Lottery operators and suppliers can now access unique data, which tracks players and stakes by lottery draw product, by operator, by supplier.
“Last year we launched our bingo product, the year before that was casino and this year it’s the turn of lottery: the oldest and largest gaming sector,” says Kevin Dale, CEO of Egaming Monitor.
“We track sales of all draw products from state and national lottery organisations globally. This allows us to produce interactive reports for both lottery operators and suppliers.
“For the first time, they can see not only changes in relative shares of multi-lottery products such as the Eurojackpot or Powerball, but also how each lottery operator performs with its own local draw products. They can even benchmark sales of Pick-3 draws or upsells, such as Raffle, Extra, Joker or Doubleplay options.”
Egaming Monitor dashboards are aimed at both strategic and tactical decision-making. They can emulate best of breed products or changes elsewhere to jackpots, frequency of draws or even ball configurations.
With the knowledge of how these changes impacted on sales, operators can make their own product decisions with far more confidence.
Tactical marketing campaigns will benefit from an understanding of how different states compare on the ratio of sales to jackpot sizes – how is it that one state generates more jackpot fever than another?
Similarly, ilottery user journeys affect average ticket sales per user. This new data can show how upsell percentages of the add-on jokers or extras are affected by default stake/ticket sizes and opt in/opt-out features. A whole raft of decisions can be supercharged with this new lottery data.
Here’s a handful of interesting differences between some operators globally:
Per capita sales of multistate draw products are highest in New York, Portugal and Ontario.
States or countries where ticket sales are more susceptible to increases in jackpot size include Delaware, Finland and Norway.
Lotteries that have seen the greatest improvement in sales of multistate products last year include the California Lottery, Svenskaspel and the Atlantic Lottery in Canada.
Lottery operators in Puerto Rico, Arizona and Austria are best at promoting lottery add-on products such as Jokers, Raffles, Doubleplays or Extras.
In a world where most lottery operators have a local monopoly, it’s difficult to know how well they perform.
Whilst they do not have market shares to worry about, their only benchmark is historical performance, in turn affected by many other factors, such as macro-economics and trends in entertainment spend.
“Operators can now compare performance to their peers across borders, gaining valuable insights into what products, features or reconfigurations seem to pay off”, Dale adds.
Better decisions lead to higher revenues, which ultimately, means more money handed over to good causes worldwide too.
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About Egaming Monitor
Egaming Monitor (egamingmonitor.com) was founded by industry veterans Kevin Dale (previously CEO at Gameaccount, now GAN plc, and marketing director at Betfair & Sportingbet) and Joel Keeble (founder of H2 Mobile and former director of H2GC).
Their lottery product tracks 700 draw products across 90 lottery operators globally. Data includes draw configurations, theoretical and actual RTPs, sales per draw in both local and international currencies, player numbers per draw, frequency of win data, jackpot sizes, jackpot hit frequencies plus per capita ticket and sales data. Users can filter by day, week, draw, operator, supplier, country, product type and product name.
Egamingmonitor’s existing casino product tracks the distribution and page positions of all 60,000 casino and lottery games from 800 studios, including slots, scratchcards, instant wins, live, table, crash and video bingo across the pages of 3,000+ operators across the globe. Data is sold as a subscription service or via API.
NeoGames S.A, a technology-driven provider of end-to-end iLottery and iGaming solutions, has signed an agreement with Scientific Games to deliver NeoGames Studio content to the Pennsylvania Lottery.
The three-year deal will see NeoGames Studio’s rich portfolio of engaging titles integrated onto the Scientific Games platform, providing the Pennsylvania Lottery’s customers with a wide range of games which will be rolled out across the coming year.
The new partnership further expands NeoGames’ increasing support for lottery customers in North America, with a total of eight lotteries on the continent set to carry the supplier’s iLottery offering.
NeoGames Studio, the Company’s in-house games studio, holds a 17-year track record of providing lotteries with a constant flow of games, having created over 250 games since its inception.
The studio has won numerous industry awards, with its most recent win taking place at the 2023 EGR North America Awards, where its game, Desert Fantasy, won the gold award for Best New Game.
Drew Svitko, executive director of the Pennsylvania Lottery, said: “We are delighted to be able to add the successful and innovative NeoGames Studio portfolio to our iLottery online platform.
“We are always looking for innovative ways to enhance the digital games experience for our valued players and NeoGames Studio has a content portfolio that is packed with entertaining experiences.
