39 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2022 Competition within the Games-of-Chance Industry continued from page 25 “I also think the most important thing we can do going forward is to continue to understand our players better,” he added. “The ability to now have data points on players where we’ve almost been blind for so long allows us to offer much more targeted and strategic innovation. We can build content and games for the types of players that we want to retain long term. Our keys are understanding our players and continuing to get to know exactly what they’re looking for. This will provide us with the ability to market, promote and overall retain those players at higher levels. Matt said everything comes back to the retail network. “We’ve seen over and over again, and not just in gaming but in many, many industries such that it’s almost becoming a cliché by now, but the omni-channel strategy is critical,” he said. “The organizations and companies that embrace this approach tend to consistently outperform either those that are only retail or those that are only online. The lottery industry needs to take full advantage of the opportunities that the omni-channel approach presents in terms of the online reinforcing and helping the retail network thrive. Help the policy makers understand the importance of iLottery not just for the sake of iLottery itself but for the eventual synergy that it will create with the retail network. Show them the numbers from the lotteries now offering iLottery. This is an area where we need to concentrate.” Lynne emphasized that lotteries must take advantage of their place in the gaming hierarchy. “We know that our industry started as a monopoly and as other forms of gaming have proliferated, that monopoly status has been challenged,” she said. “But lottery is still the best-known form of gaming in most states. Illegal gaming will always exist because it’s difficult to totally eradicate it. But lottery is such an attractive form of gaming – good payouts, strongly regulated – that the demand for our products will always exist. We have beaten back all forms of competition before and we’ll continue to do it.” Looking back on his career in the industry, Lorne said that lotteries should be heartened by how they have survived through many forms of competition. But that doesn’t mean lotteries shouldn’t be constantly looking for ways to innovate. “It’s interesting because our games are essentially the same games we were selling fifty years ago,” he said. “We need to understand that you would be hard pressed to think of any industry that has grown the way the lottery industry has grown in fifty years that effectively is selling the same products. I rack my brains trying to think of another one and I can’t. So there’s something incredibly enduring about lottery and something incredibly ingrained in the psyche and the behavior of people who buy our products. I can assure you that if fifty years from now the products are the same instant tickets and the same Pick 6 and the same daily numbers as lottery offered fifty years ago, the industry is not going to be as successful as it is and will certainly cede market share to our competitors. At the end of the day, innovation should be our primary focus as it is key to building sustainable growth and a long-term successful future.” Q us and working to ingratiate ourselves with our neighbors and the different organizations has helped a lot.” POWER OF BRANDS With four executives fromMUSL-member states, the panel’s discussions inevitably turned to Powerball and its retail reach. “Not only are our products in hundreds of thousands of retailers across the country, but we also have the best-known brand in gaming – Powerball,” Gregg said. “As a group, we are starting to understand better how we can utilize that game more. From the conversations we’re having on the licensing side with private sector businesses, we are getting a view of what they value and therefore what we can offer those other brands. We’re an entertainment brand and we need to work with partners who are also in the entertainment business, among others.” Stephen agreed and said there are past examples the lottery can model after. “For years, Hallmark made cards and now they have a huge Christmas ornament business and operate three cable channels,” he said. “I’ve used the LEGO example as well. Growing up, they were just bricks you used to build things. Now they have movies and TV shows. For Powerball, we used to have a game show but now we’re involved with some very interesting marketing and promotional ideas. That is how you stay relevant. You evolve and take your brand where your potential customers will see you in a different light.” As the panel’s singular representative from the private sector, Brad’s experience building EQL Games has not been that different than the work to build the lottery and Powerball brands. “I started as a horseracing company and then was able to build relationships with leagues, such as MLB, NBA, and the NHL,” he said. “What is surprising is that working with the large sports leagues has been much easier than working with the horseracing entities. Horseracing doesn’t understand its brand. They have 50 different people who you work with to get 50 different licenses for 50 different racetracks. That is why horseracing is where it is and why the other leagues are much more popular. At Major League Baseball, I work with three people to get everything taken care of. “The bottom line is that lotteries should never fear engaging with brands that might seem to be more powerful than us,” he said. “Those mega-brands might actually be the ones who recognize the reach, impact, and value of our own lottery brands and end up being the ones who work with us in an effective way. They have the resources and the high-level vision which put them into this elevated position. Let’s reach out to engage them in mutually supportive collaborations. No brand should be considered too big or powerful to gain from a relationship with Brand Lottery.” Gregg wrapped up the panel with a shout out to his fellow MUSL Committee chairs and members, and their work to expand the Powerball brand. “It’s been almost six years since we kicked off a strategic planning process to build on the primary pillars that have been in place,” he said. “Our MUSL leadership and staff in Iowa has masterfully managed our efforts, including strengthening the committee structure. It’s not one or two people that have ownership of this strategic plan and (MUSL Executive Director) Bret (Toyne) and his team have worked hard to keep our discussions moving forward. Q Focusing on the Brand continued from page 21
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