Pollard’s Play: How a 17% Sales Lift Secured a Strategic Lottery Win

WINNIPEG, MB – December 01, 2025 – In the world of publicly traded companies, contract renewals are routine. But the recent Intent to Award issued by the Colorado Lottery to Pollard Banknote’s (TSX: PBL) subsidiary, Schafer Retail Solutions+ (SRS+), is far more than a simple extension. It’s a powerful validation of a technology-driven retail strategy that offers a glimpse into the future of lottery sales and a case study in how specialized expertise can secure long-term value in a competitive market.

The agreement, which begins January 1, 2026, ensures SRS+ will continue to supply the Colorado Lottery with its full suite of retail merchandising solutions. While the initial term is six months, the potential for four additional one-year renewals signals a deep-seated confidence from the Lottery—a confidence built not on promises, but on proven, data-backed performance. This move solidifies a key partnership for Pollard and highlights a crucial strategic pillar: dominating the point of sale is just as important as conquering the digital frontier.

The Digital Edge That Drove the Deal

The core of this story lies in a single, compelling statistic: a 17% increase in lottery sales. This wasn't a fluke; it was the result of a pilot program in Colorado that deployed SRS+ Digital Menu Boards in participating retail locations. For any C-suite executive or investor, a double-digit sales lift from a single initiative is the gold standard of ROI. For the Colorado Lottery, it was undeniable proof that modernizing the in-store experience directly translates to increased revenue.

This success underscores a critical shift in the lottery industry. While giants like Scientific Games and IGT offer broad, end-to-end solutions, SRS+ has carved out a defensible niche by specializing in the art and science of retail merchandising. Their digital menu boards move beyond static posters, using dynamic content to showcase climbing jackpots, feature new scratch-off games, and provide clear, engaging information to players at the crucial moment of decision. This capability allows for instant, network-wide updates, a stark advantage over the costly and slow process of printing and distributing physical materials.

"We're always looking for ways to enhance the in-store experience for players and support our retail partners," noted Tom Campbell, Sales Director for the Colorado Lottery, in the official announcement. His statement points to a core strategic priority: in an increasingly distracted consumer landscape, capturing attention at the point of sale is paramount. By proving its ability to do just that, SRS+ transformed from a simple supplier into an indispensable strategic partner, making the contract renewal a logical and financially sound decision for the Lottery.

A Key Piece in Pollard's Growth Strategy

For investors tracking Pollard Banknote, this Colorado contract is more than just a divisional win; it’s a microcosm of the company’s broader strategy for sustainable growth. Pollard has been methodically securing long-term, high-value contracts that create a stable and predictable revenue base. This latest extension in Colorado, with its multi-year renewal options, fits perfectly alongside massive recent wins, such as a 12-year, ~$375 million (US) Scratchers contract with the California Lottery and a landmark 12-year iLottery platform deal in Belgium.

The SRS+ win demonstrates the value of Pollard's diversified portfolio. While much of the market's attention is on the explosive growth of iLottery—where Pollard's NeoPollard Interactive (NPi) joint venture is a dominant force—the company is wisely refusing to neglect the retail channel, which still accounts for the vast majority of lottery sales globally. This dual focus on both physical and digital channels acts as a strategic hedge, ensuring the company can capture growth wherever it occurs.

Financially, Pollard is coming off a record year in 2024 with revenues of $557.1 million (CAD) and a 25.4% jump in Adjusted EBITDA. While Q3 2025 saw a slight revenue increase but a drop in EPS, analysts are forecasting a significant EPS rebound in 2026. Securing and extending profitable partnerships like the one in Colorado is fundamental to meeting those forecasts. The SRS+ division, by delivering measurable sales growth for its clients, becomes a powerful tool for customer retention across Pollard’s entire suite of offerings, from instant tickets to logistics. As Teresa Immel, Senior Director at SRS+, stated, the goal is to build "even greater value over time across the whole family of Pollard companies."

Fueling Prosperity Beyond the Point of Sale

The strategic importance of this partnership extends far beyond corporate balance sheets. For the Colorado Lottery, maximizing revenue is not an end in itself, but a means to a critical public mission. Since its inception in 1983, the Lottery has contributed over $4.5 billion to preserve and enhance Colorado's natural beauty, funding parks, trails, and recreation projects across the state.

From this perspective, the decision to extend the SRS+ contract is an act of fiscal stewardship. By investing in proven retail modernization that lifts sales by 17%, the Lottery is directly increasing the funds available for these vital community programs. Every additional dollar generated through an eye-catching digital display or a well-designed Play Center® contributes to a new hiking trail or a refurbished local playground.

This symbiotic relationship—where corporate innovation fuels public good—is a powerful narrative that strengthens the lottery's social license to operate. It reframes the purchase of a lottery ticket as a small contribution to a larger, shared community goal. The partnership with SRS+ is therefore not just about optimizing retail tactics; it’s about reinforcing the entire value chain that connects a player’s purchase to a tangible public benefit. The collaboration is designed to "generate more funding for programs that benefit communities across Colorado," as Lottery Sales Director Tom Campbell affirmed. This alignment of commercial and social goals creates a durable, mutually beneficial partnership that competitors would find difficult to disrupt. The focus moves from a transactional supplier relationship to a shared mission of maximizing returns for the citizens of Colorado, making the technology and expertise provided by SRS+ an integral part of the state's funding ecosystem.

Building the Omnichannel Blueprint for a New Era

The Colorado deal is emblematic of a larger trend shaping the global lottery market: the necessity of a sophisticated omnichannel strategy. While the industry buzz often centers on iLottery and mobile apps, savvy operators understand that the future is not a wholesale replacement of retail, but a seamless integration of physical and digital experiences. Pollard Banknote is positioning itself at the nexus of this evolution.

The company's investment in SRS+ and its retail innovations runs parallel to its aggressive expansion in the digital space through its NPi joint venture. This dual-pronged approach acknowledges a simple reality: players move fluidly between online and offline worlds. A player might see a jackpot advertised on a digital menu board in a convenience store, then later check their numbers on a mobile app. The brand experience must be consistent and compelling across all touchpoints.

By providing best-in-class solutions for both the retail aisle and the digital wallet, Pollard is building a comprehensive ecosystem that few competitors can match. The SRS+ contract extension is a testament to the enduring power of the retail environment, but it’s also a key component of a much larger strategic vision. It ensures that as lotteries like Colorado's "move beyond traditional retail strategies," they have a partner capable of guiding them through the complexities of modernizing their physical footprint while simultaneously building out their digital presence. This holistic approach makes Pollard Banknote not just a supplier of tickets or technology, but a central architect of the modern lottery experience.