Public Gaming International Magazine May June 2023

• • + + • lt SustainablePlay �HGT. • \ • I ,.✓ ♦ - ♦ / ' 'ii' ,t Future Forward. Growth Driven. Player Card • I.!: � ◊ PLAYER ID: 82247391827311 1111 .,)IGT ilottery . • • • i,.. . . . . . . . . . . . . . . . . .. . . • • •♦ • • ••••• • • • • • • • • .A� • • 0 From R&D to our longstanding focus on sustainability, at the heart of all we do is a commitment to developing forward-looking solutions that accelerate responsible growth for our customers. to learn more. © 2023 IGT. The trademarks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors. IGT

4 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 Publisher & Chief Executive Of cer Paul Jason President Susan Jason Brand and Design Dan Eggers Design Lottery Industry Consultant Jim Acton Honored Founders Doris & Duane Burke Subscriptions United States: $145 USD Canada & Mexico: $160 USD All other countries: $225 USD For email address changes, subscription requests and requests to be placed on our e-Newsletter distribution list, e-mail Susan Jason at Contact Information PGRI, Inc. 1769 Flagstone Terrace, The Villages, FL 32162 T: +425.449.3000 F: +206.374.2600 Public Gaming International Magazine Published six times a year and distributed to readers all around the world. Electronic version is e-mailed and is also available on our news website: May/June 2023 Volume 52, Issue 3 ©2022 all rights reserved. Public Gaming Research Institute cISSN: 1042-1912 18 A Contemporary Perspective on Driving Lottery Growth Melissa Pursley Senior Vice President of Lottery Product and Sales Development, IGT 20 On Growing a Trusted, Global Brand and Business Robert Chvátal, Chief Executive Of cer, Allwyn Entertainment 12 The purpose of AI is to amplify human potential Dr. Ayesha Khanna, World Lottery Summit Keynote Speech 14 Planning Strategically for Disruptive Innovation and Digital Transformation Jim Harris, World Lottery Summit Keynote Speech 22 Truth and Integrity Matter: Scienti c Games Successfully Completes GLI Audit Scienti c Games 26 The Future of Lottery through the eyes of the player Michelle Carney, Vice President Global Lottery Marketing, IGT CONTENTS M AY / J U N E 2 0 2 3 F E A T U R E D I N T E R V I E W S 18 20 F E A T U R E D A R T I C L E S 36 26

Presentedby PubUc Gaming Research Institute PGRILOTTERY INDUSTRY HALL OF FAME Congratulations to the six newest members of the Lottery Industry Hall of Fame The 101 members of the PGRI Lottery Industry Hall of Fame have voted for and elected four industry leaders to be inducted into the Lottery Industry Hall of Fame for 2023. The Lottery Industry Hall of Fame was founded in 2005 as a means of honoring those who have done the most to promote excellence and integrity in our industry and make the world lottery industry the great success. The recipients of this award are all a credit to that ideal and are joining a select and distinguished group of world lottery industry professionals. Visit the "Awards" section of to read more about the Hall of Fame. Induction Ceremony The induction ceremony for the Mr Farris, Mr Kotter, Mr van't Veer will be held at EL Congress in Sibenik, Croatia on Tuesday June 6 (4:30 pm in the Main Hall); for Mr Cash, Ms Taylor, and Ms Welshans, the ceremony will be held at the NASPL conference in Milwaukee on or about November 1 (specific time and room TBD). We look forward to seeing you all there! Visit LotterylndustryHallofFame. com for info about the Hall of Fame and its members 10 PUBLIC GAMING INTERNATIONAL• MAY/JUNE 2023 PGRI LOTTERY INDUSTRY HALL OF FAME KEITH CASH Vice President and General Manager, Global Instant Tickets, IGT Keith's career in the Lottery industry started more than 30 years ago working nightshift on the manufacturing floor of Dittler Brothers (manufacturer of Instant Scratch-off tickets) and later moved to the same position at Scientific Games. From this entry level role in manufacturing, Keith consistently advanced through the ranks of Scientific Games. His career trajectory included positions in Production Control, Customer Service, Project Management, and Account Manager. Keith was appointed Regional Sales Director in 2004, Vice President of Sales in 2009, and Vice President of Operations in 2012 where he oversaw what was then known as the Cooperative Services Program (CSP). In 2011, Keith and his wife Fran relocated to Chicago where he led the first year of Scientific Games' Northstar Lottery operation. After more than 22 years with Scientific Games, Keith accepted a role with IGT as the Vice President and General Manager of Global Instant Tickets where he now leads a team of more than four hundred. Keith's impact at IGT was immediately evident, not only in the core growth of the instant product, but also as they continued to build their customer base with new contract wins. Keith's leadership of the IGT Instant Product operation has benefitted the entire industry by broadening the competitive landscape. KONSTANTINOS FARRIS Group Chief Technology Officer, INTRALOT Continued on page 40 Konstantinos is an accomplished and creative C-Level executive with over 30 years in both billion-dollar companies and start-ups, with multifaceted experience and impressive contribution to business formation and scaling up technological and operational developments in the Gaming, Fintech and Blockchain industries. Konstantinos started at INTRALOT in 1997. He combines business and commercial acumen with in-depth knowledge of the Gaming and the Fintech industries and in business leadership and cutting-edge technology domains such as loT, Blockchain, Cloud and Agile. He pioneered in wagering systems, such as the