Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 2020
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CONTENTS SEPTEMBER/OCTOBER 2020 Publisher & F E A T U R E D I N T E R V I E W S Chief Executive Officer Paul Jason pjason@publicgaming.com 12 16 20 President Susan Jason sjason@publicgaming.com Brand and Design Dan Eggers Design Honored Founders Doris & Duane Burke Contact Information 42 28 38 T: +425.449.3000 F: +206.374.2600 For email address changes, subscription requests and requests to be placed on our e-Newsletter distribution list, contact: sjason@publicgaming.com PGRI, Inc. 218 Main Street, #203 12 Thinking about the impact of post-COVID19 mega-trends on life, Kirkland, WA 98033 business, and Lottery PublicGaming.com Michelle Carinci, President, Chief Executive Officer, and member of the Board of Directors, Lottotech, operator of the Mauritius National Lottery Subscriptions Annual Public Gaming 16 The entire team of Georgia Lottery stakeholders pulls together to International magazine produce a great finish to 2020 subscription rates: Gretchen Corbin, President & Chief Executive Officer, Georgia Lottery United States: $145 USD Corporation Canada & Mexico: $160 USD 20 Texas Lottery continues to ride the Innovation Train All other countries: $225 USD Gary Grief, Executive Director, Texas Lottery Public Gaming 24 Combining dedication to service with proactive leadership in troubling times International Magazine Luca Esposito, WLA (World Lottery Association) Executive Director Published six times a year and distributed to readers all around 30 The Methods are changing while the Mission of the EL to serve its the world. Electronic version is members remains the same e-mailed and is also available on Arjan van’t Veer, Secretary General, European Lotteries (EL) our news website: 38 IGT PlayDigital: Turning Disruption into Opportunity to Enhance the Player PublicGaming.com Experience September/October 2020 Enrico Drago, Senior Vice President, IGT PlayDigital, Sports & Italy Gaming Volume 47, Issue 5 42 How Asia-Pacific Lottery industry is Responding to the Pandemic ©2020 all rights reserved. Marios Mitromaras, CEO, INTRALOT Australia and INTRALOT Gaming Services Public Gaming Research Institute 50 Digging In on Diversity & Inclusion cISSN: 1042-1912 Kim Barker Lee, Vice President, Diversity and Inclusion, IGT 4 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020
FE ATU R E D A RTICLES Visit Our Family 28 Are Retailers Now Driving Lottery Modernization? If So, iLottery Games: Great Brands, Popular Game Mechanics & Of Websites What Can We Do to Be in a Strategic Promotions Redefine Better Position of Partnership in Performance the Future? Scientific Games Mike Purcell, Senior Vice President, 56 Digital eInstants – Sales & Marketing, Kentucky Lottery What’s Next?? PublicGaming.com industry news & information 32 For lotteries around the world, Rhydian Fisher, Chief Executive the pandemic has literally been Officer, Instant Win Gaming (IWG) PGRITalks.com a game changer 58 Oh, the Difference a Year videos of conference presentations Pollard Banknote Makes: Instant Game Sales & PublicGaming.org 33 In-Lane Instant Sales Funding for Education Grow in PGRI conference information Pollard Banknote Ohio 34 Where Do We Go From Here? Scientific Games PGRIDigitalLibrary.com 45 magazine archive of past issues Lottery Industry Poised for 64 Do-it-Yourself Checkout … the Hyperspeed Changes Abacus way PGRIDirectory.com Jim Acton, Lottery Industry Edwin van Zon, Sales Director listing of lotteries and vendors Consultant Europe, Abacus solutions 36 How COVID-19 inadvertently International PGRIAwards.com helped lottery instant ticket 65 Ukraine Breakthrough: Light at Showcase of industry honorees sales the end of the Gambling Tunnel recognized by the Simon Jaworski, President, Leger Evgeniy Vlasenko, Vice President Lottery Industry Hall of Fame U.S.A, Lottery & Gaming guru of MSL Lottery,and member of EL PGRI Lifetime Achievement Award 44 Responding to COVID-19 after executive committee Sharp Award for Good Causes the first wave: The need for a 66 Pulling Creative Risk out of Lottery Industry Statesman three-dimensional approach Radical Disruption: How order 50 and Stateswoman Award Philippe Vlaemminck, managing and timing can turn adversity partner Pharumlegal into opportunity for positive Rebecca Hargrove Mentorship Award change Collaboration Award 46 Lifting Sales Across the Portfolio with Top-Selling JoyceLynn Lagula, Design Director, Wilson Associates D E P A R T M E N T S Subscribe To Our Free Digital Newsletters 8 From the Publisher Bishop Woosley, Lottery Industry Receive our daily newsletters at no Paul Jason Consultant and former Director, charge, published 5 times a week 10 Congratulations to the newest Arkansas Lottery Commission to bring you the latest breaking members of the Lottery Industry 26 Shining the light on POWERBALL news in the global lottery industry. Hall of Fame – the new team approach to Send an e-mail to: Scott Gunn Senior Vice President, promote America’s jackpot game sjason@PublicGaming.com Corporate Public Affairs, IGT MUSL NEWS (Multi-State Lottery with “add to Daily Digest list” Patrick McHugh Chief Executive Association) in the subject line. Officer, Scientific Games Lottery 68 Pulse of the Industry Group Synopsis of Recent Industry News Gordon Medenica Director, Maryland Lottery and Gaming 76 Corporate Profiles PGRI Lottery Control Agency Expo Producers John Pollard, Co-Chief Executive Spotlight on the Leaders of the Officer Pollard Banknote Ltd. Government-Gaming Industry Nigel Railton Chief Executive Officer, Camelot UK 6 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020
