www.PublicGaming.com MARCH/APRIL 2025 CHANGING THE CONVERSATION: CONNECTING WITH THE MODERN CONSUMER AND THE NEXT GEN’ PLAYERS Harold Mays Director, Illinois Lottery President, North American Association of State & Provincial Lotteries Also Featuring … Tonya Beenders Arizona Lottery Richard Bateson INTRALOT, Inc Lorne Weil Inspired Entertainment Helmut Becker ZEAL Network
gaminglabs.com At GLI, we believe in the strength of collaboration. A global network of integrated services ensures all of our clients receive the same reliable, world-class experience. Together, we can drive innovation and growth across the lottery industry. TOGETHER WE CAN REDEFINE WHAT’S POSSIBLE
VOID VOID 123-123456789-123456 1 CASH POP $5.00 per DRAW 1234567 123456 $5.00 DRAW #00235 CROSSWORD AVAILABLE GAMES LOTTO LOTTO LOTTO LOTTO LOTTO LOTTO LOTTO This is the Future of Lottery ALL THINGS RETAIL AWARD WINNING GAMES SOLUTIONS DIGITAL NEXT GENERATION SELF SERVICE OMNICHANNEL Retail Market Insights® Lottery keeps evolving. What hasn’t changed is our commitment to drive the industry forward with transformative, award-winning solutions that make more possible for lotteries, retailers, and players. © 2025 IGT. The trademarks used herein are either trademarks or registered trademarks of IGT, its a liates or its licensors. Future Forward. Growth Driven.
4 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 Publisher & Chief Executive Officer Paul Jason pjason@publicgaming.com President Susan Jason sjason@publicgaming.com Brand and Design Dan Eggers Design Honored Founders Doris & Duane Burke Subscriptions United States: $145 USD Canada & Mexico: $160 USD All other countries: $225 USD For email address changes, subscription requests and requests to be placed on our e-Newsletter distribution list, e-mail Susan Jason at sjason@publicgaming.com Contact Information PGRI, Inc. 1769 Flagstone Terrace, The Villages, FL 32162 PublicGaming.com T: +425.449.3000 F: +206.374.2600 Public Gaming International Magazine Published six times a year and distributed to readers all around the world. Electronic version is e-mailed and is also available on our news website: PublicGaming.com March/April 2025 Volume 54, Issue 2 ©2023 all rights reserved. Public Gaming Research Institute cISSN: 1042-1912 10 CHANGING THE CONVERSATION: CONNECTING WITH THE MODERN CONSUMER AND THE NEXT GEN’ PLAYERS Harold Mays President, North American Association of State & Provincial Lotteries 16 BUILD THE MUTUALLY BENEFICIAL RELATIONSHIP WITH YOUR RETAILERS THAT DRIVES LOTTERY TICKET SALES Tonya Beenders Chief Sales Officer, Arizona Lottery 18 INNOVATING THE FUTURE OF LOTTERY: INTRALOT’S PATH FORWARD Richard Bateson Chief Executive Officer, Intralot, Inc. CONTENTS MARCH/APRIL 2025 FEATURED INTERVIEWS
6 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 Visit Our Family Of Websites PublicGaming.com industry news & information PGRITalks.com videos of conference presentations PublicGaming.org PGRI conference information PGRIDigitalLibrary.com magazine archive of past issues PGRIDirectory.com listing of lotteries and vendors PGRIAwards.com Showcase of industry honorees recognized by the Lottery Industry Hall of Fame PGRI Lifetime Achievement Award Sharp Award for Good Causes Lottery Industry Statesman and Stateswoman Award Rebecca Paul Mentorship Award Collaboration Award Subscribe To Our Free Digital Newsletters Receive our daily newsletters at no charge, published 5 times a week to bring you the latest breaking news in the global lottery industry. Send an e-mail to: sjason@PublicGaming.com with “add to Daily Digest list” in the subject line. FEATURED ARTICLES 8 FROM THE PUBLISHER Paul Jason 46 PULSE OF THE INDUSTRY: Synopsis of recent gaming industry news DEPARTMENTS 22 2025 HOLIDAY GAMES: UNWRAP THE MAGIC OF NEW PRODUCTS Scientific Games 26 INTRODUCING IGT LOTTERYLINKTM, THE AWARDWINNING SOLUTION THAT LETS RETAILERS QUICKLY AND EASILY SELL LOTTERY GAMES IN-LANE ON THEIR OWN POINT-OF-SALE DEVICES. 30 MODERNIZING LOTTERY GAMES TO MEET EVOLVING CONSUMER EXPECTATIONS Helmut Becker, Chief Executive Officer, ZEAL 32 EINSTANTS GETTING SLUGGISH? DIVERSIFY! THE CHALLENGE FACING ILOTTERY PROGRAMS IN THE U.S. Pollard Banknote 34 PREPARE FOR THE PARADIGM SHIFT IN PLAYER BEHAVIOR Simon Jaworski, Chief Executive Officer, Lotto Research Lorne Weil, Executive Chairman, Inspired Entertainment 36 BOOST PLAYER ENGAGEMENT, INSTANT TICKET SALES, AND OPERATIONAL EFFICIENCY WITH THE NEW DIGITAL MENU BOARD SOLUTION FROM IGT 42 BREAKING BOUNDARIES — INNOVATIVE APPROACHES TO TRADITIONAL MARKETING CHALLENGES: HIGHLIGHTS FROM EL/WLA BARCELONA 2025
Performance measured in the rst 30 days live. Scienti cGames.com Science Inside THIS IS THE We’re applying 50 years of science to iLottery with 250+ premiere eInstant games from SG Studios. In 2023, our games brought in nearly 23% more unique players and 21% higher total wagers than competitive games. Now, with the SG Content Hub Partner Program, we’re adding even more innovative, high-performing eInstant games from other lottery-focused content studios worldwide to drive pro ts for good cause programs. eInstant Game Titles and Growing © 2025 Scienti c Games. All rights reserved.
