Public Gaming International May/June 2020

46 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2020 TECHNOLOGY PARTNERS COMMENTARIES Doug Pollard, Co-CEO, Pollard Banknote Covid-19 highlights the importance of digital one-to-one engagement with players In a world of anonymous play, lotteries have long relied on broadcast media to reach players and remind them about draws, new games and generally encourage purchase. At the same time, the e ectiveness of broadcast media to reach players – especially younger players – has never been worse as people tune out traditional media. e COVID-19 crisis has added another layer of challenge to the use of traditional broadcast media. Namely, as lotteries are rightfully sensitive about their public image, and concerned about Responsible Gaming, it is challenging for lotteries to nd the right tone to use broadcast media to encourage lottery play during a pandemic. Many lotteries converted their ad spend into PSAs, reminding players not to make special trips just to buy lottery tickets or, in some cases, turning over their ad budget to the state for COVID-19 awareness. In some jurisdictions there were questions asked about how essential the lottery is, and whether the lottery should be selling at all during the COVID-19 crisis. Broadcast media, in such an environment, which encourages lottery play at retail, further risks damage to the lottery brand, depending on what is happening with the virus at the time. ese are not new concerns, but COVID-19 has certainly placed much more scrutiny than we’ve seen in the past on these issues. e solution remains for lotteries to develop digital one-to-one relationships with their players. e more we can encourage players to register with the lottery, the larger the base of people lotteries can reach with relevant messaging that players actually want to receive. Once lotteries have contact information for players, we can send them direct messages without the challenges presented by broadcast media. Lotteries today are seeing increased tra c to their websites and apps. We need to nd ways to convert occasional website visitors into registered players. e best way to convert visitors into registered players is to give them value for doing so. We can o er special promotions or coupons for registering. For lotteries with loyalty solutions, we can o er loyalty points for registering. An innovative idea we highly recommend is to o er redemption and mobile cashing of winning lottery tickets for registered players. Pollard Banknote customers like the Kansas Lottery, the Arizona Lottery and the North Carolina Education Lottery are seeing the return on investment (ROI) from digital engagement with players. Not only is this engagement far more e ective than broadcast media, it is also far more economical. And, of course, if you can build your registered player database, you are creating a highly valuable asset that can be further leveraged once lotteries begin selling via iLottery. Our iLottery customers in Michigan, New Hampshire, Virginia and North Carolina are all seeing signi cant increases in their iLottery sales during the Covid-19 crisis. ese iLottery increases have not made up for the loss of retail gaming, but they’re an important contributor to the lottery’s good causes, and they help to preserve the lottery relationship with their players. ■ Brad Cummings, Founder & CEO, EquiLottery Games As a company that supplies lottery games based on live sporting events, EquiLottery Games has certainly endured an “interesting” few months. Live sports will return and we’ll be ready. But the COVID-19 pandemic has changed the economy of the lottery industry. Reliable revenue streams are suddenly shaky and in-store distribution as the primary vehicle to drive sales needs to be reevaluated. As we look at how best to emerge from this di cult period, all games, distribution channels and payment methods will need examination. at begins with our agship games - Powerball and Mega Millions. When most non-core players think of the lottery, they think of these two games rst and foremost. But it's also no secret that these games have struggled due to player drop o in the early stages of the weekly jackpot rolls. We have no doubt these games will regroup and get back on track but it's a reminder to the entire industry that as society evolves, so must our game content and channels of distribution. Lotteries and lottery vendors need to see lottery as not just a way for states to earn revenue and players to win prizes, but as the ultimate distribution network. No other industry has the bricks and mortar reach of the lottery. at means that while lottery games will always promise cash prizes that doesn't have to be the only or primary draw to play. What other new game types are out there to broaden the lottery player base and diversify revenue opportunities? Our live sports lottery games are one such option partnering with some of the biggest names in sports, including MLB and the NBA. Online instant reveal games (e-scratch) are experiencing dynamic growth in multiple iLottery states with their engaging animations. And virtual sports combine the game frequency of Keno with the energy of a sporting event. But regardless of the direction you go as a lottery, we advise looking for ways to develop new gaming experiences that will keep our industry's game portfolios from being so reliant on the chance a jackpot won't get hit. is is also an incredibly important time for lotteries to evaluate their channels of distribution. While we all hope we can avoid another pandemic in the future, lottery has the ability to insulate itself to some degree from similar issues by moving to iLottery platforms. Whether lotteries adopt lottery operated solutions provided by the top vendors in our industry, work with courier services to allow the sales of their draw game portfolios, or both, we believe the future for lottery includes a robust mixture of in store and online options. ■