Interview with Nigel Birrell – CEO of Lottoland Group

Introduction

• Interview by Tim Poole, Editor of Gambling Insider.
• Nigel Birrell, CEO of Lottoland Group, is the guest.
• Nigel recently celebrated 10 years as CEO of Lottoland Group.

Nigel’s Background

• 18 years in the industry.
• Started at Entain (PartyGaming), joined during the poker boom (2005).
• Role in M&A, coming from a legal and investment banking background.
• Worked on diversifying PartyGaming’s offerings beyond poker.
• Introduced to Lottoland founder David Rosen in 2013.
• Became Lottoland’s first non-executive director; joined full-time in 2014.

Lottoland’s Evolution

• Initially had 20 employees, now over 400.
• Expanded from a single market (Germany) to multiple territories.
• Lottoland allows people from one country to bet on lotteries in another country.
• Uses a sophisticated insurance structure for massive jackpot payouts.
• Started with German market; now includes UK, South Africa, Ireland, Sweden, Australia, etc.

The Concept of Lottoland

• Lottery Tourism: Clients bet on the outcome of foreign lotteries without traveling.
• Cross-Selling: From lottery to casino games, scratch cards, blackjack, roulette, etc.
• Economically efficient customer acquisition, better customer retention.

Market Presence

• Originally heavily reliant on the German market, now diversified.
• Growing presence in markets like the UK, Ireland, Sweden, and Australia.
• Expansion carefully managed to ensure effective market penetration.

Industry Disruption & Technology

• Lottoland as a disruptor; targets customers who do not buy physical lottery tickets.
• Focus on online-only operations using advanced technology.
• Technology brings enhancements like jackpot protection and favorite number features.
• About a third of business now includes casino games and sports betting.

Innovation: KeNow in Australia

• Entered Australia in 2015, quickly gained popularity with large US Powerball jackpot.
• Faced regulatory challenges but adapted and eventually secured a Victorian Keno license.
• KeNow: Instant win lottery product running every two minutes, high jackpots (up to AUD $40 million).
• Significant payouts and market penetration.

Lottery vs. Gambling

• Nigel prefers the term gaming over gambling, notes the differences.
• Argues lottery is less addictive but emphasizes responsible gambling practices.
• Lottery is like a Fast-Moving Consumer Goods (FMCG) product—integrated into everyday purchases.

AI and Technology in Responsible Gambling

• Use of AI in responsible gambling for identifying markers of harm and automating customer interactions.
• LIA: An AI chatbot for real-time customer service, launched in Germany and Austria first.
  • Enhances operational efficiency and customer experience.
  • Integrates responsible gaming alerts within AI interactions.

UK National Lottery Transition

• Lottoland has no direct involvement but watches developments.
• Camelot ran the UK National Lottery for 25+ years; technological and strategic changes with Allwyn’s takeover.
• Competition can enhance offerings and modernize operations.

Future Growth Regions

• United States: Potential growth due to low online lottery penetration (currently 2-3%).
• Latin America: Focus on Brazil with regulations offering potential for significant market entry.

Conclusion: The Future of Lottery

• Lottery has a massive, ubiquitous presence, bigger than sports betting worldwide.
• Easy customer acquisition due to widespread recognition of lottery brands.
• Continued focus on bringing lottery online and integrating it with other gaming products.
• Emphasis on allowing players to access international lotteries and large jackpots.

Final Thoughts

• Lottoland’s role is to modernize lottery and make it accessible online.
• Focused on responsible customer engagement and technological enhancements.