PGRI March/April 2022 Public Gaming Magazine

MARCH/APRIL 2022 • Interview with Romana Dernovšek, President and CEO of Loterija Slovenije d.d. • Back to the Future! Summarizing the Highlights of the WLA/EL Marketing Webinar • The Community of Lotteries standing for Solidarity, Resistance and Support for Ukraine • Celebrating Two Decades of the Biggest Lottery Marketing Trends • How Data and the “Digital Mentality” are Re-Shaping Lottery’s Future F E A T U R I N G CONVERTING MOMENTUM AND EXECUTION INTO RESULTS

Traditional $ $ $ $ $ $ $ $ $ $ $ $

THE POSSIBILITIES ARE INFINITY. Uniquely vibrant and never-before-achievable game designs are just part of the all-new Infinity Instants™ technology from IGT. This patented process transforms virtually every element of an instant ticket, from unlimited scenic variety to stunning color and clarity – even under the play area. Learn more about the infinite possibilities at Infinity © 2022 IGT. The trademarks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors.

4 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 Publisher & Chief Executive Officer Paul Jason President Susan Jason Brand and Design Dan Eggers Design Lottery Industry Consultant Jim Acton Honored Founders Doris & Duane Burke Contact Information T: +425.449.3000 F: +206.374.2600 For email address changes, subscription requests and requests to be placed on our e-Newsletter distribution list, contact: PGRI, Inc. 1769 Flagstone Terrace, The Villages, FL 32162 Subscriptions Annual Public Gaming International magazine subscription rates: United States: $145 USD Canada & Mexico: $160 USD All other countries: $225 USD Public Gaming International Magazine Published six times a year and distributed to readers all around the world. Electronic version is e-mailed and is also available on our news website: March/April 2022 Volume 51, Issue 2 ©2022 all rights reserved. Public Gaming Research Institute cISSN: 1042-1912 10 What’s Your Story?? Romana Dernovšek, President and CEO of Loterija Slovenije d.d. The European Lotteries 2nd Vice President and Supervisory Chair of the Responsible Gaming and CSR Working Group 9 A Plea for Solidarity and Resistance And Statements of Support for Ukraine from the World and European Lottery Associations 14 Back to the Future! Celebrating 20 Years of Lottery Marketing Success – Summarizing the Highlights of the WLA/EL Marketing Webinar 18 How Data and the “Digital Mentality” are Re-Shaping Lottery’s Future Executive Summary of Roundtable Discussion at PGRI Lottery Expo Nashville; Moderated by Drew Svitko, Executive Director, Pennsylvania Lottery 20 The Future is Now for Lottery Retail Modernization Executive Summary of Roundtable Discussion at PGRI Lottery Expo Nashville; Moderated by May Scheve Reardon, Executive Director, Missouri Lottery and President of the Powerball Group CONTENTS M A R C H / A P R I L 2 0 2 2 F E A T U R E D I N T E R V I E W S F E A T U R E D A R T I C L E S 20 18 10 9

Some lotteries use their revenues to support a variety of important efforts such as infrastructure, education, and healthcare, ultimately creating a better state for everyone. Scientific Games’ Strategic Product Enhancements work the same way. From Sparkle® to Scratch My Back®, from HD Games™ to holographic paper, our Strategic Product Enhancements are designed to grow sales, improve efficiencies, and deliver maximum profits to the good causes our lottery partners support. Strategic Product Enhancements Big Things Happen When Small Things Work Together ©Scientific Games, Inc. 2022. All rights reserved. Reimagine Next

