In this interview with adesso, Michael Stücker, Software Development Manager at WestLotto, explains the development of a tablet terminal and its use of artificial intelligence. WestLotto is the biggest lottery in Germany, and they started on the tablet development path on their own.
Published September 11, 2024
adesso: What were the primary factors motivating WestLotto to embark on the development of a tablet solution in May 2016, leading to launch in April 2017 and its continuous usage since then?
Michael Stücker: There were essentially two things. One was that we noticed there is less and less space available in the retail outlets as well as potential new branches. We can’t always come in there with a 1.60m counter and say, “this is the space we need to sell the lottery.” So that was the first point, a small footprint. The second main driver was that lottery hardware is always something very special. You only get lottery terminals from specialist manufacturers, which makes them very expensive. This required the development of a tailored solution to fit our unique needs.
adesso: WestLotto’s early adoption of cloud-based services, AI, and machine learning is noteworthy. Could you elaborate on the rationale behind embracing these innovations early on, and what significant benefits do you foresee for the digitization of the lottery through the tablet solution?
Stücker: Absolutely. Embracing cloud-based services, AI, and machine learning early on allowed us to stay ahead of the curve in terms of technological advancements. These innovations have enabled us to develop a tablet solution that offers unparalleled convenience and efficiency to both retailers and customers alike. By leveraging these technologies, we’ve been able to enhance ticket recognition accuracy, streamline operations, and provide a seamless user experience. Additionally, digitizing the lottery through the tablet solution opens up new opportunities for personalization, data analysis, and customer engagement, ultimately driving growth and innovation in the industry.
adesso: Regarding the development process, what were the key challenges encountered in creating the tablet, particularly in ticket recognition, and how did adesso contribute to resolving these challenges and becoming part of the project?
Stücker: The implementation of robust camera-based playslip recognition, and the solution using AI and machine learning, was definitely one of the biggest challenges we faced during the development process. This is where adesso came into the race because the reading of playslips is something very complex and technically complicated. Adesso’s expertise in AI and machine learning, combined with their 20+ years of experience in the international lottery industry, proved invaluable in overcoming these challenges. Their team of experts worked closely with us to develop and refine the algorithms necessary for accurate playslip recognition, ensuring that the tablet solution met the highest standards of performance and reliability. Together, we were able to create a cutting-edge technology that revolutionizes the way playslips are processed.
adesso: Let’s delve into the specific advantages of the tablet solution. Considering its utilization of commercially available tablets, what are the notable benefits in terms of maintenance and hardware replacement?
Stücker: Yes, this has several advantages and is of course also cheaper. I don't want to say exactly how much, but anyone who knows what a regular lottery terminal costs can work out what a setup with a tablet would cost in comparison when looking at the market. I don't think it's a big challenge to draw conclusions here without going into more detail about prices. It is also the case that the tablets we use are sold by the millions. This also means that we are using technology that has proven itself millions of times over, both in terms of the operating system and the hardware. We don’t rely on just any old tablet, but we rather look at what has a certain market penetration in conjunction with suitable enterprise models.
We also see the advantage of the life cycle. Let’s put the life cycle of a conventional lottery terminal at around 8-10 years. We expect the tablets to last half the life cycle, so after 4-5 years, we will completely replace the tablets. Even then, it will be significantly cheaper than with a conventional lottery terminal with a complete hardware upgrade every few years. So, I always have an up-to-date device in the retail outlet for a lower investment. At WestLotto, we’ve often had the situation where our conventional terminals were nearing the end of their service life, and it was much more complicated to install new features because the performance of the hardware was no longer sufficient. We can also ensure regular updates to the latest operating system versions on the tablets
adesso: As someone deeply involved in the development and implementation from the outset, what do you perceive as the primary advantages of the tablet solution over conventional lottery terminals?
Stücker: In my opinion, the user interface is much more intuitive than that of conventional lottery terminals. Above all, this means that the amount of training required in the retail outlets is much lower and that the training is concluded faster. People are able to sell lottery tickets more quickly and effectively. This also addresses the fact that there is an increasingly high turnover of staff in the retail sector. Even if I have provided training once, it happens quickly that the staff changes again and then you are faced with the same situation once more. Additionally, the tablet solution offers greater flexibility and versatility, allowing for easier integration with other digital technologies and providing opportunities for future expansion and innovation.
adesso: WestLotto operates both the tablet solution and traditional legacy terminals concurrently. Can you share insights into customer perception and experience with these technologies?
Stücker: I would say that the end customer is most likely to experience the new technology via the service tablet and the customer display. They are able to place bets very easily digitally, and the whole thing is much more visually pleasing. This naturally makes the game much more enjoyable. In addition, the possibilities for the overall gaming process are also substantially enhanced. For example, as a player, I can do a winnings check myself. At the end of the day, the retail outlet is there to sell lottery. It must work, and in a limited amount of time. We said at the beginning that we would only tackle small retail outlets such as kiosks with the technology. But in the meantime, we can say that we now also have retail outlets that operate in the high-middle segment in terms of sales.
adesso: Addressing potential hesitations from other lottery companies, how would you address concerns regarding the adoption of a tablet solution in their operations?
Stücker: First of all, we can look back on seven years of productive operations at WestLotto. So we have already sorted out a lot of “teething problems” that, mind you, certainly existed too when today’s conventional terminals were introduced. In any case, a lot of the experiences that we and adesso have made have already been incorporated into the development of the tablet. Based on the conversations we’ve had with other lotteries and the questions they've asked us, I can only say that we can usually resolve all concerns and questions once you really look at the solution and show how everything works right. Above all, this also means that you become a little safer yourself. In any case, with modern tablet hardware, you have a lot of flexibility regarding the lottery in terms of what you can do. The tablet hardware can basically make almost anything possible. I have a modern processor architecture in it. These are high-performance devices. A tablet is not slower than a desktop computer, quite the opposite. What we use in production are the Samsung S-Class tablets, which are already at the top of the shelf in terms of performance. At the end of the day, even a conventional terminal that comes onto the market today is a new terminal but will only be used productively in the lottery context. Our equipment is used millions of times right out there.
adesso: Looking ahead, do you anticipate tablet solutions replacing legacy lottery terminals, especially considering changing retail trends and sustainability objectives? How do these modern solutions align with evolving legal and business landscapes?
Stücker: Absolutely. The declining importance of playslip reading and the attractiveness of alternative participation methods signal the potential demise of legacy terminals. Tablet solutions offer intuitive touchscreens, mirroring trends in retail self-checkout systems. They also align with sustainability goals by eliminating frequent material replacements. Furthermore, digital solutions exhibit agility in adapting to changing legal and business landscapes, providing a future-oriented approach to lottery operations.
Comments