Digital Engagement and Marketing in a Changing World - NASPL Matrix
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INSIGHTS
THE OFFICIAL PUBLICATION OF THE NORTH AMERICAN ASSOCIATION OF STATE & PROVINCIAL LOTTERIES
JULY/AUGUST 2020
Digital Engagement and Marketing
in a Changing World
FROM THE NASPL
PRESIDENT
Executive Director
DAVID B. GALE
I begin my tenure as NASPL President right
Director Of Administration
as we enter the dog days of summer. But these THOMAS TULLOCH
hot, hazy days will be anything but lazy.
Vp Of Operations
Here at the Montana Lottery – and at all ANDREW WHITE
lotteries across North America – we are working
Director Of Program Planning
diligently to evolve with the “new normal.” This TAMIKA LIGON
includes, of course, prioritizing the health and
Graphic Designer
safety of our staff, retail partners and players, JOHN KOENIG
while continuing to provide much needed reve-
Accounting
nue to the jurisdictions we serve. NATALIE ROSS NORRIS
To accomplish this, and adjust to a new way
Editor
of doing business, we’ve all had to think on our PATRICIA MCQUEEN
feet and adapt. And a big part of that includes
Vendor Relations
embracing technology. JAKE COY
In this issue of Insights, we explore, specif-
I.T. / Software Development
ically, the way the pandemic has affected the PAUL COREY
ways we handle marketing. Though we’ve all utilized digital marketing to some
Communications Coordinator
extent for many years, the current climate presents new – and often urgent MACKENZIE WHITACRE
– challenges. Messaging priorities are different; in-person events have been can-
celed; even the way we present prizes to winners has changed. To top it off, many EXECUTIVE COMMITTEE
of us are facing drastically reduced budgets as well.
President
Our marketing teams have had their hands full, indeed. ANGELA WONG
Fortunately, our industry has no shortage of clever and innovative individuals.
First Vice President
The following pages include some of the myriad ways lotteries have transitioned SARAH TAYLOR
to using creative digital marketing, to continue to highlight the ways we support
Second Vice President
our communities, and maintain revenue generation for our beneficiaries. GRETCHEN CORBIN
Read on to find out more.
Treasurer
On a personal note, I would be remiss not to extend a sincere thank you to our CINDY POLZIN
most recent President, and my friend, Bishop Woosley.
Secretary
While I am honored and excited to accept the position of NASPL President a TBD
bit sooner than anticipated, my new title comes after his early departure from
Immediate Past President
the helm of the Arkansas Scholarship Lottery. I’d like to congratulate Bishop on CHARLIE MCINTYRE
his many accomplishments during his 11 years with the organization – from being
Pres. Interprovincial Lotteries
a part of its inception in 2009, to being appointed the youngest Director in the LYNNE ROITER
industry at the time in 2012, to hosting a fantastic NASPL Annual Conference in
Region I Director
his home state’s capital last year, and everything in between. GORDON MEDENICA
Bishop, your impact at the ASL and across the entire industry will not soon be
Region II Director
forgotten. Best wishes, and best of luck. BETH BRESNAHAN
As for me and my presidency, I hope to do everything I can to help push this
Region III Director
industry into an even brighter future. I look forward to collaborating with NASPL, BRIAN ROCKEY
to continue working toward and achieving our common goals.
Region IV Director
Thank you for allowing me the privilege of serving you and our industry. BARRY PACK
‘Til next time,
CIRCULATION:
Insights ISSN 1528-123X,
July/August 2020,
Volume No. Twenty, Issue Four.
Published bi-monthly by NASPL
(North American Association of State
and Provincial Lotteries)
7470 Auburn Road, LL1
Angela Wong Concord, OH 44077
Director, Montana Lottery © 2020 All rights reserved.
NASPL President NASPL Email:
info@nasplhq.org
Websites:
www.naspl.org / www.nasplmatrix.org
p 440.361.7962
2 | NASPL INSIGHTS July/August 2020 f 440.867.2327
July/August 2020 NASPL INSIGHTS | 3
INSIDE INSIGHTS | JULY/AUGUST 2020
Issue
In this
6 Up Front
Industry news and updates.
16 Q&A With Bishop Woosley
18 Q&A With Chris Keevill
Chief Executive Officer,
Atlantic Lottery
22 Making a Difference:
Jim Nash
Director of Security,
Hoosier Lottery
28 Research Corner:
Focus On: Marketing
Thinking on Our Feet:
The Importance of Being
Nimble in a Post-COVID World
By Greg Wood, Manager, Research and
Analytics, Kentucky Lottery
46 Marketing Shift
The unprecedented public health crisis of 2020 stopped the world in its
tracks, and lotteries quickly learned to cope with new realities as the
32 Five Components of a High games played on.
Performing iLottery Program By Patricia McQueen
Online lottery programs vary in
their implementation, but there
are common strategies that are
likely to lead to the most success. 52 Digital Engagement
Increasingly sophisticated with digital communications, lotteries have
taken things to a new level in response to a changing world.
38 Thirty Five Years Strong
The circumstances for its
celebration may have changed, but
76 Creative Campaigns
the Iowa Lottery is still proud of its
While the pandemic threw all the marketing playbooks out the window
accomplishments after 35 years.
in 2020, over the past couple of years lotteries across North American
By Patricia McQueen
have deployed some pretty creative campaigns.
4 | NASPL INSIGHTS July/August 2020
iLottery
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Kentucky Lottery’s Chip Polston
Receives Prestigious NCPG Award
The lottery industry was well represented during
NCPG’s 2019 National Awards in Problem Gambling.
I
n late July, the National Council
on Problem Gambling honored
outstanding individuals and orga-
nizations for their accomplishments
in professional work in problem
gambling and responsible gambling
during 2019. The virtual awards
ceremony followed the conclusion
of the first ever Digital Symposium
hosted by NCPG.
“While this year has been
challenging in many ways, the
exceptional work done by these
individuals and organizations in
2019 helped lay the foundation for
NCPG’s sustained success in the
most trying times,” said NCPG’s
Executive Director Keith Whyte.
