March/April 2018 Why Sports-Betting Matters to ALL U.S. State Lotteries Turning lottery business intelligence into action at retail Modernizing the field of Research and Development This Issue’s Featured Interviews Lottery Industry Lifetime Achievement Award 2018 Recipients Sarah Taylor Hoosier Lottery (Indiana) Andy Davis Tennessee Education Lottery Corporation May Scheve Reardon Missouri Lottery Becky Schroeder Idaho Lottery Gerry Aubin Rhode Island Lottery Greg Smith Gary Gonder Illinois Lottery Missouri Lottery PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2018 MARCH/APRIL 2018 • PUBLIC GAMING INTERNATIONAL 1 2 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2018 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2018 MARCH/APRIL 2018 • PUBLIC GAMING INTERNATIONAL 3 DEPARTMENTS 8 | From The Publisher Paul Jason 10 | Lottery Industry Lifetime Achievement Award, Publisher & 2018 Recipients Chief Executive Officer Andy Davis, Chief Financial & Information Systems Officer, Paul Jason Tennessee Education Lottery Corporation Gary Gonder, Chief Branding Officer, Missouri Lottery [email protected] Becky Schroeder, Chief Operating Officer, Idaho Lottery President 12 | Women in Leadership Roles Susan Jason Generate Strategic Business Benefits [email protected] Rebecca Hargrove, President & Chief Executive Officer, Tennessee Education Lottery, Senior Vice President, World Lottery Association Brand and Design Chair of the Corporate Social Responsibility, World Lottery Association Lucky Rabbit Studio ​ Chair of Women’s Initiative in Lottery Leadership (WILL) Honored Founders 50 | Industry Spotlite Doris & Duane Burke Profiles of the Leaders of the Government-Gaming Industry 56 | PGRI SMART-Tech Miami Conference Program Contact Information T: +425.449.3000 60 | Pulse of the Industry: Synopsis of Recent Industry News F: +206.374.2600 For email address changes, subscription requests and FEATURED INTERVIEWS requests to be placed on our e-Newsletter distribution 14 | A Diverse Set of Stakeholders Work Together list, contact: [email protected] to Produce Stability, Sustainability, and Growth Gerry Aubin, Director, Rhode Island Lottery PGRI, Inc. 218 Main Street, #203 Kirkland, WA 98033 PublicGaming.com Subscriptions 16 | Modernizing the field of Annual Public Gaming Research and Development International magazine Sarah Taylor, Executive Director, Hoosier Lottery (Indiana) subscription rates: United States: $145 USD Canada & Mexico: $160 USD All other countries: $225 USD 18 | Why Sports-Betting Matters to Public Gaming ALL State Lotteries International Magazine May Scheve Reardon, Executive Director, Missouri Lottery Published six times a year and distributed to readers all around the world. Electronic version is e-mailed and is also available on our news website: 20 | Onward and Upward: PublicGaming.com. A New Era Begins at the Illinois Lottery Greg Smith, Executive Director, Illinois Lottery March/April 2018 Volume 45, Issue 2 ©2018 all rights reserved. Public Gaming Research Institute cISSN: 1042-1912 4 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2018 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2018 MARCH/APRIL 2018 • PUBLIC GAMING INTERNATIONAL 5 FEATURED INTERVIEWS CONTINUED Visit Our Family 24 | The Holistic Player Experience Of Websites Antonios Kerastaris, Chief Executive Officer, INTRALOT Group PUBLIC GAMINGGAMING PGPublicGaming.comRI industry news & information 28 | From the conference room to the corner store: PGRITalks.com Turning lottery business intelligence into videos of conference presentations action at retail Tom Stanek, Senior Director of PublicGaming.org Global Retail Sales and Marketing, IGT PGRI conference information PGRIDigitalLibrary.com magazine archive of past issues FEATURED ARTICLES PGRIDirectory.com listing of lotteries and vendors | PGRIAwards.com 22 Connecting with Millennials: Showcase of industry honorees Why the future business model of lotteries depends recognized by the on standing for more than just winning Lottery Industry Hall of Fame Jon Duschinsky, Founder and Chief Executive Officer, The Conversation Farm PGRI Lifetime Achievement Award 34 | Planning Ahead: Sharp Award for Good Causes The Most Wonderful Promotional Time of the Year Lottery Industry Statesman Scientific Games Corp. and Stateswoman Award 39 | Let the Games Begin: Rebecca Hargrove Mentorship Award Sports-Betting Leader Kambi Moves Into Virtual Sports Collaboration Award 40 | Will the Wire Act Prohibit Intrastate Online Sports Betting? Mark Hichar, Partner, Hinckley Allen Law Firm PUBLIC GAMING 44 | Willy Wonka: The Digital Second-Chance Game that DAILY NEWS DIGEST has been played over a billion times in less than a year PGRI Scientific Games Corp. Subscribe To Our Free Digital Newsletters 47 | Measuring Player Visits