European lotteries have decided to follow in the footsteps of card rooms, sharing liquidity and incentivizing customers into joining. The members of the Lotteries Entertainment Innovation Alliance (LEIA), a newly-established pact between operators from multiple European Member States, will work towards this goal.
Hitting the Jackpot with European Lotteries
Several EU Member States have decided to pool their national lotteries, with Denmark, Finland, France, and Norway becoming the founding fathers of the Lotteries Entertainment Innovation Alliance (LEIA). The new body is open to operators from across the founding countries that would be interested in sharing their prize pools for the sake of offering bigger rewards, LEIA CEO Morten Eriksen explained.
Founded by Danske Lotteri Spil, La Française des Jeux, Norsk Tipping and Veikkaus, the body plans to expand across the territories of the countries and diversify their portfolio as well as stimulate growth. As a person of considerable experience in the sector, Mr. Eriksen has been chosen to oversee the venture and help it achieve its goals. One of the challenges that lies ahead is to make sure that operators don’t end up flouting European law.
While the lotteries will definitely offer better payouts to their lucky customers, Mr. Eriksen commented on one of the main motivators to carry on with such a decision, namely, spreading the risk across multiple operators.
Speaking to media representatives, Mr. Eriksen revealed that the partnership had been long on the cards and it was originally signed on October 1, 2018. However, there were significant challenges in bringing all lottery operators together, specifically where state operators are concerned, because of lack of proper technological innovation and digitalization.
Streamlining the Experience & Offer Both
Europe already offers the largest lottery jackpots in the world. By pooling the efforts of established companies and bringing minnows into the fold, Mr. Eriksen believes that the sector would benefit from innovation as well as better safety. But before any of this can be achieved, participants will have to merge their libraries.
This is the first objective Mr. Erikson has set for himself. The integration is supposed to take place by the end of 2018, or early next year.
But the gaming facilities will not be the last ones to be affected by the decision. The LEIA plans to also streamline its staff and corporate structure, allowing the companies to share common resources without the need of overlapping positions across each member.
While still young, LEIA is already moving towards its headquarters in Hamar, Norway, from where it will operate. Meanwhile, Olli Sarekoski, LEIA Chairman and CEO at Veikkaus, said that lotteries across Europe are changing quickly, and the alliance will need to adapt to the demands of customers as they arise.
Merging operations has implications that go beyond good business strategy, too. They show foresight at a time when Europe is looking to create common frameworks for gambling activities well across the continent.
Creating common standards will further help customer protection and address specific and continuous issues such as problem gambling and addiction. While LEIA is still in the process of setting up its business structure, bringing together the expertise that each individual operator has acquired in dealing with the more sensitive aspects of the industry will most certainly be invaluable.