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European Lotteries Adapting to a Post-corona World

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European Lotteries Adapting to a Post-corona World
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The lottery executives and industry experts in Europe have met together via an online webinar “Lotteries in COVID-19 Lockdown” to discuss the impact of COVID-19 on the lottery sector, the consequences for a post-corona world and the importance of continuing to fund good causes during a pandemic.

The webinar was organised by VIXIO GamblingCompliance in association with The European Lotteries (EL), together with representatives of two of EL Members the SAZKA Group and Veikkaus Oy. The webinar has gathered over 250 participants.

During the webinar, EL Secretary General Arjan van ‘t Veer outlined the situation for lotteries during the lockdown. In their immediate response to the outbreak, the vast majority of EL Members have already taken a series of priority actions to protect players and lottery employees, retailers and providers’ staff. The most common steps included remote working, travel restrictions and regular communication with the players and relevant stakeholders.

On the operational side, Mr. van ‘t Veer noted: ‘‘I have seen many EL Members take necessary continuity measure to make sure operations can continue. In the first days of the lockdown, there was a tremendous drop in sales, as retailers closed their doors and draws were postponed or cancelled. Early on, Members that operate slot machines, EGMs or casinos took their responsibility to close, in order to reduce large public gatherings. As the lockdown spread across Europe, more POSs were closed (some up to 100%) and sports betting took a major hit.’’

However, it is not all bad news. Mr. van ‘t Veer added, ‘‘Over the last few weeks some EL members have reported stable sales. Online games are performing better than expected, scratch cards are doing well, and many lottery campaigns are now focused on good causes to support the health sector and vulnerable people, such as funding for medical equipment or the delivery of daily essential supplies to care homes. Since the Easter break, there has been a positive impact on the sales of (draw based) games. There is still a long way to go but light is at the end of the tunnel. Some POSs are re-opening and Members are reporting preparations to get back to (full) business when possible.’’

Moderated by Andrew Gellatly, Head of Global Research at VIXIO, the discussions moved on to national situations and how lotteries can learn to co-exist with the virus.

Robert Chvatal, CEO of the Sazka a.s. and Sazka Group highlighted the observed “north-south divide,” i.e. differences in impact on lottery business between southern and northern regions of Europe, where for example in the southern countries with very small share of on-line lottery sales and 100% POS closures, the business was hit very hard by the crisis and in opposite, in the northern and central European countries, where the on-line share is much higher and retail was closed only partly, the business impact was much smaller.

“Many lotteries have seen a significant increase in online sales share, due to the retail channel limitations and customers’ willingness to have a chance to continue to play. Fortunately, this is even supported by high jackpots of both, local Lotto games and Eurojackpot/ Euromillions, attracting even occasional players to participate. This is something that lotteries will need to adjust to support, for example, their elderly customers concerned about going to their usual retailer with advice on how to play online. Some of them will probably remain the online customers, benefiting from convenience of on-line channel, which will partially increase the future on-line channel share. Nevertheless, plenty of the players will revert back to play in retail, especially those needing the social contact connected with the play. I believe that the lotteries biggest challenge will be to re-open fully the retail channel, respecting all hygienic rules to protect both customers and retailers, and ramp-up the retail channel performance as soon as possible to start to generate good causes contributions on the pre-corona level,” Chvatal noted.

On monitoring changes in the behaviour of players, Sami Kauhanen, SVP of Betting at Veikkaus Oy highlighted that “in Finland casinos, VLTs and slot machines closed in March, while the retails network remained open and continued to operate more or less ‘normally.’ There has been a slight increase for online casinos, but not to the extent that they are seen as a replace to suspended games such as slot machines. On offshore operators, there are not major changes during the lockdown. There is a traditional loss of the market share for online casinos and betting from these operators, regardless of the crisis.”

On sports betting Mr. Kauhanen added, “Live sport betting is a big thing in our country and with the cancellation of sport events, many are turning towards betting on horse-racing, often with new players who cannot currently bet on their favourite live sport, like football. Virtual betting and e-sports are not so popular in Finland.”

An audience poll was conducted during the webinar on what changes there will be in lottery player behaviour in the post-corona era. Most participants said players would revert to their existing retail/online preferences, followed closely by players staying online and retail lotteries becoming less relevant.

 

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SKS365 keeps investing in people: GROW People Management Program took the next level

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11 experienced people managers from the SKS365 group’s 4 locations gathered last week in Belgrade for the new GROW People Management Program. From 15 th to 19 th of April, through trainings, discussions, and social connections, people had the opportunity to further grow individually and as a team, while enjoying Belgrade’s city center and rivers.

Created in 2023 with the purpose of building foundation people management skills across the organization, GROW initiative evolved this year by including a new, advanced program for experienced people managers to further consolidate their skills and prepare for future opportunities.