From the Publisher H opefully you are seeing her career in senior positions at Canadian the trends that would have taken years to this a week prior to PGRI lotteries and at GTECH, and as CEO of implement in the pre-COVID era is being Lottery Expo Transformed. Atlantic Lottery in Canada before assum- compressed into months. Jim Acton puts Our in-person Nashville ing the role of CEO of Lottotech, the op- this hyper-speed time-line dynamic into event did need to be erator of the lottery in Mauritius. As CEO historical perspective. Simon Jaworski cancelled and we have a fabulous virtual of the Georgia Lottery, Gretchen Corbin is reveals the hot-off-the-press data and fact- program scheduled for October 14 to 16 responsible for steering one of the biggest, driven insights into what drove the recent and hope you can join us. See our news most successful, and one of the handful of increases in sale of Instant scratch-offs. website (PublicGaming.com) or our con- “iLottery” U.S. state lotteries. Texas lottery And this is the second column of Joyce- ference website (PublicGaming.org) for the director Gary Grief is an innovative leader Lynn Lagula speaking about the redesign detailed program that includes presentation in the digitization of the in-store shopping of recreational gaming venues and casinos times, speakers, topics, and registration and lottery playing space, as well as open- as they reinvent for a more hygienic play- information. ing up the “big-box” national retail chain ing environment. store channel. Enrico Drago and Marios The conference as well as this magazine Mitromaras bring the global commercial Congratulations to the six newest mem- are consumed with a focus on the post- technology-partner perspective. It was so bers of the lottery industry Hall of Fame. COVID world. Sadly, it almost feels like much fun doing all these interviews via the Join us at 4:00 pm CST Oct. 14 for the wishful thinking as it is not clear when Zoom video-conferencing platform. online celebration with current members we will be emerging from the disruption and inductees Scott Gunn, Pat McHugh, caused by the pandemic and its economic And a special thank you to Kim Barker Gordon Medenica, John Pollard, Nigel repercussions. In the mean-time, there is Lee for our deep dive into Diversity and Railton, Bishop Woosley. See page 10 for no shortage of issues to address, problems Inclusion. We discuss how “the Power biographies. to solve, and lottery tickets to sell right of We” is changing the world, and why here and now. The good news is that the we need it now more than ever. This is a The virtual conference PGRI Lottery lottery business has not been impacted as time not only of pandemic and economic Expo Transformed will be held October negatively as many others. In fact, after disruption. Perhaps not coincidentally, it 14 to 16. Check out conference website a tumultuous March and April, most lot- is a time of profound civil unrest, during PublicGaming.org or news website Public- teries have fared quite well over the last which we need a special kind of leader- Gaming.com for conference program and six months. Government lotteries are ship which is keen on galvanizing the updates. We thank you for your support positioned quite well to consolidate the cultural enlightenment so necessary to and commitment to an industry that serves foundation of great products, retail net- ongoing progress. the interests of society, of good causes, of work and distributional infrastructure, players and retail partners, and of count- brand awareness and reputation, and Thank you to all of our editorial contribu- less Lottery-sector stakeholders. We are connection with what is by far the broad- tors for insights into a strikingly broad thinking about you with a new sense of est and most diverse base of customers range of topics. Luca Esposito and Arjan appreciation for the great privilege of actu- in the games-of-chance industry. Insofar van’t Veer talk about the ways our indus- ally being together again in person – and as we are competing with other gaming try associations are adapting to deliver sooner than later! categories for the attention of the consum- value and connectivity to their member- er, lottery has the inside track. It would ship. “MUSL News” is a new column appear that is even more true now than it that will be featured in every issue. The was in the pre-COVID world. What can Multi-State Lottery Association manages we do to lock in whatever competitive ad- the flagship brand of the industry – Pow- vantages may have accrued to lottery over erball. But there is much more to MUSL Paul Jason, Publisher the last seven months? What insights can than Powerball, including a big portfolio Public Gaming International Magazine we leverage to further enhance the value of of regional games along with a sophisti- the games, the quality of the overall player cated brain trust and engine for new game experience, and the easy “omni-channel” development. Pollard Banknote on how access to the games? the economic restrictions imposed to try to control the spread of COVID have signifi- We tried to bring a variety of experiences cantly changed how, when, and where we and perspectives to weigh in on these ques- shop and buy things. Mike Purcell on lot- tions. Michelle Carinci spent the bulk of tery and retail modernization and on how 8 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020
Enhanced Partnership Your Bottom Line is More Than a Number SGEP Lotteries have weekly per capita sales that are 56%* higher than self-managed lotteries and 27%* higher than lotteries managed by other vendors. Drive more to your bottom line and to the good causes your lottery supports. *B as ed on C Y 20 19 W ee kl y Pe r C ap ita In st ant G am e Sa le s Reimagine Next © 2020 Scientific Games Corporation. All Rights Reserved.
