Scratch cards may look simple from a player's perspective, but there is a lot to consider before a ticket goes into production.
For lottery operators, a scratch card project involves much more than artwork and printing. The retail price, target market, game mechanics, prize structure, production quantity, security, validation and distribution all need to work together.
Getting those decisions right at the beginning can help operators avoid unnecessary costs and make it easier to get an accurate quotation from a scratch card printing provider.
Pierre Yau, Sales Director at ALOT Systems, shares practical advice on the key considerations operators should keep in mind when preparing a scratch card project, requesting a quotation and planning the overall production budget.
Start With the Market and Sales Plan
Before deciding on ticket quantities or artwork, operators should first establish where the game fits in the market.
Consider the intended retail price, target players, distribution channels and realistic sales forecast.
The price needs to suit local purchasing habits, while the game itself should be easy for both players and retailers to understand.
As Pierre explains:
“The price should suit local purchasing habits, while the game instructions and prize presentation should be easy for both players and retailers to understand.”
These decisions provide the starting point for the rest of the project. A scratch card needs to make sense commercially for the market it is intended to serve.
Prepare a Clear Brief for an Accurate Scratch Card Quote
One of the most important steps before approaching a printer is preparing a clear project brief.
The more information available at the quotation stage, the easier it is for a supplier to understand the scope of the project and provide an accurate price.
Pierre recommends including details such as:
Number of games and print quantity for each game
Ticket dimensions
Tickets per book
Packaging requirements
Game mechanics
Themes and artwork requirements
Language requirements
Target payout percentage
Top prize
Overall odds of winning
Security and ticket numbering requirements
Ticket activation and prize validation requirements
Delivery destination
Intended launch date
Having these details defined also makes it easier to compare different scratch card printing quotations on a like-for-like basis.
Build a Prize Structure That Works for the Market
The top prize is often one of the first things players notice, but it is only one part of the overall prize structure.
Operators should consider how frequently players win and how prizes are distributed across smaller, medium and top prize levels.
Pierre points out:
“The headline prize is only one part of the product.”
A low payout percentage can look attractive from a margin perspective, but if wins are too infrequent or the prizes are not appealing, it may be harder to encourage repeat purchases.
As Pierre explains:
“The objective is to create a rewarding player experience while leaving sufficient margin for retailer commissions, printing, logistics and operating expenses.”
Win frequency and RTP should also be considered separately. A higher-priced ticket does not necessarily need to be harder to win. The balance between frequent wins and larger prizes should reflect the intended player experience and the preferences of the market.
When reviewing a prize structure, look at both the number of winning tickets at each level and the proportion of the total prize budget allocated to that level.
Choose Scratch Card Production Quantities Carefully
Print quantity is another important consideration when preparing a scratch card project.
A larger production run can reduce the unit cost, but it also means committing more money to inventory and having more tickets to sell.
Pierre's advice is simple:
“A larger print run may reduce the unit cost, but it also commits more cash and creates more stock to sell.”
For an established game with predictable sales, a larger print run may make sense. For a new game or a new market, however, it may be more practical to start with quantities that reflect realistic sales forecasts.
It can be useful to request quotations at several production volumes and compare the unit-price savings against the additional inventory, freight and storage requirements. Operators should also consider how quickly the tickets are expected to sell and when replenishment may be needed.
Look at Repeat-Order Pricing
The initial print run is only part of the cost to consider. When requesting a scratch card printing quotation, ask for pricing on both the first production run and potential repeat orders.
Operators should also confirm what could affect the cost of future production, including:
Minimum reorder quantities
Changes to artwork
Changes to ticket specifications
Changes to prize structures
Any other factors that could affect the repeat production rate
Looking at the initial order alongside future replenishment can give operators a clearer picture of the overall production cost and help with longer-term inventory planning.
Don't Overlook Scratch Card Shelf Life
Scratch cards are physical products, so inventory planning also needs to take storage and shelf life into account.
The latex coating can harden over time, which can make tickets more difficult to scratch.
Operators should confirm the supplier's recommended shelf life and storage conditions and plan production quantities that can reasonably be sold within that period.
This is another reason why ordering the largest possible quantity is not always the best way to reduce costs.
