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48 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2021 M. Harville: The velocity of change certainly accelerated in recent years. Prior to then, innovation was focused on updating existing draw games or producing a new draw game every now and then, creating new instant scratch-off games, and getting more inventive in the advertising and promotion space. This steady-as-you- go approach has been upended by the explosion of gaming options that compete with lottery, by the internet which delivers easy access to those gaming options, by digitization of the in-store shopping experience, inventory management and the business of supporting our retail partners, and just by the application of technology to enhance all aspects of both back-office and customer-facing operations. Much of what was not viable a few years ago is now mandated by players who have higher and higher expectations in the world of evolving technology. Ensuring that modernization stayed aligned with our political stakehold- ers as well as compliant with all regula- tory statutes became a mission-critical component of strategic planning. The catalyst that started everything for us and for many lotteries, as far as the Internet is concerned, was the Department of Justice ruling that clarified the meaning of the Wire Act to apply to sports betting and not to lottery. That 2012 ruling basically opened the doors for lotteries to make their games available online and within their own borders, so long as legal within the state. Regulatory policy in the games- of-chance industry is decided at the state level, and fortunately, the statute governing the sales of lottery in Kentucky is broad enough to be interpreted to include the internet as a sales channel. We immedi- ately began laying the groundwork to be able to offer internet sales. Things started to take off in 2013 when we implemented Keno as a precursor to developing a full-blown internet strategy. Sequencing the implementation of new initiatives in this way worked very well for us. With the success of Keno locked in, we turned our attention right back to the internet and soft-launched iLottery in 2016. Like most lotteries, we did meet with some resistance from various interest groups. But we worked diligently to be transparent and address their concerns. We internalized their input and I feel we ended up with a more thoughtful and balanced approach for enabling a diverse set of voices to guide our iLottery strategy and action- plan. Did the process of interacting with your legislative constituents for Keno create a foundation of relationships that contrib- uted to your ability to manage the political environment and retain support, or at least defuse opposition, for iLottery? M. Harville: Yes, I would have to say it did. Interfacing with legislators, retailers, and others for the process of launching Keno did establish a pattern of communication and trust that I think translated well when we came back around with our proposed introduction of internet lottery sales. We educated our stakeholders as to exactly how we would conduct internet sales, with geo-location, deposit limits, and other protections for the consumer. Our stakeholders were and are very aware of our commitment to responsible gaming, to transparency in communications, and to doing everything the way we said we would. How does your background in law prepare you for leading a state lottery? M. Harville: Over 32 years practicing law, and especially the past 16 years as the KLC’s Sr. V.P. and General Counsel, have served me well and made the transition to President & CEO and very natural one. My years spent in private practice, engaged in business litigation and representing a number of state agencies, provided a solid background in addressing legal and business matters, from contracts to regula- tory compliance and employment matters. Being general counsel for the lottery took it to a new and different level. An effective general counsel in the lottery industry (and there are a number of excellent lottery lawyers across the U.S.) not only knows the business and mission, inside and out, but must be strategic, be able to build consensus, and identify the pathways forward that effectively balance a wide variety of sometimes conflicting objectives. A lottery is unlike any other market-driven consumer-focused business in the world because it has no singular mission to maximize shareholder value. Its mission includes maximizing funds generated for the benefit of good causes – in the Com- monwealth of Kentucky, the Lottery funds college scholarship and grant programs. But our mission also includes service to all the people of Kentucky and the diversity of leaders who represent their interests. Our statutory duty requires the maximiza- tion of revenues, but also that we ensure the welfare of our players. Our mission necessarily must include compliance with regulatory constraints which are constantly evolving. And we must also be sensitive to the spirit as well as the letter of the law and stay aligned with our political constituents who sometimes have conflicting agendas. A vital skill set for leadership in this business is strategic thinking to address and manage this broad range of expectations and obligations, and to forge a cohesive approach towards fulfillment of a complex set of goals. You have always, not just upon your appointment to CEO but from the very beginning sixteen years ago, embraced the opportunity to engage in the broader issue of how to optimize performance, how to integrate the legal, regulatory, and political dimension into the corporate mission. M. Harville: Operations, marketing, sales management, advertising are all fascinating areas. While I do have an affinity for the discipline of the law, when I joined the Kentucky Lottery sixteen years ago, not just as general counsel but as senior vice president and member of the executive management team, I was immediately intrigued by the bigger-picture strategic challenge of integrating all perspectives into a thoughtful action-plan. It went far beyond legal analysis and advising, and required sorting out the best overall strategies and action-plans to maximize potential, minimize risk, and deliver the best results for the people of Kentucky. I consider myself very fortunate and blessed to be able to learn from and col- laborate with some of the most innovative and effective strategists in the industry, and these are the members of the experi- enced and talented team at the Kentucky Lottery. I want to thank our entire team for their laser-sharp focus on our mission, even during the unprecedented circum- stances of a pandemic, and for being fine people and wonderful friends as well. I am so proud to be a part of our team and very excited for the great things that we will accomplish together over the coming months and years. Q Mary Harville continued from page 41