PGRI SCOTT GUNN PAT MCHUGH GORDON MEDENICA Senior Vice President, Executive Vice President, Director, LOTTERY Corporate Public Affairs, IGT Lottery Group Chief Executive, Maryland Lottery and Gaming With a strong foundation in lottery Scientific Games Gordon Medenica is a lottery industry INDUSTRY operations and more than 25 years Pat McHugh has served the global veteran, having managed lotteries in of lottery experience, Scott Gunn, lottery industry since 1992. In his cur- New York, New Jersey and Maryland, Senior Vice President, Corporate rent role of CEO of Scientific Games as well as being active in industry-wide HALL OF Public Affairs at IGT has spent most of his career collaborating with public Lottery Group, he leverages his wide- ranging experience as an advocate for activities. He began his career as the Director of the New York Lottery, the FAME policy makers and customers alike industry modernization and innovation country’s largest, in 2007. During his to support lottery innovation and to support lottery missions. One of time in New York, the lottery set all-time best practices. He understands that Pat’s core values is collaboration. He revenue records every year. His proud- leveraging new ideas ensures lotteries recognizes to succeed, teams must est accomplishments include the initia- across the globe continue to generate work well together, products must tive to the federal Department of Justice Congratulations to revenue for good causes. work across platforms and markets, (DoJ) to rescind its interpretation of the the newest members After a stint supporting the Texas and and suppliers must coordinate to provide integrated experiences for 1961 Wire Act, an action that led to the legalization of online lotteries in 2011. of the Lottery California Lotteries, Scott served as the lead in lottery operations for IGT lotteries and their consumers. He has Medenica and his team also created the Industry Hall of predecessor GTECH in the Western spent his extensive career bringing together divergent teams, products, New York Lottery Black instant ticket, which became the all-time best-selling Fame. Region of the United States, so he understands the myriad of day-to- and systems to create new solutions. ticket at its price point, with successful day issues for lotteries and lottery imitators world-wide. With a focus on The 88 members of the PGRI Lottery Pat began his industry career in 1992 leadership. He grew up in the field advertising, the lottery also won multiple Industry Hall of Fame have voted for managing the field roll out for the where keeping lottery networks industry Batchy awards, culminat- launch of the Texas Lottery, followed and elected six industry leaders to be operating, customers engaged and ing in the World Lottery Association by the Georgia Lottery start-up. Then ensuring integrity are the primary (WLA) Best of the Best award in 2012. inducted into the Lottery Industry Hall quickly moved into years of globally concerns. Since joining GTECH in Medenica also oversaw New York’s nine of Fame for 2020. managing many of the industry’s 1994, he has held positions in sales, casinos and managed the successful most complex lottery start-ups business development, government selection process for the operator at The Lottery Industry Hall of Fame was and conversions, before advancing relations and global operations. While New York City’s Aqueduct racetrack, founded in 2005 as a means of hon- into progressive levels of technical leading GTECH California operations, which has become one of the world’s and business operations, product oring those who have done the most Scott managed a successful system largest casinos. innovation, business development, to promote excellence and integrity conversion, supported major retail and strategic planning. Pat led many After New York, Medenica was the in our industry and make the world expansion, assisted in the launch of strategic industry first-to-market initia- transitional CEO of the Northstar New Mega Millions and in 2010 helped tives, including expanded distribution Jersey Lottery Group, which won the lottery industry the great success. The successfully inject prize payout channels, cashless payments, lottery contract to manage sales, marketing recipients of this award are all a credit flexibility into the law by shepherding sports betting, new network technolo- and related functions for the New Jersey to that ideal and are joining a select a key piece of legislation over the gies, iLottery and other digital lottery Lottery. He remains the only director finish line. As a result, annual lottery platforms. to have managed lotteries from both and distinguished group of world lot- revenues supporting education in the public and private sides. Also, he tery industry professionals. Pat has served lotteries in markets California have increased dramatically worked with the New Jersey and New around the world directing dozens of since its enactment. York Directors to create and launch the complex gaming systems deploy- Induction Ceremony Bringing people together in our indus- ments, product launches, opera- Cash4Life multistate game. try is one of Scott’s greatest strengths tions, new business initiatives, and Next, Medenica joined the Maryland The six Hall of Fame inductees will be and helps ensure the lottery industry strategic product development. He Lottery and Gaming Control Agency as honored in a virtual ceremony at 4:00 speaks as one. A leading voice in has been a leading and vocal industry Director in June 2015. By focusing pm Central Time U.S. Go to Public- shaping the North American State advocate for sustaining the future his team on instant ticket sales, he and Provincial Lottery’s government of the industry’s beneficiary funding has consistently set revenue and profit Gaming.com to join the celebration. relations platform, Scott has helped records. He also oversees Maryland’s through convergence of traditional and gain consensus on global issues like digital lottery products and technol- casinos, opening its largest, MGM responsible gaming, Internet wager- ogy, distribution channel expansion, National Harbor, in 2016. ing, daily fantasy sports. sports betting innovative content, data analytics, and His work for the lottery industry includes and gaming expansion – issues and industry leading partnering services serving as President of the North Ameri- innovations shaping the future of the to add value and growth for his lottery Visit LotteryIndustryHallofFame.com can Association of State and Provincial lottery industry. customers. Under his leadership, Sci- for info about the Hall of Fame and its Lotteries (NASPL) in 2012; he currently members. As a fierce advocate for lotteries in entific Games Lottery Systems evolved serves on the NASPL Executive Commit- Continued on page 55 Continued on page 55 Continued on page 55 10 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020
