www.PublicGaming.com SEPTEMBER/OCTOBER 2024 The Closing of One Chapter and the Opening of Another in a Storied Lottery Career Technological Transformation and the Engagement of the Modern Player Dan Beebe, Chief Operating Officer, BCLC (Canada) Rebecca Paul President & CEO, Tennessee Education Lottery Corporation President, World Lottery Association Founder & Chair, Women’s Initiative in Lottery Leadership The 2024 Class of Lottery Industry Hall of Fame Renato Ascoli IGT Paul Erickson WCLC, Canada Jannie Haek Loterie Nationale Sam Wakasugi Scientific Games Nikos Nikolakopoulos INTRALOT Group Also Featuring …
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4 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 Publisher & Chief Executive Officer Paul Jason pjason@publicgaming.com President Susan Jason sjason@publicgaming.com Brand and Design Dan Eggers Design 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 sjason@publicgaming.com Contact Information PGRI, Inc. 1769 Flagstone Terrace, The Villages, FL 32162 PublicGaming.com 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: PublicGaming.com September/October 2024 Volume 53, Issue 5 ©2023 all rights reserved. Public Gaming Research Institute cISSN: 1042-1912 12 THE CLOSING OF ONE CHAPTER AND THE OPENING OF ANOTHER IN A STORIED LOTTERY CAREER Rebecca Paul President & CEO, Tennessee Education Lottery Corporation President, World Lottery Association Founder & Chair, Women’s Initiative in Lottery Leadership 30 IMAGINE A NEW UNIVERSE OF POSSIBILITIES IN LOTTERY DISTRIBUTION Simon Butler Founder & Chief Executive Officer, Abacus Solutions International Group 16 TECHNOLOGICAL TRANSFORMATION AND THE ENGAGEMENT OF THE MODERN PLAYER Dan Beebe Chief Operating Officer, BCLC (British Columbia Lottery Corporation) CONTENTS S E P T E M B E R / O C T O B E R 2 0 2 4 FE ATURED I NT ERV I EWS
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6 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 Visit Our Family Of Websites PublicGaming.com industry news & information PGRITalks.com videos of conference presentations PublicGaming.org PGRI conference information PGRIDigitalLibrary.com magazine archive of past issues PGRIDirectory.com listing of lotteries and vendors PGRIAwards.com Showcase of industry honorees recognized by the Lottery Industry Hall of Fame PGRI Lifetime Achievement Award Sharp Award for Good Causes Lottery Industry Statesman and Stateswoman Award Rebecca Paul Mentorship Award Collaboration Award Subscribe To Our Free Digital Newsletters Receive our daily newsletters at no charge, published 5 times a week to bring you the latest breaking news in the global lottery industry. Send an e-mail to: sjason@PublicGaming.com with “add to Daily Digest list” in the subject line. FE ATURED AR T I CL ES 8 FROM THE PUBLISHER Paul Jason 10 BIOGRAPHIES OF THE 2024 CLASS OF LOTTERY INDUSTRY HALL OF FAME INDUCTEES Renato Ascoli, CEO Global Lottery, IGT Paul Erickson, President and CEO, Western Canada Lottery Corporation (WCLC) Jannie Haek, Chief Executive Officer, Loterie Nationale (Belgium) Nikοs Nikolakopoulos, Chief Executive Officer, INTRALOT GROUP Sam Wakasugi, Vice President of Global Strategy, Scientific Games 47 PULSE OF THE INDUSTRY: Synopsis of recent gaming industry news 50 PROTECTING THE SOCIETAL ROLE OF LOTTERIES IN A TRANSFORMING WORLD Philippe Vlaemminck and Dawid Muller, Vlaemminck.law D E PA R T M E N T S 20 FROM A VENDOR PROVIDER TO A TRUSTED BUSINESS PARTNER INTRALOT 22 DIGITAL LOTTERY IS ABOUT SO MUCH MORE THAN SELLING LOTTERY TICKETS ONLINE Kelley-Jaye Cleland, Chief Product & Program Officer, New Hampshire Lottery Jesse Saccoccio, Senior Director, Global iLottery Pre-Sales, IGT Peter Sullivan, Chief Executive Officer, Jackpocket Rebecca Swindle, Vice President Strategic Development, INTRALOT Matt Taormina, Director of Digital Products, Scientific Games Rob Wesley, Vice President of North American Customer Development, NeoGames 24 DRIVING THE OMNI-CHANNEL EXPERIENCE: WHAT ARE THE PROMOTIONAL TOOLS, LEVERS, GAME CONCEPTS, AND STRATEGIES TO ENTICE THE PLAYER TO ENGAGE WITH LOTTERY ON MULTIPLE CHANNELS? Mark Michalko, Executive Director of the North Carolina Education Lottery. Richard Bateson, Chief Commercial Officer, INTRALOT Shannon DeHaven, Vice-President of Digital Engagement, Pollard Banknote Helene Keeley, Executive Director, Delaware Lottery Randy Spielman, Deputy Executive Director Product Development & Digital Gaming, North Carolina Education Lottery Lorne Weil, Executive Chairman, Inspired Entertainment 26 UNDERSTANDING MULTICHANNEL PLAYERS: DO PLAYERS’ PERCEPTIONS OF LOTTERY DIFFER BY SALES CHANNEL? IGT 29 GAMES ENGINEERED FOR THE MOBILE GENERATION Fennica Gaming 32 EIGHT ENHANCEMENTS TO ELEVATE YOUR 2025 INSTANT GAME PORTFOLIO Scientific Games 36 REVOLUTIONIZING ILOTTERY: CATALYST GAMING PLATFORM Pollard Banknote 38 CONNECTING WITH GEN-Z: HOW LOTTERY PROFESSIONALS LEVERAGE AI FOR BRAND STORYTELLING European Lottery Association (EL) 40 APPLYING AI FOR POSITIVE IMPACTS ON LOTTERY Angela Wong, Vice President of Global Lottery Solutions, Gaming Laboratories International (GLI) 18 42