8 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 From the Publisher Our “Pulse of the Industry” news section offers a streamlined look at key stories from the past six weeks. For the complete list of unedited articles, visit our news website at PublicGaming.com. It’s always revealing to see which themes emerge as I distill the news into the limited space we allocate for this section. In my last publisher’s note, I highlighted one such theme: the ongoing lack of support that the government-run lottery sector receives from policymakers and regulators. While government stakeholders have never been particularly vocal champions of the lottery, the policy-making trends of recent years have been especially perplexing—such as the push to legalize sports betting, including online platforms, while simultaneously restricting iLottery, cashless payments, and other lottery innovations. Insofar as lottery is a much less harmful form of gaming than casinos and sports betting in terms of problem gambling, and deliver far more economic benefit to society, these contradictions are hard to reconcile — until we consider the influence of campaign contributions and lobbying, which seem to outweigh the interests of the general public in the minds of legislators. That said, the past couple of months have brought a wave of stories highlighting legislative efforts to crack down on sweepstakes, internet cafés and online gambling schemes disguised as nongambling activities, unlicensed gambling machines, and other forms of illegal gambling. Hopefully, this signals a shift toward prioritizing public interest and the support of good causes over the agendas of commercial operators and illegal enterprises. I asked Harold Mays whether we’re now competing more directly with other forms of gaming than we were twenty years ago. The answer is more nuanced than a simple “yes.” Harold brings a wide-angle lens to the conversation—one that connects the dots between broader societal and cultural trends and how they influence consumer and player behavior. For example, the influence of spectator sports on lottery (and society in general) goes far beyond just sports betting. Harold looks beyond the surface with a view towards positioning our businesses for long-term success—not just for next quarter, but five to eight years down the road. Remember when a standard question was, “Where do you see the industry twenty years from now?” How quaint, or maybe just optimistic. My conversation with Tonya Beenders, by contrast, focused on what’s happening right now; on real-world strategies that are driving sales today. As the face of Lottery to the consumer, our network of retailers is a goldmine of untapped potential. INTRALOT, Inc. has been on a tear lately, driving change, innovation, and progress over the last number of years. Under the leadership of CEO Richard Bateson, the company is executing a strategic vision centered on customer-focused operations and cutting-edge technology—delivering more value today while future-proofing IT investments to position us for tomorrow. I asked Lorne Weil, Executive Chair of Inspired Entertainment, to turn his PGRI Smart-Tech presentation into an article as it puts hard numbers (based on research and surveys conducted by Simon Jaworski and Lotto Research) behind a concern many of us have shared: the growing impact on Lottery of easy consumer access to a wide range of gaming options. One takeaway: The influence of online casino-style eGaming is projected to far surpass that of sports betting. We all know that player preferences and play-styles are evolving. For a closer look at what drives the digital-first generation, flip to page 30. ZEAL Network has been growing alongside its digitally native audience for more than twenty-five years. CEO Helmut Becker walks us through how consumer lifestyle expectations are shaping ZEAL’s strategy to reimagine the player journey as well as lottery games to win new players while continuing to appeal to core players. As iLottery growth in the U.S. flattens out, player acquisition and retention strategies are being updated. Pollard Banknote is leading the way with a focus on diversifying the portfolio of games to reach a broader audience of players and omni-channel interaction to drive engagement. It’s that time of year again! Since Holiday Scratchers can make up over 10% of total annual Instants sales, Scientific Games pours a lot of research, surveys, and analyses into the project of maximizing those sales. The Holiday season may be a few months away, but it’s time to start planning your Holiday Instant Scratch-Card campaigns. Turn to page 22 for your SG primer! IGT has two new ideas to share: LotteryLink™ is its break-through awardwinning solution to In-Lane lottery that lets retailers quickly and easily sell lottery games in-lane on their own point-of-sale devices. And the new Digital Menu Board showcases Instant Games to boost player engagement, instant ticket sales, and operational efficiency. The WLA/EL Marketing Seminar is always a brilliant way to jump-start the new year. This year was special as it has moved (along with the ICE Totally Gaming trade-show) from London to Barcelona. Some of us miss London but do love the change of scenery (after more than twenty years of being in London). Next up for our European colleagues is the EL Congress in Bern Switzerland in September. That’ll be right after the NASPL conference in Niagara Falls. And right before PGRI Smart-Tech Conference in Nashville the first week of November. See NASPL.org, European-Lotteries.org, and PublicGaming. org or PublicGaming.com for updates, registration, and more information. Paul Jason, Publisher Public Gaming International Magazine
© 2025 IGT. The trademarks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors. Creating New Ways to Play Offer players the fun of Infinity Instants™ with Linked Wins! Players uncover exciting bonus features such as multipliers and auto-wins, presented through vibrant colors and patterns hidden beneath the scratch-off coating. The Linked Wins mechanic can be applied to a wide variety of game themes and price points. Contact your IGT representative to see what’s possible. Future Forward. Growth Driven.
