Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 2020

 
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Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 2020
SEPTEMBER/OCTOBER 2020

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       Looking
       Ahead
       and Shaping
       Our World for
       the New Normal
Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 2020
NAVIGATING
THE FUTURE
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Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 2020
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Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 2020
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
Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 2020
PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020   5
Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 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
Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 2020
Looking Ahead and Shaping Our World for the New Normal - 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
Looking Ahead and Shaping Our World for the New Normal - 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.

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                    Reimagine Next
              © 2020 Scientific Games Corporation. All Rights Reserved.
Looking Ahead and Shaping Our World for the New Normal - SEPTEMBER/OCTOBER 2020
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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