Blockchain Gaming Platform of Quanta and the INTRALOT's flagship LOTOS™ 0/S for licensed Lotteries and Betting Operators globally, as well as in modern e-payments such as the innovative e-payments platform of OKTOPAY He holds a Master's Degree in Data Mining and Data Bases, UMIST, University of Manchester and a Bachelor of Engineering in Computer Science & Informatics, Technical University of Patras, Greece. As Group Chief Technology Officer and member of the EXCOM of INTRALOT from 1997 to 2017, he led the company's technology to serve as the main driver for INTRALOT's global expansion and become one of the three largest gaming technology suppliers worldwide, while also leading the way in shaping technological developments and contributing to the improvement and quality of life in the communities in which it operates. In his tenure and with contribution to the ANDREAS KOTTER Chief Executive Officer, Westdeutsche Lotterie (Westl..otto), Germany Chair of the Eurojackpot Cooperation Continued on page 40 Andreas Kotter joined Germany's largest lottery operator Westdeutsche Lotterie GmbH & Co. OHG (WestLotto) in 2013 as member of the Executive Board with a focus on sales, IT and strategy. In 2016 he was appointed as CEO. Since then, his key responsibilities within the management team have changed towards more market-related activities. This includes all divisions of sales and marketing including shop-based distribution and online/ mobile sales, products, public affairs/ responsible gaming and corporate strategy. Prior to WestLotto, Andreas worked in the banking sector for more than 25 years. During that period, he worked for a local branch in the savings bank sector as well as in the international Investment Banking area with the focus on managing capital market risks. This expertise is today one important element in terms of understanding the business strategy of illegal operators in the gambling market. Before joining WestLotto Andreas was division head at NRW.BANK, a public development bank. His main task was to set up various product units and to work out a development strategy. During this time, he obtained a postgraduate diploma in "Advanced Management" with a focus on Transition at ESMT (Berlin). Andreas holds mandates in several institutions, such as ODDSET Sportwetten GmbH as Chairman of the shareholders' meeting, as a member of the "lnitiativkreis Ruhr", one of the leading business alliances in Germany and as member of the regional Continued on page 40

11 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 An accomplished leader with more than 25 years of public service experience, Sarah M. Taylor is the Executive Director of the Hoosier Lottery. Since 2013, Sarah has earned the appointment of two successive Indiana governors, leading the Hoosier Lottery through years of exponential growth for the bene t of many important causes throughout the Hoosier state. Her reputation among her colleagues has been marked by her active participation in several lottery industry organizations. Sarah currently serves as president of the North American Association of State and Provincial Lotteries (NASPL). She also serves on NASPL’s Retail Modernization Committee and Vendor Relations Committee. Prior to serving as president, she was 1st & 2nd vice president, treasurer, secretary, and Region III Chair. During her time at the helm of NASPL, Sarah has led the effort to update various administrative strategic plans in the areas of business, communications, government relations and responsible gaming/sustainability. She is immediate past president of the Multi-State Lottery Association (MUSL), which is comprised of 38 U.S. lotteries that oversee Powerball. She serves as chair of MUSL’s Mega Millions Game Group, Chair of MUSL’s Development Committee, and a member of the International Working Group and member of Marketing and Promotions Committee. She previously served as Vice President, Secretary, and Chair of the Finance Committee. In addition, she has served as Chair of MUSL’s Audit Committee. Appointed on 1 March 2017, Dr Arjan van ‘t Veer MSc has served as the Secretary General of the European Lotteries and Toto Association (EL) for six years. He succeeded Bernadette Lobjois after her retirement. Arjan was a member of the EL Executive Committee from 2013 until his appointment as Secretary General. He chaired the Legal Working group and the Responsible Gaming/CSR Working Group. He represented the Nederlandse Staatsloterij (The Netherlands), where he was the director of Corporate Affairs responsible for legal & regulatory affairs, public affairs and sponsoring. Arjan joined Nederlandse Staatsloterij in 1998 after he nished his doctorate on the regulation of gambling in the Netherlands at the Law School of the Erasmus University Rotterdam. He got his law degree in 1992 at the same university after which he started his PhD research in the eld of lotteries and gambling regulation. He played a leading role in the merger between Nederlandse Staatsloterij and De Lotto. He left the merged company (Nederlandse Loterij) to become the EL Secretary General. Arjan published several major publications aside from his thesis. He was asked by the Dutch government in 1996 to write a report on the possibilities of gambling via the internet. Arjan presented on several topics during all major gambling events. He is currently the chairman of the European Association for the Study of Gambling. On behalf of EL he is an observer to the ULIS Executive Committee. As EL Secretary General, Arjan professionalised the Association and the EL Team, introduced a Corporate University and, during the Covid pandemic, an E-learning platform. He