10 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 Changing the Conversation: Connecting with the modern consumer and the next gen’ players Harold Mays Director, Illinois Lottery President, North American Association of State & Provincial Lotteries Paul Jason: Some state lotteries that introduced iLottery have seen exceptionally high growth rates. Is there an ideal target growth rate for iLottery? Harold Mays: I can’t speak for other states, but there are different ways to measure financial results. One is top-line sales revenue, which reflects total sales. Then there’s Gross Gaming Revenue (GGR), which is what’s left after prize money is paid out. In the iLottery space, some states measure their iLottery growth using topline sales. If you have e-instants, those numbers can be astronomical compared to traditional products. Others may only consider adding iLottery GGR to topline sales if they have e-instants. Everyone is different so everyone’s growth target can be different. What may be an ideal target for one may be different for another. So while iLottery GGR may show strong growth, it won’t be as high as the growth in top-line iLottery revenue. Since most of us tend to think in terms of sales revenue, what percentage of your total sales comes from iLottery? H.Mays: This year we are hovering around 19% of our total sales coming from iLottery, and we only sell draw games, no eInstants. We really lean into making sure people are aware that our games are available online and that it’s easy and convenient to play online. Wow. That’s higher than I thought it would be, considering it’s only drawgames. H.Mays: Let’s look at our history. Illinois was the first state to sell single tickets online back in 2012. In the beginning, we were only allowed to sell three drawgames online - Mega Millions, Powerball and Lotto. Our other draw-games could only be sold via a subscription online. That changed in 2019. Over the past twelve years, Illinois’ iLottery category has experienced double-digit growth in nearly every year since 2012. The growth in other iLottery states is driven more by eInstants, isn’t it? H.Mays: I don’t know if I would make that generalization because every state PGRI INTERVIEWS PGRI INTRODUCTION: After being appointed to serve as Acting Director of the Illinois Lottery in Jan 2019 by the current Governor, Harold Mays was officially confirmed as Director in March 2022 by the Illinois Senate. His experience with the Lottery runs deep—before stepping into the role of Acting Director, he spent five years as Chief of Operations and Technology for the Department of the Lottery. Over the years, he has witnessed significant changes and positive impacts on the state. One clear indicator of that growth: lottery sales have surged from $2.84 billion in FY 2020 to $3.86 billion in FY 2024. At the PGRI Smart-Tech Conference in Ft. Lauderdale in March, Harold delivered a keynote address on The Intersection of Sports Betting and Lottery in the U.S. Our conversation took that discussion further, exploring how lottery is increasingly intertwined with pop culture, recreation, entertainment, and other games-of-chance; and more specifically, how this evolving landscape is reshaping lottery’s role in players’ lives.
12 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 has a different mix of online games, but yes, there are a number of states where e-instants figure prominently in their growth. Illinois is a bit of an outlier given we only sell draw games, but I believe we do that more than any other lottery. That's fantastic. It must be nice for the players to avoid the long lines when the jackpots get big. H. Mays: Giving players the option to buy lottery tickets online has been a huge driver of sales, especially when jackpots get big. Jackpot runs aren’t just important for the revenue they generate—they also expand our player base by attracting new and casual players. And when Mega Millions and Powerball jackpots roll up, iLottery revenues see a major spike. I think of our iLottery program in two phases: pre-2019 and post-2019. In the first half of our history, our compound annual growth rate (CAGR) was well over 30%, and that was just from selling Mega Millions, Powerball, Lotto, and subscriptions for our other games. Then, in 2019, we expanded iLottery to include all of our draw-based games— adding Pick 3, Pick 4, Lucky Day Lotto, and later Fast Play in 2022, alongside Mega Millions, Powerball, and Lotto. This expansion increased our sales by 50% the first year. Then came the pandemic which changed the world in countless ways, and for us, it helped significantly accelerate iLottery growth. The introduction of Fast Play online was a game changer as well. Our CAGR jumped from around 36% before 2019 to 64% in the five years since. What are the plans and strategies for growing the lottery over the next three years? H. Mays: That’s the question we tackle every day. The marketplace is evolving, and so are the pathways to success. But some of the old rules still hold true. For example, we’re committed to growing our retail presence because we believe there’s still headroom to grow our retail base. One of our key initiatives right now is to increase our number of retailers by 10% over the next year. The key to continued growth—in both retail and digital—is executing concrete initiatives with measurable results. One way we’re doing that is by expanding into new types of retail spaces we haven’t tapped before, like social clubs, bars, and restaurants. To support that effort, we’re launching a brand-new draw game that we believe will be a game-changer for these establishments. It's such an interesting idea to try to make a game that would be tailored to the play styles and preferences of the patrons of a certain type of venue. H. Mays: Exactly! These venues will bring a more social element to the playing experience. The game should be something players can enjoy while they’re hanging out, whether they’re interacting with friends or just relaxing. Since people will want quick results, we designed this new game with a faster play style, featuring multiple drawings per hour. That way, players can experience the excitement together in real