6 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 Visit Our Family Of Websites industry news & information videos of conference presentations PGRI conference information magazine archive of past issues listing of lotteries and vendors Showcase of industry honorees recognized by the Lottery Industry Hall of Fame PGRI Lifetime Achievement Award Sharp Award for Good Causes Lottery Industry Statesman and Stateswoman Award Rebecca Paul Mentorship Award Collaboration Award Subscribe To Our Free Digital Newsletters Receive our daily newsletters at no charge, published 5 times a week to bring you the latest breaking news in the global lottery industry. Send an e-mail to: with “add to Daily Digest list” in the subject line. D E P A R T M E N T S 22 8 8 From the Publisher Paul Jason 8 PGRI Lottery Lifetime Achievement Award 2022 Honoree Sue Dooley, Director of Draws & Productions, Multi-State Lottery Association (MUSL) 22 Drawings – A Cornerstone of MUSL Services MUSL NEWS (Multi-State Lottery Association) 62 Spotlight on the Leaders of the GovernmentGaming Industry Corporate Profiles of the Producers of PGRI SmartTech Miami 58 Pulse of the Industry: Synopsis of Recent Gaming Industry News 24 The Cutting Edge Initiatives and Strategies Driving the Breakneck Growth of Digital Lottery Even in Non-iLottery States Executive Summary of Roundtable Discussion at PGRI Lottery Expo Nashville; Moderated by Matt Strawn, Chief Executive Officer, Iowa Lottery 28 Celebrating Two Decades of the Biggest Lottery Marketing Trends Ray Bates Keynote EL/WLA Marketing Webinar, former Director of the Irish National Lottery, former President of the EL, and now Honorary President of EL 32 The Pandemic Is Over … . Simon Jaworski, Executive Vice President U.S. Operations, Leger 36 Add Some Magic to Your Holiday Game Strategy Scientific Games 40 Infinite Innovation: Offering a new player experience through the remarkable possibilities of IGT’s Infinity InstantsTM Games 46 Empowered Partnerships as Unique as Your Lottery Pollard Banknote 48 Get on the Path to Connected Play IGT 50 Trust: Why “Zero Trust” is the Future NetFoundry 52 Evolution in the Gaming World Rick Perrone, Founder & CEO, Gameology and Tournament One 24 28 36 F E A T U R E D A R T I C L E S C O N T . ard, but it’s not just about roduct enhancement in a roduct managers. Market ht balance of games with Talk about a blowout. With snowflakes shimmering on a silver holographic stock and red ribboned bundles of cash, the Massachusetts Lottery’s $10 Holiday Cash Blowout was the number one performing 2021 holiday game in the U.S. (based on weekly per capita sales). Proving the popularity of the blowout game concept, the three-tiered prize level game was loaded exclusively with $50, $100 and $500 cash prizes and 20 chances to win. The game indexed at 155 (performing 55% better than an average $10 game in Massachusetts) and generated $171 million in retail sales. MASSACHUSETTS LOTTERY Holographic Blowout Game Product managers at the Georgia Lottery added an extra enhancement to a duo of holiday games that already offered something extra. $10 Holiday Silver 50x the Money and $20 Holiday Gold 100x the Money were both Scratch My Back games with play opportunities on the front and the back. The top prizes were enough to get players’ attention during the holiday season, but bonus play on the back made them even more appealing. With the added Sparkle enhancement, the $10 game glimmered in silver and the $20 in gold. Indexing at 150, the $10 game sold out just after the holidays, and the $20 game sold out of orderable inventory in just eight weeks. The duo combined to become the best-selling higher price point holiday games in the Lottery’s history. GEORGIA LOTTERY Sparkle + Scratch My Back Family Duo Here are some of the newes games and top performers from the 2021 holiday season, all with strategic enhancements to create a special experience. s are more open to purchasing price point games during oliday season. In a recent ONE entation Study, 45% were ope chasing $10 games throughout olidays. Prize structure is also a component for holiday games. higher price points, players t premium products. ific Games’ analysts study mance trends from game through the entire lifecycle repare customized marketing as part of each customer’s t management. Lottery product also access games and data me Gallery customer portal. days, lotteries really want their er a memorable experience,” s. “Delivering that experience r back to the retailer to engage es loyalty with the lottery’s brand.” company’s holiday ga es re than 73% of holiday game U.S. Scientific Games produced day games for U.S. lotteries – es of product on giant rolls of urced from sustainable forests water-based inks. 40

8 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 From the Publisher Sigal Barsdale, recently deceased professor of management at the University of Pennsylvania’s Wharton School, pioneered the study of how work-place emotions shape corporate culture and, by extension, enterprise productivity and effectiveness. Emotional content can take the form of acts of kindness, caring, and personal interaction that we used to take for granted. Facial expressions, body language, small talk and frivolous banter communicate feelings of approval, warmth, friendship, and respect (or perhaps inadvertently, disapproval, negativity, and disrespect). One aspect of life that has been disrupted over the last couple years is the physical work-place environment where much of this emotional content is working its magic. I would submit that Dr. Barsdale’s insights do not suggest that we need to return to pre-COVID 45-hours-a-week in the office work-styles (that isn’t happening). Just that we want to be deliberate and cognizant of the impacts on hard-tomeasure factors of production like emotional content as well as the more traditional objects of study like supply-chain logistics. As Dr. Barsdale says “Emotions aren’t noise – they’re data.” The post-COVID world is beginning to take shape. Some of the issues we used to think are important are being replaced by new priorities. My interview with Romana Dernovšek, President and CEO of the Slovenian Lottery, traverses topics that would not have been discussed in the same ways even eighteen months ago. Ray Bates walks us through the big-picture lottery industry trends of the last twenty years to provide a context to help us negotiate our pathway forward. Along with the executive summary of the WLA/ EL Marketing Seminar, our European colleagues provide a truly enlightened global perspective on where we we’ve been and where we are headed. And thank you to all of our editorial contributors for sharing the insights that help us navigate in these most interesting of times. The theme of Smart-Tech Miami is “2022: Converting Momentum and Execution into Results – How are the success-drivers of today different from two years ago, and what will they look like two years from now?” Let’s build the data-sets that will enable us to gain a clear picture of how business will operate going forward. The future has never been richer with opportunity for creative, resourceful, inspired leadership to make a real difference to the way we live, work, and play. See you in Miami! Paul Jason, Publisher Public Gaming International Magazine P G R I I S V E RY P L E A S E D A N D H O N O R E D T O A N N O U N C E T H E 2 0 2 2 R E C I P I E N T O F T H E PGRI LOTTERY INDUSTRY LIFETIME ACHIEVEMENT AWARD Past recipients of the Award and current industry leaders concurred that Sue Dooley’s dedication and contributions to the success of the lottery industry have been enormous and her efforts appreciated and deserving of this special recognition. Join us to celebrate the presentation of this award to Ms. Dooley at 4:45 pm on Weds April 20 at the PGRI Smart-Tech Conference in Miami. Visit, click on “Awards” at the top and “Lifetime Achievement” to read about this award and the bio’s of previous recipients. Sue Dooley Director of Draws & Productions, Multi-State Lottery Association (MUSL) As the fourth employee hired at the MultiState Lottery Association, Sue (Bilstad) Dooley has overseen the progression of draw services at MUSL for the past 34 years. The MUSL Board of Directors hired Dooley as a Draw Manager in 1988 when the Association had seven member lotteries and one weekly drawing for Lotto*America. Since joining the Association, Dooley has administered more than 35,000 lottery drawings on behalf of MUSL, including the Powerball drawing for the world record $1.586 billion jackpot in January 2016. During her tenure at MUSL, Dooley has witnessed the draw processes evolve from lotteries faxing sales and winner information on paper to the implementation of secure websites and automation. MUSL’s draw schedule has also grown from one weekly drawing to multiple drawings performed every day of the year. Along the way, Dooley has been instrumental in drafting draw procedures for Powerball and other Association games. In addition to scheduled drawings, Dooley also manages MUSL’s emergency draw services and has performed every remote drawing for the Association, including the Powerball drawings at the Atlanta Summer Olympics, the Kentucky Derby, and most recently, the Powerball First Millionaire of the Year drawings on Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest on ABC. As the Director of Draws and Productions, Dooley is responsible for testing and maintenance of all draw-related equipment and ongoing work to improve the draw process for MUSL and its members, along with continued performance of draws. Over the past 34 years, she has worked with hundreds of lottery officials from across the country in every department: drawings, information security, accounting, marketing, and communications. Dooley earned a bachelor’s degree in elementary education from the University of Northern Iowa in 1984. Her experiences reacting to the chaotic nature of the classroom prepared Dooley for the occasional draw night challenges.

