VIRTUAL IS GOING - NASPL Matrix
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Delaware Lottery | California Lottery | Sports Betting | Associate Members
INSIGHTS
THE OFFICIAL PUBLICATION OF THE NORTH AMERICAN ASSOCIATION OF STATE & PROVINCIAL LOTTERIES
Conferenc
SEPTEMBER/OCTOBER 2020 e
Preview &
NASPL Aw
ard
Entries! s
IS GOING
VIRTUAL
FROM THE NASPL
PRESIDENT
Executive Director
DAVID B. GALE
And just like that, autumn has arrived.
H
Director of Administration
THOMAS TULLOCH
ere in Big Sky Country, that means Vp of Operations
cooling temps, festive flavors and a ka- ANDREW WHITE
leidoscope of fall colors. For the lottery Director of Program Planning
industry, it means it’s time for the annual NASPL TAMIKA LIGON
Conference. Graphic Designer
This year, to continue to provide educa- JOHN KOENIG
tional opportunities and promote industry Accounting
development in a safe but effective manner, NATALIE ROSS NORRIS
we’re going completely virtual – with DeskCon Editor
2020. PATRICIA MCQUEEN
For the first time ever, NASPL is pleased to Vendor Relations
introduce a weeklong, fully digital program, JAKE COY
streaming straight to your office. We have an I.T. / Software Development
exciting curriculum planned, with engaging speakers and timely topics. And PAUL COREY
we’ll also be honoring outstanding industry individuals and recognizing the most Communications Coordinator
creative and successful new games, marketing strategies and advertising with the MACKENZIE WHITACRE
annual NASPL Awards.
We’ll certainly miss seeing our members and contributors in person. However, EXECUTIVE COMMITTEE
this new platform provides us the opportunity to make this event easily accessible
President
to our entire membership – all with a click of the mouse. ANGELA WONG
Registration is FREE, simple and convenient. Scheduling conflict? Not a prob-
First Vice President
lem. All sessions and presentations will be available on the NASPL Matrix to view SARAH TAYLOR
or revisit at your convenience.
Second Vice President
Most importantly, DeskCon 2020 will cover the issues most relevant to our GRETCHEN CORBIN
industry right now, including responsible gambling; diversity and inclusion; suc-
Treasurer
cessful game launches and innovative prize structures; optimizing consumer and CINDY POLZIN
retailer solutions; and, of course, adapting and evolving successfully through the
Secretary
pandemic. For a complete conference preview, check out page 38. TBD
Also in this issue, we welcome our newest contributor, Marlene Warner,
Immediate Past President
Executive Director of the Massachusetts Council on Gaming and Health. Marlene CHARLIE MCINTYRE
has more than two decades of experience in focused responsible gambling ef-
Pres. Interprovincial Lotteries
forts; before becoming the Mass Council’s Executive Director in 2011, she worked LYNNE ROITER
as their Program Director for ten years. We’re very excited to have her on board
Region I Director
to lend her expertise. GORDON MEDENICA
Here, and in her upcoming bi-monthly Insights articles, Marlene will provide
Region II Director
guidance on significant RG topics. See page 18 for her advice to lotteries on con- BETH BRESNAHAN
ducting responsible gambling in the “new normal” brought about by COVID-19.
Region III Director
So grab a pumpkin spice latte (or the fall beverage of your choice) and read on. BRIAN ROCKEY
And I hope to “see” you all on October 26, for the kickoff of DeskCon 2020.
Region IV Director
Til then, BARRY PACK
CIRCULATION:
Insights ISSN 1528-123X,
September/October 2020,
Volume No. Twenty, Issue Five.
Published bi-monthly by NASPL
Angela Wong (North American Association of State
Director, Montana Lottery and Provincial Lotteries)
NASPL President 7757 Auburn Road Unit #7
Concord, OH 44077
© 2020 All rights reserved.
NASPL Email:
info@nasplhq.org
Websites:
www.naspl.org / www.nasplmatrix.org
p 440.361.7962
2 | NASPL INSIGHTS September/October 2020 f 440.867.2327
Go Digital. Drive Results.
120+ Digital Customers | $26+ Billion in Digital Wagers*
IGT PlayDigital™ can get the job done for your lottery today. From retail
solutions and full-on digital gaming with PlayLottery to the latest opportunities
in sports betting, our solutions drive performance by delivering true convenience
and exciting content. It’s time to accelerate your growth with digital.
Contact your IGT representative today to learn more.
*JANUARY 2018 - APRIL 2020 YTD IGT RGS DIGITAL WAGERS ONLY
© 2020 IGT Global Solutions Corporation. The trademarks used herein are owned by IGT or its affiliates, may not be used
without permission, and where indicated with a ®, are registered in the U.S. IGT is committed to socially responsible gaming.
Our business solutions empower customers to choose parameters and practices that become the foundation of their
Responsible Gaming programs. Images are representative only.
September/October 2020 NASPL INSIGHTS | 3
INSIDE INSIGHTS | SEPTEMBER/OCTOBER 2020
Issue
In this
32
6 Up Front
24
Industry news and updates.
10 Making a Difference:
James Teichroew
Manager, Telecom and Retail Services,
Western Canada Lottery Corp.
16 Research Corner:
NASPL DeskCon 2020 Preview
The Road to Prize Structure
Optimization
By Maureen Watson, Research and Consumer Strategist, 38 The NASPL Annual Conference
Virginia Lottery, and Ryan Walters, Scratch Games Manager,
Virginia Lottery Is Going Virtual
Like everyone else this year, NASPL has adapted to
a new reality, and you won’t want to miss our great
18 Responsible Gambling in a “New” Normal: virtual event!
By Mackenzie Whitacre
Changing Realities in 2020
By Marlene Warner, Executive Director,
Massachusetts Council on Gaming and Health
40 Time to Shine
Complete listing of the NASPL 2020 Awards Entries
20 Progress Report: and Judges.
American Sports Betting
No one could predict the tumultuous events
of 2020, but lotteries continue to expand into
sports betting to meet the demand.
