New unique benchmarking report for the global lottery industry including analysis of sales, costs, and sales channels

London/Munich, September 6, 2007: Lotteries are increasingly interested in benchmarking and success factors, as for example the recent WLA seminar “Benchmarking Lottery Performance” has shown. In response, MECN has prepared a unique benchmarking report analysing data from more than 150 lotteries. The report also discusses best practices as well as success factors (results of a survey of lottery executives).

More and more lotteries are increasingly focusing on optimising their operations in all areas of their business, from sales to operating costs. As recent WLA seminars and the growing number of international initiatives of the EL, NASPL, and WLA show, benchmarking is expected to be a key instrument for future business improvement.

Whereas sales benchmarks are relatively easy to compare, other benchmarks such as cost and sales channel figures demand a much more intensive and sophisticated analysis. Preparing a benchmarking study for the lottery industry is thus a difficult undertaking, and so far no public report has tackled this challenge in a detailed study.

Now, however, MECN has prepared a unique benchmarking report analysing data from more than 150 lotteries for the years 2005 and 2006; it includes the following analyses:
  • Sales benchmarks – total sales and sales by product (e.g., lotto, betting, instant, …).
  • Sales channel benchmarks – number of residents and catchment area per average outlet, interactive/Internet sales per capita and per registered user, …
  • Operating expenses benchmarks – operating expenses in % of sales and analysis of economies of scale.
  • Marketing benchmarks – Marketing/advertising expenses in % of total sales, min. and max. spending, and optimal media mix of the ad budget.
  • Human resource benchmarks – Personnel expenses in % of total sales, average personnel expense, and sales per employee.
  • Various other benchmarks – Retailer commissions, prizes, IT and communications, …
  • Success factors and best practices – The report also discusses best practices as well as success factors. These analyses are based on a survey conducted among nearly 50 executives of the global lottery market.
The study can be obtained at: http://www.lottery-benchmarking.mecn.net

About MECN: MECN is a network of experts on issues concerning the media and entertainment industry. Together they provide in-depth knowledge, analysis, and advice to global clients.