WORKING TOGETHER TO BUILD A SUSTAINABLE FUTURE FOR LOTTERY AND GOOD CAUSES
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JULY/AUGUST 2020
www.PublicGaming.com
WORKING
Contact your Sales Rep for more information.
TOGETHER TO
BUILD A SUSTAINABLE
FUTURE FOR LOTTERY
AND GOOD CAUSES
October 13-15 in Nashville
WILLY WONKA & THE CHOCOLATE FACTORY and all related characters and elements © and ™ Warner Bros. Entertainment Inc. (s20) © 2020 Scientific Games Corporation. All Rights Reserved. Co-hosted by the Tennessee Lottery
POST-COVID-19 LOTTERY:
THE MOVIE
NASHVILLE 2020
Co-hosted by PGRI and the Tennessee Education Lottery Corporation
Join us on October 13 – 15 at the
Sheraton Hotel in Nashville
NAVIGATING
THE FUTURE
of staying ahead of the game. At GLI, our team is committed to helping you mitigate risk by providing the
Post-COVID-19 Lottery: The Movie
Neither conference nor webinar, Post-COVID-19 Lottery: The Movie is both,
valuable information and education needed to find your best path forward for lotteries and iLotteries. We’re and aspires to be the Gaming Theory of Everything. Building a “Theory of
here to be your partner, offering over 30 years of expertise as you face today’s new hurdles in the world Everything”, at least in the Brainiac world of physics, has been shown to be not
entirely possible. But the aspirational goal and the journey itself promises to
OF GAMING
yield a wealth of insights that place our industry-specific issues into the broader
context of global trends and vision-driven momentum to meet the future head-
on ... with gusto, confidence, and actionable strategies. All are invited to be a
part of Post-COVID-19 Lottery: The Movie.
Nashville 2020 In Nashville on October 13-15, Post COVID19 Lottery: the Movie will be live-
Co-Hosted by the Tennessee Lottery streamed and video-recorded for maximum impact.
Join us on October 13 – 15 at the Follow PublicGaming.org (our conference website) or PublicGaming.com (home-
Sheraton Hotel in Nashville! page and news website) for updates and to follow the production process as we
toil to create a new kind of experience, digitally transformed to not just enable but
n Event Info & Details: www.PublicGaming.org
enrich and enhance the joy of working and striving together. Join us in person
Nashville or join us online for the celebratory Premier of Post-COVID-19 Lottery:
n News website: www.PublicGaming.com The Movie. Either way, let’s come together to re-imagine the collaborative process
and continue to build a bright future for Lottery and good causes.
n View video-recorded presentations: www.
PGRItalks.com We look forward to seeing you in Nashville!
n e-mail: Pjason@PublicGaming.com
PGRI
LIVE LOTTERY
gaminglabs.com ENGAGEMENT HUB
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© 2020 IGT. The trademarks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors.
3 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020
CONTENTS
J U LY / A U G U S T 2 0 2 0
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
10 14 President
Susan Jason
sjason@publicgaming.com
Brand and Design
Dan Eggers Design
Honored Founders
Doris & Duane Burke
Contact Information
T: +425.449.3000
F: +206.374.2600
For email address changes,
10 The iLottery Evolution Continues at the Michigan Lottery subscription requests and
Deputy Director Shannon DeHaven provides updates and future plans requests to be placed on
our e-Newsletter distribution
14 iLottery Poised to Explode onto the U.S. Lottery scene list, contact:
sjason@publicgaming.com
Synopsis of panel discussion with … PGRI, Inc.
Stephanie Weyant, Dep. Exec. Director, Marketing and Product, 218 Main Street, #203
Pennsylvania Lottery Kirkland, WA 98033
Doug Pollard, Co-CEO, NeoPollard Interactive and Pollard Banknote PublicGaming.com
Charlie McIntyre, Executive Director, New Hampshire Lottery
Subscriptions
Rhydian Fisher, CEO, Instant Win Gaming (IWG) Annual Public Gaming
Shannon DeHaven, Deputy Director Digital Operations, Michigan Lottery International magazine
subscription rates:
18 COVID-19 and the Lottery Industry United States: $145 USD
From Lotteries to Vendors, the Pandemic provides opportunities and Canada & Mexico: $160 USD
All other countries: $225 USD
challenges
Public Gaming
19 Is iLottery the Key for States Needing International Magazine
to Fill Budget Shortfalls? Published six times a year and
distributed to readers all around
the world. Electronic version is
24 Staying in Touch: COVID-19 Challenges
e-mailed and is also available on
Lotteries to Maintain Communication our news website:
PublicGaming.com
26 Coronavirus Redefines Retail:
Digitization of the in-store shopping July/August 2020
Volume 47, Issue 4
experience accelerates the adoption
©2020 all rights reserved.
of new technologies, processes, and Public Gaming Research Institute
behaviours cISSN: 1042-1912
All the above features were authored
by Lottery Industry Leader Jim Acton
4 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020
5 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020
FE ATU R E D A RTICLES
Visit Our Family
30 8 Ways to Strengthen the Lottery
34
Of Websites
Entertainment Brand
Scientific Games
34 Collaborate to deliver best-in-class
Product Transformation PGRI Interviews PublicGaming.com
industry news & information
Fotis Konstantellos, Senior VP, Digital
Sales, INTRALOT PGRITalks.com
videos of conference presentations
36 Las Vegas: The Great Social Experiment 38 PublicGaming.org
JoyceLynn Lagula, Design Director, Wilson PGRI conference information
Associates, www.wilsonassociates.com
PGRIDigitalLibrary.com
45 magazine archive of past issues
38 Leading the Charge in Helping Casinos
Redefine Safety and Convenience PGRIDirectory.com
Post-reopening, cashless and mobile listing of lotteries and vendors
systems technology can advance the player
experience IGT 40 PGRIAwards.com
Showcase of industry honorees
40 Without Live Sports, Inspired recognized by the
Entertainment Fills the Gap Lottery Industry Hall of Fame
Virtual Kentucky Derby Attracts Millions of PGRI Lifetime Achievement Award
Viewers, Worldwide Attention Sharp Award for Good Causes
50 Lottery Industry Statesman
42 Using technology to reinvent Retailer 42
and Stateswoman Award
Solutions Embarking on a new era
Rebecca Hargrove Mentorship Award
INTRALOT SA
Collaboration Award
44 COVID-19 When Business as Usual is
Anything but Usual Scientific Games
Subscribe To Our
Free Digital Newsletters
D E P A R T M E N T S Receive our daily newsletters at no
charge, published 5 times a week
to bring you the latest breaking
8 From the Publisher
news in the global lottery industry.