8 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 From the Publisher The World Lottery Summit Paris (October 21 to 25) will be a most excellent adventure: the biggest WLS ever, held in the most splendid City of Lights, featuring world-class speakers from within and outside of the lottery industry, hosting the biggest tradeshow of technology partners, and countless side-bar meetings of global lottery leaders. Visit world-lotteries.org for complete info on the bi-annual WLS, as well as the other seminars and services offered by the World Lottery Association. After serving as president of the WLA for three 2-year terms, Rebecca Paul will turn over the leadership mantle to the new president (who will be elected and assume the role of president at WLS Paris on Oct. 24). With massive industry changes being compounded by a pandemic, this has been a volatile six years for all of us. The WLA has evolved with the times, producing timely and relevant educational seminars, updating its standards and procedures for certifications in Security & Risk Management and Responsible Gaming, advocating for regulatory frameworks that protect the interests of government lotteries, strengthening its affiliation with regional lottery associations, and inventing new products to serve its members. Thank you to Rebecca Paul and the fabulous team of World Lottery Association leaders whose dedication supports the global lottery sector as well as each one of it members individually. The World Lottery Summit Paris is also a celebration of the privilege it is to embrace the wonderful mission of government lotteries and service to good causes. Susan and I look forward to seeing you there! BCLC has always been on the leading edge of technological innovation. Among many “firsts”, BCLC was the first in North America to launch iLottery (in 2004) and manages almost all games-of-chance categories (including casinos, sports betting, and online gambling) in its jurisdiction. BCLC Chief Operating Officer Dan Beebe takes us behind the scenes of their recent lottery-centric technology transformation, executed in one big-bang cutover fashion. It’s a fascinating story, and perhaps illustrative of things to come for all of us. Wondering about how player behavior is changing with the growth of iLottery? Do players think of iLottery as different from traditional land-based lottery, or as just another way to play the same lottery games? Is there research to show whether lottery spend increases when the players play on multiple channels? Answers to these questions and more can be found in IGT’s report on page 26. Scientific Games not only talks about the amazing enhancements to Instant Tickets, they drill down on the strategy of Instant Game portfolio management. Maximizing sales, and funds to good causes, is partly about producing fabulous games that capture consumer attention and ongoing playership. To that end, Scientific Games is pushing the edge of the Instant Ticket enhancement envelope. Their article on page 32 also delves into the strategy of managing the portfolio (and application of enhancements) to optimize overall performance of the category. Abacus CEO Simon Butler brings us up to date on the latest technologies enabling the in-lane sales of lottery products, a crucial step towards evolving with consumer shopping and retailing trends. Nobody understands how political, regulatory, and business dynamics coalesce to shape the world of lottery like Philippe Vlaemminck. He shares the vision of others who aspire for government lottery to fulfill its highest calling as a leader, not just in the games-of-chance industry, not just as drivers of innovation and progress, but in business conduct and in society writ large. Pollard Banknote builds out its iLottery portfolio with the launch of Catalyst, its new fully cloud-native, modular, and API-first iLottery platform. Digital pioneer Fennica Gaming is reengineering games for the Mobile generation with entertainment-enhanced games to attract a attract a younger, more diverse audience. Gaming Laboratories’ (GLI) Angela Wong describes some of the ways AI is being applied to the lottery sector. The EL (European Lotteries Association) is always on the cutting edge of new ways to improve performance and results. The EL seminar on Connecting with Gen-Z focused on leveraging AI tools to enhance communications and brand storytelling, particularly for new generations of players. Actually, read the article as it traverses a whole range of ways in which AI is being applied in lottery right now to transformative effect. Government Lottery is not the only operator class that is innovating. “Gray” operators continue to find ways to disrupt the industry in ways that should be illegal but manage to stay at least one step ahead of regulatory modernization. Among our “Pulse of Industry” news stories is the way the “sweepstakes model” is raking in huge sums of money while evading regulatory oversight and even the obligation to pay taxes. The sweepstakes model allows customers to play for free or to buy virtual currency to enhance gameplay and win cash prizes. Sweepstake operators cost US states in lost potential tax revenue, present a greater risk for players since they don’t face regulatory scrutiny, and represent a competitive threat to government lotteries and legally authorized forms of gaming. Similarly, watch out for the ever-expanding portfolio of game categories and distributional strategies of DraftKings and Fanduel. They started as operators of “Fantasy Sports”, moved right into sports betting, and are now moving rapidly into every games-of-chance space including lottery. See you at WLS Paris! Paul Jason, Publisher Public Gaming International Magazine
10 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 All continued on page 46 Continued on page 46 Continued on page 46 Congratulations to the five newest members of the Lottery Industry Hall of Fame The 106 members of the PGRI Lottery Industry Hall of Fame have voted for and elected five industry leaders to be inducted into the Lottery Industry Hall of Fame for 2024. 