PGRI March/April 2022 Public Gaming Magazine

33 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 discounted from a lottery perspective. Fewer in-store shoppers, or less frequent grocery store visits, ultimately means fewer chances for the casual player to buy a Scratch or jackpot ticket. So what options can lotteries provide to ensure everyone who shops for groceries, whether in-person or online, has a fair chance of buying a lottery ticket? At least one third of online shoppers tell us that they want another alternative. Among those who have started ordering groceries online and picking them up, 43% would like the option of adding a lottery ticket to their grocery pick up order, slightly higher than the 33% of those who would like to have a lottery ticket sent with their grocery delivery. The kicker? Those who want Lottery tickets added to their online grocery pickup order are the biggest proponents of their state lottery, with an average NPS mean score of 8.3/10, compared to a national average of just 4.6/10 . At face value, this appears to be the classic win/win, especially if these lottery promoters are given the tools to spread the word about their new method of buying Lottery without even having to set foot in store. For both of these potential lottery sales channels, some key groups are significantly more interested in having Lottery added to their online purchase, including key consumers groups, notably those aged 30-39 years old (56%10 are interested in home delivery) and those households with children (60%11). In terms of ‘adding Lottery to their grocery delivery’, the highest income group ($100k+) are the most interested at an impressive 49%12 (an over-index level of 150, compared to the average). Nevertheless, the next generation of Lottery players is going to be the most difficult to reach from a standard ‘retail’ Lottery perspective. Leger’s survey asked whether Americans would prefer to purchase their Lottery tickets via their usual retailer, online via their laptop/pc or online via their smart phone/Lottery app, the differences by generation were eye-opening, yet logical. Overall, the highest proportion of Americans would prefer to buy Lottery via a traditional retail outlet (35%), compared to 21% who would like to buy Lottery online, either online from home (17%) or via a mobile device (11%). There is a large crossover between these last two groups. The biggest disparity is unsurprisingly among the more tech oriented, youngest age group. Compared to older age groups, significantly more 18-29 year olds would choose to buy Lottery online (24%13) than in a regular Lottery store (16%14), with older groups the polar opposite, with 41% of 50+ year olds enjoying the in-person experience, compared to only 6%15 of these older Boomers who would like an online option. So, what does this mean for the Lottery industry? Quite simply, the industry has to ensure that the next generation of potential players has the option to buy Lottery in the method that is most convenient for them at the time and place. The COVID-19 pandemic has changed the way the ordinary American shops, with the total proportion of all shopping increasing to 15% (from 10% pre-pandemic) at its peak. This number is only going to rise as people’s habits have inextricably changed in the last two years. Compounding this is the fact that the competition for the discretionary dollar continues to widen, and that factor, coupled with the highest inflation rate (7%) since the Reagan administration, means the battle for that discretionary dollar is getting tougher. Currently, there are about 30 states where sports betting is now legal, including 18 that allow online sports wagering, dwarfing the eight states that currently have iLottery. This means more than 100 million Americans can place a legal wager where they live…and the crossover between sports betting and lottery, especially with the Lottery Scratch product, is notable. 84% of sports bettors purchase Lottery, a touch lower than the 89% of online

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