New Hampshire Lottery Commission
April 17, 2008
Meeting Minutes:
NEW HAMPSHIRE LOTTERY® COMMISSION
14 INTEGRA DRIVE, CONCORD, NEW HAMPSHIRE 03301
MINUTES OF COMMISSION MEETING
RULES PUBLIC HEARINGS
THURSDAY, APRIL 17, 2008 9:30 AM
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
Rose Longo-White, Griffin, York & Krause, Inc.
Anders Ekman, Griffin, York & Krause, Inc.
Travis York, Griffin, York & Krause, Inc.
Moe Pepin, SGI
Liz Dimmick, SGI
Curtis Barry, The Dupont Group
Commissioner Campbell called the meeting to order at 9:30 a.m.
1. ACCEPTANCE AND SIGNING OF PREVIOUS MINUTES:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the March, 2008 commission meeting minutes. So voted, unanimous.
2. COMMISSION VOTE TO APPROVE FINAL PROPOSALS FOR 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 approve the final proposals for Sw 4000, Rules of New Hampshire Hot Lotto; Sw 1000 Rules for All Instant Lottery Games; and Sw 6000 Rules of Second Chance Drawings. So voted, unanimous.
3. COMMISSION APPROVAL OF RACETRACK FUNDING REQUESTS:
Director Wisler stated the annual requests for funding were before the Commission for their approval. Director Wisler stated the budget law requires specific annual funding in support of racing to the tracks, although it appears that the funding will end as of July 1, 2009. Rochester Fair did not request funding due to the fact that they have decided to end the harness racing at the fair. Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the funding to the racetracks as specified in the budget law, with the exception of providing the funding to Rochester Fair due to their notification. So voted, unanimous.
TRI-STATE REPORT:
Commissioner Campbell stated that a few outstanding motions made during teleconference calls were reaffirmed at the April 4th Tri-State Commission meeting. These motions were outstanding due to some Tri-State commission meeting cancellations over the winter as a result of inclement weather conditions. These motions were the funding of promotional raffle games policy #19, approved regarding the sale of raffle tickets; January 14th motion to approve the audit conducted by Barry, Dunn, McNeil; approval of $8,400 for RNG software; and approval of $1,900 for repair of Megabucks machine.
Maura McCann, Programs Information Officer, stated the Product Development Committee has received direction from the Directors regarding Tri-State game changes/enhancements. There is a two year window of opportunity that these changes must be made in. Two or three game replacements for Paycheck will be researched and following that Megabucks changes will be looked at. Ms. McCann stated Pick 3/Pick 4 enhancements will be reviewed. Maine, New Hampshire and Vermont are pursuing in-state promotions. The New Hampshire Lottery will be offering a Fast 50 promotion during the month of June, during which a single Megabucks ticket valued at $5.00 or greater may randomly generate a $50 win. $150,000 from expired, unclaimed prize monies will be given away during this promotion.
5. ADVERTISING:
Maura McCann updated the Commission on the NH Lottery Star program. The top ten have been chosen and the voting deadline for the top ten NH Lottery Star videos is midnight on April 26th. The top three of those ten will advance to the final round. To date, 2,704 votes have been cast.
Travis York, of Griffin, York, and Krause, reported on the NH Lottery Star program. Mr. York stated over 70 videos were uploaded on the site of individuals singing the Lottery’s hit song “State of Excitement”. These videos have been viewed over 80,000 times by various individuals. Mr. York stated over 10,000 new Replay registrants have resulted from the launch of the NH Lottery Star program.
Rose Longo-White of Griffin, York & Krause, described a new instant ticket campaign to help promote instant ticket sales. Ms. Longo-White highlighted the purpose behind the campaign was to be able to advertise many different instant tickets on sale along with remaining top prize information. The campaign is scheduled to launch April 28th for three weeks using 30 second radio and television spots.
Anders Ekman, of Griffin, York, and Krause, presented scripts for the lottery’s new corporate advertising message which will emphasize the lottery’s proceeds to benefit Education. Funding for this corporate spot was discussed. The Commission encouraged a quick release of this spot before the end of this fiscal year.
A brief discussion was held on possibilities for cross-promoting the instant tickets with the on-line games. Rose Longo-White presented a graphic of the proposed redesigned lottery website scheduled to launch this summer and a discussion was held on some of the changes. Funding for the revamped lottery website will be in this fiscal year. An update of advertising budget expenditures was provided by the ad agency.
6. UPDATE OF LOTTERY INITIATIVES:
Robert Preston, Games Manager, provided the Commission with an update on lottery sales representatives’ initiatives. As a result of territory changes for the sales representatives, this has allowed them to focus more time on their lottery initiatives. Mr. Preston announced statistical information on increased new accounts, additional slots for ticket displays, changes to ticket displays to promote higher price instant ticket sales, surveys of retailer’s inventory, and “Keep Em Full” contests between the representatives and retailers.
Mr. Preston stated the first quarter of the retailer bonus commission program had ended. Mr. Preston stated a total of 243 retailers either met or exceeded the 12% increase in instant ticket sales goal, for an additional 1% bonus commission for their instant ticket sales. This totaled $1.8 million in increased sales over the quarter or $85,400 in increased commissions. Mr. Preston stated 798 retailers did not meet the goal.
There was a discussion about the feasibility of changing the sales representatives’ pay structure to incorporate bonuses based on performance. Director Wisler indicated he would review other quasi-agencies and private businesses and report back to the Commission on this matter.
7. OTHER BUSINESS:
Georges Roy, Administrator III, stated the State’s Monthly Revenue Focus report revealed the March transfer to Education will be approximately $8 million. Mr. Roy announced that sales were down approximately $7.6 million, based on the FY 08 $85.7 net revenue projection. A brief discussion was held on the state’s current budget restrictions. Commissioner Holloway made a motion, seconded by Commissioner Klemm, to adjourn the commission meeting at 11:00 a.m. So voted, unanimous.
Richard J. Campbell, Jr., Chairperson
Paul J. Holloway, Commissioner
Arthur P. Klemm, Jr., Commissioner