10 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2022 PGRI INTERVIEWS Paul Jason: How has the world of lotterygaming been changed by the disruption of COVID over the past two years? Hansjörg Höltkemeier: First, it does seem that at least for the lottery sector, the pandemic has been downgraded from crisis to disruption. A rather severe disruption to be sure, but the lottery sector has managed it the best possible way and now we are thinking about the future. Second, we may be approaching the end of another COVID-wave, it looks as if various forms of pandemic will continue to be with us for the foreseeable future. Overall, the lottery sector appears to have adjusted to these new circumstances and the players have responded positively to our approach and our offer as well as our role in this pandemic. How have the “Lotteries approach” and offer changed? H. Höltkemeier: At first glance, it is not a dramatic change, as consumer still love to play the lottery, even during a crisis and times of uncertainty. Customers expect stability and serious operations more than “fireworks” from us. During this pandemic, we could observe that more and more customers have moved toward online channels and called for contactless services. So behind the scenes, there was a significant and rapid change in operations for the benefit of the players, regulators and good causes. The pandemic has speeded the adoption of new technologies, a digitization of the in-store shopping experience took place towards new formats that enable digital customer interactions. We do see also new approaches to player protection, e.g. with artificial intelligence used for player behavior screening, and a new perspective on operational cost reductions through automated processes. In the end, this also changes the competitive landscape. By the way: to deliver stable and secure services, the importance not only of new offers and appropriate technologies but also of cybersecurity has become a much bigger priority. It sounds like the dominant role of Retail is coming to an end? H. Höltkemeier: Though more customers have chosen the online channel during the pandemic, the discussion is not about Online versus Retail, not even Online beside Retail (Multi-channel/ crosschannel). The future is an integrated offer of all relevant channels (Omni-channel). This will continue to leave lots of room for the ongoing growth of Retail-sales. First of all, the majority of our players, we estimate close to 70%, still play regularly at retail stores. Many behavioral patterns – like going into the store on a special week-day before the draw to buy $5 or $10 of lottery tickets – have not changed and perhaps will not change for a very long Regarding the Covid-Pandemic, a German historian observed: “The experience that the unthinkable has become conceivable - this will change our lives.” Hansjörg Höltkemeier Co-CEO of the Deutsche Klassenlotterie Berlin President, European Lotteries (EL) “I think over the course of the next year we will see much more granular analyses and insights into how the world is changing and how lottery might continue to adapt to deliver ongoing improvements to its games and the playing experience – not just in the online space but in every aspect of business operations, distribution, and brand management.”
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