Public Gaming International Gaming July/August 2021

“Not only do retail game bins need to stay full, the higher-price-point games now need to appeal to di erent types of players who are interested in upping their game,” Menzia said. “Also, from our studies we learned that players who purchase $10 and $20 games are more likely to repurchase instant scratch games in the next 12 months. Adapting doesn’t just drive trial—it supports repeat business.” The Law of Attraction For the past year people have been proactively seeking new forms of entertainment. With choices being so limited, especially within the gaming sector, research shows that this has been an opportune time to get more consumers interested in lottery and gain new players. Despite scratch-o s being extremely popular historically, Italy has experienced over 8% player growth during the pandemic. In addition, nearly 90% of these new players have continued to play lottery. “This is a tremendous repeat rate, signaling that Italy has provided a gaming experience that is attractive,” Magdalenoka-Keen said. “New players enjoyed playing and have returned to lottery as a result.” Surprisingly, most new instant game players in Italy fall into the two player segments that Scientific Games identifies as Enthusiasts and Passionates. The company characterizes these segments as the most engaged and loyal lottery players who genuinely appreciate the instant game entertainment experience and tend to remain loyal. “These two segments account for about 80% of instant game annual spend, so they are incredibly valuable to the lottery,” Magdalenoka-Keen pointed out. “We need to look after these players and their needs and motivations.” With few options for entertainment and not as much physical restriction as in Europe, more new consumers started buying instant games in the U.S. Almost 20% of instant scratch players in the U.S. just started playing in the past 12 months— twice as much as in Italy. This was greatly due to the lack of gambling options during the pandemic, especially with widespread casino closings and minimal options for gambling online with real money, Menzia said. “Lottery was literally the only game in town for quite some time,” Menzia observed. “Like Italy, a significant number—86%—of these new players in the U.S. have stuck around and continued to engage with lottery in the past five months.” Extended-play instant games were the primary attraction for new players in the U.S. About 26% of new players fell into the segment Scientific Games calls Visitor EXT, those who are very attracted to extended-play games. “Much of our qualitative research conducted in 2020 found that the popularity of extended-play games rose significantly during COVID,” Menzia said. “This stems from the desire for increased play time. In these players' minds, extended play games o er a bigger bang for the buck when it comes to entertainment.” Motivating Players through Innovation When it comes to high-quality players who started purchasing lottery products during the pandemic, what can lotteries do to keep them around moving forward? And how do lotteries bring back players who stopped playing during the pandemic? According to Magdalenoka-Keen and Menzia, it all comes down to motivation. Knowing what motivates these players and meeting their expectations will show these key segments that they are valued and appreciated. Providing a variety of top prizes, as well as an array of play styles, across price points is the key to motivating players to keep coming back for more, Menzia said. “Innovation is very important,” he added. “Players are always looking for new types of games. If lottery doesn’t deliver, consumers will look elsewhere to fill that entertainment void.”