JOHN POLLARD NIGEL RAILTON BISHOP WOOSLEY Co-Chief Executive Officer, Chief Executive Officer, Camelot UK Lottery Industry Consultant and Pollard Banknote Limited Senior Vice President, World Lottery former Director, Arkansas Lottery Commission With more than three decades of lottery lead- Association (WLA) Bishop Woosley's initial exposure to the lottery ership, John Pollard has helped steer Pollard Camelot UK, one of the world's most successful industry began when he served as Assistant Banknote from its beginnings in the Canadian lotteries, was established in 1994. Nigel Rail- Attorney general in Arkansas and aided in the lottery industry in the 1980s to become the ton was appointed to lead Camelot UK in 2017. drafting of the Arkansas Scholarship Lottery Act world class lottery partner that it is today. in the 2009 legislative session. Bishop officially Nigel was previously CEO of Camelot Global, John has been integral to Pollard Banknote’s which runs a growing portfolio of consultancy joined the Arkansas Lottery at its inception in July ongoing evolution and growth, ensuring the and private management contracts for which 2009 as Director of Procurement. That same company is constantly adapting to meet new it has earned an industry-leading reputa- year he assumed the role of Chief Legal Counsel, challenges. As Co-Chief Executive Of- tion. During his time at Camelot Global, Nigel a position he held until February 2012. ficer, he has worked alongside his brothers was integral in securing the 10-year private In February 2012 he was named Director of for many years, first with Gordon and now management agreement to run the Illinois the Lottery. Upon assuming the role of Direc- Doug. John's role focuses on the financial Lottery and worked very closely with Camelot's tor, Bishop was tasked with re-organizing and and operational aspects of Pollard Banknote. shareholder, Ontario Teachers' Pension Plan revitalizing a lottery that was faced with declining Together with his brothers, he oversees all (OTPP), in the successful bid to operate the sales. As a result of his efforts to streamline the strategic and general management of Pollard Irish National Lottery. This was in addition to day-to-day operations and renegotiate lottery Banknote and its subsidiaries. With a clear negotiating a five-year contract to work with the vendor contracts, lottery net proceeds increased vision for the future, he has fostered a long- Arkansas Scholarship Lottery to help it improve by over 30%. The Arkansas lottery has enjoyed standing history of innovation in print products its lottery sales, as well as launching a new three consecutive record sales years and its and championed the company’s move- online gaming platform for Swiss lottery opera- highest ever amount raised for scholarships under ment into the digital space, particularly the tor Loterie Romande. his guidance. establishment of NeoPollard Interactive, the Nigel joined Camelot in 1998 as Financial In addition to rejuvenating the lottery, Bishop leading provider of iLottery solutions in North Controller and became Finance Director in was also very active in the growth of the U.S. America. John guided Pollard Banknote’s 2003, later joining Camelot's Board in January Lottery Industry. Over the last several years he strategic investment in the company’s core 2006. He was also on the board of Camelot's has held numerous positions within the North business, as well as in the acquisition of new venture in South Africa from 2003 to 2005, American Association of State and Provincial subsidiary companies, to augment Pollard which saw the company establish and support Lotteries (NASPL), serving as Legal Committee Banknote’s position as a proven lottery partner the successful operation of the inaugural South Chair, Secretary, Treasurer, First Vice-President, and innovator. African National Lottery. and President. During this same period, he also As Co-CEO, John continues to drive the Having played a key role in Camelot's success- served as Legal Committee Chair, Mega Millions company’s ongoing expansion into new busi- ful bid to operate the UK National Lottery in the Group Chair, and Secretary for the Multi-state Lot- ness sectors within the lottery and charitable third licence period, Nigel became Finance and tery Association (MUSL). Bishop's leadership and gaming industries. John’s enthusiasm and Operations Director in 2007, assuming overall contributions to both organizations has helped dedication keep Pollard Banknote top of mind responsibility for the successful implementa- shape the future of the industry. as a partner in the lottery sector. John has led tion of Camelot's transition commitments. This numerous initiatives to help lotteries attract In 2016, Bishop was selected to serve as MUSL saw Camelot complete the largest and fastest Legal Chair. Less than 4 months after being new players, expand lottery products, extend lottery upgrade of its kind in the world – with an the retail network, and thereby increase appointed, a MUSL employee was arrested for entirely new network of touch-screen terminals leading one of the largest scandals in lottery revenue for good causes. He oversaw recent and cutting-edge digital media screens; an acquisitions of Diamond Game, International history. Over the next three years as Chair of the upgraded gaming system via a brand new MUSL legal committee, Bishop shepherded the Gamco, Schafer Systems, Fastrak Retail, and communications network; and a new, next- mkodo; subsidiaries that provide opportunities organization through a litany of legal issues and generation National Lottery website, with a re- two multi-million dollar class action lawsuits. As for lotteries to reach new markets and grow designed interface and host of new functions. the player base. a result of his work, MUSL was able to resolve the In 2008, working alongside then Group CEO class action quietly through mediation as opposed John is also fiercely committed to the Dianne Thompson, Nigel took responsibility for to a messy public jury trial for millions less than company’s employees and the communities developing Camelot's overall strategy for both was originally requested. they live and work in. When John began at the UK and international markets, and drove Pollard Banknote in 1986, the company had Due to the resignation of the preceding NASPL the sale of Camelot to OTPP in 2010. He then 57 employees, today Pollard Banknote’s team President, Bishop has served one of the longest became Group CFO and Strategy Director, has grown to nearly 2000 – almost 200 of terms as NASPL President ever. During his securing a four-year extension to Camelot's which are members of Pollard Banknote’s 25 tenure, the industry was shaken by the reinterpre- current licence, which now runs until 2023. Year Club – a testament to John’s dedica- tation of the 2011 Wire Act opinion by the Depart- tion to staff company-wide. Prior to joining Nigel has also served the World Lottery As- ment of Justice and the Covid-19 pandemic. Pollard Banknote, John worked as a Chartered sociation, presently in the capacity of Senior Bishop has worked tirelessly to educate federal Professional Accountant with Deloitte. n Vice President. n Continued on page 55 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020 11
PGRI INTERVIEWS Michelle Carinci President, Chief Executive Officer, and member of the Board of Directors Lottotech, operator of the Mauritius National Lottery put together a detailed Business Continuity Plan in response to the Covid pandemic BEGINNING TO UNRAVEL which complements our existing BCP anticipating there would be a lock-down of THE LONG-TERM IMPACTS some sort. So, in most respects, we were well prepared for a lock-down and confine- OF CURRENT CRISES AND ment. In addition, we applied an excellent Enterprise Resilience tool provided by DISRUPTIONS E & Y to ensure we had considered the impact of a lock-down on all aspects of the business. PGRI INTRODUCTION: Michelle Carinci has held senior leadership roles in A rapid response forum was created where key the lottery industry since 1982. A Canadian national, she was appointed CEO of team members could meet virtually several Lottotech in 2012. Prior to joining Lottotech, Michelle held the position of CEO at times a day. Once we were satisfied that the Atlantic Lottery Corporation, which under her leadership was recognized three team was safe and supportive measures were times as one of Canada’s Top 100 Employers. As President and CEO of the Atlantic in place we did the usual stress test of the top Lottery Corporation, she developed and implemented a corporate social responsi- line, profit and loss, and cash flow. Strength- ening our liquidity became important as we bility framework which strives to promote integrity, transparency and responsibil- had to shut down the sales entirely because ity. Prior to joining Atlantic Lottery Corporation, she was President of Gamescape, lottery play and revenue were not considered a wholly-owned subsidiary of GTECH, and a Corporate Vice President in charge an essential service. of marketing and customer relations