It’s the tagline adopted this year by the Ohio Lottery, an industry leader in innovation and responsible gambling.
By Patricia McQueen
Published November 19, 2024
It has been a busy year for American lotteries celebrating their 50th anniversaries, as the industry really started taking hold East of the Mississippi in the early 1970s. After voters overwhelmingly approved a lottery (by a 2-1 margin) in 1973, Ohio became the 12th state to launch a modern lottery when the first ticket, Buckeye 300, went on sale in August 1974.
The 50-cent game offered a whopping prize of $300,000 – just shy of $2 million in today’s dollars. Yet even $2 million today doesn’t generate anywhere near the excitement that first $300,000 prize had in 1974, notes Michelle Gillcrist, who was appointed Ohio Lottery Director by Governor Mike DeWine in May 2023.
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Lottery proceeds were earmarked for education in 1983, and the Lottery Profits Education Fund was created in 1988 to formalize the separation of Lottery revenue from the state’s General Fund. From inception through FY24, the Lottery has contributed more than $32.5 billion to education in Ohio. “That’s something we are especially proud of, and we’re especially grateful to our employees, our retailers, and our loyal players for helping to make that number a reality,” says Gillcrist.
In 2007, the Lottery’s connection to education was further enhanced when it launched the Partners in Education program, which recognizes the exceptional efforts of K-12 students, teachers and schools across Ohio with awards for Academic All Stars, Teacher of the Month, and School of the Year.
Through it all there has been an eye on minimizing the impact of problem gambling among the small percentage of the population that has difficulty in this area. “We want people to play our games and have fun, but we encourage them to do it in a very responsible way. We see ourselves as a form of entertainment, and like with anything, you have to do things in moderation.”
A Group Effort
In fact, Ohio is one of a few states where there are formalized ties between lotteries, gaming regulatory agencies and mental health agencies and organizations. Ohio for Responsible Gambling (ORG) is an initiative aimed at promoting responsible gambling in Ohio, with four members: Ohio Lottery Commission, Ohio Casino Control Commission, Ohio State Racing Commission, and the Ohio Department of Mental Health and Addiction Services. The latter agency serves as the resource partner for the initiative and the lead agency responsible for prevention and treatment of problem gambling.
“I think we work very well together, to not only educate our players on responsible gambling but also taking many measures to educate parents and other adult stakeholders on kids’ games that look innocent enough but could be the breeding ground for future problem gamblers,” explains Gillcrist. A current focus is increasing awareness of the impacts of loot boxes in video games, which encourage children to make in-game purchases with the same dynamics that can create problem gamblers.
These and many other subjects are addressed annually at the Ohio Problem Gambling Conference, which brings together all the ORG participants and other experts in the area of responsible gambling. “We want our customers to play responsibly – we can’t say that message enough,” emphasizes Assistant Director Nicole Kostura.
ORG’s current initiatives include Change the Game Ohio (primarily addressing youth gambling); Pause Before You Play (helping players learn what to consider before their next bet); Keep it Fun Ohio (an interactive program that provides gamified resources to encourage responsible gambling); and Time Out Ohio (a voluntary exclusion program for the casinos, racinos and sports gaming).
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Cash(less) Is King
ORG is just one example of the Ohio Lottery’s leadership in the industry. Another is innovation. The Lottery has often been at the forefront of innovation, and is a leader in implementing cashless options for players – both for purchases and prize payouts.
Ohio was one of the first lotteries in North America to launch a mobile app, doing so in 2012. A second app for ePlayslips was introduced in 2014. The addition of mobile cashing through the app in 2020 was a groundbreaking first in North America. “One of the innovations that we’re most proud of is our Ohio Lottery mobile app,” says Gillcrist of the app now packed with features.
Launched April 20, 2020, the timing for mobile cashing couldn’t have been better, with the pandemic causing societal challenges at all levels. Using the app, MyLotto Rewards loyalty members could initially cash prizes of $50 to $5,000 using their mobile device; the upper limit has since been raised to $25,000. Those winnings can be directly deposited into a player’s bank account. “It’s just another measure of convenience for our customers.”
From the launch date through the end of December, 2020, there were 102,813 mobile cashing transactions. For the full fiscal year ending June 30, 2024, there were 247,411 such transactions, indicating the option’s popularity among players.
