Tri-State Lotto Commission
August 1, 2008
TRI-STATE LOTTO COMMISSION
New Hampshire Lottery Commission
August 1, 2008, 10:30 a.m.
Present: Thomas Scala, Vermont Lottery
Orland McPherson, Maine State Lottery
Richard Campbell, New Hampshire Lottery Commission
Alan Yandow, Vermont Lottery Commission
Dan Gwadosky, Maine State Lottery
Rick Wisler, New Hampshire Lottery Commission
Hadley Melendy, Vermont Lottery Commission
Rich Sperlazzi, Maine State Lottery
Lisa Rodrigue, Maine State Lottery
Denise Garland, Maine State Lottery
Maura McCann, New Hampshire Lottery
Kassie Strong, New Hampshire Lottery Commission
Chris Nichols, NL Partners
Jen Cartnell, NL Partners
Doug Parker, Scientific Games
Liz Dimmick, Scientific Games
Karl Fortman, Scientific Games
Ed Dupont, Dupont Group/Scientific Games
Alex Koutroubas, Dennehy & Bouley
Carole Lacasse, Vermont Lottery
The meeting was called to order at 10:36 p.m.
ACCEPTANCE OF THE JULY 11, 2008 MINUTES
A motion was made by Commissioner McPherson to accept the July 11, 2008 minutes as distributed. Motion was seconded and voted in the affirmative.
RATIFICATION OF ACTIONS TAKEN AT THE JULY 11, 2008 MEETING
A motion was made by Commissioner McPherson to ratification actions taken at the July 11, 2008 meeting pertaining to: 1) the allocation of $1.4 million from expired, unclaimed prizes to fund the Double Draw Dollars promotion; 2) two-year extension of the Draw Audit contract with Anderson & Cloues; 3) yearly maintenance contract with Smartplay International of $2,556; 4) revision to Policy No 3 – Standing Committees with the Tri-State Lotto Commission; and 4) Committee Appointment for FY09. Motion was seconded and voted in the affirmative.
FINANCE COMMITTEE REPORT – presented by Kassie Strong in Mary Cassani’s absence
Gross revenues for Tri-State for FY08 have increased $3,961,711, or 5.72% over FY07. Of this increase, Megabucks sales are up $2,966,685, or 9.00%; Daily Numbers sales are down $1,052,139, or 4.42%; Paycheck sales are down from the combined Triple Play and Paycheck sales from last year $547,795, or 6.26%; the Promotional Fast Play games are down $116,180, or 3.09% from last year; and the New Year Millionaire raffle contributed $2,711,140 to sales in FY08.
Total Expenses for fiscal year 2008 are up over last year $2,965,687. This represents an increase in cost of sales of $2,922,745 and an increase in operating expenses of $42,942.
Net Profit for FY08 increased from last year $894,576, or 3.84%.
Compared to budget for FY08, our sales are ahead of forecast in all three states a total of $4,151,757. Due to increased sales, cost of sales is also over budget by $2,474,432. All three states under spent their operating budgets this year by a total of $716,302. Advertising budgets were under spent a total of $632,823.
Tri-State has contingency funds totaling $3.5 million at June 30th and expired unclaimed prizes of $1.37 million.
Auditors are at the Vermont Lottery headquarters right now and should finish up the field work today. They expect to be presenting to the Commission the final audited financial statements at the September meeting.
MARKETING COMMITTEE – Maura McCann
The press clip report was distributed.
The Double Draw Dollars promo finished a week or so ago. Post promotion results were reviewed. At this time it appears the promotion reversed the trend of negative sales. Sales will be watched in the coming weeks. Indepth figures will be brought to the next meeting regarding cross-over sales.
DEVELOPMENT COMMITTEE – Hadley Melendy
The SRS for Weekly Grand has been finished and has been signed by all three states. Cancels will be allowed for this game. The Weekly Grand draft rules and bet slips both reference the allowing of cancels. Weekly Grand will be available the same time as Powerball; however, it will be launched at a later time. Staff will review the proposed changes and action will be taken at next month’s meeting regarding adoption of the rules.
The re-launch of Powerball is scheduled for January 4, 2009. Each state is working on their individual SRSs and are sharing changes with each state.
The committee has now moved on to focus on possible changes to Megabucks. A time line has been put together but has yet to be reviewed by the committee.
DRAW COMMITTEE – Maura McCann
Nothing to report at this time.
OPERATIONS COMMITTEE – Rich Sperlazzi
Little to report from this committee as the committees are working more as a group right now. The states are working on their SRSs and sharing their various Powerball concerns.
SCIENTIFIC GAMES – Doug Parker
Nothing substantial to add at this time. We are pleased that we were able to come up with a creative approach to move forward on both game changes.
ACCEPTANCE OF COMMITTEE REPORTS
A motion was made by Commissioner Campbell to accept the committee reports as presented. Motion was seconded and voted in the affirmative.
License Agreement with Texas Lottery Commission regarding Weekly Grand: The “Weekly Grand” name is owned by the Texas Lottery. The Lottery has agreed that we can use the name but we cannot trade mark the name nor the logo. Texas owns it in the state of Texas but not nationally. We are interested in entering into an agreement and use the “Weekly Grand” mark on a non-exclusive, royalty-free basis, for use in connection with our on-line game in the states of Maine, New Hampshire and Vermont for a five-year period.
A motion was made by Commissioner McPherson to approve the agreement with the Texas Lottery Commission for the use of the “Weekly Grand” mark. Motion was seconded and voted in the affirmative.
A motion was at 11:00 a.m. to break for 15 minutes. Motion seconded and voted.
The commission reconvened at 11:20 a.m.
A motion was made at 11:21 a.m. to move into an executive session for a contract discussion. Motion was seconded and voted in the affirmative.
A motion was made at 11:45 a.m. to move out of executive session. Motion was seconded and voted in the affirmative.
A motion was made by Commissioner McPherson that effective August 1, 2008 compensation for all Tri-State positions will be increased by 3%. In addition, the Tri-State Commission will contract for a compensation review in the Spring of 2009. Motion was seconded and voted in the affirmative.
The next regular commission meeting is scheduled for Friday,
September 5, 2008 at a location yet to be determined.
A motion to adjourn was made at 11:50 a.m. Motion seconded and voted in the affirmative.
Thomas Scala, Chair