Lottery
Pollard Banknote Awarded Five-Year Primary Contract by Michigan Lottery for Instant Game Tickets
Pollard Banknote Limited is pleased to announce that, following a competitive procurement process, it has been awarded a primary contract from the Michigan Lottery (“the Lottery”) to provide instant game tickets. This marks the extension of a long-standing partnership between Pollard Banknote and the Michigan Lottery. Under this most recent agreement, Pollard Banknote will provide approximately 90% of the Lottery’s instant tickets per contract year. The initial contract term is five years, with the option to renew in one-year increments for up to five additional years. In addition to instant game tickets, the Lottery also awarded Pollard Banknote a contract to supply validation pull-tab tickets.
As a partner to the Michigan Lottery since 1996, Pollard Banknote is immensely proud of the role it has played in supporting the Lottery over the years, providing a wide range of instant games, retail solutions, and omnichannel products. From fiscal year (“FY”) 2013 to FY 2023, Pollard Banknote printed approximately 90% of the Lottery’s instant games. The Lottery earned the distinction of the fastest-growing U.S. lottery in terms of instant ticket sales per capita, with a phenomenal 182% increase during that time; this is particularly impressive when compared to the average U.S. lottery growth of 66% in instant ticket sales per capita. This growth catapulted the Lottery’s per capita sales ranking to seventh among U.S. lotteries over the same 10-year period.
Combining their years of expertise, Pollard Banknote has collaborated with the Michigan Lottery to curate an outstanding portfolio of games. In 2022, the Lottery’s first $50 game, $300,000,000 Diamond Riches, leveraged Scratch FXŸ to bring vibrancy to its diamond theme, helping drive strong sales and engagement with players. In addition, Pollard Banknote has worked closely with the Lottery to optimize its $20 price point to offer a diverse selection of games, including a variety of unique print innovations and enticing prize structures, to appeal to a broad spectrum of players. As a result, the Lottery’s $20 price point has grown a remarkable 385% from FY 2013 to FY 2023, making it the fastest growing among U.S. lotteries. Pollard Banknote has also been instrumental in the strategic development of the Lottery’s core game category, including Cashword and Wild Time, leading to a 106% increase in Cashword sales and a 204% increase in Wild Time sales from FY 2013 to FY 2023.
Pollard Banknote has also supported many retail initiatives over the years. The Lottery utilizes a variety of innovative products from Pollard Banknote’s Schafer Retail Solutions + (“SRS+”) portfolio to strengthen its retail footprint throughout the state, including over 2,300 Lighted Ticket Menu Boards and All-in-Ones, Outdoor Fuel Menu Boards, and a variety of dispensers.
The partnership between Pollard Banknote and the Lottery is further solidified by the company’s deep roots in Michigan. With an established and robust footprint in the state, including a full instant ticket manufacturing facility in Ypsilanti and nearly 350 Michigan based employees, Pollard Banknote plays an active role in creating job opportunities, generating tax revenue, and supporting other local businesses, which contributes to positive economic growth. In fact, according to a recent economic report by East Lansing-based Anderson Economic Group, in 2022 alone, Pollard Banknote created 475 jobs in the state and spent more than $92.6 million USD operating and investing in its Michigan facilities, generating a total of $51.7 million USD in economic activity.
At its manufacturing plant in Ypsilanti, Pollard Banknote produced approximately seven billion ESS (equivalent single size or 2″ by 4″) instant tickets for lotteries around the globe in 2023, including the majority of the Michigan Lottery’s tickets. As evidence of the company’s commitment to continuous improvement, between 2015 and 2022, Pollard Banknote made nearly $30 million USD worth of major capital investments at this facility, including a $20-million state-of-the-art TRESU press.
“We are honored to be selected as the primary supplier of instant game tickets to the Michigan Lottery,” said Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “We deeply value the relationship we have built with both the Michigan Lottery and the communities in which we operate within the state. As a testament to our successful collaboration and efforts to deliver outstanding games and innovative retail solutions into the Michigan market, we take pride in having contributed to four-fold sales growth since the start of our partnership almost 30 years ago. We look forward to continued success and growth in the years to come.”
