Challenges the lottery industry is currently facing (Insights Magazine)
NASPL’s Insights magazine had a special column on the challenges that the lottery industry is currently facing. Check out our reply!
One of the lottery industry’s main challenges is increasing
consumer engagement and trust. To achieve this goal, the
lottery industry needs to respond to consumer interests
through offering innovative and engaging games while also
guaranteeing a transparent gaming environment. Providing proof of
integrity of the full gaming process is a crucial step towards ensuring
transparency to all stakeholders. The lottery industry must tackle
the increasing challenge of creating a secure environment with
trustworthy digital draws and electronic random game outcome
solutions, to protect against sophisticated attacks.
Several studies estimate that a typical organization loses five
percent of its revenue per year because of fraud. Potentially more
significant, lotteries pay high costs for lost consumer confidence and
disengagement from the lottery that ultimately results in reduced
ticket sales. Other potential consequences include diminished
reputation, loss in legislative powers and increased legal fees.
Protecting customers requires raising lottery industry standards.
The costs of adopting technologies that detect fraud are much
lower than the potential short- and long-term cost impacts of fraud.
In order to gain consumer trust and ensure integrity, the lottery
industry must move forward with fraud detecting technologies.
Lotteries already have access to technology that ensures
nonrepudiation – providing proof of the origin and integrity of data.
These technologies can be applied to random number generation
(RNG) systems that guarantee the time of the draw, the hardware
used and the draw results. Inevitably, nonrepudiation of RNG
systems will become the norm by which lotteries are evaluated.