“We believe that this deal will enhance the Lottery’s appeal to online players, while fulfilling the PA Lottery’s mission of boosting proceeds to programs that benefit older residents.”
Hili Shakked, managing director of NeoGames Studio, said: “Through this partnership with Scientific Games and the Pennsylvania Lottery, we are able to bring our premium eInstant games to a large new market of players.
“This collaboration is a further illustration of our commitment to providing innovative, engaging games that meet the needs of lottery customers. We are confident that this long-term agreement will be a win-win for all stakeholders.”
Online lottery and iGaming solutions provider NeoGames has hired former deputy executive director of the Virginia Lottery, Robert Wesley.
Wesley has joined the business as its new vice president of North American customer development, effective yesterday (1 August).
He joins NeoGames following an impressive 25-year tenure at the Virginia Lottery, which saw him undertake a series of key roles culminating in his position as deputy executive director of lottery, which he held between May 2022 and July 2023.
Prior to that role, Wesley acted as director of digital, director of sales, and interim marketing director, among a series of other roles since joining the state lottery as a senior programmer analyst in 1998.
Under his leadership, Virginia’s iLottery programme became the top-performing US online lottery less than three years after launching, according to NeoGames.
Overall lottery sales in Virginia grew by 23% in the most recently completed fiscal year, it added.
In his new role, Wesley will lean on his experience to “serve as a resource to lotteries throughout North America that are interested in enhancing their interactive experience,” NeoGames said.
He will also assist and support the supplier’s existing customer base with best practices in the delivery and growth of their online lottery programmes and products.
“Robert is hugely respected within the lottery industry and has an incredible track record of delivering iLottery growth during his time with Virginia Lottery,” said NeoGames CEO Moti Malul.
“As we have consistently demonstrated, our iLottery offering is the industry leader and we want the right people to drive our efforts as we look to accelerate our customers’ success.
“Robert joining NeoGames is a major coup and sharing his expertise with our customers will undoubtedly help to grow their businesses.”
Wesley himself added: “It is a thrill to join NeoGames and work with such an impressive portfolio of lottery partners.
“The North American iLottery market is one that continues to grow rapidly and NeoGames is in a prime position to support lotteries who are interested in enhancing the interactive gaming experience they offer.
“I am excited by the new challenges that lie ahead and look forward to sharing my expertise with the NeoGames team and our lottery partners.”
Nearly one year after its split from Light & Wonder, Scientific Games has bolstered its leadership team as it aims to become a global leader in the digital lottery and lottery sports betting markets.
Scientific Games is the former lottery services division of the business now known as Light & Wonder, which sold its lottery arm to private equity firm Brookfield Partners in April 2022.
The deal consisted of a $5.83bn payment in cash and an earn-out of up to $225m based on the achievement of certain EBITDA targets in 2022 and 2023.
Last week, Scientific Games recruited experienced financial management professional Nick Negro as the company’s new CFO.
The company has now promoted three executives to senior vice president (SVP) roles.
Amy Bergette has been appointed SVP of digital solutions.
Bergette first joined the company in 2002 as vice president online sales and marketing.
She held various vice president roles throughout the past two decades and has extensive experience in all facets of digital programmes.
Going forward, she will drive product and programme innovations, oversee the company’s digital marketing footprint, and manage Scientific Games’ game studios.
In addition, Kira Summers has been named vice president of operations and planning for digital.
Summers joined Scientific Games in 2021 with a background in land-based casino and iGaming programme management.
She previously served as the general manager of the company’s iLottery programme in Pennsylvania.
In her new role, Summers will be tasked with executing Scientific Games’ long-range plans for digital programmes.
Lastly, Merv Huber has been promoted to vice president of digital growth.
Huber was previously responsible for Scientific Games’ CRM solutions and strategies which now serve 11 US lotteries, as well as the company’s product development team.
He has 15 years of experience in online horse racing, sports betting and iLottery and will now support the growth of customers’ digital business through product innovations, expanded CRM and strategic marketing services.
Commenting on the promotions, Scientific Games’ president of digital and sports Steve Beason (pictured) said: “We are investing in people, products and technology platforms that give lotteries the opportunity to engage with their players across all channels.
“We’ve pioneered digital and sports betting solutions for lotteries since 2004. Now, in this next era, we’ve redefined our strategic focus and growth paths to position Scientific Games as the global leader in digital and sports,” he added.
Currently, Scientific Games provides digital lottery games, second-chance programmes, player loyalty clubs, mobile apps, CRM, and iLottery solutions to more than 20 US and 30 international lotteries.
