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// PUBLIC GAMING INTERNATIONAL // July/August 2016

Standardized National Account

System Interface & API

(Application Programming

Interface):

How might the industry

define a universal language to

enable faster retail innovation;

i.e. a set of routines, protocols,

and tools for building software

applications and an interface that

provides a single platform for seam-

less inter-operability, dramatically

reducing the costs and time-lines

required by Lotteries and their com-

mercial partners to implement new

games, technologies, and standard-

ized business practices? How does

this kind of initiative benefit Retail-

ers, Lottery, and the Players alike?

How do we define the appropriate

business model, and who might

host it? What are the obstacles to

implementation, how might they be

overcome, and how quickly can this

be executed? 

Moderator:

Gary Grief,

Executive Director,

Texas Lottery,

Chair of the Powerball Group

Panelists:

Gardner Gurney,

Director, Division of the

Lottery New York State

Gaming Commission

Carole Hedinger,

Executive Director,

New Jersey Lottery

Terry Presta,

Executive Director,

Kansas Lottery

Paul Riley,

Vice President Product Marketing

and Interactive Wagering, IGT

Following is an edited synopsis of the panel discussion held at PGRI SMART-Tech on April 8 in New York. You can view a video

of the complete presentation at

www.PGRItalks.com

. Edited by Paul Jason, PGRI.

Gary Grief:

We spend so much effort trying to develop new products, new games,

promotions, and new methods to sell our existing products. And yet, the two main

levers we have to drive growth are same store sales and retailer expansion. That’s

why we try to serve and support and optimize the relationship with our retailers,

and optimize the retail shopping experience for the consumer. Thankfully, there is

still lots of room to continue to grow sales by improving in those areas. And retail

expansion certainly continues to be a great way for us to grow our sales. The invest-

ment for cost-effective expansion of the brick and mortar retail network is daunting.

Retail attrition, between 3% and 10%, is a problem too. It can be a challenge to find

retailers who are willing to sell our proprietary, labor-intensive, complex product in

their environment. Our product is age-restricted, requires a separate terminal, and a

separate communications network. It has secure inventory with significant liability

for our retailers. And the 5% to 6% commission they are paid constitutes a profit

margin that is much lower than other CPG’s.

We can no longer dictate to retailers all the terms, conditions and methods of how

to sell our products. Retailers are raising their expectations for us to integrate with

more sophisticated technologies, IT platforms, and standardized processes. Retailers

like Wal-Mart and Target and CVS are leveraging IT to increase efficiencies and re-

duce costs across the entire spectrum of operations. Data from all different channels

(transactions, sales reports, customer loyalty programs, etc.) are being captured and

leveraged to guide ongoing changes, improvements to operations, and modernization

of POS’s and marketing and promotional standards. These changes are producing

CREATING THE

TRULY OPEN,

FLUID, DYNAMIC IT

INFRASTRUCTURE

THAT SMOOTHS

THE PATH

FOR RAPID

DEPLOYMENT

OF INNOVATION

Continued on page 60