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Focus On: Research and Data Analytics - NASPL Matrix
Q&A With Gerry Aubin | Making a Difference

INSIGHTS
                 THE OFFICIAL PUBLICATION OF THE NORTH AMERICAN ASSOCIATION OF STATE & PROVINCIAL LOTTERIES

MAY/JUNE 2020

                             Focus On:
                Research and Data Analytics
                        These activities are more important than
                        ever as the industry navigates uncharted
                               waters in 2020 and beyond.
Focus On: Research and Data Analytics - NASPL Matrix
FROM THE NASPL
PRESIDENT
                                                                                               Executive Director
                                                                                                DAVID B. GALE

                                                                                          Director Of Administration
                                                                                             THOMAS TULLOCH

                                                                                                Vp Of Operations
                                                                                              ANDREW WHITE

                                           postings under Insights Direct. Not a         Director Of Program Planning
                                                                                               TAMIKA LIGON
                                           Matrix user? Just give a shout to Jake
                                           at jcoy@nasplhq.org.                                Graphic Designer
                                                                                                JOHN KOENIG
                                               Additionally, the June Directors’
                                           Meeting is still scheduled (to be                       Accounting
                                                                                           NATALIE ROSS NORRIS
                                           held remotely, of course). A virtual
    It may be hard to believe, but the     Dialogue with our Associate Members                       Editor
                                                                                            PATRICIA MCQUEEN
summertime months have arrived.            is being planned for the fall. Round
And for all of us, this summer is going    six of the NASPL/NCPG Responsible                    Vendor Relations
                                                                                                   JAKE COY
to look a little different.                Gambling Verification Program is
    As we are all well aware, the coro-    in full swing. The Powers and Ott              I.T. / Software Development
                                                                                                 PAUL COREY
navirus pandemic has created real          Brown Awards, recognizing individual
issues for industries around the globe.    employee excellence, will still be pre-       Communications Coordinator
                                                                                          MACKENZIE WHITACRE
We’ve seen a lot of changes in the         sented – as will the annual awards for
recent months. But I’m happy to say        advertising and best new games.
                                               It may not be business as usual. But    EXECUTIVE COMMITTEE
that one thing that hasn’t changed is
NASPL’s commitment to keeping our          we’re still taking care of business.                     President
                                                                                             BISHOP WOOSLEY
membership informed, educated and              So, like many others, the lottery
connected.                                 industry is facing new challenges. But             First Vice President
                                                                                               ANGELA WONG
    That’s why NASPL is working with       we’ll continue to learn, adapt, and roll
our committees, vendors and con-           with the punches in a safe, responsi-             Second Vice President
                                                                                               SARAH TAYLOR
tributors to provide a new series of       ble manner. Because our purpose still
presentations and webinars through         remains: We exist to generate revenue                   Treasurer
                                                                                            GRETCHEN CORBIN
the digital platform Insights Direct.      for essential good causes, like K-12
Each installment will focus on an im-      education, college scholarships, envi-                   Secretary
                                                                                                CINDY POLZIN
portant and timely topic, specifically     ronmental conservation, senior citizen
significant to one or more of the major    programs, tourism, tax relief, local            Immediate Past President
                                                                                            CHARLIE MCINTYRE
lottery disciplines – accounting, audit,   aid for cities and towns, economic
information technology, legal, product     development and many others. And as           Pres. Interprovincial Lotteries
                                                                                                 KEVIN GASS
managers, public relations, research,      those of us in the industry know, we
sales and marketing, and security.         do so much more than that. We have a                 Region I Director
                                                                                            GORDON MEDENICA
    We kicked off the new series with      profound economic impact, by creat-
a presentation on Cashless at Retail       ing jobs and helping bolster our retail             Region II Director
                                                                                             BETH BRESNAHAN
(following an industry chat between        and vendor partners. We support local
yours truly and NASPL Executive            initiatives. And, sometimes, we even                Region III Director
                                                                                               BRIAN ROCKEY
Director David Gale). Upcoming topics      help change our players’ lives.
include Business Succession Planning           In short, as we say in Arkansas,                Region IV Director
                                                                                                 BARRY PACK
& Crisis Management; Driving               we create winning people, winning
Business Failure or Fortune in the         futures and winning moments. Let’s
Post-COVID-19 Economy; Practical           keep that rolling.                                 CIRCULATION:
Ethics; and more. Some of these we-                                                          Insights ISSN 1528-123X,
                                                                                                 May/June 2020,
binars offer CPE credit. And more are                                                    Volume No. Twenty, Issue Three.
being added every week.                                                                  Published bi-monthly by NASPL
                                                                                       (North American Association of State
    Keep an eye on your inbox for up-                                                        and Provincial Lotteries)

dates. If you aren’t already receiving                                                       7470 Auburn Road, LL1
emails from NASPL, just reach out to                                                          Concord, OH 44077

Mackenzie at mwhitacre@nasplhq.org          BISHOP WOOSLEY                                 © 2020 All rights reserved.

to be added to the distribution list.       Director, Arkansas Scholarship Lottery                NASPL Email:
And check the NASPL Matrix for new          NASPL President                                     info@nasplhq.org

                                                                                                  Websites:
                                                                                      www.naspl.org / www.nasplmatrix.org
                                                                                                p 440.361.7962
2 | NASPL INSIGHTS May/June 2020                                                                f 440.867.2327
Focus On: Research and Data Analytics - NASPL Matrix
May/June 2020 NASPL INSIGHTS | 3
Focus On: Research and Data Analytics - NASPL Matrix
INSIDE INSIGHTS | MAY/JUNE 2020

12

 6 Up Front
     Industry news and updates.
                                                                                                                  30
                                               36
12 Making a Difference:
   Business as UNusual
     This special edition

                                                 Focus On:
     acknowledges the hard work
     by every employee during the
     pandemic.                                   Research and Data Analytics

20 Research Corner:                            44 Supporting the Games           76 Using AI to Deliver
   After Record U.S. Lottery                      By Patricia McQueen               a Better Player
   Revenues in 2019, What’s                                                         Experience
                                                                                    By Srini Nedunuri, Vice President
   Next?                                       48 Research Agendas                  IGT PlayDigital™ Platform
     By Barry E. Goodstadt, Telecom, Utility      A roundup of lotteries’
     & Regulatory Consulting, LLC; Sarah
                                                  research programs.
     Fulton, SFA Research & Strategy;
     Alex Chew, The Harris Poll                                                  80 The Correlation Between
                                                                                    Data and Performance
                                               64 Research Advice From              Across Multiple
30 Q&A With Gerry Aubin                           a Pro                             Jurisdictions
                                                  By Simon Jaworski,                By Mark Mitchell, Senior Manager
                                                  President, Leger USA              BI & Analytics, INTRALOT USA

36 Remembering the Past -
   Winners, That Is!                           68 Growth Through Tailored        84 The BIG Impact of Small
     It’s rarely easy, but it is possible         Communications                    Data
     to follow up on big winners to               By Monika McMahon, Director       Pollard Banknote
     provide good examples about                  of Digital, Camelot Illinois
     winning it big in “the lottery.”
     By Patricia McQueen
                                               72 Data and Insights
                                                  in Times of Crisis
                                                  Scientific Games

4 | NASPL INSIGHTS May/June 2020
Focus On: Research and Data Analytics - NASPL Matrix
We Are One
                Moving Forward, Together
As people and institutions we may be individuals, but as an industry we are one.
   Scientific Games is doing everything possible to help our lottery partners
       safely navigate these uncertain times and protect vital funding to
                         the good causes they support.

