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// PUBLIC GAMING INTERNATIONAL // November/December 2016
have some issues post conversion, but they
have been far fewer than we ever expected.
The majority of those issues have been
driven by the unique nature of this pass-
through system. All three entities have
worked brilliantly together to respond
and resolve the issues quickly.
As we are developing our post-conver-
sion report that we will be sharing with
the industry, one of the points that will be
discussed is the need for better planning
from our team prior to even entering the
RFP phase. The structure of our existing
contracts with IGT should have been ad-
dressed ahead of time, so that as we went
through the process we could better handle
decision points in a timely manner. The
delay in making a decision on vending ma-
chines placed Arizona Lottery in a situation
where neither vendor could deliver up-
graded vending machines prior to the De-
cember/January timeframe, which is about
four to five months after conversion. That
delay caused us to lose draw functionality
from the vending machines for that four to
five month window. Had our team better
understood the impact of our existing con-
tracts prior to entering the RFP process, we
could have built a better plan from the be-
ginning to mitigate that loss.
Lesson learned for us, when entering
into these processes make sure you have a
full understanding of the scope you need
to address.
But overall our migration to the new re-
tailer terminals was a huge success. Since
our August 28 go live on Scientific Games’
draw game system, our draw game func-
tionality has delivered extremely well with
customers and retail partners enjoying
the benefits of the new technology. The
overall speed of service and ease of use for
draw games has improved tremendously.
Since the beginning of the fiscal year,
our draw game sales have increased more
than 38 percent. I am proud of this sales
performance and it sets the course for Ari-
zona Lottery growing net revenues for our
important beneficiary programs.
How have your Phoenix Sky Harbor airport
stores worked out?
G. Edgar:
We are so excited about
our third Arizona Lottery location that
opened in late August at Phoenix Sky
Harbor International airport. The space is
in a high foot-traffic area, and puts lot-
tery in a position to reach new customers,
like potential players from out of state. We
also see this location as a new opportunity
to convert light players or non-players to
begin playing lottery games while they
wait for their luggage in the Terminal 4
Baggage Claim.
This brand new location is completely
operated by the Arizona Lottery. It’s a
500 square-foot site that offers all prod-
ucts that the Arizona Lottery currently
has in market. There is seating in the
play area, and also a vending machine for
players looking to make quick purchases.
A full customer service team staffs this
location and is available to assist players.
We’re positive the presence of Lottery in
the airport will help increase our trans-
fers to important programs and services
in Arizona.
This new business venture is not only
a great way to expand our presence in
Arizona and increase the amount of dol-
lars we give back, but it is cultivating a
significant and positive relationship for
our state. This partnership with the City
of Phoenix and Sky Harbor International
Airport has already grown so much, and
we are excited to see how it develops in
the future.
Self-serve is a major trend. Consumers and
Retailers both like it. Typically, though, Lot-
tery is of mixed feelings because vending ma-
chines do not have the personal clerk-assisted
component that some feel is critical to the
effective selling of the lottery games. What
are your thoughts on this trade-off?
G. Edgar:
Arizona Lottery has em-
braced the use of vending machines as a
tool to reach players that prefer that abil-
ity to interact with our products. It has
also provided a good tool that doesn’t in-
crease labor cost for our retail partners.
Arizona Lottery is expanding our use of
the vending machines because we believe
it is part of a good mix of customer tools
to reach our players and service our retail
partners. Our sales through vending back
that decision.
The key is a balanced approach. We
have almost 3,000 retail partners. When
we complete the vending conversion we
will have 1,000 vending machines in mar-
ket, so about 1/3 of our partners will have
vending capabilities.
Over the course of the next year we will
be looking at opportunities to expand our
use of vending to develop new retail rela-
tionships into locations that are not able
to support the traditional customer ser-
vice sales model.
While we are believers in developing
exceptional customer relationships, we see
vending as tool to achieve that objective.
The partnership with the Arizona Cardinals
drives ticket sales. I would think that, addi-
tionally, the brand-building component for
Lottery’s affiliation with this most popular
sport franchise is priceless for its impact on
product awareness and image of the Lottery
as young, energetic, modern, connected to
the cultural zeitgeist of the community, etc.
Are there things you do to leverage that for
additional brand-building value?
G. Edgar:
The Arizona Lottery has
a long-standing partnership with the
Arizona Cardinals. For nearly 15 years,
we have activated event-driven spon-
sorships and promotions in partnership
with the team, focusing mostly in-arena.
The Arizona Cardinals Scratchers ticket
is a great way for both of our brands to
reach new fans and players alike outside
of game day.
Arizona was in a unique situation and
the timing of this Scratchers ticket worked
out perfectly. The Arizona Cardinals
played an incredible season last year, and
with the excitement of Cardinals football
saturating our state, it seemed logical that
a new Cardinals product Arizonans had
never seen before would be successful. Ad-
ditionally, the Arizona Cardinals were fea-
tured in an ironically titled Amazon series,
“All or Nothing.” The buzz surrounding
this docu-series also helped our promo-
tion efforts for the Scratchers.