped the lottery’s bottom and Georgia, and how other lotteries saw dollars in online sales. What does Stephanie line. But Gretchen has been careful to strengthened brick and mortar sales after owe to Pennsylvania’s great success? always remember the importance of their iLottery launched. e relevance of the Actually, she believes that the seeds of their No. 1 sales avenue – retailers. “From a overall brand is strengthened with iLottery, iLottery success were planted more than 10 traditional lottery and corporate mission and that benets retailers, too. Just three years ago. perspective, retailers are our best friends,” months after launch, we’re certainly seeing “Around 2009, we started getting our digital she said. “We wanted to make sure every- that in Virginia.” infrastructure in place, building our online thing we did in the iLottery platform was Also positive has been the nancial results community, social media followers, VIP communicated to our channel partners, that seen by the Virginia Lottery. e lottery Club, our app and then a mobile friendly retailers understood what we were doing and ended the rst quarter of its current scal website,” she said. “ e great thing about why it was a good thing for them as well. year (July – September 2020) with more all these component parts of our iLottery “To no one’s surprise at the Lottery, iLottery than $121.5 million in online play, shat- program – and something I think lotteries acted as a cross-promotional piece for the tering its iLottery sales projections for the should keep in mind – is that most of these traditional retailers. When our iLottery sales entire rst year by 56%. By the end of digital activities can be done without any have grown, our brick and mortar retailers’ its rst quarter, iLottery quickly grew to kind of legislation. A lottery can just launch sales have grown as well. Building this represent 18% of the Virginia Lottery’s total them to support the mission of connect- mutually reinforcing synergy between the sales portfolio. ing with its audience of traditional lottery dierent channels is so vital to the sustain- Kevin is optimistic about the growth of players. Of course, you are also laying the able growth of iLottery in the future.” iLottery, while also keeping his eye on the groundwork for the eventual launch of e new kid on the iLottery block is land-based retail network. online sales and iLottery activity. Virginia. While always keeping in mind the “We catapulted out of the gate with iLottery, “Take our VIP Players Club, for example. importance of traditional retail locations, and we’re already seeing that it lifts both the We’ve oered the Club for many years the Commonwealth refused to let the digital and traditional sides of the business,” and we’ve been building the database headwinds of retailer resistance stop the he said. “Now it’s up to us to ‘put up or shut of members. When we nally launched Virginia Lottery’s eorts. In fact, retailer up.’ Now we have to perform. We know iLottery, we had a database of around campaigns to block iLottery had eectively from other lotteries that it means aggressive- 750,000 to whom we could market the stopped prior eorts by Virginia until the ly moving to build out an aliate program, program. Today, there are more than one legislature placed iLottery within a sweeping selling online game cards at retail, and million members of our Club. It makes for a set of expanded gaming opportunities, launching crossover games and promotions powerful marketing tool.” including sports gambling and casinos. that tie together both digital and traditional. About 700 miles south of the Pennsylvania As Executive Director, Kevin remained We’re eager to continue proving the case.” Lottery, Gretchen Corbin has seen her focused on iLottery, even as the political

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 11 PGRI ROUNDTABLES

COMMERCIAL PARTNER outcome for these lotteries. Another upside “iLottery moves fast and it’s something that Behind every successful iLottery launch is has been the addition of new lottery those of us who work in this area every day a vendor which has spent years developing players. So good news all around.” nd intriguing,” she said. “We put out a secure, user-friendly platforms and fun, daily promotion or send an email and get a At JUMBO Interactive, Richard Bateson engaging games. While it is easy to see response within minutes, or even seconds. has been in a position to observe the the fruits of a commercial partner’s labors And it’s not just about iLottery sales. impact of iLottery around the world. e on the printed product side – huge, noisy We also capture vital information about Australia-based company operates in a printing press, reams of paper, barrels players’ behavior, about the performance number of international jurisdictions and of ink, etc. … the work on iLottery is of the games, and even more granular data Richard also ran the digital platform at the undertaken by a team of people in front of about which attributes of the games are United Kingdom’s National Lottery for the computers, coding, designing, securing and attracting playership. Camelot Group, so he has experience on monitoring. both sides of the iLottery experience. “We can then use that data and our research Doug Pollard oversees both the traditional to understand play styles and preferences “One of the biggest dierences with the lottery products and iLottery through and apply those insights to improve game United States is stakeholder resistance and Pollard Banknote’s partnership with development and sharpen the messaging and the regulatory barriers that lotteries must NeoGames, which formed NeoPollard promotional strategies. We also have live overcome,” he said. “I think that if you Interactive (“NPi”). NPi now provides operator assistance which enables us to hear asked, every lottery director would agree iLottery programs in Michigan, New player feedback. ey tell us which games that iLottery delivers massive bene ts Hampshire, North Carolina, Virginia they are playing, what they like about the to the brand, to net revenues transferred and AGLC (Alberta Gaming, Liquor and games and what they don’t like, and why to good causes, and even to land-based Cannabis Commission) in Canada. So they play certain games. e questions they retailers. It can be challenging to convince Doug has been in the catbird seat to view ask guide our messaging and our eorts legislatures and retailers of the fact that the growth of iLottery. to design and build games that are easy to iLottery is a net win for everyone. understand and play. is information is invaluable as we create new content and add features to current games that deliver There was so much instability in the the best possible experience for the Georgia first days and weeks of COVID19 and players.” SUMMING IT UP we felt so fortunate to have iLottery Gretchen perhaps said it best about iLottery – “Every day is a new adventure.” available to keep players engaged “Like my colleagues on this Roundtable, I’m proud of the work of my employees and and sales moving forward. the vendor community,” she said. “ere was so much instability in the rst days and weeks of COVID19 and we felt so fortunate to have iLottery available to keep players “Michigan was a revolutionary step for engaged and sales moving forward. Our “Hopefully, everyone is studying the best our business because it was the rst state iLottery platform provided a place for our practices being applied in Pennsylvania, to show that you could make money in players to continue engaging with us from Michigan, Georgia, New Hampshire and this space, and that retail sales would grow the safety of their homes. other lotteries. Of course, the vendors are along-side iLottery growth” he said. “Since here to help lotteries at every step of the “We knew we had a strong iLottery then, you’ve seen other states come on process.” platform prior to everything that has board and they’ve all been successful. New happened. But now we understand just Hampshire showed that Michigan wasn’t In Georgia, Lottery President Corbin has how important it is to our players and the a uke. en Virginia launched over the been aided by IGT, which also runs iLottery recipients of lottery revenues. e hard summer and eclipsed everything done programs in many jurisdictions across the work of the Georgia Lottery sta, of our previously. globe. Andrea Williams is part of IGT’s commercial partners, and of our retail team that works with the Georgia Lottery partners has positioned the Lottery to serve “With the success of these programs, we to manage the growth of Georgia’s iLottery the state, the players, and most of all our know more lotteries will be joining the program, particularly as COVID gripped bene ciaries for many years to come.” n iLottery trend. COVID has certainly that state. For Andrea, the immediacy of shown the importance of having alterna- iLottery is one of the primary dierences tive channels. It’s driven up iLottery sales with traditional products. and net revenue, so that’s been a positive

12 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020

PGRI ROUNDTABLES

PGRI LOTTERY EXPO & POST-COVID19 LOTTERY: THE MOVIE Executive Summary of SWOT: Strengths, Weaknesses, Opportunities, Threats Roundtable SWOT ROUNDTABLE LEADER: May Scheve Reardon, Executive Director, Missouri Lottery, Chair of Powerball Group PANELISTS: Gretchen Corbin, President & CEO, Georgia Lottery Corporation Rebecca Hargrove, President & CEO, Tennessee Education Lottery Corp. and President of the World Lottery Association Gordon Medenica, Director, Maryland Lottery & Gaming and Lead Director of Mega Millions Drew Svitko, Executive Director, Pennsylvania Lottery Bret Toyne, Executive Director, MUSL (Multi-State Lottery Association)

HOW DOES THE LOTTERY INDUSTRY LOOK THROUGH A SWOT ANALYSIS? Roundtable Leader May Scheve Reardon introduced this session with a discussion about the renewed importance of strategic planning in these challenging and uncertain times, engaging panelists to address: How can the SWOT method for systematically assessing the lay of the land and designing action plans to optimize performance and results, be applied to guide us in the post-COVID19 world? How might Team Lottery identify and leverage its strengths and mitigate its weaknesses; capitalize on opportunities; and prepare for threats to its business model? And how might SWOT be applied to optimize performance of the National Games – Powerball and Mega Millions.

usinesses have been using SWOT view from the trenches AND from 30,000 is working together and we have managed to – Strengths, Weaknesses, Opportuni- feet. Often it is lottery directors who work do that, even if we’re not in the same room.” ties,  reats – analyses for decades to on both their individual lottery issues and As President and CEO of the Georgia B help them develop an awareness of industry-wide issues who can provide the Lottery, Gretchen Corbin has encouraged all the factors in making business decisions. greatest insight. teamwork to her employees during these Often, this takes place over the course of many “ is has certainly been the most challeng- unprecedented times. It’s a di cult message months, perhaps even a year. ing year I have seen in my many decades to convey when your employees are spread But in 2020, when our entire existence has in the lottery industry,” said Rebecca across a large state, but they have responded shrunk to the four walls of our houses (or at Hargrove, President & CEO, Tennessee admirably. And Gretchen sees a similar least our home o ces), a SWOT analysis for Education Lottery Corp. and President of “we’re all in this together” attitude as one of the lottery industry can apply to a time- the World Lottery Association. “One of the the strengths of the larger industry. frame of just a few days and change just as strongest assets of this business is our ability “We all share the common goal of raising frequently. Such is the nature of a business to collaborate and that has certainly been revenue for our states’ bene ciaries which that relies on people being mobile and altered since March. We’ve lost that face- makes information sharing much easier,” she visiting retailers as well as staying at home to-face contact which has always worked so said. “And of course, we’re joined by various and engaging on their phones or computers. well for us. multi-state games and we really need those On the surface, identifying the points “But if anything, this business is resilient. to work to help with our success. So we have under each SWOT attribute does not seem We have fought back from economic more in common than not. too di cult. But truly dissecting a SWOT downturns and attacks on our products and “One of the things that helps me is the analysis of the lottery industry requires a how we earn revenue. One of our strengths ability to call a colleague in another state

14 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 and ask for advice. ere’s very little that “If there is one area of agreement it’s that exist to make money for our beneciaries in happens with our lotteries that hasn’t taken we need to aggressively manage and update the most responsible manner possible,” she place in another jurisdiction, so getting our products moving forward. We can’t let said. “I respect that all of us must consider another director’s take on a situation is our products falter to the point where they what is right for our states. We also need to helpful. We’re better as an industry when we are no longer relevant. Most of us agree consider the players and what they want. All all work together and help each other out.” with that but getting us to that point of our deliberating will be a waste if the nal Gordon Medenica, Director of the agreement and action can take some time.” decision doesn’t work for players. Maryland Lottery, identies the ubiquity of e improvements for multi-state games Gretchen said that all of these opportuni- lottery products and their impact on people brought the panelists to the “O” – Op- ties, no matter how dicult to implement, as two important strengths. portunities. For one of those opportunities, need to be designed with one result in “Humans have a fundamental need to the lottery directors are looking overseas to mind – drive revenue. After all, that is the dream, to believe there is something better international sales of Powerball. As President mission of all lotteries. “Whether we are a for them in the future,” Gordon said. “ at of the World Lottery Association, Rebecca is large group like MUSL or a smaller group is one thing we provide, and we sell it in so keenly aware of the opportunities for brand like Mega Millions, we exist to make money many dierent ways. Another strength is the expansion and raising revenue from new for our beneciaries in the most responsible number and variety of dierent games and markets. manner possible,” she said. “I respect that distribution methods. We meet the needs “ is has been a labor of love, with the focus all of us must consider what is right for our of the widest spectrum of consumer proles on labor, for the working group that studied states. We also need to consider the players and dierent needs. the international expansion of Powerball,” and what they want. All our deliberating said Rebecca. “What initially started as a will be a waste if the nal decision doesn’t “As an industry, we’re good at determining work for players. which products are best for which audience discussion on how to stop the illegal sale of and what is the optimal time “We have such great stewards in for distribution. And we’re able the industry, people like Gordon to show incremental growth "If there is one area of and Rebecca who have great ex- year after year. It’s a strength perience and share it freely with and something we should be agreement it’s that we need others. We all want and need the proud of.” multi-state games to succeed, and everyone is working on how to As Executive Director of the to aggressively manage and bring in that next generation of Multi-State Lottery Association player. If we don’t gure that out, (MUSL), Bret Toyne works update our products moving the games are in trouble. And with ALL states, so his view of that is a major threat.” the industry’s strengths is much forward." more national. May concurred. “ is is a weakness, opportunity and threat “We have a terric variety of all rolled together. Our player organizations, whether it’s base is older. If we don’t add younger players the Mega Millions Consortium, MUSL, our game has now grown into an initiative our games will be in big trouble. ese are NASPL, and then of course our business to sell beyond our borders. Of course, the the topics we have to hit next as a group as partners,” he said. “And then we have a best way to stop or at least curtail illegal they address the future of our games and great diversity of leadership, people from sales is to give the consumer a safe and legal our lotteries.” dierent backgrounds who bring dierent option to play. We’ll start with the ve perspectives to our groups. While at times it Australian states and run a market test in Taking a page out of the instant ticket can be challenging as everyone has dierent April with Tabcorp. After that, we hope we playbook, Drew said he wants to also look stressors on them, I denitely see this as a can take the pilot to UK. On the opportu- at the opportunity to push the price point of strength.” nity front, this has great potential for the Powerball and Mega Millions. He sees this Powerball brand and our ability to increase as an important opportunity. But drilling down on the word “challeng- revenue.” ing,” making the multi-state organizations “ is might be the perfect time to launch operate eciently can also distract lottery For Mega Millions, the opportunity lies that price point,” he said. “We know from directors from their core duties. Perhaps with improving the game from within. our research that players are ne with a $5 not exactly the traditional denition of e group that oversees that game, led by price point. Can we take one game to seven “weakness” but an issue nonetheless. Gordon, is not looking to sell abroad. But days a week and other game to $5? ose “ ere’s a number of issues on which most many states are now oering , are some big moves but now is the time to directors agree but at some point, we hit which is available every day. consider the future of these games. One of issues that are very dierent from lottery our strengths is communications, so let’s use Gretchen said that all of these opportunities, it to address the sales issues of our games to lottery,” said Drew Svitko, Executive no matter how dicult to implement, need Director, Pennsylvania Lottery. “ at’s and look to increase the revenue of both to be designed with one result in mind – games, which represents a big opportunity.” where some of our more dicult discussions driving revenue. After all, that is the mission begin. It also takes a long time to move of all lotteries. is is where Rebecca thinks international along projects in our industry so that can sales could play a roll, serving as a laboratory also be a challenge, especially with lotteries “Whether we are a large group like MUSL of sorts where ideas can be tested before that have director changes. or a smaller group like Mega Millions, we being implemented in the U.S. Continued on page 44 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 15 PGRI ROUNDTABLES PGRI LOTTERY EXPO & POST-COVID19 LOTTERY: THE MOVIE Executive Summary of the Digitization at Retail Roundtable The Future is not Just about iLottery: Digitization of the in-store shopping and player experience DIGITIZATION ROUNDTABLE LEADER: Gary Grief, Executive Director, Texas Lottery PANELISTS: Michelle Carney, Vice President Global Lottery Marketing, IGT Maxwell Goldstein, Vice President Sales, Carmanah Signs Nick Papadoglou, Chief Commercial Offi cer, INTRALOT US Jennifer Westbury, Executive Vice President Sales & Customer Development, Pollard Banknote

PGRI INTRODUCTION: As much as iLottery is on the radar for many lotteries, brick-and-mortar retail will continue as the most critical sales channel, and modernization of the in-store shopping experience is critical to the continued success of the lottery industry. So while we look at the future of online lottery, Lottery leaders continue to focus on technological trends at retail and on how to help our channel partners merchandise their products in the best manner to engage customers and move product. This starts with deploying the latest technology and digital tools to improve that in-store experience.

