The Michigan Lottery’s iLottery services will allow Michigan residents to play their favorite existing lottery games through new distribution channels—over the Internet and on mobile devices. The introduction of iLottery services in Michigan will also allow for the cross-promotion of traditional paper products with digital channels and is expected to enhance and strengthen the Michigan Lottery’s existing retailer network. iLottery services are scheduled to launch in the fourth quarter of 2014 and are estimated to increase the revenues that the Michigan Lottery provides to the state’s schools by approximately $480 million over the next eight years.
“The Michigan Lottery is excited to work with Pollard Banknote and NeoGames to bring iLottery services to the residents of Michigan,” expressed Tom Weber, Chief Deputy Commissioner, Michigan Lottery. He continued, “Pollard Banknote is a known, trusted, long-term instant game supplier that understands the gaming interests of Michigan’s population and knows how to appeal to those interests. It has also played a major role in introducing instant game apps to the Michigan market and has helped the Lottery leverage mobile technology and social media through its innovative products. Plus, NeoGames brings eight years of successful iLottery services experience to the table. We are confident that this is the right team to assist us in increasing revenues for Michigan schools through the use of modern digital channels while also enhancing our retail partnerships.”
“Being selected for this program is great news,” stated Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “We look forward to partnering with NeoGames to make iLottery services a resounding success for the Michigan Lottery and its players and to demonstrate the enormous possibilities for mobile and internet lottery gaming to all of North America.”
“We are excited to have this opportunity to enter the North American market with the Michigan Lottery,” commented Ilan Rosen, NeoGames’ Chief Executive Officer. “Our global iLottery services experience, along with Pollard Banknote’s expertise in instant ticket marketing and their strong partnership with the Michigan Lottery, means our combined team is well positioned to help create a successful iLottery services platform and ongoing games portfolio. This includes the mobile space, which is vital in order to continue to build the Michigan Lottery’s brand and revenues over time.”
Pollard Banknote and its predecessor companies have provided instant ticket services to the Michigan Lottery as its exclusive supplier since 1986. Pollard Banknote currently employs approximately 200 residents at its state-of-the-art ticket printing operation in Michigan, the center of its U.S. operations. The company expects to increase the number of Michigan-based employees and its in-state footprint with the establishment of a customer care center and other operational divisions to support iLottery services.
The Michigan Lottery reported annual sales of $2.4 billion in fiscal 2012, and generated over $770 million in net revenue for the state’s School Aid Fund, which supports public education programs throughout the state. Since 1972, the Lottery’s total contributions to schooling have grown to exceed $17 billion.