“Their critical efforts make the
Problem Gambling and Responsible
Gambling fields more robust and
impactful.”
Chip Polston, Senior Vice
President of Communications,
Public Relations and Social
Responsibility for the Kentucky
Lottery, was a big winner this year,
becoming the ninth recipient of
the prestigious Don Hulen Award
for Advocacy. Polston, who also
serves as a member of the NASPL
Responsible Gambling Committee,
the Kentucky Council on Problem
Gambling Board, and the NCPG
Board of Directors, was honored for NASPL and NCPG together to in which I take immense pride,” said
advancing the role responsible gam- facilitate the development of their Polston.
bling plays in lottery organizations responsible gambling verification Through his advocacy, the
around the world. program. Kentucky Lottery became the first in
Among his many achievements “It’s the only model in the U.S. the U.S. to hold all three industry re-
in the field, Polston is credited with where a gambling trade group has sponsible gambling certificates: The
writing the first responsible gam- joined forces with an advocacy World Lottery Association certifica-
bling standard for the U.S. lottery organization to establish and check tion program, the NASPL/NCPG ver-
industry, and for working to bring for best practices, and it’s something ification standard, and the Internet
6 | NASPL INSIGHTS July/August 2020
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July/August 2020 NASPL INSIGHTS | 7
Compliance Assessment Program
(iCap). Polston has also played a NCPG’s 2019 National Awards in Problem
major role in ensuring contin-
ued funding and support for the
Gambling Winners
Kentucky Council on Problem Recognizing outstanding individuals and organizations for
Gambling’s 1-800-GAMBLER
hotline; creating a lottery-
their accomplishments in professional work in problem
funded billboard awareness gambling and responsible gambling during 2019.
program; supporting the NCPG/
McGill Holiday Campaign; and ad- NCPG Media Award NCPG Corporate Social
vocacy for dedicated state fund- NBC-4 of Columbus, Ohio Responsibility Award
ing for treatment and education. For their television segment that HardRock International
“Through all of his accom- focused on veterans with gambling and Seminole Gaming
plishments, Chip has continued addiction and featured members of the For their Player’s Edge Casino
to serve as a role model for many Ohio Department of Mental Health and Employee Training Initiative.
in communications, and as a Addiction Services.
resource for countless others as NCPG Annual Research Award
a responsible gambling mentor,” NCPG Corporate Newsletter Award Spencer Murch, University
said NASPL’s Executive Director Oregon State Lottery of British Columbia
David Gale. “Never dismissing a For their data impacts report and For original, peer-reviewed research
request for help and information, microsite. article on problem gambling.
Chip has been and will contin-
ue to be a great steward of the NCPG Jim Wuelfing Award
NCPG Affiliate Website Award
responsible gambling effort. This for Prevention
California Council on Problem
recognition is very well deserved.” Epic Risk Management
Gambling
For their modern and well-developed For their major prevention and educa-
Communications Awards website. tion projects across the UK and U.S.
Lotteries and their affiliates NCPG Corporate Website Award NCPG Don Hulen Award for Advocacy
were also recognized with several Ohio for Responsible Gambling Chip Polston, Kentucky Lottery,
of the NCPG communications For their “Change-the-Game” Ohio Kentucky Council on Problem
awards. Youth Prevention Campaign. Gambling
The Oregon Lottery took home For tremendously advancing the role
the Corporate Newsletter Award, NCPG Public Awareness Award responsible gambling plays in lottery
for their data impacts report and Oklahoma Association on Problem organizations around the world.
microsite. and Compulsive Gambling
The Holiday Responsible For their “Smart Play O-K” Production. NCPG Joanna Franklin Award
Gaming Campaign Award went for Direct Service
to the Illinois Lottery, for their NCPG Corporate Public Awareness CP Mirarchi, IGCG-II, BACC, JD
campaign raising awareness about Award For his long-time expertise in
the risks of giving lottery tickets Ohio for Responsible Gambling counseling and generous contributions
as holiday presents. For their “Change-the-Game” Ohio to the problem gambling field.
And Ohio for Responsible Youth Prevention Campaign.
Gambling, an alliance that in- NCPG Jeffrey M. Beck Recovery
cludes the Ohio Lottery, received Holiday Responsible Gaming Ambassador Award
both the Corporate Website Campaign Award Marc Lefkowitz
Award and the Corporate Public The Illinois Lottery For his dedicated advocacy, fighting
Awareness Award, for their For raising awareness about the risks to ensure that recovery services and
“Change-the-Game” Ohio Youth of giving lottery tickets as holiday programs are available, accessible and
Prevention Campaign. presents. effective.
8 | NASPL INSIGHTS July/August 2020
July/August 2020 NASPL INSIGHTS | 9
Colorado Lottery Hosts GameJam
By Patricia McQueen
W
ith Gov. Jared Polis eager Colorado Lottery, the goal is to find think there is anything else in that
to establish Colorado as a potential games to complement keno space at the present time that would
technology leader to better in the monitor network it expects really attract different players or be
serve its residents, the state has to have in place for the first time a good retailer recruiting tool. Enter
embraced technology and inno- in FY22. “One of our initiatives is to GameJam. “Our thinking was to use
vation in several sectors. Now it’s expand our player base and grow the game developer world to help us
the Colorado Lottery’s turn to kick by bringing in new retailers and de- think creatively to bring some new
things up a few notches. Together veloping new games,” said Director ideas to the table.”
with ETHDenver, Chainlink and IGT, Tom Seaver, adding that the Lottery Of course, the ultimate goal
the Lottery hosted a virtual hack- currently has an underdeveloped is to raise more revenues for the
athon, GameJam, from July 31 to retailer network and is looking good causes the Lottery supports.