In another major cashless initiative, the Ohio Lottery began accepting cashless payments through its self-service vending equipment in November 2017 (with both credit and debit cards). “More and more of the global economy is moving to a cashless society, especially after COVID,” says Gillcrist. “And with a new generation of players coming on board, we are seeing our cashless sales increase year after year.”
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That has been a boon for retailers, who remain the critical link between lotteries and their players. In fact, the $50 minimum for mobile cashing is a nod to those retailers, keeping them involved in the majority of prize claims. Players can also purchase Lottery Cash through their MyLotto Rewards membership. They simply exchange their points for Lottery Cash, which can then be used to purchase lottery products at any retail location. By driving players to retail, it brings more foot traffic into the stores.
There has also been an increase in the number of “Super Retailers” across Ohio – those that can cash prizes up to $5,000. There are now 99 Super Retailers, with locations determined by research. “We looked for areas where we have cashing deserts and places where there were retailers willing to take on the additional responsibility,” explains Gillcrist. “It’s a win not only for these retailers, but also for their customers, who have more places to cash their winning tickets and hopefully provide more churn for the retailer.”
A Diverse Game Portfolio
Those winning tickets come from one of the more diverse product lines of any American lottery. There are the usual games, of course – instant tickets from $1 to $50, draw games (including Classic Lotto, Rolling Cash 5, Pick 3, Pick 4, and Pick 5, plus the multistate games Mega Millions, Powerball and Lucky for Life), two monitor games (KENO and The Lucky One), and an extensive lineup of EZPLAY games, including progressive and Touch & Win versions.
In addition to these more traditional products, the Lottery is also charged with newer forms of gaming. In 2011, legislation was finalized for video lottery terminals at the state’s seven racetracks, and the first such gaming operation began in June 2012. More than 10,000 VLTs are currently in the market, and they have consistently generated more than $1.3 billion in net machine income in each of the last three fiscal years. The racinos co-exist with Ohio’s four full-service casinos, regulated by the Ohio Casino Control Commission.
In January 2023, sports betting began in Ohio, and the Lottery was assigned a piece of that business with Type C sports gaming at select retail establishments. It’s a small niche in a state dominated by mobile sports betting (Type A) and sports books at the casinos and racinos (Type B), both regulated by Casino Control Commission. While sports gaming has had some impact on the Lottery’s KENO revenues given the overlapping locations and player demographics, it does contribute to the bottom line and also provides additional revenue opportunities for designated locations such as bars and restaurants.
Among traditional products, Gillcrist is particularly proud of the Lottery’s instant game portfolio, with price points ranging from $1 to $50. Instant games accounted for about 52% of the Lottery’s traditional game sales, or almost $2.4 billion in FY24. It’s a strong, but not overwhelming, presence compared to many other lotteries.
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She’s quick to point to research as a big reason for instant game success – and profitability. “Our Instant Product Manager Ron Fornaro puts a lot of time and research into game concepts and design, thoroughly testing through focus groups. He is very passionate about his craft, and clearly our customers appreciate the efforts.”
Particularly popular games include extended play formats and selected licensed properties, but there is always testing to make sure those games still lead the way. There’s also a lot of attention to detail when it comes to prize structures. For example, even though there are three $50 games currently on the market, each has a different value proposition keep players engaged.
A star of the past few months has been the 50th Anniversary game at the $50 price point. It offers top prizes of $15 million ($600,000 annually for 25 years) and $1 million ($40,000 annually for 25 years), plus a range of cash prizes from $100 to $50,000. Players can also celebrate the anniversary at a lower prize point – the $2 Celebrating 50 Years game offers top prizes of $250.
Gillcrist also credits the Lottery’s sales staff for the strong instant product line. “They are a huge key to our success, with the relationships they have with our retailers and making sure that the games customers want in each region are the games actually being displayed in the stores.”
Among other products, EZPLAY games accounted for more than $166 million in sales in FY24, more than most other lotteries offering this category of terminal-generated instant-win games (known as Fast Play in most jurisdictions). In Ohio, EZPLAY games include interactive Touch & Win games, available in select locations.
