The British Columbia Lottery Corp. (BCLC) has been seeking help to “better understand current and future market direction as it relates to retail, technology and omni-channel strategies and trends” and is seeking help with that.
Two years ago the lottery company began sounding the alarm about the altering environment where it is competing for not only gaming dollars but entertainment and other discretionary spending. At that time it sought to modernize in order to keep from losing about $500 million in income over the next five years.
At that time its annual report declared, “With the build-out of casinos nearing completion, gambling products that are reaching maturity in their life cycles, an aging player demographic, a potential decrease in player relevance and challenging economic times, sustained delivery of net income to government is at risk.”
The BCLC seeks data analytics and customer relations marketing techniques and better technology. It has set a November 13 deadline for its request for proposals.
It wants to find out the answer to four issues:
• The lottery’s relevancy to young adults.
• Its shrinking player base.
• Who its players are.
• How to deal with technology that has reached its sell-by date.
The lottery has determined that its player base is aging. It is difficult to figure out its player demographic because purchases are anonymous.
Because other forms of entertainment are able to engage customers and determine their desires, the BCLC sees itself at a disadvantage.
Other Canadian lotteries are facing similar challenges. In 2012 the Ontario Lottery and Gaming’s 2012 Strategic Business Review/Advice to Government report urged focuses more on customers and posited that both the lottery and slot machines at casinos are less appealing to the under 45 crowd.
So far in BC at least, fears of declining revenues have not borne fruit. For the year that ended in March the lottery reported a $1.25 billion net revenue, $80 million more than in 2014.