Excess stock can increase warehousing and third-party logistics costs while tying up working capital and increasing the risk of ageing or unsold tickets.
Consider Ticket Size and Specifications Carefully
Ticket size, finishes and other special specifications can affect the production cost of a scratch card.
For a new market, it may be more practical to keep the initial range focused and make sure each ticket specification has a clear purpose.
A larger format may provide more room for gameplay or presentation, while additional finishes may help a product stand out at retail.
The important consideration is whether the additional cost serves a clear purpose for the game or the market.
Every specification should support the product rather than simply increase its production cost.
Build a Focused Scratch Card Range
A small range of scratch cards at different price points can serve different player budgets and preferences.
Each product should have a clear role, while the overall number of titles should remain manageable for retailers and stock replenishment.
Lower-priced products can use smaller ticket formats and straightforward mechanics, with an emphasis on frequent smaller wins.
Higher-priced products can offer larger formats, additional play areas and a higher RTP, with greater emphasis on mid-tier prizes while retaining an appropriate base of smaller wins.
Win frequency should be considered separately from the ticket price and RTP. Operators should look at the number of winning tickets at each prize level and how the overall prize budget is distributed.
Budget for More Than Printing
The cost of printing the tickets is only one part of the overall scratch card budget.
Operators should also consider:
Freight
Applicable import charges
Warehousing
Distribution
Retailer commissions
Marketing
System requirements
Prize funding
Replenishment
When comparing quotations, it is important to understand what is included and what is not.
The lowest price per ticket may not be the lowest overall cost once freight, storage, distribution and other operating expenses are taken into account.
As Pierre's guidance shows, the quotation needs to be considered alongside the complete production and replenishment plan.
Plan Security and Validation Before Production
The printed ticket and the management system need to work together.
Before production begins, operators should establish requirements for book and ticket identification, stock movements, ticket activation and winning-ticket validation.
These details should be agreed in advance so that the physical tickets and the systems used to manage them are aligned.
Allow Enough Time for the Scratch Card Launch
The production schedule should include more than the time required to print and ship the tickets.
Depending on the market, the project may require time for:
Game approval
Prize-table approval
Artwork checks
Production
Shipping
Regulatory approvals
Retail distribution
Retailer training
Operators should work backwards from the intended launch date and allow enough time for each stage.
Confirming these requirements early can help avoid costly last-minute changes and delays.
Questions to Ask Before Requesting a Scratch Card Printing Quote
Before approaching a supplier, operators should be prepared to discuss:
What is the intended retail price and target market?
How many games are being developed, and what quantity is expected for each?
What ticket size, format and packaging are required?
What are the game mechanics and prize structure?
What are the target payout percentage and overall odds?
What security, numbering, activation and validation requirements are needed?
What is the expected launch date and delivery destination?
What are the costs for repeat production?
What are the recommended shelf life and storage conditions?
What costs beyond printing should be included in the overall budget?
Having these answers ready gives a scratch card printing provider a much clearer picture of the project and helps make the quotation process more useful.
Choosing a Scratch Card Printing Provider
When comparing scratch card printing providers, operators should look beyond the initial price per ticket.
The provider should understand the practical requirements of the project, including ticket specifications, production quantities, security, packaging, validation and replenishment. It is also important to understand what is included in the quotation and how repeat production, storage, freight and other operational requirements may affect the overall cost.
The advice shared by Pierre Yau of ALOT Systems highlights why having a clear project brief is important when working with a scratch card production partner.
Getting Your Scratch Card Project Ready
A good scratch card project starts with a clear brief and a realistic view of the market, production requirements and overall budget.
Before requesting a quotation, operators should have enough information defined to allow suppliers to understand the scope of the project, from the game and prize structure through to ticket specifications, security, validation, delivery and launch requirements.
It is also important to look beyond the initial print run. Repeat production, freight, storage, shelf life and inventory levels can all affect the overall cost of a scratch card project.
As Pierre Yau of ALOT Systems points out, the prize structure, production plan and operational requirements all need to work together to create a product that is commercially viable while still offering an appealing player experience.
A clear brief at the beginning makes it easier to compare quotations, plan production and make informed decisions about the overall investment.
If you're planning a new lottery game or looking at options for your next project, contact Smartplay International to discuss your requirements and explore the available solutions.
