Tri-State Lotto Commission
May 2, 2008
TRI-STATE LOTTO COMMISSION
New Hampshire Lottery Commission
May 2, 2008, 10:30 a.m.
Chair Campbell called the meeting to order at 10:39 a.m.
ACCEPTANCE OF THE APRIL 4, 2008 MINUTES
A motion was made by Commissioner McPherson to accept the April 4, 2008 minutes as distributed. Motion was seconded and voted in the affirmative.
FINANCE COMMITTEE – Mary Cassani
Gross revenues for Tri-State through March 2008 have increased $3,583,815, or 6.98% compared to last year. Of this increase, Megabucks sales are up $2,009,405, or 8.32%; Daily numbers sales are down $1,206,627, or 6.66%; Paycheck sales are up over combined Triple Play and paycheck sales from last year $247,675, 4.05%; the Promotional Fast Play games are down $177,778, or 5.99% from last year.
Total expenses so far for FY2008 are up over last year $2,634,154. This represents an increase in cost of sales of $2,696,127 and a decrease in operating expenses of $61,973.
Net Profit through March 2008 increased from last year $915,236, or 5.24%.
All contingency funds are in the positive at the end of March and expired unclaimed prizes are over $1.6 million at this time.
Mary distributed a report on the 2007 Holiday Promo conducted by Maine and New Hampshire. This will be discussed IN the Marketing Committee report.
The budget for FY09 will be presented at the June commission meeting.
Commissioner Scala requested a comparison of “actual” to “budget” regarding the monthly financials.
MARKETING COMMITTEE – Maura McCann
The press clip report was distributed. There was an overwhelming theme in all three states regarding the need to increase revenue.
A Business Plan for Pick 3/Pick 4 Daily Numbers Promotions (Double Draw Dollars) scheduled for July 13 to July 26 was distributed for informational use only. The promotion will award a $25 cash prize to every nth qualifying ticket. A qualifying ticket is a ticket valid for both a day and evening concurrent drawing. That ticket may be for any number of day and evening drawings from a minimum of two to a maximum of 14 consecutive drawings. The nth ticket is to be determined by each participating state lottery.
The committee has been working on a replacement game for Paycheck. An informational sheet describing three games and a kicker option was distributed. These games will be discussed at the Focus Group research sessions that will be conducted next week in Vermont and Maine.
Mary further discussed the informational sheet she put together on the results of the 2007 Holiday Promotion on the online games. Maura spoke to the 2006 promo noting a net gain. There are always a number of variables to be considered when any promotions are conducted. Maura will put together a report on the promotions for next month or July at the latest.
Director Wisler asked if there is a way to promote products or give away products rather than dollars, i.e. give away a 20-draw, multi-draw ticket.
Director Wisler discussed the narrow “window of opportunity” to make game changes. A possible game change to another game outside of Tri-State may be put off until next year and, because of this, could delay or open an opportunity to make our changes differently. There was a discussion on how this would affect our game change schedule. If the Focus Group testing is done in time, and, if the results warrant, can we bring this to the June meeting for a decision; is that enough time to get a game implemented for October? The committee will come up with a game name, a logo and rules for the game. If Powerball comes up with their game change, SGs will work on that and then pick up where they left off on our new game.
DEVELOPMENT COMMITTEE – Maura
Information included in the Marketing Committee report.
DRAW COMMITTEE – Maura McCann
Nothing to report at this time.
OPERATIONS COMMITTEE – Rich Sperlazzi
Rich has had conversations with Darrell Frecker concerning the various game implementations.
There is a meeting Monday, May 5th, to finalize the SRS for the game palm cards.
SCIENTIFIC GAMES –Doug Parker
Liz has done a commendable job pulling everything together for the focus groups next week and for that we thank her very much.
ACCEPTANCE OF COMMITTEE REPORTS
A motion was made by Commissioner Scala to accept the committee reports as presented. Motion was seconded and voted in the affirmative.
Proposed change to Tri-State Review Process: This change is requested by the Chief Security Officer at the New Hampshire Lottery Commission. The purpose of the change is to reduce the amount of time that is spent reviewing the draw tapes. After contacting other lotteries, with the exception of one other lottery, there is no other lottery that conducts the draw reviews to the extent that Tri-State does. On a random basis, the Security Officer requests to choose drawings to review. He (she) would also review any drawings where there were jackpot winners, as well as any daily numbers drawings where there were an unusual number of winners above average. The random selection would ensure that we are also reviewing all staff that are involved with the drawings. This would still be above what most lotteries are doing and we would still ensure the integrity of the drawings.
A motion was made by Commissioner McPherson to permit the Lottery Security to subjectively review the draw tapes of all draw supervisors, their draw staff, and each type of drawing that they oversee in order to ensure that the drawings are conducted in compliance with the Tri-State Lottery Winning Number Draw Procedures and Policies Manual. At least one drawing will be reviewed each business day. Motion was seconded and voted in the affirmative.
The June commission meeting will be held the 6th of June at 9:30 a.m. at the Lake Morey Resort in Fairlee, Vermont.
A motion to adjourn was made at 11:26 a.m.
Richard J. Campbell, Chair