Tri-State Lotto Commission
August 3, 2007
Meeting Minutes:
TRI-STATE LOTTO COMMISSION
New Hampshire Lottery Commission
Concord, NH
August 3, 2007, 10:30 a.m.
Present: Richard Campbell, New Hampshire Lottery Commission
Thomas Scala, Vermont Lottery Commission
Orland McPherson, Maine State Lottery
Rick Wisler, New Hampshire Lottery Commission
Alan R. Yandow, Vermont Lottery Commission
Dan Gwadosky, Maine State Lottery
Robert Preston, New Hampshire Lottery Commission
Mary A. Cassani, Vermont Lottery Commission
Hadley Melendy, Vermont Lottery Commission
Sylvia Buzzell, Vermont Lottery Commission
Lisa Rodrigue, Maine State Lottery
Rich Sperlazzi, Maine State Lottery
Liz Dimmick, Scientific Games
Karl Fortman, Scientific Games
Moe Pepin, Scientific Games
Doug Parker, Scientific Games
Russ Leonard, NL Partners
John Ripley, NL Partners
Jen Cartmell, NL Partners
The meeting was called to order at 10:35 a.m.
ACCEPTANCE OF JULY 13, 2007 MINUTES
A motion was made to accept the minutes as distributed with an amendment to cite the amended policy changes. Motion was seconded and voted in the affirmative.
FINANCE COMMITTEE - Mary Cassani
Mary reviewed the June financial statements. Gross revenues for FY 2007 increased from last year by $4 million, a 6.16% increase. Megabucks sales were down in all three states, $1.3 million, or 3.8%. Daily Number sales were also down $377,000, or 1.56%. Paycheck sales combined with Triple Play sales were up overall almost $3 million, 49.48% increase. The add-a-play games increased sales a total of $3.7 million.
Total expenses for FY07 were up over last year $1.9 million. This represents an increase in cost of sales just over $2 million and a decrease in operating expenses of $103,000.
Net profit for 2007 increased $2.2 million, 10.81% increase.
The negative contingencies for the Paycheck guaranteed and a couple add-a-play games that had negative contingencies will be using $130,000 of expired, unclaimed money to eliminate the negative contingencies. Expired-unclaimed prizes are about $1.4 million.
The auditors are in the office now and they expect to finish up their field work this week.
MARKETING COMMITTEE - Robert Preston
The press clip report was distributed.
DEVELOPMENT COMMITTEE - Robert Preston
There were three telephone conference calls since the last commission meeting. The Raffle Rules for the New Year Millionaire Raffle were distributed. The committee recommends acceptance of the rules.
The committee pointed out the $1.4 million in expired, unclaimed prize money as approved is to be shared by each state to fund Fast Play prizes and promotions as well, if needed, to pay part of the Raffle prizes if sales do not meet expectations.
MUSL was informed that the Tri-State Commission has selected them to supply the Random Number Generator (RNG). They are currently building the equipment. The RNG will be located in the secured drawing area at the New Hampshire Lottery Commission. Once the machine is built there will be a need for an independent certification of the device.
The committee discussed Paycheck surveys to be conducted by all three states. The main questions are "why the customers like the game" and "is there anyway it could be improved upon".
Three new Fast Play games were reviewed: Money, Money, Fish for Cash and Spin to Win. A decision should be reached soon.
Lucky Numbers is scheduled to be launched August 13th. For Maine and New Hampshire the top prize is $500 and in Vermont $450. Testing has been completed in New Hampshire and should be completed in Maine and Vermont this week or the first of next week.
The Fast Play game, Winner Green, is scheduled for a November launch.
MOTION
A motion was made by Commissioner Scala to accept the New Year Millionaire Raffle rules as distributed. Motion was seconded and voted in the affirmative.
DRAW COMMITTEE - Robert Preston
The new replacement drawing balls have arrived and all seems to be fine.
OPERATIONS COMMITTEE - Rich Sperlazzi
The committee met August 1st via teleconference. There was a discussion on the system requirement specifications, a template for all games. Plans are to finalize the template within the next month or so. The committee also discussed templates for specific games. Another meeting has been scheduled for September 10th.
SCIENTIFIC GAMES - Doug Parker
SG testing for Lucky Numbers testing went very well. The RNG solution was approved and SG is working with MUSL.
ACCEPTANCE OF COMMITTEE REPORTS
A motion was made by Commissioner Scala to accept the reports as presented. Motion was seconded and voted in the affirmative.
OTHER BUSINESS
Director Wisler, representing the New Hampshire Lottery Commission, requested an amendment to last month's advertising contract to increase the amount requested to an additional $700,000. These additional funds will be used to help promote the Tri-State products. New Hampshire's total advertising request is now $1.4 million.
MOTION
A motion was made by Commissioner Campbell to increase the New Hampshire Lottery Commission advertising budget to $1.4 million to promote Tri-State products. Motion was seconded and voted in the affirmative.
Gaming System RFP: The current system expires in 2010. The RFP process should begin soon. A consultant, Batelle, was used to assist Tri-State in the RFP development and proposed evaluation process. The commission requests the Development Committee to look into possible consultants who offer the consulting services required and report back to the Commission at the September meeting.
The next commission meeting is September 7, 2007, at 9:00 a.m. at the Sebasco Resort in Sebasco Resort Estates, Maine.
A motion to adjourn was made at 11:07 a.m.