               Together we will arrive stronger and smarter
                           than ever before.

                          Reimagine Next
                    © 2020 Scientific Games Corporation. All Rights Reserved.
Focus On: Research and Data Analytics - NASPL Matrix
Remembering Jim Hosker
                             Jim Hosker, a Korean War veteran and former police officer,
                             helped establish the Massachusetts State Lottery, first as the
                             Commonwealth’s Deputy Treasurer and then serving as Executive
                             Director from 1983 to 1990. He followed that with a two-year stint as
                             President of the Kentucky Lottery Corp. before joining GTECH Texas
                             (now IGT Texas) in 1992. He also served a term as NASPL President in
                             1990-91. Hosker passed away on May 19, just shy of his 89th birthday,
                             and left fond memories of those who knew him.

The following is a personal tribute                                              He was arguably the foremost
to Jim Hosker from Ray Bates, who                                            expert on scratch card games, and
served nearly 20 years as the Director       “Jim Hosker, a Korean War       his lottery was a pioneer for lotto
of the Irish National Lottery and who         veteran, was a pioneer in      through the online retail network.
continues in the lottery industry as a                                       And while internet/online gaming
                                              state lotteries. As Deputy
consultant.                                                                  was at the edge of his experience, he
                                               Treasurer, Jim played an      could often surprise a meeting with
                                               instrumental role in the      an incisive comment on internet
     Jim Hosker was my mentor and          launch of the Massachusetts       selling observed through his prism of
good friend.                                    State Lottery and the        “traditional” selling experience.
     When I joined the lottery family         development of the Daily           He moved with ease and success
in 1987, like many others in that po-                                        through Massachusetts, Kentucky
                                               Numbers game and the
sition I knew little or nothing about                                        and finally to GTECH to head up
lotteries. So I searched around for          first-in-the-nation Instant     their facilities management oper-
a world expert and discovered one          Game. As Executive Director,      ation for the Texas Lottery, and
James J. Hosker, Executive Director        he led the continued growth       latterly to work as a consultant.
of the Massachusetts State Lottery.         of the Mass Lottery, further
I made contact and asked could I           establishing its position as an
come and visit. I got an immedi-
                                                                                     Clearly he was
                                            industry leader. As a former            no pushover, but
ate yes and spent one amazing and
seminal week in Boston learning all         local official, he understood          underneath he was
there was to know about the lot-            the importance of returning            gentle and caring,
tery business from Jim and his first        local aid to cities and towns
                                                                                    and with a great
lieutenant Tom O’Heir. We three              in Massachusetts. Jim later
were bonded by a mutual love of
                                                                                    sense of humour.
                                           went on to run the Kentucky
Ireland and an even greater love of
                                              State Lottery and GTECH
Macanudo cigars.                                                                Jim had a gruff exterior which
     Since that time, Jim has been a          Texas. It was an honor to      some might have found intimidating.
constant in my business and person-           work with Jim in the early     Clearly he was no pushover, but un-
al life.                                      years of my career at the      derneath he was gentle and caring,
     He was my “go to” person when-                State Treasury.”          and with a great sense of humour.
ever I had a difficult situation to deal                                     He loved being around young people,
with...and there were a few over             James MacDonald, Deputy         family and co-workers, and was
my 20 years as Director of the Irish        Treasurer, Commonwealth of       always ready to give someone a start
National Lottery. He knew the detail,              Massachusetts             on the ladder.
but could also always give me the                                               He had no hint of hubris. He just
broader perspective.                                                         was Jim. He could talk to anyone

6 | NASPL INSIGHTS May/June 2020
Focus On: Research and Data Analytics - NASPL Matrix
May/June 2020 NASPL INSIGHTS | 7
Focus On: Research and Data Analytics - NASPL Matrix
from the highest to the lowliest. He was
a sponge for information; he wanted to               “Jim’s background and natural abilities made him a really
know everything about everything. “Now                effective communicator on behalf of the industry. What
tell me this...” was one of his favourite
                                                     I remember most fondly though, is despite his talents in
openers.
                                                      connecting and communicating, occasionally that thick
    He had stories to tell...of his time in
the Korean War, his time in the Boston             Boston accent made it more difficult. When I was president
police force, his political life and finally his   of NASPL, I was waiting with Jim in the lobby of our Phoenix
lottery life.                                        hotel for our keynote speaker to arrive. Our keynote that
    I am so pleased I had the opportunity             year was Zell Miller, architect of HOPE scholarships as
to visit him and his beguiling wife Jean
                                                     Governor of Georgia and contributor to the lottery’s suc-
in their retirement home in Mansfield in
                                                   cess. When Zell arrived, I introduced the two of them. What
Massachusetts in 2018. He was in rude
good health at the time for a man in his            became immediately clear was that neither of them could
80s and he was displaying the same resil-             understand a word the other was saying, and I became
ience just recently when I called him for a         the translator between the thickest Boston accent and the
catch-up chat.                                     thickest Southern accent. I will miss Jim, his leadership, his
    He simply adored his wife, Jean, and his
                                                   guidance and his presence, and I send my warmest regards
children and grandchildren, who will all
                                                                   to his family during this time.”
greatly miss him.
    My wife and my children enjoyed and                                  Rebecca Hargrove,
loved Jim too, and feel the loss.                               President and Chief Executive Officer,
    We have all lost a great man...but I have                       Tennessee Education Lottery
lost a real pal.

              Stay informed
              with Insights Direct
              Check out past episodes on the NASPL Matrix
              and see what is coming up on NASPL Insights Direct!

