Illinois - Taking US Lottery Online


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Hear the background behind America's pioneering Internet Lottery program from the man responsible for its implementation, Michael Jones the Superintendent for Illinois Lottery.

Michael will be joining us to speak about how Illinois Lottery has become the first lottery to go online in the US, and the processes that have resulted in the Internet Pilot Program. It has been some seven years in the making and since becoming Lottery Superintendant in October 2011, Michael Jones has moved aggressively to set-up the first system in the US to sell lottery tickets over the Internet.

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  • Illinois - Taking US Lottery Online

    1. 1. Lotteries, Gaming and iGamingCorrect Public Policy - Good Business Practice
    2. 2. “The Lottery is a wonderful thing. It lays the tax, only on the willing.” ~Thomas JeffersonThomas Jefferson was the writer of the Declaration of Independence, an AmericanAmbassador to France, and the President of the United States (1801 – 1809).
    3. 3. $17B Founded in 1974, the Illinois Lottery has contributed over$17 billion to the state Common School Fund to assist K-12 public schools, as well as the Capital Projects Fund.
    4. 4. Déjà vu All Over Again • Lottery brand is irrelevant. • Lottery products invisible. • Lottery proceeds unknown. • Lottery creative targeted for current players only. • Lottery is “not cool.”
    5. 5. It’s themarketing, stupid! Michael Jones Superintendent, Illinois Lottery
    6. 6. Onlyof Illinoisans have a positive opinion of the lottery
    7. 7. Only think the Lottery is for people like them
    8. 8. We’re experiencing a transformation
    9. 9. 9
    10. 10. New creative has transformed the brand
    11. 11. New creative has transformed the brand
    12. 12. Déjà Vu Meets The Internet
    13. 13. Lotteries and GamingA well run lottery is one in which a lot of people play a little,not a finite group playing a lot.• Lotteries are the most popular form of gambling in the world.• In the US, lotteries enjoy over 80% approval.• Gaming is not nearly as popular as lotteries.• Gaming concentrates on maximizing expenditure by participant.• In classical gaming, odds and winning experiences are key drivers of participation. Q: FORMS OF GAMBLING PARTICIPATED IN THE LAST 12 MONTHS, 2011 (AGA 2012 State of the States)
    14. 14. Gambling Participation• 58.1% had participated in at least one form of gambling in the previous four weeks • 57.3% in 2011; 55.5% in 2010; 55.2% in 2009• The most popular gambling activity: • 48.0% National Lottery tickets • 13% National Lottery scratchcards • 10.6% Other good cause lotteries• Betting on horse races, gambling on fruit or slot machines, and private betting with family, friends or colleagues were the next most popular activities (4.3%, 3.4%, and 3.3% respectively)• More likely to be male, and over 45
    15. 15. Understanding the Internet Lottery Test The Illinois Lottery Law (20 ILCS 1605) authorizes the lottery to create a pilot program that allows players 18 years or older to purchase on the Internet. • Existing lottery games: • Mega Millions • Lotto • Finite length: 36-48 months. • Protections against play by minors. • Exclusive to Illinois.
    16. 16. Internet Lottery / iGaming• The lottery is a monopoly.• Specific to existing large jackpot lottery games.• Infrequent draws.• Fixed ticket prices.• The grand prize is dynamic.• Very few prizes.• No action.• Mandatory considerations: geo-location, age control and ticket buying limits.• Potential audience: 80% of all Illinois Adults (18+) 7.4M
    17. 17. Who would the Internet Lottery Test appeal to? “My dad has always played the Lottery at the grocery store, but the new site speaks my language, so I logged on to play online.” ~ John Paul, 30 (first nonsubscriber to make an online purchase)
    18. 18. Feelings About Internet Option • About four in ten Joes and Jacks say they feel positive (very or somewhat) about the State of Illinois making it possible to play lottery games on the Internet while three in ten feel negative. • Three in five Non Players feel negative (somewhat or very). Total Joes Jacks Non PlayerPositive (Net): 35% 39% 41% 12%Very Positive 16% 26% 15% 7%Somewhat Positive 19% 14% 26% 5%Makes No Difference 29% 27% 30% 28%Negative (Net): 37% 34% 29% 60%Somewhat Negative 15% 15% 15% 16%Very Negative 21% 19% 14% 44%Q: Overall, how do you feel about the State of Illinois making it possible to play lottery games on the Internet?
    19. 19. Internet Purchase Intent*• Joes are more likely than Jacks or Non Players to be motivated to purchase (definitely or probably) Powerball (47% versus 43%) or Mega Millions (28% versus 19%) tickets when or if they could play on the Internet.• Jacks are more likely than Joes to only use the Internet to purchase Powerball or Mega Millions tickets. Total Joes Jacks Non Player PB MM PB MM PB MM PB MM Top-Two Box 30% 23% 47% 43% 28% 19% 9% 5% Definitely 11% 9% 24% 26% 10% 4% 0% 0% Probably 18% 14% 23% 17% 19% 15% 9% 5% Maybe 29% 36% 23% 29% 35% 44% 14% 17% Probably Not 17% 19% 14% 13% 20% 21% 9% 19% Definitely Not 25% 22% 17% 15% 17% 16% 68% 59% How would you buy these tickets? Only on Internet 39% 32% 32% 24% 42% 35% Base too small to Both Internet & Retailers 61% 68% 68% 76% 58% 65% report Retailers only 0% 0% 0% 0% 0% 0% Q: If you could play Powerball on the Internet as well as at retailers, how likely would you be to buy Powerball tickets on the Internet? Q: Looking ahead how likely are you to buy Mega Millions tickets on the Internet? *Online respondents reported
    20. 20. Internet Play is Likely to Attract a Million New MM/PBPlayers with 600,000 Being New Lottery Players 600,000 players new to730,000 more weekly lottery and MM/PB plusMM/PB players 450,000 lottery players new to MM/PB
    21. 21. The Internet Provides Access to Young AdultsWho Previously Have Not Been Active in the Lottery• Selling Mega Millions over the Internet is likely to substantially expand the player base and attract a sizeable number of adults who currently do not play the lottery. Those who would buy Mega Millions over the Internet are twice as likely to be under the age of 35 (34%) than those who currently play Mega Millions (18%). We hypothesize that they are also more likely to be white with higher incomes (data not available). Currently Play Would Play on Internet 34% 32% 26% 25% 24% 24% 18% 18% 18-34 yrs 35-44 yrs 45-54 yrs 55 + Source: Online Survey Feb 2006 N = 1561, Standard Error +/- 3%
    22. 22. Lessons Learned To-Date• There are pros and cons to starting the internet lottery test with the largest Mega Millions grand prize in the history of the planet Earth. • 1433 B.C. Saturn Powerball prize of 6.2 Billion in Solar Credits only larger prize discovered by the Hubble Telescope.• Interface must be easy, open, and intuitive and mirror existing e-commerce sites like American Airlines, Apple and iTunes.• Platform must reflect products sold.• Media only interested in poker expansion.
    23. 23. The Internet Lottery Test,Powerball, the DOJ letter, Geo-control, Age-control, iGaming,Poker (!!??), Other Games… OH MY!