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Operators rally for US national and state lotteries to go digital

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From Oregan to Maryland, state lottery operators are rallying their respective officials to allow online ticket sales as a new normal of decreased retail footfall descends on towns and cities across the US. After helping many national lotteries around the world go digital over the past few months, Ade Repcenko, CEO of Spinola Gaming, believes that an upgrade to online sales is indeed the only way forward for the US lottery sector.

Lottery operators across the US are calling for their state officials to digitise the sale of tickets in the wake of the Covid-19 pandemic.

Over the last few months, only a handful of states were able to legally offer digital lottery ticket sales during their respective lockdowns: Georgia, Illinois, Kentucky, Michigan, New Hampshire, Rhode Island, North Carolina, Pennsylvania, North Dakota and Virginia. Many of these states revealed that they experienced a surge in online ticket sales, with New Hampshire registering a 38 percent jump in first-time online players during this period. All other states require players to purchase a lottery ticket in person from a retail outlet, and all saw sales and revenues tumble drastically during the pandemic.

Despite a determination to go digital now being shared by a majority of key lottery figures in the US, state operators still require regulatory changes to take place before they can make the shift. Unless these regulatory changes happen fast, the US market will lag behind the rest of the world, as LATAM, Africa, Asia and Australia all already possess the legal ability to sell online. The online commercialisation of US government and state lotteries is long overdue, and Covid-19 has given those in favour of digitization real tangible data to support their long-standing arguments. State lottery operators’ interest in going digital is now stronger than ever, as the pandemic clearly highlighted the severe limitations of the retail lottery business model.

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Barry Pack, director of the Oregon State Lottery, stated that retailers in Oregon lost 70 percent of their customers due to the lockdown. “The recovery from this pandemic is going to force a digital transformation in our industry a whole lot more quickly than we might normally have seen it come,” he said. “When the legislature reconvenes next week, they’re facing a billion-dollar shortfall. Their opinions about mobile gaming will change. I think there will be less resistance.”

Gordon Medenica, director of the Maryland Lottery shares Pack’s views: “We’ve been pushing a digital transformation and online selling ever since I’ve been in this industry, over the past 10 to 15 years,” he said. “In Maryland, they passed a law three years ago banning sales on the internet. I think we’ll see a dramatic change and I’m looking forward to it.”

And in a Lottery Commission meeting, Massachusetts Lottery Executive Director Michael Sweeney said their lottery faced “a significant threat of becoming somewhat obsolete”.

The extreme drop in lottery sales due to the pandemic and shelter-in-place orders was also a key pain point for most participants of the SBC Digital Summit’s lottery discussion titled, “State of Play – US Lotteries During the Coronavirus.” Many state lottery veterans shared the opinion that the pandemic should be a wake-up call for lottery officials and state legislatures, with one participant stating that the pandemic exposed state lottery’s inadequate retail business model and that it might not be sufficient for the new normal. Speaking recently Ade Repecnko, CEO of Spinola Gaming, agreed with that assessment. His company has helped many national lotteries around the world go digital over the past few months, giving them a steady stream of income to sustain their operations during the pandemic.

“Retail operators need to take a look at the post-Covid19 world and its impact on player needs and expectations, and think about what it means for the future of lotteries.” said Ade Repcenko, CEO of Spinola Gaming. “Digital is the way forward and is set to play a huge part in our industry over the coming years. Solutions like the ones offered by Spinola Gaming provide land-based operators with a holistic solution that helps operators make the move to digital, while still maintaining their traditional retail operations through one seamless interface. The software allows operators to monitor all lottery ticket sales and track all online and offline purchases in real-time, complete with a myriad of marketing functions and analytics available at the touch of a button. The system is available across all markets, currencies and languages and is fully customisable.”

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British Columbia Lottery Corporation

SCCG Management Signs Contract with British Columbia Lottery Corporation

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SCCG Management has signed a contract with the British Columbia Lottery Corporation (BCLC), the B.C. Crown corporation which conducts and manages commercial gambling in the province, including lotteries, casinos, and online gaming. This partnership aims to undertake a comprehensive assessment and strategic enhancement of BCLC’s diverse operations.

The work between SCCG and BCLC will involve a thorough review of technological infrastructures, strategic market positioning, and the integration of various gaming modalities. SCCG’s extensive expertise will be pivotal in harmonizing BCLC’s online and physical gaming experiences.

Stephen Crystal, Founder and CEO of SCCG Management, said: “Our collaboration with BCLC represents a remarkable opportunity to push the boundaries of innovation within the gaming industry. We are committed to deploying our resources and expertise to enhance BCLC’s operational efficiencies and customer engagement strategies. It’s an honor to partner with an organization that has a robust impact on the community through its support of public initiatives.”

