International Gaming Technology (IGT) is targeting double-digit growth in the ilottery sector over the next four years, unveiling plans for investment into the rapidly growing area to further its growth strategy.
Addressing investors on its annual Investors Day 2021, Global Lottery CEO Fabio Cairoli and COO Jay Gendron outlined plans to take advantage of enormous growth in the ilottery sector, with the firm forecasting total global growth of 15-17% CAGR with all geographic regions expected to grow.
Driven by US growth of 32-34% CAGR, IGT states it is ready to leverage its ‘market leading’ lottery position to help several lotteries take their ilottery ventures to go live over the next five years.
Cairoli stated: “We have plans and investments to push this strategic growth opportunity. We are leveraging our FM relationships, best in class technology and broad content library to accelerate adoption by our customers.
“We will also expand our footprint, support stronger growth with existing ilottery customers and improve our overall presence. We have developed a state-of-the-art platform with stronger capabilities and features to support all players driven growth opportunities.
“Most notably we have a reference site in Georgia one of the largest and most respected lotteries. They have launched a new platform in August and are live and growing quickly. It’s the first to market cloud solution which operates our einstant RGS.”
Meanwhile, the firm pointed out that it is a ‘market leader’ in lottery facility management services, serving around 75% of the US market whilst also obtaining an 11% and growing instant ticket market share.
It stressed the importance of the length of agreements in building strong and lasting relationships with lotteries to ensure the growth continues.
“To understand our position in the lottery world, it is important to appreciate the power of incumbency,” Gendron remarked.
“The average duration of our customer relationships is 30 years; it is proven to be a very reliable predictor of contract renewals. Historically, we have been successful in 100% of contract renewal bids and we are entering a favourable contract renewal cycle resulting in highly predictable revenue and moderating capital intensity when compared to the last five years.
“Our portfolio of top 10 contracts has an average duration of 14 years and we enjoy an average of six years before our next rebid cycle for both top ten and the entire portfolio.”
Finally, IGT outlined plans to create an omnichannel retail and digital portfolio to push its growth strategy, citing the changing behaviour of its players.
Accelerated by the pandemic, players are increasingly turning towards digital solutions, therefore, the firm intends to evolve its operations to suit customer demands.
“We have programs to digitise the player experience, evolve our terminals and provide a full set of mobile applications,” Cairoli added.
“This will also represent the base for a retail to digital omnichannel strategy with our FM customers.”