To set the record straight – not all lotteries technologies that can eliminate, or at least And retailers are asking us for even more see iLottery as the near-term future for reduce, person-to-person exposure – food innovation.” their particular state. Operating restric- and grocery delivery, curbside pick-up,” he On the frontlines of this innovation are tions, legislative inaction, technology said. “ e word of the day is ‘contactless.’ the lottery industry vendors who work restrictions – there are a number of reasons Digital engagement makes shopping easier. closely with both lotteries and retailers. e that a digital lottery is not in the foresee- You don’t have to be present to obtain the iLottery developers might get the headlines able future for many lotteries. So with an goods you either want or need. but many lotteries are working with their eye to the future, the directors of these “Now what does this mean for lottery? e commercial partners to make the in-store lotteries have their e orts  rmly planted research indicates that there’s strong intent experience safer and more e cient to in the here-and-now actionable business of by the purchasing public to continue with satisfy the needs of lottery customers. growing sales at retail. contactless activities, not just in the United “We’ve seen companies such as VISA and One of those directors is Gary Grief, States but around the world. For lottery, American Express reach out to customers Executive Director of the Texas Lottery on one hand the changes that consumers about the safety of the in-store shopping and host of the Roundtable that focused on have made to their retail shopping behavior experience,” said Michelle Carney, Vice the modernization of the in-store shopping is having an impact on lottery buying, President Global Lottery Marketing experience. Running one of the largest and and really all impulse purchases. On the at IGT. “It’s no di erent in the lottery fastest-growing lotteries in the world, Gary other hand, it might accelerate things we industry – we must communicate with is watching carefully the shopping trends of had already started to discuss and, in some players that cashless and contactless options his customers and making plans according- cases, have implemented. Integrated in-lane for lottery transactions are available at retail ly. “Since March, we’ve all seen the rise in lottery purchasing is high on that list. to support their health and safety. Many

16 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020

PGRI ROUNDTABLES

stores have lottery vending machines, and pumps which impacted foot trac, the players before the point of sale, leading to more and more states allow cashless lottery rise in local casinos, multiple economic a quick interaction at the register. It’s not purchases; let’s get that information to depressions. e one constant has been that contactless but it is very quick. players. lottery has survived and, in some cases, “e critical mission for lotteries and “For a number of years, lotteries have also thrived due to the speed at which it adapts vendors is to put the right tools into the oered digital play slips through their to new operating environments. hands of lottery sales representatives so mobile apps. ey have been oered as a In a word, the industry is resilient. they can properly help their retailers. In convenience option and have typically seen Obviously, the lottery has done really well the interest of safety, we know that retailers low adoption rates. Now is the time for in this period,” said Jennifer Westbury, really appreciate digital message boards and lotteries to take the opportunity to promote Executive Vice President Sales & Customer menus that can be updated and changed these tools by emphasizing to players that Development, Pollard Banknote. “Initially remotely. And customers like the ease-of- they present an additional option for a con- we did really well as almost all forms of understanding that digital devices provide. tactless experience: No touching a play slip entertainment were closed and lottery was So win-win … safe updates and easy-to- or pencil, just show the clerk the barcode, basically the only outlet for the gaming understand information.” it gets scanned, and the lottery ticket is dollars. e instant ticket product showed In Texas, the safety of employees, retailers produced. Basically, it’s the same process us just how resilient it is and how popular it and customers is always on Gary’s mind that many restaurants are now oering, is to our players. as director. And COVID19 is accelerating making menus available by scanning a QR code and payment via a mobile phone. Technology can support a fun and safer The critical mission for lotteries and lottery shopping experience for players.” While the majority of lotteries can’t oer vendors is to put the right tools into the iLottery, almost all lotteries have websites, hands of lottery sales representatives so apps, noti cations, etc. ese platforms, originally conceived to improve commu- they can properly help their retailers. nication with players, are now the perfect tools for allowing players of all demo- graphic groups to interact with the lottery and purchase products at retail, with a high “I also believe that our retailers have programs they had already put into motion. level of safety. realized in this pandemic just how “We work closely with our vendor IGT on “e exciting thing to me is that we are important the lottery is to their businesses. safety, as the Texas Lottery sales representa- seeing more and more adoption of these And they continue to look to partner with tives (LSRs) are their employees, but our technologies among our core segments, us on news ways to sell the lottery product retailers very much like to see them in particularly older people who are increas- and attract customers to their stores. So person,” he said. “Given the situation and ingly adopting technology for their retail this is a wonderful opportunity for the our strict state-mandated safety guidelines, interaction,” said Nick Papadoglou, Chief lottery industry to help convenience stores we have all had to be creative to properly Commercial Ocer, INTRALOT U.S. move customers quickly through the sales serve the needs of our retailers and keep “At retail, we’ve certainly seen an uptick process, help grocery stores gure out our employees safe. We don’t need to in the use of lottery vending machines and in-lane sales and self-checkout. Most of require two visits per month to every one cashless options. Our lottery retailers have these technologies are available now and we of our 20,000 retailers by our LSRs. Our certainly seen these changes and, thank- have a tremendous opportunity for all of internal discussions are ‘how can we be fully, seen them help keep their sales in the us to work with the retailers and help them more ecient with our contact, which positive direction. sell our products." retailers need more in-person assistance, how can technology help with these issues?’ “While much of this increased digitization Working for a company that produces digital messaging products for retailers, ese are critical issues that will impact the of the lottery retailer experience has been lottery for many years to come.” in the works for some time, COVID19 has Maxwell Goldstein, Vice President Sales, pushed this implementation and adoption Carmanah Signs, has seen rsthand As with many parts of our lives, most con- of a quicker timeline. We are seeing a new the power of providing technology that versations about where the lottery industry norm with business and all of us – lotteries actually attracts customers and sells lottery is headed have to start with technology. and vendors alike – have had to adapt products. Not necessarily the technology that moves quickly. ese are habits that, I believe, are “We have seen how the use of digital paper tickets to eInstants and keeps people here to stay.” technology improves customer interaction,” out of retailers. For the lottery, there is said Max. “Digital lottery ticket menus, also the technology that will improve Of course, the lottery industry has faced the purchasing experience and increase challenges before in its 50-plus year history changeable signs, signage at various points of the store – these all help retailers reach the customer base at retail, including the in the United States … self-service gas younger demographic. Continued on page 45 18 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020

PGRI ROUNDTABLES PGRI LOTTERY EXPO & POST-COVID19 LOTTERY: THE MOVIE Executive Summary of the Instant Scratch-off Roundtable Maximizing the Endless Potential of Instant Scratch-offs to Continue to Drive Growth INSTANT SCRATCH-OFFS ROUNDTABLE LEADER: Beth Bresnahan, Executive Director, DC Lottery PANELISTS: David Barden, Chief Executive Offi cer, New Mexico Lottery Charles McIntyre, Executive Director, Meghan Dondero, Regional Vice Presi- dent, Scientifi c Games Mike Purcell, Senior Vice President of Sales & Marketing, Corp. Brad Thompson, Vice President Sales & Marketing, Pollard Banknote

PGRI INTRODUCTION: Scratch ticket sales have been growing for years, but exploded for many lotteries during the pandemic. What’s driving the growth during these pandemic times, and what can lotteries do to leverage new insights and drive ongoing growth in Instants? How can a balanced and mutually-reinforcing relationship between online and off-line Instants be built? Why is it important to attract and engage players on multiple channels? What are future growth platforms, POS devices, pathways to expand access to the games and attract new consumers?

ant to know as much as  rst hit the $5 billion mark in sales (more ticket to market is an easy task have never possible about the past, present than 70% of which were instant sales). She fretted over call outs, color schemes and and future of instant scratch- now oversees the DC Lottery, which has prize structures. It’s one of the most critical W o tickets? Learn where the recently implemented sports gambling. tasks we undertake as lottery representa- product is going, how the move to digital But it is the instant ticket product that tives.” will impact players and lotteries? Let’s ask truly moves the needle for Beth, and the And with that, they were off. the experts who have been on the front industry. First stop – the meteoric rise in lines of driving sales of both products. “Building a successful instant ticket scratch ticket sales in 2020. Better yet put them all in one (Zoom) portfolio is truly both an art and a science,” room and let them talk. she said. “How to assess the playstyle and Charlie McIntyre, who served as General at’s exactly what happened at the theme, how to build an attractive prize Counsel at the “Instant Scratch-O s Roundtable” which structure, what colors to use, what call-outs before moving north to take the top spot at featured some of the industry’s most to feature. ese are not the things going the New Hampshire Lottery 10 years ago, respected leaders. As roundtable leader, through a customer’s mind when they walk has had a busy 2020. Expansion of Keno Beth set the table for what would be a into a convenience store and see a display of and iLottery was always on the table, and spirited 90 minutes of lottery discussion. tickets. But these points, and many others, then sports gambling was added. But for In her previous job as Executive Director are on all of our panelists’ minds, every right now, scratch tickets continue to pay of the Massachusetts Lottery, the lottery day. ose who think bringing an instant the bills. Continued on page 24 20 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 MUSLNEWS MULTI-STATE LOTTERY ASSOCIATION

MUSL & WLA COLLABORATE TO EXPAND the Rule 2 requirements not covered lotteries for further collaboration and UNIFORM SECURITY by either framework,” Nitz said. future partnerships.” “These requirements are multi- For its part, the WLA has added a STANDARDS jurisdictional game specific such as new multi-jurisdictional subhead A new collaboration between balancing and ticket validation.” to its SCS and implemented a new the Multi-State Lottery In August, M U S L’s Security and multi-level certification system, Association (MUSL) and the Integrity Committee, which oversees which allows lotteries that are Rule World Lottery Association Rule 2 compliance, voted to accept 2 compliant to apply for WLA SCS (WLA) has advanced a ISO 27001 or WLA SCS certification Level 1 certification. The Missouri common goal of more uniform as evidence of compliance with Lottery, which is both a MUSL security and risk management portions of Rule 2. The remaining and WLA member, will be the first standards across the lottery Rule 2 requirements will still U.S. lottery to achieve WLA SCS industry. So what does it require a biennial review by M U S L’s Level 1 certification under this new mean for U.S. lotteries that Information Security team. The agreement. sell Powerball? More efficient alternative method of attaining Rule “This is meaningful,” said May Rule 2 reviews and, for Rule 2 compliance will streamline reviews Scheve Reardon, executive 2-compliant lotteries, the for MUSL member and licensee director of the Missouri Lottery and opportunity to apply for WLA lotteries that have already undergone Powerball Product Group Chair. Security Control Standard Robert Nitz, Information Security an ISO 27001 or WLA SCS audit. “It’s forward-looking as it provides Level 1 certification. Director, MUSL even further levels of transparency According to Nitz, two-thirds of and consistency in lottery security The discussion between the two MUSL Rule 2 requirements are standards.” Associations began last year when covered by ISO 27001, and of the the WLA began a scheduled review The dialogue on security and risk remaining requirements, half are of its Security Control Standard management standards will remain covered by the WLA SCS. In many (SCS). The WLA Security and Risk open between MUSL and the cases, the duplication was the Management Committee invited WLA. The WLA Security Risk and result of Rule 2 predating the now M U S L’s Information Security Management Committee has invited well-established security standards. Director, Robert Nitz, to join talks Robert Nitz to join its Technical MUSL Rule 2 was developed with its Technical Working Group on Working Group as a member. The during a time when there were no how to expand the SCS to include line of communication and transfer commonly-established information more U.S. lotteries. The expansion of knowledge is expected to benefit security standards, and was, during would require the two Associations the member lotteries of both most of its history, an innovative to fully understand the similarities Barry Pack, Director, regon Lottery Associations. and critical way of ensuring security and differences between the WLA and Chair of MUSL Security & between lottery partners. However, “Part of WLA’s charter is to develop SCS and MUSL Rule 2, the security Integrity Committee due to evolving technology and best worldwide standards every lottery and risk management standards for practices, sections of Rule 2 required “This has been a huge step forward can follow, regardless of country,” U.S. lotteries to sell Powerball®. continuous review and updates to in modernizing Rule 2,” said Barry said Rebecca Paul Hargrove, Working group members undertook ensure requirements met modern Pack, MUSL Security and Integrity WLA President and Tennessee the tedious task of mapping all standards. As a result, MUSL found Committee Chair and Education Lottery President and 300 requirements in MUSL Rule 2 itself turning to more contemporary Director. “Not only does this ensure CEO. “Our ultimate goal is to to the WLA SCS and ISO 27001, standards for guidance. that our security standards are up to share best practices so lotteries a framework of internationally- date, it allows us to focus on those across all jurisdictions continue accepted information security “By accepting the WLA SCS and ISO security features unique to multi- to be innovative in their efforts to standards that forms the base of 27001 standards, MUSL can focus jurisdictional games, and it puts raise money for good causes and the SCS. its efforts and time on maintaining MUSL in closer alignment with other beneficiaries.”n

