U.S. Lotteries and the Internet

The recognition and appreciation for the key role of land-based retail is causing some to wonder if it’s worth ‘upsetting the apple cart’ with the divisive issue of Internet distribution of traditional lottery products.   The fact is that the Internet does not upset the basic distributional model – the impact on sales is slow, it’s incremental, and it does not cannibalize retail sales.  In fact, it complements and augments land-based retail.  More important, though, is the role the Internet plays in converting an anonymous player base into a connected, interactive, and loyal player base; in capturing and converting data into meaningful business intelligence, in introducing an entirely new Customer Relationship Management (CRM) dimension to the business, in transforming lottery into the consumer-centric, market-driven enterprise that will serve the interests of all lottery stakeholders, including or even especially land-based retailers.