9 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 WLA AND EL STATEMENTS ON THE WAR IN UKRAINE World Lottery Association (WLA) Statement: The world has reacted to the unprecedent invasion of Ukraine by Russia aided by Belarus. The United Nation’s General Assembly on March 2nd overwhelmingly denounced the actions of these governments as an aggression, violation and abuse of human rights, calling for the immediate withdrawal of military forces from Ukraine’s internationally recognized borders. But it is not only the quasitotality of the world’s nations who have reacted to the horrors, global industries have as well and we are no exception. WLA members have ceased taking bets on Russian and Belarusian leagues and games. The WLA supports these measures and has also taken action. The very principles on which the WLA is founded; territorial integrity, public order and morality are being called into question. Our By-laws clearly establish that a WLA member, in order to obtain and retain its membership must not only respect these three principles but also contribute to the respect of fundamental human rights. WLA members counted one Russian lottery JSC Technology Company "Center" as well as a Belarusian lottery CJSC Sport Pari. Consequently, the WLA Executive Committee at its March meeting, in compliance with its By-laws, suspended the membership of JSC Technology Company "Center" as well as CJSC Sport Pari with a recommendation for their expulsion to be submitted at the next WLA General Meeting in October. This means that as of March 17th JSC Technology Company "Center" and CJSC Sport Pari have lost all the rights and privileges associated with WLA membership; notably they no longer appear on the membership list, have no representation nor voting rights and no longer have access to any and all WLA activities and events including the member only section of WLA’s online presence. They have been appraised of this. Our thoughts and prayers are with Ukraine and its people. The bravery they have shown is an example for all. EL Statement on the war in Ukraine: As part of the global community, the European State Lotteries and Toto Association (EL) is deeply concerned about Russia’s reasonless invasion of Ukraine and the resultant threats to peace, humanity and stability. EL and its Members condemn the war acts of Russia against Ukraine. A true value of the EL Membership is to stand united for the benefit of society. As Ukrainian society is under violent attack, EL and its Members stand united against this war, call for peace, and share their solidarity with the EL Members in Ukraine and the people of Ukraine. The situation has compelled the EL Executive Committee to recommend EL Members to stop taking bets on Russian and Belorussian teams and leagues. Furthermore, it has made the decision to suspend the membership of its Members in Russia and Belarus. EL and its Members call for the immediate ceasing of the war and invasion by Russia on Ukraine and to instead build peace and dialogue. EL investigates the possibilities of further humanitarian support for the victims and refugees of this war. A Plea for Solidarity and Resistance A letter from Evgeniy Vlasenko, Vice President, MSL Lottery Ukraine to Paul Jason Dear Paul, Several times we have together dreamed of a better future for Ukrainian Lottery. Today the point is not about the lottery, it is about the bloody war that Russia and Belarus are waging against my country. This is the biggest war in Europe since 1939 when WW2 started. And the style of terror is the same. The Great Patriotic War in 1941 (when the USSR was attacked by Germany) started with air raids and bombing of Kyiv. The same is happening right now at 4 am. We are in the 21st century, and nothing changed! Why couldn’t we change? And again, mass heroism of Ukrainians as it was in 1941. I have the evidence that shows how Russians are using armaments forbidden by conventions to fight against civilians and simple people, killing kids and their mothers, not only soldiers. They shoot into schools, into children’s play yards, kindergartens, and hospitals. And during this same time, Russians are told by their TV and other media, and children are told at their school, that Ukrainians are Nazis and who need to be destroyed. They are told that Ukrainians are killing Ukrainians and so therefore Russians can kill Ukrainians. The world needs to know truth! This should be considered a warning for the entire world as Putin can start WW3 if we do not resist. The world needs to join us in our resistance now. Thank you, Paul, for sharing this plea for solidarity and resistance with your readers. I hope they listen because we all need to stand up boldly and shoulder to shoulder to spread truth and act together to fight against this evil.