time— hopefully with some wins to celebrate. It also opens up a new kind of conversation with our players, one we haven’t been able to have before. It sounds like you feel that retail continues to be rich with opportunity to innovate? H. Mays: Absolutely. We’re always looking at every aspect of the business for opportunities to innovate. And while there’s certainly room for more creativity in game design, the number of variables is limited—so there’s only so much we can do to fundamentally change the lottery game itself. We’ve been working with familiar game styles and mechanics that have been around for awhile — exploring ways to modernize them; updating classic concepts for today’s consumers or tailoring them for different player groups. The question is: how can we refresh a product and use it as a platform to spark a new and different conversation with players? Take Cash Pop, for example—you could argue that draw games like it have been around forever. Nothing new there, right? It was built on a concept players already knew, but IGT put a new spin on it, reintroducing it in a way that created a completely different player experience and conversation. So innovation does not have to mean some cosmic reinvention of the lottery playing experience. It can be about creatively revisiting things that have worked in the past. H. Mays: Figuring out what players want might seem challenging, but at its core, it’s pretty simple—they want to be entertained, and they want a chance to win. The key is to engage them in ways that resonate with them today. Just like in every other aspect of life, what was once old can become new again. Some concepts that worked years ago can be refreshed and modernized with small tweaks to the look, feel, or mechanics to appeal to today’s players. “We’re evolving from a traditional monopoly-based model with a core player base skewing older, to a landscape where players have more gaming options than ever before and is skewing younger.” “Lottery and sports are very different. We are not trying to sell sports to compete, we are trying to understand the consumer better to sell lottery products.” continued on page 20
Lottery Retail Modernization Build a communication platform at retail. Engage with players when and where it matters most. The right content. The right time. The right place. Auto-populate displays with targeted messaging. Join the lottery leaders using Carmanah’s digital signage technology to increase funds raised for beneficiaries.
14 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 Build the mutually beneficial relationship with your retailers that drives lottery ticket sales Tonya Beenders Chief Sales Officer, Arizona Lottery Paul Jason: Do you think of the Lottery Sales Representative (LSR) as more of a customer service role or a hard-driving sales person? Tonya Beenders: Our culture best suits a solution-selling approach for our retailers. We see service and support as essential parts of an effective and strategic sales strategy. That said, we are absolutely salesoriented. For example, right now, we’re in discussions with a national chain about merchandising the $50 ticket. Convincing retailers to take on new products isn’t easy—especially when they’re unsure about consumer demand. Retailers are incredibly busy, so getting them to hear us out takes persistence. And let’s be honest—most retailers aren’t eager to change what’s already working for them. I think your readers will relate to this challenge—the ongoing effort to persuade retailers to try something new, whether it’s a different Point of Sale (POS) strategy, product, or promotion. It all takes real selling to make that happen! Relationships and customer service are the key to everything sales. But our Lottery Sales Representatives are also highly focused on driving innovation, modernization, and selling new products and ideas for increasing lottery sales. And they know that even with engaged retailers there will be objections and that “no” does not mean forever. Sometimes, it means that you have to tell your story in a different way that will appeal to the retailer and in a way that they better understand the benefits of the proposal. Are retailers more willing to innovate and modernize than they were a few years ago? T. Beenders: Yes. A great example of this shift is retailers’ growing investment in their own loyalty apps and programs. They see these as key differentiators in a competitive market. Consumers who use loyalty programs from brands like Circle K, Walmart, and Target tend to become highly engaged and loyal customers. That represents a big opportunity for lotteries to cross-promote and add value for both retailers and players. The Arizona Lottery has done an outstanding job of leading the way in retailer partnerships. Take Circle K, for example. They prioritize loyalty and want to drive more foot traffic. Vendors regularly approach them with partnership ideas, and they’re open to collaborative efforts that attract customers and add value. The lottery is a very low-cost way PGRI INTERVIEWS PGRI Introduction: With over 30 years of lottery industry experience, Tonya now serves as the Chief Sales Officer for the Arizona Lottery. Previously holding the same role at the Missouri Lottery, Tonya brings extensive expertise in sales, distribution, and retail engagement. Throughout her career, she has been instrumental in driving sales growth, strengthening retailer partnerships, and enhancing operational efficiencies. Tonya is passionate about empowering her sales team and leveraging innovative strategies to optimize the player and retailer experience. And since the vast majority of the “Player Journey” runs right through retail, there’s plenty of room to innovate and find new ways to drive sales performance. Retail is evolving — adapting to shifts in consumer shopping behavior and an increasingly competitive landscape. Change and disruption aren’t just challenges but are also opportunities for those who anticipate trends, adapt strategically to stay ahead, and build mutually rewarding relationships with their retail partners. And when it comes to seizing those opportunities, Tonya Beenders and the Arizona Lottery team are on it!
