New Hampshire Lottery Commission
October 21, 2008
Meeting Minutes:
NEW HAMPSHIRE LOTTERY® COMMISSION
14 INTEGRA DRIVE, CONCORD, NEW HAMPSHIRE 03301
MINUTES OF COMMISSION MEETING
TUESDAY, OCTOBER 21, 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
Patrick
Griffin, Griffin, York & Krause, Inc.
Travis York, Griffin, York &
Krause, Inc.
Mel Woodbury, Griffin, York &
Krause, Inc.
Moe Pepin,
SGI
Liz
Dimmick, SGI
Ed Dupont,
SGI/Dupont Group
Alex
Koutroubas, Dennehy & Bouley
Mark Bodi,
Liquor Commission
Dick
Simard, Liquor Commission
Commissioner Campbell called the meeting to order at 9:40 a.m.
1. ACCEPTANCE AND SIGNING OF PREVIOUS MINUTES:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the September, 2008 commission meeting minutes. So voted, unanimous.
2. COMMISSION VOTE TO APPROVE FINAL PROPOSAL FOR SW 900, RULES OF LOTTERY INTERCEPT:
Commissioner Holloway made a motion, seconded by
Commissioner Klemm, to approve the final proposal for Sw 900, Rules of Lottery
Intercept. So voted, unanimous.
3. COMMISSION VOTE TO APPROVE INITIAL PROPOSAL FOR AMENDMENTS TO SW 3000, RULES OF NEW HAMPSHIRE POWERBALL GAME:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the initial proposal for amendments to Sw 3000, Rules of New Hampshire Powerball Game, to coincide with the Powerball game change effective in January, 2009. So voted, unanimous.
4. TRI-STATE REPORT:
Commissioner Campbell stated the Tri-State Commission held their meeting on October 3, 2008 at the New Hampshire Lottery Commission. The Finance Committee reported a 6.9% decline in overall sales year to date through August. The Tri-State Commission approved a contract with Attorney Barbara Prentis for legal services at a fee of $145.00 per hour, not to exceed $15,000. All contingency funds were reported to be in the positive, in unclaimed prizes at approximately $1.3 million. The Finance Committee reported that a review of Tri-State investments will be done, due to the banking crisis, and will be reviewed with financial experts if necessary. The Weekly Grand launch is scheduled to launch for February 1, 2009 and the New Hampshire and Vermont Lottery Commissions will run a promotion from February 1st through February 14th. The Weekly Grand rules were approved by the Tri-State Commission. The Tri-State Commission approved the price point Megabucks game change to be $2.00 to launch June, 2009. The Committee encouraged the inclusion of the Megabucks name in the new game name. The Development Committee is working on enhancements to the Pick 3/Pick 4, effective in the fall of 2009. The next Tri-State Commission meeting will be held on November 7, 2008 in Concord.
A discussion was held on lottery preparations pertaining to the processing of subscriptions and notification to subscribers regarding the upcoming January, 2009 Powerball game change. Players will have the opportunity to change their numbers through written notification by a certain time during the holidays, otherwise an easy pick will be used. Subscription forms will be available through the Lottery’s website and from the lottery terminals at retailer locations as usual. Any subscriptions for the new Powerball game will be processed in January, 2009.
5.COMMISSION ACTION TO APPROVE CONTINUED ADVERTISING SUPPORT OF THE “GRANITE STATE CHALLENGE”
PROGRAM:
Director Wisler stated he had received an
annual request for lottery funding in the amount of $17,500 in support of the
Granite State Challenge Program. Director Wisler recommended Commission approval of the request for
funding, based on increased weekly viewership ratings of the television show
over the past year up 15%; also a 57% increase of the video streaming of the
program; and supporting the program is a direct link to the lottery’s mission
to support public education. Commissioner Klemm made a motion, seconded by Commissioner Campbell, to
approve the request for continued advertising support of the Granite State
Challenge Program. Commissioner
Holloway expressed his dissatisfaction with the cost effectiveness of the
program and abstained from the vote. There was a brief discussion regarding using the lottery’s new “Over $1
billion to Education” commercial as an advertising spot tied in with the
Granite State Challenge show.
6.ADVERTISING:
Patrick Griffin of Griffin, York & Krause gave a brief discussion of the upcoming “Year of the Instant Ticket Program”. Approximately $100 million worth of non-winning lottery tickets are expected to have been replayed through the Lottery’s Replay site by mid November.
Commissioner Holloway stated he would like to revisit advertising possibilities with the Fenway Sports Group. The ad agency stated they would like to maintain a relationship with the Fenway Sports Group and to begin discussions with them about advertising choices connected with a possible Red Sox instant lottery ticket.
A presentation of the “Year of the Instant Ticket” campaign was made by Travis York of Griffin, York & Krause. The campaign will offer a series of instant ticket promotions, some tied in with Replay. Mr. York discussed the purpose behind the campaign is to generate additional interest and increase play from existing and new customers; encourage multiple plays across price points; create an emotional connection with instant games; and leverage a variety of mediums to promote instant tickets. The Replay program will provide a quantifiable measure to evaluate any increases in overall instant ticket play during the campaign. Mr. Griffin stated the emphasis will be placed on advertising the instant tickets by category preference rather than price point. Approximately 70% of lottery revenue is from instant ticket sales.
Mr. York stated four categories will be used in the Year of the Instant Ticket campaign titled Seasonal Fun, Fun & Games, Mind Games and Games of Chance. These categories will be advertised using characters and the character icons will be printed on the tickets. Mr. York stated the primary goal will be to drive sales and secondary increase player participation in the program. All instant ticket category promotions will be available on the Replay site, and Replay members will be awarded points and prize drawing entries through their participation. Mr. York reviewed the campaign’s four phases and timelines for each phase. Replay members will be able to review their Replay accounts for the total number of points entered in the different categories. Pat Griffin, stated for each Replay account, the purchase history by instant ticket category will display on a screen in the form of a traditional Bingo game titled Instant Lottery Ringo, and members will have chances to win additional points or prizes. Mr. York stated by spring, 2009, all four categories will have been launched.
7. OTHER BUSINESS:
Georges Roy, Administrator III, discussed the Lottery’s budget with the Commission and steps taken to meet the Governor’s requested state agency budget reductions. Lottery sales and profitability for the Portsmouth and Salem Lottery outlets were discussed.
A discussion was held on the Lottery’s net revenue projections for Fiscal Year 09. Mr. Roy stated analysis of the current sales trends indicate approximately $71 million as the FY09 net revenue projection, which is below budgeted projections and largely due to current economic conditions. After a brief discussion, the Commission agreed to submitting $75 million as the FY09 budgeted net revenue projection. Director Wisler indicated the Powerball game change effective in January, 2009, the launch of the new Year of the Instant Ticket campaign, the upcoming launch of the Weekly Grand, and other game enhancements will be contributing factors for possible increased projections.
Mr. Roy stated notification of the ERP launch indicates a later date than the anticipated March, 2009.
Commissioner Campbell made a motion, seconded by Commissioner Klemm, to adjourn the commission meeting at 11:20 a.m. So voted, unanimous.
An informal discussion was held between the Lottery Commission and Liquor Commission at the conclusion of the commission meeting. No Commission action was taken. The discussion concluded at 12:10 p.m.
Richard J. Campbell, Jr., Chairperson
Paul J. Holloway, Commissioner
Arthur P. Klemm, Jr., Commissioner