Pat McHugh has extensive experience in the lottery industry, having worked at Scientific Games (now Light & Wonder) for 17 years, eventually becoming the chief executive of the Lottery Division. Since the spin-off of the lottery division to private equity firm Brookfield Business Partners, McHugh has continued as the chief executive. With Brookfield’s support, the company is now able to increase investment and has a long-term view of business and growth.
Innovation is crucial in the lottery industry, especially as it competes not only with other forms of gambling but also with entertainment in general. The focus is on providing casual entertainment and engaging with customers in modern forms of lottery, particularly through digital platforms.
The digital segment of the business is a key priority for investment, with a focus on internet lottery assets. The company partners with lotteries to manage the instant scratch game category, providing full category management and portfolio planning.
While internet and mobile lottery services are already prevalent outside of the US, progress within the US has been slower due to regulatory challenges. However, there is an expectation of significant expansion in ilottery legislation in the future. Digitization goes beyond just selling tickets online, with the use of digital CRM programs, loyalty, promotions, and game add-ons to enhance the player experience and engagement.
Despite the advancements in digital technology, physical tickets will continue to be accepted by consumers for many years to come. However, there are opportunities to integrate digital and technology into lottery products, expanding analytics, and utilizing artificial intelligence to engage players in more exciting ways. This opens up possibilities for new types of games and greater entertainment value.
