Australian lottery and gambling operator Tabcorp is finalizing the tally of its performance over the last fiscal year, which just wrapped up on June 30, and doesn’t anticipate being able to give good news. As has been the case with the entire gaming industry around the world, Tabcorp has taken a major hit (in pdf) because of the coronavirus that has led to a decline in activity over the past several months. News that certain parts of Australia have now seen major spikes in the coronavirus aren’t going to help matters, and the new fiscal year will bring even greater challenges that will impede the company’s recovery.

Tabcorp estimates that its net profit for the fiscal year that just completed will only be around US$189.97-$194.24 million. That’s substantially lower than the $281.75 million it reported for prior fiscal year, and mirrors a drop in company EBITDA (earnings before interest, taxes, depreciation and amortization), as well. Whereas the company saw EBTIDA of $796.88 million in the previous period, the most recent fiscal year could only bring $704.48- $711.6 million in EBITDA. 

David Attenborough, Tabcorp’s CEO and managing director, said in an announcement about the financial forecast, “COVID-19 has materially impacted our Wagering & Media and Gaming Services businesses. We are facing into a challenging and uncertain environment, and the current operating conditions and those expected into the future are relevant factors in assessing the value of the goodwill in those businesses at this time.” However, he believes a rebound is coming and explains, “We remain confident in the strength and resilience of Tabcorp’s diversified portfolio of assets and are pleased that integration is now substantially complete. We are focused on supporting our people and partners during these challenging times while ensuring that Tabcorp emerges strongly post COVID-19.”

Attenborough won’t be around for any potential recovery, as he is exiting the company along with chair Paula Dwyer and non-executive director Steven Gregg. Those changes reportedly come in response to a push by certain shareholder groups that feel the company’s leadership hasn’t been living up to expectations. Dwyer is expected to relinquish her position by the end of this year, and Attenborough is going to depart sometime during the first half of next year. 

Online lottery sales have proven a godsend for many US state lotteries during COVID-19, which makes it all the more inexplicable when states pass up the opportunity to introduce an online option.

On Wednesday, the Kentucky Lottery reported record sales of $1.2b in the 12 months ending June 30, a 6.2% improvement over the previous record set in fiscal 2019. The state’s share of this sum rose 2.8% year-on-year to $278.5m, also a new record.  

While scratch-off ticket sales ($741m, +10.7%) continued to be the dominant lottery product, the biggest percentage gain came via the online lottery, which shot up 68% year-on-year to $45m. That figure represents a more than eightfold increase since FY17, the first full year of the state’s online sales.

While the digital unit still accounts for only 3.7% of all sales, it was credited with helping the Lottery fill the void when COVID-19 forced many lottery retailers to shut. For instance, Keno sales were down 6.4% to $78.8m in FY20 thanks to the shutdown of all monitors for two months to minimize people clustering around them.

Buying a scratch-off ticket makes you a gambling addict. That appears to be the mindset of some U.K. government officials who are dead set on doing everything they can to erase all types of gambling activity from the landscape. The latest in a growing pile of initiatives designed to cut down on access to all things gaming centers on lotteries, such as Lotto and Thunderball, and scratch-off instant-win tickets. The National Lottery offers both and, according to current regulations, are accessible by anyone 16 years old or older. However, that’s no longer going to be the case. 

Despite numerous studies that show that “problem gaming” can only be attributed to 3-4% of the entire market, the U.K. is determined to tighten the screws anywhere and everywhere it can, allocating an exorbitant amount of money and resources to gaming addiction. In keeping with that effort, it is changing the rules regarding who can purchase lottery and scratch-off tickets, bumping up the age to a minimum of 18. The move is presented as a requirement to prevent those 16 and 17 years old from becoming gaming addicts. 

To offer a different perspective, the age for beer drinking remains at 16, per the U.K. government’s website. It explains, “[If] you’re 16 or 17 and accompanied by an adult, you can drink (but not buy) beer, wine or cider with a meal.” U.K. alcohol awareness organization Alcohol Change U.K. points out, “Alcohol misuse is the biggest risk factor for death, ill-health and disability among 15-49 year-olds in the U.K., and the fifth biggest risk factor across all ages.”

The new anti-gambling initiative is now being considered by lawmakers and needs to be approved before the changes are implemented. Should the bill be greenlighted, it’s possible that 16-year-olds will still be able to chug away at a local pub, but won’t be able to purchase a scratch-off. Anti-gambling groups accuse the National Lottery of taking advantage of the current laws to attract younger customers who, according to the opponents, spend “hundreds of pounds” each week on the games. According to them, 16- and 17-year-olds spent £ 47 million ($60.3 million) on National Lottery games in 2017 and 2018. 

Online lottery sales are proving to be the bridge that’s helping some US state lotteries get over pandemic shortfalls in retail sales.

This week, the Georgia Lottery announced that it had booked a record $1.24b profit in the 12 months ending June 30, up from $1.21b in FY19, despite FY19 featuring a record $1.5b MegaMillions jackpot. The FY20 profit marked the fifth straight year in which the Lottery’s annual profits topped the $1b mark and the ninth straight year of annual growth.

Lottery CEO Gretchen Corbin said sales dipped in March as COVID-19 forced some lottery retailers to close and kept customers at home under pandemic lockdown. But sales rebounded in the final quarter of the fiscal year, thanks in part to the Lottery’s efforts to promote its online offering, which includes not only draw ticket sales but instant win games.

A similar ‘online to the rescue’ narrative was recently issued by the Pennsylvania Lottery, which saw overall sales drop 25% in March after nearly one-third of the state’s lottery retailers were forced to close due to COVID-19. As of May 31, traditional Lottery sales were down $60m from the same period last year.