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 PublicGaming.com (or LotteryIndustryHallofFame.com) to read more about the Hall of Fame. Induction Ceremony to induct all five new members will be held at the World Lottery Summit in Paris: Wednesday, October 23 17:00 – 17:45 (5:00 to 5:45 pm) Meeting room 252B (located on Level 2, Neuilly side) Venue: Palais des Congrès de Paris Visit World-Lotteries.org for more info about the World Lottery Summit, the biggest event in our industry held once every other year. We look forward to seeing you all there! Visit LotteryIndustryHallofFame.com for info about the Lottery Industry Hall of Fame and its members. Thank you for your support of the Lottery Hall of Fame. Renato Ascoli is a highly accomplished leader when it comes to identifying and navigating opportunities for success within the organization, as well as those across the entire lottery industry. He has served in high-level leadership positions encompassing nearly 20 years of lottery and gaming industry experience, leading multifaceted teams across global markets. In his current role, Renato is responsible for Global lottery and iLottery sales and operations, product and sales development, and technology and support for IGT’s 90-plus lottery customers worldwide. Nikos Nikolakopoulos is an Executive Member of the BoD and CEO of the INTRALOT Group, while he serves as the Chairman & CEO of INTRALOT USA. Following multiple roles in multinational technology companies, since 2007 he has been immersed in the lottery industry, collaborating with the global community of State Lotteries for over 17 years. In his role as CEO, Nikos guides INTRALOT's vision of Shaping the Future of Gaming and ensures sustainable growth that prioritizes stakeholder value, customer satisfaction, and employee well-being. After serving as Interim President for ten months, Paul was appointed to lead the Western Canada Lottery Corporation (WCLC) in May of 2019. Paul has had a remarkable career journey and trajectory. Paul is known as a “lifer” in the lottery world because, beginning in 1987 at WCLC, he has spent his whole career in this industry. He started out as a part time security officer in lottery, over the years moved into IT, and was appointed to manage the audit department in 1997. Sam Wakasugi is an accomplished industry veteran with more than 40 years of experience establishing and developing profitable operations for lotteries worldwide. As Vice President of Global Strategy for Scientific Games, he supports the company’s worldwide strategy for new business opportunities and exploration of new and undermaximized lottery markets. With broad experience in lottery sales, marketing and operational leadership – and a well-known gold standard for customer service excellence – Jannie Haek is currently the Chief Executive Officer of The National Lottery of Belgium. Appointed as CEO in 2013, he has successfully led one of the most innovative lottery operations in the world for more than a decade. Jannie has been a longstanding and strong supporter of the lottery industry, as an enthusiastic and thoughtful speaker, contributor and host at various European and World Lottery Association conferences. In 2019, Jannie led the Loterie Nationale Loterij (Belgium) in hosting the very successful European Lottery Congress in Antwerp with the theme of “The Success of Chance”, which was attended by more than 800 people. RENATO ASCOLI CEO GLOBAL LOTTERY, IGT NIKOS NIKOLAKOPOULOS Chief Executive Officer, INTRALOT GROUP PAUL ERICKSON President and CEO, Western Canada Lottery Corporation (WCLC) SAM WAKASUGI Vice President of Global Strategy, Scientific Games JANNIE HAEK Chief Executive Officer, Loterie Nationale (Belgium) PGRI LOTTERY INDUSTRY HALL OF FAME P G R I L O T T E R Y I N D U S T R Y H A L L O F F A M E
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12 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 THE CLOSING OF ONE CHAPTER AND THE OPENING OF ANOTHER IN A STORIED LOTTERY CAREER Rebecca Paul President & CEO, Tennessee Education Lottery Corporation President, World Lottery Association Founder & Chair, Women’s Initiative in Lottery Leadership Paul Jason: October’s World Lottery Summit in Paris must be a bittersweet moment. What are you most proud of about your leadership of the World Lottery Association during the past six years? Rebecca Paul: WLS 2024 has incredible meaning for me for so many reasons. Not only is the event itself a juggernaut of in-depth activity, but it’s a chance to dialog with leading experts and colleagues from around the world and connect global trends at the heart of our industry’s success. Serving as president of an organization that represents 81 countries has truly been an honor, and I’m proud to have served in this role. We’ve seen dramatic challenges during these past six years, and I have so many to thank for helping us work through them successfully. I’m especially pleased about several accomplishments that have been achieved, which PGRI Introduction: Rebecca Paul’s career in our industry spans nearly 40 years, and her footprint is seen throughout the world. Her career began with her appointment to lead the Illinois Lottery in 1985. She went on to found and serve as the chief executive of the Florida, Georgia, and Tennessee lotteries and is the current president and CEO of the Tennessee Education Lottery Corporation. In the Volunteer State, she has led the charge for more than 20 years and raised over $7.5 billion for education initiatives such as college scholarships and after-school programs. She has also served as president and/or chair of all offices of NASPL and MUSL and as president of A.I.L.E., and is the founder of Women in Lottery Leadership (WILL). But it’s Rebecca’s nearly six-year stint as president of the World Lottery Association that we’ll focus on in this interview, as that tenure comes to a close following the WLA’s World Lottery Summit in October of this year. What we know already, without even holding a Q & A, is that regardless of her official role, this born leader will forever be engaged with the industry for which she has relentless passion. That said, let’s find out a little more: PGRI INTERVIEWS Rebecca connecting the lottery with the community and the people in Georgia. Rebecca moderating CEO discussion with panelists Gretchen Corbin, David Barden, Sarah Taylor at WLA/EL Marketing Seminar in London.