16 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 to get shoppers’ attention. So, these cross-promotional strategies strengthen the lottery’s position within the retail space. For instance, a promotion might offer 10 cents off per gallon of fuel when a customer purchases a $10 lottery ticket. These kinds of cross-promotions create additional incentives for players while reinforcing the lottery as part of a retailer’s broader sales strategy. Another exciting aspect of Arizona Lottery’s work with Circle K is how they’ve expanded collaboration beyond just their own stores. Because of the strong relationship they’ve built, Circle K now helps facilitate discussions with other vendors, enabling co-branded promotions. So, for example, a promotion could offer a discount on a Coca-Cola product with the purchase of a lottery ticket. Instead of having to navigate corporate channels and reach out to Coke headquarters in Atlanta directly, Circle K acts as a bridge, helping to get these partnerships off the ground faster and more effectively. This kind of retailer-lottery synergy is a win-win. It enhances the perceived value of the lottery, drives sales, and strengthens partnerships that can lead to even more innovative collaborations in the future. We still rely on traditional, boots-onthe-ground methods for on-site promotions, even though many vendors have moved away from them because they’re labor-intensive. But we see it as a win on multiple fronts. When we have someone in a store, or even out in the parking lot, selling lottery tickets, we’re not just promoting lottery; we’re also boosting visibility for the store and the retailer’s products. We’re adding value to the shopper’s experience, making their visit more engaging. And retailers appreciate it because they can see the impact firsthand. The Arizona Lottery has embraced this strategy for years—whether standing outside a Safeway or being part of a Fry’s grand opening for hours, engaging with customers and driving excitement. The best part? The effect can go viral. A successful promotion often spreads through social media and word-of-mouth, drawing even more attention to the Lottery brand. Yes, it requires an investment of time— but when done right, it becomes the gift that keeps on giving. It sounds like you foster a culture of openness to new ideas. T. Beenders: For sure. It’s always easy to be the one who points out why something won’t work—maybe it’s been tried before, or maybe it’s hard to measure ROI on something completely new. But we intentionally create a big comfort zone for new ideas so that creativity isn’t stifled. You’ll sometimes hear people ask, “How will this help us sell more lottery tickets?” And while, of course, selling more tickets is the ultimate goal, framing brainstorming sessions that way can smother creativity and thereby limit innovation. If every idea has to immediately justify itself in terms of sales, you’re less likely to come up with fresh new concepts. That’s not to say that ROI and measurable results aren’t important—they absolutely are. But if you focus too much on those questions too early, you risk shutting down creative thinking before it even has a chance to take shape. The key is giving new ideas the space to breathe first, and then refining them with a practical lens. Would the idea be that helping retailers succeed leads to more lottery sales? T. Beenders: It’s not just an idea — it’s a reality. We understand that a grand opening is a big deal for a retailer. They want to stand out from the competition, and when we show up to help them do that, it strengthens our partnership. So when the time comes to introduce new ideas, launch a pilot program, or place new vending machines that require additional floor space, those retailers are far more receptive. They remember that we were there to support them, whether it was helping with a launch, improving efficiency, or driving in-store engagement. That doesn’t mean they’ll say yes to everything we propose — we still have to demonstrate the value — but they’ll listen, and that’s a big part of the equation. We always look for ways to add value, sometimes in ways that only the lottery can. Retailers are constantly seeking ways to increase foot traffic and boost basket size. Our advertising not only promotes the lottery, it drives foot traffic to the store. And if we can help drive higher purchases — especially through creative promotions that encourage sales of food products or other high-margin items — then it’s not just a win for the lottery, but a more profitable partnership for everyone. Tell us more about creative approaches to merchandising. T. Beenders: Merchandising at retail is still king. It remains the gold standard because relevance at the point of purchase (POP) is critical. We recently conducted a player study focused on our holiday-themed games, asking players: What prompted you to buy lottery tickets? Was it a billboard, radio ad, or social media? What made you think about playing? The #1 answer? Point of purchase. Drawing attention and standing out at POP is still the most powerful touchpoint for lottery sales. Lottery is an impulse purchase, and effective merchandising is what triggers that impulse. That’s where a player suddenly thinks, “Oh! I should grab a lottery ticket for so-and-so as a Christmas gift.” That said, a diversified media mix is still essential—not just to reach a broader audience but also to pre-sell the idea of playing before they even get to the store. The more a consumer is exposed to the lottery ahead of time, the more likely they are to “So when the time comes to introduce new ideas, launch a pilot program, or place new vending machines that require additional floor space, those retailers are far more receptive. They remember that we were there to support them” continued on page 40
18 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 Innovating the Future of Lottery: Intralot’s Path Forward PGRI INTERVIEWS PGRI Introduction: Richard Bateson is a dynamic leader in the global lottery industry, serving as Chief Executive Officer of Intralot Inc., overseeing all North American operations. With a rare combination of operator and vendor experience, Richard brings a unique perspective to the role, blending strategic innovation with hands-on industry expertise. His journey in the lottery sector began in 2001, following an early career in marketing at Unilever (Canada) and Fujitsu (UK), where he honed his ability to merge marketing with technology-driven solutions. Richard's first major lottery role was at Camelot UK, where he played a pivotal role in launching EuroMillions in collaboration with FDJ and SELAE in 2004. He later became a board member and eventually President of EuroMillions, shaping one of the most successful transnational lottery games in the world. Richard led the UK National Lottery’s Marketing, Digital, and Commercial Divisions, spearheading successful game development, retail sales, and digital transformation initiatives. His expertise extended beyond the UK, driving significant sales turnarounds in Ireland and North America. Recognizing the power of technology in shaping the future of lotteries, Richard transitioned to the vendor side of the industry in 2012, establishing Camelot Global’s commercial division and providing strategic consulting across the US, Canada, and Europe. Before joining Intralot, he spent three years as a management consultant, working with companies like Jumbo Interactive, Gatherwell Ltd., Teneo, and Camelot UK Lotteries Ltd. In March 2023, Richard joined Intralot as Chief Commercial Officer, leading a transformation of the company’s commercial and customer engagement strategies. His impact was immediate, and in December 2024, he was appointed Chief Executive Officer, tasked with driving the continued evolution of Intralot’s business, the rollout of LotosX Omni, and the expansion of new games and support services. With a deep understanding of both lottery operations and technology innovation, Richard is well-positioned to redefine the industry’s future, ensuring Intralot remains at the forefront of modernization and strategic growth. His leadership is marked by a commitment to customer success, digital transformation, and delivering cuttingedge lottery solutions for a rapidly changing market. Richard Bateson Chief Executive Officer, Intralot, Inc.