10 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 PGRI Introduction: Romana Dernovšek, President & CEO of the Slovenian National Lottery, has more than twenty years of experience in business leadership positions, designing strategies and organizational cultures, developing people and new businesses. She has been trained in Business & Marketing at the Management Centre Europe in Brussels, holds a degree in Organizational Sciences/Human Resources from the University of Maribor, and is a certified Supervisory Board Member of the Slovenian Directors’ Association. More recently, she upgraded her executive education with a certificate in Circular Economy and Sustainability from the University of Cambridge. She is the Director of the Association of Lotteries active in territories of former Yugoslavia. She was awarded by the Manager’s Association of Slovenia for her contribution to the development of female management and diversity at leadership positions. She volunteers as a guide of a rescue dog and is a licensed missing person rescuer. Romana advocates progress, cooperation, sustainability, integrity and bettering the lives of everyone connected to the lottery business. PGRI INTERVIEWS Paul Jason: Susan and I were so looking forward to meeting you at the celebration of the 580th anniversary of the first lottery in Bruges. R. Dernovšek: There were some cancellations like yours, but it was still a wonderful event. Three days of activities to commemorate the invention of lottery in Bruges almost 600 years ago. There are records which report in detail the circumstances which inspired the idea to hold a raffle to raise funds to support a goal shared by everyone, a lottery to support the common interest of society. The exhibition was fabulous, the festivities enjoyed by hundreds of locals as well as those of us who work directly in service to the lottery and government. We are all very grateful to Jannie Haek (CEO of Belgium Lottery) and his team for his vision to revive and promote the history and the essence of the lotteries. The human quest for meaning is frontand-center now. The history of lottery in Europe is so storied, and it’s great that the Bruges celebration made it come alive for us like this. R. Dernovšek: The most valuable companies in the world all have a compelling story to turn their customers into fan-clubs. To me, the mission of Lottery is a better story than any of them because ours is not just a story. Our mission to serve society, to lead in RG (Responsible Gaming) as well as Sustainability and CSR (Corporate Social Responsibility), to affiliate with the broadest range of stakeholders imaginable – which is everyone, not just shareholders – is who we really are. Many companies have great products, but their brand is embellished with a great story that does not necessarily have much to do with the products themselves. Lottery exists for the purpose of serving society. We are truly one with our story. That is what was so thrilling about the celebration in Bruges. The essence of Lottery has not changed in 600 years. People were and still are collecting funds for a common goal and at the same time change someone’s life on the basis of pure chance. That timeless, steadfast presence is a testament to the authenticity of our mission. Our story resonates with society because it is genuine. Our product and mission are truly one with our corporate “story”. The celebration of the 580th anniversary in Bruges celebrated a game that people love to play – can you think of WHAT’S YOUR STORY?? Romana Dernovšek, President and CEO of Loterija Slovenije d.d. The European Lotteries 2nd Vice President and Supervisory Chair of the Responsible Gaming and CSR Working

11 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 Digital Partner for Lotteries any product with a life-cycle of more than half a millennium? But it is Lottery’s mission of service to society that has kept the brand, the products, and the business so alive and relevant for hundreds of years. Do players value Lottery’s mission to serve society and good causes? Or do people really only play for the opportunity to win a jackpot? R. Dernovšek: I think that is a false dichotomy. All state lotteries in Europe dedicate most of their GGR to public causes. They are a key source of finance for organizations that provide services for social purposes, sports, the disabled and the disadvantaged, health, culture, heritage and more. In 2020 members of EL collected 16 billion Euros for good causes. The fact that the motivational driver is to win a jackpot does not mean that the role of Lottery as leader in CSR with a mission to serve good is not integral to the brand, the message, and the playing experience itself. Are you buying a Tesla because you like the car or because you affiliate with the values of the community of Tesla drivers? It’s both, of course. You wouldn’t buy it if it wasn’t a good car; but the fact that it is a good car isn’t really what motivated you to buy it. There are lots of good cars. The Tesla driver is buying into the shared experience of affiliating with millions of other Tesla owners with like-minded values. Apple makes great consumer products and Starbucks makes great coffee, but their success is based on a consumer connection that goes deeper than the specific attributes of the product. These companies combine great products with great stories. Like you said, people are looking for meaning, perhaps now more than ever. Successful companies know this and that is why they stretch to integrate a compelling story into their brand. And now social media has elevated the importance of meaning, purpose, and affiliation. People share their brand preferences, their likes and dislikes on all manner of topics and products, with everyone. We want others to know who we are and what we stand for. We want to be a part of a like-minded community. Behavioral economists have shown how our decision-making is driven by a multitude of factors, very few of which are “rational”. Sure, the Tesla is a good car, the Apple a good computer, Starbucks a good cup of coffee. But the real buying impulse is driven by other factors, like the values, ethos, community that the products represent. And unlike these other consumer products, these values are already baked right into the Lottery playing experience. Or at least they should be. We need to appreciate the value that our “why” The next generation of consumer is more sophisticated, more capable of recognizing authenticity and truth and seeing though marketing hype, and even brand ‘story’.