Paul Jason Send an e-mail to:
28 MUSL NEWS sjason@PublicGaming.com
with “add to Daily Digest list”
Challenges in 2020 Provide Opportunities in 2021
in the subject line.
46 Scenes from PGRI SMART-Tech Miami March 3 – 5, Photo Collage
51 Scenes from WLA/EL Marketing Seminar London February 5 – 7,
Photo Collage
54 Pulse of the Industry
Synopsis of Recent Industry News
6 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020
POST-COVID-19 LOTTERY:
THE MOVIE
NASHVILLE 2020
Co-hosted by PGRI and the Tennessee Education Lottery Corporation
Join us on October 13 – 15 at the
Sheraton Hotel in Nashville
Post-COVID-19 Lottery: The Movie
Neither conference nor webinar, Post-COVID-19 Lottery: The Movie is both,
and aspires to be the Gaming Theory of Everything. Building a “Theory of
Everything”, at least in the Brainiac world of physics, has been shown to be not
entirely possible. But the aspirational goal and the journey itself promises to
yield a wealth of insights that place our industry-specific issues into the broader
context of global trends and vision-driven momentum to meet the future head-
on ... with gusto, confidence, and actionable strategies. All are invited to be a
part of Post-COVID-19 Lottery: The Movie.
Nashville 2020 In Nashville on October 13-15, Post COVID19 Lottery: the Movie will be live-
Co-Hosted by the Tennessee Lottery streamed and video-recorded for maximum impact.
Join us on October 13 – 15 at the Follow PublicGaming.org (our conference website) or PublicGaming.com (home-
Sheraton Hotel in Nashville! page and news website) for updates and to follow the production process as we
toil to create a new kind of experience, digitally transformed to not just enable but
n Event Info & Details: www.PublicGaming.org
enrich and enhance the joy of working and striving together. Join us in person
Nashville or join us online for the celebratory Premier of Post-COVID-19 Lottery:
n News website: www.PublicGaming.com The Movie. Either way, let’s come together to re-imagine the collaborative process
and continue to build a bright future for Lottery and good causes.
n View video-recorded presentations: www.
PGRItalks.com We look forward to seeing you in Nashville!
n e-mail: Pjason@PublicGaming.com
PGRI
LIVE LOTTERY
ENGAGEMENT HUB
From the
Publisher
I
nsofar as these continue to be strict social distancing standards will do it on the content side. Our concept
interesting times, we want to still be observed, but we hope that won’t is that the content needs to be more
channel our energies towards discourage too many colleagues from purpose-driven to deliver a more cohesive,
building a sustainable future. We attending. There’s that. integrated narrative and ultimately a more
all know about the bright-spots of Next, we want to take this opportunity engaging and rewarding UX, i.e. more like
increasing instant ticket sales and online to take a giant leap, pushing as hard as a “movie”.
iLottery. That is why this issue includes we can to forge a future that will be even We need your help to do this, to create
fabulous articles that speak at length to better than the past. That begins with Post COVID19 Lottery: the Movie
opportunities to build on those. live-streaming the event, and archiving and look forward to our industry-wide
This is also a time to take a deep breath the production in real-time to make it collaboration!
and appreciate the epochal moment available for instant reviewing. Of course, I want to thank Shannon Dehaven,
we live in, and the serious impacts that that is already being done by others as Stephanie Weyant, and all editorial
our current actions will have on future we speak. Insofar as there are varying contributors to this issue. I also want to
generations. That’s true in the big-picture, degrees of quality of production and user- thank Sarah Taylor and Team MUSL for
and it’s true for all the component parts interface, we have the opportunity to learn the creation of a new feature to update us
of that picture – like the lottery industry. from the best and improve on that. It is all on the initiatives and leadership of the
The pre-COVID19 world may have the content side of the current webinar Multi-State Lottery Association. I want
allowed us time to wait and see how trends scene that holds the most head-room for to thank Jim Acton for the extensive work
would unfold and then try to be the “fast- improvement, and we will apply ourselves he did to facilitate, write, and edit so many
follower” who watched as others blazed the to raising the quality of content. One of the articles in this issue. It has been a
trail and incurred the cost of a learning obvious low-hanging-fruit observation: pleasure to work with Jim and I appreciate
curve. There was typically a chasm of time Digital A/V media are completely his collaboration and friendship. And
that separated the “early adopters” from different than the medium of a live stage lastly, I want to thank our new designer,
mass-market embrace of new technologies performance. What may be an engaging Dan Eggers, for creating the new look and
like decentralized computing, the internet, session in-person with live-on-stage action feel for the magazine (the last four issues)
the Mobile as primary personal digital seems to drag when transposed to the – I hope you like it!
device, etc. That allowed some time “hot medium” of TV or its proxy, the
to catch up. One of the effects of the desk-top computer. Just like iLottery It’s on! PGRI Lottery Expo will be
current crisis is to reduce that lag-time involves more than simply making off-line held October 13-15 in the Sheraton
between early-adopters and mass-market games available to the community of Downtown Hotel in the fabulous Music
acceptance. We no longer have the luxury online players, we need to realize that the City of Nashville, Tennessee. Check
of time to wait and watch and following user-experience (UX) at a live physical out conference website PublicGaming.
fast to catch up. We need to spend the conference is much different, and comes org or news website PublicGaming.com
time now to understand the big-picture with much different expectations, when for conference updates. We thank you
implications of current crises, discern delivered on digital platforms. But again, for your support and re-commit to an
how those will impact and shape our own the early pioneers of webinars have made industry that serves the interests of society,
world, and chart a course forward and act some excellent progress and we commend of good causes, of players and retail
decisively to shape a future that effectively them for stretching to build out the new partners, and of countless Lottery-sector
supports the goals of our stakeholders and platform of digital conferences, and thank stakeholders. We are thinking about you
Good Causes. them for the shoulders to stand on as we with a new sense of appreciation for the
endeavor to improve! great privilege of actually being together
PGRI Lottery Expo Nashville presents again in person – and sooner than later!
