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With New App, Lottery Director J. Eric Hagler Starts From Scratch

3 min read
J. Eric Hagler was appointed director of the Arkansas Scholarship Lottery in August. He began his career in law 31 years ago as a deputy prosecuting attorney in Arkansas. Hagler joined the lottery from the law firm he created in Huntington Beach, California. He presided as a magistrate judge in Bentonville and served as special associate justice of the state Supreme Court in 2003. Hagler was also general counsel to Wedbush Securities and Crowell-Weedon & Co., both in Los Angeles, and president of FMSI Advisers of Newport Beach, California.
Hagler graduated from the University of Arkansas at Fayetteville with a bachelor’s degree and earned his law degree from the University of Arkansas at Little Rock.

What impact will Arkansas casinos have on the lottery?

There is a finite amount of discretionary income that will be spent on various forms of entertainment. By extension, this applies to all forms of gaming, whether it involves games of chance or games of skill. There are distinct differences between a trip to a casino and the purchasing of lottery tickets at your local retailer. Importantly, the time requirement and level of financial commitment involved in casino play satisfy a different type of desire for entertainment.

To be sure, there will be consumer crossover; however, we do not expect to see a significant negative impact. In fact, I can envision a scenario where neighboring casinos could benefit the sales of lottery games.

What is the biggest challenge for a lottery that is now more than a decade old?

Managing revenue expectations for lottery performance is challenging. The lottery is no different than any other business in that it is subject to business cycles. Consumer spending ebbs and flows and is determined by factors largely outside of our control.

A significant part of my job is to ensure that a long-term view is always a discussion point when considering the proper course in the near term. It is important to remember that decisions being made today will shape gaming policy in the state of Arkansas for the next decade and beyond.

How has the COVID-19 pandemic affected your operations?

Operationally, the office of the lottery and its employees performed exceptionally well throughout what has proven to be a historic sea change in the way that business is conducted. Perhaps the biggest challenge has been finding creative ways to continue to provide superior service to our retail partners in a manner that continues to bring a premium value proposition. But interestingly, in these challenges, we believe we have identified new ways to enhance support for our retail partners, and the feedback we are receiving supports our beliefs.

Describe the new app that lets players play certain games.

Currently, we have one retailer offering this new approach. The app model for sales distribution is permeating all facets of retail, and this includes lottery games.

In this instance, a player pays for the purchase of tickets from a virtual wallet offered through the app. A digital copy of the actual hard-copy ticket, complete with identifying information of the player, is sent to the player via the app. The physical ticket is held in safekeeping by the retailer. Winning tickets are securely delivered to the player for redemption at the ASL Claims Center. Winnings of less than $500 can be uploaded to the player’s virtual wallet.

This method of purchase allows players the opportunity to enjoy playing lottery games in a “contactless transaction.” It is essentially curbside delivery.

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