19 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 Paul Jason: You’ve been part of the lottery industry for over two decades. What led you to Intralot, and what sets the company apart? Richard Bateson: I’ve been fortunate to work in this industry since 2001, starting in marketing and expanding into various disciplines that support lottery operations. In 2020, after nearly 20 years, I stepped back to explore consulting so I could experience industry and non-industry projects, After three years, and working closely with lotteries and vendors, I decided I wanted to join one of the big vendors. In 2023 I decided I wanted to join Intralot for three clear reasons: technology, finance (ability to invest), and people. Technology: the company’s modular, interoperable systems architecture was a major draw, as it allows for seamless integration of best-of-breed solutions – something important for me as a marketer, as I believed Intralot had the best system in the industry to enable lotteries’ business and marketing plans. Finance: the company has significantly strengthened its financial position over the last several years, allowing for further investment into product, services and people – something the company has allowed me to focus on. People: I was given the opportunity to leverage existing talent, while bringing in new voices to enhance our capabilities. This transformation started in 2023 and continues as we set our foundations for growth in 2025. These three pillars—technology, financial strength, and people—guide our investments and ensure we deliver tailored solutions for our customers. The Lottery Landscape: Today & The Future The lottery industry has seen significant change. What’s your perspective on its current state and future direction? R. Bateson: I once quoted Lenin at a PGRI event: “There are decades where nothing happens; and there are weeks where decades happen.” While we aren’t seeing an industry revolution, change is accelerating. Historically, innovation has been slow, not because of a lack of vision, but due to restrictive and often inconsistent legislative and regulatory frameworks. Meanwhile, competitors like sports betting, iGaming, and the grey market can act with agility and capture opportunities quickly as they don’t have the same business models (beneficiaries), or they sit outside of regulation At Intralot, we are tackling this innovation and increased competition challenge in two ways: reactively and proactively. Reactively, we have developed a future-proofed platform that is fully interoperable – LotosX, enabling lotteries to adopt new technologies as needed – helping them respond quicker and with more relevant solutions to their players. Proactively, we launched initiatives such as Intralot Labs, which fosters industry innovation, new game development, and enhanced customer experiences. By investing in research and experimentation, we help lotteries stay competitive and more relevant in an evolving industry landscape. Operator vs. Technology Vendor: A Balanced Perspective You’ve worked both as an operator and a vendor. How has that shaped your approach at Intralot? R. Bateson: The challenges faced by operators and vendors are quite different. Having been on both sides, I don’t just understand what needs to be done, but also how and why. Vendors may recognize these challenges in theory, but operators experience them daily. At Intralot, we are redefining the vendor role. We aren’t just technology providers; we are enablers of our customers’ growth. This perspective has driven key initiatives that enhance the lottery experience and drive performance. We are introducing new games such as Jackpot USA® and Perfect Pick, alongside twenty new omnichannel games set to launch this year. Our iPOP program is designed to help lotteries optimize their product mix, ensuring they maximize impact and revenue potential. Additionally, our Retail Digital Program (RDP) seamlessly bridges in-person and digital lottery experiences, creating a more cohesive player journey. From day one, my message has been clear: We succeed when our customers grow. That’s why we are committed to delivering solutions that drive real, measurable results. 100 Days In: Early Observations & Organizational Change You’re approaching your first 100 days as CEO. What are your key observations and priorities? R. Bateson: Our greatest strengths are technology and people. Our LotosX Omni platform sets the standard, complemented by CanvasX for advanced content management, an upgraded PAM (Player Account Management) system for seamless player engagement, and enhanced security, monitoring, and reporting tools. On the people side, we have a strong blend of industry veterans and new talent, fostering a culture of innovation and expertise. We’ve already seen tangible success—BCLC launched LotosX, setting a benchmark for future implementations, and we secured a 7-year extension with the New Hampshire Lottery, with a full platform rollout planned for 2025. Our challenge now is ensuring the industry recognizes that the future is already here. Future-Proofing Lottery: Innovation & Technology Technology is at the heart of lottery evolution. How is Intralot investing in future-proofing the industry with innovations like LotosX, interoperability, AI, and new game formats such as Fast Play Jackpot USA®? How do you see these developments shaping the lottery experience for players and operators? R. Bateson: As I mentioned earlier, one of the most critical requirements lotteries should demand from their technology vendors is interoperability and openness. The era of monolithic systems – where a single vendor provides everything in a closed-loop ecosystem—is behind us. The future is about modular, agile architectures that promote best-of-breed integration, enabling lotteries to customize their offerings and remain adaptable in an ever-changing environment. At Intralot, we are leading this shift with LotosX, the next-generation modular platform designed to future-proof lottery operations. LotosX accelerates innovation, enhances agility, and allows operators to continued on page 29