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 21 PGRI INTERVIEWS

SHARON ANDERSON HEAD OF DIGITAL – LOTTERIES (THE LOTT) TABCORP

THE FUTURE OF DIGITAL: LOOKING INTO THE POST-COVID19 WORLD and re-launched Saturday Lotto, one of PGRI INTRODUCTION: Sharon Anderson is the Head of Digital for The Lott, e Lott’s  agship lottery games. It was at Tabcorp, Australia's leading gambling-led entertainment company, listed on exhausting and challenging work for our the Australian Securities Exchange (ASX). team, but I'm proud of what we achieved as a business function during this time. Since 2015, Sharon has driven the digital strategy that has contributed a signifi - Did the COVID-19 pandemic impact your cant increase in sales and customer satisfaction scores across The Lott's digital projects for FY20? What was your biggest channels. project for FY20, and why was it such an Sharon is passionate about innovation, customer centricity and data-driven deci- important project for the business? sion making. She has led and worked directly with teams across marketing and e biggest project for us in FY20 was the technology to transform products, people, and processes at all levels within the launch of our omnichannel program in organisation. August 2019, which focused on combining both the online and retail experiences through a single membership. We led the Paul Jason: How did the COVID-19 each step. is included new content that digital execution for this project, and it was pandemic impact The Lott's digital highlighted how to join e Lott online, a good opportunity for our team to focus business? what it means to be a member and how to on how our digital channels can drive an SHARON ANDERSON: Having had play online. in-store interaction. continued investment and support from A unique customer segment of older As part of the project we digitised a version executive leadership in our digital business Australians emerged during COVID-19 of the physical membership card our since 2015, we felt we were well prepared to seeking to purchase online however they customers use in-store to register entries handle the organic migration of customers’ didn’t necessarily have the technical within our existing apps. Not only saving shopping behaviour from purchasing understanding. We communicated with them wallet space but also ensuring they in-store to online. our Customer Care Contact Centre daily to always had their membership card on hand. From the outset, there was a big expecta- understand what issues they were receiving For members who also purchased online, tion on the digital team that we were doing calls about and used this to overhaul our we added another feature within the apps everything we could to ensure the success online help centre content. to allow them to use the funds within of the business. Fortunately, the majority of During the  rst few months of the their online account to purchase entries our retail outlets remained open to trade, pandemic, the regulatory requirements in-store. We’re looking forward to building but we still saw an increase in sales in our and restrictions were changing daily out more features in the future that allow digital channels. Digital sales as a percent- as the situation evolved. e challenge players to use their own device as an age of all sales grew from 26.7% in the six became trying to understand what the in-store experience. Our focus has always months to December 31 2019 to 28% in biggest priority of the business was for been on building our online channels the six months to June 30 2020. that day while being  exible enough to for the future and the great thing about With this in mind, we revisited the pivot towards working on the new require- omnichannel is that it meets current and journey for those customers who have ments. While that was happening, we also future customer expectations. never purchased a lottery entry online launched PayPal as a new payment method, What other projects did you focus on in before. We planned each customer journey implemented a new brand identify for e FY20, and how did they benefi t The Lott's and produced experiences to align with Lott, supported a signi cant donation customers?

22 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 All our projects have a customer lens because as a digital channel, we have to be “By changing a button here or customer focused. We are not a physical person having a conversation or engaging there, or making something with a customer, so we can't design technol- ogy for the sake of it; we need to design on the website a different it for people to use. Over seven million Australians use our range of channels, and colour, you can completely we need to ensure our projects align to ensure they have the best digital experience change the outcome of what possible. the customer is trying to do.” One of our customer-focused projects was introducing PayPal as a payment method in our online channels in early April of 2020. Customers wanted more choice in the We identify one landmark project to work Another project we are hoping to launch way they pay, with PayPal being a highly on and then identify several other key areas this year is store syndicates online as requested option by customers. to focus on. ese areas can be anything currently, players can only play syndicates from customer experience to compliance in store. It will be our rst toe in the PayPal now represents around 10% of and security. Running a digital business water since we launched Syndimate in total online deposits, with over 60% of carries risk, so we must balance ensuring 2018. When it launched, it was a tool to PayPal connections and deposits occurring we keep our customers safe and protected. help private syndicate leaders to organise within e Lott Apps. Customers have While at the same time, providing a syndicates and nd the best value been delighted to have more choice in the reliable, easy to use and fun experience. way they pay, and we’ve also seen a small entry and conveniently purchase in-store but steady reactivation of customers who e customers, what they want to see, and printing syndicate shares for all members had ceased using our channels due to not their feedback is at the core of what we do, of the syndicate. We've seen huge adoption having PayPal available. and this helps us decide which enhance- of this tool, and last year 4% of syndicate ment projects to work on. Each nancial revenue was made through Syndimate. Another successful customer-focused year we ensure there is funding available project we implemented in FY20 was Creating store syndicates online is a great for us to continually evolve the customer expanding our team’s ability to optimise next step as it gives online players access to experience through the website and apps. our existing digital experiences. By intro- more chances to win but also allows our We don't want the channels to become ducing team members who are dedicated retailers to sell their syndicate oerings stale. We also make sure we liaise with our to optimising our selling touchpoints online. Customer Care Contact Centre to see what through A/B testing, we have been able to roadblocks customers are experiencing Where do you see the focus of digital realise millions in revenue per annum, just and any other insights we get from our channels and customer experience of The through streamlining the customer journey marketing teams. Lott heading in the next few years? of existing website and app trac. It really shows that small changes can make a big Looking forward to FY21, what are the Now that we have established our digital dierence! By changing a button here or three major projects you hope to achieve channels, we are focusing more on how there, or making something on the website in the next financial year? to increase the experiential part of our a dierent colour, you can completely services, which is why we hope to launch e Lott is launching a new brand identity our voice app as a trial later in the year. change the outcome of what customer is this year, so our major focus is to continue trying to do. is voice app will be across the Alexa to roll that out across the digital platforms. and Google Assistant applications. We are It also means we can be more data-driven We have been a caretaker for e Lott excited by this as it will be information about decisions we make regarding our brand since it was launched digitally in focused, which will help our customers if projects. e team focuses on ensuring 2016, so we understand how important they have a winning ticket. we are making the right enhancements to it is that the brand comes to life in our the website and app, spending the right channels. We think lotteries is the perfect way for investment in time and funding, and we people to engage with their voice-based Overall, our focus is to continue to bring assistants regularly. use the data to make the best decisions to the digital and retail customer experience run a campaign. It's been a huge focus for closer together supporting each other. In As part of our goal to create a more experi- us in FY20, and it will continue to be our addition to the website and the app, we ential online experience for our customers, focus in FY21. have expanded our focus to include our we want to reinvigorate our lottery draw What is your strategy for planning what in-store terminals. We see the launch of experience. As a business that sells anticipa- projects you will focus on in the coming the brand identity as a chance to align tion and excitement, we need to maximise financial year? our look and feel and give e Lott a real the glow of the actual event that creates breath of life. winners.

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 23 PGRI INTERVIEWS

We've also made signicant investments anchor from which to plan. checking results with Alexa! in our marketing technology platforms, so What we know is that people will always We also ask ourselves how dramatically we need to focus on how we are using it to want the chance to dream about winning does the landscape need to change, or even deliver a personalised experience for our the big one, and our business will conduct if we want it to change? We have had some customers. We also want to optimise and lottery draws each and every day. But how varying forms of competition, and it makes make our advertising as ecient as possible. they buy their ticket, where they buy their us consider do we transform our oering Personalisation is a large focus for us over ticket, how they check their – those or adapt it to the market. We've taken an the next three years. are the things that can change. By looking adaptation approach, and it has worked well Where do you see the future of digital at what doesn't change, it gives you more for us so far. retail going in the next few years? control over the things that can change. What's core to our business is creating a In digital and technology things move Our greatest opportunity over the new few dream by selling tickets, conducting draws, so quickly that it can be challenging to years is bringing our online and in-store delivering results and paying prizes. ose think where you will be in a year, let alone experiences even closer together and giving are the levels we need to innovate and three or ve years! I’ve always subscribed our customers as much choice as possible, streamline as much as possible and not to the idea of thinking about what might be it celebrating a win with a local retailer, transform for the sake of transformation. n not change in the future as it gives you an creating a syndicate with friends online or Instant Scratch-os continued from page 20

“ e acceleration in sales has been crazy but our vendors kept us supplied and Winning experiences keep the players – we’re already in the top 10 in per capita we never fell short of what our retailers coming back.” sales in the United States,” he said. “And needed. With an automated ticket ordering In our nation’s capital, Beth had a unique there have been many factors. We know and delivery system, we saw very little problem – empty streets, empty stores, that many Massachusetts residents moved interruption in delivery to retailers. at empty commuter trains. With workers to their second homes in ski country and was a key for our sales. being told to stay home, the daytime at the lakes during the COVID lockdown “So much of the entertainment and population in Washington, D.C., dropped and we got a tailwind from them. And recreation industry closed in Kentucky – an astounding 90%, as commuters from there was not much else for people to do horseracing, so important to our culture, Maryland, Virginia and other neighbor- – no movies, no restaurants, no recreation stopped. No casinos, no theaters, people ing states stopped travelling to D.C. Beth that involved groups of people. And the couldn’t go out to eat. But our c-stores were didn’t have to worry about inventory – casino in Boston was closed. busy. Because people weren’t travelling, there simply weren’t enough people to buy “But the lottery stayed open. We met they didn’t need as much gas. But they their products. internally in the early weeks of March and did have more discretionary income, and “Our biggest retailer shut down because decided that under no circumstances will some of that went to lottery. at trend there were no commuters travelling into the we shut down. I wanted more inventory continues today.” city,” she said. “Our neighborhood retailers then was projected to be needed and asked Across the country in New Mexico, continued to sell our products and we had our vendors to work closely with us on CEO David Barden applied mathemat- no problem providing them with tickets, achieving that goal. e result was that ics to help push sales. e NM Lottery so District residents had 100% access to at no point did we fall short. When our has payo restrictions which require the lottery products. Our sales didn’t com- players started returning to stores, they lottery to return 30% of revenue to the pletely shut down. But we were certainly found full bins of tickets, and it has stayed state every month, a daunting require- impacted by stay-at-home orders and the that way through the year.” ment for any lottery. With sales of jackpot lack of daily workers.” Ensuring the stores would always have a games lagging, David had unclaimed While lotteries were scrambling to equip full stock of tickets was also on the mind of prize money that he could use to seed his workers with laptops so they could ef- lottery veteran Mike Purcell. Having previ- scratch product oering. at resulted in fectively work from home and safely supply ously worked for the lotteries in Virginia an increase in payout across all denomina- retailers with tickets, commercial partners and , Mike has vast experience tions. e result? were facing their own concerns. How do in creating and selling the scratch ticket “Surprise, surprise – we’re up 24 percent they keep the printing presses running product. Now leading the sales eorts in this year over last year,” he said. “We’ve eciently yet safely? What would happen Kentucky, Mike’s past experience and his also worked closely with our vendors on if COVID shut down a manufacturing knowledge of the players in the Bluegrass prize structures. e chances of winning location? Will COVID restrictions interfere State helped keep tickets stocked and are about the same, but we’ve loaded the with the shipping of the product? selling. games with prizes between $500 and Lottery commercial partners faced multi- “Like the NH Lottery, we pushed inventory $1,000. is has created a buzz among prong challenges – take care of their and our ticket levels never fell short,” he players, and we’ve heard that people love employees’ health needs, make sure their said. “When the pandemic started, we had the new games even though the top prizes lottery customers are properly supported, a four-week supply on hand for retailers, are not at the levels you see in larger states. Continued on page 41 24 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 TM

When Doing Good Just Comes Naturally Protecting the environment is a cause that many lotteries support with their revenues. Scientific Games’ ONE Suite provides valuable insights in to consumers that drive sales and enable our lottery partners to deliver on their promise to keep our environment healthy and accessible for generations to come.

Reimagine Next

© 2020 Scientific Games Corporation. All Rights Reserved. lotteries would benefit from understanding ways to switch up consumer reach and use popular websites, apps and internet-based services to connect with consumers. Traditional radio advertising is being challenged by the Marketplace trends are one of the most important components in developing a successful lottery business strategy significant increase in music streaming this year. that grows performance and protects vital funding for beneficiary programs. Understanding the trends and being ready to adapt and pivot becomes even more important in a year like 2020.

Scientific Games’ Analytics & Insights team identifies and tracks ebbs and flows in the marketplace as they happen, Keep Lottery Newcomers Entertained while our Consumer Insights team conducts market research to better understand the why behind those ebbs and With casinos running at limited capacity pandemic ends – but there are no guarantees they’ll flows. This powerful combination of insights helps lotteries best prepare and plan their business. due to social distancing, as well as other spend as much or play as often. Going back to the non-gambling forms of entertainment still being rich combination of analytics and consumer insights, To close out the year – one filled with unpredictable twists and turns – we’re sharing some of the more significant take-aways of 2020 from our research and our research vendor partners. These insights, which are informing o­-limits or shut down, discretionary income that we know that many of these new players are drawn to business decisions for 2021 and beyond, come from consumers and the retailers on the front line who deliver the consumers set aside for entertainment means other higher priced instant games; those that o­er similar lottery experience to players. entertainment forms have benefitted. Lottery instant play value to their typically available gambling choices. scratch games are no exception. According to a So knowing what they like and why is key to creating national study conducted by Leger, up to 20 million best-fit lottery content to keep players entertained Reach Consumers Digitally new players have tried instant scratch games during and engaged beyond the pandemic. And reinforce that COVID-19. And many of these new players plan to lottery games are worthy of a constant share of their Given that consumers are so focused on getting in and out of stores as quickly as possible, it’s not as continue playing instant scratch games after the entertainment wallet. easy to capture their attention at the point-of-sale. Many if not most lottery players use online/mobile channels these days, which presents a critical opportunity to communicate with them outside of traditional lottery retail channels. Another strategy is to leverage the lottery’s players’ club to communicate. One of the benefits to being a club member is knowing immediately about any changes to programs, games, retailers, etc. Lotteries can deploy any number of tactics to experiment with optimal digital engagement in the club.

Social media is also perfect for low-cost messaging to the masses. Social media usage is increasing across all platforms, which creates "I am spending more on lottery than gambling during COVID-19." an opportunity for the lottery to keep those members up to date on 11% of the U.S. population agrees % Agree - Over-index that they are spending more on new game launches, promotion lottery than gambling during the Ages 18-29 17% 20 MILLION+ NEW PLAYERS have tried current pandemic. dates, etc., as well as potentially Ages 30-39 18% instant scratch games during COVID-19. reach less engaged players. However, the growth appears to 90% of new players have played some be coming from two specific areas, Casino Players 30% form of lottery before, but a significant casino players and sports bettors. Sports Bettors 41% number of U.S. adults (approx. 2 million) When considering the role of digital It also skews younger and non-white. have entered the lottery sector looking in their overall marketing strategy, Non-White 18% for something “new” to scratch.