August 9. The event is the first for an at reaching more types of retail Historically, there have been a
American lottery, although Canada’s partners like restaurants and bars. limited number of games offered in
Atlantic Lottery has held several “We’ve done a really good job at get- Colorado, but there seems to be a
hackathons in recent years and the ting grocery and convenience chains, more welcoming environment these
British Columbia Lottery Corp. has but to really attract a broader player days. “I think more people are seeing
also used a hackathon primarily for base, we need a broader retailer that the Lottery plays such a tre-
its casino products. base. And that means having some- mendous role in funding the outdoor
Hackathons bring game develop- thing to offer those retailers that lifestyle that Coloradans love. We’re
ers together in a competition to they will be interested in selling.” the only lottery in the world that is
design new games in an unbri- While keno is the mainstay of the fully dedicated to supporting parks,
dled, creative environment. For the monitor category, Seaver doesn’t recreation, open spaces and wildlife.
10 | NASPL INSIGHTS July/August 2020“But which way do I go from here?”
““at depends a great deal on where you want to get to”
If you want to sell where people are shopping,
step through the purple door.
Abacus makes selling lottery in-lane easy, by enabling customers
to buy tickets at the same time as paying for groceries, fully
integrating into the retailers’ ePOS estate. Choose the right
door - your players depend on it.
w : www.lotteryeverywhere.com
Solutions for innovators e : info@abacus-bv.com
JANUARY/FEBRUARY 2020 NASPL INSIGHTS | 11So rather than put up obstacles to
our growth, maybe supporting us
be suitable for future lottery games.
Rules of good taste have to apply, of
“This is the most
and letting us give back more to course, with no violence involved, unique thing I’ve
done, and I’m really
those beneficiaries is a good idea.” and adults have to be the target
ETHDenver is the world’s larg- audience. Because the Lottery is
est annual web3 #BUILDathon and looking for game concepts to ride excited about it.”
Community – the February event along with keno, an important con-
in Denver hosted more than 2,450 sideration is the time it takes to play
blockchain enthusiasts, develop- – it needs to fit between each keno
ers and community members from drawing. “That’s a big challenge” for
73 countries and 48 U.S. states. By game developers, noted Seaver.
partnering with ETHDenver, the He would be thrilled to see at that any kind of innovation is often
Colorado Lottery can tap into the least one “take our breath away” an iterative process,” learning as you
necessary resources to ensure there concept that can get through testing go along to produce the desired end
are high quality competitors in and become a part of the Colorado result.
GameJam. Those competitors vied Lottery’s product mix, but acknowl- “I really don’t know what to
for a total of $26,000 in prize money edges that may not be the outcome expect,” mused Seaver. “I’m a
awarded to the top three teams. this first time around. While even lottery guy, and as they say in
They were judged based on presen- an idea that may ultimately bear ‘Ghostbusters,’ I’d like to cross the
tation, creativity and technology fruit in one form or another would streams a little bit, and let some
innovation. be wonderful, it may take addition- of these new ideas and this new
While the goal with GameJam al GameJams to produce the right energy into our world and see what
is to give the participants as much game for the Lottery, and Seaver is they come up with. This is the most
freedom as possible, there are fine with that. “One of the things unique thing I’ve done, and I’m really
some basic guidelines in order to that I’ve learned from experience is excited about it.”
Stay informed
with Insights Direct
Check out past episodes on the NASPL Matrix
and see what is coming up on NASPL Insights Direct!
Click here to view
Not a Matrix user yet? Just reach out to Jake Coy at jcoy@nasplhq.org
12 | NASPL INSIGHTS July/August 2020HIT THE MONEY TRAIL!
July/August 2020 NASPL INSIGHTS | 13Virginia Lottery Rolls
Out New Online Platform
Available products for play through the internet include
instant-win games as well as traditional big-drawing games. valottery.com
By John Hagerty, Virginia Lottery
T
he gambling landscape in law allowed for online multi-draw which approach would work best for
Virginia is in the midst of dra- subscriptions to high profile games us,” said Virginia Lottery Executive
matic change. After decades of like Mega Millions, Powerball and Director Kevin Hall. “We were es-
being known for having a relatively Cash4Life. pecially pleased that, after several
conservative approach to gambling, When the online sales ban was years of effort, our business case
the Old Dominion is preparing to lifted, the Lottery’s digital team got for allowing online sales achieved
launch casinos, sports wagering and cracking. In fact, it rolled out its on- broad, bipartisan legislative support.
expanded lottery offerings. line platform to customers at Our new digital platform allows us
The first big change has already www.valottery.com on the very day to meet our customers anytime and
taken place. As of July 1, the Virginia the enabling law took effect. That anywhere they choose. This is an ex-
Lottery is selling tickets online. means it required less than four citing opportunity to strengthen the
In early 2020, Virginia’s General months from the legislation being relevance of our portfolio and gener-
Assembly voted to lift the ban signed to the first online wager being ate additional support for Virginia’s
on online sales. Prior to that, the placed. K-12 public schools.”
Lottery was specifically prohibited “We were able to look at best The online platform includes not
from offering tickets on the inter- practices from other states who’ve just Mega Millions, Powerball and
net, although an exemption in the been down this road and determine Cash4Life, but also new instant-win
14 | NASPL INSIGHTS July/August 2020games, which include exciting digital activity reached the $16 million codes to Mega Millions and Powerball
game features and bonus rounds. mark, with more than 29,000 unique tickets at retail. Using promo codes
New instant-win games will be players. Of that activity, 94% was like this is a low-risk and low-budget
added every few weeks. Popular daily instant-win games. way to dip our toe into omni-channel
draw games Pick 3, Pick 4, and Cash One of the larger hurdles in the offerings.
