24 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2026 “Once you understand the funnel,” Wheeler explained, “you can design promotions and recommendations that actually fit real behavior, rather than guessing.” From the operator side, Lester Elder of the Missouri Lottery grounded the conversation in practical reality. With marketing budgets under pressure and competition everywhere, he said, lotteries have little choice but to show up where players already spend their time. “If we want to stay relevant, we have to market where people actually are,” Elder said. “Streaming, social media, digital signage at the pump and in the store — those are today’s attention lanes. And our competitors are already there, spending aggressively. If lottery doesn’t show up in those channels, we’re choosing to be invisible.” Competing Without Trying to Outspend As the discussion turned to competition, the panel was candid: lotteries cannot, and should not, try to match commercial gaming operators dollar for dollar on incentives or payouts. “Sportsbooks can give away $1,000 for a $10 bet,” Cardell said. “That’s not lottery’s prize structure model, and it’s not our way of doing business even if we could.” Instead, the panelists repeatedly returned to trust and mission as lottery’s most durable advantages. Michelle Carney of Brightstar Lottery framed it as a cornerstone to lottery’s identity, external message, and internal culture. “Our most sustainable differentiator is our mission,” she said. “Lotteries fund communities and good causes under a regulated model built on integrity and consumer protection. That’s not just a slogan — public trust is foundational to our brand.” That trust, Cardell added, represents strategic capital built over decades. “In a market where scandals and bad actors can stain the broader gaming category, lottery has an opportunity to stand apart by staying disciplined — fair products, clear guardrails, and a brand people feel comfortable with.” Shaw suggested that lotteries can also learn from how leading consumer brands deepen engagement without relying on constant discounting. Airlines, hotels, and retailers, she noted, have turned transactions into experiential ecosystems — using loyalty, partnerships, and smart prompts to stay connected. “Linked loyalty is a powerful model,” she said. “It’s about adding value without forcing consumers to change their behavior. It’s no longer just about who ‘owns’ the customer. It’s about who can share the relationship.” Elder returned the conversation to lottery’s unique emotional appeal. “Lottery occupies a different space,” he said. “People don’t usually say, ‘If I hit on a slot machine, my life changes.’ But they do say, ‘If I win the lottery, everything changes.’ That dream narrative still matters.” Wheeler offered a note of caution. Over the past decade, lottery growth has leaned heavily on two levers: larger multistate jackpots and higher price points and prize payouts in instant games. “We can’t rely on that same playbook forever,” he said. “We need growth strategies that go beyond simply making prizes bigger. It’s about understanding the role lottery plays in the overall entertainment portfolio, and how players engage with it as a category.” We won’t win by trying to mimic competitors’ economics. We’ll win by modernizing the experience around what only lottery can credibly claim: trust, public benefit, and broad accessibility. Draw Games: Keep It Simple, Modernize the Access When the panel turned to draw games, the challenge was clear. The core mechanic — pick numbers, wait for a draw — hasn’t changed much, and may never fundamentally change. The opportunity, then, lies in how draw games are packaged, distributed, and made relevant. Carney offered the “researcher’s paradox” of draw games: across decades, the big categories haven’t changed much, and attempts to innovate often circle back to the same fundamentals. “Players really prefer simplicity. The categories of games really haven’t changed. There are multistate games, lotto games, cash games, daily draw, Pick 3 and Pick 4. Even newer concepts and innovations are more likely to succeed when they feel familiar. The larger opportunities are going to come from distribution. How easily can a person add the game to their basket? Think of the payment process as being a part of how people play. So, how do you allow a player to add Mega Millions or Powerball or Cash Pop to their basket, whether it’s in lane, self-service, or walk-in walk-out and using payment methods such as digital wallets biometrics, or another form of frictionless checkout? There needs to be options other than paying cash at clerkassisted check-out.” Elder agreed, pointing to broader consumer behavior. “Convenience isn’t an optional feature anymore — it’s the baseline,” he said. “People can order almost anything from their couch. They expect lottery to be just as accessible.” Wheeler separated the issue into two parts: channels and product. “On channels, we’ve made real progress. On product, the harder question is whether younger players find the traditional draw mechanic entertaining enough. I don’t think we’ve fully answered that yet.” Shaw described how some lotteries are addressing that gap through brand partnerships, access points, and experiential prizing. “The NFL initiative is powerful moment for our industry because it’s more than sharing logos,” she said. “It’s a cultural bridge. Courier and digital access points create discovery. And experiential prizes give people something they’ll want to share.” The takeaway: There are constraints to how the draw game can be changed. But there is headroom to further modernize distribution, partnerships, and pathways to connect with contemporary culture and younger players. Instant Games: Beyond Glitter and Ink Instant games remain a foundational revenue engine, but the panel was candid about the generational tension: physical scratch still matters, yet the next growth wave will come from connecting instant play to digital habits and modern discovery. “Scratch isn’t going away. Retail is foundational,” Cardell said. “But shiny inks and product enhancements aren’t a complete strategy. The next step is building bridges that connect physical instant games with digital behavior; that includes e-instants where permitted, retail-linked digital experiences, and cultural collaborations that bring digitalfirst consumers to lottery.” Shaw described the industry’s retail investments with affectionate humor. “We’ve spent years peacocking scratch at retail — special inks, die-cuts, premium finishes — and all that matters. But now we have to make sure all of that effort and investment intersects with how younger consumers discover and buy.” New Directions: How might Lottery Gaming change over the next five years? — continued from page 20 Continued on page 36
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