By Frank Cecchini, Head of Lottery, Evoplay
The younger generation (Millennials and Gen Z), a significant consumer force comprising over four billion people in today’s digital landscape, is drawn to more vibrant online entertainment. Lotteries, traditionally sellers of dreams and big wins, are finding it harder and harder to compete in this evolving entertainment world. Despite the recent online transformation, which has made more lottery games available online, they still fall short in attracting Gen Z players who are used to far more dynamic online gaming, social media, and the more collaborative iGaming landscape.
Facing the twin challenges of increasing direct competition as more and more jurisdictions open and regulate their online gambling markets, and generally declining demand, lotteries must find ways to appeal to the next generation of players and stay relevant in the ever-changing online entertainment market.
Let’s embark on a journey to uncover the solution.
Challenges Faced by Lotteries and New Providers Who Step into the Market
The global online lottery market is expected to grow to $22.87 billion and have 42.8 million users by 2028. Even while this growth looks promising, it is still proving difficult to attract and keep digital-native players for both lotteries and their competitors. Tech-savvy iGamers, who represent the future of online entertainment, show limited interest in lottery products due to their perception of them as slow-paced and boring. Even the more dynamic slots presented by online casinos eventually prove monotonous, while sports betting is far more ‘in the moment’ and social—especially when one considers live betting while watching the game with friends.
While the pandemic accelerated the shift of lotteries to online platforms, this transition has not significantly changed the landscape. Thus, the need to monitor emerging trends and develop products to capture the younger audience’s interest remains. Companies with innovative ideas can potentially reverse this trend, but they must be prepared to compete in an oligopolistic lottery market, exploited by a small number of dominant players with a distinct lack of innovation.
How to Attract Millennials and Gen Z to Online Lotteries
Understanding potential players’ profiles and habits to develop appealing online games is crucial. There’s no point in offering Gen Z a scratch 9 match 3 instant when they would rather be playing Fortnite. This is why Evoplay invested heavily in developing its flagship titles, such as Adrenaline Rush and Star Guardians, and instant games like Ethan Grand: Mayan Diaries. Here, Evoplay is deploying 3D, high-quality graphics that require a level of player involvement never seen before in online gambling.
However, merely having products that resonate with such preferences in the game portfolio is not enough; effectively showcasing their appeal is essential.
With extensive experience in the lottery industry, I see Evoplay’s cutting-edge games as ideal for this task. The company’s flagship products, like Star Guardians and Adrenaline Rush, have no equivalents on the market and were created to offer a fresh iGaming experience that will attract players even more. Additionally, sports-themed instant games like Penalty Shoot-out: Street, Hockey Shootout, or B-Ball Blitz resonate well with the younger demographics.
Innovations in Online Lotteries: Game-Changing Strategies
Lottery games haven’t changed in decades. Variations in the number of selections, the size of the field of numbers to select from, having a second tier of selections, etc. work to drive up the size of jackpots and, therefore, the attractiveness of the games but also serve to decrease the chances of winning. These games attract jackpot hunters and dreamers who fantasize about what they would do with the millions should they win a jackpot.
Change the symbols, add winlines, add bonus games, etc.—the casino business has indeed been more creative. To be fair, they have more scope to do so. Even so, these games eventually become monotonous as well.
Therefore, both casino operators and lotteries are struggling to attract and retain younger players in the face of competition from more dynamic entertainment destinations like video gaming or eSports.
So, what to do?
To capture the attention of next-gen players, providers must continually adapt their offerings. It’s not just about creating innovations but applying them where they matter most. The key is to find a unique, effective formula rather than reinventing the wheel.
Implementing omnichannel strategies is crucial. In developing new games, we at Evoplay try to conceptualize different iterations of the same game with different play mechanics for both retail and online. This involves tailoring lottery experiences to align with evolving consumer behaviors. Currently, it’s essential to enhance the user experience with appealing visuals, user-friendly interfaces, personalized approaches, and engaging concepts that span the retail and online channels. For example, Adrenaline Rush, our most recent flagship release, has an immersive gaming version and instant, as well as the graphics for a real-world scratch card, should a lottery decide to cover all its channels.
Another strategy involves leveraging modern marketing tools to boost the visibility of the company’s offerings. Take, for instance, how Evoplay’s innovative approach stands out. By seamlessly adapting their cutting-edge games and creating unique marketing campaigns, step by step they engage a modern audience. I believe blending their creativity with a personalized approach will transform online lotteries into more attractive offerings.
Many casino operators have added lottery-style games to their portfolios. These can be instant win games that play like a scratch card but with much higher payouts, or they can be lotto-style games such as a fast draw keno or lotto that is drawn every few minutes—neither pari-mutuel, both with high payouts. They are taking advantage of the lotto brand to attract new players.
In summary, lotteries need to be more creative, perhaps taking some cues from the competition tempered with effective, safer gaming controls, as well as re-working old themes to suit the younger generations. While it’s good to be cautious, it’s equally important to introduce bold, innovative offerings to ignite interest and drive market evolution.