An old dog with new tricks? A Q&A with Lotto24 CEO Petra Von Strombeck

An old dog with new tricks? A Q&A with Lotto24 CEO Petra Von Strombeck

Monday, October 2, 2017 Posted by Joseph Streeter
Ahead of the EIG conference at the end of the month, Petra Von Strombeck discusses all things lottery with TotallyGaming

Steeped in tradition, lottery is considered one of the most socially acceptable forms of gambling. However, in the current climate, it faces the challenge of continuing to not get overlooked.

With recent results showing Lotto24 thriving in an evolving market and enjoying growth, TotallyGaming.com caught up with the operator's CEO, Petra Von Strombeck, to discuss the risks and rewards involved with different elements of modern lotteries.

Totally Gaming: What can Lotto24 do stay ahead in a market that is becoming more and more competitive?

Petra Von Strombeck: First of all we concentrate on the customer and thrive to offer the best service. Lotto24 has proven in the last years that our know-how, the access to capital and our ability to integrate regulatory requirement in a user friendly platform make a big difference.

Our business model does not bear any jackpot risks and we are market leader with the highest brand awareness in the market. We are thus well positioned to face competition. As online markets are often “the winner takes it all”-markets our target is to expand our market share further and profit form the strong growth in the digital lottery market.

TG: With gambling products continually expanding, how can lottery products continue to reach out to a new audience?

PVS: Lottery products do already reach a new audience. By offering lottery products via the relevant sales channels for younger generations (mobile, apps) Lotto24 attracts younger next generation customers that have never played any lottery before. Please bear in mind that lottery products are the only gambling products that offer a once in a lifetime, life-changing win. This promise is as relevant for the younger generation now as it was for their parents.

We already provide our customers with user friendly solutions for their smartphones, tablets and smartwatches which we are continually developing and improving. By serving the younger customers adequately we help the lotteries to survive in the competitive gaming environment.

TG: Can you identify some of the risks that are potentially involved with the rise of secondary lotteries?

PVS: First of all there are certain risks for the customers: Customers do not differentiate between state licensed and secondary lotteries.

They are not aware that they place a bet at a foreign provider (risk of payout capacity, restrictive terms and conditions), instead of playing the official lotto.

Second there is a risk for the lottery markets and the existing products: Increasing revenues of secondary lotteries cannibalize the original product revenues and thus the jackpot pool, which is funded by the product revenues. In addition the offer of mega jackpots like Powerball or Euromillions with Jackpots amounting up to 1 billion Euro influences customer perception. National jackpots seem less attractive in comparison. Over time secondary lotteries risk to kill the products they copy.

TG: Recently, Lotto24 has recorded immense growth, what factors can you attribute that to?

PVS: We concentrate all our efforts on excellent customer service and best usability in all channels that are relevant. Once a customer is registered with us he remains loyal and provides us with long-term and stable gaming revenues.

In contrast to many other sectors, long-term loyalty is a major factor in our business model, churn is almost inexistent. One reason for our growth is our excellent and efficient marketing: Over the last years we managed to increase new customer numbers while acquisition costs per customer were reduced. Another reason is the continuously extended product range that leads to higher sales volumes with our existing customer.

Petra will be discussing lottery further on a panel at this month’s eagerly await EIG conference, on a much anticipated panel entitled, Lottery: An old dog with new tricks? This year’s conference, is being held at The Arena Berlin, 30 October – 1 November. The theme for 2017, Generation Hybrid, will focus on key challenges and opportunities facing the I-Gaming industry, including Artificial Intelligence, Blockchain and how to engage with Generation Z.

To find out more information about the conference and to register, Click Here.

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