12 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 represents to the modern consumer, and find ways to make it come alive for the players, to make it be a part of the player experience. And from an emotional point of view, who doesn’t want to play the lottery? So, how can we connect the dots such that players affiliate with all the values that Lottery represents, causing them to feel good about playing the games, feel good about being a part of a community of millions who play the lottery? R. Dernovšek: The key to connecting the players with all the values that Lottery represents is to unlock the potential of all of us who work within this industry. We need to start with ourselves, engaging all employees and lottery professionals to fully embrace the worthiness of our mission. It’s not just about being good ambassadors for lottery. The next generation of consumer is more sophisticated, more capable of recognizing authenticity and truth and seeing though marketing hype, and even brand “story”. We need to be the ones who genuinely live our cause. It is that strength of purpose and conviction that will inform the way we do business, the way we develop games and promotions and brand messaging. It informs all aspects of operations too – logistics, distribution, fulfillment, etc. – in ways that may not seem to directly shape our brand, but do in fact shine through to our audience. And insofar as CSR and support of good causes is in our own DNA, that will translate naturally into the work we do to produce the best player experience. It’s not enough to have a well-crafted 4-sentence company mission statement? R. Dernovšek: Well, you need to start somewhere but effecting material changes in the culture is definitely a lot more than a nicely-worded mission statement. It’s about everyone working together to inspire one another to truly embrace the mission with all their hearts and minds to unlock the potential of the organization to become much more than the sum of its parts. The culture supports everyone in their quest to be the best they can be. These aspirational goals may be easier said than done. But this kind of organizational cohesion is galvanizing successful enterprises all around the world to reimagine what can be accomplished and achieve so much more. It may in fact start with an inspiring and on-point mission statement, which lotteries already have. Translating that into a cultural reality - our values, our ethics, our principles and high standards - that we live up to every day produces genuine value for the players and stakeholders. Collecting funds for public good is our cause. But that still only tells us where our money goes. It tells us nothing about how we came to earn that money in the first place. Was it by taking care or our players’ wellbeing? Was it by taking care of our employees? The environment? Our impact on society as such? Was it by doing business with integrity? Demonstrating all of those is showing our values and our dedication. That is what builds communities. Let’s work together to make lottery represent something positive and meaningful for every player and nonplayer. How have your studies at the University of Cambridge on circular economy and sustainability shaped your perspective as chair of the EL Responsible Gaming and CSR Working Group? R. Dernovšek: Compared to the linear economy which uses natural resources for mass production and disposes these products after a single use, circular economy is a bigger picture philosophy that sees everything we do in an endless 360-degree cycle. It’s a systemic shift driven by design, aimed to keep products and materials in use for as much as and for as long as possible, eliminate waste and pollution and regenerate nature. It is also an economic system for business to be more efficient, more resilient, bringing new business opportunities. Instead of focusing on traditional calculus, circular economy and sustainability interventions can generate revenues, reduce costs, grow profit, improve cash-flow and financial ratios, grow value of our brand and improve share price. Yes, sustainability is a call to action to protect the planet and ensure societal inclusiveness and prosperity for all stakeholders, but it is at the same time a great vehicle of progress for the companies. It’s a business imperative. Lotteries are no exception. Besides caring about wellbeing of people in the working place and impacting the environment, our key externality to overcome is preventing addiction. By protecting minors and preventing excessive play we protect peoples’ health. All this deliver meaning to the talented employees within our own corporation. People value being a part of something they can believe in, an enterprise that not only shares their values but is invested in changing the world for the better. Sustainability includes all aspects of design, including the organic integration of employee morale and motivation with the value of the products and service and the mission and purpose of the enterprise. Are consumers willing to pay more to support brands with a stronger commitment to CSR? R. Dernovšek: Yes. Consumers have indicated that they are willing to pay more to buy brands that reflect their values. And recent research indicates that the next generation of consumers is more willing than previous generations to truly walk-the-talk. Not only do consumers say they are willing to pay more, their commitment to supporting CSR is reflected in their actual buying behaviour – they are paying more to support a good cause. Patagonia, Veja, Tesla are companies whose products cost more than other comparable brands. It is not easy, though, to build a story around your brand that is authentic and resonates with your audience. And it takes time. Lottery’s brand is authentic – service to society, integrity, and fun is actually who we are. Lottery does resonate with the consumers – I think that has been demonstrated over the last twenty months of disruption especially. And we have been building our brand and our reputation for 580 years. People value being a part of something they can believe in, an enterprise that not only shares their values but is invested in changing the world for the better.