                                                            Click here to view

              Not a Matrix user yet? Just reach out to Jake Coy at jcoy@nasplhq.org

8 | NASPL INSIGHTS May/June 2020
Focus On: Research and Data Analytics - NASPL Matrix
“But which way do I go from here?”
 ““at depends a great deal on where you want to get to”

If you want to sell where people are shopping,
step through the purple door.
Abacus makes selling lottery in-lane easy, by enabling customers
to buy tickets at the same time as paying for groceries, fully
integrating into the retailers’ ePOS estate. Choose the right
door - your players depend on it.
                                                  w : www.lotteryeverywhere.com
Solutions for innovators                                 e : info@abacus-bv.com
                                             JANUARY/FEBRUARY 2020 NASPL INSIGHTS | 9
Focus On: Research and Data Analytics - NASPL Matrix
Going Mobile in the Midwest
Ohio Lottery players have a convenient and secure new option for cashing
their winning tickets.
By Mackenzie Whitacre

T
         he Ohio Lottery is now of-
         fering a new mobile cashing
         feature, available through
the Ohio Lottery mobile app. This
innovative tool – a first for the North
American lottery industry – allows
players to cash eligible winning
tickets valued between $50 and
$5,000 in a fast and secure way. The
winning funds are deposited directly
into players’ bank accounts, provid-
ing a convenient, no-contact option
for receiving prize money.
    The mobile cashing launch was
already on track for April. However,
with the current social distancing
measures in place, the rollout of this
contactless feature was particu-
larly important. “This program was
initially established to offer cashing         And so far, it’s been smooth        opposed to prize collection at retail
of $600 to $5,000,” said Ohio Lottery     sailing. There have been no ma-          for these amounts – which do not
Communications Director Danielle          jor technical or other issues since      have to be reported to the IRS –
Frizzi-Babb, “but we opened up the        launch. For even further security,       players collecting prizes through
range of winning ticket amounts to        the Lottery pushed out a mobile app      the mobile cashing app do not re-
$50 to $5,000 to minimize the risks       update a week after launch, adding       main anonymous. However, it seems
associated with COVID-19 by min-          dual verification of bank account and    that winners across the board are
imizing foot traffic within essential     routing numbers, to reduce potential     welcoming the new option.
locations.”                               processing errors.                           “More than half of the transac-
    Ohio Lottery Director Pat                  Mobile cashing has also been        tions that have been processed are
McDonald agrees. “The release of          generally well-received, by both         low tier prizes,” noted Frizzi-Babb.
the mobile cashing feature is timely      retailers and players.                       “Overall, we have had a very
as our main cashing locations, Ohio            “Our retailers have embraced        positive response from the custom-
Lottery regional offices and Ohio’s       the new cashing option because           ers,” she said. “We knew players
racinos, are closed due to the pan-       it, in some ways, helps with player      would embrace the technology but
demic,” he said, shortly after the        throughput in their stores,” said Ohio   have been pleasantly surprised at
April 20 launch. “The app has proven      Lottery Project Manager Maureen          their willingness to express their
popular with customers.”                  Hall. “But they have shared some         acceptance.”
    Indeed, players were quick to         anticipated questions about the              And that’s all good news for
take advantage of the new feature,        possible impact of cashless on their     Ohio students. Last year, the Ohio
with more than 3,500 claims in the        cashing bonuses.”                        Lottery gave more than a billion
first seven days. And as of May 26,            In addition to the potential        dollars toward education in the
the Ohio Lottery has processed            impact for retailers, another factor     state – giving support to K-12,
more than 17,000 mobile cashing           considered was the response from         vocational schools and special
transactions.                             winners under the $600 mark. As          education.

10 | NASPL INSIGHTS May/June 2020
When your customers are ready to

 Alchemy3 has the solutions
Visit www.alchemy3.com/goout for more details.

                                   May/June 2020 NASPL INSIGHTS | 11
MAKING A DIFFERENCE - Special Edition

 Business as
          UNusual
This space is usually used to profile      communications disruptions, struc-          “Within days, nearly a
lottery industry employees who have        tural problems with lottery buildings,      third of our retail base
done their part to make their organi-      etc.                                        were no longer selling
zation a success, or who have made a           Few, if any, were ready for a
greater impact on the community at         global pandemic. One that changed            lottery tickets; retail,
large. In this special edition of Making   life as we know it, that will likely         bars and restaurants
a Difference, we acknowledge the           result in permanent changes to the             were closed, and
hard work done by every employee           way business – any business – is
during the public health crisis that       conducted moving forward. And in
                                                                                        many licensees were
is COVID-19, employees who had to          the meantime, while other enter-                 unreachable.”
shift gears, develop new policies and      tainment and gaming businesses
procedures and do things in new            were shut down, lotteries continued                 - Gweneth Dean
ways without looking back. Specific        to operate in some form or another.
actions taken by individual lotteries      After all, never have their revenues
in the early stages of the pandemic        been needed more than they are           of Lottery, New York State Gaming
are highlighted in the shaded sections     now, for good causes and even for        Commission. “Within days, nearly a
throughout this article.                   the retailers that stayed open.          third of our retail base were no lon-
                                               And that’s where we begin here,      ger selling lottery tickets; retail, bars

L
                                           honoring all the industry employ-        and restaurants were closed, and
       otteries have a very specific       ees who have gone well above and         many licensees were unreachable.
       mandate, as approved either         beyond the call of duty – and not        Without any disruption in opera-
       by voters or by political lead-     just for their own lotteries. In some    tions, New York Lottery staff pivoted
ership: they exist for the purpose of      jurisdictions, lottery staff were even   to address evolving and unexpected
providing revenue for much-needed          borrowed by other agencies, helping      retailer issues while re-imagining
programs, such as education, the           with things such as processing an        new business processes. Essential
environment, economic develop-             overwhelming number of unem-             staff continue to support critical
ment, senior services and more. In         ployment claims and with COVID-19        functions on-site, reporting to
doing so, they provide a source of         contact tracing. They’ve done it all     work daily, enduring long sessions,
entertainment for the public, and of-      with a can-do attitude.                  scheduling challenges, and shifting
fer a chance to win potentially large          New York has been the hardest-       demands to continue our mission
prizes for the small cost of a ticket.     hit state with respect to COVID-19       of supporting public K-12 education
    Many lotteries thought they            cases and fatalities, and the state is   all while trying to ensure our own
had a handle on crisis management          also home to the largest American        employees’ health and safety. I have
and recovery, with documented              lottery.                                 been amazed by the resolve, dedica-
procedures on exactly what to do               “When the NYS on PAUSE               tion and leadership exhibited by our
in the case of natural disasters           went into effect in mid-March,           employees, who have clearly shown
such as hurricanes, floods, torna-         the Lottery’s retail landscape           they will meet the challenges of
does and earthquakes, plus other           transformed overnight,” explained        tomorrow’s lottery. New Yorkers are
potential disasters like power or          Gweneth Dean, Director, Division         tough, smart, disciplined, unified and

