SMART-Tech 2012 is convening a very special group of industry leaders to capture the magic of this special time in our business and set us on a course to be the preeminent industry leaders that our players and lottery beneficiaries and Good Causes expect us to be. The Lottery is now entering a business climate in which the opportunities are going to come and go more quickly than ever. The need to act decisively is critical for lottery just as it is for all businesses everywhere. One of the obstacles to acting quickly and decisively is uncertainty about the future. So let's remove as much of the uncertainty as possible. That is the mission of SMART-Tech 2012. Included will be presentations from industry leaders from Canada and Europe who have worked through many of the issues that challenge U.S. lottery directors right now. One of those issues is integrating internet distribution of lottery products in ways that augment and support the land-based retailer network. Another is evolving existing lottery products to take full advantage of new media like internet and mobile.

Another issue is collaboration between jurisdictions.  Differences between jurisdictions can be challenging to overcome.  But the benefits to players, lottery operators, and lottery beneficiaries alike do make it all worthwhile.  And with respect to overcoming obstacles, think about how much more challenging that would be on an international basis, like they do in Europe.  For the past couple of years, top European leaders have come to SMART-Tech to present to and meet with their U.S. colleagues.  They are making this effort for a reason.  The gaming and lottery industry is becoming globalized.  The benefits of collaboration have driven the European lotteries to overcome profound differences in regulatory frameworks to forge alliances on many different fronts.  It's not just about the multi-jurisdictional draw games and the potential "World-Game".  There are countless ways that the interests of the stakeholders of each individual lottery can be served better with an open-mind and imaginative approach towards collaboration.  Right off the top, Canadian and European lottery leaders which have been distributing the games via the internet for many years can share ideas on how to engage the support of the land-based retailers and otherwise avoid pitfalls and optimize the incredible opportunities that internet distribution represents.
 

Of course, another one of our conference goals will be to assess the initial launch of "Enriched" Powerball, explore the ways and means of optimizing performance in the short-term, and to position the portfolio of multi-state games for many years of record-setting sales. 
 

Everyone Wins with Internet distribution of lottery products
Everyone wins when the player-base is expanded, when more consumers are playing lottery.  That's why expanding the player-base is everyone's goal, and that is what internet distribution enables.  And by everyone, we mean:

--  Advocates for responsible gaming:  The Internet lends itself particularly to new forms of extended-play and entertainment-focused games.  This takes the focus off of outcome and puts it more onto entertainment; appealing more to the impulse for healthy fun and recreation.  It also creates the foundation for the kind of dynamic and interactive dialogue between operator and player that supports effective communication and implementation of Responsible Gaming tools.  And lastly, it focuses the business model on increasing the number of consumers who play smaller dollar amounts for recreational purposes as opposed to a focus on selling more and more to the core player.

--  Retailers:  Expanding the player-base translates directly into increased store traffic and sales.  The internet does not take sales away from the retail channel.  The two consumer touch-points work together to serve the consumer and to mutually reinforce and support each other.  This is not theory.  This is demonstrable fact as evidenced in markets where retailer sales growth has been occurring right alongside of internet sales initiatives, and has been for many years (like Canada, Finland, Sweden, Norway, Austria, U.K., Australia, and many other jurisdictions).  Internet distribution of traditional products brings in new consumers who become new retail store customers, and cross-sell promo's drive more store activity from current lottery customers and from new consumer groups.  The land-based retailers will always be the life-blood of lottery's relationship to its players and channels like internet will augment and support that special relationship.
 

--  Operators:  Expanding the player-base is vital to the long-term viability of the business.  Appealing to new consumer groups with new kinds of gaming options and making them available through the channels where the consumers live and breathe is a key part of any success plan. Sustainable Growth is the current business theme for good reason.  Giving the consumer options, making your product available through a multiplicity of channels, opening up a variety of communication links and building a truly interactive relationship with the consumer is all part of an effective Sustainable Growth plan.  
--  Consumers and Players:   The consumer wants choice, they want options.  And they expect the businesses they support to give it to them.  Successful consumer product companies do not try to limit the distribution of their products, to make it available only through a limited number of channels.  That makes sense for nobody, including the preferred channel.  We can't look to businesses who think of the market as a zero-sum game to be leaders because those businesses won't be around long enough.  The focus of sustainable business models is on innovating and collaborating to expand the market and consumer base.  Making the product available through more channels, innovating the product to appeal to new game styles and preferences, these are just some of the things the consumer expects.  So let us be the ones who give it to them.