Public Gaming International Magazine September/October 2024

43 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2024 wouldn’t make sense for a state lottery. And in states where we can offer products like e-Instants or scratch-offs, we want to help promote them as well.” Commenting on whether state lotteries have the resources required to analyze data or do they depend on vendor partners for that, Jesse explained, “Some lotteries don’t have the tools they need, others have complete teams doing data analytics. Vendors can still add value because we work with lotteries all over the world, so we can bring new ways to analyze and interpret the data based on leading best practices in other markets.” Reflecting on differences between states, Rob observed, “Some lotteries have the resources and flexibility to build the teams they need; others face restrictions when trying to hire the right people. So, some states need to hire vendors to apply the technology and get the job done. There is also the option of sharing the load, a hybrid model.” Rebecca recommended, “Investing in a robust R&D program that layers in broad strokes, like segmentation marketing, with much more curated approaches that drill down to the individual level. But some lotteries still face challenges about the extent to which public policy allows them to capture and use data.” Elaborating on that point, Kelley-Jaye explained how two-year budget cycles limit lotteries’ abilities to react rapidly to new requirements and highlighted how legislatures’ demands to grow revenue are not always accompanied by the required resources. That point prompted Matt to advise “All vendors must invest in our products, so lotteries don’t have to do that individually. It’s tough at the state level to get funding and navigate policy changes. Vendors don’t face the same restrictions, and we can analyze data to inform lotteries’ roadmaps.” Peter discussed the challenges of recruiting high-quality data analysts. “They’re so expensive and everyone wants them.” He also argued, “Data is only useful if it leads to a decision. Having too much can be overwhelming and make it hard to know what to focus on. But AI does have the potential to perform analytical tasks and recommend actions.” Addressing the non-iLottery states, Rob stated that they can still learn from the data and technological approaches being pioneered by their iLottery peers and vendors. Agreeing, Jesse identified ways in which non-iLottery states can learn about their players, such as through player cards and loyalty or second-chance programs, to continue improving and refining the player experience. Thinking about best practices in the digital arena, Rebecca said using nationally branded games like Powerball and Mega Millions to attract new players is dramatically reducing customer acquisition costs and offering new opportunities to get valuable data. She also stressed the importance of engagement beyond acquisition. “It could be through social media, or it could be through second chance, which I really believe is one of the industry’s superpowers in terms of customer engagement.” Matt also described how claims processes created for iLottery products could be transferred into mobile claims. Discussing how Virginia has been offering mobile claims for a year, Rob also asked, “Why are lotteries not providing a service like a courier service themselves and owning that relationship to leverage the increase in knowing your players opportunities and grow their databases?” Concerning digitalization in retail, Rebecca identified the opportunities presented by proximity marketing. “You don’t have to be inside the store, you can be near it or at a special event, and you can have a special promotion that goes from selling live tickets to offering something digitally or second chance in an enclosed environment that you own.” Returning to the key issue of data ownership, Rebecca also asked, “As lotteries are in retail space why not make the data available to consumer products by putting it on the grocery store card? There are multiple ways for lotteries to use, sell, and monetize that superpower, which shouldn’t be given away cheap.” Matt identified digital wallets and player cards as the obvious ways to digitize retail. “Some lotteries internationally require registration, which results in 100% of players being known, which also means you can’t purchase a ticket without scanning a barcode. Anything we can do to get closer to that in the U.S. would be great for players. It could be as simple as scanning a loyalty card at the retailer POS to access online offers.” Jesse further highlighted the opportunities presented by player cards. “When players scan that card, it’s like logging into an Amazon account, they get all their personalized offers and recommendations. So, that’s one way to offer a modern experience at retail.” Concluding the discussion, Kelley-Jaye invited the panelists to give their top pieces of advice to lotteries looking to modernize their digital operations, with or without iLottery. Peter recommended, “Reading and staying up on trends; we always need to see what we can leverage to stay relevant for our customers. Big tech companies’ annual conferences tell you a lot about what new features and capabilities are coming out, so staying up to speed and educated about the future is more important than ever.” Rebecca emphasized the importance of adaptation. “Retail and customer preferences are changing, so leverage new technologies and adapt your strategies and ecosystems to curate the type of brand experience you want.” Quoting Drew Svitko of the Pennsylvania Lottery, Matt said that lotteries must be CRUMY: convenient, relevant, ubiquitous, and modern. “We need to be all of those things if we are going to resonate with players and face the competition.” He also reemphasized the importance of working with what limited resources lotteries may currently have to start new initiatives that will develop into bigger and better things. Rob’s succinct advice was “If you haven’t started, start; and if you have started, go faster. The competition is only going to grow so we must move quickly to not get left behind. And that requires us to lose the old, methodical, risk-averse mindset because if you apply a wait-and-see approach in a rapidly changing world, you’re just going to be leaving opportunities on the table.” Finally, Jesse stressed the importance of learning from other lotteries and doing the research to understand how markets and technology are changing. “Innovate continuously,” he advised, “and continue to try new things. If something works, run with it, and if it doesn’t, that’s okay. Don’t be afraid to trial, learn, move on, and try something else.” n

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