Public Gaming March/April 2024

Consumers are being entertained and shopping on social media. They’re exploring, making decisions and purchasing all on the same social media platform. A recent Forbes article indicated that social commerce is expected to grow 28% annually. Forbes predicts that 2024 will not be about paid advertising, as much as authentic moments the customer wants to see, which end in a “commerce moment”. In fact, 98% of customers surveyed by Influencer Marketing Hub plan to use social purchasing at least once this year, up from 68% last year. “The traditional shopper journey was disrupted years ago by consumers moving between retail and online for many kinds of purchases. U.S. lotteries are still in the infancy stage of maximizing that journey, yet now face the added complexity of social commerce. The ability for consumers to seamlessly purchase, in-the-moment, from a brand touted by influencers they trust, is here to stay. Lotteries need to harness this power,” said Jennifer Welshons, Chief Marketing Officer for Scientific Games. Retailers have the opportunity to partner with social media content creators – like the lottery – or create content themselves. For states where iLottery is permitted, opportunities for social media collaboration with retailers offer revenue opportunities. Where games are not yet sold online, retailer collaborations on social media provide additional reach for brand visibility. With the majority of consumers considering sustainability when they shop, it’s top of mind for retailers. Many have incorporated sustainability into their daily operations. In 2024, Forbes believes they’ll go deeper with their supply chain and manufacturers to keep their green commitments. Forbes predicts that 2024 will bring “green fatigue”, with skeptical consumers calling out brands who claim to be green but aren’t showing them “real actions” – what they’re doing beyond harming the planet. They want to know that the companies they purchase from are working on climate solutions and restoring damage already done. “We aren’t just talking the talk, we’re taking real steps to incorporate sustainable practices within our operations and entire value chain to minimize our impact on the environment,” said Andrew Jackson, VP of Environment, Social and Governance for Scientific Games. “This means retailers can rest assured that when their customers scratch an instant game from Scientific Games, it has been produced sustainably.” And like all sustainability efforts, communication is key. This means listening to what consumers want and demonstrating a commitment to continuous improvement beyond basic measures. Lotteries’ continued success at retail will come as a direct result of aligning their advancements with those that the retailers themselves are already experiencing. Change is never easy but will certainly make for more interesting – and productive – industry conversations. Susan Reda. “7 Retail Industry Predictions for 2024”, National Retail Federation, January 3, 2024, https://nrf.com/blog/7-retail-industry-predictions-2024 Lynn Petrak, “Younger Consumers Loyal to Self-Checkout”, Progressive Grocer, January 18, 2024, https://progressivegrocer.com/younger-consumers-loyal-selfcheckout?utm_source=swiftmail&utm_medium=email&utm_campaign=PG_NL_TechTrend&mkt_tok=ODI1LUxTUC01NDUAAAGQ-oMxAzrvw3ahckMJJuwksYDbRPD W8Ssja41r2jgmbFl3TUNm2QiHdMDkKC2mVz69kgKBIXIw-1JPuTmmh8wDL_GckIRjdtMhmCX3mnxOV618 Catherine Erdly, “Four Major Trends That Will Shape Retail in 2024”, Forbes, January 26, 2024, https://www.forbes.com/sites/catherineerdly/2024/01/26/four-majortrends-that-will-shape-retail-in-2024/?sh=7c61901b64a5 PlayCentral® Powered by SCiQ® and SCiQ® are registered trademarks of Scientific Games. © 2024 Scientific Games, LLC. All Rights Reserved. Social Commerce Sustainability Skepticism

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