Continuing Success in the Lottery Industry: Embracing Gen Y & Z

“When I was in my 20s, I would buy a lottery ticket every Friday, and I will never forget the excitement of that first big win. It was thrilling to realize I had matched six of the seven numbers, and when I won $2500 from my pick, it was one of the best Friday nights of my life. My winnings made for an extra special night out with friends. And, later, a great story as I began working as a consultant in the lottery space. Although the lottery industry continues to be highly successful, Millennials and the older cohort of Gen Z do not necessarily share my Friday routine.”

Evolution is part of the natural order and today’s lottery industry needs to do more to adapt to the expectations of today’s influential generations. Indeed, leaders I work with in the lottery space have begun proactively engaging in new approaches and strategies to secure long-term sustainability.

Designing for the expectations of today’s influential generations

Gen Y and Z are incredibly culturally influential generations. They are re-shaping industries with their spending preferences and habits – but currently, playing the lottery is not one of them. While publicly available research from the U.S. shows that Gen Y and Z have bought lottery tickets, it also indicates that a significant portion of the industry’s revenue still comes from older players.

Are Gen Y and Z just coming to the lottery later, or are they not interested in this form of entertainment?

Public sources and our own Level5 data indicate that when younger players do become engaged with the lottery some exhibit strong play behaviours. The trouble is in attracting them in the first place. Regardless, the data reflects less interest from younger segments and a trendline that must immediately be addressed to secure the industry’s vitality.

There are a couple of clear opportunities to better position the sector to meet the needs of these generations – and other industries would do well to learn from these challenges and associated opportunities.

In the coming weeks, I’ll outline how lotteries can re-consider the product and experience in a way that engages the needs and wants of younger players and what business leaders from across sectors should know about this generational transformation.

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