20 PUBLIC GAMING INTERNATIONAL • MARCH/APRIL 2025 That said, player, expectations, and the ways players interact with us have changed significantly over the past five to ten years. So, we need to evolve—not just in how we design games, but in how we engage and communicate with our audience. However, the fundamental desire to have fun and experience the thrill of a potential life-changing win hasn’t changed. While there may be limits to how much we can alter the structure of a lottery game, there’s huge potential in reimagining the overall player journey. By modernizing successful past games and refreshing the way we connect with players, we open up a broad landscape of opportunities for innovation. How does the idea that "what used to be old is now new" apply to retail? H.Mays: We see retail as a space with enormous potential for innovation. Consumer lifestyles and shopping behaviors are evolving, which is driving changes in retail itself. Since retailers are the face of the Lottery to consumers, we need to think about how we can help them optimize efficiency and profitability. The more we understand their needs and meet their expectations, the more engaged they’ll be with Lottery. There’s always room for improvement in how we support our retail partners, and we see that as an ongoing opportunity. Evolving, modernizing, and innovating our retail strategies is a top priority. As mentioned, we’re highly focused on expanding into new non-traditional retail venues, in addition to strengthening our traditional retail footprint. Lottery has been around for 50 years, so we’ve likely had conversations with many of the obvious traditional lottery retailers. But the world has changed—society, the economy, and consumer habits have all evolved. New retailers have emerged, and we need to revisit familiar territory while also building bridges to new distribution channels. By helping our retail partners evolve successfully, we can carve out a bigger role for Lottery and attract new consumer groups. Just look at how much convenience stores have changed in the past few years—change brings opportunity, and it allows us to reshape our value proposition to align with retailers' new priorities. The same principles apply to the digital space. While it has already been a strong driver of growth, we’re pushing even harder to expand our digital presence. Of course, we’d love to go beyond draw games. The Fast Play category, for example, has taken off, prompting us to rethink our portfolio and optimize exposure for more forward-leaning games and play styles. Our mobile app is already one of the highest-rated lottery apps on both the Apple App Store and Google Play. But there’s always room to enhance and refresh the UX. Even though players love it now, we’re constantly looking for ways to make it even better. How do these concepts of continuous improvement apply to promotional strategies? H.Mays: Like everything else, the way we connect with our audience is evolving fast. We have a strong digital promotions program and leverage our CRM (Customer Relationship Management) platform to better understand what players want. That insight helps us engage with them more effectively online. It’s an ongoing, iterative process—we’re constantly testing what works, seeing how players respond to promotions, and analyzing whether that leads to better engagement and more registrations. Alongside that, we’ll continue running email promotions to keep players informed and engaged. We regularly update players on our latest activities and offerings. From sweepstakes to secondary prizes and cross-promotions, we’re always looking for ways to add extra value. Whether it’s a second-chance draw or another opportunity to win, we explore every option to try to make our games exciting and help ensure players see value. Should we think of other game categories like sports betting and casino gambling as competition? H.Mays: Not too long ago, like many others, I believed lottery players largely stayed in their own lane. Sure, they may go to a casino or horse racetrack occasionally, but lottery was their game of choice. But that’s starting to change a little. With gaming, and especially sports betting, becoming so widely available, we’re seeing more and more overlap. We are working hard to responsibly grow our market share. A few years ago, we thought about competition in terms of the share of the discretionary entertainment dollar—competing with things like candy and movie tickets. That’s still relevant, but we’re also focused on the share of the gaming dollar. The good news is that the overall gaming market has expanded significantly over the past five years. And it’s not just existing players spending more—it’s entirely new consumer groups entering the space. When I think about competition, it pushes us to be the best lottery we can be because we are the only lottery that operates in IL. We need to keep doing what we’ve always done well while constantly improving. We have to refresh our game portfolio and introduce new products because today’s consumers have more choices than ever and can easily shift their attention and loyalty. We know casinos and sports betting operators are actively working to attract lottery players to their offerings, and online casinos will be an even bigger challenge if they get approved in IL. That’s why we need to understand what our players want—how they like to engage with games. Take sports betting, for example. What’s the appeal? Is it the fast pace? The timely results? The thrill of watching a game unfold in real-time? If “While there may be limits to how much we can alter the structure of a lottery game, there’s huge potential in reimagining the overall player journey.” Changing the Conversation: Connecting with the modern consumer and the next gen’ players — continued from page 12 continued on page 39
