Public Gaming Magazine Sept/Oct 2021

58 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2021 I f content is king, why are we all but ignoring a large percentage of the lottery's content catalog by focus- ing our innovation energies on instant games? Players love instants, so I'm by no means suggesting the ROI is not worth the effort, but when your category with the high- est margins is struggling, the an- swer should be to fix the problem, not ignore the product. We see a hole in the marketplace here which is why EQL Games has evolved into a company with a focus on improving the draw game category. Why are draw games struggling when the scratch product is surging? It comes down to three factors ... 1. ODDS OF WINNING While some draw games are designed to give frequent winning experiences (Hoosier Lotto and its 6 to 1 overall odds for instance), many ignore this important hook. Our flagship games – Powerball and Mega Millions – are among these culprits. In fact, the version of Win Place Show that we launched through the Kentucky Lottery had a gaudy 20 to 1 overall odds of winning. That's simply not good enough to create an entertaining product that brings players back for more. The one exception appears to be Numbers Games such as Pick 3 and Pick 4 which tap into an entirely different psychology. This is not the same thing as players not wanting to split a major jackpot. We're greedy by nature and when it gets into millions of dollars, who would want to share THAT prize? But you must create stickiness for repeat play. That can be best accomplished by giving players attainable overall odds. If you question the importance of winning, look at lottery sales of $30 or even $50 instant tickets. Why do players play those instant games when they could buy 3 - 5 $10 tickets instead? Top prize is important, but the overall odds of winning are often so good that players cannot resist. 2. CONTENT VARIETY Have you ever noticed that instant games are constantly switching in and out of the ticket case on the retailer countertop? If you go there today and then the same time next week, you are likely to see new instant games available for play. But when you look at the draw game catalog for a state lottery, you are hard pressed to find anything new. Offering the same games for many years (decades, in some cases) might work well for long-time lottery players. But we know that those players are loyal and will continue to buy lottery products. What we are missing is adding new players. Sure, some non- or infrequent players might buy a Powerball or Mega Millions ticket when the jackpots are high. But as soon as someone wins and the jackpot resets, we lose many (most?) of those players without the complementary draw games to keep them playing. What are the impacts of having the same catalog of draw games for 10+ years? - Complacency: Players become stagnant in their lottery purchasing - General lack of interest: Nothing new, no new players - Revenue shortfalls: Lack of growth means no new revenues One of the successes of casinos is that they offer something for everyone – slots, craps, card games, roulette. Taking a cue from casinos, lotteries should look at bringing an array of products to draw games. The draw game category must be able to rotate more frequently to stay competitive with other forms of entertainment. 3. IMMEDIACY OF RESULTS On the whole, draw games will always struggle to compete with the immediate gratification of instant games. While the Fast Play-type games stand as the current exception, if draw continues to include traditional numbers, jackpot, and lotto games, longer play style will always be a part of the draw game category. In fact, the draw category should not run from this differentiator completely. Powerball, Mega Millions, and Lotto games are fun to play largely because of the time you have between draws to dream about a big win. Numbers games are about ritual and tradition. I would be suspect of an instant win numbers game with the same winnability as the current retail product, often in the range of 60 to 1 overall odds. There are games that work in the traditional retail draw category that are counterintuitive to today’s trends. These are important games to any lottery’s portfolio. But the live event element of draw games can make this category about something more. Imagine a draw game you could buy at retail or on mobile based on quarters in an NBA game. Could you deliver a game that bases its results on every play of an NFL game or every pitch of an MLB game? Which players are you leaving on the table by not offering lottery action tied to the most recent episode of The Bachelor? Or who will win the Oscar for Best Picture? Draw games do not have to be constrained by the old rules of lottery. Finding new ways to offer draw is how lotteries will at- tract new players, particularly the coveted younger players of the future and increase profits in the future. n REVITALIZING THE DRAW GAME CATEGORY Brad Cummings, Founder & CEO, EQL Games | brad@eqlgames.com ; (502) 644-1454; eqlgames.com