12 | NASPL INSIGHTS May/June 2020
loving. These characteristics couldn’t   that allowed even more employees,      the whole concept of working re-
be more evident as we work through       initially needing to report to the     motely. For the past couple of years,
this crisis.”                            office to complete their duties, to    employees have been required to
    We know that similar messages        work from home.                        work from home twice each month.
would come from every lottery chief                                             The shift began when it was time to
executive across North America.                                                 replace office computers – instead
                                           - Rotating staff between remote      of desktop workstations, most staff
Working Remotely                              and in-office work, so that on    received laptops and tablets.
                                              any given day, no more than           “The original thought about
    Many, if not most, employees in a         one-third of staff is on-site.    tele-working came from the very real
number of industries suddenly began                                             question of how we can get things
working remotely; lotteries were           - Rotating teams in essential        done the next time we have a huge
no exception as their offices were            on-site services such as draw     snow storm,” explained Pennsylvania
shut down or restricted to essen-             staff, prize payments staff and   Lottery Executive Director Drew
tial personnel only. In the process,          accounting, to minimize infec-    Svitko. “While it’s been a while since
information technology staff were             tion in any one unit.             we had one, the time to figure out
the first to take action, to make sure                                          how to get things done during a
everything went smoothly. They             - Anyone who can work from           three-foot snowfall is NOT during a
provided work-from-home solutions             home has been directed to do      three-foot snowfall; it’s in July.”
that included all necessary computer          so. We are enabling remote            Once the equipment was pur-
equipment, connectivity solutions,            access programs to increase       chased, employees were able to
and setting up virtual meeting envi-          the number of people who can      work from home the required two
ronments so business could continue           work from home.                   days per month. “This allowed us to
no matter who was where. Indeed,                                                work through any technical chal-
they were key to making it all work,                                            lenges, but also learn, as a business,
whether 30% or 100% of staff began           If what was perhaps an eerie       how to be productive with a team
working remotely. As the crisis went     bit of foresight, the Pennsylvania     that wasn’t together. The tele-work
on, new solutions were implemented       Lottery might have had a leg up on     model also has a side benefit of

                                                                                May/June 2020 NASPL INSIGHTS | 13
BCLC used Facebook Live to conduct virtual
                                          jackpot winner press conferences.

                                            keno), most retailers of traditional       drawings are actually conducted was
                                            products were kept open as essential       also on the table in some cases.
                                            businesses also supplying food and             For example, the Kentucky
                                            other goods. Selling lottery provides      Lottery was one that switched to
                                            additional revenue opportunities for       RNG draws for its Pick 3, Pick 4 and
                                            those essential businesses, although       Cash Ball 225 daily games. Beginning
                                            in a few cases, retailers decided to       April 13, all three games, which had
                                            temporarily suspend lottery sales.         been drawn using traditional ball
                                                Many lotteries adjusted their          machines, began using a random
                                            settlement terms, billing procedures,      number generator. In its press
                                            returns and other policies to assist       release announcing the change, the
                                            their retail partners in these and         emphasis was on maintaining the
                                            other circumstances.                       safety of the draw staff by minimiz-
                                                                                       ing the time necessary to conduct
                                                                                       the drawings. “Instead of taking an
                                              - There are a few reasons we will
                                                                                       hour for the midday drawing and
                                                still visit the retail location to
being good for employee morale.                                                        almost two hours for the evening
                                                ensure we are continuing to
By allowing employees to pick their                                                    drawing using the old method of
                                                provide excellent customer
tele-work days, we were able to give                                                   balls and machines, we will now be
                                                service and meet our retailer
them some flexibility.”                                                                able to complete this vital function
                                                needs during a unique time in
    Of course, no one knew then that                                                   in a matter of minutes,” said Chip
                                                retail.
tele-work would become the rule                                                        Polston, the Lottery’s Senior Vice
instead of the exception, but that                                                     President of Communications, Public
                                              - Without in-person visits, sales
desire to solve potential problems                                                     Relations and Social Responsibility.
                                                reps have ample technology to
before they start actually impacting                                                   He noted that the Lottery had
                                                remain in contact with retail-
the business “was a huge factor in                                                     already been using an RNG for other
                                                ers, assess inventory levels,
our preparedness for dealing with                                                      games, such as 5 Card Cash. “By
                                                adjust orders, etc.
COVID-19,” said Svitko.                                                                using this system, our drawings will
                                                                                       be done in a much quicker manner
                                              - Sales reps are calling their
Retail Management                                                                      with the same levels of security and
                                                retailer accounts, evaluat-
                                                                                       integrity.”
                                                ing needs, and making any
    The heart of every lottery is its
                                                requested deviations from au-
retail network, and the relationships
                                                tomated orders. Any situations           - We have reduced time in the
between a lottery’s sales staff and
                                                that may require an in-store               office to only the draw window
its retailers are priceless, especially
                                                visit are assessed on a case-              and are handling everything
face-to-face relationships. Those
                                                by-case basis. Any in-person               else remotely.
all but came to an end in most
                                                appointments would involve
jurisdictions. By the third week in
                                                taking all necessary public              - We do have the ability to tran-
March, lottery sales reps had been
                                                health safeguards.                         sition to RNG drawings to fur-
pulled from the field almost every-
                                                                                           ther limit the number of staff
where. Tele-calling was the new
                                                                                           present during the drawings.
name of the game, and sales reps            Drawings
began contacting their retailers on
                                                                                         - Our continuity of operations
a much more frequent basis, either              While retailers are essential for
                                                                                           plan includes contingency
by phone, email or other messaging.         lottery sales, a lottery’s drawings
                                                                                           procedures for stacked draws
Emergency repairs and other on-site         are also essential. In most cases,
                                                                                           should we be unable to con-
problem solving have been on an             the actual drawing production is
                                                                                           duct our drawings as sched-
as-needed basis.                            one of the key lottery functions that
                                                                                           uled. For draws, the drawing
    While some types of lottery             cannot be done remotely. Lotteries
                                                                                           officials come in after hours
retailers were shut down in many            established multiple draw teams,
                                                                                           and are therefore at a lower
jurisdictions as “non-essential”            separating them either on different
                                                                                           exposure than regular busi-
(such as bars and restaurants, upon         draw nights or setting up draws in
                                                                                           ness hours.
which many lotteries rely to sell           different rooms. Changing the way

14 | NASPL INSIGHTS May/June 2020
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                                      May/June 2020 NASPL INSIGHTS | 15
MAKING A DIFFERENCE - Special Edition

                                                                                  The Colorado Lottery's new touch-
                                                                                  free drive-up claims window.