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14 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 include development of a strategic plan for WLA, increased membership from North American lotteries, and the evolution of the four strategic WLA committees, which have seen growth and empowerment. I’m also proud to be the first woman to lead the organization, which is a fitting nod to the heart of Women in Lottery Leadership. How do you see the organizational structure and portfolio of services provided by the industry associations evolving over the coming years? R. Paul: What I see is a bright future of the regional associations working more closely with WLA and improved coordination between all parties involved. As an industry, we have made remarkable strides in coming together and operating as a cohesive force that does so much good for our collective communities. We’ll continue the focus of working in tandem and meeting the needs of our stakeholders while learning from each other. Few people have the global perspective that you do. And yet you sometimes have said that "all markets are local." Regulatory frameworks and gaming cultures vary widely. But what are some similarities that all lottery operators share? What aspects of this industry are universal and can be found in many jurisdictions around the world? R. Paul: What I’ve found is that every lottery, no matter how big or how small, how new or how old, is dedicated to its mission of raising dollars for good causes and eager to join forces with others to strengthen the industry. Regardless of differences in structure and design that are sometimes vast, we learn from each other through a variety of platforms. With the rise of virtual meetings and expansion of digital technology, the miles between us have lessened and our bonds have been more solidified. As we continue to envelop ourselves in ever-changing technology, we also work together to empower leaders of tomorrow. After all, ultimately it is the people we mentor and work with who will continue our legacy of success. What are you most proud of in your nearly 40 years of service to the lottery industry? R. Paul: There’s so much to reflect on as I look back while also looking ahead. What immediately comes to mind is the incredible amount of funding raised for good causes by the lotteries that I’ve been fortunate enough to be part of. Some of my favorite days are those where I’m stopped on the street and thanked by someone whose son or daughter or niece or nephew has benefited from a Lottery-funded educational scholarship. And then there’s the global expansion of Women in Lottery Leadership. Working with others to expand this vital program, designed to bring the best and brightest women to the table, is truly satisfying, and I look forward to the ongoing maturity and expansion of opportunities for the talented women in our industry. And it’s that mentorship role that I cherish—not just through WILL, but the opportunity I continue to have to encourage, lead and nurture men and women to become leaders. The idiosyncrasies of our industry are many and point to the need for the knowledge gained by working together. It’s genuinely gratifying to help others succeed—in fact, more than a dozen of my mentees have gone on to become lottery CEOs. And it’s with this togetherness in mind that I plan to launch a new initiative to create a council of past presidents of lottery organizations. This group of seasoned leaders would meet annually and network to discuss issues, provide updates and serve as a vital resource for the industry. And finally, I would like to express my gratitude for the deep and meaningful relationships I’ve developed and nurtured over these many years. Our people are the key to our success, and I take pride in bringing together the best and brightest to fulfill our overall mission of providing entertainment in a socially responsible manner to the benefit of our communities. This truly is a special niche we are in, and I’m thankful to be part of it. n Raising awareness about dollars raised for good causes is a favorite activity of Rebecca’s. Here, she presents a ceremonial check to a representative from Vanderbilt University to highlight the Lottery’s contributions to education in the state. Rebecca gives a passionate overview of the progress of Women in Lottery Leadership at NASPL’s summer 2024 Professional Development Seminar in Omaha, Nebraska. Rebecca is always at-the-ready to discuss the Tennessee Lottery’s positive impact on students in the state. Here, she is featured on a radio talk show at a University of Tennessee football game.
