Thomas Metzger: “We build solutions that benefit the communities we serve”

In this conversation with Lotto.com Chief Executive Officer Thomas Metzger, we discuss the recent introduction of QR codes by Lotto.com. Metzger talks about the significance of the US lottery market and the consumer behavior that drives business decisions – from environmentally-minded lottery players to a desire to experience new products.

Lotto.com makes sure to deliver convenient and sustainable products that are designed to support the communities the company serves. In addition, Lotto.com has been able to significantly scale its offer and ensure that lottery fans from all over the United States are able to order tickets and participate in their favorite draws. We touch on this and more in our full conversation with Metzger.

Q: Tom, Lotto has been on a journey to environmental sustainability through the introduction and use of QR codes. Could you tell us a bit more about how this works and why it's important to you?

Using QR codes at the core of our operations not only helps us offer a secure and speedy customer experience, but also enables us to run our operations digitally. Using QR codes instead of paper playslips results in faster order fulfillment for our customers, while also minimizing our ecological footprint.Since the implementation of our QR code technology, we have saved over 5 Million paper play slips from being printed and we are just beginning to ramp up!By creating these tech-focused solutions and implementing eco-friendly practices, we are proud to be taking a pivotal step towards creating a greener future. We are a company that seeks to develop services and platforms that benefit the communities we serve, and are committed to continuing to prioritize and explore technology solutions that optimize the customer experience and address our dedication to environmental sustainability.

Q: What is unique about your QR code solutions?

Our platform automatically generates QR codes for each individual customer lottery ticket order. These QR codes are a digital representation of customers’ physical playslip, eliminating the need for paper and eliminating the risk of error or damage. Each QR code is uniquely encrypted, ensuring the integrity and authenticity of the ticket information and further preventing fraudulent activity. Customer tickets are then scanned and stored in their account digitally, providing a hassle-free and environmentally friendly alternative.

Q: Is there a consumer preference for your products when people know that your business goes the extra mile to ensure that it protects the environment?

A great example is that in the states of Colorado and Minnesota, a portion of the incremental proceeds we generate for the lottery go directly to wildlife conservation and nature initiatives. At Lotto.com, we believe that it is important to do our part to protect the environment. That's why we go the extra mile to ensure that our business is environmentally friendly.

We believe that consumers are increasingly aware of the environmental impact of their purchases. As a result, there is a growing preference for products and services from businesses that are committed to sustainability. This is especially true for younger customers, who are more likely to be concerned about the environment. This holds up with Lotto.com’s customer demographics who are younger and more tech savvy than those at traditional retail. The use of modern technology like QR codes limits our environmental impact and helps set us apart from other businesses.

Q: Where is the lottery industry today in the age of sports betting legalization and expanding iGaming?

TheLottery industry as a whole in the United States has been growing quite well, especially given the recent historic billion dollar jackpots. However, it can sometimes be missed that the primary function of the lottery is to contribute to the chosen initiatives of the states they are located in. Lotteries in the US contribute over $25 billion to great causes like education, but we can do even better by growing the online market. So, while sports betting and iGaming success can only be measured by sales growth, lottery customers can feel good about the initiatives they contribute to.

Online lottery in the US is still in its infancy, accounting for less than 5% of total sales. If you look at Camelot in the UK for example 45% of their sales come from their digital channel, so we have plenty of room for growth! If you extrapolate that level of penetration to the United States’ $105 billion market, there’s a potential for couriers to cause an injection of over $40 Billion!

Q: Can you tell us a bit more about Lotto's general business and your ambitions for the rest of the year?

Lotto.com is the nation's first online lottery platform to deliver digital draw games and scratch tickets. Our mission is twofold, 1) to make the lottery-playing experience more accessible, convenient, and secure and 2) to attract new lottery customers that generate incremental returns to the good causes that lotteries support. Through cutting-edge technology and seamless user experiences, we aim to bring the excitement of lotteries to the fingertips of millions.

Lotto.com operates as a fully licensed and regulated online lottery service and we partner with state lotteries to allow customers to order lottery tickets conveniently online. As for our ambitions for the rest of the year, we certainly have an exciting roadmap ahead. We plan to continue to expand our services, both draw games and digital scratch tickets, into several new states, offering Lotto.com access to customers from new regions. Our dedication to technological innovation and user-centric design will remain at the forefront, ensuring our platform is always user-friendly and secure. Additionally, as part of our corporate social responsibility initiatives, we will continue to support charitable causes, using the success of Lotto.com to make a positive impact on the communities we serve.

Q: Lotto.com has just introduced a brand-new digital scratch card product intended to appeal to existing lottery fans but also attract customers who may not be familiar with the concept. What is the idea behind the product and how successful do you expect it to be?

Traditionally, scratch tickets have been a fan-favorite part of the lottery experience. Scratch tickets make up approximately two-thirds of the $105B U.S. lottery market right now. Our new digital scratch ticket offering is a brand new innovation, and we are proud to offer the first-ever digital scratch tickets in the industry. Our platform allows customers to order and play their favorite official state lottery scratch tickets via Lotto.com on their computer, laptop, or preferred mobile device.

They simply order a scratch ticket on the Lotto.com platform and can use their mouse or touchscreen, depending on their device, to "scratch" the screen and reveal their scanned ticket and potential prize. Additionally, winnings up to the state’s retail claim threshold are immediately deposited into the customers' account! With the new convenience of ordering scratch tickets digitally, and knowing the current fan-fare around scratch tickets at traditional retail, we expect this to be a great success and we’re proud to have pioneered this innovation. We have also been tested by industry-leader Bulletproof Solutions Inc., where we passed the comprehensive test of functionality, features, and core compliance, ensuring safety and security.

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