Building and fostering connections, sharing experiences, and enjoying team building experiences – all these activities have been part of the GROWpmp agenda for the 11 people managers coming from Commercial, Product and Development, Finance, and Sportsbook departments of the group’s 4 locations – Malta, Italy, Austria, Serbia.

GROWpmp included a variety of topics that people managers in SKS365 recognized as the key areas for management development. Topics such as influence through communication, team effectiveness, DEI, through to presentation skills and business topics like understanding finance and management reporting, were delivered with the support of external professionals and internal experts, while designed and organized by the SKS365 People & Culture team.

 

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Kindred’s Share of Revenue from High-risk Players Shows Slight Increase

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Kindred Group plc’s (Kindred) share of revenue from high-risk players showed a slight increase to 3.2% (Q4 2023 3.1%) in the first quarter of 2024. Compared to the first quarter of 2023, the high-risk revenue share decreased marginally. The percentage of detected customers who exhibited improved behaviour after interventions came in at 87.1% (compared to 87.4% in Q4 2023 and 83.0% in Q1 2023). This sustained trajectory in the improvement effect after interventions, observed over an extended period, serves as a testament to the strong dedication and collective efforts throughout the company. It reflects Kindred’s ongoing commitment to fostering positive change within the industry.

“We continue to see our share of revenue from high-risk players fluctuate quarter to quarter, and we are working closely with all teams across the company to support customers towards a more sustainable gambling experience. However, it is encouraging to see that our Journey towards Zero data has steadily decreased since 2020. A similar trend can be seen across the healthier gambling behaviour effect after interventions. This tells us two things: our work is paying off, but we need to continue to push ourselves to propel a sustainable progression,” Alexander Westrell, Director of Communications at Kindred Group, said.

“It was very encouraging to witness the open and transparent discussions at the Sustainable Gambling Conference in London on 20 March, where those with lived experience shared their important stories. Also, it is evident that technology is moving forward, and will provide greater opportunities to detect and intervene in the future. We hope to see more regulators engage with the industry and with experts to secure a more sustainable industry for everyone,” Alexander Westrell added.

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PENN Entertainment Names Aaron LaBerge as Chief Technology Officer

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PENN Entertainment announced that Aaron LaBerge has been named Chief Technology Officer (CTO) effective July 1, 2024, subject to customary regulatory approvals. Mr. LaBerge will report directly to PENN CEO & President Jay Snowden.

In his new role, Mr. LaBerge will be responsible for driving the technology strategy and execution for PENN, while leading the multinational team of technologists and serving as the key business leader for the company’s Interactive division.

Mr. LaBerge spent more than 20 years at The Walt Disney Company, in two stints separated by five and a half years as a technology entrepreneur. He was most recently President & Chief Technology Officer for Disney Entertainment and ESPN where he was responsible for driving all technology and product development in support of The Walt Disney Company’s two media divisions. In that role, he helped set the vision and strategic leadership for how Disney uses technology to enable storytelling and innovation, drive its business, and create unparalleled consumer experiences with entertainment and sports content.

“We are thrilled to have someone of Aaron’s caliber join our PENN executive team. Having overseen a global organization of thousands of engineers, product developers, designers, technologists, and data scientists that created some of the largest scale and most successful media properties in the world, there is no better candidate to lead our Technology and Interactive division into its future. I know Aaron is looking forward to working with Todd George, our head of operations, and our entire Executive Team to continue growing our position as a leader in online gaming, sports betting, and digital sports media,” Mr. Snowden said.

“I’m excited to join another talented team at PENN Interactive and lead our technology strategy. PENN Entertainment is at the forefront of the fast-changing gaming and sports media industry. I plan to use my experience from Disney and ESPN to help make ESPN BET an essential piece of the sports fan experience. Together, we’ll push the limits and redefine how fans interact with sports and gaming,” Mr. LaBerge said.

Prior to his most recent role at the Walt Disney Company, Mr. LaBerge was Executive Vice President and Chief Technology Officer at ESPN from 2015 to 2018. At ESPN he played an instrumental role in the growth of ESPN’s consumer-facing digital media products and services – leading many of ESPN’s most ambitious and challenging projects and helping establish ESPN’s position as the leader in digital sports and innovative sports technology development. He was a key architect in the design, development, and engineering of ESPN’s state-of-the-art facilities in Bristol, CT; Los Angeles, CA; Charlotte, NC; and Austin, TX, as well as data centers and infrastructure that connect those facilities around the world, as well as the technology design and development to support the launch of the multi-platform SEC Network.

Between 2007 and 2012, LaBerge was co-founder and CEO of Fanzter, Inc. – a venture-funded consumer software and digital product development company. At Fanzter, he directed all day-to-day operations and led the development and launch of a variety of consumer-focused internet and mobile products, ground-breaking social and commerce technologies and more.

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