built further on the existing seminars with the introduction of a successful EL Instant Games seminar and a webinar on Draw related issues. Under his guidance the EL statutory seat is moved from Switzerland to Belgium, enlarging the advocacy role of the associations within the European institutions. Arjan strongly supported the initiative to make EL’s Responsible Gaming Certi cation mandatory. He is a driving force behind the cooperation between EL and WLA as well as EL and other regional associations such as NASPL and ALA. Jennifer Welshons’ innovative marketing vision was evident 23 years ago when she joined Scienti c Games. Today, she is the company’s Chief Marketing Of cer and a member of the Executive Leadership Team. Jennifer has provided decades of committed leadership across the global lottery industry in the areas of analytics, research, products, services, channels, and game categories. Her leadership, focus and integrity are embedded in Scienti c Games’ analytical culture – the ‘science’ inside Scienti c Games. Her deep understanding of consumers, culled from thousands of research projects and sales analyses, has provided the industry with outstanding games and game portfolio performance. As CMO, Jennifer is responsible for global marketing and communications, including strategic product marketing, analytics and insights, business intelligence, company branding, advertising, customer and winner events, and global proposals – a critical component in the industry’s sales cycle. With executive oversight of the company’s global RFP process and bid responses, she synthesizes collaboration across the organization, integrating proposals, marketing and communications activities to align with Scienti c Games’ business strategy and help drive sales performance and growth for the 130 lotteries the company serves worldwide. Most recently, Jennifer was instrumental in the company’s sale to Brook eld Business Partners and helped create and launch Scienti c Games’ new branding and vision, mission and values, as well as ‘The Science Inside’ analytics initiative to raise visibility for the importance of data-based product marketing and innovation decisions to drive lottery performance. Jennifer helped establish many of the analytical tools, methods, and metrics used across the industry today. Her innovation in market research and consumer insights has established Scienti c Games as the global leader in lottery analytics and insights. Jennifer’s teams have pioneered breakthrough SARAH M. TAYLOR Executive Director, Hoosier Lottery (Indiana, USA) President, North American Association of State & Provincial Lotteries (NASPL) ARJAN VAN’T VEER Secretary General, European Lottery Association (EL) JENNIFER WELSHONS Chief Marketing Of cer, Scienti c Games Continued on page 40 Continued on page 40 Continued on page 40

12 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 Arti cial Intelligence (AI) has been one of the most exciting technological advancements of the 21st century, with its potential to revolutionize various industries, simplify complex tasks and improve our daily lives. As someone at the forefront of the AI movement, Dr. Ayesha Khanna, spends much time communicating that the purpose of AI is not to replace humans, but to amplify human potential. “What the past three years have shown is that we need to build resilient communities where technology is keeping us together and supplying us with the tools to thrive during di cult times,” she said. “What we have seen is that AI and other digital technologies actually make us stronger and more ready for di cult times, like a pandemic. In both the cities and rural environments, we can use technology to connect us and make us all safer and productive during any circumstances.” Dr. Khanna is the Co-Founder and CEO of Addo, a global arti cial intelligence solutions rm headquartered in Singapore and San Francisco. She was named one of Southeast Asia's groundbreaking female entrepreneurs by Forbes magazine and is a strategic advisor on arti cial intelligence, smart cities, and the metaverse to leading corporations and governments worldwide. Her clients have included SMRT, Singapore's most prominent public transport company; P zer, one of the world's largest pharmaceutical companies; Singtel, Singapore's largest telco; SOMPO, Japan's largest insurance rm; Habib Bank, Pakistan's largest bank; and Smart Dubai, the government agency tasked to transform Dubai into a leading smart city. Before founding Addo, Ayesha spent over a decade on Wall Street developing large-scale trading, risk management, and data analytics systems for leading nancial institutions. Ayesha is a member of the World Economic Forum's Global Future Councils, a community of international experts who provide thought leadership on the impact and governance of emerging technologies; and is the author of Straight rough Processing (2008) and co-author of Hybrid Reality: riving in the Emerging Human-Technology Civilization (2012). Ayesha said that at its core, the purpose of AI is to augment human intelligence by automating repetitive tasks, processing vast amounts of data, and providing insights that humans may not have considered. is enables us to focus on the tasks that require the skills and creativity unique to humans, freeing up time and resources for more meaningful work. is technology enables humans to perform their jobs better, faster, and with greater precision. And, in the end, live more fuller lives. Examples of how AI has changed our lives abound in the medical eld. In the world of nance, AI is enabling investors to analyze vast amounts of data to make informed investment