In Gorilla Bonuses, we will now discuss the new forms of technology available for the lottery sector and how they can assist companies in innovating their offerings and creating a future-proof business model in order to adapt to new market behavior. We investigate how technology can assist lottery operators in spending less while increasing revenue while also driving more value to good causes. Continue reading to find out how your lottery business can thrive in an uncertain future.
First and Foremost – Mobile Experience
Mobile penetration and stable internet access are at an all-time high, even in emerging markets, with nearly 80 percent of the world’s adult population carrying a smartphone at all times. While other industries have long adapted to this shift, the lottery industry has been somewhat stagnant in its products’ digital and mobile transformation.
Operators in all markets, particularly emerging markets such as Africa and Latin America, where people are more likely to own a mobile phone than a computer or tablet, should view a mobile-first strategy as a requirement, not an option. People rely on their mobile devices for various purchases, and the restrictions imposed by COVID-19 make this more important than ever. It stands to reason that players want to access their mobile devices’ favorite games, scratch cards, and lottery draws.
Bringing Retail and Online Together
Retail is not dead, but many in the global lottery industry believe that lottery player preferences will shift from retail to online. During the “Lotteries in Covid-19 Lockdown” webinar, an interesting audience poll was conducted to determine what changes the lottery industry predicts for post-Covid lottery player behavior.
Many European lottery executives and industry experts believe that some players will return to their traditional retail/online preferences while others will prefer to stay online, making retail lotteries less relevant. Lotteries must adopt a hybrid approach that combines retail and online as a new generation of lottery players emerges. Business models must evolve in order to provide players with what they want, whenever and wherever they want it.
Online ticket purchasing is expected to play a significant role in the global lottery industry in the coming years. Indeed, Massachusetts Lottery Executive Director Michael Sweeney told the Lottery Commission that the online lottery market is the next big thing and that it is no longer the distant “future” of lotteries but a present reality that companies must adapt to in order to reach their players in the long run.
He emphasized that without an online component to lottery ticket sales, retail land-based lotteries like the Massachusetts Lottery face a “significant risk of becoming somewhat obsolete.”
The time for change has arrived. Using large, clunky lottery terminals that take up valuable retail counter space is no longer necessary. Instead, there are a variety of modern lottery solutions that can be used to sell retail tickets for multiple lotteries. Using retail POS application software that can be installed into existing retail POS systems eliminates the need for traditional retail lottery hardware.
Lotteries can also be used for customer retention and other profit-boosting incentives. Consider going to your local grocery store, getting to the checkout, and discovering an offer for a free lottery ticket with purchases of $100 or more. Many customers will try to reach the $100 purchase threshold, increasing shop profits, lottery sales, and exposure.
The retailer will buy these lottery tickets because the cost is meager compared to the potential overall retail earnings or giving away store credits.
Making Use of Online Retailers
Lotteries sell lottery tickets through physical retailers, and the same model can and should be applied to online retailers in the digital space. Lottery widgets and iframes can be embedded into the pages of numerous online marketplaces, media and news websites, and other popular websites.
It does not require integration and enables players to buy official lottery tickets without leaving the website, earning online retailers a commission in the process. Adopting this system would provide lottery operators with increased exposure and free advertising for their games and would also expose their entire product offering to a global audience.
The Influence of Online Influencers
Social media influencers can be a precious asset to have. Similarly to how some influencers promote clothing brands and hotels, they could create exclusive content and promote online lottery games to their global network of followers.
Influencers wield enormous power over their audiences’ purchasing decisions due to their authority in the field and their relationship with their audience. In exchange for a commission, their unique content can be used to promote lottery games and draws to encourage new users to purchase a ticket.
The Significance of Participation
Let’s face it: lotteries are boring. People play in order to win the massive jackpots on offer. They fantasize about buying a new car, boat, or house or about having enough money to live their dreams.
Younger player demographics want more than just the prize; they want to be engaged, and they want to feel as if they earned the prize through a challenge or journey. Traditional lotteries must therefore consider new forms of games that can engage younger players for longer periods.
One approach could be to develop e-sports-inspired games with pooled jackpots. These would be 30-60 minute short engaging games aimed at the commuter market looking to kill time at home or on their daily work commute. These games would take players on a journey where they would collect points along the way, with each point bringing them closer to the chance to win lottery-style cash prizes.
Increased Frequency of Draws
The majority of national lotteries hold draws once or twice per week. Players purchase a ticket and then wait a few days for the draw to occur. Understandably, high-value games with multi-million jackpots don’t happen every day. Still, thanks to new jackpot insurance models and prize pooling, operators can create high-value jackpot games as often as they want, even every hour!
When it comes to gambling, most people, especially younger demographics, want instant gratification; they are not patient enough to wait a week for a draw to see if they have won or not. Increasing the frequency of draws keeps players engaged and gives them a reason to buy tickets more frequently.
Lottery Games with Brand Names
The slot industry has done an excellent job of developing games in collaboration with major brands, films, and events. Lotteries have a huge opportunity to follow suit and collaborate with globally recognized brands to create branded lotteries. The games would quickly amass the brand’s existing fan base and followers, with the brand’s reputation reflecting on the actual game produced.
These could be used as CSR lottery initiatives for brands to support and endorse good causes or as PR stunts giving lucky fans the chance to win life-changing jackpots or unique prizes such as tickets to a film premiere or a test drive in the latest model of a supercar.
Globally, player ticket purchases can be made through placement on product merchandise and promotional materials or through the use of widgets and iframes embedded directly on the brand’s website, which directs players to the games.
Technology will play a significant role in shaping our future. The potential is enormous, and lottery companies stand to benefit greatly. Lottery companies should fully align their strategies, organizations, processes, and infrastructures to the needs of their customers, as well as the challenges that digitalization presents in the gaming market.