Allwyn Report Details How Lottery Can Better Connect To Gen Z

The gambling landscape is changing before our eyes.

Consumers now have multiple avenues to spend their betting dollar. Because of that, lottery is looking to stay in line with the current trends.

Allwyn, a leader in the global lottery industry, recently released a report taking a look at how the gambling sector can better appeal to Generation Z.

Titled “The Future of Lottery: A Game for Change,” the report was produced by Allwyn through the research agency, The Future Laboratory.

The report was commissioned to research broad consumer sentiments, technology, and societal trends to predict future impacts on the global lottery industry.

In order to draw in the next generation, states will need to go beyond just having flashy lottery apps. They will have to tap into innovative ideas and be willing to take risks.

Here are some of the highlights from the report.

Gen Z to soon be primary economic source

The Allwyn report indicates that the US is annually at $106.4 billion in lottery sales. That is more than combined sales for movie tickets, music, and concerts.

Global lottery sales are expected to reach more than half a trillion dollars by 2035.

It also notes that by 2030, Bank of America predicts that Gen Z will have more than a quarter of the global income. Gen Z applies to anyone born after 1996.

Lotteries will have to adapt to interacting with these consumers and the way they operate.

3 key lottery drivers for Gen Z

Allwyn’s report puts focus on three important lottery drivers that will be crucial in reaching Gen Z players:

  • Digital Evolution: Continued development of online lotteries, improved player interaction, and stronger cross-promotion.
  • Purposeful Play: Players seek to spend their money with brands that are socially responsible and help values that align with their own.
  • Generational Engagement: Knowing how to connect with a generation that is focused on principles and transparency, while being committed to socially-driven causes like responsible gambling.

The report indicates that 69% of Gen Z globally say they would be willing to pay more for a product if they knew it was supporting an issue they care about.

These drivers should encourage lotteries to be more transparent about where profits go. It should also lead them to support more causes with their product.

We’ve seen states put effort into creating retail instant games for special causes. Illinois has games that support causes like cancer research, homelessness, and more. Louisiana is currently working on legislation to establish scratch-off games for veterans, senior citizens, and people with special needs.

Virtual experiences to be part of consumer life

On top of supporting causes, Gen Z is seeking more immersive experiences in their everyday lives.

With those experiences being more obtainable, that could lead to innovative ideas in the lottery landscape.

One of those ideas would be the “Phygital Ticket.” That combines the physical with the digital and would introduce AR/VR technology to the lottery world.

According to the report, 36% of Gen Z consumers use a blend of physical and digital channels during their customer journeys.

Games like “Pokemon Go” underline the layers of digital and real-world interactions. Seven years after its launch date, in July 2023, the app boasted an average monthly user count of over 79 million.

A Publicis Media and Snap study suggests that the AR retail market could reach a value of $1.2 trillion by 2030.

That means the lottery needs to get acquainted with “meta-players.”

These are players who identify with their virtual selves as much as their physical selves. These players spend a great deal of time creating their virtual lives and experiences and the lottery will need to find ways to tap into that world.

That could lead to the use of non-fungible tokens (NFTs) to incentivize engagement.

Gen Z looking for community connections

While also connecting with a virtual world, Gen Z members are looking to be part of a broader community.

That means the lottery needs to look to identify what these communities care about and how to have an influence on them.

Lotto Max, one of Canada’s national lottery games, collaborated with Toronto-based fashion brand Mr Saturday to create Dream Drop. That was a streetwear collection that doubled as a Lotto Max lottery ticket. Each clothing item purchased came with a code. That code gave the consumer access to one Lotto Max play per week for a year. Profits from the sale went to help local organizations.

The report notes, “Although jackpots remain compelling acquisition tools, operators have the opportunity to continue to diversify the range of rewards to enhance the overall playing experience. By doing so, they can appeal to a broader audience.”

Lotteries also may be enticed to consider interactive live drawings for their daily and weekly games. It would be to their benefit to create a social event that can air on multiple platforms to appeal to Gen Z.

Anthony Steed, a professor at University College London, sees this as a big key to tapping into the younger generation:

“For the most part, viewing habits are no longer synchronous. That is a real technical challenge because views are now spread out. That element within the lottery has disappeared, with people just checking whether they won after the fact. But how could brands ensure that people experience winning – and do it together?”

Market Research Future says that the global live-stream market could reach $247 billion by 2036.

Safety, responsible gambling measures

While digital advancements allow companies to get more data and information from consumers, Gen Z wants to be assured that their privacy is being protected and their identity authenticated.

That should be a focus of lottery commissions going forward according to Katie Hiller, Chief Digital Anthropologist of Liiv Group:

“Brands that incorporate a sense of trust, privacy, transparency and safety in how they interact with communities – or build their own – are going to create spaces that people want to be in.”

That means that lotteries need to add layers to their security. That includes facial recognition and fingerprint scanning as part of their online applications.

These innovative technology measures can also be used to ensure responsible gambling.

Data collection and algorithms could be used to detect players at risk, address problematic behavior, and offer enhanced support.

Lottery applications have an opportunity to create more impactful educational content to promote RG measures. That means going beyond just typical RG tools like spending and time limits. Actual information can be provided to consumers to explain how their gambling could be problematic.

 

Photo by PlayiLottery

About the Author

Drew Ellis

Drew Ellis

Lead Writer
A member of Catena Media since 2020, Drew Ellis is the Lead Writer at PlayiLottery, where he handles coverage of the online and retail lottery industry in the US. He previously spearheaded news content at PlayMichigan, where he covered one of the most prominent online lottery industries in the US — among the many other aspects of Michigan's sprawling iGaming market. You can email him at [email protected].
Back To Top