Interviews
Lottery launch – Exclusive Q&A w/ Frank Cecchini, Head of Lottery at Evoplay
Evoplay recently announced the launch of its lottery products in partnership with EQL Games. What has the initial market response been like, and how do you see the products evolving?
We view the partnership with EQL Games as an exciting development, as it represents our first steps in the US lottery market. While it’s still too early to assess the market response, EQL is one of the largest independent providers of games in the US lottery market. Integrating our products into their US portfolio provides lotteries with access to super competitive content and lays the foundation for future growth, opening the door to broader opportunities.
Evoplay is famous as an award-winning iGaming studio that produces innovative games that many operators across the globe take up. However, as newcomers to the very different lottery market, we are taking a strategic, step-by-step approach to building visibility and establishing a strong presence. Not all of our games are appropriate for the far more conservative iLottery market â we are, therefore, modifying our most popular instant win games as well as developing specific âlottery friendlyâ content to establish a lottery focussed portfolio of games that support safer gaming initiatives while still being attractive to players.
In October, Evoplay will be attending the World Lottery Summit in Paris, where we will showcase our lottery games and ideas. This engagement is vital to our strategy to expand our network and explore new partnerships.
How would you evaluate the current landscape of the US lottery market? Are there any new partnerships on the horizon for the US market?
There are two factors currently impacting the US lottery market. First, retail sales are down, with most lotteries reporting significant declines in draw-based game sales for this fiscal year (FY25), mainly due to the lack of massive jackpots seen in FY24. Second, there’s increased competition for gambling dollars as states legalise online sports betting, bringing faster casino-style games to mobile devices. The attractive sign-up bonuses from online operators are drawing younger players away from traditional lottery games.
While North America’s iLottery sales are expected to reach $17.7 billion by 2032, this won’t fully offset the decline in draw-based games. To compete, lotteries must offer similar opportunities while leveraging their trusted branding. Evoplay can help by providing games that are not only safe but also appealing. This approach is already attracting interest from potential partners, and we expect that number to grow.
When introducing a long-established product like lottery, how do you ensure it resonates with new players while maintaining engagement from your core audience?
To engage new players as well as our existing audience, we’ve begun by transforming our popular instant games, such as Penalty Shoot-out, along with flagship titles like Adrenaline Rush and Star Guardians, into captivating lottery experiences. Unlike traditional lotteries, our games will offer a unique blend of excitement and entertainment, appealing to players who enjoy both casino dynamics and large jackpotswhile retaining familiar elements that resonate with our loyal audience.
By turning our popular titles into innovative lottery games and introducing entirely new ones, we aim toimpact in both the iGaming and lottery markets. We’re confident that our audience and newcomers alike will be curious about these new games, and weâll further boost interest through various promotions. Evoplay’s products will deliver a unique gaming experience, combining nostalgic charm with modern appeal, ensuring they resonate with different player types worldwide. When players discover they’re not only having a great time but also having a chance to hit the jackpot and make their dreams come true, they wonât be indifferent.
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In which global markets is the lottery experiencing the most growth, and where do you see the biggest opportunities?
Right now, the American (both North and South) market is at the forefront of online lottery growth, and there are huge opportunities here. The COVID-19 pandemic has pushed many players from retail to online platforms, leading to a clear increase in lottery participation globally. In the US, new online and sports betting laws have further accelerated this growth.
Asia is also a significant growth market, as is Latin America, which is becoming more accessible for operators. But if you ask me to pinpoint the biggest area for opportunity, Iâd definitely say itâs the US. I believe our partnership with EQL Games is the first step for Evoplay to enter this market and sets the stage for future growth and success.