    “Our draw staff have                its Board-approved Draw Services          by-appointment-only options, some-
      been exemplary                    Agreement. Additional member              times only for prize claims above
                                        lotteries have contacted MUSL staff       a certain threshold. Many lotteries
       throughout this                  to set up arrangements for future         also extended their claim periods to
     public health crisis,              emergency draw services should the        allow players with winning tickets to
     and have modified                  need arise. And to protect the health     hold onto them until a later date.
                                        of its essential staff, MUSL limited          Some new procedures included
       their schedules                  access to its main office to only au-     curbside or drive-up claims options,
      and lifestyles to                 thorized draw officials and auditors.     some of them touchless, which al-
    ensure that our draw                    “The ability to perform draw-         lowed lottery staff to quickly gather
                                        ings with integrity is the most vital     information and return with a check
    operations continue                 service that MUSL can provide its         to the player in a matter of minutes.
      on a daily basis.”                member and licensee lotteries,”               A mail-in claims service was
                                        MUSL Executive Director J. Bret           promoted by just about every lottery,
        - J. Bret Toyne, MUSL           Toyne said. “Our draw staff have          but it was quickly realized that there
                                        been exemplary throughout this            were limitations to that option. If a
                                        public health crisis, and have mod-       lottery’s headquarters were closed,
    In some cases where conducting      ified their schedules and lifestyles      for example, no one was able to
drawings simply became impossible       to ensure that our draw operations        pick up and process those mailed-in
given restricted building access        continue on a daily basis.”               claims.
or other issues, in stepped the                                                       And not surprisingly, many play-
Multi-State Lottery Association,        Claims                                    ers are uncomfortable with mailing
whose essential services to member                                                a winning ticket worth thousands,
lotteries include emergency draw            Of course, with drawings and          or even hundreds of thousands and
services. For a period of several       ticket sales continuing, lotteries also   more, to collect their winnings. In
weeks through mid-May as the            had to find new ways to process           response, some lotteries set up a
pandemic progressed, MUSL had           winning tickets. In state after state,    secure dropbox at their headquar-
performed 140 emergency drawings        claims centers were closed to the         ters, allowing players to deposit their
of jurisdictional lottery games under   public; others had limited hours or       valuable tickets directly.

16 | NASPL INSIGHTS May/June 2020
May/June 2020 NASPL INSIGHTS | 17
MAKING A DIFFERENCE - Special Edition

    The Louisiana Lottery addressed
the problem in another way, at least
for tickets with prizes up to $5,000,
by passing an emergency rule to
allow players to mail in photocopies
of winning tickets to claim their
prize, effective May 1. “Our players
have been extremely patient, holding
on to large winning tickets while
our offices have been closed,” noted
Lottery President Rose Hudson in a
press release announcing the new
rule. “We recognize that players
with tickets winning large prizes
have been hesitant to mail those in
for fear they could be lost. We are
so pleased that this rule change will
allow them to be paid in a timelier     The NASPL staff began using Microsoft Teams for its meetings. While social distancing
manner and with peace of mind.”         and proper face coverings aren’t necessary for virtual meetings such as these, we thought
Any prizes of more than $5,000,         we’d show off our adherence to pandemic guidelines!
or for multi-state games, still need
the original ticket, and players are
required to make an appointment for     public informed about beneficiary               reviewing contracts and negoti-
those claims.                           awareness and general information               ating agreements with vendors.
    Any lottery still processing        about lottery operations, including             Accounting and finance has to keep
in-person claims, by appointment or     how to claim prizes by mail.                    the bills paid and the invoices going
otherwise, has implemented strict           Those working on products, es-              out. Security has to accommodate
health policies, such as using gloves   pecially instant games, had to closely          situations in which employees are
while handling documents, staying       follow sales trends and inventories,            often remote, retailers are closed or
behind glass partitions and maintain-   and work with the sales team to                 struggling, claim centers are closed
ing social distancing.                  determine if the regularly-sched-               to the public ... the list goes on.
                                        uled game releases should continue,                 One of the biggest issues that
And the Rest                            particularly with game launches                 surfaced for all the necessary
                                        typically supported by advertising.             administrative work it takes to run
    There hasn’t been a single job at       Public relations staff had to tire-         a lottery was that while remote
any lottery that hasn’t been impacted   lessly address the media, the players           work is certainly possible, lotteries
by COVID-19. While those described      and other stakeholders with updates             typically rely on paper – docu-
above are some of the key aspects       on what was happening. They had to              ments and reports that are stored
of lottery operations that have been    realize that these are stressful times          at headquarters and invoices that
impacted the most, other employees      for everyone, nothing like anyone               come by mail, for example. Being
had to step up and alter the usual      had ever seen before, and continue              away from the office for an extended
way of doing things.                    to represent their lottery in a profes-         period time and not having access
    Marketing and promotions teams      sional and courteous manner.                    to critical documents was never
had to postpone or cancel events            For those lotteries that offer on-          part of any crisis management plans,
and figure out what to do next.         line sales, business has been robust            and moving forward lotteries will be
Advertising campaigns were scaled       in that channel. Everyone involved in           working to revisit all that reliance on
back or pulled entirely, and what       that area of the business has to make           paper.
did remain in media was generally       sure the online platforms hold up to                It’s all part of wondering what
shifted to a brand or proceeds focus,   sharp increases in volume.                      the “new normal” will be – but no
with an emphasis on beneficiaries           There are still more departments            matter how this ends, it’s a safe bet
instead of products. Lotteries kept     that must run smoothly to enable                that lottery employees will continue
their social media presence, but of-    successful lottery operations. The              to make a difference and keep the
ten with a shift towards keeping the    legal team has to keep things going,            revenues coming for good causes.

18 | NASPL INSIGHTS May/June 2020
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                                                       May/June 2020 NASPL INSIGHTS | 19
RESEARCH Corner

After Record U.S. Lottery
Revenues in 2019, What’s Next?
 Barry E. Goodstadt                Sarah Fulton                     Alex Chew
 Telecom, Utility & Regulatory     SFA Research & Strategy          The Harris Poll
 Consulting, LLC