By Patricia McQueen NASPL 2020 Associate Members
24 Golden Years in California
Legislative relief can go a long way, and California
64 Executive Q&As
is a shining example of how removing certain
Interviews with executives from our top level
restrictions can trigger unprecedented growth
Associate Members.
in both sales and revenues to good causes.
By Patricia McQueen
71 Lessons Learned From the Pandemic
32 First in Many Ways Associate Members share thoughts about what the
Delaware may be a small state, but its lottery industry can learn from the global pandemic.
has had a big influence on the expanded role
of lotteries in the gaming industry.
By Patricia McQueen
82 Associate Member Profiles
4 | NASPL INSIGHTS September/October 2020
Enhanced Partnership
Your Bottom Line is
More Than a Number
SGEP Lotteries have weekly per capita sales that are 56%* higher than
self-managed lotteries and 27%* higher than lotteries managed
by other vendors. Drive more to your bottom line and to
the good causes your lottery supports.
*B
as
ed
on
C
Y
20
19
W
ee
kl
y
Pe
r C
ap
ita
In
st
ant
G
am
e
Sa
le
Reimagine Next
s
© 2020 Scientific Games Corporation. All Rights Reserved.
Helping Keep Gambling
Safe in the Garden State
By Mackenzie Whitacre
N
ew Jersey Lottery games pro- This annual “Not 18 Yet? No Bet”
vide fun and entertainment awareness campaign, in partnership
for players while also gener- with the Council on Compulsive
ating essential revenue for education Gambling of New Jersey (CCGNJ),
and state-supported institutions. reminds residents and retailers that
However, the Lottery is aware that New Jersey law prohibits the sale of
for some individuals any form of lottery tickets to or by anyone under
gaming can be a problem. As a result, the age of 18.
the New Jersey Lottery promotes In a campaign kickoff event host-
and encourages responsible play ed by a New Jersey Lottery retailer,
with several important initiatives, Jerry Guarino, Deputy Executive
including the “Not 18 Yet? No Bet” Director of the New Jersey Lottery,
campaign. and Neva Pryor, Executive Director
6 | NASPL INSIGHTS September/October 2020
September/October
July/August 2020 NASPL INSIGHTS | 7
Policy; Responsible Gaming and
Consumer Internal Controls; and
“The Lottery continues to be a great a Marketing Code of Conduct.
Their administration includes a
partner in promoting the importance of Responsible Play Manger as well.
Additionally, the Lottery provides
responsible gambling and in publicizing responsible gambling training for
the Council’s helpline number.”
staff members, retailers and sales
clerks, and contributes funding for
problem gambling services in the
state.
- Neva Pryor In March, the Lottery recogniz-
es Problem Gambling Awareness
Month, in an effort to educate the
general public and health care pro-
of CCGNJ, renewed their organiza- “The Council is expanding its fessionals about the warning signs
tions’ commitment to responsible community and school-based out- of problem gambling and to raise
play and the prevention of underage reach programs. One of our focuses awareness of the help that is avail-
gambling. is preventing the onset of gambling able both locally and nationally.
“The Lottery has a longstanding addiction among adolescents and And every winter, the New Jersey
commitment to promoting responsi- young adults, so the New Jersey Lottery partners with the National
ble play and discouraging underage Lottery’s message and support is Council on Problem Gambling and
gambling of any kind,” Guarino said. particularly important,” said Pryor. the International Centre for Youth
“We have an active partnership with “The Lottery continues to be a great Gambling Problems and High-Risk
the Council and support their efforts partner in promoting the impor- Behaviors at McGill University
to prevent underage gambling.” tance of responsible gambling and to participate in the Responsible
To help get the word out, the in publicizing the Council’s helpline Gambling Holiday Lottery Campaign,
Lottery developed a “Not 18 Yet? No number.” communicating the risks of under-
Bet” brochure, in both English and The alliance between the New age lottery play during the holiday
Spanish, that contains information Jersey Lottery and CCGNJ doesn’t season. In 2019, the Lottery was a
about the major types of teen betting end with the “Not 18 Yet? No Bet” Level 3 participant in the campaign,
and ways to recognize signs of a campaign. The Lottery has had engaging at the highest standard of
gambling problem in minors. It also a representative on the CCGNJ’s involvement.
provides important contact infor- Board of Directors since June 1999; For these efforts and more, the
mation for those seeking individual the Council’s problem gambling New Jersey Lottery has been award-
advice and assistance. helpline number is printed on every ed Level 4 certification in the World
The brochures are available at Lottery ticket, brochure and sign; Lottery Association’s Responsible
more than 7,000 Lottery retailer the Lottery’s website directs visitors Gaming Framework. This is the
locations, at all Lottery-sponsored to the Council’s site, which provides WLA’s highest level of responsible
exhibits and events, and may be free information and guidance to gambling achievement, recognizing
downloaded from the Lottery’s anyone who may have or need advice the Lottery’s planning, development,
website. The “Not 18 Yet? No Bet” about a gambling problem; and the implementation, and continuing im-
message and the 1-800-GAMBLER Lottery adheres to advertising and provement of responsible gambling
Helpline number are continually marketing policies that encourage programs and initiatives.
flashed on digital messaging screens responsible play and promote the
at all retailer locations as well. services available through CCGNJ.
Additionally, the Lottery provided The New Jersey Lottery partici-
the CCGNJ with additional “Not 18 pates in a number of additional re-
Yet? No Bet” brochures, along with sponsible gambling initiatives as well.
supplies of pens and pencils imprint- The Lottery has adopted for-
ed with the message “You Must Be 18 mal codes of conduct that address
or Older to Play the NJ Lottery,” for responsible gambling and problem
distribution to students who attend gambling awareness, including a
the Council’s school lecture series. Corporate Social Responsibility
8 | NASPL INSIGHTS September/October 2020
September/October 2020 NASPL INSIGHTS | 9
Making A Difference
James Teichroew
Manager, Telecom and Retail Services, Western Canada Lottery Corp.