26 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 lotteries would benefit from understanding ways to switch up consumer reach and use popular websites, apps and internet-based services to connect with consumers. Traditional radio advertising is being challenged by the Marketplace trends are one of the most important components in developing a successful lottery business strategy significant increase in music streaming this year. that grows performance and protects vital funding for beneficiary programs. Understanding the trends and being ready to adapt and pivot becomes even more important in a year like 2020.

Scientific Games’ Analytics & Insights team identifies and tracks ebbs and flows in the marketplace as they happen, Keep Lottery Newcomers Entertained while our Consumer Insights team conducts market research to better understand the why behind those ebbs and With casinos running at limited capacity pandemic ends – but there are no guarantees they’ll flows. This powerful combination of insights helps lotteries best prepare and plan their business. due to social distancing, as well as other spend as much or play as often. Going back to the non-gambling forms of entertainment still being rich combination of analytics and consumer insights, To close out the year – one filled with unpredictable twists and turns – we’re sharing some of the more significant take-aways of 2020 from our research and our research vendor partners. These insights, which are informing o­-limits or shut down, discretionary income that we know that many of these new players are drawn to business decisions for 2021 and beyond, come from consumers and the retailers on the front line who deliver the consumers set aside for entertainment means other higher priced instant games; those that o­er similar lottery experience to players. entertainment forms have benefitted. Lottery instant play value to their typically available gambling choices. scratch games are no exception. According to a So knowing what they like and why is key to creating national study conducted by Leger, up to 20 million best-fit lottery content to keep players entertained Reach Consumers Digitally new players have tried instant scratch games during and engaged beyond the pandemic. And reinforce that COVID-19. And many of these new players plan to lottery games are worthy of a constant share of their Given that consumers are so focused on getting in and out of stores as quickly as possible, it’s not as continue playing instant scratch games after the entertainment wallet. easy to capture their attention at the point-of-sale. Many if not most lottery players use online/mobile channels these days, which presents a critical opportunity to communicate with them outside of traditional lottery retail channels. Another strategy is to leverage the lottery’s players’ club to communicate. One of the benefits to being a club member is knowing immediately about any changes to programs, games, retailers, etc. Lotteries can deploy any number of tactics to experiment with optimal digital engagement in the club.

Social media is also perfect for low-cost messaging to the masses. Social media usage is increasing across all platforms, which creates "I am spending more on lottery than gambling during COVID-19." an opportunity for the lottery to keep those members up to date on 11% of the U.S. population agrees % Agree - Over-index that they are spending more on new game launches, promotion lottery than gambling during the Ages 18-29 17% 20 MILLION+ NEW PLAYERS have tried current pandemic. dates, etc., as well as potentially Ages 30-39 18% instant scratch games during COVID-19. reach less engaged players. However, the growth appears to 90% of new players have played some be coming from two specific areas, Casino Players 30% form of lottery before, but a significant casino players and sports bettors. Sports Bettors 41% number of U.S. adults (approx. 2 million) When considering the role of digital It also skews younger and non-white. have entered the lottery sector looking in their overall marketing strategy, Non-White 18% for something “new” to scratch.

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 27 Oer a Variety of Higher Price Point Games Continue Evaluating & Adjusting In-store Marketing Three in five retailers report noticing new makes sense and foreshadows the need for continuous When shopping, consumers are focused on getting in and getting out of the store quicker than ever before. customers buying lottery products, and 17% of these portfolio refinement. Creating games that appeal to This means that the e•ectiveness of traditional in-store marketing may be altered. Retailers are working to understand retailers estimate that new players are ‘typical casino the heavier spenders (and keeping those games in- new shopper journeys players.’ Additionally, one-third of retailers report stock) are key to keeping casino players coming back, and how purchase increased spend since the beginning of the pandemic. even after their regular gaming entertainment options decisions are impacted An even higher proportion noted that lottery players are become safer, and more available. by reduced shopping buying more higher priced point time and condensed games. Both existing players tra–c patterns. Signs and and new players appear to be displays at the point-of- contributing to the popularity of sale are still perceived higher price points. to be the most e•ective in-store marketing, When considering the evolution however lotteries need of lotteries’ instant product to remain vigilant in portfolios over the past 15 assessing the messaging years, since the true inception on that signage and adjust © 2020 Scientific Games Corporation. All Rights Reserved. of higher price point games quickly to respond to the as a category, this observed environment. gravitation to these games

Oer Cashless Payment Options Restock Vending Machines, Usage is Up Cash is no longer king! A recent national now than cash, up 15% in just three months. The shift study conducted by Leger saw a dramatic increase in away from cash has been anticipated for many years, The upward trendline for self-service vending usage has existed for a number of years across various consumers stating they use debit or credit more often but nobody ever expected such a dramatic shift so industries, including lottery. For maximizing an individual lottery retailer’s sales performance, the industry has quickly due to COVID-19. worked diligently to determine This is a new reality that the right combination of the lottery industry will at-the-counter point-of-sale need to adjust to in order and vending. Among retailers to stay current. While most who have a lottery vending lotteries have worked to machine, nearly half (48%) remove barriers to allow report that lottery players debit card payments, now are using the machine more is the time for those that during the pandemic. This have not to focus on any makes having a proactive necessary policy changes process for stocking the and retailer cooperation to machine all the more make this change. Business important right now to avoid sustainability depends on it. out-of-stock situations.

28 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 Oer a Variety of Higher Price Point Games Continue Evaluating & Adjusting In-store Marketing Three in five retailers report noticing new makes sense and foreshadows the need for continuous When shopping, consumers are focused on getting in and getting out of the store quicker than ever before. customers buying lottery products, and 17% of these portfolio refinement. Creating games that appeal to This means that the e•ectiveness of traditional in-store marketing may be altered. Retailers are working to understand retailers estimate that new players are ‘typical casino the heavier spenders (and keeping those games in- new shopper journeys players.’ Additionally, one-third of retailers report stock) are key to keeping casino players coming back, and how purchase increased spend since the beginning of the pandemic. even after their regular gaming entertainment options decisions are impacted An even higher proportion noted that lottery players are become safer, and more available. by reduced shopping buying more higher priced point time and condensed games. Both existing players tra–c patterns. Signs and and new players appear to be displays at the point-of- contributing to the popularity of sale are still perceived higher price points. to be the most e•ective in-store marketing, When considering the evolution however lotteries need of lotteries’ instant product to remain vigilant in portfolios over the past 15 assessing the messaging years, since the true inception on that signage and adjust © 2020 Scientific Games Corporation. All Rights Reserved. of higher price point games quickly to respond to the as a category, this observed environment. gravitation to these games

Oer Cashless Payment Options Restock Vending Machines, Usage is Up Cash is no longer king! A recent national now than cash, up 15% in just three months. The shift study conducted by Leger saw a dramatic increase in away from cash has been anticipated for many years, The upward trendline for self-service vending usage has existed for a number of years across various consumers stating they use debit or credit more often but nobody ever expected such a dramatic shift so industries, including lottery. For maximizing an individual lottery retailer’s sales performance, the industry has quickly due to COVID-19. worked diligently to determine This is a new reality that the right combination of the lottery industry will at-the-counter point-of-sale need to adjust to in order and vending. Among retailers to stay current. While most who have a lottery vending lotteries have worked to machine, nearly half (48%) remove barriers to allow report that lottery players debit card payments, now are using the machine more is the time for those that during the pandemic. This have not to focus on any makes having a proactive necessary policy changes process for stocking the and retailer cooperation to machine all the more make this change. Business important right now to avoid sustainability depends on it. out-of-stock situations.

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 29 Confirming what retailers have noticed, a national study was conducted with consumers by Leger which confirms that players are using vending machines more often to purchase lottery products during COVID-19.

These insights are just the tip of the proverbial iceberg. As the world continues to challenge us, so must we continue to challenge our assumptions about our lottery ecosystem. It’s imperative for lotteries to take the time to talk to customers – both consumers and retailers – and focus on necessary adjustments for success.

To receive more actionable insights for your lottery or to request a custom research study, please contact Tim.Menzia@scientificgames.com or Kisha.Eltagonde@scientificgames.com

SOURCES: “Lottery Retailer Satisfaction Study.” September 2020. Leger “COVID-19 & Lottery Tracking Study.” October 2020. Reach3 Insights “Consumer Closeness in the Age of Social Distancing - Week of April 26th: Sports & Entertainment.” April 2020. Izea ”Coronavirus Impacts on Influencer Marketing.” March 18, 2020.

© 2020 Scientific Games Corporation. All Rights Reserved.

30 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 LOTOSXI: EMPOWERING LOTTERIES IN THEIR “FIGHT” AGAINST

byTHE Sotirios Sklavounos,PANDEMIC Customer Experience Director, INTRALOT Group

o longer an emerging Xi is fully and easily scalable, secure trend but an established and cloud-ready, allowing Lotteries reality, online purchasing to choose between public, private or affects consumer behavior hybrid cloud infrastructure, and thus in all areas of commerce. According to reduce the total cost of ownership. 2019-2020 data, 77% of global consum- N Feature-wise, any basic iLottery solution fects of retail setbacks due to lockdowns ers shopped online, while 64% used should include a gaming portal offering or social distancing measures. LotosXi their smartphones to make purchases online ticket purchasing and e-payment offers a turn-key solution that can be at least once a month (Foresight Fac- options, and a Player Account Manage- deployed and made fully operational tory, Consumer Trends). For US con- ment system supporting player registra- within weeks, without compromises in sumers, monthly shopping via smart- tion and promoting responsible gaming. the features offered. This is possible phone leaped from 31% in 2015 to 57% A more elaborate iLottery solution may because INTRALOT designed LotosXi in 2019. also include native applications offer- with a set of fast deployment function- Lotteries have been lagging in the glob- ing an elevated play experience, as well alities: it is configurable and ready-to- al online commerce revolution, partly as push notifications for personalized, play, supporting all families of numerical due to regulatory restrictions but also immediate and engaging marketing. games and boasting an embedded due to their strong retail heritage and Available in two feature-rich editions, Player Account Management system hesitation to change an established and INTRALOT’s LotosXi can meet the needs with advanced responsible gaming profitable operation. Recently, the CO- of any Lottery: from the fast launch of a features, a Lottery portal with gaming- VID-19 pandemic forced governments mobile-optimized online Lottery portal ready widgets managed and configured to implement country-wide lockdowns. that offers subscription and online ticket by a CMS, and a pre-integrated pay- According to La Fleur’s, US Lotteries, purchasing, to a total online presence ment solution. which offer iLottery solutions, posted a including native mobile applications, Alternatively, operators may opt for the 47% increase in Internet revenues and a push notifications and online marketing full online solution, which also includes 50% increase in e-instant revenues in the features. native mobile applications; a Player first quarter of 2020. Additionally, new With more than 65% of gaming portal Account Management system enriched customer registrations skyrocketed. For traffic originating from mobile devices, with marketing capabilities such as example, the New Hampshire (NH) Lot- any iLottery solution should focus on player segmentations, online promo- tery reported a 58% increase in player mobile device access. On that front, tions, bonuses and loyalty features, a registrations and a 110% increase in LotosXi offers an unparalleled mobile full-featured wallet pre-integrated with first-time depositors. experience. The gaming portal is fully the majority of gaming payment provid- INTRALOT has been on the “iLottery responsive, using a mobile-first ap- ers and a mobile push notifications forefront” well before it became a trend proach that ensures optimal UI/UX for and campaign management system for or a reality. Lotos Xi, INTRALOT’s latest mobile devices and a powerful built-in boosting player engagement. state-of-the-art digital Lottery solution, CMS that allows Lottery operators to To sustain their sales operations in is a holistic offering that enables Lotter- manage the site layout per viewport, today’s challenging business environ- ies to embark on the digital transforma- offering a fascinating player journey ment, Lotteries need to become faster, tion journey, rapidly and securely. for all screen sizes. Furthermore, the more agile and more versatile, adopting LotosXi native applications for iOS and In terms of infrastructure, iLottery solu- an out-of-the-box approach regarding Android use totally native implementa- tions should be quickly deployed and online solutions. By offering fast and tion, as well as mobile push notifications adjusted to any hardware demand varia- engaging multichannel content in a user- opening a new communication channel tions, i.e., processing power, memory friendly and simplified manner, INTRA- between Lotteries and end users. or disk capacity, etc. Designed and LOT’s LotosXi provides a unified player developed with flexibility, scalability, and Rapid deployment and fast time-to-mar- experience, driving the efficiency and speed of deployment in mind, Lotos ket are key factors that alleviate the ef- growth of Lottery operators worldwide. n

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 31 As the industry adapts for a post-pandemic future, IGT is paving the path for success. The company is building on consumer trends and applying research-driven solutions to support lottery customers in the transition to what’s next.

The post-COVID-19 world may still be coming into focus, but IGT is thinking about the future. No one is likely to forget the recent challenges in the industry. But even in today’s changeable environment, operators can harness the momentum of evolving consumer preferences and behaviors to build a stronger connection with players — and support sustainable growth at a time when funding for good causes is more necessary than ever.