… drum roll … Post COVID-19 Lottery: So … Why do we call it a “movie”? Our
The Movie. What does that mean? First, aspiration is to use this moment to pivot,
we do not know what the world will look to modernize the way we spend the time
like in October. We hope that the number and money to collaborate and share
of new virus cases and other metrics will ideas, to reinvent the whole concept of
have subsided to the point where everyone “conference” in either physical meeting Paul Jason, Publisher
feels OK about getting on a plane to go or webinar form. We will do that on the Public Gaming International Magazine
to an in-person meeting. We expect that media/infrastructure side, and we will
8 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020
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iLOTTERY
EVOLUTION
CONTINUES AT THE
MICHIGAN LOTTERY
DIGITAL LEAD SHANNON DEHAVEN
PROVIDES UPDATES, FUTURE PLANS
In early March, prior to the nationwide response to the COVID-19 pandemic, Shannon DeHaven, MI Lottery
Shannon DeHaven of the Michigan Lottery spoke to the assembled lottery Deputy Director, Digital Operations
industry representatives at the PGRI Smart-Tech 2020 conference in Miami.
Michigan program – the entire online user
Shannon is the Deputy Director of Digital Operations for the Michigan Lottery experience from the registration experience,
and after more than six years working on the program and four years overseeing to marketing to games.
its success, she has become one of the country’s foremost experts in iLottery. The game experience is critical. Why do
A
some scratch tickets sell better at retail than
fter six years working on the certainly set a standard for the industry. others? The look of the ticket, call outs, how
development, launch and The lottery was headed by Scott Bowen, the winning experience is unveiled to the
operation of the online sales now SVP of Business Development for player. It’s similar for iLottery in that all the
program for the Michigan NeoPollard Interactive, and Shannon was a details and attributes determine the success
Lottery, Shannon DeHaven has member of the digital team. of the game.
heard all manner of skepticism about the “In 2014 when iLottery launched, “Digital has a very different user experience
lottery’s program. Michigan Lottery had 174 employees and than a traditional product. The retail
• It will wreck the retailer network produced $742.8 million for Michigan’s location lends itself to a more extended play
K-12 schools. By all measures, we were a style,” Shannon said. “The players purchase
• Players won’t want to play a digital
successful lottery,” she said. “Today, the their tickets, go home, wait for the drawing.
version of a ticket
lottery has just a few more employees and Or they scratch a ticket in the store, in their
• The payouts are too high to make money contributes more than $1 billion to the car or at home.
But to use current lingo, Shannon “comes state’s schools. In addition to incremental “But with digital, the play is on the go.
with receipts” which show that Michigan’s lift from iLottery, we continue to see retail And it’s a quicker pace. These differences
iLottery journey has been a commercial sales grow. I personally feel expanding our mean offering a higher payout for digital
success for the lottery and retailers, and sales channels was critical to the lottery’s products allows us to give the same
an economic boon to the state. This success.” extended experience to our players online.”
success has certainly quieted the critics, Like any success
said Shannon, Deputy Director of Digital story, there are
Operations. many chapters
“It’s understandable – people have a natural with ups and
fear of the unknown,” she said. “There can downs, positives
be conflict between the need for certainty and negatives but,
and the need for change. ultimately, results
that allow the
“But here we are nearly six years later, and
business to continue
the Michigan Lottery was able to return
to flourish. While
more than $1 billion to good causes in
others might want
FY19, and iLottery played a role in that
to focus on payouts
number. And we expect that to only grow
and product mix,
into the future.”
Shannon thinks
While not the first state to offer iLottery there is an easy
(MN Lottery holds that honor, although explanation for
that program no longer exists), Michigan the success of the Michigan Lottery’s iLottery Net Gaming Revenue
10 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020FOLLOWING A down silos”
MARKETING ROADMAP between in-store,
digital and
As a marketer for most of her career,
mobile to focus
Shannon understands the importance of
on the lottery’s
providing players and non-players with the
most important
necessary information to move them to the
business
digital space. The journey to purchase is
goal – increase
different for digital players than brick-and-
contributions
mortar players, and the lottery is constantly
to good causes.
addressing those differences.
This is where
“We don’t have nearly 11,000 retailers to Shannon and
help sell our products online; foot traffic and other executives
point of sale marketing support is critical at the lottery,
for traditional businesses,” she said. “When representing the
we launched the iLottery program, we had different areas
experience, making it easier for players to
to consider how reaching online players within the operation, put together a plan
fund their accounts and providing a faster
would be different and what the impact on that would benefit all stakeholders of the
withdrawal option.
retail could be. Our goal was to reach a new organization.
audience. To achieve this, we started by The success of these marketing programs is
“We reviewed the user experience from both
allocating funding to digital advertising to easy to track.
sides of the business,” she said, “and started
drive traffic directly to the Michigan Lottery “We expect to send nearly $3 million in
to define how we would leverage retail
website and our mobile apps. cash outs alone to retail locations in FY20,”
outlets to drive traffic online and collect
“Digital media kicked off the user journey. player information, and vice-versa. We then Shannon said. “That’s $3 million that
We needed to make sure that we were created immersive experiences that allowed players can use in our retail locations. And
driving traffic to the website but then once players to naturally flow back and forth we have given players who previously only
the player got to the website, we relied on between the channels at their convenience. bought at retail a reason to open an online
our platforms to act as our online storefront. By doing this, we were able to double the account. Additionally, these efforts are
Much like point of sale that informs players number of retail players logging into their helping us foster our relationships with our
and clerks that answer questions at retail, online accounts on a daily basis and triple retail partners, giving them opportunities to
the website and mobile apps needed to be the number of digital players logging into benefit from our online traffic.”
informative and accessible to our players.” their accounts daily. We were then able to
Fast forward to 2018 and the lottery fully expand our marketing efforts to each group. WHERE FROM HERE?