13 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 Automated Campaign Management Omni-Channel Lottery Tools Real Time Data & Extensive APIs Lottery • Casino Sports • Bingo Poker Personalized Experience for Retail Web & Mobile Digital Partner for Lotteries Management 360o Player Account The thing is – sustainable design does not need to cost more. Just as commitment to quality may appear at first to increase costs, but the net long-term effect of doing things right is a reduction in costs as well as an increase in value to the consumer and sustainability for the benefit of all. And the next generations of consumer are more sophisticated when it comes to discerning authenticity. There is no alternative than to live and breathe your dedication to sustainability. Of course, it needs to be thoughtfully integrated into the brand and even marketing communications. But generation Z and beyond are very unreceptive to anything that does not ring true. And their source of information and guidance is not messaging from the brand, it’s communication with each other, which flows in non-stop unfiltered torrents on social media. So there is no alternative to making it real. Lastly, while we do want to do the research and base decisions on evidence and data, we also need to realize that we will never have the whole picture. Decisions are always made with incomplete information. Industry leaders must have the vision and fortitude to make those decisions and forge ahead with confidence. It occurs to me, though, that we should emphasize that everyone is in a position to lead, to take ownership of their own actions and ability to effect change and positive results. You don’t need to be the loudest person in the room to be an effective leader. We are all working together on this, engaged in the business of making the world be a better place. Over the last twenty-plus years, the EU Commission has chipped away at the authority of member states to decide how they’re going to regulate gambling and lottery. Recently though, have they become more respectful of member states’ rights to decide the best regulatory framework for their own country? R. Dernovšek: I believe European Court of Justice (ECJ) has taken fewer “infringement” cases in which operators claim the government regulations are in violation of EU laws. The subsidiarity principle (i.e. authority to determine some matters of policy, like regulations of gambling and lottery, should reside with the memberstate, not with the EU) is the position of the EU Commission and the ECJ. There needs to be a consistent application of the laws and regulations and they do need to comply with EU laws. But member-states are entitled to a high degree of autonomy to ensure that regulations are consistent with their own gaming culture, public policy objectives, and preservation of Public Order. The balance between that and the principles of free-market competition and open borders was leaning too much the other way over the last twenty years and we hope it is leaning back in the direction of respecting the authority of member-states to determine the regulatory policy that is best for their citizens. Member-states have the right to manage the social costs of gambling and lottery and the manner in which the profits are channeled to help society as opposed to enriching private shareholders. The political and economic cultures of the EU are extremely diverse and should not be expected to all operate in the same way. The Slovenia gaming culture and market-place is nothing like that of the U.K or Denmark. Lottery or sports betting or gambling is not “just business” and shouldn’t be treated as such. It’s an economic activity with a particular nature, that should put people first and at the same time provide means for public good. RG, CSR, and integrity are the highest values for members of the EL and WLA. A member state should reserve the right Continued on page 55

14 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 With many decades of lottery marketing behind us, EL and WLA brought together 370 participants to celebrate 20 years of their annual iconic marketing event, normally held in London and seen as the opening of the new lottery year. Moderated by EL Secretary General, Arjan van’t Veer and WLA Executive Director, Luca Esposito, for the second year in a row the event had to take place online. EL President Hansjörg Höltkemeier and WLA President Rebecca Paul opened the webinar highlighting how marketing has evolved over the last two decades. Technological advancements, innovation, behavioural change, responsible gaming and sustainability have all had a fundamental influence on marketing trends. During the pandemic, we can even say there has been a revolution in marketing. Partial or full closures of retail outlets and national lockdowns all had differentiating effects on the game verticals. Lotteries put contingency measures in place and found innovation solutions to continue regulated services to their players. The online channel was further developed as a safe alternative with popularity continuing to grow in the post pandemic era. Marketing strategies have continued to be adapted to support society both financially and non-financially. Opportunities and challenges of course remain but the past years have shown the versatility, flexibility, and efficiency of national lotteries. TWO DECADES OF THE BIGGEST LOTTERY MARKETING TRENDS Ray Bates, Honorary EL President outlined a shift in marketing trends during his Keynote speech. From Amazon and Google in the late 90s to Facebook, LinkedIn, Twitter, Youtube and more recently Instagram, Snapchat and TikTok, the development of social media platforms has played a role in changing advertising and branding, also in the lottery sector. The attention span of individuals is much less and nowadays society and culture often dictate what ‘’matters’’ and happens in branding. As ‘’Cultural Branding’’ depicts a lifestyle that is culturally relevant to the brand audience, it has become more relevant, especially during the recent crisis where society falls back on ‘’culture’’ to influence decisions. According to Ray, ‘’ in 20 years, lotteries have shown resilience, innovation, and creativity, but within constraints of regulation, responsible gaming for the good of society. In the words of Leonardo da Vinci, lottery is like Art. Art lives from constraints and dies from freedom’’. POST PANDEMIC ERA: THE GREAT MARKETING OUTLOOK 2022 The webinar was enriched by discussions with CEOs from lotteries and suppliers. Moderated by Ray Bates, the panel with lottery CEOs - Gretchen Corbin, Georgia Lottery, USA and NASPL President; Romana Dernovsek, Loterija Slovenije, d.d., Slovenia; Hansjörg Höltkemeier, Deutsche Klassenlotterie Berlin and EL President, Germany; Mario Musa, Hrvatska Lutrija d.o.o., Croatia, and Francesco Parola, IGT Lottery S.p.A., Italy – discussed interesting learnings BACK TO THE FUTURE! CELEBRATING 20 YEARS OF LOTTERY MARKETING SUCCESS