32 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 Favoring the In-Store Experience Despite of the rising trends noted above, Global analytics and trends agency, the the research also shows that many U.S. Foresight Factory, IGT’s longtime re- and U.K. consumers continue to prefer search partner (see sidebar), has found the in-store experience to shopping that many of the retail and consumer online. Approximately 50% of consum- trends impacting lottery prior to the ers surveyed in these markets say that, pandemic remain highly relevant. And post-pandemic, they will shop in store some familiar ones − such as the move the same amount as before. And, in the to a “convenience culture” and a cash- Foresight Informs U.S., close to 30% say they will do it more less society − have rapidly accelerated than before. This is good news for the Future Growth with corresponding health and hygiene lottery industry, which can take advantage concerns related to COVID-19. Along with substantial of multiple opportunities to improve the The following fi ndings from Foresight player experience at retail. investments in global player Factory research point the way to strate- studies and new product-category gies that lottery operators can use to A Surge in New Activities research, IGT works with a range harness consumer preferences and help The crisis has also produced a surge of of independent research fi rms. ensure sustainable performance and new activities, with 75% of consumers IGT’s longstanding partnership transfers in the coming years. surveyed stating that they have tried with the consumer analytics and a new shopping behavior. A full 36% trends agency Foresight Factory The Rise of Presence- of those surveyed by Foresight Fac- provides access to: Free Living tory reported trying a new brand since Pre-pandemic, the concept of “Pres- the start of the pandemic, calling into • Multiple data sources to ence-Free Living” was already trend- question the concept of brand loyalty, understand consumers ing upward, along with the growing and 73% of these respondents say they worldwide acknowledgement that in a connected intend to continue incorporating new world, a physical presence is no longer brands in the future. The benefi cia- • Insights drawn from data necessary or desired for many transac- ries of this shift include big, “trusted” collected from 50,000 brands that are seeing 50% growth tions and experiences. Consumers have consumers in 27 markets become more aware of the associated during the crisis — including major costs of in-person experiences, whether digital and brick-and-mortar retailers. • A team of 500 trend Many lotteries operate in monopoly or in time, energy, money, or environmen- spotters in 80 markets pseudo-monopoly markets, but brand tal considerations. And the widespread to analyze and add local encouragement to socially distance and loyalty is important if lottery players perspectives fi nd alternatives has only boosted this switch away from the retail brands where they currently buy lottery. trend. • A process of innovation- scanning to uncover The Continuing Shift to disruptive and best-in class Online Shopping examples across technology, Unsurprisingly, weekly online shop- Trends like these give the industry an products, services, branding, ping has doubled in the U.S. and the opportunity to leapfrog on the path to and other communications U.K. since the start of the pandemic, modernization and initiate the changes including a dramatic increase in online that are most relevant to consumers now. • Social media analysis to shopping for the 65+ age group. The measure the volume, key What’s more, lotteries are moving Foresight Factory found that the shift topics, and tone of emerging within this age group went from 19% forward from a position of strength: In themes pre-pandemic to 49% post-pandemic, North America, many lotteries expe- rienced record-breaking sales and highlighting the impact of the coronavi- This established partnership rus on the behaviors of those who were transfers to good causes in early 2020, with Foresight Factory allows reluctant converts to the digital age. a trend that is continuing through the When the pandemic recedes, these latter half of the year. This is an amaz- IGT to provide lotteries with fi gures may drop slightly, however, The ing accomplishment in the middle of a more research-based consumer Foresight Factory expects the overall pandemic and a testament to the resil- insights and devise tactics and trend towards more online shopping to ience of lottery, the strength of lotteries’ solutions to help customers continue. operations, and their hard work and address industry challenges. partnership efforts with vendors.

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 33 As operators continue to weather conveniently offered in-lane during the gro- changeability, the question be- cery transaction. IGT recently collaborated comes, “What do the trends that with the Texas Lottery Commission on the have strengthened during this time fi rst implementation of the NASPL API to mean for the future, and how can enable print-on-receipt paper tickets at HEB we act on them to support further supermarkets, as well as Quick Tickets™ sustainable growth?” for Powerball and Mega Millions at Dollar IGT has identifi ed the following General stores. Both implementations have tactics to capture opportunities to been successful and there is active discus- better serve retailers and players, sion about expanding this opportunity for meet post-pandemic requirements, instant tickets, given that most sales in and build on current successes. Texas are derived from instants. And recent pilots at fi ve Albertsons stores in the Dallas/ Fort Worth area showed that an IGT-pro- vided in-lane instants solution can increase store sales more than 20%. Evolving Lottery Loyalty Programs: Some lotteries have partnered with retail chains and retail associations to offer promotions via a lottery’s or store’s mobile app. These At Retail: While trend data confi rms that many consumers still prefer the types of affi nity programs have been used in-store experience, more than 70% of broadly to the benefi t of both the retailer shoppers also report needing further and the lottery as a method to attract con- reassurance around hygiene concerns. sumers to retail and to specifi c product of- Contactless and curbside pickup are fers. They are also another way to generate accelerating. And, in the U.S., there loyalty among players, for example, by of- is strong intent to continue these fering players a discount on their purchase if activities, as hygiene has supplanted they are willing to download the lottery app convenience as a reason for consumers on their mobile device. to pay by contactless means. It will re- IGT recently introduced digital couponing main vital to reduce consumer anxiety functionality in Texas, and player response around completing transactions. Self- has been very positive. During the month of service is a natural way to help achieve August, when the lottery was promoting its this, through vending machines, in-lane mobile app and offering the digital coupon, purchasing (see “Expanding In-Lane”), installs increased nearly 26% compared to and online fulfi lment. IGT’s cashless- the previous year. Year-over-year page views enabled vending machines and other were up 22%. The promotion also appears state-of-the art solutions support health to be driving repeat visits, with more return- and safety as well as responsible play, ing users during the promotion than in the while offering consumers the preferred previous two months. experience they are using today for other Offering “Connected Play”: Given the cur- purchases. rent environment, enabling the omnichan- Point of Purchase Strategies: Traditional nel journey that bridges the retail and point-of-sales materials that advertise digital space – what IGT calls Connected vending machines’ features can be used Play – is a critical component to aligning to inform consumers about the benefi ts of with new consumer expectations. using the machines. Including a QR code For players, Connected Play starts with on vending machines can encourage play- their mobile phone and access to a lot- ers to scan and learn more about digital tery’s convenience app. IGT now provides offerings. a mobile app to 11 U.S. lotteries, with Expanding In-Lane: In-lane sales is an- functionality ranging from locating a retailer, other way for lotteries to expand distribu- to checking winning numbers, to mobile tion while meeting consumers’ need to couponing. minimize contact points. Many consumers Some players use paper play slips to make who are reluctant to go to the customer their number selections, so another contact- service desk to buy lottery tickets might less opportunity from IGT is to offer players be willing to purchase them if they were digital play slips that can be scanned not

34 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 only at traditional lottery terminals but provide additional functionality. For possible for lotteries to communicate also at vending machines. This func- example, with light registration, IGT with players directly through CRM tools tionality also allows players to store can embed a unique ID into the digital with more personalized and relevant their favorite numbers in the app rather play slip, allowing operators to associ- messaging or offers, based on players than use paper slips that they must pick ate transactions with player profiles, individual behaviors and preferences. up and fill out in store. providing additional data that opera- Many lotteries already offer players the tors can analyze to improve the player ability to scan their ticket on a mobile experience. device to check if it’s a winner. Working The next step in enabling Connected with IGT to enable a Connected Play Play is to introduce digital tickets. Im- experience will allow players to have portantly, this remains a retail transac- lower-tier winnings paid digitally to tion, so lotteries can offer a digital- Critically, all the features and functional- their eWallet or bank account. IGT in-retail solution even if they are not ity of Connected Play provide opportu- can also assist customers in offering a permitted to offer internet wagering. nities for lotteries to better understand digital payment option, another way And digital players who have funded their players and offer solutions to meet to improve the player journey − and their lottery eWallet can apply unused growing expectations for a frictionless one that is consistent with how most funds at retail – either at a traditional purchase and play experience. consumers are transacting today. terminal or at a vending machine – to Change is inevitable, and the need for Of course, one of the big questions purchase tickets in store. it has accelerated. As 2021 approaches, here is, just how frictionless should When players have the prizes from a IGT looks forward to being our custom- transactions be? The issue of facilitating winning ticket paid to their eWallet, it ers’ partner for the future, working with a completely anonymous player journey eliminates cash handling for retailers lotteries as they develop their business versus some type of light registration, and players and keeps funds safe in the plans and seek to bring new player ex- such as a phone number and name, wallet for future purchases. Use of the periences to life for ongoing success. is one for each lottery to determine eWallet is another feature that makes based on its market, regulatory envi- the lottery journey at retail contact- Contact your IGT account ronment, and the level of consumer free, more hygienic, and at the same representative to learn more about acceptance. time gives lotteries visibility into the Connected Play and solutions to When some type of player-registration full spectrum of transactions to know adapt lottery to new consumer occurs, IGT can work with lotteries to their players better. It now becomes preferences and behaviors.

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 35 A PARTIAL PRODUCT SOLUTION IN THE TIME OF COVID-19 AND BEYOND? Dr. Barry Goodstadt, Principal and Founder of Telecom, Utility & Regulatory Consulting, LLC, Bethany Beach Delaware BACKGROUND The emergence of Covid-19 in the United States has had a dramatic impact on the US economy in general. The economic effects impacts on the travel, tour- ism, entertainment, and gaming industries have been especially severe. These impacts were occasioned by wide-spread shutdowns as their cus- tomers were advised to only leave the safety of their homes for essential purposes in order to stem the contagion. In the gaming industry, casinos were closed in many states for several months and began to re-open over the summer with capacity limitations and social distancing measures (such as moving card gaming stations to outdoor tents in Washington State). Lotteries and casinos have experienced some mixed results applying a variety of innovations for example:

• Most lotteries experienced a rise in “scratch off” sales • Kentucky found that its instant play and lottery sales were up over 2019’s record results • Texas found that its jackpot lottery has grown • North Carolina found that its educational lottery has increased revenue • Maryland has experienced a small rise in casino revenue on a year-over-year basis

36 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 Other states have experienced declines: gestive of the value of speci c games might very likely”, “not at all likely” or “not sure” be enhanced by making them available as they would sign up for iLottery. Respon- • New York has experienced a $550 mil- o erings in the iLottery program. dents also had the option of indicating that lion revenue decline for Fiscal Year, 2020 To further examine this issue, we carried out they already had an iLottery subscription. • West Virginia is losing $9 million a a reanalysis of the March, 2020 nationwide To estimate the likelihood of adopting week at its closed casinos Harris Poll of 2,011 respondents. Several iLottery, we used a conservative approach to speci c analyses were performed, including: analysis of these data by applying an 80/20 • New Jersey, Pennsylvania and Ohio • Examining the likelihood of subscribing rule (i.e. we assumed that 80% of “very have limited spending and imposed hir- likely” and that 20% of “somewhat likely” ing freezes. to iLottery among non-players. is analysis will reveal the extent to which cases would actually subscribe to iLottery). These mixed results raise questions about iLottery can expand the overall gaming To the percentage of likely players we added the future strategic direction public lotteries market by attracting non-lottery-players in the percentage of those players who had indicated that they already subscribed to and casinos need to pursue. This is particu- to lottery gaming. iLottery. e total percent of likely iLottery larly the case since much of the revenue • Examining the likelihood of subscribing subscribers among gaming players and non- from public lotteries and casinos goes to to iLottery by current players of tradi- playing segments is shown in Figure 1. support education. One potential vehicle tional lottery games; and for gaming growth includes iLottery which e  gure reveals that 15.62% of non- provides a “touchless” approach to gaming • Determining the level of interest in Players and 35.66% of Gaming Players in which players use the internet on portable subscribing to iLottery among current were likely to adopt iLottery. In population players of casino games. devices to engage in playing the lottery or terms, this means that 11.9 million Non- other gaming pursuits. Players would pick up iLottery thereby INTEREST IN SUBSCRIBING TO adding to the currently playing population. At this point in time a number of states have ILOTTERY AMONG CURRENT Among current gaming players, approxi- successfully implemented iLottery programs LOTTERY/CASINO PLAYERS AND mately 63.4 million would be likely to make including Michigan, Pennsylvania, New NON-PLAYERS use of iLottery. In March 2020, it was determined that Hampshire, North Carolina, Kentucky, Rhode It should be noted that we do not know 30% of all adults had not participated in Island, Georgia and most recently, Virginia. how these adopters would make use of any lottery or casino games in the past iLottery. at is, will they use iLottery 12 months. ese “non-players” re ect a as a complement to their current gaming population of 76.15 million persons in the WHAT IS THE MARKET FOR behavior or will this new o ering be a U.S. while gaming players represented a ILOTTERY SERVICES IN THE US? substitute for their currently lottery ticket or population of 177.7 million adults. In a 2020 paper by Goodstadt, Fulton & casino visiting activity? Of course, it must Chew , the authors analyzed a March, In the survey, respondents were asked to be recognized that ilottery use may be more 2020 nationwide Harris Poll of 2,011 indicate how likely they would be to sign up convenient than visiting a brick and mortar respondents (data were collected between for an iLottery service in their state. Were lottery retailer or visiting a casino but it may March 2 and March 4, 2020) to develop a they “very likely”, “somewhat likely”, “not also be a less immersive experience. forecast indicating that approximately 25% of the population would be likely to sign up for iLottery services o ered by their state FIGURE 1 lottery organization. In addition, the survey indicated that 5% of the respondents had Likelihood of Subscribing to iLottery Among Current already obtained an iLottery subscription. is suggests that demand for iLottery is in Gaming Players and Non-Players the neighborhood of 30% overall. Analysis of the survey also determined that interest 40.00% 35.66% in iLottery was particularly strong among 35.00% Millennials and Gen-Zers—key major 30.00% population segments that have not been signi cantly engaged in gaming either in 25.00% lotteries or in casino games. 20.00% 15.62% As part of this paper we undertook an 15.00% analysis of the relationship between particu- 10.00% lar gaming activities and interest in signing up for iLottery services. at is, we sought 5.00% to understand whether interest in playing 0.00% particular games is associated with interest NON-PLAYERS GAMING PLAYERS in iLottery. is in turn, would be sug- Continued on page 43 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 37 FEATURE

STAYINGAt a time when there AHEAD is a renewed focus on issues of racial and social justice, IGT has updated its Diversity & OF THEInclusion strategic GAME plan and expanded the IN conversation with employees through a series of virtual, company- EXTRAORDINARYwide dialogue sessions. TIMES The release of the 13th annual IGT Sustainability Report continues the company’s longstanding practice of reporting transparently on its efforts to advance the goal of socially responsible corporate citizenship.

The COVID-19 pandemic may have presented the world with extraordinary challenges, but IGT remains focused on its commitment to responsible and sustainable practices. The company’s newly released 2019 Sustainability Report celebrates the efforts of IGT people around the world to help customers and communities stay ahead of the game and create value for the wide range of IGT stakeholders.

As detailed in the report, IGT continues to fulfi ll its promise to deliver unrivaled gaming experiences that engage players and drive growth. And the company’s commitment to employees’ well-being, high standards of integrity and ethical conduct, and Diversity and Inclusion (D&I) are central to IGT’s ongoing pledge to grow sustainably.