decisions. As a tool to assist humans in their work, AI allows us to perform our jobs better and more e ciently. “ e advancements in medicine, thanks to technology such as AI, are incredible,” Ayesha said. “Let’s say you need an ultrasound because you have some type of ailment. You lie on a bed and are put into a huge machine and the results are fed to a bank of computers in another room. But how about if you could do all this at home? e machine is shrunk to the size of your hand, and it is connected to your smartphone. e Arti cial Intelligence in the phone will point to any issues and send an alert to a doctor, who then schedules an immediate appoint for you. No back and forth to doctor o ces, no waiting. Immediate results and actions.” e bene ts of AI address some of the world's most pressing problems, such as climate change, poverty, and disease. By automating complex tasks, AI can help us tackle these issues in ways that were previously not possible. For example, AI can process vast amounts of data from satellite Continued on page 43 THE PURPOSE OF AI IS TO AMPLIFY HUMAN POTENTIAL Following is an executive summary of one of the fabulous keynote speeches delivered at the World Lottery Summit Vancouver. Dr. Ayesha Khanna

14 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 Continued on page 38 When you’ve worked with the likes of IBM, Johnson & Johnson and MasterCard, and are one of small group of people in North American trained to teach Stephen Covey’s Seven Habits of High E ective People, you have a good idea of what moves consumers to support some products and reject others. While decades of data can help us plan, unforeseen circumstances – like a pandemic – can alter the path forward for even the largest companies. Jim Harris, one of North America’s foremost thinkers on disruptive innovation, observed how the pandemic demonstrated the need to be ready for any situation. In many industries, a decade of change took place in less than two years. As someone who leads strategic planning sessions for executive teams, Jim said the past few years have been a wake-up call for many companies about their business, their employees, and their customers. “ e changes we have seen since 2020 can be di cult to comprehend sometimes,” he said. “For instance, in December of 2019, Zoom had 10 million daily users. e pandemic hit and the Zoom software was downloaded 300 million times in just 90 days. How many companies do you know that in normal situations grew their customer accounts by a factor of 30? e fact that companies were able to handle this growth is incredible, but it also shows you the power of disruptive trends and events and how quickly they change our plans.” While the rapid change of the past three years has bene ted some companies, there have been unanticipated consequences for others. Take for example foot tra c in dense commercial areas. As the pandemic gripped the country and workers were sent home, many o ce buildings sat empty. “Even now, the CEO of IBM said recently that only 20 percent of IBM's U.S workers are in the o ce for three days or more,” Jim said. “Pre-pandemic there was 95 percent occupancy of commercial real estate in the U.S and then the pandemic hit, and it went down to 10 percent occupancy. Last October it was back up to 47 percent, which is still half of what it was a few years ago. And you know what that means for the lottery. Fewer people shopping at the convenience stores in or near o ce buildings, fewer people buying lottery tickets. And there really is no indication that the trend of remote work will change back to the pre-pandemic levels.” While o ce buildings and the businesses that support their workers struggle, e-Commerce companies have soared. Like Zoom’s rapid growth in 2020, Amazon has altered how we shop (yes, sales have attened in the most recent quarter). e online sales of top retailers such as Walmart, Target and Best Buy combined don’t equal Amazon’s mind-boggling levels. And it is the e-Commerce route through which many millennials and Gen Z-ers are buying their goods. “Credit Suisse recently reported that 100,00 U.S. retailer locations will permanently close because of the shift online,” Jim said. “Younger shoppers never want to go to a store, which means they won’t be exposed to lottery products at checkout, like most of us were rst exposed to lottery. So how will the next generation of players learn about lottery?” e way money is spent has also changed dramatically, a trend that started prior to 2020. For younger consumers, if they can’t a ord a house, they still have options beyond living with their parents. If they can’t a ord a car, they don’t have to walk or buy a bike. Between Airbnb and Uber, cost conscious consumers have options. “Airbnb recently reported that more than 25 percent of all Airbnb stays are now more than one month,” Jim said. “And given the work attitudes of younger employees, the company itself allows employees to work in one of the 170 countries where they o er housing for 90 days at a time. So they can live in Vietnam and work with their team in North America and after 90 days move to Germany for another 90 days, and so on. If you’re a millennial who worries PLANNING STRATEGICALLY FOR DISRUPTIVE INNOVATION AND DIGITAL TRANSFORMATION Following is an executive summary of one of the fabulous keynote speeches delivered at the World Lottery Summit Vancouver.

Science Inside The © 2023 Scienti c Games, LLC. All rights reserved. Scienti c Games’ enterprise gaming platforms deliver the industry’s most engaging games and promotions, and rich data that can be used to connect digitally with players and responsibly foster growth.