at GTECH. She began her lottery journey at While we have Security as a Service 24/7, Western Canada Lottery Corporation in 1975, before moving to the British Columbia the company had never tested security in a Lottery Corporation. work-from-home environment, so once the confinement period was over an assess- Michelle has been recognized four times as one of the top 50 CEOs in Atlantic ment was done through a third party and Canada and is a member of the Lottery Hall of Fame class of 2006. She is a strong subsequently the findings were addressed. promoter of responsible gaming, having been one of the founding members of the This was also the first time the Company Responsibility Certification Program on behalf of the WLA. In that role, Michelle experienced the need to continually aided in the creation of responsible gambling principles and its associated frame- postpone draws and from an IT perspective works and standards which were unanimously approved by 140 organizations that was not a trivial undertaking. Half a worldwide. world away from each other the teamwork between Lottotech and IGT was admirable. I am pleased to have known Michelle since introducing myself to her after her What were some of your observations and presentation at the very first lottery industry event I ever attended – the WLA key learnings from this experience? Conference in Singapore in 2006. Michelle graciously agreed to talk with me now M. Carinci: Several things come to mind and share her insights into how to frame some of the most perplexing questions in reflecting on the past several months. about big-picture mega-trends and how they will influence and re-shape our world One in particular stands out for me and in general, and the worlds of business and lottery in particular. that is how the team grew stronger, more agile and worked together across all disciplines to support each other and the Paul Jason: What was the situation in respond quickly to ensure the safety and communities we work in and to get the Mauritius at the outset of the pandemic? health of our team and all stakeholders as job done. Thank goodness for technology Michelle Carinci: Similar to organiza- well as focusing on business continuity. which was the integral enabler for all this tions around the world, Lottotech had to Fortunately, in Mauritius we had time to to happen seamlessly. 12 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020
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PGRI INTERVIEWS The second aspect that comes to mind is M. Carinci: During the the magnifying glass the pandemic placed confinement period we have upon the global issues we are facing from a all had the time to think growing myopic nationalism/populism, to about this very pertinent the changing environment and the dispari- question. After reading ties relating to the distribution of wealth about and listening to what throughout our communities and society in experts and folks more general. I started to consider the impact this qualified than I am on this disruption could have upon our industry. I matter are saying, I think began to wonder as an industry what more there are several trends that we could do together to meet the challenges may have an impact on our and make a difference in our respective industry and perhaps on us worlds. We have always taken pride in personally and profession- making a difference in the communities ally. But honestly, I still we operate within through the earmarking have more questions than of our revenue for good causes and our answers. corporate social responsibility programs. According to those who In fact, this is a qualifying factor to be a study global mega trends, member of WLA. we may see an accelera- I reflected on how as an industry we tion of these trends such responded to the need for a responsible as cyberwarfare, work/ gaming strategy and framework and how life boundaries, climate that is part of our DNA today. What else activists and behavior might we do collectively as an industry to economics just to name continue to have the consent to operate a few. It is estimated by from all stakeholders into the future not major technology providers just to protect our business but also because that the world has already it is the right thing to do. There are experienced two years of Michelle and husband Jan helping to contain the oil spill off the coast inspiring examples of gaming organiza- digital transformation of Mauritius. tions rallying during the crisis, doing their in just a little over two Social distancing has prompted organiza- part to ensure vulnerable groups are cared months. tions to embrace video conferencing like for and protected. How can we keep There has been an acceleration of the use never before. Virtual classrooms and virtual that momentum going and make it even of technology. For example, the adoption learning, while controversial, have become stronger? Do we have technology applica- of the public cloud, remote and flexible viable alternatives. tions that go beyond gaming that could working hours, technology that improves The development of next generation remote benefit society as a whole? Are we taking the business continuity, the use of collaboration working technologies, such as augmented time to consider what’s next for us beyond tools like Microsoft Teams and a heightened and virtual reality, are predicted to create the games and are we living up to or into awareness of the need for such efficiency that organizations will likely Security as a Service. A retain them into the future. For example, “After all, we have discovered good example of this is Loto-Québec recently deployed a robot to without knowing it that we provide the acceleration of cashless present a cheque to a winner. more information to search engines solutions to eliminate the need to handle cash and Many are rethinking their real estate than to our families. Our phones and interact physically at retail. footprint as well as considering new col- laborative and teamwork models. social media now hold data about our The pandemic has driven Unfortunately, enabling remote work and behavior, preferences and perhaps risk-mitigating processes teaming raises the risk of isolation and and procedures designed even our state of mind. We now live to track employee health, loneliness which may impact well-being and in world where target marketing is reduce human to human productivity. So we need to balance tech- nology adoption with creative approaches easily deployed through the use of interactions as well as to maintain a sense of community and upgrading ventilation and this information.” physical barriers. The meaning. At Lottotech we have found that a high percentage of employee engagement in need to mitigate risks may challenge privacy protection and lead to a our CSR initiatives is effective in doing this. our purpose? The answer is likely yes, but then the question is, can we do more? little more permissive ethical mindset. The Organizations will be challenged on innova- contact tracing process introduced by many tion during this time of scarce resources How might the world be different when we countries and organizations during the and concern about cash flow. Balancing the come out of this crisis? pandemic is a good example of this. investment of innovation for the long term Continued on page 62 14 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020
Working to create and maintain new revenue channels for lotteries. Diamond Game is committed to providing innovative products to support our customers’ ability to safely raise money for good causes. “Excellent product helps pull in revenue to our site.” “The machines have saved our site.” “These games have been a financial boon to the site, not only allowing us to remain open, but also to live up to our charter and donate back to veterans and the community.” “Income from games are very helpful in keeping the site open!” Retailer quotes received from Diamond Game 2020 Annual Customer Satisfaction Survey.
