New Hampshire Lottery Commission
December 13, 2007
Meeting Minutes:
NEW HAMPSHIRE LOTTERY® COMMISSION
14 INTEGRA DRIVE, CONCORD, NEW HAMPSHIRE 03301
MINUTES OF COMMISSION MEETING
THURSDAY, DECEMBER 13, 2007
PRESENT:
Richard J. Campbell, Jr., Chairperson
Paul J. Holloway, Commissioner
Arthur P. Klemm, Jr., Commissioner
Rick Wisler, Executive Director
Diane Campbell, Administrative Assistant I
Georges Roy, Administrator III
Robert Preston, Games Manager
Maura McCann, Programs Information Officer
Patrick Griffin, Griffin York & Krause, Inc.
Travis York, Griffin York & Krause, Inc.
Rose Longo-White, Griffin York & Krause, Inc.
Moe Pepin, SGI
Liz Dimmick, SGI
Douglas Parker, SGI
Barry Bodell, Administrative Services
Commissioner Campbell called the meeting to order at 1:30 p.m.
1. ACCEPTANCE AND SIGNING OF PREVIOUS MINUTES:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the October, 2007 commission meeting minutes. So voted, unanimous.
2. COMMISSION VOTE TO APPROVE THE INITIAL PROPOSAL FOR THE AMENDED INSTANT TICKET RULES, SW 1000:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the initial proposal for the amended instant ticket rules, Sw 1000. So voted, unanimous.
3. COMMISSION VOTE TO APPROVE THE INITIAL PROPOSAL FOR THE SECOND CHANCE DRAWING RULES, SW 6000:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the initial proposal for the Second Chance Drawing Rules, Sw 6000. So voted, unanimous.
4. PROPOSED SALES GOALS FOR THE RETAILER INCENTIVE PROGRAM:
Director Wisler stated a program had been developed to help incentivize retailers to increase instant ticket sales in an effort to reach the Lottery’s projected sales goals, as a result of a recent legislative change to allow the lottery to pay an additional 1% bonus. Director Wisler stated the program was ready to begin on January 1, 2008. An instant sales’ analysis was done for this fiscal year and the past calendar year and consideration of sales expectations for the coming three months. Director Wisler stated based on instant ticket sales trends for New Hampshire Lottery and other lotteries in New England, it would be a challenge to meet the lottery’s budgeted sales goals. Director Wisler stated that the proposed retailer incentive program included a 12% instant sales increase goal for retailers over the next three months. Based on a sales history over the past five months, approximately 400 retailers may be able to achieve this goal, qualifying them for the additional 1% bonus. Director Wisler made a recommendation to the Commission to approve the 12% sales increase over the next three months and the retailers who achieve this will earn a 1% bonus equaling a 6% commission on all instant ticket sales only.
Based on Director Wisler’s recommendation and expectations that approximately one-third of the total lottery retailers might meet the 12% sales increase goal, Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the proposed retailer incentive program. So voted, unanimous.
5. TRI-STATE REPORT:
Commissioner Campbell stated the Tri-State financial report through October reflected an overall Tri-State sales increase of 7.67%, with New Hampshire’s Tri-State game sales up by 6.55%. Commissioner Campbell stated the expired, unclaimed prize fund was $1.5 million as of October 31, 2007. A discussion was held relative to the use of the expired, unclaimed monies. Director Wisler stated after meeting with the Tri-State directors, and pending a positive opinion from the Vermont Lottery’s Attorney General, $500,000 of the expired unclaimed money would be used to cover direct expenses of the raffle game and outstanding prizes if sales do not cover the prizes. This would follow the same procedure used in other states for lotteries’ raffle games. Director Wisler announced that approximately 30% of the raffle tickets have been sold throughout Tri-State and approximately 27% in New Hampshire.
Commissioner Klemm expressed concern regarding hand-out advertisement of the raffle game. Maura McCann responded that player hand-outs for the game were not printed due to the limited sales period, the length of time needed to receive printed brochures, and review of raffle advertising in other states. Ms. McCann updated the Commission on the different types of advertising used for the raffle game. Ms. McCann stated the Tri-State Product Development Committee held a discussion on the possibility of printing from the lottery terminal information for players on new games that are offered for a limited period of time. Consideration of this concept was encouraged by the Commission and Scientific Games will work on terminal change. Ms. McCann commended Scientific Games on their cooperation and efforts on making terminal changes including bitmaps on tickets and responding promptly to lottery requests.
6. ADVERTISING:
Rose Longo-White, of Griffin, York & Krause, stated the jackpot alert initiative is scheduled to launch on January 7, 2008 supported by television, radio, point of sale materials, newsletters, and Replay website. Ms. McCann stated the jackpot alert initiative has been developed for Replay members to sign up to receive jackpot alerts on their cell phones or through email.
Ms. Longo-White stated the New Hampshire Star initiative is in progress and expected to launch February 19, 2008. Discussions have been held on events, advertising, negotiating sponsors for prizes, radio stations promotions and advertising. Pat Griffin stated the promotion of American Idol’s new season will coincide with the launch of the New Hampshire Star program. Ms. McCann announced that 1225 out of state residents have subscribed to the Replay program since November 1st, when the program also became available to out-of-state residents. Advertising and promotions connected with Replay for out of state residents was discussed.
A brief discussion was held on advertising plans to allow optimum use of remaining advertising dollars for this fiscal year. Robert Preston presented a sample of the upcoming $20 instant ticket, Wild 20’s.
Travis York updated the Commission on the latest statistics for Replay site activity.
7. COMMISSION VOTE ON NEW BUILDING LEASE
Georges Roy, Administrator III, updated the Commission on the state’s requirements for procuring a contract for a new 5 year building lease for the Lottery headquarters, since the current contract will expire in April, 2008. After review of proposals received by Mary Belecz, Planning and Management, of Administrative Services, the decision was that it was in the best fiscal interests of the lottery to negotiate with the current landlord and remain at the current location.
Commissioner Klemm made a motion, seconded by Commissioner Holloway, to approve the new building lease with Bert Whittemore, effective May 1, 2008 for a period of five years, pending Governor and Council approval. So voted, unanimous.
8. OTHER BUSINESS:
Georges Roy, Administrator III, distributed the KPMG audit observations for Fiscal Year 2007 and stated it was considered a non-public document at this point and lottery responses would be prepared.
Richard J. Campbell, Jr., Chairperson
Paul J. Holloway, Commissioner
Arthur P. Klemm, Jr., Commissioner