16 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 Nearly a year ago, the MultiState Lottery Association (MUSL) highlighted the leadership style that David Barden, New Mexico Lottery CEO, and Drew Svitko, Pennsylvania Lottery Executive Director, planned to bring to the organization as newly elected Board President (Barden) and Powerball Product Group Chair (Svitko), respectively. The duo labeled their style as “progressive product management” and brie y summarized it as “not stopping when you’ve had a good year.” “I always like to say, ‘Foot, gas, go,’” said Svitko. Well, one year later, their nose-tothe-grindstone approach is paying off. With sales of products facilitated by MUSL, including Mega Millions® sales by MUSL members, totaling $9.6 billion through the end of April 2023, the Association is set to shatter the previous scal year sales record of $8.1 billion – a record that stood untouched for seven years. We asked both MUSL leaders what they regard as big wins that have propelled the organization into a year of progress and record growth. Here are their highpoints… For President Barden, game sales are one component of measuring success, particularly in the national games category. He underscored the continuing dialogue between MUSL and the Mega Millions Consortium (MMC), which he said bene ts all lotteries that sell Powerball® and Mega Millions®. “Signi cant effort has been made by both organizations to be more transparent while keeping the lines of communication open,” said Barden. “We want MMC Directors to know how the MUSL organization operates. All lotteries that participate in the Powerball game have been invited to attend MUSL Board and Powerball Product Group meetings, and likewise with Mega Millions Consortium meetings. Both organizations have taken each other up on the offer to have representation at one another’s meetings.” Barden also noted a major technological advancement made by MUSL in the past year – the implementation of its new game management system known as FLEX. FLEX was developed in-house by MUSL software engineers to act as a central hub for all MUSL applications, speci cally applications related to the draw process. MUSL onboarded lotteries and vendors to the new system in phases over the fall and winter, and the bene ts have been immediate. FLEX has streamlined the process for reporting sales and winner data, enhanced communication between MUSL draw of cials and lottery draw staff, and bolstered MUSL’s product development initiatives. “The FLEX system is a reminder that MUSL has the ability to be truly innovative and a preeminent leader in the lottery industry,” Barden said. “It’s signi cantly improved our speed to market and given us the platform we need to roll out new products.” MUSL’s record sales year is largely due to the performance of its agship product, Powerball®, which set a new world record jackpot of $2.04 billion on Nov. 7, 2022. Time has shown that the addition of a third weekly drawing in November 2021 has met game leaders’ expectations of delivering bigger, faster-growing jackpots. In addition, the Double Play® add-on feature has expanded to three new jurisdictions (Montana, Idaho, and Nebraska) in the last year, bringing the total number of participating lotteries to 16, with at least ve more lotteries scheduled to add the feature later this year. “If lotteries are looking for a proven way to boost sales with relatively minimal effort and without cannibalizing other products, then they should strongly consider Double Play,” said Svitko. In the background, game leaders have been working to keep the Powerball brand relevant by collaborating with national partners that can help amplify the brand. This year, Powerball became an Of cial Partner of NASCAR®, which includes Powerball being named the “Of cial Lottery Game of NASCAR.” As part of the partnership, Powerball and NASCAR have launched a seasonlong promotion called the NASCAR Powerball Playoff, which will culminate with one lottery player winning a $1 million grand prize in a special drawing televised live from the NASCAR Cup Series Championship Race™ at Phoenix Raceway on November 5. “It’s pretty incredible when you look at the calendar; Powerball will have two national promotions with nales that will air on network television at the end of the year,” said Svitko. “We’ll have the NASCAR Powerball Playoff drawing on NBC, followed by our fth installment of the Powerball First Millionaire of the Year drawing on Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest on ABC.” Barden and Svitko recognized that many of this year’s achievements were made possible because of the foundation left by their predecessors, and its why they continue to lay the groundwork for new initiatives to support future growth. They stressed that it’s crucial for MUSL to continue building its technological infrastructure to support drawings and the development of new products. “The accomplishments that we’ve achieved this year were all part of the MUSL Strategic Plan,” noted Barden. “We’ve been working on some of these initiatives for 3-5 years, so we’ll continue to follow the playbook that has the support and approval of the MUSL Board of Directors.” n MUSLNEWS MULTI -STATE LOTTERY ASSOCIATION Drew Svitko, Executive Director, Pennsylvania Lottery and Chair of Powerball Group David Barden, CEO, New Mexico Lottery and President of MUSL PROGRESSIVE PRODUCT MANAGEMENT PAYS OFF MUSL SETS NEW FISCAL YEAR SALES RECORD

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18 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 PGRI INTERVIEWS Paul Jason: How has your 12 years of experience with major CPG (consumerpackaged-goods) brands (McDonald’s, Downy, Pringles, Cover Girl, Kraft) informed your approach to Lottery? For instance, do you think of the product as a game that is played or a consumer product that is bought? And is that even a relevant distinction? Melissa Pursley: e grit of managing CPG and QSR (quick-serve-restaurant) brands is incredible, and I’m so happy to have had that experience early in my career. It taught me the importance of brand positioning, ongoing innovation, and what that brings for your brand’s retail opportunities — and to listen to your consumers and the trends across the market. What I’ve been able to bring from that experience into my lottery service has been a clear focus on data as the key to e ective brand positioning – and driving for decisions that leverage both the science and the art to grow the industry. I’m not sure the distinction between lottery as a game that is played versus consumer product that is bought is relevant in the proposed way. I do think, though, that there is an important distinction between the way we talk to players and the way we talk to retailers. Consumers purchase lottery products for a very clear reason – a chance to win money and have a little fun. ey tell us that again and again, and this doesn’t change between player segments or geographical location. Retailers sell our games as a consumer good – they earn commission and have an opportunity to increase their bottom line. In my experience with the Hoosier Lottery at IGT Indiana, we spent time developing retail plans including merchandising standards, marketing programs, and key account promotions, which enabled retailers to earn increased commissions as sales increased. is also allowed the Lottery to place incremental point of sale, that we would not have gotten otherwise, to help drive player engagement. I believe retailers think of lottery as a CPG, but the players think of lottery as an experience to be enjoyed. I think we want to make sure we lean into the aspect in which lottery is much more than a CPG to players. We want to support that feeling of anticipation, the experience of playing a game, the spark of imagination and hope A CONTEMPORARY PERSPECTIVE ON DRIVING LOTTERY GROWTH Melissa Pursley Senior Vice President of Lottery Product and Sales Development, IGT PGRI Introduction: Melissa Pursley was recently appointed to lead IGT’s lottery product development and sales management team, reporting directly to IGT CEO of Global Lottery Fabio Cairoli. Melissa also serves on IGT’s Diversity, Equity & Inclusion (DEI) Global Council and is a co-executive sponsor of PRIDE with IGT, one of the company’s Diversity & Inclusion Groups — employee networks structured around underrepresented dimensions of diversity. Of course, we have known Melissa from her previous role as COO and General Manager of IGT Indiana on behalf of the Hoosier Lottery. While working on behalf of the State Lottery Commission of Indiana, Melissa had direct responsibility for managing the complex and successful relationship between IGT Indiana, IGT Corporate, and the Hoosier Lottery Commission. Melissa’s leadership helped grow the Hoosier Lottery annual revenue to more than $1.7 billion, with more than $346 million transferred to the State of Indiana in 2022 alone, while maintaining the highest level of responsible gaming certi cation from the World Lottery Association. With direct P&L ownership, Melissa led a team responsible for business functions including strategy, sales, marketing, product development and innovation, and a network of 4,500 retailers across Indiana. I asked Melissa to share her thoughts on moving from the operator side of the business to the technology and business-process partner side of the business.

