Paul Jason, Public Gaming:
Some
directors feel that U.S. lotteries will never
operate at an optimal level as long as there
are two separate multi state game groups
– MUSL and the Mega Millions. Do you
agree with that?
Stephen Martino:
I agree that having
two separate groups manage two national
jackpot portfolio is an inefficient, cumber-
some governance structure. The way we do
business now is unwieldy, and it stifles in-
novation. I hope it changes but cannot say
how or when it might evolve to manage the
games better and responsibly grow revenue
for each states’ good causes. What I do
know is that effective July 1, the Maryland
Lottery became a member of the Multi-State
Lottery Association.
PGRI Introduction:
The last few years have been witness to some dramatic
change in the way the multi-state games are operated in the U.S. Cross-sell in
2010. Raising the price of Powerball to $2 a ticket in 2012. Next up is Monopoly
Millionaires’ Club, perhaps the most important game-launch in the history of U.S.
lotteries. These innovations did not happen without a long-term plan to build on
the success of multi-state games. The planning for additional games, and the
development of new strategies to innovate in all aspects of sales, marketing and
distribution, began prior to the beginning of cross-selling four years ago.
It’s the market-place that is driving these changes. Consumer tastes, behav-
ior, and lifestyles are evolving at breakneck speed that necessitates fast and ef-
fective adaptation on the part of all businesses. The complexity of the business
environment, the sophistication of technological infrastructure to support the
business, the abundance of creative, even ‘paradigm-shifting’, game concepts
that are flooding the market, all call out for a serious look at how lottery will lead
the charge into the future, or at least keep up with the changing market-place.
The question before the board is – How can the consensus-building apparatus
and a culture of innovation be institutionalized such that the ability to turn con-
cept into action becomes systemic and the full potential of multi-state gaming
initiatives is realized? It’s a big question with no easy answers. And it will never
be easy to create consensus among 44 lotteries. But one aspect of the question
relates to the issue of “governance,” the infrastructure that facilitates the inter-
lottery communication, research, planning, concept-vetting process necessary
to create and implement multi-state games and promotional initiatives.
The Maryland Lottery and Gaming Control Agency recently joined MUSL
(Multi-State Lottery Association). In so doing, the Maryland Lottery is required
to give up its membership in the Mega Millions consortium. As a proponent of
rationalized governance of the multi-state games, Stephen Martino speaks to
the reasons for this decision to join MUSL and how he expects the Maryland
Lottery to benefit by its association with MUSL.
Public Gaming International • July/August 2014
8
Public Gaming
Stephen Martino
Director, Maryland Lottery and Gaming Control Agency
Being a huge fan of MUSL, I would think
that is very exciting, both for the Maryland
Lottery and the community of MUSL mem-
bers. I don’t see why all lottery states would
not want to avail themselves of the full store
of MUSL resources, infrastructure, and
brain trust.
S. Martino:
It just made good sense for
Maryland to join MUSL. Lottery is no lon-
ger about just selling tickets in a retail store;
the industry is changing rapidly. The busi-
ness and operational challenges are more
complex, require a more sophisticated struc-
ture, and demand rapid technological and
business-process enhancement. The port-
folio of games is becoming more diverse,
and we need to push for even faster and
more creative development of new games,
new ways to communicate with our play-
ers, new channels of distribution, and fresh
promotional concepts. There is a wealth of
opportunity, along with challenges, facing
lotteries today. The question is not whether
something still works or is adequate to our