Lotteries are fully aware that how they build
optimized its website, providing pertinent “As part of our overarching marketing
their digital footprints is critical to their
information to players and allowing the strategy, we gave players a reason to go from
economic futures. Loyalty, in all sectors,
lottery to more easily update the site. The in store to online but more importantly have
has moved online and has been accepted
latter was among the biggest changes as provided them solutions that fit their needs
by players. It is only a matter of time before
the lottery could now more frequently and wants, giving them a value proposition
commerce also follows this path.
update content, easily launch new games, to sign up for an account.”
include CRM capabilities, and deliver more “How we evolve our online games is a big
An example of marketing and promotions
personalized offers to players. question on our minds these days,” Shannon
efforts geared to both sales channels is the
said. “What play mechanics should we be
And players responded favorably. lottery’s daily Spin to Win. Introduced in
looking at? How can we enhance the prize
“We have been able to improve our players’ 2018, this promotion allows players to log
tables while also staying within regulatory
experiences with our learnings,” Shannon into their online account daily, spin a wheel
and responsible gaming guidelines? How
said. “We can serve bonuses to iLottery and win either free play online, an in-store
can we use advanced technology to provide a
players based on their unique behavior. coupon or entries into a monthly drawing to
more immersive experience? This is not only
Some of the bonuses might be working win a cash prize.
a challenge for the Michigan Lottery but
towards converting web visitors to online The Michigan Lottery also built for the entire industry. How do we continue
players. Other times we are simply focused functionality within its iLottery program to evolve our most basic and traditional
on retaining our current players.” that allows players to purchase an Online products when society’s attention span is
Game Card at retail to fund their iLottery getting shorter and shorter?
RETAIL TO DIGITAL/ account. They also created a voucher that
“How we answer these important questions
DIGITAL TO RETAIL allowed their players to withdraw winnings
will help all of us determine the future of
The Holy Grail for iLottery sites is to engage from their online account and cash out at
online lottery sales. For me, I’m hoping
retail customers on both the digital and retailer locations. The efforts allow retailers
that one day soon, it will be as easy as a
the retail channels, and to do that without to receive increased foot traffic, a sales
Michigan player saying, ‘Alexa, buy me a
a negative impact on the retailer network. commission and a cashing commission,
Powerball ticket for tonight’s drawing.’” n
As Shannon puts it, they strived to “break all while Lottery is improving the user
12 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020“But which way do I go from here?”
““at depends a great deal on where you want to get to”
If you want to sell where people are shopping,
step through the purple door.
Abacus makes selling lottery in-lane easy, by enabling customers
to buy tickets at the same time as paying for groceries, fully
integrating into the retailers’ ePOS estate. Choose the right
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w : www.lotteryeverywhere.com
Solutions for innovators e : info@abacus-bv.comPGRI DISCUSSION
iLottery poised to
explode onto the through iLottery. And we expect that share
to increase going forward. Obviously, we
U.S. Lottery scene
need to re-calibrate our overall thinking
on what works and doesn’t work as more
lotteries go online, and best-practices get
refined over time.”
In early March, prior to the nationwide response to the COVID-19 pandemic, lottery Charlie will certainly find a kindred
industry representatives gathered at the PGRI Smart-Tech 2020 conference in Miami. spirit in Doug Pollard. As the Co-CEO
One of the highlights of the conference was an iLottery panel featuring some of the top of NeoPollard Interactive (“NPi”), which
public and private sector experts: powers the some of the most profitable
iLottery programs, Doug’s team has
Stephanie Weyant, Dep. Exec. Director, Marketing and Product, Pennsylvania Lottery
launched programs in Michigan, North
Doug Pollard, Co-CEO, NeoPollard Interactive and Pollard Banknote Carolina, New Hampshire and, through
Charlie McIntyre, Executive Director, New Hampshire Lottery a recent enhancement of its existing
deployment, another full iLottery solution
Rhydian Fisher, CEO, Instant Win Gaming in Virginia, in addition to a forthcoming
Shannon DeHaven, Deputy Director, Michigan Lottery program with the Alberta Gaming, Liquor
The following is a synopsis of the lively and enlightening discussion which took place
and Cannabis Commission. He sees
between panelists at the conference.
iLottery as not a “nice to have” but a “need
to have” for lotteries.