N
ever has technology been closely with each jurisdiction’s nothing better than to be outdoors.
so important as it is in 2020, individual gaming agencies: Alberta Of course, this year he’s taken on a
when businesses across Gaming, Liquor and Cannabis; new appreciation for the home front
the globe shifted to remote work Saskatchewan Lotteries; Manitoba and has been taking on home im-
environments. IT teams had to make Liquor & Lotteries Corporation; provement projects. But hiking, bike
the transitions seamless, and ensure Lotteries Yukon; and NWT & riding and exploring have always
that network infrastructures were Nunavut Lotteries. been tops on his “things to do” list
up to the task. Lotteries had the Teichroew began in 1998 as a with his wife Leslie; that is, when he
additional complication of managing security officer and quickly moved wasn’t spending time helping his son
their retailers, including critical into computer operations. In 2004, with his passion for sports, particu-
technology and networking issues. he joined the quality assurance team, larly hockey and lacrosse. He spent
And in the thick of all that was James first as an analyst and then advanc- several years volunteering as a hock-
Teichroew, Manager, Telecom and ing to a supervisory role in 2011, and ey coach, and continues to serve on
Retail Services, for Western Canada finally as an acting manager in 2017. the board of a local community club,
Lottery Corp. The quality assurance team is vital to which offers sports, senior programs
“James is a valued team member the quality and integrity of products and an activity center. He also has
at WCLC, and he and his team are and services prior to rolling them a black belt in taekwondo and has
critical to the support of our retail out to the production environment. served as an instructor.
network – a crucial pillar of our “Anytime there was a new game or Teichroew holds certificates in
business,” said Nicholas Douville, game update, a new sales channel, project management from Red River
WCLC’s Director of Infrastructure or a new infrastructure or system College and in management and
and Operations. “The responsibility change, we were heavily involved in administration, with honors, from
of that network is significant: Almost that,” noted Teichroew. the University of Manitoba CIMA
5,000 retailers spread over nearly six His new role began last year, in program.
million square kilometers, operating which he manages WCLC’s internal
on behalf of six governments and telecommunication systems and What are the biggest challenges that
five partner organizations. Yet, even also oversees daily operations at come from serving several different
given his demanding workload, retail. “Essentially we oversee the governments?
James is always upbeat and ready to life cycle of a retail location, from Understandably the governments
take on the next challenge. He is a implementation, hardware/logistics of each province and territory have
trusted resource and valued col- management, acquisition of net- their own mandates and constraints,
league for many of us throughout the work accesses, maintenance and depending on the people they
organization.” support, and decommissioning,” he represent, the economy, and other
A seasoned WCLC veteran, explained. He is also in charge of external factors. Those differences
Teichroew has over 20 years of planning and budgeting for strategic do have an impact not only in the
service to the organization. WCLC initiatives impacting retail, including projects that we choose to do, but
is primarily a sales and marketing advancements in retail hardware and even in how we operate. From
company, managing lottery games in network technologies. my perspective, whether you are
Alberta, Manitoba and Saskatchewan, While work keeps him delving managing a departmental budget
plus the Yukon, Northwest into networks and technology, in his or doing higher-level activities
Territories and Nunavut. It works spare time Teichroew always liked like defining long-term corporate
10 | NASPL INSIGHTS September/October 2020“He is a trusted
resource and
valued colleague
for many of us
throughout the
organization.”
-Nicholas Douville
September/October 2020 NASPL INSIGHTS | 11strategies, we always have to be
cognizant of the environment that
these governments are working in,
and making sure that our efforts
and services are bringing value to
everyone. We need to continuously
monitor our activities, and work with
our corporate leaders and executive
team to ensure that our efforts are
being appropriately directed. For
example, each jurisdiction will have
different retail strategies, which are
determined by their gaming agen-
cies, and our role is to support and
provide whatever they need.
With more than two decades at
WCLC, what would you say have been
the most significant changes in the
industry over the years?
Working in IT as I do, it’s remark-
able the speed at which technology
changes. Not only the tools that
we use to do our jobs, but also the
technology that consumers can
access. I was in quality assurance for While it wasn’t exactly “business
strategies, because you only have
15 years, and at the beginning we just as usual,” our mandate to sell lottery
someone’s attention for 30 seconds
supported a couple of systems and continued. Initially there was a lot
before they move on to something
a small catalog of draw games. Now, of uncertainty as we looked to our
else. Our minds can only consume
we support more systems and a governments for guidance, and we
so much content, so it’s a struggle to
broad user base, with new technolo- did have a few retailers voluntarily
see how we operate in such a digital
gy tools that help us manage our test decide to temporarily stop selling
and content-heavy environment.
environment and our infrastructure. lottery. My department was instru-
For lotteries, the speed at which
Productivity tools like Outlook and mental in facilitating that, as we
the world moves means that when
our mobile devices help us stay in run the tech support hotline for
there is public acceptance of doing
contact at all times and allow us to retailers and manage network access
something in a new way, you have
absorb a lot more of what’s going for all retail sites. We helped them
only one chance to do it right. It’s no
on. But that only gets you so far – as go through the process of shutting
wonder lotteries are careful about
technology changes, you constantly down lottery, and then got them
taking any big new steps.
have to look at your processes and back up and running when the time
strategies to make sure that you are came. We have definitely seen an
How has WCLC adapted during the
getting value for what you are doing. pandemic, and what changes do you impact on our draw game sales, but
Technology isn’t just a one-shot see going forward? with Manitoba allowing online sales
solution, where you’d paint yourself Obviously we weren’t alone in along with a concurrent increase in
into a corner and realize that the being impacted with the pandemic. instant product sales, that helped
pace and level of output was not The biggest change was the way offset the retail decline.
