Public Gaming International Gaming July/August 2021

31 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2021 Put simply, if consumers can’t find products, they can't buy them. Most manufacturers of packaged goods have had multi-channel retail strategies in place for years. When the pandemic struck, these strategies paid o because their products remained available to consumers. The same principle applies to lottery—the more access points lotteries have with players, the easier it is to keep players engaged. “It is critical for lottery products to be available in as many touchpoints as possible, especially in locations where consumers shop and engage with other products and services,” Magdalenoka-Keen said. “Lottery products need to be visible at retail and fully stocked.” Adapting to New Purchasing Behaviors The upheaval in consumers’ daily routines and habits had a big impact on purchasing behaviors in both Italy and the U.S.—but in opposite directions. Purchase frequency reduced across all retail categories in Italy, including lottery. Scratch-o…purchase frequency decreased 24% in Italy during the pandemic. However, those fewer trips were maximized with larger shopping baskets on average, mirroring the general shopping trend in the country and across Europe. More games were purchased per shopping occasion. With fewer restrictions on physical movement than in Europe, U.S. consumers’ scratch-o…purchase frequency actually increased by 40.2%. Despite the disparity in purchase frequency, a remarkable similarity emerged—players in both countries started to see the value in higher-price-point games. While consumers made fewer trips to the store, the number of tickets purchased at higher price points rose significantly. “Players were going to retail stores less often but with bigger budgets to spend, and likely bringingwinning tickets from their previous shopping trips as well,” Magdalenoka- Keen said. “It all allowed players to purchase more games and try the price points they previously didn’t play.” The findings in the U.S. echoed European consumers’ increased appetite for higher-price-point games. “We conducted retailer interviews in two U.S. states last year, and one of the consistent findings for each state was that retailers have noticed their instant scratch customers buying games at higher price points,” Menzia said. “This really validated what consumers were already telling us.” Again, what is the key lesson for lotteries? According to Menzia and Magdalenoka-Keen, the rising popularity of higher-price-point games signals that lotteries should adapt their game mix to meet this new, increased demand.