40 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2023 on our most widely-known games – Mega Millions and Powerball,” said David. “For states like New Mexico that don’t have iLottery, we can offer online product sales through couriers. They allow our players to purchase our draw game products through their phone. Given what is happening in the rest of the retail world, it’s a shame that our lottery can’t offer a full range of online products. But until that day, all of us in this boat have to be creative. Encouraging the use of couriers is one of those creative avenues. At the same time, I know that these companies are reaching a younger audience that we aren’t reaching using our typical sales channels. Even better, in New Mexico a few of our larger retail outlets are serving as couriers by offering online sales. If we can get other retailers, particularly the chains, to follow suit it will be truly the best of all worlds.” Bishop said he tried a few different avenues to sell online while director in Arkansas. Couriers would have solved many of the roadblocks he faced. “I was opposed at every turn when we tried to do even the most basic things, like allow debit card sales,” he said. “The courier model works because companies like Jackpocket actually work with retailers, which mutes the arguments of retail associations. I’ve had discussions with retailers in Arkansas who had questions about the retailer model where I told them they could create a platform and offer games like the couriers. That is the great thing about the courier model – it is open to all retailers. For states that haven’t yet legalized iLottery, couriers offer a way to open lottery to new channels and new demographics. For those lotteries that allow couriers, the results have been positive. Revenues have grown. There’s been no negative impact on retailers. It shows that couriers can co-exist with retailers by simply providing another way for customers to purchase lottery products. Additionally, couriers spend a lot of money on advertising and for states that are pinched on advertising spending, it’s another way to spread the word on lottery products.” Using his own experience with trying to get an iLottery program approved in Maryland, John moved the discussion to how to answer the arguments about negative impacts on retail. “We spend a lot of our time working with our retailers and for good reason – they are the connection to our players,” he said. “But when it comes to iLottery, those conversations have typically taken a negative tone. How can we change that? How do we show retailers that iLottery is actually a win for them?” Mike said it’s all about education and content. “We know we need to continue to educate retailers,” he said. “Lotteries are doing this every day on a range of topics so they have years of experience in communicating with their retail partners. But that’s just part of it. We need to continue to find ways to offer content that crosses between the retail and digital worlds. Buy at retail, get free plays online – buy online, get free plays at retail. We need to utilize tactics which connect the retail and digital. Retailers will see that online can help promote their sales. This will be more effective than any data we can show them.” Julin said it is a careful balance between making retailers comfortable and maximizing revenue. “While lotteries might have to make some concessions to retailers to launch their program, they want to be careful to not lock into anything that will hurt revenue,” she said. “The better tactic is to look at your decisions and decide if they will help you reach your goals. If your primary goal is to just get your site launched and build it out over time, you’ll make decisions much differently than if you want to launch with a full range of products and maximize revenue immediately. We have found that the more information you provide up front, the better retailers will feel about any digital program. They are part of the process so they should be treated as part of the solution.” Bishop said letting the data do the talking can be impactful. “Thinking about my time as director and my current work with Jackpocket, we have so much data that shows that retail can survive and thrive in the digital world,” he said. “Let’s use that data to tell our story and show retailers the very real examples and success stories in the state offering digital sales. Lotteries have options – from loyalty programs to online sales to couriers which offer products. Let’s make sure we lead with our strengths when talking with retailers and other decisionmakers within our jurisdictions.” Frank brings experience from both sides of the digital experience. “I’ve worked at a lottery that tip-toed its way into digital and currently work at a lottery that is all-in,” he said. “Each road to digital has its positives and negatives. If you go slow, you have to be comfortable with the fact that you won’t be earning strong revenues for many years. If you decide to launch with a full offering of products, you hopefully have prepared your retailers for what is being sold online and how it will help their in-store sales. It all goes back to your retailer relationship, which is built over years of communication and trust. We need to protect our investment in that relationship.” As a content provider, Brad said lotteries need to make sure the games they are offering will succeed. “Having the ability to sell online is only half the battle,” he said. “Once your players are visiting your online site, what are they seeing? Are they seeing exciting, engaging games that provide a fun experience, reasonable payouts and winning opportunities? Or are the games basically scratch games in a digital format? For those of us who create the content for iLottery sites, we believe it is the exciting games which will attract players and drive revenue. This has been borne out by the games that have succeeded for lotteries across the world. Those results should drive what we offer to players in the future.” Amy said lotteries can learn a lot from what is happening with iGaming. “While the iGaming market has a higher level of spend than iLottery players, we can look at the diverse content that iGaming platforms successfully offer and use it as a model to follow,” she said. “iGaming makes use of the data collected through their CRM platforms. Lotteries should use the data they have collected both to attract players to their online sites and drive the back-and-forth between digital and retail. The casinos that operate online are always going to outspend lotteries. But there is one weapon lotteries have that casinos don’t have – a huge retailer network. Let’s leverage this competitive advantage to communicate with our players and make sure they are aware of all their playing options.” David wrapped things with a few words of wisdom. “Every lottery has to do what’s right for their individual jurisdiction,” he said. “We know that online is the future for all retail, and lottery is not an exception. But we can only do what our constituents and legislators will allow. Even if you can’t sell online now, make sure you offer the most robust digital offerings as you’re able. This will prepare you for the day when things open up. Your players are online in most aspects of their lives. Lotteries need to be there with them.” n iLottery: If we Knew Then What We Know Now continued from page 36
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