38 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 IGT's corporate social responsibility as the Sports Wagering Integrity Monitoring As- sociation, to support responsible gaming in the strategy is centered on four betting vertical by addressing concerns around key pillars: Valuing our People, match-fixing and continuous monitoring. Advancing Responsibility, Supporting As the only supplier with three business oper- our Communities, and Fostering ations certified by WLA and G4 for its commit- ment to Responsible Gaming, IGT is intently Sustainable Operations. Following focused on player protection. Through its are highlights from the new report: comprehensive responsible gaming program, IGT contributes features and capabilities to promote safer gambling and prevent under- age play. To protect data, a robust security incident management system is enacted to IGT supports a fair, inclusive culture where prevent cyberattacks 24 hours a day. all employees feel valued, respected, and engaged. In 2019, the company’s Office of Diversity and Inclusion expanded its number of employee Diversity & Inclusion Groups (DIGs) from two to IGT supports communities where it operates five. In addition to the Pride with IGT LGBTQ+ through corporate programs that align with group, and the WIN with IGT Women’s Inclusion the nine out of 17 United Nations Sustainable Network group, 2019 saw the addition of Super Development Goals (SDGs) that the com- Abilities at IGT, which empowers and promotes pany committed to in 2018. IGT’s Community the rights of people with disabilities; Military Ambassador program focuses on community Veterans at IGT; and a group for employees age engagement at the local level while aligning 50 and over. The Office of Diversity and Inclusion with global giving efforts. also added four regional D&I Councils – EMEA, The company’s flagship community initia- Asia Pacific, Italy, and Latin America and Carib- tive, the Afterschool Advantage Program, bean – to strengthen and enhance the work of has provided non-profit community agencies the Global D&I Council. and public schools with more than 300 digital Professional Development is one of the most im- learning centers in the past 20 years to help portant elements for the success of an organiza- underserved children gain critical, competitive tion, as every employee’s skills and know-how skills, further supporting the SDGs. In 2019, IGT are key to reaching the business goals. IGT’s refreshed the program to support inclusive and commitment to this effort includes Individual equitable quality education and future employ- Development Plans, a global learning program ment with an emphasis on Science, Technology, for managers, and customized training to sup- Engineering, Arts, and Math (STEAM). port employee development and continually Employee-driven giving programs comple- improve the company from within. ment the corporate programs by supporting the local causes that are important to indi- vidual employees.

IGT is committed to player protection and product integrity. In 2019, the company joined Effective and reliable monitoring systems allow the Global Lottery Monitoring System, as well IGT to assess its progress in continually improv-

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 39 ing the company’s environmental As a new year troubleshooting for point of sale management systems and reducing begins, IGT continues terminals. IGT also a received an its environmental impact. IGT has to look ahead, FTA Sustainability Excellence Award continued to increase the boundar- for implementing a volatile organic ies and accuracy of its greenhouse connecting players compound reduction program in gas (GHG) emission monitoring and around the world the flexographic printing operation reporting through a web-based tool. with best-in-class at the instant ticket printing facility In 2019, 227 sites were involved in solutions that respect in Lakeland, Florida, transitioning the data collection, covering 100% both people and the from solvent inks to a full water- of IGT’s active locations. The com- environment, while based ink system. pany continued its commitment to delivering excellence The company extends its com- reducing CO emissions and waste, 2 mitment to fostering sustainable increased recycling efforts at its Reno to keep gaming fun and safer for all. operations to suppliers, who must manufacturing facility, implemented meet high economic, ethical, and efficient lighting schedules to save environmental standards as outlined energy at the Las Vegas campus, and For more information, download the IGT 2019 Sustainability Report, in the company’s Supplier Code of successfully lowered emissions for available now on IGT.com. Conduct. n Lottomatica in Italy by using remote

40 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 Instant Scratch-os continued from page 24

e-Scratcher or delivering tickets to players "The incredible scratch sales through a courier service. If the COVID experience has taught us anything, it’s that numbers show it is still the most we have to be prepared for any situation, popular product lotteries offer. We are and that includes our most important sales points being shut down.” confident that it will continue in that Charlie McIntyre is one director you won’t have to convince of the importance spot for years to come." of alternative sales channels. Since New Hampshire launched its iLottery platform more than two years ago, growth was keep inventory moving, plan for the future. “ is has been an interesting, sometimes steady. Until the pandemic when growth e result? Mission accomplished. exciting, year for the lottery industry as accelerated. eir e-Instant sales are up there have been so many ups and downs,” Brad ompson has worked with lotteries more than 100% over last year and the she said. “But so many lotteries nished for more than 25 years at Pollard Banknote. growth shows no sign of stopping. He said that after some initial tense their scal years on high notes and I’m “ e key for us is that there hasn’t been one moments, his company realized that it proud that my colleagues at Scientic blip in the sale of traditional products since could continue to provide their customers Games played a role in that success. We our iLottery launched, including during with the products they needed and the also need to praise lotteries and retailers, the pandemic,” Charlie said. “iLottery services they required, while still keeping who really responded well in some dicult is about grabbing customers across all everyone healthy and safe on both sides of conditions.” channels and adding players new to the the equation. “ e incredible scratch sales numbers lottery. As I’ve said to retailers, I’m not show it is still the most popular product “Initially we were elding calls about looking at building a business that can- lotteries oer. We are condent that it will pushing back games, lotteries asking about nibalizes brick and mortar sales. We want continue in that spot for years to come. Of the status of our warehouse and shipping to build incremental sales by attracting course, we need to continue to modernize operation, and would the presses keep new players. I’m going after the folks that lottery to attract new player groups, appeal running,” he said. “Once it became apparent play Candy Crush while waiting in their to new play-styles favored by younger that we were going to be just ne on that doctor’s oce or pay money to play online demographics, and energize our core front, we switched to the opposite issue – games that have no payos. at’s who players. But even in this era of technologi- how do we keep the ticket pipeline open and we’ve been missing and that’s who I want cal advancements, the paper scratch ticket get tickets to all our customers in a timely to add. I’m all about protecting our retailers sold at retail is still very much the staple fashion? Each lottery has dierent needs, while we explore new technologies.” so we had to be exible and make sure our lottery product.” In Kentucky, iLottery has seen incredible customers’ needs were taken care of. is is Second stop – What have the past growth this year, with e-Instants 280% where relationships are important. We need nine months taught us about player above last year and 140% above goal. lotteries to trust us that we’ll deliver the behavior and product development? However, e-Instants are only about 7.5% of products they need when they need them total sales. and to help them continue to drive sales.” All the panelists had been through similar experiences and Beth invited them to “iLottery is certainly the future of the “At all our plants, our number one priority discuss insights picked up in 2020 that lottery, but for now instant tickets have is to keep everyone safe. For example, at our might stick in the post-COVID era. How been driving our sales over the past few manufacturing facilities, all but essential will they use these experiences to drive sales years,” said Mike. “One thing that has workers were sent home to work so we could over the next few years? changed is that our $5 ticket sales have safely keep the presses running. Our No. spiked and that has really become our new 1 concern was to keep COVID out of our e operative word from all panelists – entry point, as opposed to the $1 and $2 plants so our production employees could CONVENIENCE. Let’s make it as easy tickets. Given how many people are now safely continue to work. And knock on as possible for players to purchase lottery jumping in at $5, we’re going to look at wood, so far it’s been good.” products. that price point very carefully. We need to Having worked on both the lottery and “We know a certain percentage of our make sure we have plenty of those games commercial partner side of the lottery player population is always going to want in our vending machines and dispensers. business, Meghan Dondero brings a unique to purchase products at a brick-and-mortar Players clearly love them. perspective to the situation the industry retailer,” said David. “Hand the clerk “We are certainly concentrating our has faced this year. Now as a Regional Vice money and receive a ticket. at part of our attention on promoting iLottery while President for Scientic Games, Meghan has busines will never go away.” working on our traditional products. used that rsthand lottery-side experience “But one thing many of us have not done We will keep both categories relevant to to help her customers weather the bumpy well is provide consumers with convenient players, oer engaging games and attractive waters of 2020. ways to play our games, whether that’s an payouts, and market the tickets aggressively

PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020 41 on the internet and through traditional “To me, a loyalty program is a great way to “If we want that next generation of players, marketing. Together, these products will attract new players, particularly the younger we have to stay relevant, stay convenient, provide us with strong sales numbers at the demographic,” said Brad. “ ey take to these and oer them products with good value. end of the year.” types of programs and we can build anity Most lotteries have good physical products to certain brands among customers. By and we need to use those to attract the And this brought the panel to a discussion launching loyalty rst, a lottery can build its new players until all lotteries have digital that is taking place at many lotteries these database, learn more about its players, and options.” days - multi-channel marketing. With more then market to them directly. is is how products being oered via the internet Charlie McIntyre: “We have to not be Michigan started so quickly and successfully.” (whether it is subscriptions, single-draw afraid to make mistakes. Whether it’s terminal-generated tickets, or e-Instant “Even once a lottery launches an iLottery ending under-performing games or taking tickets), lotteries are deciding how best to program, a loyalty platform should remain. a risk on a new initiative, like iLottery. reach players. is is also a great way to drive players Sometimes we’re afraid of making big from digital to retail through couponing moves and big changes because we fear Having worked on product plans as an and other incentives. Allowing the virtual repercussions. at has to change. Progress employee of the Georgia Lottery prior to and brick-and-mortar worlds to co-exist will only come with taking risks.” moving to Scientic Games, Megan brings can only help sales and allow lotteries to Mike Purcell: “Creativity – we need a unique perspective to the discussion. attract new players.” “It is incumbent on lotteries that these as much of it as possible in the lottery channels peacefully co-exist because it’s not In New Mexico, David wants to retain industry. Often, we are not as creative as necessarily one player buying one product these players who migrated to the lottery we can be with our games and our prize and another player buying the other,” she when there were no other entertainment structures. e more expensive the ticket, said. “So, marketing eorts need to take options. “We know that we gained casino the higher the payouts – but mixing up the players during the height of the lockdown prize structures within our games can only this into account. You can’t just move all and we need to keep them by oering at- help our sales. Just a small move can make your marketing onto digital devices as tractive products,” said David. “ ese new a dierence.” you’ll miss some players. players were attracted Meghan Dondero: “Out of the tragedy to the $5s and $10s, of this pandemic has come some positive “These new players were and that is where activities for lotteries. I think the door has we’ve seen remarkable been opened for so much innovation and attracted to the $5s and growth. at is a new ideas in the future. One important $10s, and that is where valuable new player thing we have to do is try and maintain as group and now we much of the new player base we’ve gained we’ve seen remarkable have to keep them.” as possible. Holding those players will only “We can also keep help our businesses going forward.” growth. That is a valuable these players, and Brad ompson: “I think we need to attract others, by continue to focus on prize structures. To new player group and now oering all the things those lotteries that are able to add a pool or we have to keep them.” mentioned – iLottery, two of tickets to their run lengths, this is loyalty clubs, apps. an opportune time to take a look at prize ose are all things structures. It doesn’t mean you have to that are part and maintain the exact same prize structure. parcel to a good portfolio that will succeed You now have more leverage to create better “ e great thing about iLottery is that you can into the future. If lotteries can achieve that prize structures for your games. Bigger make traditional games fun and attract the balance, they will be in a good place with ticket runs mean bigger prizes and more player Charlie mentioned, the person waiting their customers and retailers.” attractive prize structures. is will attract in their doctor’s oce or already playing online Final Stop – What are the important and retain new players, particularly those games and would like to try out the lottery takeaways? typically attracted to casinos.” games. But that’s not to say that the new player David Barden: “Brick and mortar – it will might not also become a buyer of traditional And the nal word went to roundtable always be there, it’s where we plant our ag products at retail. at’s why cross-marketing host Beth Bresnahan: “What I’ve learned every day we go out and do business. But eorts are so important.” this year is that we have to be nimble, and how do we get our key product – instant that’s not something we are used to as an With Pollard and its NeoPollard joint tickets – into new spaces, whether that’s industry. We have to be bold and make venture (in partnership with NeoGames) through e-Instants or a courier model? I choices that weren’t in our plans but are oering iLottery programs to a number of have a 24-year-old and 25-year-old and needed if we want to keep our momentum. lotteries, Brad has seen the power of digital. when I ask them ‘What do you like about Let’s not lose these opportunities we have For states that can’t yet oer iLottery, Brad the lottery?’, they say ‘We don’t like the gained throughout 2020. Let’s make 2021 said it’s the “old school” loyalty program lottery.’ ey aren’t going to stand in lines an even better year for our retailers and our which could be the rst “toe dip” activity to buy a product. ey want to play on customers.” n for lotteries and their players. their phones.

42 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 Lotteries, Casinos and iLottery continued from page 37

IMPLICATIONS FIGURE 2 1. iLottery will expand the market for lottery and for casino games by Likelihood of Subscribing to iLottery Among Sports attracting new consumer groups and Betting, Keno, Scatch-off and State Lottery Players consumers who do not play the lottery at land-based retail. 2. iLottery will reinforce the loyalty and playership of currrent players are Sports Betting 54.26% interested in using a touchless methods and the convenience of playing online. Keno 46.20% 3. e level of interest among existing lottery and casino players in obtaining State Lottery 35.56% iLottery services suggests that such o erings will have wide appeal to existing players and may enhance the Instant Scratch-off 35.38% ability of state lotteries to increase funds transferred to bene ciaries whose 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% budgets have been negatively impacted by the Coronaviris pandemic. 4. ILottery complements existing land- iLottery subscription rates for casino players INTEREST IN SUBSCRIBING TO based lottery and casino gaming services with di erent game interests. e data ILOTTERY AMONG CURRENT but it does replace the kind of immersive indicate that players who plav video lotteries PLAYERS OF TRADTIONAL GAMES experience associated with casino visits in casinos evidence the highest interest in and playing the lottery in the stores. As the  gure reveals sports betting players iLottery subscriptions (49.5%) followed by exhibit the highest likelihood of iLottery table game players (48%) and 5. Implementation of iLottery needs to subscriptions (54%), followed by Keno players (40%). take place in a fashion that supports the players (46%), State Lottery players (36%) ongoing role of lottery retailers in this and Scratch-o players (35%). Given ese data suggest that iLottery platforms process. Lotteries that have been online the interest of players of these games, the need to take into consideration the needs of for years have already shown us the way. iLottery platforms need to be con gured players of video lotteries, table games and rough a wide variety of cross-promo- in a way that supports the interests of these slots players so that the game interests of tional strategies, players are incented to di erent game constituencies. these di erent constituencies are addressed play at land-based retail and online, the by iLottery systems. For casino players, results being higher engagement and INTEREST IN SUBSCRIBING TO this will be particularly important since the a growth rate at retail that is higher in ILOTTERY AMONG CURRENT game experience is immersive in nature and iLottery states than in states that do not PLAYERS OF DIFFERENT CASINO it will be a challenge to provide the same have iLottery. GAMES level of stimulation on an iLottery platform. Dr. Barry Goodstadt is Principal and Founder Figure 3 provides estimates of the likely of Telecom, Utility & Regulatory Consulting, LLC, based in Bethany Beach Delaware. Dr. Goodstadt is a social/organizational psycholo- FIGURE 3 gist and researcher with more than 25 years of Likelihood of Subscribing to iLottery Among Casino Video experience in assessing consumer behavior and consumer choice for a number of private  rms, Lottery , Casiino Table Game and Casino Slots Players trade associations and government agencies. His work has focused heavily on new product development, particularly on the di usion and Video Lottery in a Casino 49.46% consumer adoption over time of new digital products. is work includes analyses of di eren- Table Games at a Casino 48.04% tial adoption across generations (e.g. Millennials vs. Gen-X vs. Baby Boomers). He has extensive regulatory consulting experience and has testi ed State Lottery 40.38% before numerous public utility commissions and legislative bodies. n

