NOVOMATIC Lottery Solutions (NLS) presented “Bringing Love Back to Local Draw Games.”
“We are part of NOVAMATIC Gaming—one of the largest gaming companies in the world with $4.5 billion in sales,” said Pall Pallson, Senior Director of Corporate Innovation & Strategy, NLS. “From our analysis, there are 27 jurisdictions that we think could improve draw sales.”
There is a real opportunity for U.S. lotteries to increase sales and strengthen their local brand. “As a European, I see the U.S. as the ‘Land of Instants’ with 58% of sales coming from that category. Draw games represent about 24%,” said Marc Chabrand, Director, Marketing & Distribution Services at NLS. “Consider the evolution of the instant market, which has doubled in the last decade. Price points are a main driver of that growth. Draw games have better margins than instant games.”
Using clips from Wonder Years, a popular 1980s TV show, they showed how attraction works. “Draw games are like the girl next door: familiar but worth another look,” said Pallson. “What we see is that the smaller states have a larger portion of sales from multi-state games. That makes smaller states more susceptible to fluctuations inherent in large jackpot games.”
One thing a marketer can do is tap into the creativity of local lotteries. “Take advantage of the knowledge of your retailer. And take some chances. You do not have to keep a game in the market for 10 years. Proximity is very important for the field marketing strategy,” said Chabrand.
He cited Lotería de Catalunya’s La Grossa as a great example of a local game that competes successfully with Spain’s large national games. La Grossa taps into the local pride players feel in playing a game just for their region.