The company has lottery sports betting customers in the US, Canada and Europe.
NeoGames has exceeded 2022 guidance with a total revenue increase of 149% year-on-year to $210.2m, largely attributed to its acquisition of Aspire Global.
In Q4 2022, NeoGames generated revenue of $69.2m, compared to $12.3m during the fourth quarter of 2021.
NeoGames’ share in NeoPollard Interactive (NPI), a co-owned iLottery supplier with Pollard Banknote Limited, generated additional revenue of $14m, taking total revenue for the period to €83.2m.
This resulted in a total Q4 revenue increase of 291% compared to the prior year.
iGaming lottery revenue reached a quarterly record of $28.4m, indicating a 33.4% year-on-year increase and a 16.9% increase sequentially from Q3 2022.
Meanwhile, Aspire Global revenue reached $54.8m, reflecting a 27% growth measured in constant currency.
However, the impact of foreign currency exchange rates resulted in a 14.6% decrease, leading to a 12.4% growth in US dollars.
Adjusted EBITDA increased by 129% year-on-year to $18.1m.
For full-year 2022, NeoGames’ total revenue, including its share in NPI revenue, increased by 149% year-on-year to $210.2m, surpassing the high end of the 2022 guidance range of $197m to $208m.
This growth was primarily driven by the business merger with Aspire Global.
NeoGames’ standalone revenue for 2022 was $165.7m, a significant increase from $50.5m in 2021.
Meanwhile, the company’s share in NPI revenue rose by 30.6% year-on-year to $44.5m.
iLottery revenue was $98.1m, marking 16% year-on-year growth.
Aspire Global contributed $112.1m in revenue from 16 June 2022 (the date the tender offer was completed) to year end.
As measured in constant currency, Aspire Global’s revenue for 2022 showed a 19% growth on a full-year pro forma basis.
However, due to the impact of foreign currency exchange rates, there was a 13.4% decrease, resulting in 5.7% growth reported in US dollars.
Adjusted EBITDA was $54.5m for the full year of 2022, up 63.2%.
NeoGames surprised investors and reported better-than-expected quarterly earnings of $0.22 per share, exceeding market expectations of a year-on-year decline in earnings.
The company beat the Zacks Consensus Estimate, which had predicted a loss of $0.09 per share.
Zacks noted that over the last four quarters, NeoGames surpassed consensus EPS estimates just once.
In Q3 2022, it was expected that the company would post earnings of $0.17 per share when it actually produced earnings of only $0.10.
However, Zacks noted that NeoGames’ shares outperformed the S&P 500 and added about 27% since the beginning of the year versus the S&P 500’s gain of 5.4%.
In spite of strong revenue growth, NeoGames posted a net loss of $0.8m in Q4 and a net loss of $19m for the full-year 2022 due to the amortisation of intangible assets related to the Aspire Global acquisition as well as other acquisition related expenses.
Nonetheless, NeoGames CEO Moti Malul said the company had made “tremendous progress” in 2022 and advanced its strategic goals.
“Our results underscore the advantage of our ability to serve customers on an integrated basis, whether they need solutions for iLottery, online sports betting, iGaming, or any combination of services,” he added.
In February, NeoGames partnered with Intralot do Brasil to enter the Brazilian market and launched iLottery and an online sports betting solution in Brazil.
This was done for Loteria Mineira, which is the official lottery of Minas Gerais, the second-largest state in Brazil.
During the earnings call, Malul commented that NeoGames views this market entry as a test case. He added that at least three, and possibly up to five, states in Brazil are planning to enter the online lottery and sports betting market in 2023.
Matul said when he was in Brazil to celebrate the launch of LotoMinas iLottery, officials from other states participated.
He added: “We keep getting a lot of good questions as other states want to learn the dynamics of what we’ve done there. I think we’re also setting the role model for the other states when it comes to player protection, social responsibilities, responsible gaming, payment solutions and so on that regulators take a very close look at.”
Given that growth at NeoGames was driven largely by acquisitions, it comes as no surprise that the firm’s management was asked during its earnings call about the potential for further deals down the line.
Macquarie’s Chad Beynon asked: “Even though you have an end-to-end solution, are there still opportunities out there where you would consider adding on to what you’re offering?”
In response, CEO Malul said the company was always assessing opportunities.
He added: “We still think that there’s good ways to grow from non-organic growth and to capitalise on opportunities that may present themselves in the market, and we’re looking at them actively.