5 are expected to be added within years leading up to the legislation In September we’re launching our
the first year. allowing online play was questions first crossover with Scratchers by
Virginia’s partner in the endeavor regarding how it would impact tradi- pairing one of our game families with
is NeoPollard Interactive, which has tional brick-and-mortar retailers. VIP Platinum, a key number match
also partnered with Virginia on its “Our 5,300-plus retailers are the style online instant game. Players can
eSubscriptions platform since 2016. backbone of the Virginia Lottery,” purchase any of the Cash Scratchers
Virginians had also gotten a said Hall. “The data we’ve consis- ($1,000 Cash, $10,000 Cash, $100,000
taste of something close to online tently seen from other iLottery Cash and $500,000 Cash), and re-
games with MobilePlay, the Virginia states shows that online play makes deem the promo code on the back for
Lottery’s tethered solution launched the lottery brand more relevant, 10 free games of VIP Platinum when
in 2018 in partnership with IGT. especially among younger adult they make an online deposit.
MobilePlay used a Bluetooth consumers. We’ve committed to our We’re planning a similar holiday
connection to the existing lottery brick-and-mortar retail partners promotion for November, by launch-
terminal inside retail to allow that we will actively work to include ing a matching Scratcher and online
some limited digital functionality. traditional retail as we expand into instant game called Holiday Gold. In
MobilePlay coupled with the existing digital product delivery.” this promotion, players can buy the
eSubscriptions platform enabled There are cross-promotions Scratcher and redeem the promo
the Lottery to grow the player base, designed to drive online customers code online when they register their
allow players to experience the to stores, which benefits those core account to receive 10 free games of
digital purchasing experience and retailers. Shortly after launch, we the online version of Holiday Gold.
become familiar with playing digital kicked off an acquisition-focused After those games are redeemed,
instant win games. This work put the promotion by adding a promo code they’ll receive a coupon to buy Cash 5
Lottery in a strong position for this to Print ‘n Play tickets. Players can at retail.
year’s rapid launch of iLottery. apply the code when they regis- And of course, the online plat-
So, on July 1, the day the switch ter their account on the website form provides the opportunity for
was flipped on, more than 1,300 to receive 10 free Quick 6 online increased responsible gambling
wagers had been placed by 8:00 instant games. We then expanded protections, such as age verification,
a.m. Within two weeks, online play the concept by adding similar promo deposit limits and self-exclusion.
July/August 2020 NASPL INSIGHTS | 15NASPL Interviews
Q&A With
Bishop
Woosley
Bishop Woosley recently stepped down as
Director of the Arkansas Scholarship Lottery, a
position he has held since 2012; he had been an
employee since the beginning in 2009. He was
also serving a term as President of the North
American Association of State and Provincial
Lotteries (NASPL); Arkansas hosted the
association’s 2019 annual conference in Little
Rock with great success. We asked Woosley for
some thoughts on the industry he loves as he
prepares for his next chapter.
16 | NASPL INSIGHTS July/August 2020“
Above all, the industry is just fun.
I am hopeful that I will be able to
What do you see as the most
remain a part of it going forward.
significant developments in the
industry during your time at the
Arkansas Scholarship Lottery?
A few things come to mind. Is there anything you are particularly You want to stay in the industry –
First, the explosion of instant ticket proud that was accomplished in what do you find most compelling
sales over the last several years has Arkansas? about the lottery business?
been nothing short of incredible. The Beginning in 2012 we took an agency The lottery industry is an $85
innovation, imagination and planning that was controversial, riddled with billion industry but relatively speak-
that goes into each state’s instant audit findings, and had low public ing it is quite small. Everyone knows
ticket catalog and process are opinion, and over the course of time everyone within the industry and ev-
amazing. I believe going forward that turned that agency into a record- eryone I’ve met along my journey has
instant tickets will continue to be the breaking sales agency with high been a fantastic colleague. The group
foundation of most lotteries’ sales. public confidence. I am very proud of lottery directors is also small and
Also, the emergence of online and of what we built in Arkansas over the close knit because each of us under-
iLottery sales has been very prom- last 8 1/2 years. stands what the other may be going
ising to me. Obviously the pandemic through at any given time. Above all,
is going to accelerate the need for The national games struggled this the industry is just fun. I am hopeful
online and iLottery sales, and states year with the double whammy of low that I will be able to remain a part of
will be forced to adjust accordingly. jackpots and then COVID-19-related it going forward.
The addition of Walmart to the changes. Where do we go from here
lottery industry will also have a with these games? How about the role of NASPL? Is there
major impact. Adding the largest re- The truth of the matter is I don’t anything else we can do to assist
tailer in the world to the list of stores know. We have been studying vari- lotteries or any other direction we
selling lottery will force other big ous alternatives within the industry should be taking?
box stores to come to the table and over the last year and hopefully will NASPL is one of the organizations
consider selling lottery. come up with a solution. The best that keeps lotteries from operating
Finally, the level of innovation answer I can give you is that we in silos. Without national trade or-
that we see currently from some of have to find a way to reinvent these ganizations, we will be limited in our
the smaller vendors with new and games in a way that will excite our ability to collaborate, see new in-
fresh ideas is also exciting. Ideas players, with a population and sales novations and compare notes about
related to in-lane sales, couriers, sufficient to fund large jackpots what is happening in various states
buy online pick up at store (BOPUS), while still encouraging everyday play and regions within the industry.
curbside and other omni-channel at lower jackpot levels. I am hopeful Some of the most rewarding times
alternatives are coming into their that the national groups can find a I’ve had have been when we were
own spotlight and offer some new way to address these issues, as these able to convene as a group and sit
and exciting alternatives. games are so important to the lot- down and talk about what is hap-
teries here in the United States. pening in the industry, with honest
What had the most impact and blunt discussions about how to
specifically in Arkansas? What is your biggest takeaway from resolve those problems. NASPL will
The surge of instant ticket sales the unprecedented experience be more important than ever going
has had the most impact in Arkansas. lotteries faced this year with the forward as our ability to meet in per-
The Lottery is somewhat limited pandemic? son is limited and our ability to see
legally in what can be offered, so the It has long been thought that lot- innovations in the industry is limited,
increase in instant ticket sales has teries are not agile and that change due to cancellations of trade shows
been a big boost for sales and the is slow and difficult within the indus- and the resulting limited exposure to
scholarship proceeds we raise for try. I think the pandemic disproved existing and new vendors. It is more
the students in Arkansas. We just fin- those theories and has provided us important now than ever to support
ished our third consecutive record with the momentum and the data to NASPL, David Gale and the staff as
year, both overall and for instant quickly make significant changes to they find new ways for us to meet
ticket sales. the industry. and collaborate.