sustainable. we enabled pretty much everybody We have seen retailers implement
At the consumer level, it’s to work remotely from home. We new social distancing guidelines
incredible that almost every person already had remote access ability and things like plastic shields, but
in North America has a networked and policies in place for those who generally speaking we didn’t change
computing device at their hand at all needed it, but with the pandemic we the retail experience with respect
times. How do we take advantage of really mobilized our team to provide to lottery. That said, we had already
that and get our message out there, that across the organization. As a been working on some new strategic
especially when so many social plat- 20-year employee, I couldn’t believe initiatives such as letting players
forms have such a short life cycle? I how quickly and how successfully build playslips on their mobile
really respect the work that mar- we rolled out remote working devices, producing a barcode to scan
keting people do to develop these environments. at retail. The pandemic has clearly
12 | NASPL INSIGHTS September/October 2020are continuing with the Lotto Spot
brand for these new units, which is
also the name of our mobile app. It’s
all part of our rebranding project
and refreshing the look at retail.
They are really eye-catching displays
that draw in consumers, much like
you’d see at some restaurants where
you can create your own order on
a self-service kiosk. There’s a lot of
potential for these digital units to
add features as we go along.
Is there anything you wish WCLC, or
the lottery industry in general, could
do differently?
Earlier I mentioned how working
remotely has been one big outcome
of the pandemic. That’s a real
indicated that there is an increased the retail world. I do think the ability fundamental shift, and I don’t think
need for these types of things, to to offer mobile enhancements is we had the luxury of debating it – it
make the retail lottery experience important, as I mentioned, but we just was the reality. But I think it was
more seamless and able to take do have one interesting project a direction in which we were already
advantage of mobile technologies. underway. We’re refreshing the heading, albeit slowly, and it has the
lottery play centers provided at impact of changing our corporate
Are there any new technologies in retail with digital versions, what we culture. Instead of focusing so much
retail that you are excited about for are calling interactive play tables. of our resources on our offices, on
the lottery industry? They include a touchscreen display keeping the lights on, so to speak, we
The gaming agencies I work with where players can get all the lottery can focus more of our talent on in-
are the ones who directly recruit and information they need, from how to novation and strategic development.
manage retailers, and I’m still in the play to winning numbers to sports Finding new ways to support our
process of thoroughly understanding data and everything in between. We infrastructure and our operations.
September/October 2020 NASPL INSIGHTS | 13And while I don’t think this is
an area where the industry has
necessarily been lacking, I think this
change in our culture has helped to
focus on transparency, and on using
technology to deliver more support
and engagement from our executive
team to our team members. Now,
the frequent communications,
staff updates and surveys that have
come during the pandemic are very
positive steps to avoid siloing and
help set us up to be successful as we
go through the next few months and
beyond.
What has kept you at WCLC all these
years?
It really comes down to the peo-
ple – the personal and professional
relationships that I’ve built over the
years. We have a lot of great people
who work here, really contributing to
our success. When you keep that in
mind, it helps you through the rough
patches. After all, things don’t always
go according to plan. By focusing on
people and relationship-building,
you can ride the roller coaster and
introduce a little levity in times of
stress.
I have also loved the opportunities
that have presented themselves.
Opportunities for advancement, for
training, mentoring and coaching.
The environment is always chang-
ing, and the challenges keep it
interesting.
14 | NASPL INSIGHTS September/October 2020“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
September/October 2020 NASPL INSIGHTS | 15RESEARCH Corner
The Road to
Prize Structure
Optimization
Maureen Watson
Research and Consumer Strategist,
Virginia Lottery
Ryan Walters
Scratch Games Manager,
Virginia Lottery
O
ver the past year, we have We conducted this research defined as having played that specific
conducted a thorough via an online methodology; a price point Scratcher in at least the
analysis of our Scratcher separate survey was used for each past month.
performance metrics. We wanted price point offered in our scratch We found that satisfaction began
to understand what propelled the portfolio. The survey(s) included with a win that was close to double
best-selling themes, playstyles, hypothetical store-visit scenarios the initial investment. When it came
bonus features, prize offerings and during which respondents were to reinvestment, we found that rein-
product mix. During our review, we told they “purchased” a [price point] vestment levels increased as prizes
recognized an opportunity to better Scratcher and then were shown a increased. Players didn’t double
understand what our players con- “winning amount.” We followed up their original investment until they
sidered a meaningful win. We began with satisfaction, recommendation reached higher levels of satisfaction.
working closely with our research and reinvestment questions after However, willingness to talk about
team to maintain a dialogue with each “winning amount.” Each price a win with family and friends began
our players via our monthly tracking point had its predetermined winning not long after achieving some degree
study and meaningful-win research. amounts, and they were shown to of satisfaction with the winnings.
Our goal was to answer these two the respondent randomly. Below are the takeaways (by
questions with our meaningful-win We ensured survey respondents Scratcher price point) from our
research: were Virginia adults 18 and older and research.
made sure the respondents repre-
• When are players satisfied and sented an equal distribution of age • Satisfaction for $1 Scratchers
extremely satisfied with a win, and gender. Respondents must have began at $2. Players reinvested
and how much do they reinvest? played a scratch game in the past 12 double the initial investment
• At what point does a win become months, and we included a subgroup amount starting with a $5 win.
so meaningful that a player talks of frequent scratch players for each The largest increase in word-
about it? price point. Frequent players were of-mouth promotion was found
16 | NASPL INSIGHTS September/October 2020Research Results
Meaningful Wins
$1 $2 $3 $5 $10 $20 $30
• Satisfied • Satisfied • Satisfied • Satisfied • Satisfied • Satisfied • Satisfied
$2 - $10 $4 - $10 $6 - $25 $10 - $35 $15 - $50 $30 - $80 $40 - $90
• Extremely • Extremely • Extremely • Extremely • Extremely • Extremely • Extremely
Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied
$20 - $50 $40 - $75 $50 - $90 $50 - $100 $100 - $200 $150 - $400 $200 - $600
$5 $10 $15 $20 $40 $60 $90
~70% Range
when the prize amount increased began at $30. The majority of a few games such as the $5 Did I
from $15 to $20. players would discuss a win start- Win? Scratcher and the Ca$h Cha$er
• Satisfaction for $2 Scratchers ing at $40 and reinvest double the family of games. Did I Win? launched
began at $4. Players reinvested amount of their initial investment in April during the onset of the pan-
double the initial investment with a $300 win. demic and ended with a 114% index.
