Yanis Varoufakis to Discuss the Future of Lotteries at Lotnext Summit
What is the future of lotteries? What will the industry look like in 2025? How will the ongoing digital transformation affect the competitive lottery environment?
These and other questions will be addressed at the Lotnext Summit, taking place on November 29, 2016 in beautiful Barcelona.
Lotnext Summit is aimed at an exclusive audience: it is where decision makers gather behind closed doors to discuss – and perhaps shape – the future of lotteries.
The event’s keynote speech will be delivered by Mr Yanis Varoufakis, economist, game theorist, and former finance minister of Greece.
Attendance at the event is by invitation only. No press will be allowed.
Do you and your company need to be part of this conversation? Request your personal invite here.
Dutch Lottery Reform Getting Closer
This Thursday, the Dutch Lower House will finally debate and (hopefully) vote on the country’s long-awaited remote gaming bill.
Originally, the Dutch government proposed to regulate online gaming as a necessary precondition to reforming the country’s lottery regime. Now that the remote gaming bill is finally getting a parliamentary vote, legislative lottery reform is getting closer, too.
And not too soon, either. As we reported earlier, a Dutch court already forced the national Gaming Authority to remove its cap on the number of available charity lottery licenses – and thus to reconsider the license application of new market entrant Lottovate.
Since all current lottery licenses expire at the end of 2016, a new, transparent licensing process will have to be in place before then.
Commenting on the Gaming Authority’s decision to not appeal the court’s verdict, Peter-Paul de Goeij, Managing Director of Lottovate Nederland, said: “Hopefully, our license application will now be approved. If we do win a license, we expect to be treated in an identical manner as other incumbent operators when the new lottery regime comes into force at the beginning of 2017.”
How Big Should Lottery Jackpots Be?
Contrary to their North-American counterparts, European lottery block operators, such as EuroJackpot and EuroMillions, prefer capped jackpot sizes, citing the need to preserve long-term revenue and player interest.
The sensitivity of players to big jackpots is “indisputable,” Jean-Luc Moner-Banet, WLA President and CEO of Loterie Romande, said.
However, according to Andrew Pilkington, General Secretary, Services aux Loteries en Europe, there is a big drawback to uncapped jackpot sizes:
“The problem with offering a game in which jackpots can keep rolling is that you reset player’s expectations and multimillion dollar jackpots are no longer exciting, so jackpot fatigue sets in. Although win-ability and jackpot size are effective drivers to play and help to increase sales, they both come at a cost to your lottery’s future as the net revenue itself is eroded.”
Moner-Banet essentially agrees:
“I indeed think that, by allowing a slow and controlled growth of the jackpots of games such as EuroMillions and EuroJackpot, we preserve – in the long term – our revenues; even if, in the short term, we could give in to the temptation of an acceleration of the jackpot amounts. I think that the sustainability of our games implies a progression towards more regular amounts of €200 to €300 million, but do not wish to go beyond.”
Moody’s: US State Lottery Revenue Stagnating
According to Moody’s Investors Service, US state revenue derived from lotteries has stagnated or fallen over the last ten years. The credit rating agency cited several factors, including changes in consumer discretionary income and continued competition from other forms of gambling, as causes of the lack of revenue growth.
“Declining lottery revenues can increase budget challenges for the most reliant states because they will need to reallocate other revenues or reduce spending,” said Moody’s associate analyst Aaron Ampaw.
According to Moody’s, lotteries will only see large growth in revenue if operators increase the prizes, or if states introduce new games such as video lottery terminals.
Sweden notfied the European Commission of proposed legislative changes that would ensure that only state-owned operators, or those which the state has a legal controlling influence over, may be licensed to organize lotteries.
Camelot Global rolls out its new Irish National Lottery app.
Massachusetts is moving closer to allowing online lottery products.
Scientific Games signs long-term deals with Georgia and North Carolina lotteries.
Canada’s Loto-Quebec’s online gaming revenue improved more than one-third in its most recent fiscal year.