MAP U.S. lottery data for games launched in CY2023, weekly per capita sales for rst 12 weeks. © 2025 Scienti c Games. All rights reserved. Science Inside THIS IS THE When it comes to performance, our data-driven scratch games continue to lead the global lottery industry. Backed by 50+ years of science, we’re driving success for 19 of the Top 20 performing instant game lotteries in the world. Our partnership means more pro ts for good cause programs. Scienti cGames.com
Bringing merriment to millions of players across the U.S., holiday game sales were a bright spot in 2024 for many lotteries. Portfolio strategy – with a sprinkle of magic through product enhancements – is essential to unwrapping strong sales in 2025. Holiday scratchers can represent up to 10% of instant game sales annually. That’s why, every year, teams of experts at Scientic Games bring the latest consumer and player trends to life through the company’s annual holiday catalog. The 2025 catalog just dropped, glimmering with innovation and inspiration. Showcasing options for lottery product managers to create just the right mix of products that pop at retail during the holidays, the games in the catalog are curated to appeal to core players, occasional and infrequent players, and gift-givers looking for something extra special. New scratch games across all price points have been validated through Scientic Games’ ONEVoice panel, an online community of consumers who share opinions and participate in surveys, polls and discussions as part of the company’s research. Its industry-leading CRM programs – which help lift lottery sales yearround – are perfect for enhancing holiday performance across eInstants and traditional product lines. “Games that appeal to distinct player segments are carefully selected for our portfolio recommendations for our customers’ upcoming holiday season,” says Danielle Hodges, Senior Director of Instant Product Innovation for Scienti c Games, who has been innovating instant products for 12 years. “With our 2025 holiday scratch games, we’re adding more magic with Strategic Product Enhancements and connecting retail and digital play with new products like Scratch Connect. We’re elevating top-shelf game designs and delivering the best holiday scratch experience to players.” Scratch Connect, one of the company’s newest innovations, is a hybrid instant game with a QR code that takes the player online where they can select a Scratch Connect digital game from a library of entertaining titles chosen by the lottery. A predetermined prize is revealed when the digital play ends. Alternatively, the player can choose NOT to play the digital game and simply turn their ticket in at retail to redeem their prize. As for eInstants, SG Studios continues to deliver immersive eInstant holiday games that delight players’ digital lottery experiences, capturing the essence of the season in festive, themed playstyles. Here are the products that were tops on product managers’ interest lists at the Scienti c Games holiday suite during PGRI Smart-Tech. Daniel Hodge
H H Wh D n i Embrace the festive cheer of the holidays in a holidaythemed whodunnit from SG Studios. This delightful tumbler-style game immerses players with boughs of holly, twinkling lights and the jolly spirit of Santa himself. With three ways to win HO HO WHO DUNNIT, anticipation builds as symbols and colors align. Checking o Santa’s list with each match brings players closer to an instant win. When three unwrapped gifts are uncovered, the bonus game is activated. Players can dive deeper into solving the mystery while earning even more chances to win and hit the Happy Holidays jackpot. G om S e G om fo th Holiday Perfect for gifting with a to/from tag in the corner of the design, holiday gnomes-themed games are light-hearted, whimsical and on-trend. With GNOME SWEET GNOME, colorful, entry-level price points in several scenes are great for light players who may only play around the holiday season. These products are nished with a glossy Dimension stars pattern that unies the festive graphics right into the scratch-o area. Hig Definitio Merimen Featuring HD Games technology, MERRY $500’s takes the holiday play experience to the next level with large, crystal clear numbers and prizes. Tying the game’s merry theme to the prizes, bonus wins are wrapped in whimsical packaging to match the graphics. To stand out at retail and deliver a tangibly premium experience, two scenes glow on Platinum paper with a Dimension stars pattern to integrate the display graphics and scratch area seamlessly.
F sing Holiday F These FusionHolo holiday games shimmer with fun for scratch players. The latest in Scienti c Games’ holographic innovation, FusionHolo melds multiple holograms into one game design. In these festive, seasonal versions, HOLIDAY FUN X100 and 7, custom holiday holograms like ornaments, gingerbread men and stockings cascade down the edges of the tickets with a diamond pattern in the center play area. W ap e Up Riche The spirit of the season shines bright in WRAPPED UP RICHES, another engaging seasonal eInstant from SG Studios. This matching/connect game style celebrates the holidays with colorfully wrapped instant win presents, ornament multipliers and candy canes for more chances to win on a larger game board. Platinu Wonderlan This three-scene HOLIDAY WONDERLAND game is traditional at its best but features an aesthetically unique design. Classic holiday imagery meets modern lines, allowing the most reective paper in the industry to fully shine through. These glowing Platinum games will shine for players in the 2025 holiday season. Holiday F enz Family Meet the HOLIDAY FRENZY family of games at multiple price points, uni ed by a custom holographic of frenetic waves vertically reecting light in the background of the game graphics. Each price point features loads of prizes and great odds of winning – from $10 to $20 on the $2 game and $250 to $500 on the premium member of the family – all redeemable at retail. Best of all, the prize structure calls for smaller run quantities during the holiday launch season. This new money-themed family was a collab with Scienti c Games Analytics, Creative and Innovation teams, resulting in a holistic holiday scratch experience.
publicgaming.comRkJQdWJsaXNoZXIy NTg4MTM=