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Optimizing the Lottery Game Portfolio Hero Image
Empowering State Lotteries Through Data-Driven Game Development

Optimizing the Lottery Game Portfolio

Entercom & Recreation

A state lottery faced the intricate challenge of expanding its scratch-off game portfolio while optimizing sales, profits, and evaluating the potential cannibalization of existing offerings. The introduction of new games and a price point were on the table, requiring a comprehensive assessment of their potential impacts.

To quantify the anticipated effects of these initiatives, we embarked on an online survey targeting current scratch-off enthusiasts within the state. Utilizing a sophisticated Menu Based Conjoint (MBC) analysis, we replicated the retail buying experience, enabling participants to make informed purchase decisions from a simulated scratch-off display. This approach allowed us to capture authentic consumer behavior and spending patterns, ensuring our data’s accuracy and relevance.

Our analysis translated into actionable insights, detailing the effects of proposed changes on sales, revenue, and profitability at both the individual game and portfolio levels, a distinction crucial for understanding potential opportunities and risks. This nuanced understanding of market dynamics enabled our client to pinpoint the most lucrative game concepts and validate the strategic introduction of a new price point. Further enriching our study’s value, ongoing iterations have provided a cost-effective, expedited means to explore additional game and pricing strategies, continually refining the lottery’s approach in alignment with evolving market trends.