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 43 SWOT Roundtable continued from page 15

“We’ve done a lot of testing and we know that of steps that sometimes involves alternate debates. Whether a lottery or another Australia and the UK are ready for a $5 price payment forms. It can be complicated, state agency is overseeing sports betting, point and multi-day drawings,” she said. “It’s especially for a multi-jurisdictional imple- all lotteries must monitor this additional been 10 years since we started pressing the mentation that would involve dierent form of gambling. is includes non-sports price point to $2 in the United States. We will constraints from state to state. betting states with border states that allow have a platform in Australia to test the idea of “At MUSL, we’re working on a three- to it, as players may cross state lines to make an increased price point and if it works, we’ll ve-year plan regarding iLottery. What’s the their bets. want to seriously consider the same move national strategy that we can create to help “Sports betting wasn’t necessarily on my radar here. lotteries more eciently roll-out their own screen a few years ago but it has been my Firmly in the “Opportunity” category is plans for the category? We have 48 lotteries primary work in 2020,” said Rebecca. “I’m iLottery and all panelists agreed that if with 48 dierent agenda and dierent the regulator for mobile-only sports betting anything positive comes out of 2020, it’s that priorities. But there are only a small number which is now live in Tennessee. None of us the digitization discussion within the lottery of vendors that are supplying these programs knows what the threat will be to our tradi- industry is in hyper speed. From robust and only so many dierent ways to oer tional lottery products. But if sports betting features added to cashless purchasing to player these games. If we start there, with a plan is on mobile and lottery is not available on clubs to full online lottery sales, all lotteries that begins at the ground oor, the opportu- mobile, that is potentially a threat and is are having the internal discussion centered nities become much more achievable. something that needs to be rectied.” around “what can I launch and how soon Gordon said he is heartened that the Staying with “threats”, Drew said he, like can it be in the market?’” Some states, like industry, particularly the North American other directors, is concerned about the Maryland, are legislatively prohibited from Association of State and Provincial strength of the overall product mix. It’s selling lottery product online while others, Lotteries (NASPL), has answered the been widely discussed that Powerball and like Pennsylvania and Georgia, have seen clarion call for iLottery and responded with Mega Millions have faced strong headwinds internet sales explode since March. support and forethought. e realization over the past year-plus. But other games “In Georgia, we have worked hard to expand that this is not just a moment in time have been impacted by the pandemic too, the ability to buy our products without cash,” created by the pandemic, that iLottery is such as Keno which is primarily played said Gretchen. “It’s been a priority, both from here to stay, bodes well for the expansion at social settings. It’s troubling and needs a sales and safety perspective. And iLottery of iLottery into states beyond the handful addressing. provides another safe channel for sales. We’ve currently oering these platforms. “In Pennsylvania, as with grown the product 300% this other states, strong instant year and while we saw growth ticket sales are masking other throughout the rst three MUSL’s product planning problems because they are months of 2020, certainly the adding so much to our top pandemic was a major driver committee saw iLottery as line revenue,” said Drew. “But of this huge spike. we are seeing some signicant “My hope is that states like an important channel many long-term trends with our Georgia can assist lotteries product lines that we have not that are pursuing iLottery years ago and began to study had to address in depth because and want to share with our overall nancial picture their stakeholders that the best course for lotteries looks strong. I’m certainly adding this important sales grateful that my instant ticket channel will boost revenue sales are so strong, as they are without hurting retailers. just about everywhere. But the iLottery is not a threat to retailers…it is an “NASPL’s pivot to education and continu- conditions that contribute to those sales are opportunity for all of us to add new players, ing with seminars that provide lotteries not permanent, so we have to gure it out a younger demographic, and the overall with the information they need, especially sustainable solutions going forward.” lottery customer base. We need to get that with respect to iLottery, has been encourag- Closing out the discussion, Gretchen said message out there.” ing and helpful to this important cause,” that in this time of little travel and no While Bret agrees that the iLottery category said Gordon. “NASPL is a unifying in-person meetings, planning and commu- is the future for the industry, he sees the umbrella organization for all of us and they nication is critical. have certainly embraced that role this year. current status of the channel as a weakness “Taking us back to the subject of this panel and threat as well as opportunity, all in one. We’re a business with consumer products but we’re also government agencies. Having discussion, I love a good SWOT analysis and “MUSL’s product planning committee NASPL serve as the entity that can focus a good plan because it keeps us on a path saw iLottery as an important channel on the business side while we handle the to success,” she said. “We must also make many years ago and began to study the government side is incredibly helpful.” sure we keep open lines of communication best course for lotteries,” he said. “But the between our states. When we share informa- scattered approach to launching iLottery An additional opportunity for some tion, we are better as an industry and as is certainly a threat to gaining the new lotteries, a potential threat for others, individual lotteries. Together we can identify customers that will make it a success. It is a is sports betting. e increase in sports our threats and weaknesses, focus on our challenging category, it’s not like an instant betting has been eye-popping as it has strengths and act on our opportunities.” n ticket. You need people to take a number eclipsed iLottery in terms of legislative 44 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 Digitization of Retail Roundtable continued from page 18

For Intralot, these types of discussions players to choose their preferences, others tives can do their jobs better, quicker and are now happening at hyper-speed. While rolling out digital roadmaps. safer. lotteries are busy in the trenches working “At IGT, we use the data collected from “And third, as others have discussed, is on retailer issues, they are looking to the these mobile apps to inform our current improving the mobile experience, retailer vendors to concentrate on the “big picture” and future eorts. Certainly, using an app portal, web sites. Lotteries have to oer the issues. to purchase tickets is high on the list of same digital experience that players nd “ e technology is there, now we have player demands. In Texas, we also use the with Amazon and other online retailers.” to make sure it gets to the players and app to provide mobile coupons, and the Pollard Banknote’s Jennifer Westbury said that they understand how to use it and consumer reaction has been very positive. retail is where we must focus. “Lotteries trust it,” said Nick. “As more parts of our We feel that is a great opportunity for must expand their retail footprint. We need economy continue to build their online future customer engagement.” to fast-track our work with the Costcos, presence, from banking Dollar Generals, the stores to shopping, we will see that are located across acceptance of lottery multiple states and who technology rise among our “More than ever, mobile we know are interested in players. It might continue oering lottery. to be small for some players – QR codes and is the channel that “And as hard it is in these registering for player clubs. unsettled times, lotteries But that is how we can will be the technology must develop a roadmap. grow the digital footprint is will help lotteries decide for customers. As people future for all commerce, where to put their limited feel more condent in the resources. And this roadmap safety and security of our including lottery” must include digital. Where technology, the acceptance does a lottery want to go and use of this technology with its digital footprint? will grow.” e answer to this question will be critical for lotteries to Of course, there is a answer.” “middle road” between in-store sales of Of course, any discussion about moving lottery products and iLottery and that is forward with technological advancement Michelle Carney said that IGT has focused the courier or concierge services which have has to include an important topic – budget. investments on creating tools to advance been adopted in some states, including With states seeing lower revenue across the player journey and help lotteries use Texas. Gary said that while the adoption of their agencies, lotteries have to balance their resources to make lottery easier to buy this trend has been slow, it is here to stay. their spending against the nancial restric- and a better experience for players. “What we have seen over the past few tions they are facing. “Obviously each state’s investment will years with couriers just partially cracks the Max said he and his Carmanah colleagues be unique to that particular lottery,” she surface of the potential of these types of recognize the nancial pressure lotteries are said. “But in some way, all lotteries have services,” Gary said. “It is really about how facing but think that stressing the safety the same need to deploy technology that can we most easily get our products into that technological advancements oer expands points of distribution and evolves the hands of our players. Selling over the might help advance their causes. the player purchasing experience. Adding features such as mobile play slips, digital internet and mobile apps through outside “We’re working on technology that allows services is another tool in our toolbox.” tickets, various cashless payment and for in-store signs that are easily read before redemption options is important, as is Michelle Carney said that IGT has spent players get into the store,” he said. “ is making sure the technology is user-friendly much time studying digital adoption by lowers the time-in-store for players. So the when deployed, so players can easily players and what this means for the future lottery spends money on technology that download, register, and use it. of lottery sales. Mobile certainly leads the improves the shopping experience AND way, in most estimations. increases the safety of retailer personnel “Lotteries need to make decisions based on and lottery customers.” what’s best for their jurisdiction and what’s “More than ever, mobile is the channel happening within their state. But we see that will be the technology future for Nick said that he sees three areas where from the insights we collect that all lotteries all commerce, including lottery,” said lotteries might want to consider investing are dealing with the same types of issues. In Michelle. “At IGT, we deploy 11 mobile their budgets. “We think vending the end, we move forward as an industry by apps in the United States with varying machines are a critical component of the working together – vendors and lotteries – degrees of functionality, from pure basic channel mix for lotteries,” he said. “Second, to improve the player experience and make convenience to full iLottery. Each lottery lotteries need to look at sales automation the purchase of our product as safe and enables dierent features, some allowing tools, making sure that the sales representa- simple as possible.” n

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 45 PULSE of the Industry

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Governor Ron DeSantis Appoints brand awareness. e group will also look for NORTH AMERICAN John Davis Secretary of the ways to get players excited about the game despite a lower jackpot. launched NEWS in November 2017, shortly after Mega Millions raised in price point to $2 per play. Lotto President and CEO of the America is one of the few multi-jurisdictional draw games with a rolling jackpot that is just $1 Tennessee Education Lottery per play- a unique price point for a lottery’s draw Corporation Rebecca Paul game portfolio. Hargrove was unanimously reelected as president of the John Davis is Executive Vice President of the IGT signs retail sports betting Orlando Regional Chamber of Commerce. World Lottery Association (WLA) Previously, he served as President of the African agreement with Turtle Mountain for her second two-year term American Chamber of Commerce of Central Band of Chippewa Indians in Florida. Davis is active in his community, North Dakota volunteering his time with the United Way, Valencia College, Volunteer Florida, and Kappa Alpha Psi Achievement Foundation. John also IGT Secures Extension to serves on the Florida A&M University Law Continue Delivering High- School Dean's Advisory Council. A native of Performing Instant Tickets to the Pahokee, he earned his bachelor’s degree in Minnesota Lottery e WLA is a member-based organization with political science from Florida State University more than 140 government-authorized and where he was a standout safety of the Seminole licensed lottery organizations from more than football team. IGT's Seven-Year Contract 80 countries on six continents. e WLA’s Extension with Western Canada mission is to advance the interests of state- Director Lottery Includes Deployment of authorized lotteries through a variety of John Myers Appointed Chairman programs that foster relationships and establish of Lotto America Product Group best practices for lotteries across the globe. Enhanced INTELLIGEN System MUSL is a non-prot association that assists its Rebecca Hargrove has held several leadership for 4,200 VLTs in Saskatchewan member lotteries in multi-jurisdictional game positions within WLA, including senior vice development. ere are currently 38 member president and chair of its Corporate Social lotteries in the organization. “ e Lotto Globally relevant IGT cabinet Responsibility (CSR) Committee. She is the America Product Group is a brain trust of the backed by extensive research founding chair of the Women’s Initiative in 13 U.S. lotteries that sell the game,” MUSL Lottery Leadership, a program designed to and high-performing content Executive Director J. Bret Toyne said. “We are support the advancement of women into top excited to have Mr. Myers at the helm as the positions of lottery management, leadership group looks for innovative ways to promote and responsibility; and has also has served the product and assist participating lotteries in as president and/or chair of all oces of the raising money for good causes and beneciaries.” North American Association of State and Pro- One of the biggest challenges facing multi- is latest addition to IGT's high-performance vincial Lotteries and the Multi-State Lottery jurisdictional draw games is relevancy, and Peak hardware line, the PeakSlant32™ is the Association, as well as serving as president with Myers at the helm, the Lotto America Company's rst cabinet to feature three of the international industry organization Product Group will be looking for ideas and seamlessly integrated gameplay displays. A.I.L.E. opportunities to promote the game and build

46 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 INTRALOT Inc. and Camelot Il- IWG announces progressive industry-leading gaming cabinets linois Deploy Fast Play Games jackpot e-Instant games Kascada builds upon the gaming cabinet for the Illinois Lottery revolution Scienti c Games began with the introduction of the ALPHA Pro Wave®, the  rst curved-screen portrait cabinet.

e industry- rst feature is set to launch across Scientifi c Games awarded a new, Texas Lottery grows again, US and Canada. Jungle Jackpots is set to be the  rst title to feature IWG’s new progressive 10-year contract from the Okla- surpasses all-time sales record jackpots product. homa Lottery to supply lottery central gaming system services Pollard Banknote Ltd subsidiary and its world-leading Scientifi c Diamond Game has received Games Enhanced Partnership a two-year contract extension (SGEP) program from the e Texas lottery had a record $6.704 billion in Scientifi c Games has been sales for FY 2020. awarded a new, fi ve-year con- The Florida Lottery will tract from the Massachusetts introduce a new version of State Lottery Commission to Florida’s fl agship Draw game, Michigan Senate Approves Inter- supply its world-leading instant FLORIDA LOTTO® state Online Poker Bill games, second chance promo- e bill will now advance to the House of Rep- tions and digital engagement Ohio casinos, continue resentatives. If the bill passes into law, it would programs hot streak after re-opening with serve as an amendment to the Michigan Lawful Internet Gaming Act. a September record Five States Have Gambling Initia- Arkansas Lottery revenue sets tives on the Ballot This Novem- record in September $47.5M ber - Voters in Maryland, South Retailer's mobile app Jackpocket Dakota, Louisiana, Nebraska, offers way to remotely play lot- and Colorado Can Alter The Legal tery in Arkansas Landscape Of Local Gambling Markets. SCA, the industry leader in pro- Minnesota Lottery sales motional risk management, 'PlayAlberta', an online gambling announced that Bishop Woosley increase 5% to hit new record website in an effort to move high sales of Woosley Gaming Advisors, LLC. bettors away from unregulated will consult with them on the best sites and boost government BULLETPROOF™, a GLI solutions and services to bring to revenue launched in Alberta, the lottery industry. company, Announces Partner- Canada. ship with Missing Link Tech- INTRALOT Inc. and Camelot Il- nologies Ltd. and New Analytics Ontario Lottery and Gaming Cor- and Artifi cial Intelligence (AI) linois Deploy Fast Play Games for poration Announces A. Duncan the Illinois Lottery Practice for the Lottery Industry Hannay was appointed as Presi- dent and Chief Executive Offi cer EquiLottery Games Enters into Licensing Agreement with the New Hampshire Lottery Hires NBA Daniel Maloney as its fi rst Direc- After a COVID-19 Shutdown, tor of Sports Betting Every New York State Casino is Back in Business as of October 1 Scientifi c Games unveils Kas- cada™, the next generation of