On the draw game side, jackpots can often make or break a lottery’s financial year, and the big multistate lotto games have produced several billion-dollar fireworks just over the past two years. Gillcrist hopes players will feel the excitement when Mega Millions moves to a $5 game next April, and appreciates the differentiation the change makes compared to Powerball. For the latter, Ohio is studying some of the promotional efforts being planned by the Multi-State Lottery Association. “Before we sign on to any new game, concept or promotion, we try to test that with our players, to gauge how it fits into our portfolio,” notes Kostura. With over a hundred unique games across all product lines, clearly diversification is important for Ohio, but it all has to be based on research.
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The Value of Entertainment
The games themselves provide entertainment, but Ohio’s team knows there can be more. It would seem natural for lotteries to offer exciting game shows featuring enthusiastic players trying to win big prizes. And they were, for a while, as many lotteries established their own game shows in their earlier days. One of them was the Ohio Lottery, which launched its Cash Explosion television show in 1987. Yet while the others eventually fell by the wayside, Cash Explosion is still providing entertainment for players and viewers more than 37 years later.
Players enter to be a contestant on the show through the Lottery’s $2 or $5 Cash Explosion instant games; prizes on each ticket include entry for weekly drawings that determine the show’s contestants. Cash Explosion airs each Saturday at 7:30pm, and contestants for the next show are announced live during each broadcast.
“Cash Explosion fans are one of a kind,” marvels Gillcrist. “They just love the show and the on-air talent. It’s really an institution for the Ohio Lottery.”
The show actually goes beyond just fun and games. “It is also a good avenue for us to provide a venue for other state agencies to promote issues and concerns to our viewership.” For example, at the height of COVID, there was an opportunity to provide information about what was happening and where people could find vaccination information, etc. More recently, the show has spotlighted information on an important literacy program launched by the Governor’s office. “We’re always a willing partner to work with any state agency that needs to get a message out.”
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Fun at Fifty
The signature event of Ohio’s golden anniversary celebration was the Fun Turns 50 event at the Rock & Roll Hall of Fame on September 7. A second-chance promotion provided the mechanism for 150 players (plus a guest for each) to attend the exclusive VIP event. Each received at least $3,500, a hotel stay plus dinner and entertainment, a Lottery scratch-off prize pack, and various fun activities. They all had a chance to win five big cash prizes, ranging from $25,000 to $150,000, totaling $400,000. “It was a once-in-a-lifetime event for those 150 players to help us celebrate 50 years as a lottery,” notes Gillcrist.
The big event was coordinated by Atlas Experiences and Marcus Thomas. While they did the heavy lifting, Ohio Lottery employees made the initial phone calls to the 150 players – 50 winners in each of three preliminary drawings. “We had the opportunity to talk to these winners and really get to know some of them,” explains Communications Director Danielle Frizzi-Babb. “It was fun to make that connection. After all, this was a ‘give-back’ event, a way to celebrate not only our anniversary, but the players who support us.”
Kostura adds that among the 150 winners were players ranging in years from 22 to 86. “There’s always a conversation about who our lottery players are, and this random selection of winners couldn’t have turned out better in terms of their demographics.”
While the event was the highlight of the Lottery’s anniversary year, attention was also given to employees and retailers. Employees who turned 50 during the year were given shout-outs (if they were willing!), and retailers that have been with the Lottery since the beginning were also celebrated. “A lot of them are family-owned stores that depend on lottery for the extra amount of money so they can expand and grow their business,” emphasizes Gillcrist.
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The Next 50 Years
There’s no telling what the next few years will hold, let alone the next 50. For any lottery, there’s always the challenge to maintain growth, especially after record-setting years. Yet Ohio has an impressive track record with innovation and responding to changing technologies and player needs, despite a central gaming systems contract that first began 17 years ago. That will change in 2027 – an RFP process this year resulted in a successful bid by Scientific Games, just announced at the end of October.
The new contract will ultimately bring exciting new technologies to the Lottery. “There’s opportunity for growth and opportunity for improvement, and all of the changes to be implemented will increase the efficiency and operations at the Ohio Lottery,” says Gillcrist.
There’s one other thing she knows for sure that will help the Lottery grow and innovate – a sense of teamwork across all employees. “No matter what their role, everything and anything they do goes to our mission, which is supporting education by offering entertaining gaming experiences. I’ve encouraged all of them to come to me with ideas on how we can continue to grow and improve. They are the subject matter experts who will help us make sure we always add value.”
