Public Gaming International May/June 2020

32 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2020 May Scheve Reardon, Executive Director, Missouri Lottery Consumer “con dence” will be slow to recover from the COVID-19 pandemic. Even when states attempt to reopen and relax social distancing, many consumers will lack the “con dence” to resume their previous patterns of travel, recreation and purchase. Complicating this timeline is the threat of a reoccurrence later this fall as the weather changes and with the possibility of additional cycles in the future. Until there is a signi cant drop in positive cases and deaths, successful treatments, a vaccine and su cient time has passed, many consumers will still limit trips to retail and use other distribution channels such as the internet, BOPIS (buy online and pick up in store) and courier for many items. Many in public health have said for years that it is not “if,” but “when” a pandemic is going to happen. We have just experienced the severity of such an event and many have called for a more national approach to more successfully manage these kinds of crisis vs. leaving it up to individual states that all respond di erently. at is not an easy task given our country’s comfort and history with “states rights” in handling things like emergency responses. During the COVID-19 Crisis, NASPL gathered insights frommany Lotteries on how they were responding to the crisis including: how are you handling retailer billing, new ticket launches and ticket returns; how are you paying prizes over $600; are your o ces open; have your drawing procedures changed; how are you social distancing and protecting your sales force in the eld? Many states managed things di erently, and maybe that will never change. One thing is certain, what one of us does in the Lottery industry impacts all of us from an integrity standpoint. is could be an opportunity for NASPL and member lotteries to look back at what worked and what didn’t, and develop a national response (best practices) for future events like COVID-19. COVID-19 forced NASPL to cancel its professional development seminar scheduled for July in Denver and the World Lottery Summit 2020 in Vancouver, BC, in October. Lottery industry conferences are essential to sharing best practices and continuing education credits for Lottery employees in certain disciplines. is pandemic event has forced many schools and organizations to conduct classes and training using video streaming. is might be a good opportunity for NASPL to consider the possibility of organizing and streaming educational opportunities as teleconferences in the future. e COVID-19 Pandemic has created havoc on state budgets. Lotteries are key contributors to those budgets. Lotteries are a natural for seamless omni-channel distribution. More states will consider adding the digital channel to preserve and grow pro ts for their good causes. During the COVID-19 crisis, many other brands stepped up e orts to distribute their products using BOPIS (buy at home and pick up in store) and home delivery. Look for Lotteries to follow this lead, as it will be part of the new normal. Lotteries have traditionally weathered economic recessions because our games provide a ordable entertainment and hope during tough times, and that has not changed. But COVID-19 is di erent in that it seriously impacted the entire world and everyone in it. Most lotteries depend on their retail partners to sell their products. When large sections of their retail network such as bars, restaurants and self-service are closed by government order, it reduces access to lottery products. Lotteries who have a large number of grocery and c-store partners faired better, as those retailers were deemed “essential” and could continue to sell Lottery. Lotteries and other brands that o er consumers products through the digital channel faired even better during this event. e two most pro table U.S. jackpot games (Powerball and Mega Millions) usually dictate what kind of year a Lottery will have, as other games bene t from large jackpot runs. During this COVID-19 crisis, player participation dwindled to a point that both games were forced to make game changes in the middle of jackpot runs. e impact those changes will have on the games’ future is unknown for now. Both multi-state groups will need to collaborate on strategies to stabilize and jump start those game once things begin to open up. Some consumers, especially those in more rural areas that were not as severely impacted by the virus, will attempt to return to normal but there will be a large portion of the population - especially in more densely populated areas - that will continue to live the new normal - practicing social distancing and limiting trips to retail and other public areas. Players still want to play, but their behavior will be modi ed as we recover from this crisis. Lotteries must adapt and help meet the new normal. e digital channel is an obvious solution for states that can make that happen, but there are other strategies Lotteries can implement to help players feel more comfortable with our existing products. Lottery mobile apps permit players to check their tickets and produce play slips that can be scanned at retail to avoid social contact. We can encourage draw games players to use advance play. We can encourage more retailers to accept debit and credit cards for lottery purchases, as cards are perceived to be more easily disinfected than cash. Relationships have always been a driving force with Lottery retailers. Many lotteries have taken steps during this crisis to protect retailers’ pro ts including suspending billing and communication fees, o ering more liberal billing terms for Scratchers ticket returns. Most lotteries depend entirely on their retail partners for product sales. Lotteries that make relationship selling a priority fare better during uncertain times like COVID-19. Many or those “essential” retail employees made sacri ces during COVID-19 to keep important products and services available to their customers. We all owe these employees much respect and gratitude and should make special attempts to recognize their sacri ce. e Iowa Lottery created a television spot recognizing retail clerks and emergency workers for their hard work and sacri ce during COVID-19. Continued at publicgaming.com VISION OF THE POST-CORONAVIRUS WORLD