Lottery games and sports betting products should be fun and entertaining. They should never be designed to specifically target minors or vulnerable individuals.
When designing a sports betting platform or upgrading an existing sports betting platform, a lottery’s marketing department should consult the team in charge of Corporate Social Responsibility (CSR) or responsible gaming. This will ensure the proper assessment of the sports betting platform for its potential risk for exacerbating gambling addiction and will allow for the implementation of measures for the mitigation of any harmful impact the games may have. Keep in mind that the objectives of the marketing department, the CSR department, and the sports betting operation may not completely align initially. The main objective is to take any potential negative impact of the operation’s sports betting products into consideration when designing a marketing-communications strategy. It is important to maintain an open discussion between these three departments in order to achieve the objectives of the lottery or sports betting operator.
A competitive offer…
At the outset, the marketing team working on a sports betting offer should design a Minimum Viable Product (MVP).
In addition to making the new sports betting offer player oriented, the marketing team should be well acquainted with the sports betting landscape. This calls for detailed knowledge of all major global sports betting operators and any state-authorized lotteries already operating in the field. It is the marketing team’s objective to provide the most effective sports betting platform that will attract players, generate turnover, and ultimately increase Gross Gaming Revenue (GGR).
Product managers often think big, are ambitious, and feel “the sky is the limit”. But certain constraints will allow them to readjust their sports betting offer to align with the objectives. Such restraints might include:
- Budget constraints (investment + fees)
- Resource limitations
- Unforeseen regulatory restraints
At this stage, a business case is essential for estimating the revenue that could be generated.
Projections in terms of sales and margin, the cost of the online platform, retail implementation, suppliers, etc., are sometimes difficult to make. Do not hesitate to contact other WLA member lotteries that have successfully launched a sports betting platform or have successfully relaunched an existing sports betting offer.
It should be noted that around 80% of sports betting revenue generally comes from about 10% of the players. As such, a lottery or sports betting operation should decide which business approach it would like to take. It can choose a more general business model that caters to a broader playing population, or it can take a more focused, competitive business model tailoring its marketing communication to the more avid players, offering loyalty schemes, free bets, hospitality, etc.
… But also a responsible offer
A lottery or sports betting operator must ensure that responsible gaming measures lie at the heart of its sports betting offer, and the welfare of its players is insured.
State-authorized lotteries and sports betting operators must ensure that their sports betting products adhere to the existing gaming laws and regulations in their respective jurisdictions. Going through all the legal documentation can be a tedious and time-consuming process, but it is essential that we understand the laws in order to avoid legal restraints further down the road. If any noncompliance is discovered, the marketing team, IT, and the legal department should work together to find a solution.
However, keep in mind that in many cases restrictive regulations may be challenged. As the lottery and betting landscape across the globe is in a continuous state of flux, regulators often need to update existing gaming laws. At minimum, challenging the regulator will help your organization better understand the government’s motivation behind certain gaming restrictions.
For example, Loterie Romande – the state lottery of the six French-speaking cantons of Switzerland – has a rather limited sports betting offer when compared to a global operator like La Française des Jeux. In an attempt to broaden the scope of its sports betting offer, Loterie Romande asks its regulator to extend the list of authorized markets and sports competitions twice yearly. Each of these requests is supported by factual arguments. Sometimes, the regulator concedes, and the list of authorized sports competitions and markets is extended.
It goes without saying that lottery and sports betting operators should follow their own player protection guidelines. The lottery’s responsible gaming team should assess and advise on all sports betting offers. The overall product, including the bet placement, should be assessed and evaluated as to the level of risk for players (e.g., the availability of the offer, the limits per player and per bet slip, the maximum odds per combination, etc.).
In most cases, the department in charge of player protection or CSR is not directly connected to the product management department. While the CSR or responsible gaming department is more social in its approach, the marketing department is generally more oriented toward increasing sales.
