Michigan bet big on digital lottery in 2014. Here's what happened next

When Michigan launched its iLottery program in August 2014 with just nine instant games, few could have predicted what it would become. Today, the platform hosts more than 200 games, 2.2 million registered players, and a reputation that other states study and try to replicate. Joe Froehlich, Acting Commissioner of the Michigan Lottery, sat down exclusively with Lottery USA to explain how it happened and why the best may still be ahead.

The answer, Froehlich argues, starts with a simple premise:

The program has grown by giving players what they want — a complete offering of fun and innovative games that can be played from anywhere at any time.

Over 12 years, the Lottery steadily broadened its eInstant portfolio: new themes, new prize structures, seasonal promotions, licensed content. Draw-based games followed: Powerball, Mega Millions, Lotto 47, Fantasy 5, Daily 3, and Daily 4 all moved online. The result has been substantial incremental funding for Michigan's School Aid Fund, with retail sales remaining strong throughout.

That last point matters more than it might seem. The fear in many states is that digital cannibalizes retail. Michigan put that fear to rest:

We've proven that digital Lottery can complement traditional retail sales and be a reliable source of revenue.

The two channels didn't compete. They grew together.

The early bet that defined everything

Michigan was among the first states to introduce eInstant games to its iLottery portfolio. The decision, Froehlich explains, was a read of the market:

Lottery players were embracing digital entertainment, and the Lottery needed to meet players online with products designed specifically for the online experience.

Players want instant gratification. They want the chance to win big. eInstants deliver both, immediately, at every price point.

The payoff has been clear. Michigan now ranks among the leading U.S. iLottery jurisdictions in both total online Lottery sales and sales per capita. More importantly, it changed how the organization thinks about digital altogether. Froehlich emphasizes:

We don't treat online lottery as just another sales channel. We've built a dedicated digital ecosystem that has become a significant contributor to both player engagement and economic success.

That ecosystem thinking extended to how players collect their winnings. Michigan introduced a Withdraw at Retail Voucher. This feature lets players print a voucher and redeem it for cash at any participating retailer. It's a small detail that reveals a larger philosophy: digital convenience shouldn't come at the cost of familiarity. Froehlich notes: "This experience combines the speed of digital play with the familiarity and immediacy of a retail cash payout." Players get the best of both worlds. So does the retail network.

Responsible gaming: built in, not bolted on

In 2016, Michigan became the first U.S. Lottery to earn iCAP certification for responsible gaming. It's a distinction Froehlich wears carefully — not as a trophy, but as a standard.

"Responsible gaming protections were built into the program from its early stages rather than added later." From the outset, players could set deposit limits, take time-outs, self-exclude, and review their account history. Responsible gaming messaging runs throughout the online player journey, including odds, rules, and support resources.

The philosophy is deliberate:

The goal is to encourage lottery play as a form of entertainment while promoting informed, balanced participation.

Froehlich is clear-eyed about why this matters beyond ethics: "Long-term success depends on maintaining public trust." Growth and player protection, in Michigan's model, aren't in tension. They're the same objective.

A partnership built to last

Michigan's relationship with Aristocrat Interactive dates to day one in 2014. That partnership has now earned a new six-year contract starting in July 2026. Froehlich explains:

We believe deeply in a true strategic partnership. We work closely together to continuously evolve, expand our game portfolio, enhance the player experience, and uphold the highest standards for security and responsible gaming.

As the market has matured, so have the expectations. Innovation in game content, analytics, and platform performance is now table stakes.

Under the new agreement, players will see new eInstant games and draw-based game features developed by NeoGames Studio, alongside a more personalized platform experience. Froehlich confirms:

New eInstant games will remain a big part of that. Players enjoy having a steady stream of new themes, game mechanics, and prize structures to explore.

But it goes beyond content:

We also want to create more ways for players to enjoy the products they already know and trust.

The commitment is to the experience as much as to the game library, through personalization, easier account management, and continuous platform improvements.

Protecting the standard

Former Commissioner Shkreli once called Michigan's platform "the standard bearer for online Lottery programs in North America." It's high praise. Froehlich doesn't dismiss it, but he doesn't lean on it either.

"Our reputation must be earned through our actions every single day," he says plainly. The online gaming landscape keeps moving. "Our focus is on continuing to innovate while staying true to our mission."

That mission anchors everything:

Every innovation and every improvement must support our core mission of maximizing revenue for the School Aid Fund, consonant with the general welfare of the people.

It's a reminder that Michigan Lottery isn't a tech company chasing engagement metrics. It exists to fund schools.

For state lottery directors in other states just beginning to explore iLottery, Froehlich's counsel is direct: think long-term, prioritize responsible gaming from day one, and stop thinking of retail and digital as rivals.

In Michigan, we've worked to strengthen both sales channels because each plays an important role in serving players and supporting our retailer network.

And above all else:

Trust is your greatest asset. A secure platform, transparent operations, and a strong commitment to responsible play are essential to long-term success.

A memory that matters

Froehlich's time at Lottery includes roles as the Director of Compliance and Legal Affairs, Chief Operating Officer, Deputy Commissioner of Legal Affairs, and Charitable Gaming. Ask him for a favorite memory, and he immediately thinks of educators.

Each school year, the Michigan Lottery's Excellence in Education program spotlights teachers, principals, counselors, and education professionals nominated by students, parents, colleagues, and community members. Honorees are celebrated across the Michigan Lottery's website, social media, and media partners. Winners come from urban, suburban, and rural schools alike. Froehlich reflects:

It's just a really fun and heart-warming experience to honor educators who are so committed to our kids and to public education.

For a program built on funding schools, it's the perfect encapsulation of what the Michigan Lottery is actually for: the classroom. And Froehlich, for all the digital milestones on his watch, knows exactly which one matters most.