A
          ccording to the North            resulting in diminished foot and car       part of the societal response to the
          American Association of          traffic. To address these conditions,      COVID-19 pandemic, sporting events
          State and Provincial Lotteries   the industry must come to grips            have been largely curtailed, leaving
(NASPL), sales and revenue from U.S.       with an unprecedented challenge            little opportunity to place wagers on
lotteries reached an all-time high in      to its growth and sustainability. A        sporting outcomes.
fiscal year 2019. The data indicated       number of state lotteries have closed           Third, the pandemic has trig-
that in 2019, industry sales of $91.3      their redemption offices and are           gered an economic downturn which
billion exceeded 2018 results by 6.7%      redeeming winning tickets by mail          appears similar in scope to the 1930s
    It is evident that 2019 was a ban-     and extending payoff deadlines. For        Depression. In light of this devel-
ner year for the industry, by almost       some time, starting Powerball and          opment, the gaming industry will
any measure:                               Mega Millions lottery jackpots, and        be faced with a potentially smaller
                                           incremental growth, were guar-             group of players with more limited
 • Double-digit revenue growth in          anteed – this will no longer be the        assets. Harris Poll data (May 2020)
   seven states.                           case since jackpot value is driven by      indicate that two in ten say they
 • Sports betting increased by 142%        lottery sales and those sales are now      will visit a casino within the first
   (on a small base of $18.5 million).     lagging.                                   month of the government providing
 • Instant games alone added $2.6              As is the case in many other fac-      information that the spread of the
   billion to total sales.                 ets of our society in recent months,       virus is flattening, nearly half (47%)
                                           a lot of things have changed in the        of the public say it will be between
    Due to these record results, the       gaming space in at least the near          2-11 months, and a quarter (25%) say
industry was initially faced with a        and medium term. First, given new          a year or longer. Nearly one in ten
question regarding whether signif-         social (i.e. physical) distancing rules,   (7%) say they will never visit a casino
icant growth can continue into the         the industry needs to move rapidly         again.
future, and if so, how. However, in        to determine how it can serve the               Findings from the April and May
light of the coronavirus pandemic          gaming public while consumers are          Harris Poll COVID-19 tracker also re-
that started in March 2020, the            unable to readily visit casinos and/or     veal six in ten Americans have been
answer to the industry question has        lottery retailers. When they do arrive     impacted financially in some way and
unfortunately been clearly answered:       at casinos, gaming enthusiasts will        more than half (55%) are concerned
Such growth will not likely continue       need to keep their distance around         that they may lose their job due to
at this time.                              gaming tables – but casinos were           the coronavirus outbreak. Nearly
    Instead, because of COVID-19, the      never designed to accommodate              two in five (41%) think their income
industry is faced with the question of     such physical distances between            will be lower in 2020, 38% are seek-
how to recover. Casinos in virtually       players.                                   ing out additional sources of income,
every state have been closed, and              Second, NASPL has noted that           and 84% feel that the coronavirus
lottery retailers are finding that their   sports betting experienced substan-        will cause a global recession.
sales have languished as state “stay       tial growth between 2018 and 2019               Cash-strapped Americans
at home” orders are put into effect        (primarily due to expansion). But, as      will be cautious investors, savvy

20 | NASPL INSIGHTS May/June 2020
Figure 1
Current Newly Adopting (Past Two Years) Lottery and Casino Players (as of September 2019)

                       180
                                                      168.0
                               159.7
                       160

                       140

                       120
 Millions of Players

                       100

                                                                                                                                                  84.5                                               86.5

                        80                                                                                                                                                   76.8
                                                                     65.3                                         70.5

                                              59.1                            60.1
                        60

                                                                                                                                                                                            44.4                 38.6
                                                                                                                                                                40.9
                                                                                                                                  37.9
                        40
                                                                                         30.7

                        20

                         0
                             Lottery draw players    Scratch-off players      Keno players                     Sports betting players          Video lottery players     Internet gaming players   Table game players

                                                                                             Current Players       Recently Adopting Players

deal-seekers and more inventive                                             September 2019, and determined                                                         1. The extent of playing specific
and attentive in managing their                                             that Millennials and Generation Z                                                         lotteries and casino games;
household budgets. Financing plans,                                         consumers participate in gaming                                                        2. Whether playing activity was
discounting and compassionate                                               in ways that are different from that                                                      recently started (in the past two
brand messaging will separate the                                           of previous generations. These                                                            years); and
opportunists from those who build                                           differences suggest that the mix of                                                    3. Generational differences in gam-
long term affinity as consumers                                             gaming options provided by lotteries                                                      ing activity.
struggle to get back on their feet.                                         and casinos will need to evolve in
    At the same time, there is a lon-                                       the future to a form that is more                                                   Key Findings
ger term threat to gaming. Industry                                         customized, innovative and more
speculation and research over the                                           mobile. The second survey effort                                                    Findings regarding near term growth.
past few years has raised questions                                         was conducted at the beginning of                                                   One of the most important findings
about the gaming participation of                                           March 2020, just prior to the sig-                                                  from the survey is that it supports
Gen Zers and Millennials as the role                                        nificant onset of coronavirus in the                                                the fundamental results of the
of Baby Boomers and members of                                              U.S. This survey sought to explore                                                  NASPL analysis in terms of the near-
the Silent Generation decline in the                                        the potential of internet-based                                                     term growth in lottery and gaming
coming years. (See Suh, E., Alhaery,                                        state-sponsored lottery applica-                                                    revenue. That is, traditional lottery
M., Abarbanel, B. and McKenna,                                              tions that would operate on mobile                                                  offerings generated an additional
A., “Examining millennials’ online                                          devices (iLottery) and examines how                                                 6.9% greater revenue in FY2019 than
gambling behavior: A Comparison of                                          iLottery could make a major contri-                                                 in FY2018.
generational differences.” Journal of                                       bution to recovery of gaming in the                                                     Findings regarding an increase
Hospitality and Tourism Technology,                                         post-COVID-19 era.                                                                  in the number of gaming partici-
2017, 8, 314-376.)                                                                                                                                              pants from the Harris Poll Survey
    To assist in addressing these                                           September 2019 Harris Poll                                                          are shown in Figure 1 and reveal a
issues, our research team, which                                            Survey of Gaming                                                                    dramatic increase in the number
includes The Harris Poll, has under-                                                                                                                            of new players during the past two
taken two significant survey efforts                                           An online nationwide Harris                                                      years. Thus, the number of “scratch-
focused on gaming activity by the                                           Poll Survey was conducted among                                                     off” players has risen by more than
general public. The first study was                                         2,032 adults aged 18 and older in                                                   65 million to 168 million users during
conducted by The Harris Poll in                                             September 2019 and focused on:                                                      the past two years. Lottery players