amount starting with a win • For $30 Scratchers, satisfaction To improve the winning experience,
between $12 and $15. The largest began at $40. The majority of we gave it a top prize of $75,000,
word-of-mouth gain was found players would discuss a win start- which is slightly lower than average.
when the prize amount increased ing at $50 and reinvest double the The game also featured overall odds
from $15 to $20. amount of their initial investment of 1 in 2.98, providing our players
• For $3 Scratchers, satisfaction with a $600 win. with more favorable overall odds
began at $6. Players reinvested than our typical $5 Scratchers.
double the original investment We found that a large percentage Our Ca$h Cha$er family of
amount with wins between $20 of our players were satisfied with games launched in June and fea-
and $25. An increase in prize relatively low wins (between two and tured standard top prizes, but the
amount from $15 to $20 resulted five times their initial investment) prize-funding allocations focused
in the greatest likelihood of and extremely satisfied with wins on those meaningful-win ranges.
word-of-mouth promotion. that were 10 to 20 times their initial Here are the 12-week indices for the
• Satisfaction for $5 Scratchers investment. More importantly, the tickets in that family:
started at $10. Players would results highlighted key wins within
discuss a $5 Scratcher win at each price point; these are shown at • $1 $500 Ca$h Cha$er: Index 102%
the $20 to $35 prize levels, but the bottom of the illustration above. • $2 $15,000 Ca$h Cha$er: Index
double reinvestment began when These were the wins for which the 104%
winnings reached $50 to $75. satisfaction jump was the largest. In • $5 $150,000 Ca$h Cha$er: Index
• Satisfaction for $10 Scratchers addition, these are the prize levels 109%
started at $15. Players reinvested at which our players’ reinvestment • $10 $500,000 Ca$h Cha$er: Index
double the original investment levels begin to increase. 106%
amount with wins between $75 We have used our meaningful-
and $100. Winning between $20 win research to adjust our prize Overall, the research was pro-
and $50 drove the largest word- structure funding allocations to ductive. We look forward to further
of-mouth gain. optimize the winning experience. integrating our findings into game
• For $20 Scratchers, satisfaction We have seen early success with development.
September/October 2020 NASPL INSIGHTS | 17Responsible Gambling in a “New” Normal:
Changing Realities in 2020
Marlene Warner
Executive Director, Massachusetts
Council on Gaming and Health
I
t is an understatement to say that 2020 has been a have their best interest in mind. It may seem simple but
tough and strange year. Whether you think about the can have huge implications for the trust they’ll have in a
pandemic, the economy, civil unrest, in-school or lottery and the value they’ll put on their relationship with
online learning for your kids, or simply the environmental the lottery. Remind people to follow the health guidelines
anomalies thrown at us, many people are feeling anxious that the CDC and others are promoting. Promote
and/or overwhelmed. And in these times many people responsible gambling by reminding people that they
are drawn to simpler and more reliable ways to distract should social distance when purchasing tickets in a store,
themselves from these challenging realities. and to wear masks when walking inside to purchase
I believe that’s why we have seen people returning to tickets. It would also help to make hand sanitizer or
their favorite comfort foods and forms of entertainment, wipes available. And at least temporarily, take away the
such as favorite hobbies, well-worn books, puzzles, pre- pencils by the playslips at all lottery agents that are often
dictable movies, hiking and biking. Many people have also left behind and reused; any other items that might be
adopted pets to help cope with these times. In addition to touched by others in the process of purchasing lottery
these ways to pass the time and escape the world around tickets should be disposed of properly.
you, some people have also played lottery to distract In addition to these safety measures, it is important
themselves. When the rest of the world feels chaotic, to work collaboratively with your local health officials
it feels good to go back to things you can rely upon, to offer the contact information for local physical and
including purchasing a ticket at your local convenience mental health resources for players through your lottery’s
store from the friendly clerk, or playing your grandkids’ website, retailers and sales agents, and for your employ-
birthdates and your wedding anniversary on the weekly ees through your in-house communications channels.
numbers. Additionally, reminding players to balance their
Lotteries around the world are currently in the gambling with other types of leisure activities is a great
process of pitching their products to returning players responsible gambling tip.
with these new realities – trying to increase sales while
keeping their players safe. Here are some ideas on how to Cash Is Out, Cashless Is In: Safety for Everyone
conduct responsible gambling amidst the “new” normal.
Don’t you hate that term? I’m ready for our old normal It is undeniable – people are reluctant to hold, handle
back. or offer cash in these times. With that current reality,
many lotteries are promoting and seeking approval to
Health and Wellness First have a cashless system for purchases. What is key here
is that players have the money to back the plastic or
If you haven’t been doing so already, it is important electronic payment that they are using. Lotteries can
to remind players and staff that you care about them and promote debit card use and educate players how to make
18 | NASPL INSIGHTS September/October 2020sure they don’t go over into overdraft. They can also for your staff and retailers. Check out the recent online
promote applications such as PayPal that can pull from a NASPL RG presentations, “Problem Gambling 101” and
bank account that must have sufficient funds to be used. “Responsible Gambling Innovations in an Online World,”
Further, there should be no promotion of credit cards or both part of the Insights Direct webinar series and avail-
buying lottery products on credit. able on the NASPL Matrix. And plan to attend the upcom-
If credit is allowed for online lottery purchases, ing seminar “Gambling and Sports: As Long as There Has
responsible gambling safeguards could include pop-up Been Currency, There Has Been Gambling” on Oct. 28, as
educational messages, time limits, spend and win limits, part of DeskCon, the association’s new virtual conference.
age verification, voluntary self-exclusion, prominent dis-
play of the Helpline number on all web pages, and a limit Now Everyone Knows How to Zoom
of one credit card per player.
