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// PUBLIC GAMING INTERNATIONAL // September/October 2016
for these first launches to be successful, not
only for the individual states, but for the
industry as a whole. There were more than
a few iGaming opponents who said you
couldn’t do reliable geolocation, couldn’t
do proper player identification, couldn’t do
safe payment processing, etc. Any slip-up
had the potential to set-back iGaming who
knows how long. But Delaware, along with
the other jurisdictions, have had no seri-
ous or significant operational or integrity
issues since their respective launches. No
cheating scandals, and no underage play-
ers or players from outside state boundar-
ies. To your point, I have been on several
panels with Nevada and NJ and we always
get asked about revenue and we all reply
in the same manner. The question should
be does it work, not are you disappointed
in how much revenue you are generating.
Delaware has now turned its attention to
player acquisition with more targeted mar-
keting. Having established a strong and
reliable operational platform, we are now
able to focus even more on the revenue-
building component. I think the results are
really beginning to show, with a 93% year-
over-year increase for the first six months of
2016 versus the same period last year.
Does your experience indicate that there is
much cross-over between players who play
lottery at retail stores, those who buy online,
those who play casino-style games online, and
those who play in land-based casinos?
V. Kirk:
We have no direct evidence that
players migrate between traditional lottery
customers and iGaming, or even land based
casino customers and iGaming. Questions
relating to consumer play-styles and behav-
ior will be part of a player’s survey that’s
being planned now.
Do your promotional strategies facilitate and
encourage consumers to go to different chan-
nels and try different game-styles?
V. Kirk:
Yes, we have tried to promote
exactly that. For example, the casinos have
poker tournaments that start on-line and
finish with live tables at the casino. Also,
coupons and other giveaways are awarded
online and redeemed at the brick and mor-
tar facility, and visa/versa.
Is there anything that promotes Lottery to ca-
sino and i-gaming players?
V. Kirk:
We have not found much of a
market for cross-over between our tradi-
tional game Lottery players to the casinos
and we are currently not well positioned to
encompass the same to iGaming. We have
tried various types of casino promotions
such as selling NASCAR instant tickets in
conjunction with races at Dover Downs,
but with modest success. We have had
success cross promoting our Sports Lot-
tery with casino gaming with such things
as buy a Sports Lottery ticket of a certain
value and receive a match-play coupon for
table games (i.e. blackjack, roulette, craps,
etc.). Our Vegas style iGaming is more dif-
ficult to coordinate with our traditional
products, but when we get to the stage
where we will be selling our traditional
products online, I’m confident we will be
able to find ways to promote to both types
of players as they will both be familiar
with the genre. For example, some online
loyalty programs offer game play and that
could serve as an introduction and transi-
tion to our iGaming platform.
What have you learned about player behavior
that has surprised you, or that you did not
know five years ago?
V. Kirk:
We have a large contingent of
young players online. That is not surprising
in and of itself, but a large number of them
are young women, and that has been a bit
surprising for me. They are very loyal and
enthusiastic players, especially on certain
virtual video lottery games.
Why not sell traditional lottery products online?
V. Kirk:
We definitely will, but our
Agency is very small and we have had a
lot on our plate. Going back to the Dela-
ware Gaming and Competitiveness Act of
2012, we were authorized to expand our
Sports Lottery from the 3 casinos to in-
clude retailer locations. We did that first so
that we could launch in time for the 2012
professional football season. We were also
authorized to start Keno, which was num-
ber two on our agenda, and we successfully
launched in January 2013. We then turned
our attention to iGaming and what I call
eLottery (traditional products online). We
had thought we may be able to do them
in parallel, but that proved way too ambi-
tious, so we made the business decision to
do iGaming first. We launched iGaming
in late October 2013. Then, in February
2014, the Governors of Delaware and Ne-
vada signed the Multi-State Internet Gam-
ing Agreement, the first of its kind in the
nation. This agreement allowed for the two
states to share poker liquidity where players
from both states could sit down at a virtual
poker table and play against one another.
We added mobile for iGaming in May and
then were tasked with establishing lim-
ited video lottery in fraternal organizations
throughout the state. As soon as we catch
our breath, we will look toward eLottery!
How has development of online gaming im-
pacted traditional lottery revenues?
V. Kirk:
We have seen no impact on our
traditional lottery revenue. FY13-15 were
all record years in traditional sales for us
(2015: $149.7 million; 2014: $148.3;
2013: $144.1). Then we shattered the re-
cord in FY16 with $175.0 million. All of
Delaware’s products were up, but the pri-
mary reasons for the increase were the re-
surgence of Powerball (up 45%) and the
continued success of our instant games (up
21%, in part fueled by our first $25 price
point game).
What do you do to maintain growth in the tra-
ditional lottery sector in the face of increased
consumer options for recreational gaming?
V. Kirk:
Like many if not most, our tra-
ditional lottery growth has come from in-
stant scratch-off games. We have focused
on value in all price points and introduced
our highest ($25 per ticket) just a few
months ago and it became the first instant
game the Lottery ever re-ordered.
It appears to be the case that the DE legisla-
ture will not legalize Daily Fantasy Sports?
Do you think that might change? How do you
think the Fantasy Sports phenomenon will
impact the broader games of chance space,
and lottery in particular—not just in DE but
across the country?
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