26 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 simply an engaging experience? As Rebecca mentioned, the data you are provided is critical. Are you using that data to make relevant, quick decisions and pivot when necessary? Lotteries need to have a system and architecture in place that supports a complete digital mindset. If lotteries just take small steps, those small steps add up and you can just build from there.” NO iLOTTERY, NO PROBLEM With the majority of lotteries unable to offer the online purchase of lottery products, other digital avenues need to be explored. In Iowa, Matt Strawn has challenged his colleagues to do just that – create ways to use the Iowa Lottery’s online footprint to expand player interaction and data collection. “While we can’t sell products online our VIP Club is one of our greatest assets,” he said. “We have more than 123,000 members which is over five percent of every person of lottery playing age in the state. This has afforded us the ability to be more efficient and frequent in our communication. So I say to my fellow lottery colleagues who can’t sell online: “let’s focus on what we can do’ because often it can be incredibly impactful to the player base and revenue growth.” Rebecca added that lotteries now have the opportunity to redefine what a “traditional” lottery retailer looks like. “Now that so many of our retailers have an online presence, there really is no longer a traditional retailer,” she said. “Lotteries can work with the retailers to tap into their digital presence to expand the player base and achieve the cross-channel integration of digital and physical retail. This is known as unified commerce, where the customer is at the center of the retail experience and the product and merchandising are all tied into the same ecosystem. This approach can provide lotteries with a view of store visits and purchasing patterns and allows us them create online content and offers for each individual player digitally physically.” Even without online sales, a digital presence creates reams of statistics. Shannon said lotteries then have to decide what to do with that data. “Are the rights tools in place to successful turn the data into actions?” she said. “VIP Clubs are a critical piece of the online puzzle. Once it is in place, you need to have the tools that will allow you to grow your members and then execute your plan. Otherwise, you’ll have a bunch of data but no real way to use it.” Darrell pointed out that lotteries have a wealth of avenues for building the activity within their VIP Clubs, including using tools already at their disposal. “Personalizing the pathway to your digital offerings will only help increase the number of players you are servicing,” he said. “Finding opportunities within the sponsorships in which many lotteries participate will help you customize your offer to players. For us at Smartplay, we use the physical draw machines we provide to help lotteries move players to the digital world. Whether its festivals, state fairs or charity programs, the lottery machines attract attention that can then be leveraged to sign up players for online activity. We need to continue to find ways to move players back and forth between the brick and mortar and virtual worlds.” As Shannon pointed out, technological advancements have allowed lotteries to reach players anywhere and anytime, but the messages must be clear. “Marketers now know that with the omnipresence of smart phones, coupled with membership in VIP Clubs, we can send messages to our players at the optimum moments,” she said. “Beacon technology tells us when a player has walked into a store, and we can send them a message geared just for them, perhaps a coupon for a ticket. And this technology isn’t just in lottery retailers, it’s all over. So, for example, if a player is attending a sporting event and the lottery has a relationship with that team, we can send them a message that is personalized to the experience and a product. This is an example of using data collected through a player’s online presence to promote future purchases.” SPORTS BETTING IS HERE While many lotteries can’t sell online, sports betting is nonetheless offered in these jurisdictions. Matt said this is the case in Iowa, where online sports betting operators along with 20 commercial casinos are bombarding his state’s consumers with advertising messages and marketing promotions. “We can’t ignore the growth of sports betting but from a digital standpoint, are there opportunities for us (lotteries who cannot sell online) in the aggressive posture these groups take in customer acquisition?” he asked. “Should we be increasing our own outreach or do we build a moat around what we already have and try and keep these new entrants from poaching our share?” At Pollard Banknote, Shannon said they encourage their customers to not get distracted by outside “noise.” “First and foremost, it’s critical to retain your current base,” she said. “You still have to think about acquisition but protecting your current base is important. The sports betting and iGaming companies are buying large amounts of advertising and we have limited budgets. How do we compete? That is why the loyalty programs and players clubs are so important. You are collecting data and understanding who the consumers are and what they purchase so you can send them timely, relevant information and protect your base. We can’t outspend these companies – in Michigan when iGaming launched, the casinos spent more on advertising in one month than the lottery spends in an entire year. Lotteries can’t compete with that type of spend. But if you’re smart about your marketing and use the data you’ve collected, lotteries can absolutely compete with the sports betting and iGaming companies.” In Canada, the situation is a bit different because all gambling is controlled by the lottery. However, there is much competition from illegal operators and the steps they take to separate themselves from these entities can inform the actions of other lotteries. “We build that moat around our products by pointing out that everything we offer is 100% legal, backed by the lottery with state of the art RG measures", Lynne said. “We also focus on player acquisition and retention. This takes many forms, including working with our sports team partners and targeted advertising.” THINKING DIFFERENTLY Matt wrapped up the panel by discussing the Iowa Lottery’s work with some of their retailers. One in particular, a medium-sized convenience store chain, was interested in adding lottery to their curbside pickup offers. They have age verification technology for liquor and tobacco and believe that lottery can be safely added to their “Amazon-like” delivery opportunities. “When you have retailers reaching out to us about engaging on these types of changes, you Continued on page 57 P A N E L D I S C U S S I O N
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