36 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2023 iLottery: If we Knew Then What We Know Now continued from page 24 like Jackpocket assume the costs and take the risk,” he said. “When we had the large Mega Millions jackpot over the summer, Jackpocket was the number one retailer in the state. What does that tell you? iLottery is all about convenience. It also shows us that younger players want this convenience as well. This is the future of lottery and I wish more of us were allowed to sell online.” Julin Shaw has been at the epicenter of iLottery, working for NeoPollard Interactive on their business development activities. “For someone like me who was working on mobile apps and loyalty programs, the move to iLottery was exciting,” she said. “In 2014, we launched the Michigan Lottery iLottery program and it showed the industry the potential for this next step in digital engagement. The risks we took paid off because iLottery was a big success in Michigan and other states have followed in their footsteps.” Bishop Woosley brings the perspective of a former director who, like David and John, tried unsuccessfully to launch an iLottery program and now is on the vendor side, working with the U.S. industry’s largest courier – Jackpocket. “It’s amazing what has happened in Arkansas,” he said. “In 2019, we received permission from the Governor to start selling in the state and within a month they were the top selling retailer. Jackpocket provides lotteries not authorized to implement iLottery themselves the ability to make the products available online while not taking the risk that has kept many states on the sidelines. Truly a win-win.” Frank Suarez has worked at two iLottery jurisdictions – North Carolina and D.C. The major difference between the two lotteries is that in D.C., he has a full slate of online products to offer his players. “North Carolina is a conservative state, so we basically launched a platform and offered a few draw games,” he said. “Everyone was afraid of online cannibalizing the retail product, so we were not allowed to sell many of the games. Total opposite in D.C. We have it all and can offer our players an array of games. Two very different experiences.” Keeping with the panel’s theme of “If We Knew Then What We Knew Now,” John asked Amy how her past experiences have shaped her current work at Scientific Games. “The first iLottery experience in Minnesota had a host of limitations – low payouts, low maximum spend, total spending cap of $50 a week,” she said. “So many restrictions got in the way of the player’s experience despite the best efforts of the lottery. What we’ve learned over the years is that to attract and retain players, you must engage them as soon as they log on to your web site. The experience of registering has to grab them and easily explain what they have to do. Funding the wallet must happen quickly. And within minutes, they are playing games that will appeal to them and keep them returning. We’ve learned so many best practices over the years and also learned what can negatively impact programs. Today’s iLottery programs will launch with many more chances for success than in the past.” NeoPollard Interactive is using its wisdom and experience to provide others with the understanding of how to launch and run a successful iLottery program. They teamed with Spectrum Gaming on a report called The Future of iLottery which addressed many of the topics covered in the panel. Julin said the report serves as a guide to states that are looking at the potential of iLottery. “We wanted to provide lotteries with the tools necessary to talk with their legislators and policy makers and overcome the obstacles that typically arise in iLottery discussions,” she said. “The impact on retail is usually the number one topic raised in the debate. So we looked at retail sales since iLottery launched and in all cases, retail sales rose in every state that has introduced iLottery. This is such important data for lotteries because it validates what we have all known about iLottery from the European experience. As iGaming and sports betting continue to dominate conversations, the data from this report will help lotteries show that not only does iLottery provide the largest new revenue to states, it also helps lottery retailers increase their sales.” Mike picked up on the retailer discussion and noted that lotteries have to be persistent in communicating the positives of iLottery. “The data from Europe was helpful in the first wave of iLottery launches and now we have a wealth of data from the U.S. experience,” Mike said. “Unfortunately, retailer associations have, for the most part, been roadblocks and probably will continue to be naysayers. They exist to deliver the message that iLottery is your enemy. Even the strongest data is not going to change many minds overnight. But we have to keep delivering the message, making sure we continue to drive home the positives of iLottery to the retail community. At some point the facts will get through to the decisionmakers and help make the process easier for lotteries.” While iLottery means eScratch games to most people, eDraw games are also an important product line for online programs. Frank has experienced this at both North Carolina and D.C. “In North Carolina we looked at taking a standard Keno game and putting it online but the ultimate game is very close to eInstants, which aren’t allowed in North Carolina right now,” Frank said. “Our work continues to evolve in D.C. We would like to take monitor games, which feature good entertainment, and offer them online. But it’s a process. Payouts are a concern. Do we increase them online? We know the big jackpots of the multi-state games increase our registrations. Beyond the large jackpots, draw games just don’t attract much attention. We have to increase the entertainment value so that draw games can be considered in the same category as eInstant games.” Brad said that EQL Games is laser focused on revitalization of the draw game category. “Taking the retail draw games and simply putting them online is not enough,” he said. “How can we create a draw product that is as exciting and engaging as other online products? You need a payout that will attract players, so we start there. Within the game of chance category, how can we create the types of games that make iGaming so popular? EQL is leading with sports and game outcomes, which we know are attractive to a majority of lottery players. Let’s bring strategies from other industries and use what we can for iLottery draw games. Creative thinking will lead us to games that will attract players and drive revenue.” The two panel members who have served as lottery directors – David Barden (South Carolina) and Bishop Woolsey (Arkansas) – brought a slightly different perspective to the draw game discussion. First up was David. “We hear a lot about eScratch games but I think it is shortsighted to not put focus Continued on page 40
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