July/August 2020 NASPL INSIGHTS | 17NASPL Interviews
Q&A With
Chris Keevill
Chief Executive Officer,
Atlantic Lottery
18 | NASPL INSIGHTS July/August 2020The Atlantic Lottery welcomed a new Chief Executive Officer in April, as Chris Keevill
took the helm of the organization, now in its 44th year of operation running games
in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward
Island. He came to the Lottery with a diverse background that includes experience
in the telecom industry; most recently he was focused on digital transformation and
marketing with his own agency, Colour, with offices in Canada and New York. Not
surprisingly, he is bullish on how the lottery industry can embrace the digital world
in bold new ways. Insights editor Patricia McQueen recently talked with Keevill
about his plans for the Atlantic Lottery, which like all other businesses faced an
unprecedented challenge with the COVID-19 public health crisis.
Let’s preface our discussion with base grows, they’ll pile it all back into liberalize in time. We’ve seen that
what governments need in this customer acquisition as they turn up over and over again in all verticals –
challenging year. the heat. Before too long, we’ll see liberalization of regulation and the
Our four shareholders are the our players disappear – they’ll age release of monopoly protections,
four provincial governments, and out to some extent as the younger allowing more competition. The
they have had to focus on a health players are playing offshore and the competitors of the future probably
crisis which is real, current and ur- older players won’t be here in 30 haven’t been invented yet.
gent. Now, that focus has shifted to years. So we’ve got a generational That was what the phone com-
an emerging financial crisis. Not just problem – you might not see it from panies faced in the 1990s. Back then,
because of the current slowdown in one month to the next, but you’ll see we thought our phone customers
the economy, but also what is antic- it over a period of years, that’s for would be ours forever – after all, the
ipated to probably be two to three sure. We are convinced that if we are newly-commercial internet ran on
years of “living with COVID-19.” Our allowed to compete toe-to-toe with our networks, so of course internet
governments are continuing to sup- illegal offshore operators, who take service would be ours to sell. But we
port our businesses and our people money out of our market, we can were shortsighted and lacked imagi-
during these times; they will even- provide a safer gaming environment nation. Before we knew it, the indus-
tually dig out from the impacts of for local players and keep the money try was fully deregulated and a whole
the pandemic and will have to leave at home where it is needed most. new set of services were sitting on
no stone unturned to generate new This is really what keeps me up at top of the backbone “phone” net-
revenues and manage their costs. night – these offshore operators who work – most provided by others, like
are taking Atlantic Canada dollars Google, Amazon and Facebook. By
Naturally, you have ideas how away. the end of that decade, everything
Atlantic Lottery can help. had changed. The phone companies
We are in the midst of a corpo- What lessons did you learn during survived, because they continued to
rate transformation, which I think your time in the telecom industry? have a stake in service delivery, but it
will set us up to take advantage of In the early 1990s, the phone was never what they expected.
new opportunities that come our companies were still fully regulated Now, I feel like I get a chance
way – and new opportunities we monopolies, but competition was for a do-over. There are so many
create – in order to grow our reve- beginning – we were selling long- similarities between lotteries today
nues for the provincial governments. distance phone plans for the first and the telecoms back then. I know
We think the biggest potential lies time, finding ways to create loyalty first-hand about how industries can
in taking business away from illegal and encourage usage among our be disrupted. We live our lives at any
offshore casinos. The revenue they customers while we learned the point in time like we know it’s going
siphon from our Atlantic Canadians fundamentals of consumer behavior. to stay the same; even though we
is not insignificant, and based on my To a large extent I think we are in a know it changes, we don’t think it’s
past experience in digital customer similar position now in the lottery going to change that fast. We need
acquisition, I know what these casi- business. Lotteries are fully regulat- to be prepared, to keep our custom-
no operators are doing to find and ed state monopolies, but they won’t ers and remove the headroom for
attract new players. As their revenue stay that way forever – all markets competitors who want to take that
July/August 2020 NASPL INSIGHTS | 19customer relationship away. We “What do you mean it’s going to be you might need an Atlantic Lottery
don’t have to wait ten years; we can safer if we give more access and account and some sort of game
provide better services, better games more play opportunities for people?” mechanic in the theater, but that’s
and better player experiences today. I think back to the American prohibi- what I mean about the more seam-
tion of alcohol in the 1920s. There’s a less integration between gaming
So how will Atlantic Lottery provide human condition at play here, and if and entertainment in the online and
these better experiences? we can provide a platform to engage physical worlds. Maybe that’s a bad
For the past 15 years, I’ve run in a more social environment – on- idea that would never work in real-
a digital marketing agency, and line or at retail – we can bring those ity, but it brings together what I’m
I’ve been working with a range of destinations to life and connect the talking about – the blending together
businesses on digital transformation. players to a social experience wher- of entertainment, games and the
Everyone is faced with the same ever they are playing. The onus is on gambling experiences.
challenge – there’s a diminishing us to demonstrate that these social
curve in your core traditional busi- experiences actually do provide safer Atlantic Lottery has a history of
ness, and there’s a small but growing play. innovation – how are you taking that
curve happening in the digital online up a notch or two to generate these
business. We all want to accelerate Just what kinds of play experiences new experiences that haven’t been
the digital curve and slow down the are you talking about? invented yet?