J
ust weeks after Stephanie Weyant variety of topics critical to the future of “The data is clear – we know this is going
served as moderator of the iLottery interactive platforms in the lottery industry. to deliver incremental sales, we know it’s
panel, the Pennsylvania Lottery going to deliver younger players, we know
Charlie McIntyre, who now oversees lottery it’s going to create convenience, and we
iLottery program soared past the AND sports betting in the Granite State,
$1 billion mark in revenue just before know we’re going to attract some people
believes that the results in New Hampshire who won’t go into a convenience store for
its two-year anniversary. In her opening – which offers a full iLottery program –
remarks in Miami, Stephanie explained whatever reason,” Doug said. “Retail is still
certainly support Stephanie’s point. While a really good space for lottery to be in and
why iLottery programs are critical for Powerball and Mega Millions sales have
keeping lotteries relevant in today’s we do a good job in it. We’ve got to keep
struggled nationwide this year, the New doing a good job. But iLottery is an area
increasingly technology-driven world. Hampshire Lottery has seen a surge of where if you want to get to those younger
“iLottery might represent incremental online play for the multi-state games. players, you have to provide online access.”
growth right now but I firmly believe “Our Powerball and Mega Millions year-
that it is also the future of our industry,” From New Hampshire to Pennsylvania
on-year sales have soared online – up 80% to Kentucky to Georgia to Virginia,
Stephanie said. “It is about staying relevant, for Powerball, 28% for Mega Millions,”
expanding the player base, expanding iLottery programs are becoming more
Charlie said. “All while we have seen commonplace across the lottery landscape.
points of distribution, reaching players the same in-store activity drops as other
where they are located, and meeting And the pandemic helped many of these
lotteries. So we know there are players programs attract attention and users. To
players’ expectations. We really don’t have who want to play these games, they just
a choice but to offer technology-driven maintain the momentum, lotteries will
don’t want to go to the stores to play. Most need to expand focus on interactive games
options to our players.” of us wouldn’t consider these traditional with entertaining winning experiences.
With that opening note of iLottery lottery products as internet products but
optimism, the panelists delved into a now we do 1/10th of our Powerball sales Rhydian Fisher, CEO of Instant Win
Gaming (IWG), knows a lot about both the
14 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020iLottery
Now is the Time to Stay Connected
Today more than ever, it’s vital to be where your players are, wherever they are.
Scientific Games’ portfolio of iLottery products lets your players
stay connected to each other and to the games they love.
Reimagine Next
© 2020 Scientific Games Corporation. All Rights Reserved.present and future of iLottery games. After For Pennsylvania, the tactic was inclusion colleagues, the data allows lotteries to make
all, IWG provides eInstant games to more – make the retailers feel like they are part informed decisions on how to reach players.
than 20 WLA/NASPL-member lotteries and of the solution, and the future. As head of “What’s interesting to me is how the data can
has been selected as a supplier to every U.S. the lottery’s marketing group and iLottery drive the game development process,” he said.
lottery offering eInstants. program, Stephanie tackled this from both a “What it shows me is how much we’ve been
“Today, it’s not about the number of game marketer and business person’s outlook. operating with one hand tied behind our
titles available to lottery players, but rather “We told the retailers that it was incumbent backs in the retail space. When we evaluate
the wide variety of game mechanics. There’s a on us to prove to them the program wouldn’t the success of an instant game in retail, we
huge difference,” Rhydian said. “And, there’s hurt them,” she said. “And I think that’s use an index. It’s the most blunt instrument
an opportunity for us to use things like multi- what we’ve done, by making
player games and progressive jackpots with
online instant tickets to revolutionize people’s
them part of some of the
decisions, giving them the
Data will surprise you and
experiences with lotteries. opportunities to earn money you have to be ready to
“People use the term ‘social’ around lotteries by referring customers and
selling a product, WebCash,
react to those surprises
without backing it up. We now have the
opportunity to start experimenting and for players to load money with action that enhances
innovating in our own space, working
on ways to make people feel like part of a
into their accounts. So we
provided them with things the games, the promotions,
community. As the laws start permitting, they could do at retail to
promote the program and be
and value to the players.
iLottery can allow lotteries to seize
opportunities to attract new players, and not a part of iLottery right from
be scared off by the challenges.” the start. imaginable, right? It tells you nothing about
Rhydian, whose games are featured in most the demographic. Why did people play?
Rhydian continued, “There is a player-base
out there that is not being served. They’re not iLottery platforms, and Shannon, who helped What parts did they like? What didn’t they
launch one of the country’s first and most like? We get none of those answers. Now
necessarily unhappy but they aren’t being we have the ability to do that, to extract
served. Adding these players to the customer financially-successful online sites, agreed
mix means incremental sales today, and that including retailers right from the start is more granular detail about why people play
critical. the games.
customers for the future as well.”
Rhydian: “The way that most of these Doug used the example of a game Charlie
lotteries have launched, including retailers launched in New Hampshire – Holiday
IMPACT ON Cheer. It was launched as an online game in
and asking their opinions, is exactly how you
BRICK-AND-MORTAR need to do it. Reach out to the retailers, give 2018 and made into a retail game in 2019.
Like discussions that are taking place in them a reason to transform, create products But the retail game included a code that
many jurisdictions, the topic of the impact of that will actually give them a reason to come provided free games of the eInstant Holiday
iLottery on brick-and-mortar retail sparked on board, and provide incentives that create a Cheer if players opened an iLottery account.
an animated and informative discussion. Any win-win for everyone.” “Now we could see who the players are,” he
lottery considering launching online sales Shannon: “Michigan is six years into said. “And we saw that they were younger
needs to weigh the impact on its retailer base iLottery and we are still adding ways to players, how often they came back, what
and the opposition it might face. How do include the retail network. We want and need features kept them online a little longer. Oh,
lotteries handle this debate? With the facts. them to feel good about the program. We’ll and on the retail side, it indexed at 124. That
“I remember walking into a retailer just after never get 100% of the network on board. was all great news.”
iLottery had been approved and the owner But if we show that we’re making an effort to Rhydian agreed with Doug’s take on data
says to me, ‘Mr. McIntyre, what are you include and help retailers, most will stay with and added that data also means you have to
going to do when these stores close? How are us for the long haul.” be ready to work hard.
you going to help these families?’” Charlie “Data is only as good as your ability to
said. “It was awful. DATA: react to it,” he said. “You have to be flexible,
“Fast forward to the following year, we HOW TO USE IT nimble, capable of producing promotions.
had launched iLottery and were the fastest Data will surprise you and you have to be
growing lottery for instant ticket sales, up The group homed in on the immense amount ready to react to those surprises with action
around 8% year-over-year,” he said. “The of data that is created from an iLottery that enhances the games, the promotions,
result of the iLottery launch was not even a program and, most importantly, how to use and value to the players.”
