42 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2023 The exploding popularity of eInstants Macro trends in any industry can profoundly impact market dynamics and strategic direction. The Lottery industry is no different and faces considerable and ongoing competition for the discretionary dollar. Lotteries have realized the need to embrace changing player behaviors to ensure their game portfolios and distribution channels remain relevant, attractive, and easily accessible to the consumer. One of the notable changes over the past decade has been the growth of iLottery, which includes Instant Win Games (also referred to as eInstants). In Europe, they have existed for nearly twenty years. In the U.S. there were eight Lotteries selling eInstants in FY22, generating approximately $2.6 billion in sales. In both Europe, the U.S., and globally, the popularity of online eInstants is expected to increase exponentially over the next three years. The recent growth and popularity of the Instant Win Game category in the U.S. is unsurprising. From a macro perspective, the US is among the largest e-commerce markets in the world. Smartphones have become the most used device to buy online (approximately 7% of total U.S. retail sales in 2022 (Statista). From a product/consumer perspective, they are similar in nature to retail scratch cards insofar that games can be played anytime, anyplace, and anywhere. It fulfils an instant gratification consumer need and is largely an impulse driven category. It’s clear from ZEAL’s ongoing conversations with iLottery operators and directly with the players themselves that players are seeking a more immersive, fun, and involving play experience with vibrant and entertaining game graphics. SMART PORTFOLIO MANAGEMENT PAVES THE WAY FOR A SUCCESSFUL ONLINE GAME BUSINESS PGRI INTRODUCTION: ZEAL introduced online lottery to the German market almost 25 years ago and has since become the market leader for online lotteries in Germany. Our aim in becoming member of the World Lottery Association and connecting with our audience in Public Gaming Magazine is to define the future of lottery – both in Germany and internationally. The ZEAL Group's business model is unique in many respects, encompassing numerous other business models in addition to online distribution in the traditional lottery sector. For example, the ZEAL Group has a Ventures arm for the segmented promotion of and investment in up-and-coming companies with innovative products, services, and business models for the lottery sector. With its subsidiary ZEAL Instant Games, the group successfully develops and markets eInstants and igaming products from the areas of Instant Win, Scratch and Slots; and now successfully implements the online marketing of the Spanish lottery ONCE with its subsidiary ZEAL Iberia. Through a network of international partnerships partnerships, ZEAL distributes its extensive portfolio worldwide, including North America). As Managing Director ZEAL Instant Games, Julian Tietz leads the virtual slot games and online games business at ZEAL. Previously, Julian worked for the last five years in various positions for ZEAL's portfolio of companies and launched the expansion of the company's online games division. Julian Tietz Managing Director, ZEAL Instant Games PGRI INTERVIEWS
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