Worldwide Lottery

Lotto sales could top a billion dollars for the first time in this financial year. If they do, it will be the result of growth strategies Lotto has adopted, as well as a bit of luck. "It's an awfully big number, and one we are fast approaching, and quite possibly in this financial year," Lotto chief executive Wayne Pickup said.

Lotto sales could top a billion dollars for the first time in this financial year.

If they do, it will be the result of growth strategies Lotto has adopted, as well as a bit of luck.

"It's an awfully big number, and one we are fast approaching, and quite possibly in this financial year," Lotto chief executive Wayne Pickup said.

The $34 million that Lotto has jackpotted to is also a big number, and it is the result of the first of the growth strategies.

BIGGER JACKPOTS

More people buy lottery tickets when jackpots are huge. Lotto can't always control this. Sometimes it has to be lucky.

n the 2015 financial year, Powerball jackpot went above $20m only once. Ticket sales plunged 10 per cent.

Increasing Lotto to twice weekly increased the chance of jackpots bulking up.

"It has created higher jackpots more frequently," Pickup said.

"The demographic makeup of our players is skewed towards the middle aged and older," according to a 2014 ministerial briefing.

"Seventy per cent of our players are aged 45-plus. In order to keep growing, we need to make our business more relevant to a slightly younger demographic.

WIN AUCKLAND

"Lotto underperforms in the Auckland market," Lotto says in its 2016 to 2019 statement of intent. "We will be focusing on engaging with more Aucklanders over the next four years."

Pickup said Auckland was younger, and more culturally diverse, but focused advertising strategies, especially roadside posters were working.

MAKE IT EASIER

Consumer habits are changing. Returns on physical retail outlets are dropping. Lotto has focused on convenience locations. That means supermarkets, and over a hundred Z Energy petrol stations.

GOING DIGITAL

More people are buying and checking tickets online through MyLotto.co.nz. Over 1 million tickets are scanned each month using the Lotto smartphone ticket-checker app.

MORE WINNABLE PRIZES

"Over the coming years, we need to continue to balance the top Lotto Powerball prizes on offer with a range of more winnable prizes, to ensure we are providing an engaging play experience," the statement of intent says.

That's in part because of jackpot "fatigue", which is a recognised lottery industry term.

Uptick said the balance had to be struck between the jackpots, and smaller, more winnable prizes.

"Over time we can expect that the current first division prizes we offer – Lotto starts at $1 million and Powerball at $4 million – will no longer be sufficient to bring people into the game, and at that time we will consider options relating to the price and prize composition of the game."

REGULAR PLAYERS

Fewer New Zealanders are playing frequently.

Making it easier to buy tickets, either by mobile or while doing something like buying fuel, as well as creating bigger jackpots are both aimed at getting people to play more often.

ONLINE INSTANT GAMES

"There is an opportunity to expand our online offering and reach a wider demographic with instant play games. We will investigate the possibility of introducing online instant games, which have proved popular for overseas lotteries," the statement of intent says.

http://www.stuff.co.nz/business/85966889/strategies-to-take-lotto-sales-over-1-billion

 




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