New Hampshire Lottery Commission
June 7, 2007
Meeting Minutes:
NEW HAMPSHIRE LOTTERY® COMMISSION
14 INTEGRA DRIVE, CONCORD, NEW HAMPSHIRE 03301
MINUTES OF COMMISSION MEETING
THURSDAY, JUNE 7, 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.
Rose Longo-White, Griffin York & Krause, Inc.
Travis York, Griffin York & Krause, Inc.
Moe Pepin, SGI
Doug Parker, SGI
Liz Dimmick, SGI
Barry Bodell, Administrative Services
Curtis Barry, The Dupont Group
Commissioner Campbell called the meeting to order at 2:00 p.m.
1. ACCEPTANCE AND SIGNING OF PREVIOUS MINUTES:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the minutes of the May, 2007 Commission meeting. So voted, unanimous.
2. COMMISSION VOTE TO ADOPT SW 500, RULES FOR PRIZE ASSIGNMENTS:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to adopt the rules for prize assignments. So voted, unanimous.
3. NATIONAL GUARD REQUEST TO SHOWCASE LOGO:
Director Wisler stated he had received a request from the New Hampshire National Guard to place their logo and contact information on the Lottery's tickets for the purpose of raising awareness of the National Guard. Director Wisler spoke highly of the National Guard and suggested to the Commission that guidelines might need to be developed prior to Commission action on requests such as this. Director Wisler stated he was not aware of other state lotteries doing this with on-line tickets, although there have been a few special
fund-raising causes allowed by legislation mentioned on instant tickets. The Commission gave positive recognition to the National Guard as a state agency in serving our state and nation. A discussion was held reviewing options for the National Guard's request including a possible informational links on the Lottery's website. The Lottery will establish guidelines for Commission review and approval at the next Commission meeting.
4. TRI-STATE REPORT:
Commissioner Campbell presented a report from the most recent Tri-State Commission meeting held in Vermont on June 1st. Commissioner Campbell stated the Tri-State Commission approved Griffin York Krause, Inc. as the New Hampshire vendor for Tri-State advertising and public relations services for Fiscal 2008. The same advertising budgets as last year's budgets were approved for Maine, New Hampshire and Vermont. A request for $200,000 for New Hampshire advertising for Fiscal Year 2007 was not approved. Commissioner Campbell reported a balance of $1.4 million in expired, unclaimed prize funds as of April 30, 2007. The Fiscal Year 07 audit is expected to be completed by July 31, 2007.
The Tri-State budget will be reviewed at least once during the fiscal year to determine the need for revised projections. Tri-State Lottery Commission will review the working financial sheets for the auditors to determine if they are in keeping with proper accounting standards. The Request for Proposal (RFP) for Tri-State legal services was discussed and the two proposals received did not meet the RFP requirements. The legal services are currently provided by the Vermont Attorney General's Office and are needed primarily for winners claim assignments and estate matters. The law mandates a $500 fee for Maine, New Hampshire and Vermont which does not cover the expense. A law change will be reviewed. Vermont will review the need for a law change.
The Tri-State Commission approved a change in the draw lockdown procedures in an out-of-balance situation from the personnel response time of 30 to 45 minutes. The RFP was issued for the random number generator to be used for the upcoming raffle game. The Development Committee will discuss further the quantity of raffle tickets that will be available for sale. The drawing balls will be replaced at the vendor's expense. The slate of Tri-State officers for Fiscal Year 08 was approved by the Commission, with New Hampshire Commissioner Campbell as the Chairperson. The next Tri-State Commission meeting will be held on July 13th at the New Hampshire Lottery Commission.
Director Wisler provided an update on the upcoming raffle game. Director Wisler reported that a Tri-State Commission discussion was held relative to the quantity of raffle tickets to be printed. The request for an increased number of raffle tickets was reviewed by Maine, New Hampshire, Vermont and Scientific Games and the projected advantages and disadvantages were evaluated. Director Wisler stated the game software has already been
approved, developed, tested, and installed and any change would require significant testing and programming changes which could result in a delay to the projected November launch.
Also, the Maine Lottery and Vermont Lottery expressed their concern about the need for software changes and their ability to sell the increased number of tickets than originally proposed, and denied the request. Director Wisler stated research of other lottery's raffle games indicated the success of the game has been largely due to building up the demand when the game is first released by selling a smaller quantity of tickets in a short period of time, and then following up with another raffle game.
A discussion was held on the difference in communication expenditures within the budget for Maine, New Hampshire and Vermont.
5. ADVERTISING "DISCUSSION OF TRI-STATE ADVERTISING BUDGET":
Patrick Griffin, of Griffin York Krause, Inc., distributed an overview of marketing plans for the period of July, 2007 through June, 2008 and a projected advertising budget for Fiscal Year 2008. A discussion was held on the Tri-State Advertising budget and allocations for media costs, promotions, and the Replay program.
Benefits of the Replay program were discussed. Travis York of Griffin York Krause stated last week almost 287,000 tickets were entered into Replay compared to the previous week's total of approximately 210,000, probably due to increased Replay advertising and the timing before the June monthly and ultimate drawings. Due to rising television advertising costs, low ratings and restricted availability for lottery spots especially during the primary, more cost effective alternatives and different advertising venues will be explored. Increased web based promotions and point of sale materials at the retailer locations were suggested. Travis York stated a proposed advertising campaign, titled the NH Lottery Star will be linked to the Lottery's website. Mr. Griffin stated the Replay program has become a valuable customer loyalty and sales tool. Approximately 65% of Replay members have chosen to opt-in to receive lottery news and game information through the replay site. The $30 instant ticket survey to Replay members went well with over 11,000 public responses received. A brief discussion was held on promotional ideas for the unclaimed prize funds.
Commissioner Campbell suggested scheduling a work session to further discuss the advertising budget, strategies and timeframes. Director Wisler suggested inviting some of the retailers to the work session to obtain input on the $30 instant ticket and commission incentive program.
6. OTHER BUSINESS:
Robert Preston, Games Manager, stated the Lucky Dog instant tickets will go on sale July 9th. A discussion was held on instant ticket price point sales' fluctuations. Georges Roy, Administrator III, stated the transfer of $7 million in the State's Monthly Revenue
Focus report breaks down to a $6.8 million net revenue lottery transfer to Education, and a $200,000 transfer from Pari-Mutuel Commission. Mr. Roy stated the Lottery was on target for a total of $79 million net revenue FY07 transfer to Education.
7. NEXT MEETING:
Commissioner Klemm made a motion, seconded by Commissioner Holloway, to schedule a Commission and staff work session and retailer forum at 1:00 p.m. on June 27th. Part of the work session will include a retailer forum. So voted, unanimous.
Commissioner Klemm made a motion, seconded by Commissioner Holloway, to adjourn the meeting and go into executive session at 3:45 p.m. No commission action was taken in the session which concluded at 4:15 p.m.