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INSIGHTS
The Official Publication of the North American Association of State & Provincial Lotteries
January/February 2015
Special Retailer Edition
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INSIGHTS January/February 2015
Ontario
Next-generation kiosks
A
centerpiece of Ontario Lottery and Gaming Corp.’s retail vision and strategy is to have engaged and educated
retailers and to make sure they are “executing with excellence,” explained OLG’s Executive Director of Sales
Larry Colatosti. It is also important that retailers fully understand the lottery value proposition – how lottery
helps drive business to their locations.
A small but significant portion of OLG’s sales – about $130 million annually – comes from about 130 dedicated
lottery retailers (DLRs), which operate lottery-only kiosks primarily in shopping malls throughout the province. Last
November, OLG began a pilot program with state-of-the-art kiosks designed for this market, and kiosks were placed in
two major Toronto shopping centers.
“We did an analysis of the kiosks that we had, and they did not have a consistent look and feel,” said Colatosti –
many were old and outdated, and the appearance of the selling area was up to the individual retailers. “The opportunity existed for us to try to get a consistent look and feel, to integrate new digital technology and to attract new
players.”
The new mall kiosks feature a clean, modern look with large screens and tablet/touchscreen technology that allow
players to learn about lottery products using a hands-on approach. A number of iPads are available for use, featuring
interactive materials on how to play, odds, winning numbers and responsible gambling materials. This digital content
can be updated or changed as OLG monitors what types of information customers are looking for. Printed materials
covering these topics are also available at the kiosks.
A year in the making, the new kiosks had to meet accessibility requirements and be modern with full digital
integration. The latter includes both giant, attention-getting screens to build awareness as consumers approach while
shopping, and iPads that help players – especially infrequent and new players – learn how to play and how to check
tickets.
INSIGHTS January/February 2015
“The use of iPads is a big move for us,” said Colatosti, and they provide an opportunity to reach a younger demographic. The giant displays, which no shopper can miss, announce current jackpots and other lottery news, along
with a rotating menu board that lists the lottery’s available products. Noting that one of the barriers to getting new
or infrequent players to play is the intimidation factor, he explained that the product menu helps minimize that so
players know what is available.
In the two short months they have been in market, there were a few minor hiccups that are part of the learning
process in any new venture. Colatosti advised anyone considering a similar path to make sure that all the of the background technology work is done to make sure the digital integration goes smoothly and to minimize IT issues that
may come up. And OLG found that players would often use the iPad surface to scratch their tickets, so they had to
use plastic covers to protect the tablets. “All small things that you learn in test.”
It’s too early to know how the new kiosks have performed from a revenue perspective, but certainly from a consumer awareness and retailer perspective, they are a hit. “Consumers love the new look and feel and the integration
of digital,” said Colatosti. He was amazed at the attention the kiosks were getting when he spent some time observing them in action. “The retailers are really enjoying it too – this new kiosk will enable them to ultimately satisfy
more consumers and drive top-line revenue and their commissions.” He added that other DLRs are already asking
how they can get one.
That won’t be determined for a few more months. Obviously the kiosks have to generate a return on investment
in order to make them work and to justify the cost to retailers. OLG will evaluate the two test kiosks after six months
and is also conducting research about how they are being used. “Ultimately our goal is insure that all of our DLRs
have a consistent look and feel incorporating digital. If we can show them a good ROI, it’s something they will want
to invest in going forward.”
OLG is also looking into how to provide enhanced winner awareness using the kiosk’s digital capabilities. “We are
very focused on the winners campaign here in Ontario, so that’s an opportunity for us,” said Colatosti. Additionally,
he sees value in adapting some of the kiosk’s elements to more traditional lottery environments like convenience
stores. For example, OLG is looking how to incorporate the same look and feel, and the digital integration, into its
current play stands, which are a little outdated.
“One of the clear tactics in our long term vision is to optimize sales at the point of purchase through impactful
retailer presence. I think this does that, absolutely.” The new kiosks clearly help OLG with another tactic, expanding
its digital presence to support enhanced player education. “It’s all very exciting.”
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