Session Three: Lottery Executive Panel

Larry Flynn from OLG and David Thornburn, NB/PEI project specialist, Gaming Boutiques, Atlantic Lottery Corporation, made up the final panel at this year's Standardbred Wagering Conference. The discussion revolved around a few key topics, including slots revenues, siteholder agreements and building relationships between lotteries and horse racing, but it began with a theme that's emerged with great force throughout the sessions -- attracting Generation Y.

"We see that as the most challenging portion of our future," Flynn said of attracting these elusive youth. "The product that we have now does not stimulate the younger generation and we need to find products more in line with what they are looking for, like skill-based gaming."

He went on to suggest technological innovation that could, for example, see customers playing against each other in the context of networking and peer-to-peer gaming. "We understand clearly that without aligning to their needs we are at significant risk -- our product and our revenue for our product."

"The technology is what has to change moving forward," agreed Thorbun, "so that those customers can play one-on-one, against each other, against groups. Once they can start personalizing and adding their own names and options, I think you'll see that younger generation be more attracted to the product we're offering."

No doubt, such initiatives would require horse racing to work closely with lottery corporations across the country. These relationships have, in the past, experienced varying levels of success.

"It has blossomed to a point that it has benefitted both operations," Thornburn said of Maritime partnerships. He seemed quite positive about his experience with harness racing at the Atlantic Lottery Corporation. "We are in this business together and we can both benefit from each other."

"It's a tenant-landlord relationship that goes much deeper," Flynn offered, in regard to the OLG's experiences. "It's driven, first of all, by customer experience. And because we are a tenant and do not own these properties, we need to establish standards."

He explained that OLG has the intention of refreshing all its properties to align them more carefully with what customers want and will want in the future. "The OLG's goal," said Flynn, "is for all OLG customers to experience a consistent approach as to how those sites are managed -- by setting standards that all those sites must uphold in regards to design, service and quality."

In regard to advancing the racing product and the wagering opportunities available to customers such that racetracks can remain valuable partners going forward, Thorburn stressed marketing, innovation and unification.

"It's going to take a collaborative effort on the part of horseracing to get together and lobby the government for some legislative changes," he suggested. "Horse racing has to be promoted and get some exposure so that potential customers know it's available. That could mean increasing some of your coverage through various media channels, for example. You need to advance the technology so the product is there, and people can bet on it. If you don't get that exposure, you're not going to introduce your product to potential new customers. As an earlier panelist mentioned, a lot of the horse racing clientele are basically dying out!"

The likelihood of finding race-wagering opportunities at an OLG terminal in the future is slim, said Flynn, looking at the situation today. "It has to be driven by what the customer wants," he said. "In the current environment, it would still be restricted. But I would be excited to explore areas that would continue to benefit both of us. Providing exposure is always of great benefit."

Regardless of the benefits available to both parties, this relationship has not always been ideal. Both men agreed there was work to be done -- both on the efficacy of their partnership with tracks, and of partnerships that exist (or fail to exist) within the racing industry itself.

"I think horse racing in the past has basically looked at the lotteries as a cash cow," admitted Thornburn. "The lotteries aren't dying. They are there -- I think that partnership needs to be build. We need to get into a situation where it's a 'we' mindset instead of an 'us-versus-them' mindset. If you really truly partner up and really join forces, I think it would be hugely beneficial to both sides."

"If we're both in it together, I think there are great advantages to that," offered Flynn. "We've had some good partnerships in the past, and there are opportunities still, in my mind, to expand those partnerships."

He did comment, as many have throughout the conference, that horse racing absolutely needs to step forward united. "I think a collective voice from the track will have a much greater effect than individuals knocking on the minister's door. The forces of a stronger group I think will create a much better, long-term impact. You can be more effective if your voice is louder and stronger if it's unified. And in my experience, that is not the case."

Horseplayer Erick Potek jumped in from the audience, curious to know if the OLG was feeling any stress or pressure to divert the money allocated to horse racing anywhere else in the gaming sector.

"As an operator, it's simple, we're driven by the direction of governments. I really don't care what the division (of money) is -- I just need to get in and refresh the current properties that we have. Stress and pressure for me come from having no decision (about that allocation of funds), whatever that decision is."