PGRI INTERVIEWS Gretchen Corbin President & Chief Executive Officer, Georgia Lottery Corporation THE ENTIRE TEAM OF GEORGIA LOTTERY STAKEHOLDERS PULLS TOGETHER TO PRODUCE A GREAT FINISH TO 2020 doing was not going to work under those conditions. Since we need to change so much anyway, we decided to take the PGRI INTRODUCTION: The Georgia Lottery Corporation finished its fiscal opportunity to explore pathways to year 2020 with record sales and net transfers to its beneficiary, Georgia’s HOPE make things better than they were before Scholarship and Pre-K programs. and improve on what we had been doing. “Our FY20 results are a reflection of the fortitude and commitment of many,” We turned the urgent need to address Georgia Lottery President and CEO Gretchen Corbin said. “As with all compa- short-term crises into a catalyst for more sweeping progress to hopefully lay a foun- nies, 2020 has been an historic year, challenging us to the max, which makes dation for long-term sustainable growth. me even more honored to report this record year of returns for education. Our We all know, for instance, that technology team has been laser focused on delivering the greatest amount possible to the is available to enable vast improvements in state in a year where we first focused on outpacing 2019, the year of one of the operational efficiency and effectiveness as largest jackpots in history, and then added COVID-19 challenges to our goal to well as enhancements to the whole player surmount.” experience. Well, this was the opportunity After a dip in March, Georgia Lottery sales rebounded in the last quarter of FY20 to move quickly from the planning stage as players became more familiar with online play availability, many retailers and into implementation mode. remained open because of other services they provide, and most other forms of Our teams executed well under the most entertainment were limited. challenging conditions. And when I say teams, I refer not only to our Georgia We talked with Gretchen Corbin to get some insight into how they did it. Lottery employees but to all the support we received from the state of Georgia, from our retail channel partners, and from our Paul Jason: Congratulations for ending Georgia Lottery was on track to exceed vendors. We all came together and asked, up the year with another record fund that number for the fiscal year that ended “How do we continue being successful?” transfer. There must have been some in June. So we were thrilled. Then, the That’s our job, that’s our commitment to anxiety about how you would close out first couple weeks of the pandemic put the state of Georgia, and our beneficiaries the fourth quarter? the entire industry on red alert. In the and stakeholders all depend on us to G. Corbin: Thank you. We did have an beginning, I think we were all immersed in deliver. The pandemic just gave us another excellent year – $1.23 billion returned the mission to address the immediate chal- reason to push ourselves to be even better to the state of Georgia for the HOPE lenges and just keep the business operating than ever. Scholarship and Pre-K programs. Like my amidst so many uncertainties. Your per capita sales are among the very colleagues all around the country, I was Once we gained visibility into the direct highest in the country. And, of course, concerned about how we would meet our short-term impacts, and how to deal with Georgia is one of the most populous states. financial targets without the large jackpots them, we could begin to assess the situation So to continue to build when your market- of the previous year. How do we overcome and fine-tune the Business Continuity place penetration is somewhat optimized that and maintain that same level of Plans. We found ourselves in a position already is amazing and impressive. success? Before the pandemic began, the in which much of what we had been 16 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020
PGRI INTERVIEWS G. Corbin: It’s important to give the kudos tunity to carve out a bigger role for itself We’ve always appreciated our retail partners to our retailers. At the end of the day, in helping retailers modernize. but at no other time than these past five without our retailers, who were still selling G. Corbin: Every aspect of the business months has that been more apparent. The during the pandemic, our sales would not changed very quickly during the pandemic. increases in our online sales contributed to have happened, and we would not have Point-of-sale, advertising and promotions, our results as well. We were very appre- been successful. I always want to make internal operations, as well as retailer ciative that Governor Kemp designated sure, in any year but especially this year,support and the application of technol- convenience stores as essential retailers to that we extend our heartfelt appreciation ogy to enhance the in-store shopping and continue operating during that time period. to our partners in the retail arena. We were playing experience. For instance, we like How do you weigh the trade-off between incredibly fortunate to benefit from their to support our products and our retailers the need for innovation and the need to hard work during this time period. by having digital marketing boards in our maximize short-term ROI? You have been focused on building out retail locations. These digital marketing G. Corbin: We start with the recognition the digital and online connection with boards don’t just post the latest jackpot that we have to not just keep up with the the audience of lottery players. Can you amounts. They give us the ability to change times but be ahead of the times. Our players speak to how that will unfold over the the message to appeal to a specific consumer expect technical options, a user interface next nine to 12 months? Also touch on the interest at a specific point in time. We and overall UX that competes with the likes importance of integrating those strategies may want to announce a new product or of Netflix and other tech leaders. We’re with your focus on helping your retailers promotion. We can collaborate with the very appreciative of our gaming partners succeed too. retailer on a shared co-op promotion. for recognizing that and for embracing G. Corbin: When we first started our online The digital message board makes it easy to the opportunity to meet that challenge. lottery platform, a huge concern for us was instantly broadcast a message to the in-store We depend on our technology partners to to make sure that the additional sales that customers across thousands of retailers. It keep us competitive, to help us be the best accrued from the online channel did not requires an incredible coordination between partners to our retailers, and to exceed the negatively impact retailers. What we found the lottery, the scratcher vendor, the paper expectations of the modern consumer. and what I think all iLottery states have vendor for the digital products, and the Whatever technology we deploy, it needs to found is that as our online sales grew, so distribution between our warehouses, our have a high ROI. What has been done well did our retail sales. They are synergistic, vendors’ warehouses, and delivery straight in Georgia is to balance the need for innova- mutually reinforcing. Additional channels to our retailers. The skillful execution on tion, the need to take risks, and the keenness mean additional consumer touch-points the part of each member of the supply to