CINCINNATI – State-run lotteries have been around for a half-century, currently available in 44 states, but only recently have some of those lotteries started to implement loyalty programs, according to a report from Colloquy. In fact, when the Ohio Lottery introduces its rewards program at the end of this month, it will be just the eighth loyalty program for a state-run lottery.

Lotteries today face stiff competition from a variety of sources, including computer games and casinos, and even multi-state lotteries can be competition for smaller, state-run games.  State lottery officials are facing the challenge of getting people to play the lottery on a regular basis, not just when the big jackpots come along. This is where loyalty programs come in.  Bryan Pearson, COLLOQUY contributing editor and president and CEO of LoyaltyOne, suggested teaming up with local sports teams as one winning strategy, according to the article.

Lotteries also have an opportunity to engage customers by including an entertainment element in their loyalty program offerings. Colloquy cites a September 2013 study from Vision Critical, a consumer intelligence company, finding that 40% of the nearly 1,000 people surveyed said they enjoy playing lottery games that are for fun instead of cash-based. That type of enjoyment is especially true for younger lottery players, as 62% of 18 to 24 year olds surveyed said they enjoyed playing non-cash lottery games.