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Transformation Not Privatization

Apr 27

Transformation Not Privatization

Given the more than a billion dollars in missed income targets and double and triple digit percentage increases in operating costs, it seems clear that lottery privatization has not delivered the expected rewards for Illinois, Indiana or New Jersey. While privatization may not have been the answer these states were looking for, it also isn’t the problem for these three or for any lottery. Like most businesses built around bricks and mortar distribution, lottery growth is slowing and traditional strategies and tactics are delivering less while costing more. The democratization of technology, an exponential growth of data, the ubiquitous access to everything that everyone now has and changing consumer preferences are collectively transforming everything about how U.S. lotteries must create, operate and compete, just as they are for every business as well as every government entity. Instead of privatization, U.S. lotteries, in collaboration with their suppliers, must find their way to new capabilities and competencies built for sustained success in a digitally-driven world. In other words, they must engineer a digital transformation to become data-driven and customer-centric and with it create new ways to plan, do, engage, measure and value. It won’t be simple, easy or quick, but if states and jurisdictions hope to maintain lottery as a revenue source (nearly $21 billion in 2015), change is no longer optional.

Download Transformation Not Privatization for a look at how macro trends are affecting U.S. lotteries (as well as every business and every government entity), an overview of privatization results, a look at the important ways in which U.S. lotteries differ from private industry and where assumptions around privatization may have gotten it wrong, an introduction to Digital Transformation for lotteries and a few highlights from the transformation efforts Indiana had worked through prior to their privatization.

Complete the below for a link to download.

  • Gary Gonder says:

    Wanted to download your white paper, but the link didn’t work. I got an error message.

    • sgolightly says:

      Thanks for letting me know and for your interest. I believe the issue has now been corrected, regardless I’ll send you the PDF separately.

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