The state-run lotteries of the world are experiencing a classical dilemma. After years of success in the retailer business, the lotteries are seeing a decline in their traditional lottery products. If not declining, getting the sales is becoming more costly. Even if the sales of traditional products remains steady, the opportunity is on-line. Lotteries that are not on-line are loosing business to on-line gaming operators.
At the same time, people are moving to an on-line lifestyle. More and more is done digitally with computers, tablets and mobile smart-phones. The lotteries, with their retailer mindset find it difficult to adopt to on-line products. This is a classic example of the Resources, Values and Processes theory. This theory states that decisions taken by organizations is determined by its resources (what it has), their values (what they belief) and their processes (what they do). This explains the dilemma.
I got an opportunity to address this in iGamingBusiness magazine. The article is here: The Online Potential of Lottery Based Products.