New Hampshire Lottery Commission
May 29, 2008
NEW HAMPSHIRE LOTTERY® COMMISSION
14 INTEGRA DRIVE, CONCORD, NEW HAMPSHIRE 03301
MINUTES OF COMMISSION MEETING
RULES PUBLIC HEARINGS
THURSDAY, MAY 29, 2008 9:30 AM
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
Rose Longo-White, Griffin, York & Krause, Inc.
Patrick Griffin, Griffin, York & Krause, Inc.
Travis York, Griffin, York & Krause, Inc.
Moe Pepin, SGI
Liz Dimmick, SGI
Doug Parker, SGI
Commissioner Campbell called the meeting to order at 9:40 a.m.
1. ACCEPTANCE AND SIGNING OF PREVIOUS MINUTES:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the April, 2008 commission meeting minutes. So voted, unanimous.
2. COMMISSION VOTE TO ADOPT SW 4000, RULES OF NEW HAMPSHIRE HOT LOTTO; SW 1000 RULES FOR ALL INSTANT LOTTERY GAMES; AND SW 6000 RULES OF SECOND CHANCE DRAWINGS:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to adopt Sw 4000, Rules of New Hampshire Hot Lotto; Sw 1000 Rules for All Instant Lottery Games; and Sw 6000 Rules of Second Chance Drawings and to comply with the JLCAR’s recommendation for the lottery to seek legislation to exempt Hot Lotto and Powerball requirements from the rulemaking provisions of RSA 541-A, to the extent those requirements are established by the Hot Lotto Game Group and the Powerball Game Group and cannot otherwise be implemented under timeframes required by RSA 541-A. So voted, unanimous.
3. TRI-STATE COMMISSION REPORT:
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Maura McCann, Programs Information Officer, stated that the Tri-State Commission was expected to vote on a replacement game for Paycheck called Tri-State Weekly Grand. Weekly Grand is a $2.00 on-line game offering a top prize of $1,000 a week for 20 years,
totaling $1,040,000. A cash option will be available. Ms. McCann stated the game’s prize structure includes other prizes ranging from $2.00 to $5,000. The new game is expected to launch in November, pending approval.
During the month of June, a Tri-State Megabucks promotion, titled “Fast $50” will be offered. Players have a random chance to win a cash prize of $50 when they purchase a single $5.00 or greater Megabucks ticket. The promotion is being funded using a portion of the expired, unclaimed prize monies.
Ms. McCann reported that a Tri-State Pick 3/Pick 4 promotion, “Double draw dollars” will run for two weeks in July. Players who purchase consecutive day and evening draws on a ticket will have a random chance to win a $25.00 cash prize.
A discussion was held relative to the Paycheck sales indicated in the Tri-State Commission report. Director Wisler provided graphs to the Commission for further clarification. Director Wisler indicated declining sales trends for Paycheck during most of the past fiscal year have resulted in a need to replace the Paycheck game.
A discussion was held on a sales per terminal comparison between the Maine Lottery and New Hampshire Lottery. Scientific Games International (SGI) will research the terminal placement and game sales of New Hampshire’s lottery terminals throughout the state and report to the Commission. Optimum placement of the terminals or possibly additional terminals will be reviewed in an effort to maximize efficiency and increase sales.
Commissioner Campbell stated the next Tri-State Commission will be held next Friday, June 6th.
Ms. McCann stated an advertising planning session for Fiscal Year 2009 would be held tomorrow with Griffin, York & Krause. Ms. McCann announced a new lottery banner had been installed on the front of the lottery building above the main entrance.
Ms. McCann updated the Commission on the results of the NH Lottery Star program. The winner was Steve Galipeau (a.k.a. Daddy G) of Lancaster, New Hampshire who won a chance to appear in future lottery television and radio commercials, as well as a recording session at a studio in Brookline, New Hampshire.
Travis York discussed the NH Lottery Star summary distributed to the Commission. Mr. York touched on the goals and objectives including to create overall lottery awareness;
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increase Replay database; provide an on-line social network and interaction; integrate
Lottery Star with Replay; and to attract new players. Approximately 65,000 individuals interacted with the Star program from mid February through mid May, averaging about 744 per day; also 69 total videos were uploaded; the largest demographic was 18-27 year olds. The Lottery Star program increased the Replay database by 9.34%, bringing in 12,693 new Replay registrants. The total Replay database at the end of Star program is 136,000.
Recommendations for future Replay promotions, as a result of the NH Lottery Star program results, were provided by the ad agency. One suggestion was expansion of the infrastructure to engage a larger audience. This may be accomplished by offering a different type of contest not quite as serious or dependent on skills, such as funniest videos or ticket designs. Another suggestion was made to offer more Replay points instead of certain Replay prizes to all interested parties, since it was determined that the point value is a major incentive. Patrick Griffin indicated an important goal is to continue to engage Replay players to turn their participation into sales. Mr. Griffin stated possibilities will be reviewed for traditional lottery mail-in promotions to also be offered through the Replay site.
Mr. York stated a Replay member survey will be conducted shortly which will provide valuable lottery player information to the Lottery. Future possibilities for Replay members to communicate with the Lottery were discussed.
5. OTHER BUSINESS:
New partnership and promotional opportunities for Replay connected with the Fenway licensing group were discussed. The Commission stated they would like this on the next agenda and to schedule the next Commission meeting for either 6/24, 6/25 or 6/26; the definite date and time for the meeting to be determined pending notification from the advertising agency.
There was a discussion about the instant ticket game, "Deal Or No Deal". Rick Wisler stated that, due to the popularity of the game currently on sale, 2 more versions of the game were ordered from Scientific Games (SGI) in March, less than 2 weeks after the current game went on sale. SGI subsequently stated that only one edition would be printed and delivered because of concerns that players might be confused between New Hampshire's version and other multi-state versions tied into the television game show that would be going on sale later this year. The license to the game concept is held by MDI, a division of SGI, and they did not finalize their ruling until a month after the lottery had ordered the game. As a result of the delay, the game would not be delivered until May 28, a week after the Lottery's requested date, resulting in a week's delay in putting the game on the market.
Doug Parker (SGI) stated that it was his understanding that there would have been no difficulties in producing another game had the Lottery ordered a rerun of exactly the same
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game; however, the Lottery had made some changes to the color and back of the ticket. He further stated that it was SGI's desire to serve NHLC in any way it could but it should be understood that the ultimate decision with Deal Or No Deal rests with the licensor, Endemol USA, and it was that company that made the ruling that the Lottery could receive only one game. Rick Wisler expressed surprise that there was a licensor other than MDI which made decisions. Robert Preston stated that he had not been informed that there would have been no delays had the Lottery simply ordered a rerun of the game, without alterations; further, he stated that the changes to the proposed games were very minor, as it was to change the background color of the ticket and add the numeral "2" to the end of the game name on the ticket back.
Commissioner Holloway stated that steps should be taken to ensure that these types of delays be avoided in the future and that future contract language be changed to allow the Lottery to order the tickets it requires.
Robert Preston displayed the proposed “Close to Home” series of instant tickets using a comical theme.
Georges Roy, Administrator III, stated the current estimated Fiscal Year 2008 net revenue is $76.5 million instead the previous projected $79.5 million. Mr. Roy noted the budget expenses were on schedule.
6. NEXT MEETING:
Commissioner Campbell made a motion, seconded by Commissioner Klemm, to schedule a Commission meeting for July 16, 2008 at 10:00 a.m. So voted, unanimous.
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to adjourn the commission meeting at 11:30 a.m. So voted, unanimous.