October 15, 2024 Marija D
The Kentucky Lottery has renewed its collaboration with Scientific Games, extending their successful partnership for an additional 10 years. This extended agreement continues to build on the foundation that has significantly ed education funding across the state. At the heart of the partnership is Scientific Games’ Enhanced Partnership (SGEP) program, which has propelled the Kentucky Lottery’s Scratch-Off games to become a substantial revenue generator, directly benefiting student scholarships and grants.
Since 1989, Scientific Games has been the primary provider of Scratch-Off games for the Kentucky Lottery. In 2018, the Kentucky Lottery incorporated the SGEP program, a move that has proven instrumental in growing the Lottery’s Scratch-Off product category to over $940 million in sales. As a result of this collaboration, the Kentucky Lottery is now ranked among the top 20 performing instant game lotteries globally.
The SGEP program optimizes the Lottery’s Scratch-Off offerings by employing data analytics, patented technologies, and expert portfolio management. This approach has helped improve game design, logistics, and retail marketing, ensuring top-tier performance for the Kentucky Lottery. In fact, during fiscal year 2023-24, the program delivered a 31% improvement in performance for U.S. lotteries using the system.
Mary Harville, President and CEO of the Kentucky Lottery, expressed her confidence in the partnership’s role in ing both players and educational programs. She noted that the partnership has allowed the Lottery to continuously introduce engaging and innovative games, drawing players into retail locations and, in turn, boosting Lottery revenues. This revenue has been critical in funding scholarships and grants for Kentucky’s students and families.
“The Kentucky Lottery is always looking for new and exciting games to offer our players and retailers, and the Lottery’s continued partnership with Scientific Games will ensure we are doing just that. Creative and top-performing Scratch-Offs bring the players into retailers, which in turn helps the Kentucky Lottery increase our revenues each year. This allows us to fund the many scholarships for Kentucky’s students and families. We look forward to working with Scientific Games to carry out this mission in the years ahead,” Harville said.
In addition to ing education, the partnership has generated significant revenue for Kentucky’s network of retailers. More than $1.6 billion in commissions have been paid to the Lottery’s 3,500 retailers since the partnership began, illustrating its importance to the local economy.
The SGEP program is employed by several of the world’s top-performing lotteries, including five of the six leading U.S. lotteries. This program leverages advanced technology to offer game design services, retail marketing , and portfolio management, among other benefits. By utilizing SGEP, the Kentucky Lottery has been able to maintain a steady flow of innovative and exciting games, keeping both players and retailers engaged.
John Schulz, President of Americas and Global Instant Products for Scientific Games, emphasized the strategic significance of the partnership: “The Kentucky Lottery has always taken an innovative, collaborative approach to growing its Scratch-Off product category, and moving to the SGEP program was a very strategic business decision. Our partnership has proven to be highly successful, keeping the product pipeline flowing with exciting and innovative games to Kentucky Lottery retailers and players and protecting funding for scholarships for Kentucky students.”
In addition to Scratch-Off games, Scientific Games provides the Kentucky Lottery with licensed properties, such as the highly successful ELF-themed holiday games, which have sold out in the past. Moreover, the company delivers an award-winning digital customer relationship management (CRM) program that s the Lottery’s efforts to engage and retain players through omnichannel strategies.
With its products generating over 70% of global instant game retail sales, Scientific Games is the world’s largest creator and producer of instant lottery games. The company serves 150 lotteries in 50 countries, including nearly every North American lottery, providing a broad range of services from retail and digital game offerings to technology and analytics.
Since 1999, the Kentucky Lottery has contributed over $5 billion to scholarships and grants, benefiting students and families across the state. With this new 10-year extension of its partnership with Scientific Games, the Lottery is well-positioned to continue funding education and ing the state’s retailers for years to come.
As the partnership evolves, both organizations look forward to maintaining their devotion to offering new and innovative games, increasing revenue, and continuing to provide essential funding for education in Kentucky.
Source:
”Kentucky Lottery Fuels 10 More Years of Education Funding with Scientific Games Enhanced Partnership”, scientificgames.com, October 14, 2024.