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AGCO

AGCO Requires Ontario Gaming Operators to Stop Offering WBA Bets Due to Integrity Concerns

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The Alcohol and Gaming Commission of Ontario (AGCO) has mandated all Ontario-registered sportsbook operators to halt offering and accepting wagers on World Boxing Association (WBA) events immediately. This measure is being taken to protect the Ontario betting public following concerns that WBA-sanctioned boxing matches are not adequately being safeguarded against match-fixing and insider betting.

Since December 2023, the AGCO has been conducting a comprehensive review of suspicious wagering activity on a WBA-sanctioned title fight between Yoenis Tellez and Livan Navarro that was held in Orlando, Florida. Suspicious betting patterns on the bout lasting over 5.5 rounds were reported to the AGCO by two registered independent integrity monitors and detected in Ontario by a registered igaming operator. Media reports also alleged that Tellez’s Manager placed $110,000 on the match lasting longer than 5.5 rounds at a Florida casino. The bout ended with Tellez knocking out Navarro in the 10th round.

Following an intensive review that included outreach to the WBA, Ontario-registered gaming operators, independent integrity monitors, and regulators in other jurisdictions, the AGCO has concluded that bets related to WBA events do not currently meet the Registrar’s Standards for Internet Gaming.

The AGCO requires all Ontario-registered gaming operators to ensure the sport betting products they offer are on events that are effectively supervised by a sport governing body. At a minimum, the sport governing body must have and enforce codes of conduct that prohibit betting by insiders.

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Registered gaming operators were unable to demonstrate to the AGCO that the WBA prohibits betting from insiders, which could include an athlete’s coaches, managers, handlers, athletic trainers, medical professionals, or others with access to non-public information. Further, registered gaming operators were unable to demonstrate that the WBA took any action to investigate or enforce the allegations of potential match-fixing and insider wagering.

The AGCO has indicated to registered operators that in order for WBA betting products to be reinstated in Ontario, operators must demonstrate that the WBA effectively supervises its events, thus bringing them into compliance with the Registrar’s Standards. In December 2022, the AGCO required gaming operators to stop offering bets on UFC events for similar issues related to insider betting safeguards. Within a month, UFC amended its policies and implemented new protocols that allowed the AGCO to reinstate betting on UFC events in the province.

“Ontarians who wish to bet on sporting events need to be confident that those events are fairly run, and that clear integrity safeguards are in place and enforced by an effective sport governing body. Knowing the popularity of boxing in Ontario, we look forward to reinstating betting on WBA events once appropriate safeguards against possible match-fixing and insider betting have been confirmed,” Dr. Karin Schnarr, Registrar and CEO of AGCO, said.

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Andrew Cochrane Chief Business Officer of GiG

GiG increases Ontario market presence, powering the launch of Casino Time

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Gaming Innovation Group Inc. (GiG), has announced the launch of Casino Time, powered by its award winning iGaming platform and pioneering real-time rules engine LogicX, with revolutionary sportsbook, SportX soon to follow, to further extend its footprint in the regulated Canadian province of Ontario.

The launch of Casino Time carries extra significance, marking only the second time that on-demand, regulated online Bingo has been made available in Ontario. The new Bingo product vertical, launched alongside a strong Casino offering, will be boosted by GiG’s new sportsbook, SportX, as part of a planned release later this year.

GiG has focused its solutions on driving exponential growth in revenue for operators with its highly scalable iGaming platform, offering localised third party content and leading suppliers for the Ontarian market. GiGs peerless gamification layer creates an optimised and immersive casino experience tailored to regional preferences, swelling client retention and player engagement.

Canadian owned and operated, Casino Time is a joint venture amongst leading retail operators in Ontario’s Charitable Gaming sector, delivering Bingo, Slots and Live Dealer Casino Games. Promising a personalised service and community experience, Casino Time is continuing its long-standing partnership with local charities, introducing its joint fundraising model into the iGaming space for the first time.

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Now coming towards the end of its second year of licensed operations, Ontario has emerged as one of the largest iGaming markets in North America, second only to New Jersey according to data supplied by Vixio. The first and as yet only Canadian province to launch a regulated market, Ontario boasts more than 1.6 million active player accounts spread over 40 plus operators, generating €1.3 billion in Gross Gaming Revenue (GGR) in its first year of trading, with this data supplied by iGaming Ontario.

Andrew Cochrane, Chief Business Officer of GiG, said: GiG continues to set the pace with a strong cadence of brand launches in 2024, and I’m pleased that when operators are seeking platform solutions in regulated markets, GiG is leading the pack. Our partnership with Casino Time, will help deliver something new and exciting to the Ontarian market, and further helps to demonstrate the flexibility of our solutions, adapting to match the regional aspirations of our partners to deliver growth.

D’Arcy Stuart, CEO of Casino Time, said: “We are thrilled to partner with GiG as the core technology provider of our iGaming platform. Their powerful suite of player engagement tools, as well as diverse content and regulatory integrations, underpin our ability to serve and delight our player community. Our hybrid online and offline customer network, as well as unique bingo offerings, will drive exciting opportunities as the platform and the marketplace continues to grow.”

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