at Lottery Retail: Receive our daily newsletters at no E-Commerce Style Insights Now Available charge, published 5 times a week to bring you the latest breaking to Lottery Marketers Jon-Paul Bussoli, Vice President Technology, Carmanah Signs, news in the global lottery industry. a Division of STRATACACHE Send an e-mail to: [email protected] 66 | Ten Things U.S. Lotteries Need with “add to Daily Digest list” in the subject line. to Know About Sports-Betting 6 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2018 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2018 MARCH/APRIL 2018 • PUBLIC GAMING INTERNATIONAL 7 From the Publisher Congratulations to Becky Schroeder, Andy Davis, and Gary corner store and decide whether to buy a lottery ticket? That is Gonder for their selection as the recipients of the 2018 Major the topic of many discussions I have had with Tom Stanek that Peter O’Connell Lottery Industry Lifetime Achievement Award. have now been turned into an interview. Andy Davis and Gary Gonder will be honored on March 28 at the upcoming SMART-Tech Conference in Miami. Becky A few months ago, I got in trouble for referring to Lottoland Schroeder will be honored at the Lottery EXPO conference in as an “illegal operator”. Lottoland does operate without New York City on October 24. See their biographies on page proper license in some jurisdictions. But the fact is they are 10. also properly licensed and therefore operating legally in other jurisdictions. Now for another wrinkle in the definition of May Scheve Reardon and Mark Hichar address the issue of “legal”: If an operator is not properly licensed to do business sports-betting. The turnover of the illegal spots-betting market but is operating out in the open for all to see and claim to not in the U.S. is more than double the sales of traditional lottery be in receipt of any advisory from legal authorities to cease and products. The impact on the entire games-of-chance industry desist, does that make them “legal”? Some online operators if the U.S. Supreme Court lifts the federal prohibition against hold the position that until and unless they are advised oth- sports-betting will be massive. erwise, they are operating “legally” regardless of whether they have proper license. Most of us in the government gaming Sarah Taylor was invited to present to an international com- industry would say that to operate without proper license is in munity of top lottery marketing executives at the European fact to be operating illegally. The argument may be semantic Lotteries Marketing Seminar in London. It was a mind-ex- legalese. But there are hundreds of millions of dollars of lottery panding presentation which she agreed to turn into an inter- tickets being bought from online operators which are operat- view about the ways that digital communications platforms ing without proper license. Of course, in the real-world, all have transformed the field of consumer research. this philosophical discussion does not change the fact that lack The Rhode Island Lottery operates casino gaming as well as tra- of action to stop the operators without license means that they ditional lottery. Operating in multiple gaming sectors, and in will continue to operate. an intensely competitive regional market-place, Gerry Aubin Thankfully, governments are beginning to take action. The manages a lot of moving parts in a no-nonsense straightforward UK Gaming Commission (UKGC) is taking multiple steps to manner that makes it all seem easy. I asked Gerry to explain reign in the activities of online operators. When Lottoland was how he has maintained stability and steady growth over the told they can’t take bets on the outcome of the EuroMillions course of his twenty + years career as lottery director. draw, they protested that they weren’t taking bets on the UK The Illinois Lottery is on its way again. Greg Smith shares EuroMillions draw, they were taking bets on the Spanish Eu- some of the plans in place for the Illinois Lottery to move past roMillions draw! Of course, it’s the same game so the UKGC the instability of the last few years and into a new era of decisive said this transparently silly work-around is not acceptable. The action-plans implemented by partners who are all pulling in the UKGC is taking aggressive action against others like William same direction. Hill for overly aggressive promotions that entice consumers to sign-up for free bonus plays, encourage problem gamblers to My discussion with Antonios Kerastaris at the ICE Gaming over-spend, propagate false and misleading advertising, make it Show in London revealed a new frontier for enhancing value to very difficult for players to withdraw their money, and other- the consumer: strategies that focus on integration of technolo- wise appeal to players