The case that changed the industry and paved the way for lotteries that want to grow digitally.
Who is Michigan Lottery?
For years, many lotteries faced the same dilemma: "What happens if we launch the online channel and retail sales drop?"
Far from harming retail, digitalization allowed both channels to grow simultaneously.
But the most important thing is not what happened, but how they did it, a roadmap that any organization can apply.
From traditional retail to omnichannel
Michigan Lottery was born in 1972 to fund the state's educational system. For decades, retail was its only sales engine.
In 2014 they decided to transform by introducing:
online ticket purchases
virtual scratch-offs
a redesign of the player experience
But what is relevant is that they did not digitalize to replace the physical channel with online, but with the mission to enhance it.
Data obtained
The results came quickly:
$146M in digital sales the first year
$613M after three years, a growth of +320 %
retail grew in parallel, from $2.75B to over $3B
That is to say, the online channel did not compete with retail... it strengthened it.
The technique behind the success
The key wasn't just in "opening a website," but in deploying a real omnichannel architecture, something very few lotteries have managed to implement correctly.
Identical portfolio in both channels
The player can access the same games, with the same rules and the same experience, both online and in physical locations, eliminating the perception of internal competition and preventing user fragmentation.
Use of promotions designed to move the player between channels
Campaigns weren't designed in isolation; instead, retail incentivized digital, and it returned traffic through coupons, bonuses, or missions, integrating incentives across channels.
The use of data as a decision-making factor
Every decision was based on combined data, from gaming patterns, time-slot habits, and response to various promotions.
Smooth user experience
The player doesn't switch platforms; Michigan Lottery is a single lottery with two entry doors.
Why did it work? Because players are now omnichannel
With the advancement of online sales, there are no longer "online players" and "physical players"; lotteries now integrate both worlds. Online does not compete with retail, it feeds it by expanding its player base, capturing more users, retaining them earlier, activating inactive users, and allowing for more stable operations.
And this transition is no longer optional; markets that do not adapt will lose regulated value and be left behind.
The question is no longer if to digitalize, but when to do it
Michigan Lottery not only modernized but set a standard. It is now clear that the future is not physical or online; it must be integrated. And the real risk is not in digitalizing, it is in waiting while others are already doing it.
If you are studying this transition, understanding this model is only the first step. The next is to execute it with a solid strategy and a partner already working with those who are leading this transformation. Do not hesitate to contact us, so we can show you how we can help you.