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 47 PULSE

Virginia Lottery sales surge, as Gerald W. Beasley, Director of Adelson eyes Texas—will legal- gaming options multiply Human Resources and Compli- ized casinos be next? ance, Eldorado Resort Casino Shreveport, Louisiana, is the 2021 SPORTS BETTING IN recipient of the Arch L. Gleason THE U.S. Award for Responsible Gambling Lottery sales increased by $181.5 million, or Leadership. Tennessee sports betting went almost 36%, in the  rst three months of the live on Nov. 1  scal year that began on July 1, compared with STRATACACHE, the parent com- the  rst three months of  scal 2020, powered by the quick launch of internet sales of lottery pany of Carmanah Signs, has tickets. Even without the new internet boost, announced the launch of com- lottery sales increased by 13% in September at mercial grade LINQ all-in-one traditional retail operations. intelligent tablets Tennessee is the  rst state to regulate online Ohio casinos, racinos continue LINQ tablets are integrated across all digital sportsbooks directly, without the framework of signage, interactive experience, and mobile casinos or possession of a retail gambling license hot streak after re-opening from commerce/mobile shopping platforms in the as a precondition to operate a sportsbook coronavirus closings with a Sep- STRATACACHE family. online, a common quali er in the 18 other tember record states where betting is legal. Licensed sports- books in Tennessee must also abide by a 90% INTRALOT Inc. Secures Extension cap on payouts. Lottery.com to go public via SPAC to Continue Delivering the Suc- merger cessful Operation of COAM (Coin The Tennessee Education Lottery Operated Amusement Machines) Board of Directors approves the Successful Launch of PlayAlberta. Project to the Georgia Lottery initial list of sporting events for ca Marks NeoPollard Interac- Corporation online wagering in Tennessee tive’s Entry to Canadian Gaming With a close collaboration for the last six years, e Sports Wagering Committee of the Board Market INTRALOT and the Georgia Lottery Corpora- also approved 17 new vendors. ere are three tion teams have established a dynamic operation categories of potential applicants: licensee (op- On the 45th anniversary of the of monitoring and accounting for the COAM erator), supplier and vendor. De nitions can be project. Under the new contract, INTRALOT found in rules on the sports gaming page of the , Delaware will empower the Georgia Lottery with its state- website. ere are no restric- Lottery Director Vernon Kirk, of-the-art technology to modernize and support tions on the number of licenses that may be receives award for his 45 years of key business requirements. issued for interactive sports gaming operations, service but licensees and suppliers must meet suitability Pollard Banknote Limited has requirements. been awarded a fi ve-year con- tract for instant game tickets, Louisiana Sports betting to be on game designs, and marketing November ballot services by the Massachusetts State Lottery. IGT Announces Betting Pollard Banknote is pleased Partnership with the NBA to announce that its subsid- IGT becomes the  rst B2B sports betting iary Schafer Systems has been platform provider in U.S. to bring NBA o cial awarded a four-year contract data, marks and logos to regional casinos and from the Ohio Lottery Commission Gambling.com Group expands sportsbooks, further di erentiating its PlaySports business into Tennessee and sports betting solution through a multi-year partnership with the National Basketball A Las Vegas judge has sided Illinois Association (NBA). with former casino magnate Gambling.com Group has been granted regula- Steve Wynn in Nevada regula- tory approval to o er its services to operators in Virginia Lottery to license mobile Colorado, Indiana, New Jersey, Pennsylvania and tors’ attempt to ban him from the sports betting early next year gambling industry over sexual West Virginia. misconduct allegations. e Virginia Lottery is now reviewing 25 Billionaire casino owner Sheldon applications for 12 mobile sports betting permits, and the  rst licenses could be issued early next year.

48 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 New Jersey is on pace to but given the encouraging $140 million in total operating licences (remote and non-remote) break the $5.3 billion yearly handle it generated during August, the numbers already held through Jumbo’s wholly owned UK are expected to be staggering. Keep in mind the subsidiary Gatherwell. all-jurisdiction record set by in-person requirement was largely in place in Nevada in 2019. August and big time players such as FanDuel NeoGames Announces Pricing and DraftKings didn’t enter the market until the e $800 million it collected last month of $81.7 Million Initial Public end of the month. In September, PointsBet and generated $7.4 million in tax revenue—its William Hill joined amid the start of the NFL Offering highest monthly mark to date. It is also a regular season and during the NHL, NBA, and reection of the much lower margins generated NeoGames is a technology-driven innovator MLB playos. In other words, it was a perfect by sports betting than lottery. and a global provider of iLottery solutions for storm for sports betting in a new market – one national and state-regulated lotteries. that is expected to generate more momentum in DraftKings was fined by the state the months ahead. EL launches first lottery module of Iowa for failing to download on EL Learning Platform new self-ban list information DraftKings Launches Live Dealer Speed Roulette In New Jersey UK National Lottery sees record Gambling companies spend more online sales amid pandemic than $2M trying to persuade WORLD NEWS National Lottery operator Camelot quick switch Maryland voters to approve to online enabled it to overcome sports betting Malta’s national lottery operator an 18% hit to sales at the start of the coronavirus goes online with Intralot's LotosXi crisis to end its half-year with sales down just Indiana sports wagers top $200 1.7% to £3.85 billion. Digital sales increased by LotosXi enables operators to dene and oer 39% over the same period of the previous year. million in September, a new subscriptions for any available game and record manage its content, allowing full localization and parametrization of the user interface. Apollo Injects €500 Million Into Scientific Games Extends Characterized by an omnichannel philosophy SAZKA, also Buys Canadian and oering a wide range of innovative and Casino Giant Partnership with Hard Rock engaging games, along with player experience International for US Sportsand personalization through data analytics, LotosXi Czech lottery operator SAZKA Group’s bid for creates value both for the operator and the player. the license to operate the UK’s National Lottery iGaming Expansion just got major backing from Wall Street buyout fund Apollo Global Management which injected INTRALOT Notification for the €500 million to nance its expansion eorts. New Jersey: proposal submitted Recomposition of the Board of News also emerged that Apollo will acquire Great to allow betting on college Directors competitions Canadian Gaming Corp. in a deal that values the Further to its announcement dated 13 November Canadian casino operator at more than C$3.3 2020, INTRALOT announces the recomposition billion (approx. $2.5 billion) and represents the The Philadelphia Eagles into body of its Board of Directors, on the same private equity giant’s latest big move into the on Thursday partner with day, as follows: casino industry. Olympics chief Keith Mills is Sokratis P. Kokkalis, Chairman and CEO, Executive leading SAZKA’s National Lottery bid. DraftKings Member e deal includes the naming rights to the Field Constantinos G. Antonopoulos, Vice Chairman, Non- Executive Member Danish Gaming Authority Club at Lincoln Financial Field. It won’t be a Chrysostomos D. Sfatos, Deputy CEO, Executive Member sportsbook, but it will have the feel of one. Nikolaos E. Nikolakopoulos, Executive Member Spillemyndigheden names new Alexandros – Stergios . Manos, Non-Executive Member director Christos K. Dimitriadis, Non-Executive Member Iowa Fines DraftKings And Two Anastasios M. Tsous, Independent Non-Executive Member Anders Dorph has been appointed as director Casinos For Violating Regulations Ioannis P. Tsoukaridis, Independent Non-Executive Member eective November 1. He previously served Ioannis K. Tsoumas, Independent Non-Executive Member e Iowa Racing and Gaming Commission as deputy director of the Danish Immigration has ned DraftKings sportsbook, the Rhythm Service. City Casino, and the Diamond Jo Casino all for Jumbo Interactive Secures Spillemyndigheden reported a 19.2 per cent fall separate situations of violations. e violations Gambling Commission Software in gambling revenue in the rst half of 2020 due involved DraftKings being late to download new Licence Approval in Great Britain to the impact of the Covid-19 pandemic on land- self-ban list information, and the retail casinos for based gaming and sports betting. having security camera malfunctions. is enables Jumbo to supply its proprietary Software-as-a-Service (SaaS) online platform to Illinois Online Sports Betting GC-licensed operators, which in-turn provide Spain’s Online Gambling Market gambling and lottery services to consumers in Booming Grows 17.7% Year-on-year in Q2 Great Britain. e software operating licence 2020 e state has yet to release its September gures, is in addition to the external lottery manager

PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 49 TEAM USA IS READY TO BRING ITS INSPIRING, UNIFYING, PATRIOTIC AND OPTIMISTIC CHARACTERISTICS TO U.S. LOTTERIES

ith the Summer and lous four-day three-night Olympic Winter Games on the ho- themed trip to Los Angeles high- rizon, Team USA scratch lighted by an Olympic Gala at one W tickets are now available of the key venues of the upcoming for U.S. Lotteries. 2028 Summer Games in LA. ere And they could not have come a mo- are also four dierent Team USA ment too soon. As our country gets prize packs available for second ready to move on from the Pandemic, chance drawings. Your players can and a new administration is prepar- win an assortment of Team USA ing to take over in Washington, Team branded merchandise so they can USA is getting ready to create new display their love of their country memories for us starting with the and its athletes. delayed Summer Games in Tokyo in Consulting with and leading the July 2021 and the Winter Games in USOPP’s eorts is lottery industry Beijing in February 2022. veteran Steve Saferin, who founded And who cannot remember some of MDI Entertainment and virtually the incredible achievements and fond created the modern third-party memories of Team USA athletes and licensing side of the lottery indus- teams at past Olympic Games: try. Also involved are former MDI executive and now industry consul- • e Miracle on Ice. e 1980 US tant Jim Acton and NFL vet Gene Olympic Hockey Team composed Goldberg. of all amateurs stuns the Soviet Union in Lake Placid and goes on “I well know and look forward to to beat Finland and capture Gold the special feeling I get during the Olympics”, said Saferin. “I am grati- • e Dream Team. e 1992 US ed to work with the USOPP and Olympic “Dream” Team that not US Lotteries during these extraordi- only won the Gold in Basketball Team USA, through a subsidiary of the nary times. We have lived with the at 1992 Games in Barcelona but is called United States Olympic Committee, United restrictions brought on by the Pandemic for the greatest team ever assembled in any States Olympic and Paralympic Proper- close to an entire year and good news has sport ties (USOPP) is oering US Lotteries the been hard to come by. • Mary Lou Retton. She becomes the opportunity to employ Team USA marks, “Given the rapid development of vaccines rst Women Gymnast outside Eastern logos and even possibly Olympic athletes and the change in administrations in DC, Europe with win the all-around title from each lottery’s state in an integrated I believe that, like never before Team USA • Michael Phelps. e most decorated marketing plan for Team USA games. is going to swing into action at the perfect Olympian of all time. 28 medals earned “We are excited to bring the emotion and time to provide optimism and patriotism, at four dierent Olympic Games, con- excitement of Team USA to lotteries and to unify us and more than anything inspire cluding at the 2016 Summer Games in their players across the country,” said U.S. us. I have never felt greater anticipation for Rio when he won ve gold medals. Olympic and Paralympic Properties Senior an upcoming Olympics”. One thing is certain – more great memories Vice President of Consumer Products Peter Lotteries can now harness this anticipa- will be created in Tokyo and Beijing and Zeytoonjian. “ e upcoming Olympic tion and excitement and oer a Team there is little doubt we have never needed and Paralympic Games will be a special USA ticket to their players. Combined the Olympics more than ever to bring us moment for our country as the world's best with an exciting and robust second chance together like they do every four years. athletes come together to compete on the program, I am certain that players will be global stage. We are excited to share this intrigued and stimulated to show their For the rst time ever, all US Lotteries and moment with lottery players across the U.S. support for Team USA and our Country’s their players can be part of the action at the as they cheer on Team USA." Olympic Athletes.” Tokyo Summer Games in 2021 and the Bei- jing Winter Games in 2022 as our athletes e Team USA promotion oers a robust Lotteries interested in learning more about share with us their most important qualities; second chance program to maximize the Team USA opportunities can contact Inspiration, Optimism Patriotism and their participation, emotion and sell thru. All Steve Saferin at [email protected] or Unifying spirit. lotteries can oer select winners a fabu- Jim Acton at [email protected]. n

50 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 PGRI LIVE! 2021

PGRI’s digital platform is where the audience of thousands of industry professionals convene to forge new pathways that enable us to stay connected, share ideas and best-practices, and preserve our feeling of community. Let’s take this opportunity to transform for a new age, a digital era rich with tools for collaboration, communication, and interaction. This is a time for aspirational goals to inspire us to stretch the boundaries for what can be accomplished, invent entirely new ways to change the world, and embark on a journey fueled by vision-driven momentum to meet the future head-on … with gusto, confi dence, and actionable strategies. Join us for PGRI Live! This Monthly Virtual Conference held from 1:00 pm to 4:00 pm Eastern Standard Time (EST), the middle Wednesday of every month: 1. January 20: iLottery 2. February 17: Retail Modernization 3. March 17: Regulatory Modernization and the Politics of Gaming

Follow PublicGaming.org (our conference website) or PublicGaming.com (PGRI home-page and news website) for virtual conference and webinar updates, and to track the production process as we work to- gether to create a new kind of experience, digitally transformed to not just enable but enrich and enhance the joy of working and striving together. Visit PGRItalks.com to view video-recordings of Post-COVID19 Lottery: the Movie which premiered on October 25. PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 51 iLottery

Now is the Time to Stay Connected Today more than ever, it’s vital to be where your players are, wherever they are. Scientific Games’ portfolio of iLottery products lets your players stay connected to each other and to the games they love.

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