“At the same time, we do not necessarily want to grow our leverage beyond where it is now in order to do those deals. So we would probably be able to do tuck-in acquisitions, and these are ones that we are looking actively to pursue in a disciplined way.”
Current trading & outlook
NeoGames has issued guidance for 2023, with total revenue expectations of between $235m and $255m.
However, this projection reflects a change in the presentation of revenue for certain Aspire Core customer contracts, which now require accounting on a net basis.
If these contracts were presented on a gross basis, the projected range would be between $323.3m and $350.3m.
NeoGames, which completed its acquisition of Aspire Global in June, has reported Q3 revenue of $73.3m, a significant upturn from $20.2m during the same period in 2021.
Revenue for the firm’s first full quarter post-acquisition increased by 262% compared to the same period in 2021, primarily as a result of the takeover.
Of the total, Aspire Global generated $48.5m in Q3, reflecting 8% growth as measured in constant currency, despite showing a 16% reduction in real terms caused by the impact of foreign currency exchange rates. In Q3 2021, Aspire Global generated revenue of €58.6m.
Further revenue of $11.1m (up 34.3% year-on-year) came from NeoGames’ share in NeoPollard Interactive (NPI), an iLottery supplier jointly owned by NeoGames and Pollard Banknote Limited.
NeoGames’ own iLottery services generated $13.6m during the quarter. When both iLottery operations are added, this segment brought in a total of $24.7m, representing a quarterly record and an increase of 22% compared to Q3 2021.
Adjusted EBITDA was $17.6m in Q3, compared to $7.5m during the third quarter of 2021, representing an increase of 135% year-on-year.
However, the Tel-Aviv headquartered company reported a net loss of $4.4m, or $0.13 per share, for Q3 2022, compared to net income of $1.5m, or $0.06 per share, during the third quarter of 2021.
NeoGames said the swing to net loss during 2022 was mainly due to a $0.23 per share impact from the amortisation of intangible assets related to the Aspire Global acquisition.
NeoGames CEO Moti Malul commented: “The strong performance where we grew revenue and profitability across the business is a great start for our first full quarter post completion of the combination.
“In iLottery, our top line results grew 22% compared to last year reaching an all-time quarterly record. In addition, iLottery adjusted EBITDA margins returned to the 40% level during the quarter.”
NeoGames’ iGaming and sports betting businesses grew approximately 8% on a constant currency basis “reflecting continued strength in our Pariplay and BtoBet offerings”, Malul said.
Aspire had acquired Pariplay in 2019 and BtoBet in 2020, and as a result of the takeover of Aspire, NeoGames subsequently acquired the entities.
NeoGames CEO Moti Malul: “We did experience headwinds during the quarter related to fluctuations in foreign currency exchange rates, serving as a reminder that we need to remain disciplined and focused on controlling what we can.”
“It’s early days in our integration efforts, yet we are already seeing the benefits from the combination as we advance our global leadership across iLottery, iGaming and online sports betting,” Malul said.
In addition, Malul highlighted that while the company believed the results were indicative of the underlying strength of the business, it remained aware of the macro environment.
“We did experience headwinds during the quarter related to fluctuations in foreign currency exchange rates, serving as a reminder that we need to remain disciplined and focused on controlling what we can,” he said.
Analysts also remained cautious. Zacks Equity Research said on the basis of NeoGames’ revenue only, without the revenue share from NPI, NeoGames came out with quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.17 per share.
Zacks Equity pointed out that NeoGames shares lost about about 39% since the beginning of 2022 while the S&P 500 was down ‘just’ 19.7%.
Nonetheless, Zacks issued a hold recommendation, indicating that the “shares are expected to perform in line with the market in the future.”
NeoGames’ recent business highlights included an agreement with the Georgia Lottery Corporation to supply NeoGames studio game content.
It also obtained licences in Pennsylvania and Connecticut for Pariplay, which is now licensed in five out of the six US states that have legalised iGaming.
Moreover, NeoGames said it signed additional content providers on the Pariplay platform. In October, Pariplay also entered into a content distribution agreement with ATG, one of the largest operators in the licensed Swedish market with a customer base of over 1.3 million.
Earlier in 2022, Aspire Global extended its cooperation with ITSP, one of the largest German gaming operators, to provide a complete turnkey technology and gaming content solution, expanding on its prior sport agreement in anticipation of the German market move to local licensing.
Following the release of its results, the company updated its fiscal year 2022 revenue guidance, including its share of NPI revenue, to between $197m and $208m, compared to the prior range of between $194m and $208m.