19 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 that goes with wondering what you would do if you won the lottery. Then your career took you directly into retailing with the third largest grocery retailer at the time, SuperValu (SVU). What insights were gleaned from the process of building out their “shopper marketing” competencies? And what can lottery do differently to enhance consumer/shopper awareness of our games? M. Pursley: I remember one of my rst “big” meetings in my initial role at SVU. I was working within a team to build a shopper marketing competency for the company, which entailed building a framework for vendors (e.g., CPG, food companies and brokers) to pay into for added point-of-sale, marketing, and advertising space. I stood in front of a group of SVU merchants who didn’t know me, and basically told them that they were leaving money on the table – which they heard as “not doing their jobs.” I was basically kicked out of the room, and I spent time guring out how to show the value of the goal di erently. Several years later, as the company was nishing up a re-structure and company acquisition, those same merchants were highly concerned about how they were going to maintain the shopper marketing program within their supply chain. ey came to recognize the value that I had worked to show them, and over time came to adopt new practices. I share this story because it feels similar to the path of our industry at times. We can be slow to change; slow to recognize incremental opportunities that can ultimately become game changers. We have to continue to nd ways to communicate more e ectively with stakeholders as we look for support to drive innovation. Lottery doesn’t have a traditional “consumer awareness” problem. But there is still headroom to promote the broader diversity and extent of all that we o er, even if it is just to remind consumers of all the ways to have fun playing the lottery – di erentiated prize structures, extended play games, varying price points, exciting jackpot games. While there are plenty of opportunities in front of those of us immersed in the innovation journey for retail, it’s also important that we push, every day, for incremental enhancement of the placement of our products and our marketing. Retail Marketing Programs that reward retailers for following merchandising standards and planograms, increasing points of access in the retail space, and providing incremental marketing opportunities in their stores and across retailers’ own social media channels should remain a key focus. is is the path that IGT Indiana carved out on behalf of the Hoosier Lottery. When we joined the Hoosier Lottery through the Lottery Management Agreement, the average access point per retailer was 23. Today it is 41. Total access points have grown by 79,000, which means there are 79,000 more options at retail for players across the state than there were 10 years ago. One of my expressions, gained from my retail experience, is “you can’t sell what you don’t have.” In Indiana, we developed a laser-focus on new game retailer activation and out-of-stock management. e program is called “Full and Available,” and the team runs about a 97-98% rate of availability at retail for instants. And retailers receiving an initial launch allocation shipment had an overall activation rate of 99.52% in the rst 48 hours after game launch in April 2023, which is a consistently strong KPI in Indiana. Walmart recognized Hoosier as Best-inClass partner during your tenure. What were some of the things you did that were special and earned you that recognition? M. Pursley: Walmart determined where machines would go and how they had to look in terms of height and width. IGT invested in innovation, research, and testing to package the mechanics into an award-winning unit, and our teams continue to focus on the logistics of implementation and promotion. In Indiana, we focused on the data. Where would we launch the machines rst, what stores would get multiple machines, what was the ideal 20-game planogram for this retailer? en enters the science and the art of gaining awareness among Walmart shoppers. We invested heavily in ambassador events, and the team leveraged the data to ensure Full and Available rates and the appropriate 20-game planogram. How does the operator perspective differ from the “partner” perspective? M. Pursley: Working on both the operator and technology-partner sides of the business has given me an appreciation for the many di erences of perspectives. I have found that operators are receptive to insights acquired from multiple sources, including the experiences and data gleaned from other markets, if we relate the research, data, and insights directly to their own experience. We know that the operator knows their business and brings a perspective that the technology partner may not have, and we expect them to challenge us to address their questions about the way research, data, or experience gleaned from other markets apply to their particular market. en, even when we get clear consensus on the objectives, the approach to getting there can vary widely based on our di erent experiences, our di erent functional areas of expertise, our di erent corporate or organizational cultures, etc. At the heart of IGT’s value proposition is the science of analyzing the countless attributes and variables that determine the success of an initiative, product, or promotion, and driving business performance and success for the bene t of lotteries and good causes. at’s what we do. Our global footprint gives us a unique perspective on the industry, a wealth of data that informs the whole process, and a diversity of real-world experience to draw upon. It’s our job, the job of the technology partner, to align what we o er with the will of the customer, the state lottery operator. ey are the ones who know their market, their priorities, their goals, their political landscape – and we are dedicated to helping them accomplish their mission. You are now leading IGT’s incredible brain-trust that provides marketing and business intelligence leadership. What are the top-of-mind issues your team is working on right now? M. Pursley: I am indeed very excited to be working alongside such talented folks. ere are three key areas that we’re focused on to help drive growth to the lottery industry: thought leadership, portfolio and product optimization, and retail sales execution and innovation. On the thought leadership side, it’s about driving research and insights to help drive leading practices. But it’s always about really helping customers identify those consumer and retailer needs and bringing to them the most forward-leaning success strategies our industry has to o er. Continued on page 41

