As announced on 29 November 2012, Jumbo has formed a 50/50 joint venture providing interactive lottery solutions to physical retailers in preparation for full Internet lottery sales being rolled out across the USA.
“Jumbo is providing valuable solutions to physical retailers in the USA wishing to boost in-store lottery sales using the Internet as a complementary tool”, said Mr Mike Veverka, CEO and Founder of Jumbo Interactive Limited.
“Our successful pilot program across 10 “Hess Express” stores has increased lottery sales by an average of 38% using the Jumbo/RGS program”. This will now be followed up with a rollout to over 800 Hess locations”, he said.
“We are also about to launch another pilot program across seven Tops Markets locations with the aim of rolling out the program to their entire 159 - store network across New York, Pennsylvania and Vermont”, Mr. Veverka said.
“We believe the lottery category has untapped potential for growing sales and traffic in our stores” said John Persons, senior vice president of operations for Tops Markets which is based in Buffalo, NY. “We look forward to piloting a program with RGS and Jumbo to provide our lottery customers with more value and more reasons to make Tops their lottery destination”, he added.
“RGS is excited to work with Jumbo to create this “best of breed” lottery retailing solution designed to unlock potential and increase lottery sales”, said Mr Jeff Perlee, CEO of RGS.
The agreement with Hess Corporation involves the rollout of the program across 869 retail locations following a successful pilot program. The agreement with Top Markets will begin with a similar pilot program across 7 stores and if successful, will be followed by a rollout across their retail network of more than 130 stores in New York, Pennsylvania and Vermont.
In addition to these two agreements, Lotto Points Plus also has an agreement with a distributor to the convenience store industry to provide services to its network of over 15,000 independent retail locations.
The move follows Jumbo’s strategy of entering new markets and embracing established lottery retailers by providing interactive solutions to grow lottery sales. Entry into the USA gives Jumbo exposure to the $A60 billion North American lottery market with games such as the USA Powerball and Megamillions. This year the USA Powerball has jackpotted over US$590 million and in March 2012, the Megamillions game jackpotted to a record US$640 million.