                                                                                                                                                                May/June 2020 NASPL INSIGHTS | 21
increased by 59 million over the past      Figure 2
two years to 160 million per year.         Generational Distribution of Adults 18+ in Harris Poll (Sample N=2,032,
While “scratch-off” games are lottery      Weighted Data)
games, the authors attempted to dif-
ferentiate between traditional lottery     40%

draw games (such as Mega Millions,
                                           35%                          33.90%
Powerball, Pick 2, Pick 3, Pick 4, etc.)                                                               32.20%

and “scratch-offs.” Therefore, “lot-       30%
tery players” as defined in the survey                                               26.50%

include only draw games players.           25%

    While NASPL analyses show
only modest growth in lottery-run          20%

gaming table revenue (2.7%), Figure
                                           15%
1 reveals that a substantial portion
of current table game players have         10%

only recently begun to play those
                                                                                                                       4.90%
games (39 million) in the past two          5%
                                                       2.60%
years. This suggests that prior to
                                            0%
the coronavirus pandemic there was                Silent Generation   Baby Boomers   Gen X         Gen Y-Millennials   Gen Z

significant upside in casino revenues,
but that growth in patronage has
not yet translated into significant
                                           non-gaming population. This is the            be an important component of the
revenue growth. Perhaps, the new
                                           next question raised in this research.        population to focus on for the future
players are not yet spending as much
                                                                                         of the gaming industry.
as more experienced players.
                                           What proportion of the population is
    NASPL findings suggest that rev-
                                           not engaged in gaming? To esti-               Generational differences in gaming
enue from lottery-operated sports
                                           mate the size of the non-gaming               activity. In order to examine genera-
betting is relatively small at this
                                           population based on survey results,           tional differences in gaming activity,
point in time ($45 million in FY2019).
                                           the survey analysis calculated the            one needs to define different gener-
The findings from the Harris Poll
                                           number of people who indicated that           ations in terms of their birth years.
indicate that over 70 million individ-
                                           they have not played any lottery or           To do this, a standardized approach
uals were engaged in sports betting.
                                           casino games in the past 12 months.           developed by the Pew Research
However, it should be noted that
                                           The analysis revealed that 20.7%              Center was used. The Pew genera-
“sports betting” was self-defined in
                                           of the adult population were not              tional definition is shown in Table 1.
the survey and could include sports
                                           engaged in gaming activities during               In the Harris Poll sample, these
betting activities through casinos or
                                           the prior 12 months. U.S. Census data         generations were estimated to be
that are not currently sanctioned by
                                           from 2019 estimated that the popula-          distributed in the population as
states (e.g. fantasy sports leagues,
                                           tion of adults 18 and older was 253.82        shown in Figure 2.
esports wagers, wagering with book-
                                           million. On that basis, it is estimat-            The chart indicates that Baby
ies and so on).
                                           ed for the September 2019 survey              Boomers, at this time, constitute
    Examination of the total popu-
                                           that the number of non-players is             34% of the sample in this study,
lation of gaming players suggests
                                           approximately 52.54 million. This will        Gen Xers are just over 26% of the
that large portions of the total U.S.
population has engaged in gaming
during the previous twelve months.         Table 1
The number of players of state lot-        Birth Years For Different Generations
teries and scratch-off lottery tickets
are at or above 160 million players.       Generation Name                            Birth Year Range
Such player estimates indicate that
                                           Silent Generation                          1928-1945
gaming has very widespread appeal
in the country; in fact, it is hard to     Baby Boomers                               1946-1964
think of many aspects of American          Generation X                               1965-1980
society that are more popular.
                                           Millennials/Generation Y                   1981-1996
    At the same time, it will be im-
portant to understand the size of the      Generation Z                               1997-

22 | NASPL INSIGHTS May/June 2020
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sample, while the Millennial gen-         Figure 3
eration is similar in size to that of     Participation in Any Gaming Activity During the Previous Twelve Months
the Baby Boomers – just over 32%           84%
of the sample. Gen Zers, over age
                                                                        83.3%

18, currently represent about 5%           82%
                                                        81.2%
of the sample. Over time these
proportions will shift due to aging,       80%

such that the proportion of surviv-
ing Silent Generation members and
                                           78%

Baby Boomers will decline while the        76%
                                                                                                             76.0%

proportion of Gen Xers, Millennials                                                        74.4%
and Gen Zers will grow. At this time,      74%

a large number of Gen Zers (born in
1997 and later) have not yet reached       72%

the legal gaming age of 18 but will do
                                           70%
so in the coming years.
    To examine differences in gaming       68%

behavior, survey analysis focused on               Baby Boomers Plus    Gen X         Gen Y-Millennials      Gen Z

gaming activity patterns across dif-
ferent generations. Considering the
small number of Silent Generation
members in the sample and prelim-            Turning to generational differ-      • Millennials and Gen Zers are
inary analyses indicating that Silent     ences in specific games, the survey       disproportionately more likely
Generation members act in similar         examined participation in:                to engage in sports betting while
fashion to Baby Boomers, these two                                                  Baby Boomers Plus and Gen Xers
generational categories were pooled        • State lotteries (draw games            appear less likely to participate in
into a category that is labeled Baby         including Powerball and Mega           sports betting.
Boomers Plus. Since the survey               Millions)                            • Baby Boomers Plus and Gen Xers
asked respondents to indicate which        • Instant scratch-off games              are disproportionately engaged in
gaming activities they have partici-       • Keno games                             all forms of casino games includ-
pated in during the previous twelve        • Sports betting (including sports       ing table games, video lottery and
months, the analysis focused on: 1)          picks and over/under picks)            online games. Millennials and Gen
what proportion of each generation         • Video lottery machine at a casino      Zers are less likely to actively par-
engaged in any gaming behavior in          • Casino-type games played online        ticipate in casino-based games.
the past year, and 2) how the gener-       • Table games at a casino
ations varied in their participation in                                             These data suggest that, over
specific types of games.                     The data suggested the following    time, as Baby Boomers Plus are
                                          findings:                              replaced by younger gaming partic-
Across-the-board differences in                                                  ipants (such as Millennials and Gen
gaming participation. The data on          • Lottery participation by dif-       Zers):
whether survey respondents partic-           ferent generations are roughly
ipated in any gaming activities in the       proportional to the size of          1. Draw games will not substan-
previous twelve months is shown in           each generation in the overall          tially be affected by generational
Figure 3.                                    population.                             change.
    The chart shows that over 80%          • Baby Boomers Plus are the more       2. A number of games will expe-
of Baby Boomer Plus and Gen Xers             prevalent players of scratch-           rience reduced activity and
participated in some form of lottery         off games while Millennials are         revenue including:
or casino activity over the previous         under-represented as scratch-off        • Keno
twelve months, while only 75% or so          players.                                • Scratch-off games
of Millennials and Gen Zers partici-       • Baby Boomers Plus dispropor-            • Casino-based games
pated in some types of lottery and/          tionately participate in Keno        3. Younger gaming participants will
or casino-based games. These dif-            games while Millennials are             seek participation in different
ferences were statistically significant      under-represented in the ranks          games that provide sports betting
(Chi-Square=99.39, p
May/June 2020 NASPL INSIGHTS | 25
March 2020 Harris Poll Survey of                      Figure 5
Gaming With a Focus on iLotteries                     Generational Differences Among Respondents in Likelihood
                                                      of Signing Up for iLottery
    With these findings in hand, the
research team initiated a second                      40%

