AEG Live is getting into the lottery business.

The entertainment giant has partnered with Alchemy3—a marketing agency that specializes in creating licensed lottery tickets—on a ticket that offers one-of-a-kind experiences at some of the country’s top music festivals.

And the two companies have signed their first customer.

The Texas Lottery this month launched Texas Lottery Live!, a scratch-off ticket that offers all-expense-paid experiences at the Stagecoach, Bumbershoot and Hangout music festivals as well as concerts at the Staples Center and other venues in the L.A. Live entertainment complex.

The lottery, which offers the music experiences as second-chance prizes on non-winning tickets, will hold five drawings during the promotional period for a total of 105 winners.

Music offers broader reach than lottery tickets with pro sports teams due to competing fan loyalty and geographic marketing restrictions, said Josh Gold, senior director, AEG global partnerships, who previously sold sponsorship on behalf of the NBA Orlando Magic.

“Lotteries want to create programs that impact the entire state.”

In addition to providing broad reach, Texas Lottery Live! is designed to maintain visibilty during the summer, a period when player habits change due to vacations, school breaks and other factors.

“For many, sales tend to have a little bit of a dip during the summer. To counter that, lotteries try to put out products that are relevant to consumers, and festivals are what people do in the summer months,” said Jeffrey Schweig, Alchemy3 founder.

With a partnership with the Texas Lottery under its belt, AEG and Alchemy3 plan to offer similar tickets to other lotteries, he said.

“Texas Lottery Live! is the first of what will hopefully be the first of many lottery games across North America.”

Using Music To Draw New Gamers
The Texas Lottery is using Texas Lottery Live! to draw new gamers, with a focus on consumers in their twenties and thirties.

“We sell billions of dollars in tickets each year, but we’re always looking to make games for a younger demographic. Our playing population continues to age, and we try to make the lottery attractive to consumers who want a more immediate reward for their gaming dollar,” said Gary Grief, Texas Lottery executive director.

The lottery looks for experiential prizes that consumers cannot access on their own, he said. “AEG and Alchemy3 have done a fantastic job putting together prizes that are off the chart. It’s a wonderful opportunity for our players.”

The lottery is promoting the ticket via sponsorship of AEG music festivals and concerts under the Texas Lottery Live! Concert Series banner. Events include the Off the Rails Country Music Festival (Frisco), RiverCity Rockfest (San Antonio) and concerts by the Lumineers (Dallas), Kenny Chesney (Arlington) and Old Dominion (El Paso and Houston), with more to follow.

The sponsorships build on a portfolio that includes motorsports (Circuit of the Americas, Texas Motor Speedway), festivals (State Fair of Texas, Pasadena Strawberry Festival, etc.) and pro sports teams (Dallas Cowboys, etc.).

The lottery this summer will expand its Cowboys partnership via sponsorship of the team’s new practice facility in Frisco, Texas. The team will share the venue with the Frisco Independent School System, a partnership that matches up with the lottery’s support of public education.

Texas Lottery Live! is available at more than 17,000 retail locations.