Have you ever wanted to bring in a researcher to lend
Money Highs and Lows expertise to your gaming format but couldn’t afford it be-
cause she lives in Australia? Or hoped to have staff attend
With historic job losses, many businesses folding, and a conference on responsible gambling but you didn’t have
the stock market fluctuating, many people are hurting the travel budget? Possibly you wanted to do a respon-
financially. On the other side, many are receiving high- sible gambling audit of all your products and receive
er than typical amounts in the way of federal and state constructive feedback? Everyone has learned how to do
unemployment checks, stimulus checks and found money things differently and via remote/electronic formats. Now
that is not being spent on entertainment, gas and vaca- is the time to access those people you had once thought it
tions. Never has it been more important to remind players would be great to offer an outside RG perspective to your
that no matter what amount of money is coming in, they work. And many of the “talking heads” in the field are also
should set financial goals and stick to a budget. It is easy sitting at home instead of traveling and are dealing with
for people to see an extra $600 in their account and short budgets, so they’ll be happy to receive your call!
assume they should gamble to see if they can make it into
$1,200. It is harder, but more important, to remind people Use Your NASPL RG Committee and Verification Program
through casual conversations, stickers on terminals, and
digital/social media messaging that if they enjoy lottery If you are not sure where to start, reach out to the
play, they should make it a part of their expenses in their Chair of the NASPL Responsible Gambling Committee and
monthly budget. You could even offer a downloadable Director of the Oregon Lottery, Barry Pack. He will help
sample budget on your website. to get you started. And if you have been putting off start-
And, as you are aware, it only takes one ticket to win. ing the NASPL/NCPG Responsible Gambling Verification
Reminding players about this and offering many other Program, there is no better time than the present. As
responsible gambling tips, particularly when the jackpot Mark Twain once said, “The secret to getting ahead is
is high, is an easy way to help players keep their gambling getting started.” Lots of people are here to help!
spending in check.
Remote Training and Connections
There is no time like the present to train your staff
on responsible gambling techniques and problem gam-
“The secret to
bling information. One of the silver linings of most people
working remotely is that they’ve gained time in their
getting ahead is getting
schedules not spent on commuting to work and to various
meetings or meetings before meetings. Take advantage
of that newfound time. Offer, either as a live meeting or
as a downloadable video, a responsible gambling training started.”
program. Use your local affiliate of the National Council
on Problem Gambling (NCPG) to come in and give you a - Mark Twain
realtime snapshot of current resources and gambling and
gaming trends. Use the NASPL Matrix to download videos
September/October 2020 NASPL INSIGHTS | 19PROGRESS REPORT
No one could predict the
tumultuous events of 2020,
but lotteries continue to
expand into sports betting
to meet the demand.
««« By Patricia McQueen
20 | NASPL INSIGHTS September/October 2020L
ast January, the future looked
bright for sports betting in the
U.S., still in relative infancy
after the repeal of the Professional
and Amateur Sports Protection Act
in May 2018. Three lotteries had
launched their sports programs in
2018, and by the end of 2019, two
more had begun operations, with
three gearing up to start this year.
By September, the future still
looked bright, it’s just a future
pushed out a little bit as 2020 now
will be remembered as a year to
forget. For this new American era
of sports betting, the global pan-
demic had a double whammy on the and online/mobile betting, but only Lottery’s operations. Another sports
fledgling operations – a sudden lack two of its five facilities were live with book opened in early September,
of sports on which to bet, and the online/mobile bets during the start Filotimo Casino & Restaurant in
closure of most of the retail outlets of the pandemic last spring when Manchester.
that offer sports bets. That said, the casinos closed. Rhode Island Total New Hampshire sports han-
those lotteries with online sports was able to continue with its online/ dle in 2020, through August, was just
betting operations managed to pick mobile sports betting during the shy of $106 million, with $7.8 million
up sports from around the world to shutdown of its two casinos, and in gross gaming revenue. After a low
keep their players engaged. the Oregon Lottery’s exclusively point in April, it roared back over the
So here’s what’s been happen- online/mobile program continued summer, with $27.5 million in handle
ing. First, the newcomers. New operations. in August alone ($1.3 million in GGR).
Hampshire launched its online/ What were the most popular The myriad of international
mobile service last December 30, and sports during the American major sports presented last spring were
had planned to open its first sports league hiatus? Russian table tennis not big revenue generators by any
book in March. Not surprisingly, that was prominent, as was soccer from means, but they served another
was delayed until August. various parts of the world and the important purpose during that time.
The Montana Lottery launched its hockey-based Scandinavian bandy. “It was very helpful to keep our cus-
facility-based operation as planned MMA fighting was another top sport. tomers active and interested,” said
the week of March 9 – it was only Bettors in some jurisdictions could New Hampshire Lottery Executive
days later that things got shut down. find many more options, such as Director Charlie McIntyre.
The DC Lottery postponed for about Aussie rules football, rugby, darts, He was surprised at the effort
two months the launch of the first handball, snooker and pool. But lot- it took to launch a physical sports
part of its sports betting program, teries held the line at marble racing, book. “These are very complicated,
an online/mobile service, finally pitched as a potential sport by some. and take a lot of time and a lot of en-
going live at the end of May; its first Now for more details about the ergy.” But he noted that DraftKings
licensed arena sports book opened newest lottery-run sports betting has been a great partner to help the
at the end of July. In late September, jurisdictions. Lottery learn the business, which
the Tennessee Education Lottery includes all the necessary controls
approved a first group of sports New Hampshire in place to handle a large amount
betting operators, with a tentative of money, including big bets being
November launch for their online/ New Hampshire’s sports betting placed – differentiating the sports
mobile platforms (the Lottery serves regulations allow for online/mobile operation from a traditional lottery
as regulator only). wagering, up to ten sports book retailer, which is mostly small ticket
Among the earlier adopters, the locations, and retail parlay cards. purchases.
