48 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2023 Managing iLottery for Maximum Growth, Maximum Player Engagement and Maximum Complementarity continued from page 44 Retail Modernization and Optimization continued from page 26 than other forms of gaming, especially sports betting. Sharing all this data will help lotteries make a very convincing case.” From the Jackpocket angle, Bishop said the nimbleness of couriers has been one of their reasons for success. “We can be up and running in a jurisdiction within 60 to 90 days,” he said. “That is certainly attractive to states that can’t get iLottery quickly or might never get iLottery. And states with both iLottery and couriers have enjoyed success as well because of the marketing and advertising of lottery undertaken by couriers. From an old director’s standpoint, I agree with everyone who said we have to work together. Look at sports betting. There is something called the Sport Betting Alliance made up of key operators. That’s the kind of unified front that could help the lottery industry. Sports betting happened very fast because they were speaking in one voice. The lottery industry could certainly use that type of strategy when it comes to iLottery.” Stephanie’s final words were, “States with iLottery, like Pennsylvania, will continue to provide the industry with data and real-time information to combat the myths that come up. We have seen how important the iLottery player is to our states and how it can attract a new and often younger consumer. We must all work together to get this important sales tool into as many states as possible.” n At Abacus, Terry Presta and his colleagues are implementing strategies with a view towards positioning lottery for the future retail store environment. “While we understand that players are on their mobile devices and either buying or scanning tickets, lotteries need to re-imagine the in-store experience,” he said. “Look at how many stores now offer self-checkout because of the staffing and margin pressures they face. Look at how the consumer is rapidly accepting self-checkout as the easiest and fastest way to get in and out of the store. This represents a tremendous opportunity for the industry. We’ve seen the success of offering lottery within self-checkout lanes in Canada and Europe. It removes labor and stock shrinkage and moves lottery into a positive for retailers. In-lane lottery sales is now a critical option for lottery to remain viable at retail.” IGT’s Paul Riley agreed that “upping the game” at retail will pay off in the long run. “We know there are certain solutions that work pretty much everywhere they are deployed – jackpot signage, digital menu boards,” he said. “IGT has also created new vending machines which put lottery products front-and-center at retail and get us in front of even more people. These new machines have different sizes and different mixes of products so we can address the needs of a variety of retailers. Some retailers don’t want to handle the cash from a vending machine or load the tickets, so we have to provide business models and equipment that addresses their needs. We also have some new devices and solutions that are focused on in-lane, which is a long-term play for the industry and allows us to make inroads into previously untouched retailers and trade styles. All vendors are looking at how they can increase the number of products available in-lane, including re-designing instant tickets so they can be more easily sold in-lane.” As a lottery representative, Missouri’s Tonya Beenders said they talk often with as many retailers as possible, and providing new technology will only increase sales. “Many lotteries are limited in what they can provide to retailers because of staffing issues, so we rely on the vendors to manufacture and deploy the latest tech,” she said. “And we know that when the latest technology is deployed, sales only go up. Things like digital menu boards have allowed some retailers to increase the number of games they offer and speed up transactions. Retailers have told us what they want. Now we have to find the budget to provide this technology to as many locations as possible. In Missouri, as in many states, we can’t sell online so we need to up our game at retail.” Looking to the future, Drew asked “What should every retailer be doing in the next five years? Paul’s answer was simple. “Vending and in-lane,” he said. “There is amazing opportunity to expand lottery vending machines and optimize existing deployments. It has the added benefit of aligning with retailers’ and consumers’ continued adoption of self-service. Getting in-lane right is critical to the industry’s future. We have been working with Dollar General, one of the largest chain stores in the country and a trade style that is experiencing rapid growth in the U.S. They don’t want lottery equipment in their stores, so in a few jurisdictions we’ve added in-lane capabilities for QuickTicket, draw-based games. Our hope is that we can prove the value of lottery to them and expand their offering to add instant tickets. Walgreens, another huge retailer with more than 8,500 locations across the country, has made some very detailed inquiries about lottery to include in-lane. If we can show these retailers that in-lane works, it’s another way to engage a category of retailers that has been difficult to penetrate. Through modernization, we can expand the lottery footprint.” Max said that in five years he sees the use of paper play slips continuing to drop, perhaps not eliminated completely but largely replaced by digital play slips. “You’re already seeing it happen now and this is another reason why digital advertising will see tremendous growth at retail,” he said. “No more play slips means lotteries will need to protect their retail real estate and leverage their current play stand space to adapt to these changes. Lotteries will need to modernize how they communicate with and educate players before they reach the counter. Digital PlayStations with continuously updated attract screen content and interactive experiences will become more prevalent. This gives lotteries more visibility in a retail environment that affords less POS space. It also gives lotteries centralized control over real time messaging including jackpot values, Instants promotions, live monitor games, prizes remaining, localized winner awareness, loyalty programs, and more. Ongoing conversations with retailers will continue the digital push, according to Krista. “To me, retail modernization is
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