16 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 from the pandemic. All CEOs agreed that their lotteries have become faster in their operations, more flexible, efficient, and motivated. Company culture has also become more important, for example with employees learning to work in different ways, retailers adapting to the new situation and internal communications evolving. Regarding the growth of online play, this was not seen as an unnatural change, and it is agreed that additional players recruited to online play during the pandemic would stay. Although there will be players (generally older) who will revert back to their usual ‘’habits’’ for example returning to their usual retail outlines, online play will continue to grow in the post-pandemic era. Ray Bates concluded the discussion with how retail “omnichannel” can be criticised as a term, but digitalisation of retail is a reality and would continue to expand. The panel agreed that lotteries must provide more interesting support at retail, and responsible gaming would remain high on the agenda. Moderated by Rebecca Paul as WLA President, the panel with Suppliers’ Executives including Jay Gendron, Chief Operation Officer Lottery, IGT, USA; Patrick McHugh, Executive Vice President & Group Chief Executive Lottery, Scientific Games, USA; and Doug Pollard, Chief Executive Officer, Pollard Banknote, Canada, discussed actions being taken to ensure a sustainable industry that protects the environment and grows business responsibly, such as receiving WLA certification, adhering to the UN Global Compact, working on social programmes with employees and customers worldwide, and taking measures to reduce greenhouse gas emissions. It was agreed that collaboration between suppliers and lotteries to consistently advocate the industry’s responsible operations and support of countless good causes around the world will help regulators differentiate lotteries from other gaming operations when legislating, and strengthen the fight against illegal betting operators present in many jurisdictions globally. With the overall trend of digitalisation and the shift from broadcast advertising to one-to-one messaging, the panel highlighted the need for lotteries to engage closely and effectively with players to deliver the products players want and gain their loyalty. They noted the need to maintain point of sale advertising for retail, which is still very important, given the significant growth of instant ticket sales in many markets. They also reminded that they could help lotteries solve issues. The development of innovative solutions, such as an app for cashless payment of winnings, speeding up payments and addressing the issue that retailers have less cash on hand than in the past. FROM TV DRAWS, DIGITAL MARKETING TO RETAIL AND THE CUSTOMER JOURNEY The event brought together diverse and inspiring marketing campaigns to share with participants. During the three consecutive sessions, lottery professionals and experts from different national markets around the world, reflected on important marketing themes such as TV game shows and live draws, advertising, sustainability, and digitalisation as well as looking ahead to future marketing trends, challenges, and opportunities. El Gordo, the traditional annual Christmas draw by SELAE in Spain since 1815, tells a story all about the values of (Spanish) society – humanity, solidarity, and generosity. Presented by María Núñez, Journalist & Press and Communications Secretary at SELAE, El Gordo conveys heart-felt beauty to help us understand the underlying dynamics that make the game so powerful and uniquely important. The marketing is extremely clever as it focuses on the importance of sharing as the essence of the ‘’brand’’ as well as the power of emotion, family, friends, togetherness, hope, and love. Imme Rog, Chief Marketing Officer, Novamedia/Postcode Lotteries highlighted the importance of television to reach players. As the Postcode Lottery is 100 percent subscriptionbased (without points of sale) a sense of ‘’disruption’’ in the marketing strategy is often felt. Television is one of the most visible and fun ways to reach out to players, reinforced by the well know hosts and ambassadors. Regarding retail, Roger Soleim, Head of Omnichannel distribution at Norsk Tipping, focused on the state of play in Norway. Due to a rapid change in the market, there has been an increasing trend from retail to mobile. 90 percent of customers are already registered through digital channels which means Norsk Tipping digitalises the customer onboarding journey in retail as well. Concepts are tailored to different audiences and for different ‘’arenas’’. For example, the retailer receives a commission for a short time period if the customer plays through the digital platforms after registering with the RAY BATES ARJAN VAN’T VEER LUCA ESPOSITO REBECCA PAUL HANSJÖRG HÖLTKEMEIER Continued on page 51