Delaware Lottery’s sports betting is While online/mobile betting opened
currently confined to facility-based for business last December 30, it Montana
play – full sports betting at the wasn’t until mid-August that the
state’s three casinos, which were state’s first sports book, The Brook When Sports Bet Montana de-
closed for a time, and football in Seabrook, finally opened. It was a buted last March, about 130 locations
parlays sold at retail. West Virginia facility that already served as a char- had kiosks up and running that first
has both casino-based sports books itable gaming hall for that arm of the week. Sports wagering licenses
September/October 2020 NASPL INSIGHTS | 21PROGRESS REPORT
can only be granted to facilities District of Columbia temporary setting, handle exceeded $9.1
with liquor licenses for on-premise million, with GGR of $7.7 million. That
alcohol consumption. Then in short The DC Lottery was planning to GGR is taxed at 10%.
order, American sports came to an launch its online/mobile GamBet in The Lottery is working through a
abrupt end, and those shiny new March, the first of its three different number of other license applications,
kiosks were in places that were shut sports betting operations, when including the first Class B private
down in the state’s shelter-in-place word came that major league sports operator licenses for sports bars and
orders. Some six weeks later, a were canceling or postponing their other locations. Its own GamBet retail
phased reopening shone the light on games. So DC took the opportunity operation is now planned for a debut
just how important Montana’s sports to refine the platform and do further next summer; given all the retail disrup-
betting legislation is. testing for what is one of the most tions cased by the pandemic and other
“The law was intended to benefit complicated geo-location challenges factors, it made sense to hold off the
businesses and the state at the same of any gaming operator. The Lottery installation of all-new terminals until
time,” explained Montana Lottery is tasked to not only offer its own next year.
Communications Manager Jennifer product – GamBet online/mobile and
McKee. The locations offering the retail products – but also to regu- More to Come
sports betting kiosks (a number up late two different types of licensed
to about 250 in September) receive private operators, and they all must Another newcomer to the lottery
6% of total sports handle; through adhere to the strict rules regarding sports betting ranks is expected to go
late September, $6.2 million in where mobile bets may be placed. live in November, as the Tennessee
handle had generated $372,000 for For the Lottery’s own online/ Education Lottery has conditionally
the retailers, with about $90,000 for mobile system, bets cannot be approved licenses for Betfair Interactive
the state. “This was exactly how it placed within the boundaries of the US LLC (FanDuel); BetMGM, LLC; Crown C
was meant to work. This was a really federal enclave, nor can they be TN Gaming, LLC (DraftKings); and
challenging situation for business- placed inside a two-block exclusivity Tennessee Action 24/7 (Action 247).
M
es, and they received most of the zone around any of the city’s major Pending final approval, they will be the Y
benefit of Sports Bet Montana at a stadiums that hold sports betting first of what could be many online/ CM
time when they needed everything licenses. And that presents a com- mobile sports betting operators solicit- MY
they could get. It has been very munication challenge similar to ing Tennessee players – there is no limit
satisfying.” what Montana has faced, as players to the number of operator licenses that
CY
Montana’s biggest challenge is complain the app isn’t working when may be awarded. CMY
communicating to players that while they are simply not in an authorized In West Virginia, the state’s two K
there is a mobile app with all the area. A robust customer care center greyhound tracks finally launched
sports information they could ever helps to answer player questions, their first online/mobile sports betting
need, they can only actually place and social media is also used to pro- systems around the first of September,
bets within the confines of the retail vide additional information about the coinciding with the reopening of their
location. Because internet wagering system. “It’s a collective team effort casino sports books. That means that
is illegal in the state, mobile devices between INTRALOT and our com- all five of the state’s casinos are now
must connect directly with the munications staff,” noted Executive up and running with both onsite and
Lottery’s network in each location. Director Beth Bresnahan. online/mobile sports action.
That was a source of a lot of con- GamBet went live on May 28 The Delaware Lottery is moving
fusion, as players thought their app with a few international sports like down the path of adding online/
wasn’t working when they tried to soccer. Through the end of August, mobile sports betting as an option for
place bets outside a sports location. it had generated $3.1 million in players. As a small state with a limited
Perhaps because of the familiarity handle and $457,166 in gross gaming population, such a system in Delaware
of the video gaming machines locat- revenue; more than two-thirds of will always be a challenge, but the
ed at these same types of facilities, that handle was bet in August as pandemic has clearly indicated there is
most sports bets have actually been major league sports were in full opportunity.
placed at the self-service kiosks swing again. Certainly 2020 has been a year
rather than the mobile app. It may The District’s first stadium sports of unprecedented world events, but
be as the social aspect of getting book, a Class A private operator, lotteries continue to forge ahead to
together in a sports bar eventually opened on July 31 – William Hill provide much-needed revenues for the
comes back, more players will be is licensed to run sports betting good causes they support, and for their
using the app as they engage with at Capital One Arena. In its first retail partners that need revenues as
friends in a group. month of operation using kiosks in a never before.
22 | NASPL INSIGHTS September/October 2020September/October 2020 NASPL INSIGHTS | 23
d e n Gol ornia Y e a r s in C a l i f
Legislative relief can go a long way, and
California is a shining example of how
removing certain restrictions can trigger
unprecedented growth in both sales and
revenues to good causes.
By Patricia McQueen
A
pproved by 58% of state voters in 1984, the
California Lottery began operations in October
1985 with a single game – a Scratchers ticket
called California Jackpot. After 35 years, it is
clear that California really did hit the jackpot
with its new lottery. From inception through FY20, ticket
sales were $118.6 billion, $67.4 billion was returned to players
as prizes, nearly $8.0 billion was earned by retailers through
commissions, and most importantly, more than $37.6 billion
was raised for education in the state.