manage that risk and minimize waste. which create more consumer awareness chain allowed our sales team to focus on of our brand. They see it in one area, they specific niche items and encourage and At the Georgia Lottery we’ve got a bottom- get excited about it in another, and they assist our retailers via phone when they line mission and that is to maximize may end up actually playing the lottery could not be there in person. And in spite revenues for the students of Georgia. We in a third area. Our retailers understand of these constraints, the product was to the want to be aggressive and progressive, but that our online lottery growth has just retailer before the retailer even needed it. we need to be sure that we’re doing it in the helped brand the product and bring in new The systems and effective execution on the most responsible way. We’re always keeping consumer groups, and this results in more part of each member of the teams enabled our eyes on the next responsible opportunity sales and store traffic at retail. preordering and re-stocking so the product because if we’re not constantly looking was there when the consumer was ready to with an open mind, we have short-changed The online audience connection also the students of Georgia. We are thrilled gives us this incredible opportunity to buy, and to meet the increase in demand that came in April, May and June. to always be innovative while at the same do cross-promotional and marketing time appreciating and respecting the great activities that benefit our retailers. You How are digital marketing boards different lottery products that have worked so well for might have a scratcher that you buy at from digital signage? so long. We are thankful for the incredible retail and you have an online component G. Corbin: Digital marketing boards enable scratch ticket products that have provided where someone goes online to register in a us to vary the messaging as we like, and entertainment for our customers and second-chance drawing. They learn about to change out the messaging as frequently allowed us to keep sales where they have your online offerings, and you have the and as quickly as we like. So we are com- traditionally been. ability to do promotions online that drive municating the right message to the right players back to retail. All this cross-selling How do we drive ongoing growth of audience at just the right time. Of course, instant scratch-offs? not only drives sales, it enhances the player our insight into exactly what we want to experience. This 360-degree lottery playing express and where and when we want to G. Corbin: I think we need to continue to be ecosystem makes it more fun and engaging express it, is improving with each passing creative. We need to stay in touch with our for the players. week. But the creation of the message and consumers and understand what they like Like Lottery, retailers are under pressure the mechanisms that send the message to the about a specific game. We need to figure out to modernize. It seems like we should digital marketing boards in the retail store is what our players like so we can prepare for work together to achieve this common all done right in our own offices. the next six months and 12 months while goal. How might Lottery take this oppor- also staying in touch with the day-to-day so Continued on page 75 18 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020
PGRI INTERVIEWS GARY GRIEF Executive Director, Texas Lottery TEXAS LOTTERY CONTINUES TO RIDE THE INNOVATION TRAIN Texas. Consequently, that’s the pro- PGRI INTRODUCTION: The Texas Lottery has been on an aggressive porationate attention we can give those track of modernizing the in-store player-experience and retail support products as we continue to shift our focus functions, expanding the retail POS footprint, and investing in innovation. to the products working best for us, and Some things never change. that’s the scratch ticket product and the daily draw games. The pandemic has resulted in lots of Paul Jason: What are some of the impacts Just last year, we set an all-time record for restrictions that maybe caused more of the pandemic on the state of Texas total lottery sales of approximately $6.25 people to turn to Lottery for fun and generally and on the lottery specifically, billion. Our latest fiscal year just closed recreation? Maybe there is a potential to and how did you respond to that? on August 31st and we concluded the year get even more creative and innovative to GARY GRIEF: Texas really took a double with sales slightly above 6.7 billion. That appeal to lock in the playership of these hit to its economy. We had the state and sales increase of more than $450 million new consumer groups and appeal to an all of retail shut down except for what were was achieved on the back of the scratch even broader variety of playstyles and deemed essential services. At the same ticket product. The annual increase in motivations? time, the oil and gas industry completely scratch tickets was actually over $710 million, allowing us to make up for the G. GRIEF: I agree. And I think we will collapsed. There was even the most ex- retain a large portion of the player groups traordinary phenomenon where oil prices $260 million decrease in jackpot draw game sales due to the decline in Mega who may have first come to Lottery during actually went to zero. Other than sales tax the pandemic. They’ve recognized the collections, oil and gas taxes are the biggest Millions and Powerball. Scratch tickets now comprise 82% of our total sales. Thus, ease of purchase, the ease of redemption, source of government revenue in the state the entertainment value. YouTubers are of Texas. scratch tickets are obviously where we will continue allocating the bulk of our certainly familiar with the YouTube Thankfully, all 20,000 plus of our lottery resources because that is where we see the personality known as Mr. Beast. Mr. Beast retailer locations around the state were growth coming from. reached out to one of our retailers recently, deemed essential services by our Governor HEB Grocery, and made a purchase of $1 so they remained open throughout the Our $50 scratch tickets this year broke million of one of our $50 scratch ticket pandemic. Over the last two weeks of every record and were one of the strongest products. Mr. Beast’s team scratched March and the first two weeks of April, we growth products we’ve ever had. We have those $1 million worth of tickets “live” on initially saw sales drop by roughly 15%. already laid the groundwork to introduce a YouTube, and created a compelling produc- But sales snapped back very quickly and $100 scratch game in the near future. We tion of the scratching of those tickets. This started to really take off on the scratch think there’s a serious market for that price video quickly shot to #1 on YouTube with ticket side of our business by the third point and, of course, the value proposition millions of viewers, garnering the Texas week of April. This occurred with our for the player must be slightly higher. Our Lottery a tremendous amount of exposure. daily draw games as well. Since that time, challenge is to continue to create unique This is just an example of the lottery’s we have been exceeding last year’s record prize structures and experiential prizes that potential to connect with the next genera- setting sales pace for scratch tickets by make our games fun and attractive for our tion of consumers, people who just want a more than 30% every single week,and and players at every price point. story to go with their playing experience. scratch ticket sales never dropped below Powerball and Mega Millions now each We need to connect our product with a $111 million a week during this time. comprise about 2% of our total sales in compelling story – and connect all that with our audience via social media. 20 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020