We are also focused on expanding our presence in other key markets, including Europe and beyond, where there are many lottery fans. The open data for 2024 highlights the growing potential in these regions, particularly in the top five countries by revenue, whichthe United States, the United Kingdom, Germany, France, and Canada lead. . This landscape presents us with numerous opportunities to leverage.
What does the future of the lottery look like to you?
As the lottery evolves, it will increasingly have to take on some of the characteristics of an online casino. To stay relevant, lotteries must enhance their game offerings and refresh their image to attract younger players, as most current participants are still 50 and older. This transformation is already underway and is set to accelerate, creating significant opportunities for innovative companies like Evoplay.
While engaging a younger audience is essential, prioritizing player safety remains crucial. This can be achieved by crafting games that encourage responsible play, offering captivating formats and dynamic gameplay that keep players engaged without compromising their well-being.
I believe the future of lotteries is bright as we innovate and adapt to the evolving preferences of players. Instant win games are poised to gain traction, potentially shifting the current balance from traditional lottery ticket sales to a greater emphasis on instant win formats by 2030.
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Aristocrat Interactive to Present Innovative iLottery Solutions at WLA World Lottery Summit 2024
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iLottery solutions that power around 70% of all U.S. iLottery wagering, and 30 lotteries worldwide
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The industryâs top-performing eInstant games, developed by its in-house content studio, NeoGames Studio
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A tailored suite of managed services available for lotteries, including advanced data analytics, CRM, payments management, security compliance, loyalty programs, and customer support
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Its Content & Aggregation platform featuring leading games and advanced promotional tools
Latest News
Scientific Games Announces Matt Lynch as New President of Digital, Steve Beason Named Chief Innovation Officer
Scientific Games continues investment in the companyâs innovation and digital leadership in the lottery industry with the addition of Matt Lynch as President of Digital to serve its rapidly expanding digital business. Veteran digital and technology leader Steve Beason assumes the role of Chief Innovation Officer to accelerate Scientific Gamesâ technology advancements worldwide, including AI and cloud innovation.
Lynch joins the Scientific Games Executive Leadership Team, bringing more than 20 years of digital leadership to the company from roles at Amazon, Samsung, Symantec and Firework. In his early career, Lynch spent eight years at Amazon scaling several product categories into $1 billion+ businesses, most recently serving as Chief Operating Officer for online entertainment content.
Beasonâs career spans four decades in the lottery and gaming industry introducing technology innovations across retail and digital channels. In his new role, he will expand the digital platform innovations he has spearheaded across the companyâs full suite of products.
Scientific Games CEO Pat McHugh said, âThanks to the amazing work of our existing teams, our digital business is expanding rapidly with active iLottery launches around the world. The addition of an executive with Mattâs credentials continues Scientific Gamesâ investment in scaling our business to meet our growth plans and innovation roadmaps. Steveâs focus on technical innovation will continue to advance our industry-leading platforms to meet lotteriesâ evolving needs into the future.â
An e-commerce expert in subscription and marketplace-driven businesses, Lynch has a proven ability to create customer-focused products that drive incremental revenue and grow customer lifetime value. He held leadership positions as Head of Direct-to-Consumer for e-commerce start-up Firework, Senior VP of Digital Shopping Experience at grocery retailer Albertsonâs, President & Chief Operating Officer for Samsung SmartThings and Senior VP of Global E-commerce, Consumer Pricing & Analytics at Symantec, a cybersecurity company.
McHugh added, âMatt has an impressive track record in scaling digital businesses. In addition to his strong product orientation, he has broad business acumen and a reputation for being a strategic, quant-based big thinker. He brings a vision to his work and creates strong organizational cultures. We look forward to the many talents Matt will add to our highly experienced global Digital teams.
Scientific Games is a trusted partner to 150 lotteries in 50 countries around the globe, providing games, technologies, analytics and services that responsibly drive maximum returns to their beneficiary programs. The company currently serves more than 30 iLottery customers worldwide with entertaining game content and industry-leading digital programs, including CRM, loyalty, promotions, second-chance, mobile and web applications.
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