20 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 PGRI INTERVIEWS Paul Jason: Will Allwyn’s growth continue to be driven by lotteries? Will this change over time? Robert Chvátal: We are a lottery-led entertainment platform. e overwhelming majority of our revenues today come from running lotteries, and within that, drawbased games. We di erentiate ourselves by putting player protection at the heart of everything we do. We’re constantly working to improve our customer experience, including ways to support more vulnerable groups. And we have a compelling vision for the lottery of the future – one that is continually providing players with new and exciting ways to play, while focusing on innovation, e ciency, and safety. How will retail businesses survive alongside growth in digital-first lottery offers? And how do you build a seamless connection between the two platforms (based on Allwyn’s experience of modernising traditional, established lotteries in Czech Republic and Greece)? R. Chvátal: It’s true that online and digital channels are increasingly prominently, but there is still a major role for physical sales. We see the online and o ine as complementary channels, as both provide the consumer with options that work together to augment and enhance the player experience. Optimal player value is achieved by those players who play on multiple channels and enjoy the full variety of play-styles. Retail does not have to be a victim of digital growth. It’s still valued by consumers and so will continue to be an important part of our business, and our vision for the future of lotteries. We’re committed to helping our retail partners digitise their own businesses and grow. Physical retail also has a strong role to play in promoting the brand / lotteries, and a positive o ine experience will encourage players to go online (and vice-versa) – so they are very much complementary in our view. Land-based retailers have long been loyal and valued partners and we are dedicated to supporting their ongoing success. What is Allwyn’s approach to player protection? What progress have you made in this area, given it’s importance in most jurisdictions? R. Chvátal: Better protection for players is at the heart of everything we do, and we’re constantly working to improve our customer experience, including ways to support the more vulnerable groups. Allwyn has a proven record of building technology that encourages responsible behaviour and making our games safer for ON GROWING A TRUSTED, GLOBAL BRAND AND BUSINESS Robert Chvátal Chief Executive Of cer, Allwyn Entertainment Interim Chief Executive Of cer, Allwyn UK PGRI Introduction: Robert Chvátal’s appointment in 2013 to lead SAZKA a.s., operator of the lottery in the Czech Republic, set the stage for what would evolve into the global gaming enterprise that is Allwyn Entertainment today. Over the last decade, Allwyn’s lottery- rst approach of focusing on affordable, secure, responsible, and recreational play has earned it leading market positions with trusted brands across Europe in Austria, Czech Republic, Greece and Cyprus, and Italy. With the recent acquisitions in the United Kingdom and United States, Allwyn now has 120,000 points of sale and digital platforms, serving a market of over 130 million players with total amounts staked in the € double-digit billions. And going forward, Allwyn’s contract to operate the UK National Lottery Fourth Licence is scheduled to begin February 1, 2024. Its acquisition of Camelot Lottery Solutions puts Allwyn in charge of operating the Illinois Lottery. The global games-of-chance market-place is certainly changing, and Allwyn is poised to contribute to the healthy, sustainable growth of an industry that serves society and good causes. Continued on page 42

Science Inside The the Scratch *Based on weekly per capita sales MAP™is a trademark of Scienti c Games, LLC. © 2023. All rights reserved. Scienti c Games is the partner of choice for 18 of the 20 top-performing instant game lotteries in the world.*

26 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 The notion that “lottery isn’t appealing to young adults or those who are tech-savvy” may be a familiar one within our industry — yet it turns out to be a misconception. An analysis of recent data from IGT’s longtime research partner Foresight Factory indicates that lottery players embrace technology more than they’re typically given credit for. In fact, weekly lottery players outpace the general public in agreeing with statements such as “using voice commands on my smartphone,” “buying directly from a social media site,” and “interested in a 3D digital world where I could experience virtual activities.” The good news is that lotteries can access the technology, tools, and data to develop tailored marketing plans for both retail and digital that keep their product oerings top-of-mind for consumers like these. And it’s a strategy that other fastmoving consumer goods brands are adopting. “The finding about lottery players’ willingness to engage with technology aligns with IGT’s investment in solutions for both retail and digital that support the experience players expect,” said Michelle Carney, IGT Vice President Global Lottery Marketing. “IGT’s practice of studying consumer trends and related aspects of the lottery-player experience has informed our product roadmaps for years and helped us anticipate where consumers are going. That investment has led directly to the options that customers can take advantage of today, such as IGT’s Connected Play and OMNIA™ solutions. “We also understand from insights identified by Foresight Factory that consumers —and specifically, lottery players — have a heightened concern for their personal impact on the environment,” Carney added. “They want to a‰liate with brands that can prove their product claims around sustainability, and these stats rise with younger age groups. This is another reason we invest in solutions that continue to digitalize the player and retailer experience.” Following are some of the consumer trends Carney discussed at PGRI’s SMARTTech conference in Miami. IGT will expand on these insights at the EL Congress in Croatia and showcase solutions that lotteries can implement now to meet players where they are. Data As Currency Consumers have come to view their data as a form of currency, which they’re willing to exchange for other things they consider valuable, such as added convenience, free content, and more. Digitalizing the retail player journey is one major way that lotteries can participate in this value exchange. Recent consumer trends point to strategies that lotteries can adopt now to fuel ongoing player engagement.