blip on the retail sales front. And by the way, it. Historically, lotteries have struggled with
implementing programs based on data they Rhydian talked about the Jungle Tumble
we took 5.5% of our profits and gave it back online game they launched in Pennsylvania
to the stores as part of an instant ticket sales have collected. Now, iLottery allows for
incentive program. So, ask any NH Lottery instant data collection and immediate contact last year which featured a cascading game
with players. mechanic. It was actually a scratch card with
retailer and most will say they have no issue the player matching 3, 4, and 5 symbols but
with iLottery.” For Doug and his NeoPollard Interactive it looked like you were matching symbols in
Continued on page 58
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© Copyright 2020 | Inspired Entertainment, Inc.COVID-19 AND
THE LOTTERY
INDUSTRY
FROM LOTTERIES TO VENDORS,
PANDEMIC PROVIDES CHALLENGES,
OPPORTUNITIES
By Jim Acton
Lottery Industry Consultant
INTRODUCTION
As the lottery representatives who attended the PGRI n What will be the revenue expectations for the new
Lottery Expo in Miami parted ways in early March, no one fiscal year and beyond?
could have imagined it would their last in-person meeting The passage of time will provide context to all these
for many, many months. By mid-March, many of us had issues. While many lotteries saw little revenue impact
retreated to the safety of our homes; handshakes and (and many, in fact, have enjoyed sales boosts as the
hugs were replaced with Zoom meetings. lottery provided the only available source of entertain-
With the nationwide spread of COVID-19 and the ongoing ment), others were hit hard and the pain will continue.
stay-at-home/safe-at-home orders given by many Gov- Some lotteries had to make the difficult decision to lay
ernors, life was turned upside down across the country. off employees.
The fortunate amongst us were only dealing with barking As the lottery industry slowly returns to normalcy, it's
dogs during video conferences. So many others have helpful to look back over the past few months, review
been either battling the COVID-19 virus themselves or what has taken place in the industry, and discuss
worrying about friends and loved ones. where the events surrounding the COVID-19 pandemic
For those in the lottery industry, the concerns were multi- have left us.
layered and the impacts were both small and large: In this special section, we will take a look at how the
n How would employees deal with working from sudden shift in lottery sales due to pandemic-related
home, many for the first time in their careers? stay-at-home orders has renewed the push for iLottery
n Do daily drawings continue with staff operating ball in many states. We will examine how some of the lot-
machines? tery industry's most important retail locations, deemed
as "essential businesses," are working to streamline
n Is it safe to allow lottery retailers to continue to sell and speed-up lottery purchases. And we’ll look at
lottery products? how lotteries have used social media and other online
n How will the vendor-lottery relationship change communications tools to stay in touch with critical
with few or no in-person visits? constituencies.
18 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020Is iLottery the Key for
States Needing to Fill
Budget Shortfalls?
I
n 2014, the Michigan Lottery became states laid off workers, including from the ranks of
the envy of the lottery industry when it lottery employees, including 60 at the Oregon Lot-
launched its iLottery e-instant platform. tery alone (13% of the lotteries workforce)
Lotteries watched, inquired and strategized In a radio interview in April, NY Governor said
about how they could add a similar platform that the state might have to cut education funding
in their states. Since then, other states have to address the state's budget shortfalls.
come on board, offering either eScratch tick-
ets or single day draw game sales - Georgia, "I said kiddingly to a legislator, 'This is the easiest
Kentucky, Pennsylvania, New Hampshire, Illinois, budget we've done. There's no option. The num-
North Carolina and North Dakota. On July 1, ber is zero," Cuomo said. “We have no money."
Virginia launched eScratch and single ticket/same- When we look at iLottery during these difficult
day draw game sales. times, we might just be seeing the future of the
But what happens now? Will states continue to lottery put on hyper-speed.
slow-walk iLottery, even as they fast-track the
process of licensing sports-betting operators? Will GEORGIA, KENTUCKY iLOTTERY
lotteries be handcuffed as they look to modernize SALES SOAR; RHODE ISLAND
their operations, broaden their customer base and LAUNCHES FULL iLOTTERY
increase revenues? Or now, after months of vary- For both the Georgia Lottery Corporation and
ing degrees of “stay-at-home” orders to help stop Kentucky Lottery, the stay-at-home orders associ-
the spread of coronavirus, have we arrived at the ated with the COVID-19 outbreak has been a fur-
tipping point where states realize that retail habits ther opportunity to leverage their digital offerings.
were already changing such that lotteries must Both lotteries enjoyed an excellent year for digital
offer alternative purchase options that no longer sales in 2019 but by mid-May 2020, respectively
require an in-person retail experience? were performing year-to-date +62% and +57%
As state budget chiefs and lottery directors have in digital sales vs. the prior fiscal year. This growth
nervously monitored there week-over-week sales, had accelerated through the end of 2019, when
there is one critical point – iLottery sales, where both lotteries invested more on digital advertising
available, never faltered. In fact, they skyrocketed and focused on player acquisition.
in most metrics, including new customer sign-ups Both Georgia and Kentucky lotteries excel with
and overall sales. draw-based-game digital offerings, particularly
Will it take ongoing sales challenges, profit goal Keno, for which the digital channel represents
stresses, and continuing revenue gaps across state 23% of total sales in Georgia and 15% of total
budgets to finally push more states to expand lot- sales in Kentucky. Offering the same Keno game at
tery offerings? If you consider where many states retail and digitally, rather than having a Keno-style
find themselves as the country steps forward and e-Instant game at a significantly higher payout,
back with economic re-opening, this certainly allows those lotteries to benefit from the higher
looks like the final straw: profit margin with a prize payout of 65%, and to
promote more cross-selling opportunities between
- New York state is forecasting a $15 billion rev- core players. Given all that has happened since the
enue decline across the state start of the COVID-19 pandemic, with many peo-
- West Virginia has been losing $9 million/week ple not leaving their homes, the long-term strategic
from its closed casinos alone planning of both lotteries and their well-timed
choice to focus more on the digital channel at the
- New Jersey, Pennsylvania and Ohio announced
beginning of 2020 resulted in positive momentum
limited spending and hiring freezes
and a strong first half of 2020.