traditional decline. The intersection As I mentioned, we want to con- Innovation in our lottery is about
of these two curves is where all the nect players to our brand in a unified to get to that next generation of
fun is, and that’s where we are with way across retail and digital experi- maturity. The first generation was
Atlantic Lottery. ences. So now they will be cared for innovation that was connected,
We want to maintain the tradi- by Atlantic Lottery, an experience but separate, within the organiza-
tional retail lottery experience, but they won’t be getting at any offshore tion – we didn’t want it “infected”
integrate that into the experience casino. Consumers today move by traditionally slow lottery oper-
of online digital play. Imagine a seamlessly through the physical ations and the team was housed
customer using an Atlantic Lottery and digital worlds – everything is separately. That was done for good
loyalty card at a racetrack casino, connected. They are always online, reason, because innovation needs
or a video lottery destination, or a and they are always in a physical to be incubated. But now it’s time to
grocery store buying a lottery ticket space. They don’t make a distinction accept that innovation team inside
along with a carton of milk; then between life online and life in the the mother ship – to in fact make
going home and playing online. All physical world, because it’s always all that innovative spirit contagious
those purchase points are accumu- been connected for them. They may throughout our business in a fully
lated, the transactions aggregat- not understand why, if they have integrated environment.
ed, and the player is treated like a an online relationship with Atlantic So we’re creating a new busi-
loyal customer because they’ve been Lottery, they aren’t known as a cus- ness structure that includes a group
consuming Atlantic Lottery products tomer when they visit a retail store. we are calling the “Living Lab” –
and services through several differ- Brands are being rewired by our market planning and product
ent channels. That omni-channel social media and the online world, development team. Living Lab sits
strategy, digitally centered with a and we need to gamify more of our right inside the commercial lottery
known customer relationship is, in a experiences. Here’s a simple idea. operation, kind of like the forward
nutshell, where we are focused. When you go to a movie theater, planning department of any
That said, we need the social they offer this hokey trivia game as consumer-based business. They
license in our communities to allow part of their pre-movie roll – it’s a are looking for the next games and
us to operate responsibly in all those terrible game experience in what the next channels, and we call it the
areas, with safe play top of mind. If is otherwise a great social setting. Living Lab because we think custom-
we can further de-stigmatize the Why can’t that game be connected ers are our partners in innovation.
negative impacts of gambling and to everyone’s phones, which then Atlantic Lottery is of a size that
have more conversations about connects everyone in that theater? should be able to embrace change
creating a responsible platform to There could be a 50/50 drawing set more than bigger organizations.
play, we can win that greater social up, like those popular as fundraisers We think that size, coupled with
license. at many other venues. People in the our market consisting of polite,
All this has to happen together, theater could buy a ticket for $1, and loyal players, gives us the freedom
and regulators need to recognize half the sales would go to one lucky to experiment. These players will
that one is the solution to the other. winner, with the other half going to be in the lab with us, trying out
I understand their perspective: a local fundraiser. In order to play, new things. We’ll make a bunch of
20 | NASPL INSIGHTS July/August 2020mistakes, but that’s part of the fun!
The biggest mistake we can actually
make is not having the courage to
accept failure.
While we don’t want to lose our
customer franchise if we get too
many things wrong, if you set up
an environment where our players
know they are in pilot or beta mode,
they know that they are helping us
shape a better service or a better
game. And if we embrace innovation
from local businesses as well, we
think it gives us all the more license
to continue.
Can you provide an example of a
current pilot test?
Along the lines of our belief
that there has to be a seamless and
integrated customer experience
through the physical and online between players and both the online The adaptation Atlantic Lottery
worlds, we recently introduced a and physical world. Our offshore employees made through the
retailer referral program in a semi- competitors will never have that. pandemic has been outstanding.
pilot mode. For lotteries, the retail Before this spring, I think everyone
experience will always be critical, What other restructuring is taking felt that this company is “govern-
but it has to be connected to the place at Atlantic Lottery? ment-like,” with traditional views
digital experience. The referral One goal is to create some effi- and a sense that we were not really
program allows players to choose a ciency while we grow capacity in key ready for all the changes that are
retailer when they sign up for online areas like data analytics and business required in today’s society. But
play at alc.ca, and that retailer gets intelligence. We have had digital our employees proved this the-
a small piece of any online sales marketing and marketing communi- ory to be dead wrong in the face
from that player. We introduced cations distributed across product of COVID-19. The entire way that
it during the pandemic because in groups, and we are now centralizing we operate as a business changed
certain market areas, sales of some that to unify our approach to give us overnight, and everyone adapted
or all of our games were suspended more capacity and capability, par- on the turn of a dime. Everyone. It
at retail, and retail businesses ticularly with digital marketing. All was of course through necessity,
were suffering. Because of the these activities need to be strong to but it demonstrated an adaptability
“stay home and stay safe” message, make us effective as a digital gaming and a resilience that was there all
we saw a huge increase in online company. along.
registrations. With the referral We’re simply doing the things
program, we wanted to demonstrate any new company would do start- So now you are excited for the
to our retailer constituents that we ing up in the current environment: future?
weren’t going to abandon them – we Investing in digital marketing capa- I’m very excited about this new
still need them in the game with bility and capacity, in business intel- stage for Atlantic Lottery. While
us. While we haven’t had as many ligence, and in innovation and game it’s not the very beginning of our
players designate a favorite retailer development. And we’re doing it in innovative path, we are still in the
as we had hoped, one thing we have the midst of an already chaotic world early innings. What we want to get
learned – and this goes back to being because of the pandemic. We’re to next is our vision for the “known
willing to see what works and what shaking up the snow globe – every- player” – the omni-channel, in-
doesn’t – is that whatever you do, thing is upside down anyway, so let’s tegrated program that provides
there has to be something in it for keep shaking it. We’re not looking for players with rewards and incen-
the consumer. When we launched any stability, because people have tives no matter what channel they
this program, it didn’t include demonstrated a resilience to deal go through. We have maybe 10%
that. Still, it’s an example of how with the uncertainty, and it’s actually of it figured out – there’s a lot of
we want to make that connection kind of releasing new creativity. work still to do!
July/August 2020 NASPL INSIGHTS | 21MAKING A DIFFERENCE
Jim Nash
Director of Security,
Hoosier Lottery
I
t’s probably a safe bet that nothing
surprises Jim Nash. As a former
law enforcement officer, he’s
certainly seen some of the worst
that society has to offer. Fortunately,
he’s also seen some of the best, and
for the past 15 years at the Hoosier
Lottery, he has dedicated himself to
ensuring that the Lottery contin-
ues its mission of safely providing
much-needed revenues to the state
of Indiana and its people.