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16 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 TECHNOLOGICAL TRANSFORMATION AND THE ENGAGEMENT OF THE MODERN PLAYER Dan Beebe Chief Operating Officer, BCLC (British Columbia Lottery Corporation) Paul Jason: BCLC is immersed in every game-of-chance category and distribution channel. How did the need to replace your lottery systems lead to transform your enterprise-wide technology architecture? Dan Beebe: Lottery was the genesis of this company and is foundational to our DNA. And we were proud of our lottery systems which for 20 years were incredible, very efficient and dependable. And because of this, we were able to focus our innovation efforts on casinos and new game categories, like online gambling and sports betting. However, in 2015, a governmental review of our lottery infrastructure determined that 90% of BCLC's legacy technology resided in our lottery systems and infrastructure. Our lottery systems were due for an upgrade. As we explored potential new IT strategies to enhance operations and the lottery player experience, we were inspired by the possibilities and decided that modernizing our lottery systems could be the cornerstone to something much bigger: the transformation of our business’s IT infrastructure. That’s almost ten years ago. Was it a long and winding road to get to where you are now? D. Beebe: Following the whole RFP process, we were all set to implement the new lottery system in 2017. INTRALOT was the technology partner on the hardware side but not the software side of the system. The vendor responsible for software had a different strategic vision, so we essentially started from scratch again in 2018 with INTRALOT as the hardware, software and application provider. We took the following four years as an opportunity to study the way technology was evolving and to think about the ways that IT infrastructure PGRI INTERVIEWS PGRI Introduction: BCLC (British Columbia Lottery Corporation) manages all commercial gambling and lottery products in British Columbia including lottery tickets, casinos and online gambling. Based in Kamloops, with a secondary office in Vancouver, BCLC consists of three lines of business: Lottery, Casino and eGaming. With more than 1,300 employees, its annual net profits exceed CDN $1.5 billion, all of which goes back to the province through investments like health care, education and community programs. Its service providers, who run casinos on its behalf under contract, employ an additional 8,300 people across the province. In May 2024, BCLC completed its most ambitious transformation to date: replacing and modernizing its legacy lottery equipment and systems, to both support the organization’s future success and increase benefit to the province, its retail partners, and importantly, its players. Dan Beebe, chief operating officer, shares his thoughts on this and other integral organizational transformations and their enduring impact.
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18 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 Continued on page 41 does not just produce specific technological outcomes - it defines the overall corporate architecture and ultimately the player experience. It was also becoming apparent that cloud technology was primed to occupy a much bigger, more central role in the modern IT infrastructure. We realized we needed to pivot and not just replace our lottery terminals and the lottery game engine behind it but transform our entire lottery ecosystem. On May 26, 2024, BCLC became North America’s first cloud-based lottery system. So you had no blueprint to follow in this technological transformation? D. Beebe: While BCLC was the first in North America, we had both the benefit of studying other cloud-based ecosystems and INTRALOT had extensive experience with executing switchovers of the type we were considering. They had also completely redesigned their systems to be modular, easier to update and easier to integrate with. We affectionately called this a “big-bang” approach because we decided to rip out everything that is connected to our lottery system that does not comport with the most modern presentation or operational layers we are adding, and replace it with the most advanced version. INTRALOT was excited about it because they had done this before and could attest to the benefits of this approach. We were confident that INTRALOT’s experience and technical vision combined with our willingness to push the envelope, would produce the results we wanted. We think it was the perfect marriage for achieving the ambitious outcome of going live with a cloud-based system supporting 30,000 staff on 3,800 retail machines throughout the province. While this system was created for lottery, it is actually going to end up also fueling and providing a casino-style sports book that we never contemplated before. We are happy to share our experience with others who may want to explore a similar transformational path. The lottery system does not directly support the other game categories, does it? D. Beebe: While the different game categories like casinos, sports betting, and online gambling require different technological functionalities, the new lottery IT infrastructure opened up a whole new view on what we could achieve as well as what we would need if we wanted to integrate those functionalities. We are now asking the fundamental question of how we can move our entire gambling technology infrastructure into more modern cloud-based, modular and service-oriented architecture. It sounds like the starting point for integrating the most advanced IT systems is unrestricted open-ness and interoperability. D. Beebe: It’s about the freedom to think beyond the parameters and assumptions that may have existed in the past. For instance, we also needed to replace our retail sports betting platform. We asked INTRALOT for ideas on how we could create a player-experience that would enable seamless migration from lottery to sports betting. Now we have deployed new INTRALOT-powered sports books in retail. Doesn’t “thinking-out-of-the-box” incur additional risk? D. Beebe: Of course any large-scale transformation will carry at minimum a modicum of anxiety - but INTRALOT did have a lot of experience with the implementation of forward-looking technologies that reflected where we wanted to go. We were still nervous but were assured that everything would work fine – and we’re happy to report that they were right. You referred to the impact this has on “corporate architecture”. What does that mean exactly? D. Beebe: It’s about ensuring that the processes supporting our products are inter-connected across multiple game categories and distribution channels – with the capability for instantaneous communication. We used to execute somewhat linearly, executing one task at a time. Data that used to take days to process and post for analyses – for instance, game results – is now available instantly. This new “corporate architecture” removes bottlenecks and facilitates the process of converting data into actionable intelligence. “We decided that modernizing our lottery systems could be the cornerstone to something much bigger: the transformation of our business’s IT infrastructure.”
