The courier industry has been buzzing in the United States for months.
But, one area couriers are still trying to figure out is how to capitalize on scratch tickets.
The majority of courier business is done through lottery draw games.
However, one courier that has managed to offer scratcher sales is Lotto.com. It started the option in December 2022.
Already the industry leader by offering these games through online sales in six different states, Lotto.com CEO Thomas Metzger expressed to PlayiLottery the importance of the company continuing to grow this side of its business:
“Scratch tickets make up approximately two thirds of the $100+ billion US Lottery market. Additionally, scratch games have higher prize payout percentages, higher price points, more frequent wins, and offer an instant winning experience to lottery players. Scratch tickets are a top priority not just for Lotto.com, but also every state lottery that we partner with, as they are a constant stream of revenue for good causes that do not fluctuate based on jackpot levels.”
Time delays the core issue for courier scratch-off sales
Couriers have secured the method to handle draw sales.
Due to the fact that these platforms are required to purchase the physical ticket in that respective state, it’s as simple as the company buying a ticket and supplying the scan to the consumer.
Scratch tickets are much more complex.
In the case of Lotto.com, it must still purchase these tickets from an in-state retailer.
Obviously, a scratch ticket doesn’t come with the result available on the surface. Lotto.com provides a scan of the ticket purchased in its scratched-off form. Fellow courier, Jackpocket, provides a video of the scratch process to its customers. Either way, it can be a timely process.
Eilers & Krejcik Gaming released a report earlier this summer, in which it visited Texas to test out the scratch ticket purchases through a courier.
The report indicated that it took from 30-90 minutes for the courier to complete the transaction and send video of the result.
Due to the time it takes, couriers are limited to offering scratch purchases at higher price points only.
Metzger acknowledges the challenges currently involved with scratchers. However, he says time issues are also needed to guarantee the security of players:
“Fulfillment time can fluctuate based upon the time of the order and customer demand. We take the time necessary to ensure a seamless and secure process. Regardless, we believe our solution to still be the most convenient and secure way to play scratch tickets.
“We first launched the product in Texas and had an enthusiastic customer response even without marketing support. We are now digitally delivering official state lottery scratch tickets in five more states. So far, the customer response has been overwhelming.”
New marketing promotion focuses on lottery scratch sales
Should Lotto.com be able to continue to improve the timing of purchases, it will likely allow the company to expand to more gaming options.
If that is the case, it can tap into a larger portion of the overall lottery pie.
Scratch sales made up around 75% of the US lottery business in 2023.
In order to better expand on its scratch venture, Lotto.com launched a new digital campaign earlier this month.
Developed by Havas New York, the campaign “Welcome to Winever” captures traditionally unlucky moments and turns them into winning ones:
“In an often unlucky world, Lotto.com’s Digital Scratch tickets are a reminder that a win could be just a scratch away,” Metzger noted. “Our pioneering Digital Scratch innovation marks a significant milestone for the industry and solidifies our position as a pioneer in the digital lottery space.”
This campaign will be rolled out across radio, TV, and streaming platforms in August. Social media and digital campaigns will follow soon.
Can scratch tickets be a primary revenue source for couriers?
EKG reported that couriers made up less than 1% of the US lottery business in 2023.
That number is definitely expanding, as couriers have added more states in 2024.
Lotto.com is currently offering scratch tickets on its platform in Arizona, Colorado, Nebraska, Ohio, Oregon, and Texas.
Metzger wouldn’t highlight sales data on what the scratch business is providing Lotto.com, but he believes that category isn’t far from matching its draw game sales:
“The lottery courier industry started off only delivering draw games. Digitally delivering scratch tickets was an initiative that Lotto.com pioneered in late 2022 and continues to grow steadily. We believe that the digital scratch solution will eventually mirror what has been accomplished with draw games. Couriers presently deliver lottery tickets in approximately one in every three US lottery markets. Lottery couriers reach non-traditional lottery players, generating incremental growth for lottery sales and proceeds, while not harming the sales of existing brick-and-mortar licensed retailers. We think that digital scratch sales will eventually provide vital support for state lotteries and the important causes that they serve, while maintaining the appropriate balance with and support for the existing traditional retailer network.”
Metzger also noted that Lotto.com has greatly developed the product since its December 2022 launch. He knows the company will continue to put in work to better the product in the months and years ahead:
“Due to the sheer size of the US scratch market, our team spent countless hours researching, developing, and testing a unique process to securely deliver a paper scratch ticket in a digital setting, while maintaining a unique and enjoyable user experience. Our digital scratch solution is the only one that has been tested and certified by Bulletproof GLI, an independent third-party testing laboratory. We are very proud of the fact that we were the first company to develop and launch this proprietary product.”
Photo by Mehaniq via Shutterstock
Graphic from Lotto.com
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