RETAILMODERNIZATIONJANFEB2021

39 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2020 we take seriously. COVID has certainly moved health and safety to the top of the list of factors we must consider in our retailer outreach and efforts. How much contact must players have with clerks at retail? Can we add vending machines and ticket validators into the retail environment and ensure a positive impact on sales? These are the types of issues we are working on right now.” NeoPollard Interactive, Pollard’s joint venture with NeoGames, supplies platforms and games to AGLC (Alberta Gaming Liquor & Cannabis), Michigan, New Hampshire, Virginia and North Carolina Lotteries. Even for those lotteries which do not offer iLottery, the player data and insights gleaned from iLottery jurisdictions provides valuable business intelligence that is being applied to all areas of the business. As the former Deputy Commissioner of the Michigan Lottery, Rick has seen firsthand the positive impact that iLottery can have on the entire lottery organization, particu- larly in across-the-board modernizations. “Not all lotteries can offer the full iLottery program like that in Michigan,” said Rick. “But the lessons learned from iLottery can help everyone. Lottery apps must be as robust as those offered by major retailers with ticket info and players club options. So much is done on our mobile phones today and lottery can’t be the only consumer product marketing business that does not provide a robust mobile platform. “At the same time, retail locations can also take a lesson from the online environment where in-person contact with a lottery rep- resentative is restricted,” said Rick. “Lighted and electronic monitors display clear ticket information to players before they approach the counter. Ticket validators provide immedi- ate information without the need to approach a clerk. Vending machines offer products without a counter purchase. Finding ways for lotteries to sell instant tickets in new retailers and in-lane has become a priority for many lotteries. We know that, just like with iLottery, players will become more comfortable with non-traditional retail offerings.” INNOVATION, INFORMATION TAKE CENTER STAGE At Scientific Games, the entire organization collaborates to deliver quick and efficient service and innovative products that lotteries need to maximize profits. Enter Jeff, whose group divides its work within the critical ar- eas of the lottery industry – researching and developing the next trends in instant games, working with lotteries to support the draw game category, looking for opportunities to integrate digital, and modernizing the retail experience to ensure the industry’s sustain- ability. His group of industry veterans has never been busier than in the past year, and their efforts won’t slow down in 2021. “Innovation has always been at the core of our work at Scientific Games, and that is increas- ing this year,” said Jeff. “Our innovation obviously extends beyond lotteries to retailers. While the big chains have adopted modern technology across their categories, we want to make sure all retailers have access to the most advanced lottery products and solutions. “In the U.S., 72% of C-stores consist of chains with 50 or fewer locations. We be- lieve that consolidation in the C-store indus- try will continue at a record pace, presenting challenges for lotteries to remain influential in how retailers display and support their products. Approaches like our SCiQ® retail ecosystem will provide the strategy to work with these changes across the widest range of retailer types. “To us, it goes back to the convenience of buying lottery products. Make it seamless and friction-free for the player to get in and out of the store, whether they prefer draw, scratch or digital games. If a particular jurisdiction doesn’t allow credit card purchases, then we can work with the lottery on a digital wallet where they can place their order and then just pick-up their lottery purchases. We learned over the past year that down-the-road innova- tions need to take place now to protect and maximize lottery sales and profits.” INTRALOT has used data for years to drive its efforts across the world. The trick has been to take vast amounts of data and make it usable by lotteries. Again, this is another service that has taken on even more impor- tance for lotteries. “We believe there will be even more reliance on CRM systems over the next few years,” said Kim. “The data col- lected on players will allow retailers to drill down to customer behaviors and become more efficient. For both instant tickets and system-based games, retailers only have so much space and bandwidth. With efficient data, we can offer products that players are buying and eliminate those that are no longer working.” As Kim and her colleagues at INTRALOT look to the next few years, they see various trends that are here to stay – retailer curb- side pickup, home-delivery services, increase in e-wallet usage, email and programmatic marketing increases to service an increase in customized “shopping lists.” Of course, some of the need to modernize at retail is also driven by finances – more specifically, enormous budget shortfalls facing many states. Two of the states hit hardest by the pandemic are searching for sources of revenue. New York Governor An-drew Cuomo recently stated his intention to regulate and tax sports betting as his state will have a $15 billion shortfall this year. California’s shortfall is closer to $50 billion. Michelle Carney, IGT’s Vice President Global Lottery Marketing, said these chal-lenges can result in more support for lottery modernization efforts. “In times of economic hardship, state gov- ernments look to the Lottery for new sources of revenue,” said Michelle. “This has histori- cally been a good opportunity to promote awareness and acceptance of initiatives to modernize and accelerate growth, and to educate legislators on expansion opportuni- ties – for example, self-service, Keno – and technological advancements such cashless, mobile, and iLottery. These are the times that call out for change and can breathe new life into initiatives that previously did not have broad acceptance.” When the goal is to increase revenue, mod- ernizing the retail experience – whether in the store or online – needs to be at the top of everyone’s “to do” list. Q When the goal is to increase revenue, modernizing the retail experience – whether in the store or online – needs to be at the top of everyone’s “to do” list.