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22 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 Continued on page 42 Digitization and modernization can come in many forms, but how can lotteries make the most of the opportunities they present and avoid being left behind in an increasingly fast-paced and competitive games-of-chance environment? Senior executives of the vendor community shared their opinions on everything from an assessment of lotteries’ current digitalization efforts to “the radical future of digital lottery.” The discussion was moderated by KelleyJaye Cleland, Chief Product & Program Officer, New Hampshire Lottery, who was joined by panelists: • Jesse Saccoccio, Senior Director, Global iLottery Pre-Sales, IGT • Peter Sullivan, Chief Executive Officer, Jackpocket • Rebecca Swindle, Vice President Strategic Development, INTRALOT • Matt Taormina, Director of Digital Products, Scientific Games • Rob Wesley, Vice President of North American Customer Development, NeoGames Introducing the discussion, Kelley-Jaye Cleland mentioned how retail still provides the most revenue but also shared an important fact about the importance of iLottery. “Four of the top ten U.S. lotteries for per capita sales have iLottery. So, although it is not essential to have it, it is helpful as those results show.” This discussion is about the importance of investing in the digital future, and about how “digital” is about much more than iLottery. “In New Hampshire, we have many digital products, including iLottery. But we also don’t have the foundations to support all our digital initiatives—we don’t have a data warehouse, a business intelligence tool, or internal CRM that gives us a 360-degree view of the customer. So, we’re still in need of modernization, which doesn’t have to mean iLottery.” Responding to Kelley-Jaye’s question about how lotteries are preparing for the digital future, Jesse Saccoccio focused on establishing the infrastructure required for mobile claims and loyalty programs. He also emphasized the importance of CRM. “If you know your players, their behaviors, and their trends, you can build customer journeys that really enhance each individual’s experience.” Elaborating on that, Rob Wesley spoke about how mobile claims are gaining momentum even though they are only offered by a few lotteries. “Last year, Virginia launched mobile cashing for every retail ticket that’s purchased into the player’s online wallet. And the tickets cashed in one year have been worth about $25 million.” Rob emphasized how modernization is not only about the technology you have but also about using it smarter. “It’s not just about building a database anymore, it’s about communicating more effectively by leveraging the technology that you have and learning from each customer’s behavior how, where, and when they want to engage with you. The core of modernization is using technology and data to create better relationships with players.” P A N E L D I S C U S S I O N This article is based on a panel discussion held at the PGRI Smart-Tech Conference on March 13 in Fort Lauderdale, FL. Digital Lottery is about so much more than selling lottery tickets online “Figure out how to merge programs and collate data so you can reach out to players with the right messages, offers, and incentives at the right time.” L to R: Kelley-Jaye Cleland, Jesse Saccoccio, Peter Sullivan, Rebecca Swindle, Matt Taormina, Rob Wesley
24 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 Omnichannel has been the buzzword du jour across the lottery industry for awhile now. Everyone appreciates its importance, but what exactly does omnichannel mean for the Lottery? And how can we best implement it to generate data, provide seamless player experiences, and maximize player engagement across distributional channels? These were just some of the issues addressed in the panel discussion that brought together experts from the vendor and lottery communities, and moderated by Mark Michalko, Executive Director of the North Carolina Education Lottery. Mark was joined on the panel by: • Richard Bateson, Chief Commercial Officer, INTRALOT • Shannon DeHaven, Vice-President of Digital Engagement, Pollard Banknote • Helene Keeley, Executive Director, Delaware Lottery • Randy Spielman, Deputy Executive Director Product Development & Digital Gaming, North Carolina Education Lottery • Lorne Weil, Executive Chairman, Inspired Entertainment Mark began by asking the panelists what omnichannel means to them. “Is it just about driving engagement at both landbased retail and online? Or is there more to it than that?” From the perspective of INTRALOT and the vendor community, Richard Bateson emphasized the importance of connection and integration. “As vendors, we sit at the apex of marketing and technology. The omnichannel relationship enables us to identify what players want and allows them to play by whatever means they would like to interact with us. So, having a customer data platform that sits underneath everything else is at the heart of omnichannel.” Similarly, Randy Spielman defined omnichannel as “a player-centric approach to engagement. Omnichannel engagement goes beyond the player purchase of a lottery ticket to encompass marketing, communication, and even the culture of Lottery itself.” Sounding a note of caution, Lorne Weil took a broader perspective on questions of omni or multichannel. “Lottery is not a closed system, and Draft Kings’ acquisition of Jackpocket shows that the lottery industry is not working in its own isolated universe. For some of our competitors, Lottery is the primary if not only product category with retail as the primary channel of distribution. For others, their strategy is focused on multiple channels like sports bettors online and retail sports bettors as well as lottery players. That’s why we need to think as much about how to defend our turf from competition as we do about the opportunities that omnichannel presents.” Helene Keeley also described how omnichannel is “a new challenge” for the Delaware Lottery. “In Delaware, all P A N E L D I S C U S S I O N This article is based on a panel discussion held at the PGRI Smart-Tech Conference on March 13 in Fort Lauderdale, FL. Driving the Omni-Channel Experience: What are the promotional tools, levers, game concepts, and strategies to entice the player to engage with Lottery on multiple channels? L-R: Mark Michalko, Richard Bateson, Shannon DeHaven, Helene Keeley, Randy Spielman, Lorne Weil “Omnichannel offers a seamless experience with the same product no matter how a player chooses to play. Continued on page 44
