34 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2022 gamblers. All these competitors are slowly becoming an integral part of consumers’ lives, through their handheld devices and other online methods However, a few key statistics appear to buck this trend, which could be very beneficial for lotteries in the short term. It’s the ease of lottery purchase at retail that appears to appeal more to the sports bettor (and also the online gambler). 19%16 of sports bettors purchase only from lottery vending machines (compared to the average of 8%), with 37%17 buying from both the lottery vending machine or the clerk in store (compared to 15%), giving vending machines a net of 56%18. A number of key groups rely on vending machines even more… the higher spending Scratch player at 63%19, and those using debit/credit cards more during COVID to buy Lottery, a whopping 69%20. And what of prices points? Leger’s research finds that 10%21 of past week Scratch players bought a $20 ticket, with 5%22 purchasing $30 or above, but this skews significantly higher among certain cross-over groups. (Cue Ferris Bueller’s teacher, “Anyone? Anyone??”). Households with children (13%23 for $20, 13%24 for $30+) are significantly higher than the national average for higher priced Scratchers, while $100k+ income households reach the dizzying heights of 15%25 for $20, 13%26 for $30 and 6%27 for the $50 ticket. When asked about their favourite Scratch ticket, patterns are relatively the same, with 24% of the $100k+ households stating their favorite is a $20 ticket or higher, compared to just 10% nationally. 17% of Sports Bettors prefer the $20 ticket or above, echoing other research which has shown the crossover between sports bettors and higher priced Scratch ticket players. Don’t worry, there is still some good news “in-store” for you! Despite the fact that the competition for the entertainment dollar appears to be widening, one stronghold for the Lottery industry are the Americans who have increased their shopping at convenience stores or grocery over the past two years. The in-person shopper leads all key categories for lottery play, including average weekly spend on Scratch tickets (both key lottery shopping avenues are above $50) compared to the average of $23. In-person convenience store shoppers are twice as likely to use a debit or credit card to buy their lottery tickets than the average American at 29%, and two-thirds of these shoppers are using debit/credit cards more often to buy lottery since the start of COVID-19. This same group has also migrated to using Lottery vending machines significantly more often during the past two years at an astonishingly high rate (67%), compared to the national average among Lottery players of 31% which, let’s face it, is still a big number. So what does all this information mean for our state lotteries. Simply put … 1. Ensure Lottery retailers are well stocked with the latest and most popular Scratch tickets 2. Guarantee that players (and especially casual players) can see the Lottery vending machine when they walk into the store. Lottery tickets cannot be sold if they cannot be seen. 3. Payments for lottery, especially on vending machines, should accept debit cards at the very minimum (yeah, I am looking at you New Jersey, my home state …) However, in-store options can be a doubleedged sword, as these same retail shoppers we need to ensure are happy and catered to also happen to be the highest ‘at risk’ segment for Lottery, as half of this group heavily over-index on other ‘competitive’ gaming and gambling. These ‘at risk’ Lottery players (50%) are three times more likely than the average American to ‘gamble at a Casino’, ‘bet on sports’ or ‘play fantasy sports’, so the fight for their discretionary leisure spend will become tougher and tougher as more states legislate for legal sports betting and online gambling. Based on Leger’s research, it appears the best way forward is to ensure the next generation of Lottery players is supported as quickly as legislation will allow, meaning iLottery in every state, and innovation in hand-held Lottery options. In the interim, we need to focus on fine tuning ways that the current core and casual players have access to Lottery products with as little effort as possible. This includes cashless payments and additions to grocery shopping, whether this is a Scratch ticket being added to a home grocery delivery, or a simple in-lane Powerball or Mega Millions purchase at checkout, which could possibly lead to quick wins in a rapidly changing post-COVID environment. Trust me – I am a researcher. n Simon Jaworski, EVP, Leger USA, Lottery & Gaming Research Guru
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