39 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2024 of sophisticated Customer Relationship Management (CRM) systems, enabling dynamic, tailored interactions with players. Integral to our strategy is the integration of an automated age verification system, seamlessly functional across diverse channels and devices. This paves the way for a smart, location-aware digital wallet accessible to all players. Is it fair to say that retailers are now more willing and able to adopt new tools and technologies? N. Nikolakopoulos: It's clear that retailers are embracing innovative technologies and tools in a rapidly evolving environment. However, it's important to note that retail's scope extends beyond just lottery operations, with lottery games serving as an additional feature that requires seamless integration and effective performance. Traditionally, the retail industry exhibited some hesitance towards swift innovation and modernization. Yet, recent developments, significantly propelled by the pandemic, have led to a notable transformation in retail methodologies. Retailers are now actively engaging in modernization and digitalization, both in their operational processes and in how they interact with customers, particularly in brick-and-mortar locations. As the primary link between the Lottery and its customers, the retail sector is at a pivotal point. There's a strategic imperative to support retailers who are embracing innovative approaches, integrating digital solutions in their stores, and exploring new ways to engage with customers. U.S. Lotteries, with their broad and varied network of retail affiliates, occupy a special position in the gaming industry. This network is more than a mere distribution channel; it's a vital asset that cultivates a unique bond between the Lottery and its retail partners. This scenario offers an invaluable chance to amplify and broaden the Lottery's impact in the retail sphere. Will artificial intelligence be applied to transform our industry like it is transforming others? N. Nikolakopoulos: Leveraging the unparalleled impact of Artificial Intelligence (AI) across various technologies, we foresee opportunity for radical transformation within the lottery industry. This shift, mirroring evolutions in multiple sectors, positions AI at the forefront, revolutionizing game development, customer interaction, and advanced data analytics. The term 'transformation' briefly encapsulates the expected profound alterations in game dynamics, player experiences, and stakeholder value creation, encompassing operators, retailers, and players. This shift represents not merely an improvement, but a strategic revolution, signifying the emergence of new avenues for growth and innovation. I am excited for INTRALOT and for the vision that you’re bringing to the industry N. Nikolakopoulos: At INTRALOT, we've experienced a profound shift, marking both personal and professional evolution. This era has showcased our adaptability and readiness to advance, leading to more effective business practices. The potential for innovation and flexibility has always been intrinsic, yet recent challenges have refined these traits. In addition, we see consumers becoming more engaged and seeking creative solutions to enhance their lives and fulfill ambitions. Post-pandemic, we see a renewed enthusiasm for change, growth, and prosperity. As we enter a new phase in lottery gaming, the collaborative endeavors of all stakeholders promise substantial progress and widespread benefits. n These are, though, very smart people who are beginning to act on the foundational concept that lottery is an investment business. I think the best analogy is when states increase investment in marketing for tourism. It’s a government investment to generate greater returns from consumers. Are these ideas getting included in the more recent RFPs? P. McHugh: Yes, this concept is gaining traction. For example, the clear objective of the Maryland Lottery’s last systems RFP and contract was to position the lottery for investment and growth. The results have been impressive. It is a great success story, especially for instant and terminal games. The Lottery’s performance has exceeded all expectations, and this is attributable to a clear focus on its leadership’s strategy and investment in growth. Finland has a more than 60% registered player base. Half of the registered players only play at retail. They registered for the benefits of digital engagement, not to play online. Should player registration be a mission-critical objective? P. McHugh: Yes. Digital engagement transforms the player journey and the entire lottery value proposition. It’s not just about buying games online but connecting in countless ways that simply don’t happen in anonymous, offline relationships. Retail players enjoy those benefits just as much as online players. Starbucks has one of the most successful digital engagement programs in the consumer products industry. Yet their product is not delivered or consumed online. Known Starbucks customers receive promos, points and purchasing conveniences not available to unregistered customers. Players' clubs and loyalty programs are critical to the sustained growth of the lottery industry. That’s why digital engagement has been one of the greatest areas of investment and innovation for Scientific Games. Science, the key component, is the conversion of technological capabilities into material results for our customers. Powerful technology is the baseline. Applying it effectively to produce better outcomes is where Scientific Games excels. Combining insights from digital engagement platforms like players clubs, loyalty programs, second-chance, player acquisition and retention initiatives with the most advanced data analytics tools will be the competitive differentiator that drives long-term growth and prosperity for lotteries. Other gaming categories like casinos, sports betting and online gambling have long been applying these tools to attract and retain players. Investing in digital engagement is important. Lotteries must elevate their focus on these next-generation marketing strategies and tools. n SG Content Hub™ is a trademark of Scientific Games. © 2024 Scientific Games, LLC. All Rights Reserved. Reinventing Success Together: Embracing Transformation and Innovation in Lottery Gaming — continued from page 23 Applying the Science to Digital Engagement — continued from page 27
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