- Virtually unheard of in the past, a number of
PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020 19iLottery
J
ust prior to the COVID-19 outbreak, apps in the U.S. and most recently installed ity in just five months,” he said. “This is the
IGT implemented plans to upgrade its latest advancements in player functionality leading lottery app solution in the market
the Georgia Lottery’s digital platform for the Missouri Lottery. Alongside wagering and the first to comply with Apple Guideline
and increase the marketing support features, players can use the app to create play 4.7. We worked closely with the RI Lottery
the company provides to the lottery. The slips for retail purchases, store their favorites team to develop and launch an iLottery solu-
results of that work played out March-May, numbers and identify themselves as player’s tion that provides a modern playing experi-
as digital sales accelerated significantly. In the club members. The app is fully compliant ence for RI Lottery players. It gives players
early weeks of May, sales are at +155% in tra- with new Apple requirements regarding user the choice and convenience to now play
ditional draw-based games, +115% in digital experience and native content for HTML5 Keno and e-instant games from their mobile
Keno and +330% in e-Instant compared to games. Players have welcomed the new app, devices, consistent with how they engage
the same time period in 2019. and it is number one among US iLottery mo- with other forms of entertainment and media
as well as purchase goods and services today.”
Built on the PlayCommand platform that
also supports sports betting in the state, the
IGT PlayDigital solution integrates the retail
and digital lottery experiences together with
a host of tools from purchase to play, and
it can all be done in a few touches on the
mobile app.
Drago added, “Rhode Island players now
have the added convenience of playing the
lottery from their homes and personal de-
vices. In collaboration with the Lottery, our
expert marketing team has created promo-
tions and loyalty campaigns to attract and
retain players that will ensure a successful
player engagement strategy to drive revenues
for the RI Lottery.”
All three Lotteries are powered by the IGT
PlayCommand platform and sophisticated
IGT’s iLottery mobile offerings for the GA Lottery, player account management system, which
KY Lottery and RI Lottery enables lotteries to control all administrative
functions such as payments, player account-
“It’s exciting to see our team’s efforts making bile applications based on app store reviews. ing, marketing campaign management,
a difference in Georgia. From the new games Marty Gibbs, interim President and CEO of CRM and responsible gaming controls
that have been developed for the market to the the Kentucky Lottery, said, “We are delighted for players. The team of digital marketing
engaging promotions and loyalty campaigns to have launched our new mobile app. We experts help the lotteries improve results by
our expert marketing team has rolled out, it’s expect the expanded functionality and ap- using the powerful reporting tools available
rewarding that it has resulted in a positive out- pearance to help us continue to bring value, to analyze data that is turned into actionable
come for our customer,” said Enrico Drago, convenience and the best entertainment to insights that drive the day to day digital busi-
SVP, IGT PlayDigital. our players.” ness strategy.
Similarly, the Kentucky Lottery had improved In late April, the Rhode Island Lottery “There is nothing more satisfying for the
its focus on iLottery and had started launching launched a new mobile experience that IGT PlayDigital team than to help our
new IGT e-instant games that offer increased enables players to register and play Keno along customers achieve greater results for good
value to players through higher prize payouts. with a catalog of exciting e-instant games. causes through the addition of new prod-
Sales have improved significantly, from +37% Players can register for free, create a digital ucts and services,” explained Enrico Drago.
in total year-to-date digital sales in mid-March wallet and have winnings under $600 auto- “Bringing modernized playing experiences
to +57% by the end of May 2020 (comprised matically transferred into their accounts. This and solutions to market during this time has
of +60% in digital draw-based game sales and enables the lottery to reach a broader range of further amplified the importance of a digital
+260% in e-Instants). players and offer a convenient way to play. channel as a growth strategy for lotteries. We
are committed to partnering with more and
In early May, the Kentucky Lottery launched As SVP of IGT PlayDigital, Enrico Drago more of our customers to introduce and re-
a new mobile wagering app built by IGT that leads the team responsible for creating and sponsibly grow the digital business over time
delivers a completely redesigned customer ex- delivering the PlayLottery suite. “Our team set in order to drive new revenue growth.”
perience. IGT has delivered 10 mobile lottery another record in delivering this functional-
20 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020PENNSYLVANIA ENJOYS support the Pennsylvania Lottery’s iLottery pro-
gram, with effective use of powerful CRM tools
AN ONLINE BOOST and bonusing programs that engage and retain
While the Pennsylvania Lottery just launched players. The growth of the iLottery program
its iLottery platform in May 2018, it has been in Pennsylvania since the program launched
an eventful two years – two RFPs for operators continues to surpass expectations. Based on total
(as mandated by the Commonwealth’s legisla- wagers, the $1 billion milestone reached just
tion) and more than $1 billion in revenue. The prior to its two-year anniversary makes Pennsyl-
Lottery has offered internet instant games from vania the most commercially successful iLottery
the start, and has added draw games to its online launch in North America to date.
lineup, including Mega Millions and Powerball, During its first full fiscal year of iLottery,
which have been available on that platform since Pennsylvania traditional lottery sales grew 7.2%
January 2020. over the prior fiscal year and Scratch-Offs alone
It has been a busy, eventful two years for the PA grew 5.9%. But the month of April is where the
Lottery. Lottery truly saw the potential of this technology
start to ramp up. iLottery play was up 35% com-
Add in the past few months, when at one point pared with March, with $89.2 million in topline
about 30 percent of the PA Lottery's roughly play and $11.4 million in gross gaming revenue
9,800 retailers closed because of COVID-19, PA (play minus prizes and promotions/bonuses).