“Jim is someone who is very
generous and compassionate –
giving freely without expecting
recognition or attention,” said Carrie
Stroud, the Hoosier Lottery’s Chief
of Staff. “He has a heart of gold and
truly enjoys serving others – using
free time and vacations to do just
that. He does so much for others,
anonymously, because he believes
in the cause, group or person more
than he cares about a ‘thank you.’ As
a supervisor, he is an advocate for
his employees, and thinks of them in
all things. He is greatly admired by
his staff and works hard to ensure compliance and validation, oversees outlets. The law applies to anyone
that the Hoosier Lottery operates more than 700 drawings annual- living in the same household.
with the highest level of security and ly, and completes any other tasks Not surprisingly, this has of-
integrity.” as necessary, including criminal ten caused confusion, and one
Nash originally joined the Hoosier investigations. His department does thing Nash dislikes most is having
Lottery in 2005 as Deputy Director have law enforcement capabilities, to refuse prize payment because
of Security and assumed his current and has the authority to serve both someone truly didn’t understand the
position as Director of Security in search and arrest warrants for viola- law and wasn’t intentionally doing
2009. In this role, he supervises all of tions of lottery laws. anything wrong. For example, a
the Lottery’s field investigators and One very unique aspect of store employee may think it’s okay
security specialists and provides a Indiana law is that retail employees, to purchase a ticket in their store
safe and secure work environment at management and owners are not as long as it’s on a day they are not
all of the Lottery’s offices. His team allowed to purchase lottery tickets working. Or a close family member
conducts background investigations at the store in which they work, or in of a clerk may think they can buy a
on potential employees and retail- stores that fall under the same chain ticket from another clerk at the same
ers, interviews all winners of prizes of management. They can, however, store. “Occasionally there are cases
exceeding $10,000 to ensure proper purchase lottery tickets at unrelated where my heart tells me one thing,
22 | NASPL INSIGHTS July/August 2020but my mind tells me another. I have
no choice but to go with the law,” he
said.
Of course, it’s another story
entirely when the person is delib-
erately trying to circumvent the
law. In those cases, there is always a
recommendation to the retailer that
the employee be dismissed; criminal
charges are filed only in the most
egregious situations.
One of the things Nash is insis-
tent upon is that no one, not his
team or anyone else, should ever
know which instant ticket packs
contain top-tier winning tickets.
There was an incident at the Hoosier
Lottery before he arrived, where busy with seven grandchildren (an something bigger. It started some
such knowledge was leaked; a breach eighth is due in mid-August) and a 30 years ago, when Nash joined a
like that is not something Nash ever passion for woodworking, camping group called the Wild Bunch on an
wants to happen again. “If there’s and trail riding. He enjoys making annual ride from Indiana to Missouri.
some way anyone could possibly gadgets and fun little things from In 2011, a second trip was added, this
gain an advantage, I’m not doing my wood, and has also made several one to Arizona. A fundraising effort
job.” He’s happy to keep being the saddle stands, which have been a big for each trip helped pay everyone’s
“squeaky wheel” on this and other hit with friends who are part of his expenses, but there was always
issues as necessary. trail riding groups. money left over, and it was decided
Off the job, the father of four with His fondness for trail riding – he to give that to charity. The Arizona
his wife of 35 years, Nona, keeps loves playing cowboy – morphed into group knew of a Phoenix charity
July/August 2020 NASPL INSIGHTS | 23MAKING A DIFFERENCE
Above: Watching things while on duty
at the Indy 500.
for foster children called OCJ Kids,
Right: With good buddy Kevin Costner.
which offered a cowboy camp each
summer. The “leftover” funds were
soon enhanced by an increasingly
large auction of donated items from What brought you to the Hoosier How have your duties with the
the group’s members. Last fall, that Lottery after a career in law Lottery changed over the past 15
resulted in $15,000 raised to sponsor enforcement? years?
150 kids at cowboy camp. “I always Retiring from the Marion County There are still the primary tasks
wanted to play a cowboy, and I’ve Sheriff’s Department at 50 years of ensuring the integrity of our
learned that horse people are a very old, I was a long way from being drawings, making sure winning
special breed.” ready to “retire.” Lottery has always tickets are properly and legally
Nash spent two years in the U.S. been an attractive option for law claimed, and keeping our workforce
Army after high school, then went enforcement types. Most police safe and our retailers safe as well, at
on to get his degree in criminal officers have worked a long career, least when it comes to their lottery
justice from Indiana University – and we don’t always want to end product offerings. Probably the most
Purdue University Indianapolis. up in a guard shack, as a security challenging thing has been keeping
He was with the Marion County guard or as a private investigator. up with the normal workload while
Sheriff’s Department for almost 30 I think part of the attraction to weathering the seemingly endless
years, serving in various divisions lotteries in particular is that it’s like audits which are necessary for a
as he progressed from Deputy to nothing else we’ve ever done. I was state agency responsible for such a
Sergeant to Lieutenant. During his thrilled to take advantage of this job large source of income that benefits
law enforcement career, he also was opportunity – usually, Directors of all Indiana citizens.
involved in the 2001 World Police & Security at any entity are retiring Operationally, entering into the
Fire Games held in Indianapolis, and police chiefs or other high-ranking Integrated Service Agreement with
served a four-year term as President officers. I retired as a lieutenant, IGT Indiana in 2014 has been a huge
of the Indianapolis Fraternal Order so to this day it amazes me that I undertaking which impacted all of
of Police. ended up here. our employees – most of us became
24 | NASPL INSIGHTS July/August 2020After a trying week at the Lottery!
more “administrators” as opposed
to actual “operators” in most of
our duties as we went from about
180 employees down to about 35,
with IGT Indiana picking up those
employees. The company has been
very cooperative whenever we need
access to systems and applications.