27 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2023 For example, IGT’s Connected Play solution makes it possible for a lottery player who light-registers with just a name and password to unlock a more convenient and consistent journey at retail. With the resulting data, lotteries can in turn enhance that player’s experience with tailored recommendations, akin to Spotify and Amazon. Digitalizing the retail experience also supports the transition to digital playslips, tickets, and redeeming prizes in app, if players choose. “These options still aren’t widely available at retail, where the majority of lottery tickets are sold,” noted Carney. “But by transforming the retail journey, lotteries can begin to participate in this value exchange, regardless of their ability to sell online.” Micro Moments Given their busy schedules, consumers are turning to services specifically designed to engage them for small bursts of time – from social media content to popular streaming channels like TikTok. The mindset and expectation is that any “micro moment” – no matter how fleeting or on-the-go – can be filled with useful and entertaining activity. “The concept of ‘snacking’ characterizes this kind of consumer engagement,” said Carney, noting that a wide range of brands now sees the opportunity to o‰er consumers such micro-experiences. For lotteries, the o‰er might be a quick game of Keno, a new scratch ticket, or a digital version of a game on the player’s mobile device while they’re waiting for their vehicle to charge at a retailer with charging points. “Applications like this, which are just emerging in the consumer world, is why IGT developed the means for lotteries to integrate their retail and digital solutions,” said Carney. “These investments enable our customers to serve rapidly changing player need and be prepared for the future.” 360 Rewards The evolving retail lottery journey will ultimately lead to greater opportunities for lotteries to partner with retailers to create personalized 360-degree rewards programs. “As digitalization of retail continues to be more of a priority for all lotteries, player journeys can be segmented to encourage and provide rewards for activities such as checking a ticket or using an eWallet for purchase, swapping from using paper tickets to digital, and claiming a prize inapp,” said Carney. “The industry is aware of the importance of player segmentation for future growth, and now we have a new opportunity to understand it further.” Fact Finders In an era of misinformation and “deep fakes,” consumers want authenticity, while brands face a challenge to o‰er greater levels of transparency. Campaigns that highlight the benefits to society from lottery-funded purchases have always been a di‰erentiator, but historically it has been di’cult to reinforce this messaging through mass-media campaigns. Today, the growth of personalized communications from brands opens the door for lotteries to demonstrate their longstanding commitment to the local community through 1:1 communications. For example, where permitted by the regulatory framework, lotteries can enable in-app notifications. This personal touch can go a long way toward making players aware of the direct benefit to the local community and sustainability goals within a jurisdiction. And just as consumers increasingly value honesty and transparency from brands, they also have greater means to quickly research the authenticity of brand claims. Lotteries are uniquely and positively positioned to demonstrate the specific ways they support local good causes, something commercial operators and gaming competitors cannot do to the same degree. Pretailtainment Data from Foresight Factory indicates that consumers are extending their pathto-purchase. The term “Pretailtainment” blends the concepts of ‘pre-retail’ and ‘entertainment’ to reflect the habit of engaging with multiple touchpoints over a period of time when deciding what to buy — akin to digital window shopping. “Lotteries can harness the fun aspects of play by emphasizing excitement while players are in the Pretailtainment phase of their purchasing journey,” noted Carney. This is another way to generate interest and personalized content, as players can learn more about lottery anywhere or anytime they have an opportunity to engage on their mobile device. It’s also an opportunity to connect the personalized messaging to the lottery’s website and to a broader digital marketing campaign. “We know that 78% of weekly lottery players use a virtual assistant or smart speaker as part of their shopping journey,” said Carney. “Lotteries can take this into account and o‰er consistent messaging across all media channels.” n For a deeper dive into these trends, download IGT’s annual Trend Report, available at At PGRI SMART-Tech in Miami, IGT Vice President Michelle Carney discussed current consumer trends and what lotteries can do today to fulfill player expectations. Join IGT at the EL Congress in June for further discussion of the latest player insights around sustainability trends and what this means for lotteries and players, including the deployment of Connected Play and cloud computing.