Tri-State Lotto Commission
March 7, 2008
Thomas Scala, Vermont Lottery Commission
Orland McPherson, Maine State Lottery
Rick Wisler, New Hampshire Lottery Commission
Alan Yandow, Vermont Lottery Commission
Rich Sperlazzi, Maine State Lottery Commission
Mary Cassani, Vermont Lottery Commission
Hadley Melendy, Vermont Lottery Commission
Maura McCann, New Hampshire Lottery Commission
Robert Preston, New Hampshire Lottery Commission
Kassie Strong, New Hampshire Lottery Commission
Chris Nichols, NL Partners
John Riley, NL Partners
Jennifer Cartnell, NL Partners
Doug Parker, Scientific Games
Moe Pepin, Scientific Games
Karl Fortman, Scientific Games
Liz Dimmick, Scientific Games
The meeting was called to order at 10:30 a.m. by Vice Chair Scala.
FINANCE COMMITTEE REPORT – Mary Cassani
Mary reviewed the January 2008 financial report. Sales have increased almost $3.2 million, or 8.14% compared to last year. Megabucks sales are up 3.25%; Daily Numbers sales are down 7.40%; Paycheck sales are up over Triple Play sales from last year 42.10%; the Fast Play games are down 13.40% and the New Year Millionaire Raffle game sold $2.7 million.
Net Profit increased from last year 3.13%.
All Contingency Funds are in the positive and expired, unclaimed prizes are over $1.6 million.
There was a revised budget in the packet for Commission approval; however, this will be tabled until the next commission meeting as no action can be taken without all Commissioners in attendance. Adjustments were made to Raffle sales and prize expense for all three states to better reflect the results of the actual Raffle game.
MARKETING COMMITTEE REPORT – Maura McCann
The press clip report was distributed.
DEVELOPMENT COMMITTEE REPORT – Maura McCann
The Fast Play game, Break the Bank, has been on sale for two weeks and is selling very well.
An SRS (System Requirement Specification) is currently being worked on which will allow for an array of Fast Play games at various price points. A $2.00 price point game is being developed.
There was a discussion on the amount of time the committee spends on Fast Play enhancements and possible changes to the three core games, Megabucks, Daily Numbers and Paycheck.
A motion was made by Commissioner Scala to have the committee explore alternative price points on Fast Play games with approval needed by the Commission for implementation. Motion was seconded and voted in the affirmative. (Ratification of this motion is necessary at the next commission meeting.)
The committee has been working on possible enhancements to the Paycheck game. The $2 price point for this game appears to be acceptable to our players. The committee has looked into possibly adding additional drawings, possibly changing the prize structure to be more acceptable to the players and considered offering three plays for $5 instead of three plays for $6. As a result of yesterday’s meeting, consideration is now given to replacing the game rather than making enhancements to a mature game. The committee has asked SGI to investigate and recommend a possible similar game that may be complimentary to the current Pay Check game.
Pick 3/Pick 4: The committee has designated the month of July to conduct a promotion on the Daily Numbers games. This will be discussed in more detail at next week’s committee meeting.
Raffle: A number of different prize structures are being reviewed.
State Promotions: New Hampshire will be investigating possible promotions. Vermont is participating in the April nation-wide Powerball promotion and a Vermont-only 30 Grand Giveaway. The 30 Grand giveaway awards one thousand dollars a day (two $500 prizes) for the purchase of a $5 or more Megabucks ticket…a direct tie-in to Vermont’s 30th Anniversary. Funds would come from expired, unclaimed prizes. Maine’s promotions include $10 wins on Powerball (Powerplay on any ticket one could win $10 instantly), May 1-31 on Megabucks, a possible instant win of $50 on the purchase of a $5 Megabucks ticket. Plans are to have a minimum of 5,000 prizes for the month at an estimated cost of at least $250,000. A $10 buy-up is scheduled in June to the Powerball game with a minimum of 100 winners and possibly 125.
Director Wisler expressed his thanks to the committee for all the work that has been done.
In order to increase sales and take advantage of a relatively short window of opportunity to introduce new games or enhancements, it was suggested that the Development Committee focus their attention on Tri-State’s three core games (Megabucks, Daily Numbers and Paycheck) and develop and implement, subject to Commission approval, new games/enhancements to those games within the time frame of October 2008 through January 1, 2010. To allow time for this aggressive rollout of games/enhancements, the Product Development Committee shall:
1. No longer pursue multiple priced games or multiple games on sale at the same time for the Fast Play product line (except for the $2.00 game currently in development).
2. No longer pursue a second Raffle game unless so directed by the Commission.
DRAW COMMITTEE – Marua McCann
Nothing to report at this time.
OPERATIONS COMMITTEE – Rich Sperlazzi
The committee has gotten the SRS at the Committee level for the palm card regarding game information which will be printed off the terminals. This will be reviewed by the Development Committee first then it will be turned over to the Operations Committee.
SCIENTIFIC GAMES – Doug Parker
Nothing to report. They are looking forward to meeting next week with the lottery staffs from all three states.
ACCEPTANCE OF REPORTS
A motion was made by Commissioner McPherson to accept the committee reports as presented. Motion was seconded and voted in the affirmative.
The next commission meeting is scheduled April 4, 2008, 10:30 a.m. at the New Hampshire Lottery Commission in Concord, NH.
Thomas Scala, Vice Chair