PGRI INTERVIEWS The Texas Lottery started years ago to the product available to players who are revenue we can generate for good causes. shift a larger and larger portion of your ad not playing at retail. That fills a void in Dollar General, who previously did not spend into digital platforms. This in spite our state, especially during the pandemic. carry lottery products, now carries both of the fact that you don’t actually sell The brick-and-mortar retailers that have Powerball and Mega Millions through our lottery tickets online. Have you been able partnered with couriers in our state are in-lane Quick Ticket product. Family to measure the ROI of that investment? far and away the top sellers of lottery Dollar, another new lottery retailer, G. GRIEF: We have a very deep respect for draw games, and some are moving now along with Kroger, who has been selling the state in which we conduct business. to provide the scratch ticket product via traditional lottery for years, will both We operate in a conservative state; in courier as well. These retailers and their soon be adding the Quick Ticket product fact, an anti-gambling state. If allowing courier partners have done a remarkable job in the same manner. HEB, on the other a lottery in Texas were considered today, in acquiring and marketing to their players, hand, a preeminent Texas-based grocery I’m not sure the votes would be there in , distributing the product and redeeming store chain that has been supportive of the Texas Legislature. My view is that prizes without issues. A side benefit to the lottery for many years, wanted to take a the Legislature tolerates the lottery but good causes the Texas Lottery supports is different path to providing lottery products certainly does not embrace it, and there are the investment the couriers have made in in-lane. Working with the NASPL API probably mixed feelings about the notion promoting the Texas Lottery brand. From initiative, HEB has implemented the first of actually promoting it. As a result, Texas what I have seen, they invest heavily in Receipt Ticket lottery product in the US has one of the lowest per cap ad spends in digital and print advertising in our state. for Powerball and Mega Millions in all of the country for lottery. I wonder from time Again, couriers are not affiliated with or their stores, meaning that the customer’s to time what we could accomplish with just even licensed by the Texas Lottery. They lottery ticket is actually printed on their an average advertising budget. When our have simply partnered with traditional grocery store receipt. Initially the Receipt budget was dramatically cut several years brick-and-mortar retailers. Ticket product was made available in the ago, we quickly realized could no longer business centers at all HEB locations, but Of course, we are aware of how they recently they have begun rolling out the afford the cost of statewide traditional operate and do our best to ensure that the TV or radio campaigns. So we looked implementation in actual checkout lanes. appropriate interest groups in Texas state Both the Quick Ticket and Receipt Ticket instead at digital media such as Spotify, government are informed about the activi- Pandora, and YouTube, and how we might had to undergo rigorous scrutiny by MUSL ties of couriers. and meet all the requirements for valid and create spots efficiently and rapidly to hit timely topics and coincide with top-of- I’m asked from time to time about the secure wagers. mind memes. And we lowered costs by likelihood of the Texas Lottery ever being All of these initiatives– these are just producing some of the spots in-house with allowed to sell lottery tickets over mobile precursors and part of our long game our own talent at the lottery. That has also devices. I don’t foresee that in the near to ultimately getting the scratch ticket unleashed some of the creativity of our future due to the conservative nature of our product in-lane at all of these locations. I’ve team by collaborating with our advertising state, but even if the Texas Lottery were already challenged our three scratch ticket agency to forge new approaches. That allowed to enter this maret, one concern print vendors, Scientific Games, Pollard, collaboration parlayed Austin’s status as the is the fact that state agencies like the and IGT, to come up with an economical, music capital of the world to loop lottery in Texas Lottery are subject to open records efficient methodology to have the scratch with socially-distant virtual concerts. These laws. That means our player base would ticket offered in-lane so that it can be seam- have had tremendous viewership via social become subject to open record requests lessly integrated right into the checkout media. So we are finding more cost-effec- and this would likely have a chilling effect process, and some of the preliminary ideas tive ways of attracting attention and eyes on players being willing to provide their I’ve heard are very exciting. That’s the end on our products and our mission to support information. The courier model makes the game for us – making it super easy for the good causes. The lack of an adequate products available to the consumer without shopper to play the lottery in a seamless advertising budget has forced us to become putting the Texas Lottery in the uncom- manner during the check-out process in more resourceful and the direction that fortable position of being compelled to these large chain stores. This will ulti- has taken us in just happens to appeal to a disclose the names of the online players as mately lead to ubiquitous access to lottery younger generation, an additional benefit that information is not under our purview. for all consumer groups, a key component for our long-term sustainability. You are a leader when it comes to innova- of our long-term growth strategy. How you are utilizing the courier model in tion and modernization at retail. How has That expansive view towards positioning Texas? retail modernization transpired in general for the future and reimagining the way we but also how has it been impacted by the measure outcomes must involve a form of G. GRIEF: First, one must understand challenges of the last few months? that the Texas Lottery has no relationship rethinking KPI’s. If it’s not sales, what are with the lottery couriers in our state and, G. GRIEF: Innovation has been formally the key performances indicators? in fact, has no purview over their business instilled as a core value for our organiza- G. GRIEF: It is a number of things. It operations. What courier companies tion for many years and every decision certainly includes sales, just not a myopic do is comparable to “Uber Eats” in the we make includes an analysis of how view of short-term sales. The focus is restaurant business. They simply make that decision will impact the amount of instead on long-term sales and sustainability. Continued on page 67 22 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020
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