26 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 Lotteries around the world are at varying stages in their ability to access and optimize all the available sales channels to sustainably grow returns for good causes. Yet, as lottery modernization continues, and despite regulatory obstacles to iLottery in some jurisdictions, it’s likely that most markets will eventually serve – and need to understand – multi-channel players. From mature multi-channel markets to nascent ones, the industry as a whole can benefit from insights on this developing player segment. What are the characteristics of multi-channel players? Why do some favor one channel versus another? What strategies could lotteries potentially pursue to encourage more cross-channel play? To serve this need, IGT set out to capture and convey a more detailed understanding of multi-channel players. The company’s Global Marketing Insights team partnered with Russell Research in 2024 to invest in a global thought leadership study, the largest study the two organizations have fielded together to date. Researchers surveyed a general population of adult consumers, not morally opposed to playing lottery, in seven countries: Australia, Canada, Czech Republic, Finland, Italy, Spain, and the U.S. Among other topics, the quantitative phase of the research explored general lottery playership behaviors, especially as they relate to the differences between retail-only and digital-only lottery purchasers and digital/multi-channel lottery purchasers. Special Report Preview A new IGT Special Report, based on the research, aims to offer a data-driven understanding of player interactions across the various lottery sales channels, to support lotteries in navigating their Do players’ perceptions of lottery differ by sales channel? A new IGT global study seeks to understand how and why.
27 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 unique challenges. A link to the IGT Special Report can be found at the end of this article. For lotteries already offering sales in the digital channel, it shares insights to further refine their channel strategy. Those anticipating regulatory approval for or preparing to launch online sales can use the Report’s data and research to inform and shape a multi-channel strategy. The insights can also help to inform lotteries’ strategies for player acquisition and retention. Of particular interest to PGRI readers is a finding relative to the U.S. market, where digital lottery sales have been authorized in only 15 states to date: While the U.S. currently has the lowest proportion of online players (13%) among the seven countries studied, 30% of American online lottery players indicated that they spend more money on lottery since they started purchasing online — higher than the percentage of players in Australia, Canada, Czech Republic, Finland, Italy, and Spain (see graph). While the U.S. digital market is still maturing, there are opportunities for lotteries that can’t sell online to digitalize aspects of the retail lottery journey. IGT refers to this as Connected Play. Eventually, when regulated to sell via the online channel, the lottery is better positioned to make the transition to an omnichannel environment, and players are already familiar with the ease of use and convenience of interacting with the lottery digitally. A set of Connected Play features built into IGT’s OMNIA™ solution allows players to access a lottery mobile app to register, create, and use digital playslips at retail. Furthermore, players can check their tickets, claim their winnings, and enter second chance promotions right from their phones, among other convenience features. For lotteries already selling online, Connected Play functionality provides a complete view of players across channels, supplying lotteries with valuable insights to help: • make more informed decisions to strengthen game portfolios • offer more tailored promotions and messaging • apply modern and more cost-effective digital marketing techniques • provide players with more information and resources to help them make informed decisions about playing, supporting Responsible Gaming efforts. IGT’s Special Report on multi-channel players explores what’s happening in markets around the world and offers findings related to players' age group, purchase behaviors and attitudes, as well as how lotteries can cater to multi-channel players. Visit IGT.com/SpecialReport to download the full report. Methodology The IGT study was conducted via online surveys from February 21 and April 15, 2024, in Australia, Canada, Czech Republic, Finland, Italy, Spain, and the U.S. More than 7,000 surveys were collected (between 1,003 and 1,015 in each of the seven countries), encompassing three Lottery Player Segments: current/past-year lottery players; lapsed lottery players; and those who have never played draw-based lottery games or instant lottery games, but would be likely to consider playing lottery games in the future.
