Page 41 - Public Gaming International September/October 2017
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proponents felt they had their best            meetings with Governor Rick  63% feel it is appropriate to expand lottery
        chance.                                        Synder’s office as well as key   offerings on the Internet and another 20%
          But in May, a bomb was dropped               legislators. And those meet-  are neutral.  In terms of purchase intent,
        on the process. The Boston Globe               ings paid dividends, as he  34% of said they would “definitely or prob-
        ran a story headlined “Voters                  received support right up to   ably” buy a lottery ticket via the Internet.
        Oppose Online Lottery, Survey                  the Governor.             Additionally, 85% of Virginians said it is
        Finds.” The article starts as follows:          “The Governor said ‘It  just as acceptable if not more acceptable for
         “Nearly 70 percent of                         certainly makes sense to   the Virginia Lottery to have the same type
        Massachusetts voters do not support            distribute lottery products   of online selling ability as horse racing and
        legislation that would allow the state         through any method that will   fantasy sports.
        lottery to sell tickets online, a new survey has   help drive sales. And, frankly, I can’t under-
        found.                               stand why it’s not happening already,’” said
          Just 5 percent said they support expanding  Bowen, who now works for NeoPollard
        the lottery to include Internet games “very”  Interactive as the Senior Vice President of
        strongly, the survey found, while 7 percent  Business Development. “We also met repeat-
        said they support the proposal “somewhat”  edly with retailers and as a concession, told
        strongly.”                          them we wouldn’t include either of the Daily
          The article stated that the research was  3 or Daily 4 games in our online sales. That
        funded by Princeton Research on behalf of   gesture seemed to placate some of their
        a coalition that included the New England   concerns.”
        Convenience Store and Energy Marketers   A study on the Michigan Lottery’s iLot-
        Association, Massachusetts Package Store   tery efforts certainly supports the state’s
        Association, and Boston Convenience Store   online decision. In a December 2016 report
        Owners Association. But nowhere in the   by Digital Gaming Group on the Michigan
        article is it outlined the methodology of the   Online Lottery, much like online gambling,
        research or how the questions were asked.  the online lottery customer and the tradi-
          One of the more outrageous or perhaps   tional brick-and-mortar lottery players tend
        more accurately, uninformed, comments   to be two different players.
        was from Jon Hurst, president of the   “The Michigan Lottery’s success story
        Massachusetts Retailers Association, who   should be a page in the book of every
        said, “Abandoning the current system for a   lottery looking to convince its stakeholders
        model which has yet to be proven success-  of the value, certainty and complementary
        ful anywhere in the country is simply bad   nature of this new sales channel,” the report
        policy,” he said.                    states. Additionally, the report found exist-
          But this is the hyperbole that lotteries   ing lottery customers who register online
        are facing as they look to modernize their   accounts don’t decrease land-based spend.
        operations.                           “Multi-channel growth has been observed
          In the Virginia debate, a common talk-  across the globe where iLottery is present
        ing point of the iLottery opposition groups   and the industry is finally obtaining domes-
        was underage gambling. “I’m still concerned   tic evidence as well,” the report concludes.
        about verification online,” said Eddie   As Bowen travels across the U.S. helping  VENDORS, NASPL HERE TO HELP
        Aliff, director of the Virginia Assembly of   lotteries chart their iLottery futures, he said   For lotteries looking to implement an
        Independent Baptists. “Kids are smart, and   the Michigan results are proof that iLottery  iLottery program, there is help. Most of
        I just don’t know how you are going to do   can succeed.                 the large vendors have some type of interac-
        that.” This despite the fact that online player   “The Lottery just passed the $1 billion   tive division which can work with lotteries
        verification is often times stronger than that   mark in iLottery sales and at the same time,  on their online plans. And the National
        of brick-and-mortar lottery retailers.  retail sales are up 16%,” he said. “It’s been  Association of State and Provincial Lotteries
                                            proven – in Michigan, Canada and every-  provides support to member lotteries. In fact,
        FOR iLOTTERY ROADMAP, LOOK TO       where in the world where Lottery products   on its web site NASPL provides info to help
        MICHIGAN
                                             are sold online, that iLottery brings in   lotteries debunk the most common myths
          Someone needs to send the opposition   more people. The more distribution points   about online lottery sales:
        groups the results of the Michigan Lottery’s   you have, the more you can take care of the   “If lottery sales are allowed on the inter-
        experience.                         demand for your products.”           net, retailers will lose considerable sales.”
          In 2012, Scott Bowen, at the time the   And research shows that consumers want   Although relatively new to the
        Michigan Lottery’s Executive Director,  more lottery options via the Internet.  A  United States, online games are a staple
        began implementing a plan to bring iLot- 2016 KANTAR TNS Research consumer  in other countries, where they have
        tery to his state.  Bowen undertook countless   survey of 1,000 adult Virginians found that
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