Harris Poll survey on March 2-4,
2020. The second survey involved
                                                               34.9%
                                                      35%                                                                                                        33.7%
                                                                                                                         33.4%

2,011 respondents to explore the                                                                      31.3%

likely impact of iLottery programs                    30%

offered by state lotteries. As of that                                                                                                                25.3%

date, eight U.S. lotteries offered iLot-              25%

tery with single-draw sales. These
                                                                              19.5%
offerings enable gaming participants
                                                      20%

to play a variety of online lottery
                                                      15%                                                                                                                                14.1%
games using a desktop or laptop PC
as well as various mobile devices
                                                                                                                                                                                                      10.4%

                                                      10%                              9.80%

including cellular phones and tablets,
encompassing both Android and                          5%                                                                          3.50%
                                                                                                                                                                                 5.10%                            4.50%

Apple devices. The games can only
be played while the participant is                     0%

physically located in the state that
                                                                       Gen Z (N=209)                        Millennials (N=562)                               Gen X (N=510)                Boomers Plus (N=731)

                                                                                                       Somewhat Likely            Very Likely   Already Signed Up for iLottery

offers iLottery.

Key Findings
                                                      they would be to sign up for an iLot-                                                     is good upside potential for the
   The findings from the March                        tery service in their state. Figure 4                                                     iLottery concept among consumers.
survey covered several key issues,                    displays the results.                                                                     If one takes a conservative view of
including overall interest in iLottery                    Those results indicate that 5% of                                                     these data using an 80/20 rule (80%
and generational differences in                       respondents in the survey already                                                         of “very likely to sign up” plus 20%
iLottery opportunities.                               subscribe to an iLottery offering.                                                        of “somewhat likely” to sign up) then
                                                      In addition, 49% indicated that                                                           it might be anticipated that approx-
Overall Interest in the iLottery                      they would be very likely (25.1%)                                                         imately 25% of the population will
Concept. In the survey we asked                       or somewhat likely (23.9%) to sign                                                        sign up for the iLottery service. This
respondents to indicate how likely                    up. These data suggest that there                                                         estimate should be supplemented
                                                                                                                                                to the proportion in the popula-
                                                                                                                                                tion (4.9%) indicating that they are
Figure 4
                                                                                                                                                already signed up for iLottery, which
Respondent Likelihood of Signing Up for iLottery
                                                                                                                                                leads to a total estimated demand
40%                                                                                                                                             of 30%. This estimate suggests that
                37.3%
                                                                                                                                                iLottery can make a major contri-
35%
                                                                                                                                                bution to recovery of gaming in the
                                                                                                                                                post-COVID-19 era.
30%

25%                                     23.9%
                                                              25.1%                                                                             Who Is Likely to Sign Up for iLot-
                                                                                                                                                tery Service? One of the keys to
20%                                                                                                                                             understanding the likely impact of
                                                                                                                                                iLottery on the gaming industry is
15%                                                                                                                                             to determine how likely different
                                                                                                                                                segments of the population are to
10%
                                                                                                                                                sign up for iLottery as a mechanism
                                                                                                     4.9%                                       to participate in state-sanctioned
 5%
                                                                                                                                                gaming. Considering the differ-
 0%
                                                                                                                                                ences across generations in terms
       Not at all/Not Very Likely   Somewhat Likely         Very Likely                        Already Signed Up
                                                                                                                                                of gaming activity identified in the

26 | NASPL INSIGHTS May/June 2020
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Table 2
Estimated Demand for iLottery Participation by Generation

Generation                     80/20 Market Estimate     Already Signed Up for iLottery      Total Estimated Demand
Gen Z                                         22.58%                              9.80%                        32.38%
Millennials                                   32.98%                              3.50%                        36.48%
Gen X                                         32.02%                              5.10%                         37.12%
Boomers Plus                                   11.11%                             4.50%                         15.61%

September 2019 survey, the anal-         Zers are also likely to adopt this new     vehicle for addressing the coming
ysis was focused on differences in       platform and, in fact, 10% appear to       challenge of generational change
iLottery interest among Gen Zers,        have already done so. Baby Boomers         as Baby Boomers are succeeded
Millennials, Baby Boomers and Gen        and their predecessors in the Silent       by Millennials and by Gen Zers.
Xers.                                    Generation are only about half as          Younger generations appear to be
    The results from this analysis is    likely to sign up for iLottery.            more interested in iLottery and this
shown in Figure 5.                           In some ways these results are         will be important for future sustain-
    The analysis entailed an 80/20       not surprising since the younger           ability of the industry.
rule (80% of Very Likely plus 20%        generations are highly dependent               Our team also recommends that
of Somewhat Likely) to develop an        upon mobile phones for much                lottery and casino operators develop
estimated demand level for iLottery      of their communication and                 programs for tracking changing
by generation. Earlier it was noted      entertainment.                             preferences in gaming as a method
that approximately 5% of respon-                                                    of guiding efforts to recover from
dents already participate in iLottery    Conclusions and                            the COVID-19 downturn and to an-
in their states. The level of existing   Recommendations                            ticipate changing needs of younger
participation was then added to                                                     generations.
the likelihood estimate to yield an          In the face of challenges con-
overall estimate of demand by gen-       fronting the gaming industry over
eration. These results by generation     the next few years, it appears that
are summarized in Table 2.               iLottery can potentially provide
    The data reveal that demand          a direction that the industry can
for iLottery varies substantially by     pursue as it seeks to recover from
generation. Millennials and Gen Xers     the current coronavirus pandem-
appear to be the most likely to adopt    ic. Study findings suggest that
iLottery, at around 36%-37%. Gen         iLottery offerings also provide a

  Notes
      These surveys were conducted online within the United States by The Harris Poll from September 10-12, 2019,
  among 2,032 U.S. adults ages 18 and older, and March 2-4, 2020, among 2,011 U.S. adults ages 18 and older. COVID-19
  related surveys were conducted from April 11-13, 2020, among 2,013 U.S. adults ages 18 and older and from May 1-3,
  2020, among 2,039 U.S. adults ages 18 and older. This online survey is not based on a probability sample and therefore
  no estimate of theoretical sampling error can be calculated.
      For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Alex
  Chew (alex.chew@harrisinsights.com). For other questions or for more information, please contact Dr. Barry Goodstadt
  (bgoods@comcast.net) or Sarah Fulton (sfaresearch01@gmail.com).

28 | NASPL INSIGHTS May/June 2020
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