18 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 P A N E L D I S C U S S I O N Long before offering eInstant and eDraw games online, the Pennsylvania Lottery was building a robust digital presence. A player’s club that collected data, including player locations and demographics, rewards for frequent play and ticket entry into an online site, and free-to-play games associated with key licensed games – these were all part of the lottery’s entry into the digital realm. So even before iLottery, the PA lottery was able to collect valuable data and use it to market to its players. So, what better person to lead a panel titled “The Digital Mentality of the Data-Driven Future” than Pennsylvania Lottery Director Drew Svitko. Drew and his staff understand the power of data and how lotteries should use it. It has certainly worked for them, especially now that the lottery is fully immerse in the iLottery world. “Let’s be honest, data is driving all of our businesses,” he said. “And look at the huge growth of companies like Facebook, Amazon, Netflix, YouTube, companies which are so effective at harnessing and applying the power of data. Even though not all lotteries are selling online, most are collecting data. One big question is ‘how do we decide which data is the most important to make business decisions?’” Helping guide the discussion through this, and many other critical data-specific topics, was a panel of veteran lottery experts: Trevor Allison, Marketing Manager, INTRALOT Richard Bateson, Chief Commercial Officer, JUMBO Interactive Andrew Crowe, SVP Business Development, Sightline Payments Merv Huber, Senior Director, Digital Growth Marketing, Scientific Games Brian Rockey, Director, Nebraska Lottery Merv Huber works directly with the PA Lottery on its digital lottery programs. Merv said you can never have too much data. “It’s all about taking stock of your goals and finding which data points are going to best help you achieve your goals,” he said. “What’s important is that you have the tools to actually make those data points actionable and the right experts who know how to use the data and tools together to achieve those goals. For example, in Pennsylvania, we use predicative analytics to score players on their likelihood of taking certain actions. And we customize these analytics so we can send personalized messages to these players. What percent likely is a player to take a certain action based on their recent frequency of play and past winning experiences? We use the data collected from dozens of attributes and put them to good use in our CRM program.” For INTRALOT, Trevor Allison takes the mountain of data he is provided and sifts through it for what is most valuable to his efforts to optimize the player experience. “Every morning I wake up with a brand new set of data that’s relevant to our customers and what it is that they’re doing,” he said. “We’re constantly testing to determine which data is best. We then use this data to send emails and push notifications through our Sales Force marketing tools. This allows us to control what messages we should send, what promotional message will generate more opens, higher click rates, etc. AI and predicative analytics is transforming our ability to convert raw data into useful business intelligence.” Sightline Payments, which works with lotteries on cashless payment and mobile solutions, collects data based on player purchases. Andrew Crowe explains how Continued on page 56 EXECUT I VE SUMMARY OF ROUNDTABLE DI SCUSS ION AT PGRI LOTTERY EXPO NASHV I LLE DATA AND THE “DIGITAL MENTALITY” ARE RE-SHAPING LOTTERY’S FUTURE “If we can optimize UX and UI in the digital space, there’s no reason we can’t take that same information and transfer it to the traditional lottery space.”

19 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 INSIGHTS INTO the gaming industry now need to be developed at unprecedented speeds. That’s why we have a robust team of experts stationed around the globe, monitoring new technologies, legislation, jurisdictions — you name it. As a market leader, we are equipped to handle whatever you can throw at us. That means meeting any challenge, from pre-compliance to market launch, sports betting to iGaming, anywhere in the world. Now and well into THE FUTURE

20 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 P A N E L D I S C U S S I O N Another holiday of recordbreaking online sales – both for home delivery and in-store pick-up - is further evidence of a trend that has been growing for a number of years: Consumers want the purchasing process to be easy and quick. And what is true for shoppers of clothes and groceries is also true for lottery purchasers. While the majority of lotteries continue to discuss an iLottery future, the traditional in-store retail experience is undergoing massive changes that have improved the shopping experience for players. And more advancements are on the way. Missouri Executive Director and president of the Powerball Group May Scheve Reardon moderated a panel discussion which delved into the various aspects of the modernization of in-store retail sales of lottery products. She was joined by: Max Goldstein, Vice President Sales - Americas, Carmanah Signs Gary Grief, Executive Director, Texas Lottery Matt Isaac, Senior Director, Lottery Marketing, Pollard Banknote Terry Presta, Head of Business, North America, Abacus Solutions Sara Taylor, Executive Director, Hoosier Lottery and President, MUSL As a lottery director and president of MUSL, Sarah Taylor is in a unique position to comment on lottery activity throughout the Unites States. She said that the economic and human resource shortages facing all businesses are also impacting lottery retailers. “Hiring is difficult. Both starting pay and gas prices are going up,” she said. “When we have a few good jackpot runs some retailers feel they don’t have the staff to help the people in line to purchase tickets. Retailers are looking to us to help solve the problem by making the in-store lottery experience more efficient. In Indiana, we equip our sales team with information to help the retail locations work more efficiently, perhaps by offering self-service. We see services like Door Dash and Instacart providing a great service to businesses. As more retailers go to ‘buy online and pick up in store,’ should we learn and engage how lottery can tap into this new channel of delivery services? There is a lot for us to consider and figure out.” Gary Grief agreed with Sarah that the retailers are looking to their suppliers and commercial partners for assistance. And that’s what his team in Texas is providing. “As we can’t do iLottery, sports betting or keno, our big focus is in-lane, and our sandbox is limited to traditional draw and scratch ticket products,” he said. “That actually helps us be very focused on how we increase the sales of those two revenue drivers. We recognize that every retailer is different, and each has a different footprint for lottery. We need to provide solutions to apply to each situation. We are working with vendors on different initiatives, such as the Quick Ticket solution with InComm which is a gift card type product for Powerball and Mega Millions. “At HEB Grocery we have integrated with IGT’s central system to sell the multi-state games on the checkout receipt. And we have partnerships with Blackhawk and Abacus to develop in-lane solutions with a other large retail chains. This allows us to go from one point-of-sales location in a store to multiple POS’s in a single store, some even exceeding twenty or twenty-five. I really think that in-lane solutions are the holy grail for traditional lottery products. It will be our main driver of growth.” As the former owner of a chain of convenience stores and former Executive Director of the Kansas Lottery, Terry Presta understands better than most the pressures faced by lottery retailers and how the industry Continued on page 54 EXECUT I VE SUMMARY OF ROUNDTABLE DI SCUSS ION AT PGRI LOTTERY EXPO NASHV I LLE THE FUTURE IS NOW FOR LOTTERY RETAIL MODERNIZATION “iGaming and sports wagering have changed how customers, retailers and legislators perceive the gaming landscape.”