“We are proud of our essential mission that was estab-
lished when the California Lottery began 35 years ago – to
maximize supplemental funds for public education,” said
Lottery Director Alva Johnson. “We thank our dedicated em-
ployees, retailers and vendor partners who all have contribut-
ed to our success.”
The numbers are impressive indeed, but only in the last
decade has the California Lottery really started reaching the
sales potential that comes from having the largest population
base in the country. From FY10 through FY19, annual sales
increased by a factor of 2.4, from slightly more than $3.0
billion to almost $7.4 billion. In FY10, it ranked just seventh in
sales among American lotteries, but by FY19 had shot up the
ranks to be second, behind only New York in sales of tradi-
tional lottery products. That performance improvement far
and away led the nation during that time period.
And it wasn’t just in sales. Lotteries exist to raise money
for good causes, and in California, annual revenues to edu-
cation increased by 72% over those nine years – from $1.09
billion in FY10 to $1.87 billion in FY19. Again, its nine-year an-
nual gain was on the leading edge of lotteries across America
during that time span.For its 35th anniversary, the
California Lottery released a
modern version of the scratch
ticket that started it all.
What triggered these impressive Association’s Responsible Gaming Then there is the development
results? It’s pretty simple, actually. Framework. “Seven other states have and implementation of a 20-year
“We were able to achieve this growth also since been certified, so we’re Facilities Master Plan. “We are
after gaining relief from prize payout honored to be trendsetters in this incredibly proud of this achievement
restrictions with the passage of area,” said Paula Negrete, Deputy and the dedicated effort and work
legislation in 2010 (AB 142, Hayashi),” Director of External Affairs, who over a lengthy period of time,” said
explained Johnson. By allowing the runs the California Lottery’s respon- Johnson. At its inception in 1985,
Lottery to offer higher prize payouts sible gaming program. the Lottery began operating out of a
for some games, both sales and con- That commitment to responsible number of leased and aged facilities
tributions to education increased. gaming means that its exceptional that did not reflect the organization’s
“More prizes attract more sales, growth has been developed in a re- brand. Beginning in 2012, it acquired
therefore increasing the monetary sponsible way with a never-wavering and moved into its own facilities,
amount that goes to schools in the commitment to minimizing problem ensuring business continuity,
state. The legislative change defi- gambling. “Since our recertification operational flexibility and consistent
nitely helped our mission.” in 2018, we continue to incorporate branding. “This plan will ultimate-
While sales and revenues to ed- responsible gaming principles in ly save money for the State of
ucation are key industry measures, several aspects of business opera- California and prioritizes our ability
there are at least two significant tions, including game development, to be environmentally conscious.”
other achievements to point out. advertising and marketing, and For example, the Lottery’s headquar-
California was the first lottery in finding new ways to promote the ters building in Sacramento, seven
the U.S. to obtain the highest Level state’s Problem Gambling Helpline,” district offices and its Southern
4 Certification in the World Lottery Negrete added. Distribution Center are all LEED
26 | NASPL INSIGHTS September/October 2020certified; the Lottery also has eight change were strategically planned
facilities that are zero net energy over a five-year period after the
buildings – meaning they produce prize payout restrictions were elim-
as much energy as they consume. inated,” said Jim Hasegawa, Deputy
Director of Business Planning and
Scratchers Soar Research. First, the $5 category
needed to be more firmly developed
The 2010 legislative change with multiple facings, and then
allowed the Lottery, which was the Lottery’s first $10 game was
generally considered to lag its peers launched in the fall of 2011. After the
because of the payout restrictions $10 category was well established
that didn’t allow it to keep up with and popular, the first $20 game was
industry best practices in the introduced in 2013. Finally, as part
instant game category, to send of the 30th anniversary celebration
Scratchers sales through the roof. in 2015, the first $30 game was in-
In fact, category sales tripled from troduced that fall. This strategy has
FY10 to FY19, as strategic decisions allowed for long-term sales growth.
to expand price points combined Currently, $10 and $20 games
with strong game designs and new account for about half of Scratchers
play styles. sales, while the more profitable $3
“We continually evolve and and $5 games still comprise about
analyze our Scratchers portfolio, one-third.
challenging our past performance, While new price points were
looking at success across the added, robust research and product
industry, and working closely with planning has allowed California to
our vendor partners in order to develop Scratchers for every player
stay relevant and offer a diverse segment. Different games appeal
and exciting game selection for to different types of players, and
our players,” explained Sharon it’s important to have a variety of
Allen, Deputy Director of Sales and product offerings to meet customer
Marketing. needs. Some games that appeal
California typically launches 52 to core players are not well-liked
Scratchers games annually, which by less frequent, casual players.
provide an exciting influx of new However, there are some themes,
product each month. This variety such as Monopoly or the new
keeps consumers engaged and en- Pac-Man tickets, that hold strong
courages more play, while building appeal to both of these types of
a brand expectation to see “what’s players. “We have also built and
new and what’s next” through- cultivated some player segments,
out the year. Research is used such as those who prefer to spend
to determine key game features a little time enjoying the experience
that appeal to specific segments, of extended play games such as
whether it’s increasing the size of $1 Crossword, Bingo and Loteria,” said
tickets to offer more play area for Allen, noting that extended-play
the most loyal players or providing Scratchers now represent more
fresh editions and new price points than 40% of instant sales.
of perennial favorites for extended “California consumers are di-
play players. verse and cutting-edge,” she added.
“With the aim of maximizing “And we continue to focus on these
profits and funds for our public California nuances with greater di-
schools, the higher price point in- versification in our product portfo-
troductions after the 2010 statutory lio.” Utilizing market research, data
September/October 2020 NASPL INSIGHTS | 27You can also read
