44 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2023 Managing iLottery for Maximum Growth, Maximum Player Engagement and Maximum Complementarity continued from page 24 he said. “It’s often just thought of as putting the same product into digital and retail, putting a little marketing behind it and calling it a day. The real benefit of omni-channel begins when lotteries create managed player relationships across all the channels. Provide digital services, such as digital play slip, mobile cashing, etc., for your retail player and give them a reason to interact with your digital platforms. And use rewards, whether through loyalty or second chance programs, to engage all players. When lotteries start to manage the players, you are now able to drive them towards certain channels and have better insight into the overall player relationship.” As a lottery director, Bishop obviously wanted his products in as many channels as possible and that hasn’t changed. “We need to be in as many places as possible,” he said. “In retail, we can have three or four lottery retailers on the same block. We don’t say ‘sorry, you can’t sell lottery.’ I sometimes don’t see that philosophy translated into the digital space. If it’s going to be true omni-channel, we can’t have a situation where you must choose between your online provider and a courier. More channels help everyone. Couriers are up and running in markets quickly, they’re selling products and they have marketing money. I think some states are realizing that from a digital standpoint, there needs to be additional channels to reach as many people as possible. If we’re going to have an omni-channel discussion, there can’t be limitations on who can sell. Put our products in front of as many people as possible.” Stephanie brought up the topic of how providing “real money” gaming opportunities is an enormous change for lotteries and creates some challenges (along with the opportunities). “Take for example our app, which is so important – 90% of all our iLottery sales are through our app,” she said. “But working with the large mobile carriers and companies such as Facebook, Apple and Google is not easy. Apple, for example, has strict guidelines for their real-money gaming which has required the industry to redesign our apps. Things like that add to the eInstant game development schedules because now Apple basically has to approve games before they launch. But you must be on the iOS platform, given the large number of iPhone users that exist today.” Steve said he feels, and has lived, Stephanie’s pain. “When lotteries first started using apps, Google was okay with everything, but Apple said there was no way they’re allowing lottery apps in their store,” he said. “Then Google became all about advertising and didn’t want anything even resembling advertising in an app. But Scientific Games has been successful in getting our case heard and getting our apps into the app stores. As an industry, we must continue to lobby and push our mission, lean on the good causes. Just like we did many years ago, we have to continue to fight for our place in these app stores and for as few restrictions as possible.” Karri agreed that taking on the kings can be daunting. “Apple and Google are two of the world’s largest companies so there’s a bit of an Ivory Tower effect, looking down as everyone fights for their place in the Apple and Google ecospheres,” he said. “It is difficult to get heard. But we have to keep talking, the business opportunity is too critical. Like other organizations, IGT has been developing apps for years. We have developed a working relationship with these platforms and we understand how to work with them and react quickly to any new regulation or guideline that comes along.” A collective voice of the industry is critical when dealing with these companies, Jason agreed. “Together we are able to make these companies understand our position, and there is definitely strength in numbers,” he said. “From a development standpoint, it does elongate the production cycle for eInstant games so when you’re creating roadmaps and lining up your games, you need to build in ample time for testing. In the end, we need to have as many tools as possible to reach players. Whether it’s apps, mobile web, or desktop, players have their preferences and we want to make sure all channels are operating efficiently, so we’re casting the widest net possible.” Stephanie ended the panel by talking about the future of iLottery, more specifically a quick look at the state of iLottery and where it is going. “About 14 states will be legally allowed to sell online by early 2024,” she said. “Some can only sell draw games or subscriptions. Others, like Pennsylvania, can sell all products. But why aren’t more states selling online? Is it still the thought that iLottery will hurt retail? What is holding things back?” While it can be the nature of government to move slowly with new initiatives, Steve said iLottery acceptance has been tough to watch. “Twenty-five years ago, we said the internet was going to change the industry as lotteries looked to sell games online,” he said. “But there are so many constituents working for and against lottery that I think it’s easy to see why we are in this place. Because of this, Scientific Games tries to tackle each jurisdiction separately and work with them on their specific issues. And the vendors try to work together whenever possible. We want our customers to succeed, and getting online is an important component of sustainability. For many states, the biggest challenges are at the legislative level, and the government relations acumen of the vendors can be very helpful.” Karri agreed that working together is important. “Lotteries can help each other by sharing information that can be used to promote the iLottery cause,” he said. “Providing data on what steps they took to move to digital, how they managed the twists and turns, and what the results show. Our consumers are already highly involved in digital, and this will pose a challenge for lottery in the coming years. To remain relevant, lottery needs to have the same capabilities and accessibility as other consumer products. If the barrier to purchase is too great, we will struggle to retain consumers.” Having worked at two lotteries that sell online, Frank has a unique perspective. “North Carolina has been selling draw games online for more than 10 years, and they have just recently been approved to start selling eInstants,” he said. “Depending on the state, it takes time to knock down the barriers thrown in front of you. One barrier will be the retailers saying it will hurt their sales and the responsible gaming folks will present their case. But we now have data to refute the negative disinformation being floated. Retail sales have grown in states with iLottery. Online sales allow us to reach players more easily so we can promote the responsible gaming angle. And, of course, we can make the economic case. We all know that iLottery generates more funds for the state or for good causes Continued on page 48
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