GAMES ENGINEERED GENERATION THE FORMOBILE
Are you seeing your player base shrink as it skews older? Many gaming operators face this challenge, and Veikkaus, the National Lottery of Finland, was no exception. In this article, we look at how Veikkaus has successfully attracted younger players through digital innovation. The success of these eInstants raised interest among international peers that paved the way for new innovations. After securing regulatory approvals, Veikkaus launched its B2B operations, Fennica Gaming Ltd, in 2022, offering these innovative games to lotteries around the world. “Today Fennica Gaming’s games are live on three continents, and the results are clear. In 2.5 years, we’ve proven these games can expand and sustain a player base, that makes our industry more sustainable” rejoices Joni Hovi. Joni Hovi, SVP Customers & Marketing Fennica Gaming In the 1990s, Veikkaus became a trailblazer in online gaming by launching the first web store among national operators in 1997. Over the next decade, revenues nearly doubled, and the game portfolio tripled, responding to evolving player behavior. Early on, Veikkaus recognized that digital was the future, and took the bold step of developing the first eInstants in the world in 2004. This transition helped establish Veikkaus as a leader in online gaming. But the innovation didn’t stop there. “In a country where Nokia was born, a rapid tech adoptionwas evident. We neededgames that appealed to mobile users,” says Joni Hovi, Senior Vice President Customers and Marketing at Fennica Gaming. “In 2012, Veikkaus started developing mobile-friendly games that blended scratch cards with elements of mobile gaming. The goal: attract a younger, more diverse audience, particularly women,” Joni Hovi continues. The launch of ChirpAmore (also known as NokkaPokka) in 2013 was a turning point. The first eInstant with entertaining mechanics became an instant success, proving that mobile-first lottery games could engage new demographics and revitalize the player base. Games Engineered for the Mobile Generation A Digital Pioneer The Mobile Revolution Going Global with Fennica Gaming Are you ready to engineer your games portfolio for the mobile generation?
30 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 IMAGINE A NEW UNIVERSE OF POSSIBILITIES IN LOTTERY DISTRIBUTION Simon Butler Founder & Chief Executive Officer, Abacus Solutions International Group www.lotteryeverywhere.com Paul Jason: Retail is changing. How are these changes impacting the lottery industry? Simon Butler: Retailers are facing many challenges. These include supply chain issues, inflation, theft, and labor shortages. From 2018 to 2021, Forbes reported that labor shortages have doubled over this period (which increases costs), and this trend continues to grow year after year. Retailers are reaching out to tech companies to address the pain points they are experiencing. If you have visited your major lottery retailers, you have probably seen firsthand the changes retailers are adopting and how these changes are impacting the checkout experience. Why is it important to be aware of how technology is changing at retail? S. Butler: Simply put, most of these new technological advancements impact how consumers shop at grocery stores and convenience stores. Manned lanes and customer service center desks and kiosks are disappearing. Traditionally, the retail clerk has been key to selling your lottery games. If that service desk is replaced with selfcheckout, who’s going to sell your scratch and draw game tickets in a convenience and grocery store when there is no clerk? And who’s going to ask the customer if they want a Powerball ticket? The simple answer is nobody, and as a result, the lottery sales will decline. One customer with one self-checkout sale may not be a big impact. However, extrapolate that data across all lanes in all stores across the entire state and the impact does become material. What if I told you that a major convenience store chain in the US with 7000 stores is completely changing the way its customers check out. No clerk and no person to ask for the sale. Zero counter space for instant ticket dispensers. And with this technology they've already seen lottery sales fall up to 20% per store or up to $800,000,000 in lost sales annually. Clerks are disappearing, counter space for scratch products is vanishing, all the ways we currently sell tickets are changing. This is happening right now, the impact is incremental and sales are eroding, and the window of opportunity for lottery to adapt is closing. What do we do about it? S. Butler: In order to adapt to the changes occurring at retail, several lotteries are increasing the use of vending machines in an attempt to recapture a percentage of lost sales. Although this seems like a logical approach for convenience stores, space for vending machines is limited and stock outages are prevalent for retailers due to reduced staffing levels. The high cost of vending machines is also a major concern. Abacus has been working hard for several years with most major retail technology companies that provide retailer point-of-sale (cash register) software, to implement a distribution platform that enables retailers to sell lottery products in both self-service and manned lanes, regardless of the how consumers check out. This retail distribution platform allows consumers to add lottery products to their shopping basket and receive their lottery products on cash register receipt paper, digitally (if allowed in state) or on any other receipt mechanism used by the retailer. Scratch products are also supported so consumers can play all lottery games in the portfolio. Abacus is presently working with eight US and Canadian lotteries to provide various retail solutions to address the impact these retail changes are having on their business. In the Netherlands, Abacus has provided integrated solutions into five retail chains and is selling lottery products via manned lanes, self-checkout, scan & go and on the retailers’ ecommerce website. In Iowa, Abacus will soon be going live with two of the state’s largest grocery/convenience chains. And in Canada, Abacus is implementing a solution with three large retailers – a national grocer, a retail grocery, and merchandise retail chain. Abacus is also live in Arizona and Texas with Kroger and will soon be moving Florida to the Abacus platform. Sounds like the time is now! S. Butler: Abacus is an experienced expert in working with lotteries, gaming system providers, retailers, and retail point-of-purchase software providers and manages each piece of the project. With many moving parts, it takes time to scope, develop and implement these projects. Integrating these changes from your gaming system to your retailers can take up to 9 months to complete. Now is a good time to build Abacus into your fiscal budget and planning process to address these changes at retail and capture the increasing volume of sales that are moving to self-service checkout. n PGRI INTERVIEWS
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