Lottery executives were certainly happy to have The number of first-time players in April was
iLottery available to players. also up 45% over March, with nearly 15,000
“During this unprecedented time, we have new online players.
The PA Lottery’s iLottery
platform is available on
most devices
With stay-at-home orders still in place in PA
been seeing incredible growth in PA Lottery for most of May, that month then broke new
online play,” said Pennsylvania Lottery Deputy records. Online play in May was up 7 percent
Executive Director of Marketing and Products compared to April with over $95 million in
Stephanie Weyant. “We are setting new records topline online play and $12 million in gross
for play and first-time depositors, and breaking gaming revenue. May was also a record month
them just a quickly.” for deposits, with over 44,000 depositors.
Weyant added, “While we are happy to see a Powerball and Mega Millions sales online, which
growth in our online play, a majority of our sales are reported separately, are making up about six
still come from our traditional games. Further- percent of overall Powerball and Mega Millions
more, the increase in online sales is not enough weekly sales, as compared to about two percent
to offset the sales the Lottery has lost on the in previous months.
traditional side of the business since Mid-March.
Just to put it in perspective, an estimated 70 per- These numbers can be largely credited to the
cent of our business comes from our Scratch-Off management of the entire game portfolio,
sales. So, it’s our traditional products that remain delivery of exciting iLottery content to the mar-
the foundation of our business.” ket, and tools to enable retailer support, while
continuing with the strategic management of all
Behind the scenes, there are cross-functional traditional lottery products sold at brick-and-
teams of lottery, systems, marketing and digital mortar retailers.
experts at Scientific Games working together to
PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020 21iLottery
As North America’s first $1 billion iLottery
operator, the Michigan Lottery has achieved
results that show that sustainable growth and
performance is available through the iLottery
channel. States like New Hampshire, which
launched its iLottery program in September
2018, are proving that this model for success
can be replicated. Though New Hampshire is
a state with a population of only 1.3 million,
its per capita iLottery sales in its first year of
operations exceeded the standard set by the
Michigan Lottery by 75%.
During these past shutdown months, these
lotteries have shown the potential of iLot-
tery. Comparing April 2020 to March 2020
performance, both Michigan and New
Scientific Games offers a variety of games to PA Lottery iLottery players
Hampshire Lotteries saw improvement across
Amy Bergette, Vice President, Digital Con- offer full iLottery to it players, the company all major program KPIs. The Michigan Lottery
tent Studio at Scientific Games which oper- has since expanded its customer base to experienced a 40% increase in bets, or growth
ates the PA Lottery iLottery program, said, include lotteries in Virginia, New Hampshire of $51.7 million. Net Gaming Revenue was
"The past few months have seen a big uptick and North Carolina. Working with a diverse similarly improved with an impressive 46%
in online/mobile playership, but it has actu- range of lotteries has provided the company uptick over March. The New Hampshire
ally been an incredibly busy two years for all with a holistic view of what is happening in Lottery’s April 2020 results posted 49% higher
of us. iLottery brings game entertainment the industry. in terms of bets. This translated to a $580,000
directly to a player's computer or mobile de- increase in net gaming revenue – the single
"There is a pent-up demand for iLottery that
vice, so the ability to offer digital play has al- highest grossing month-over-month change
has been building among U.S. lotteries for a
lowed the Lottery to maintain a level of sales since the New Hampshire Lottery launched in
number of years,” said Scott Bowen, SVP of
continuity during the global COVID-19 September 2018. Player acquisition has seen
Government Affairs and Business Develop-
crisis and provide vital funding for programs highs that have only been outpaced by billion-
ment for NeoPollard and former Commis-
benefitting older Pennsylvanians.” dollar jackpots, with 105% and 45% increases
sioner of the Michigan Lottery. “Considering
in first-time depositors in Michigan and New
Bergette explained, “Our iLottery platform the continued impact of the COVID-19
Hampshire, respectively.
is built to handle an enormous volume of pandemic and the economic pressures facing
activity so we are equipped for the level of lotteries as a result, the need for iLottery has Across NPi’s customer network, overall per-
engagement we have seen in Pennsylvania. never been greater. Not only does iLottery formance at the close of May drew significant
It also provides the flexibility to integrate give players more options, U.S. lotteries with increases as compared to February, before the
powerful tools to enable important affiliate iLottery have experienced no negative impact impact of shutdown orders. There has been a
programs that incentivize retailers to partici- on retailers. In fact, the growth of iLottery significant influx of new players – growth, on
pate in the iLottery program by signing up in Michigan has occurred alongside a 45.5% average, of 227% since February. Similarly,
new players. Combined with highly effective increase in retail sales since iLottery launched bets grew by over 95% and Net Gaming
marketing campaigns that leverage today’s in 2014." Revenue saw tremendous improvement, with
best practices for player retention and en- an average of 120% higher returns.
gagement, this ensures continued growth for NPi’s iLottery programs for the MI and
“The recent and significant impacts of the
the program.” NH Lotteries offer mobile capabilities
which expand its accessibility to players global COVID-19 pandemic to the way
NPi’s CUSTOMERS SEE
lotteries traditionally operate and market
their products has emphasized
HIGH ACTIVITY LEVEL the need to accelerate digital
transformation and diversify how
Powering the most profitable iLottery lotteries engage players,” said
programs in the industry in terms of per Doug Pollard, Co-CEO, NeoPol-
capita return to state, NeoPollard Interactive lard Interactive. “As the industry
(“NeoPollard” or “NPi”) has certainly seen begins to focus on economic
an array of new players of all ages and back- recovery and rebuilding successful
grounds join the ranks of play-from-home retail partnerships, state lotteries
customers. While the Michigan Lottery was and governments will be well-
the first lottery to partner with NeoPollard to served to advance discussions on
22 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2020You can also read
