Stronger than before
HOW THE LOTTERY INDUSTRY IS BOUNCING BACK FROM COVID-19 COVID-19 HAS CAUSED COUNTLESS ISSUES for several
industries since the majority of the world was plunged into lockdown in March 2020. But how have lotteries bounced back? BY CHARLIE HORNER
T
o this day, the effects of the pandemic can still be felt as both small and big businesses battle almost a year of lost revenue struggling to meet fixed costs. But throughout 2021, many US lotteries are posting record financial results against a backdrop of adverse trading conditions. As Q2 results from lotteries were published, it was becoming clear that the impact of the pandemic was fading away, though many CEOs warned of further disruption to follow in a statement of cautious optimism. Sports betting and iGaming are, undoubtedly, witnessing a meteoric boom in the US marketplace. Nonetheless, it cannot be forgotten that the lottery industry is experiencing a considerable period of growth in a time where many industries globally are struggling to fight back against the pitfall of the pandemic. What techniques has the industry deployed to stem this growth at a time when costs must be managed carefully? Do consumer habits in relation to leisure activities during a time of boredom have an impact on the bottom line of US lotteries balance sheets?
AS Q2 RESULTS FROM LOTTERIES WERE PUBLISHED, IT WAS BECOMING CLEAR THAT THE IMPACT OF THE PANDEMIC WAS FADING AWAY
94 SBC LEADERS • DECEMBER 2021
Lotteries exist to provide funds to local communities for education, infrastructure and other good causes. In a time when communities have struggled the most since the Second World War, it is essential to examine how lotteries have managed to produce historic levels of growth to support those in need.
Digital growth and participation Modernisation is a key factor in driving the growth of lotteries both during and post the pandemic, given the emphasis on limiting social contact. The need of the industry to move away from paper-based tickets to digital tickets as well as provide
players with digital games on mobile devices has amplified since March 2020, though with the rise of iGaming, it was becoming a necessity regardless of the pandemic. Jackpocket, the online app which allows lottery players from 10 US states to buy lottery tickets, published its ‘state of digital lottery play’ report for Q3 of FY2021 recently. It revealed an increase of 21% in players choosing to play the lottery via digital channels across the 10 US states where it is operational. CEO Peter Sullivan said that it was a sign of things to come as the industry continues to modernise: “As we experience high jackpot moments moving forward, I believe that we can use Q3 2021 as an indicator of what’s to come, with digital lottery growing over 21% since last quarter alone. “Every day, consumers are opting for mobile solutions where they might not have existed previously, like the lottery.” With mobile apps becoming ubiquitous in the gaming industry, it is only befitting that lotteries follow suit. Increasingly, lotteries are successfully implementing ilottery games for users to play on mobile apps and more companies are entering the marketplace to supply the games. NeoPollard Interactive (NPi) has emerged as one of the key players in the ilottery sector and has contributed to the enormous growth of its clients in the past year. The gaming supplier congratulated its partners at the New Hampshire Lottery following its record-breaking growth, catalysed by ilottery sales. Since launching its online lottery offering during FY2019, the Granite State’s lottery has seen its GGR increase by 332%, with NPi praising its trailblazing efforts in ‘establishing the viability of modernising lottery offerings through the ilottery channel’.