As I mentioned, I’m usually the
squeaky wheel and won’t hesitate
to squawk about something I don’t What have you been doing dif- and thousands did just that. To
like. I always try to identify ways we ferently this year because of the date, we’ve only had to investigate
can be proactive, instead of reac- pandemic? three cases where a winning ticket
tive. That’s hard when historically, Security’s role in the claims/ appeared to get lost in the mail.
security and police work is reactive prize payment process has been For those winners who have
by nature. But if I can discover a greatly affected, and our security made an appointment for a prize
problem before anyone else, such as staff has been incredible in adjust- claim of $10,000 or more, we
a retail theft that even the retailer ing to these changes. We had to conduct our security interview at
doesn’t know about yet, that feels close our prize claims offices to that time. But for all of the mail-in
great. IGT Indiana has been really the public, although winners could claims at that level, and there have
helpful in developing reports that make appointments during a short been many, they are assigned to
might send up these types of early time frame each day. They could one of our six field investigators
red flags. also mail in their winning tickets, scattered throughout the state. The
July/August 2020 NASPL INSIGHTS | 25MAKING A DIFFERENCE
eliminate ticket theft, as the thieves
would only have a bunch of useless
paper.
What do you like most about the job?
I have never worked with a more
dedicated group of people than
the Hoosier Lottery staff, and the
security department in particular.
I’ve never really been that “into”
titles, but this gang certainly makes
the Director of Security look good!
Also, knowing that the efforts of the
entire amazing staff at the Hoosier
Lottery makes it possible to support
the financial needs of Indiana and all
of its citizens.
Lotteries are about fun and enter-
tainment – how do you have fun?
After the first 15 minutes follow-
ing the alarm clock, pretty much
everything about working at the
Lottery is very fun and rewarding.
The executive staff and everyone
I work with are pretty effective
investigator contacts the winners in the lottery world is outpacing the at making that happen – it’s not
to arrange an interview. In only rare capabilities or available resources all business. I get to meet a lot of
exceptions do we not conduct a for technology to keep up. This is an winners, and I try to make those
face-to-face interview – we really industry that is 100% based on in- interviews as enjoyable as possible,
want to not only match their face tegrity, and we have to do everything even to the point of being goofy. I
to their government-issued ID, but we can to make sure that integrity is do have a persona as the “Grump”
also pick up on any signs of problems protected. around the office, and I probably
just by looking at someone during For example, the industry is enjoy that a little more than I should.
the interview. One field investiga- making progress with in-lane sales, And at my age, I’m often asked why
tor actually did a video interview relaxing our age-old restrictions I don’t retire. I don’t have a very
through their phone, but the rest on secure paper for ticket stock. I’ll profound answer to that question
have all been done in person at the admit that kind of creeps me out a except that I can’t think of a good
player’s convenience. Our team has little bit – eliminating any barriers reason to!
conducted interviews in parking lots, we have in place always makes me
backyards, screened porches – you nervous, because there is always
name it. The vast majority of players the human factor of people trying to
understand that we are not trying to cheat.
find a way not to pay their prize, that Then we have dozens of in-
“I do have a persona
this is just one step in the process stant tickets on sale, and yet we
that has been transformed this year haven’t been able to initiate an as the ‘Grump’
by COVID-19. activate-on-sale function. I would around the office,
love to see technological advances
and I probably enjoy
Is there anything you’d like to see that would make it possible to track
change, either at the Hoosier Lottery the sales of instant tickets as easily that a little more
or in the industry in general? as we do the validation (or valida- than I should.”
I may be overgeneralizing, but it’s tion attempts) of those tickets. That
my belief that the creative thinking one new capability would virtually
26 | NASPL INSIGHTS July/August 2020July/August 2020 NASPL INSIGHTS | 27
RESEARCH Corner
Thinking on Our Feet:
The Importance of Being
Nimble in a Post-COVID World
By Greg Wood
Manager, Research and Analytics, Kentucky Lottery
I
t is no secret that in March 2020, Understanding that lapsed and
the United States and much of light players might have been harder
the world was suddenly faced to reach and hesitant to engage with
with unprecedented economic and the Lottery, we decided to create a
social impacts brought on by the survey and distribute exclusively to
novel coronavirus (COVID-19). As our Lottery Fun Club member base.
businesses began to shut down, em- Currently numbering over 50,000
ployees began to work remotely, and individuals, these players typically
the Kentucky Lottery was faced with from COVID-19 were predicted have high levels of engagement with
the decision of whether to move to be long-lasting, and like most the Lottery and are eager to have
forward with our previously sched- businesses the Kentucky Lottery their voices heard. Not to mention
uled April Scratch-off game launch, needed to know if we were meeting the fact that there is basically little
or to postpone or cancel. Thoughtful the consumer’s needs during this to no cost to the Lottery to reach out
arguments were made for both strat- unusual and difficult time. to them.
egies, but ultimately it was decided In a pre-COVID world, we would We are fortunate in Kentucky
that the Lottery would go ahead with have likely conducted both qualita- to have a strong group of Fun Club
the launch, albeit without adver- tive (focus groups) and quantitative members who are eager to respond
tising support (silent launch). How (panel studies) research to gauge to survey requests very thoughtfully
would our consumers feel about consumer sentiment and feedback. and without the need of an incentive.
this decision? And while a majority However, with state mandates and It is for this reason that we are very
of Kentucky Lottery retailers may guidelines seemingly changing by the careful to limit survey requests
be considered “essential service” day, the Lottery was eager to obtain of these individuals so as not to
businesses, would the general public reliable and actionable feedback as experience “burn out” or survey
be reticent or afraid to visit these re- quickly as possible. The question “fatigue.” As many researchers will
tailers? As one of nine states offering became, “How could we get this tell you, once you go down the road
online lottery sales, how would that information very quickly, and with a of offering incentives for feedback, it
player base be affected? The impacts limited budget?” can be very difficult to stop.
28 | NASPL INSIGHTS July/August 2020You can also read
