10 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2023 Syndicate shares have long been a popular product offering in retail stores for Australian lottery players. A “syndicate” is simply a group entry where players pool their funds to buy a larger entry than they might otherwise purchase as an individual. An example might be where friends or family pool their funds to purchase a ticket and agree to split any winnings. A store syndicate is a syndicate that’s been set up by a local retailer, who then offers shares in this syndicate to their customers in store. Local lottery retailers are used to setting up an appealing mix of syndicates catering to customer preferences in their area. Store syndicates have been part of the Australian lottery landscape for many years, but until now they’ve never been available online. That’s all changed with the recent launch of The Lottery Corporation’s Store Syndicates Online initiative which allows lottery retailers to sell shares in their store syndicates online via the Lott App and website. This program, launched late last year, allows lottery retailers to offer shares in their syndicates to customers online. It’s part of the Australian lottery operator’s omni-channel strategy to offer seamless experiences across all channels. Customers using the Lott app or website can click on the Syndicates button and access syndicates available within their state. Players can search for store syndicates by suburb name or by postcode and filter results by game, entry price or number of shares. They can also select a favorite store. Many people like to buy a share (or shares) in a store syndicate from their local retail outlet in the online world just like they do in the physical world. From the retailer’s point of view, being able to offer shares in their store syndicates online gives them the chance to share in digital growth, service their existing customers in a new way, and reach new customers. Lottery retailers receive the same commission rates for store syndicate sales completed online as they do for store-based sales. The Lottery Corporation launched Store Syndicates Online in late November 2022 and it has experienced strong take up. At the company’s half-yearly results presentation in February, The Lottery Corporation revealed that about 95,000 customers had bought syndicate shares online in the month following launch. More than 1,700 of the company’s network of about 4,000 lottery retailers had offered their syndicates online. And the online channel in that first month accounted for 13% of syndicate entry sales. Public Gaming Interviews … Paul Jason: Where did the idea for the Store Syndicates Online initiative come from? Antony Moore: It’s one of those situations where a crisis accelerated some inventive thinking and ultimately led to an opportunity. The idea came about during the COVID-19 pandemic when our retailers, while they remained open, were experiencing a drop in foot traffic and sales due to lockdowns. The digital team had research that players online wanted to access store syndicate entries and we also had insight that players typically purchased syndicate shares on top of their existing purchase behaviour. We saw taking store syndicates online as a way to benefit retailers and offer more choice to customers. Has this been done before? Andrew Shepherd: As far as we’re aware, no. We’ve called it a world-leading initiative in recognition of that. How does this initiative align with your strategy? A. Moore: Like many businesses we have customers with different preferences. Many customers like to purchase in person – retail remains our largest channel and accounts for 62% of turnover as of December 31 last year. And of course we have customers that purchase digitally, and we have many customers that use both channels at different times. Our omni-channel strategy is about creating as seamless as possible an Store Syndicates Online: A Retail Innovation that transfers to the Online World with Great Success Andrew Shepherd, Chief Customer & Marketing Officer, The Lottery Corporation Antony Moore, Chief Channel Officer, The Lottery Corporation
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