Digital Transformation at "Loteria de Concepción", Chile

Beginnings of “Lotería de Concepción”

“The turning point for us was when we obtained the legislation that allowed us to operate with mechanised sales,” said Roberto Beltrán Burgos, Innovation and Development Manager of “Lotería de Concepción”, during his presentation at GAT Showcase Santo Domingo. This milestone would mark the beginning of the company's product modernisation process in 1997, which laid the foundations for its future development.

From that moment on, the company opted for an internal strategy of technological self-sufficiency, avoiding dependence on external suppliers. “We have focused on developing our own technological capabilities, which has been key to meeting the challenges of growth,” he explained. This vision allowed for significant expansion, with the number of monthly draws increasing from 30 to more than 800. “Thanks to the digitalisation and modernisation of our products, we have been able to optimise our staff and continue to improve,” Beltrán added.

How to go digital

One of the key challenges was the digitisation of lottery products. “The first important item was how we dealt with going digital,” Beltrán explained. To achieve this, they implemented a system that allows colour printing at points of sale, improving the distribution and availability of products, i.e. improving logistics. “Today, we define ourselves as a digital lottery,” he added, also mentioning the incorporation of automatic systems for lotteries throughout the country.

Integrating the physical and digital world: 5 variables

Beltrán explained that one of the great advances has been the merger between the physical and the digital. Through the “La Hora de Jugar” programme, players can participate both live and through the lottery's digital platform. This system allows physical purchasers, via a QR code, to access the game online, which was key during the pandemic.

“Our customers in the physical world asked us how they could participate in this mechanism”, he said, highlighting the importance of this solution in adapting to market changes.

The three key pillars of this evolution were product enhancement, digital integration, and the development of instant games on the platform. “Today we have around 40 games developed by us, always in the lottery area,” he concluded, emphasising the focus on attracting new generations and facing the challenge of immediacy.

New products and the Role of Artificial Intelligence

During the pandemic, Loteria de Concepción developed the Megasorteo, a 100% online product that has been a great success. ‘People participate through our platform and receive prizes directly and interactively,’ Beltrán explained, highlighting how this format has significantly increased digital revenues.

One of the key advances has been the incorporation of artificial intelligence in two areas: sales prediction and customer retention. In terms of prediction, Beltrán pointed out that ‘the model predicts results, it is not a matter of statistics, it anticipates sales’, which has allowed them to adjust their strategies in real time. In addition, they implemented a system to identify customers who are in decline, which helps prevent churn through personalised campaigns. ‘It's not just about how much the customer spends, it's about understanding their behaviour to prevent them from leaving our platform,’ he concluded.

Responsible gambling

Roberto Beltrán Burgos highlighted the implementation of a responsible gambling platform in his company, with the aim of monitoring and alerting players to behaviour that may indicate a gambling addiction. As he explained, the model is designed to ‘alert them when they are falling into behaviours that may be suspicious,’ and offer recommendations such as ‘you have played too long “ or ”your amount of money has reached a limit.’ This approach not only seeks to protect the customer, but also to reinforce the image of a ‘conscientious’ company that does not pursue only profit.

Geographical variables

As for the application of new technologies, Beltran said his team is working with mathematical engineers to develop a model that identifies geographic variables that influence physical agency sales. The goal is to focus the company's efforts on strategic points. ‘The idea is to generate hot spots where our people on the ground are focused on opening points with positive elements for our sales," he explained, citing locations near stadiums on days of major events as an example.

The power of unstructured data

Finally, Beltrán highlighted the development of a platform that allows access to unstructured data through natural language. With this model, they seek to streamline the process of market segmentation and campaigns, eliminating dependence on the technology area. ‘The idea is to make the cycle faster, more immediate," he said, comparing it to advanced technologies such as ChatGPT, but adapted to access data from their players and optimise commercial campaigns in real time.