Tri-State Lotto Commision
November 9, 2007
Meeting Minutes:
TRI-STATE LOTTO COMMISSION
New Hampshire Lottery Commission
Concord, NH
November 9, 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
Rich Sperlazzi, Maine State Lottery
Maura McCann, New Hampshire Lottery Commission
Kassie Strong, New Hampshire Lottery Commission
Robert Preston, New Hampshire Lottery Commission
Mary A. Cassani, Vermont Lottery Commission
Catherine Melendy, Vermont Lottery Commission
Lisa Rodrigue, Maine State Lottery
Moe Pepin, Scientific Games
Chris Nichols, NL Partners
Rose Longo-White, Griffin, York and Krause
The meeting was called to order at 11:35 a.m.
ACCEPTANCE OF OCTOBOER 12, 2007 MINUTES
A motion was made to accept the October 12, 2007 minutes as distributed. Motion was seconded and voted in the affirmative.
FINANCE COMMITTEE - Mary Cassani
Gross revenues for Tri-State through September 2007 have increased $1,738,595, or 10.28% compared to last year. Of this increase, Megabucks sales are up in all three states a total of $1,480,891, or 18.31%; Daily Numbers sales are down $577,675, or 9.08%; Paycheck sales are up over Triple Play sales from last year $1,026,376, or 76.53%; and the Promotional Fast Play games are down $190,997, or 17.19% from last year.
Total expenses this fiscal year are up over last year $874,553. This represents an increase in cost of sales of $1,006,209 and a decrease in operating expenses of $131,656.
Net Profit through September 2007 increased from last year $869,323, or 14.45%.
The Paycheck Guaranteed Contingency Fund has recovered from its recent shortfall and is now in the positive. There has not been a jackpot winner for Paycheck since August 17th. All other contingency funds are in the positive as well. Expired unclaimed prizes are over $1.5 million September 30th.
We have received 13 bids for legal services and will review them with Director Yandow and the Finance Committee to determine who we feel will work best for Tri-State and will make a recommendation to the Commission.
MARKETING COMMITTEE - Maura McCann
The Product Development Committee met yesterday. The Raffle game was discussed; sales are lagging a bit but the committee feels sales will pick up in December. The committee did discuss opportunities to jump start the game, i.e. stronger bit map advertising on the bottom of the on-line tickets, may get the retailers involved with a suggestive sales promotion and get some stronger retailer messaging out about promoting the ticket and the sales commission on the sales of the ticket, etc.
The Paycheck game was discussed. The game is about 10 months old. Update on the recent surveys conducted on the game: Maine and Vermont had over a thousand responses and the New Hampshire Lottery surveyed customers in their sales office. Results indicate that by combining the responses, 70% play Paycheck twice a week, 85% feel the $2,500 a month is an attractive top prize, 70% remained neutral or said yes as to whether or not the other prizes are appealing and, 63% said the name of the game is good and when asked if increasing the number of draws per week would they continue to play, 70% reported they would continue to play. If the top prize was changed to $2,500/month for 25 years (a larger top prize), 66% said they would not be interested; they like the current 10 year payout. Other possible upgrades were discussed: a third drawing (Monday, Wednesday and Friday), the secondary prize of $600 could be dropped to $500, etc.
In January the committee will look into what could be done to increase Megabucks sales.
Fast Play sales were reviewed. Winner Green will be offered in New Hampshire and Vermont November 19th and Maine December 2nd. Break the Bank, with a $300 top prize, will follow Winner Green. Plans are to get a number of games downloaded into the SGI system; this will include four new games as well as the games we’ve already used. Multiple games and price points are being discussed.
Pick 3 and Pick 4 sales are down. The committee will explore ideas to help increase sales.
The RNG unit has arrived and has been set up in the Draw Room at the New Hampshire Lottery Commission. Maura will look into the system and see how it works with dry runs scheduled soon.
The RNG was discussed by the committee yesterday as to the use of the system by individual states, etc. A Tri-State Policy will be developed and brought before the commission for review and approval.
Holiday Bonus Campaign: Maine and Vermont are working on developing a cash bonus following a required purchase in their state and New Hampshire is offering a 26-draw Tri-State Megabucks subscription. The campaign is scheduled to run December 18 - 25.
On-line/Instant Consulting RFP bid results: 16 copies of the RFP were sent out, two bids were received: Batelle, Inc. and White Sands Consulting. Proposals were discussed and a decision was made to recommend Batelle, Inc. The estimated cost associated with this project is approximately $711,152, ($227,738 for Development of RFP; $84,135 for RFP writing; $399,280 for Proposal Evaluation) Acceptance Testing Costs to be determined.
MOTION
A motion was made by Commissioner Scala to select Batelle at an approximate cost of $711,152, plus Acceptance Testing Costs to be determined. Motion was seconded and voted in the affirmative.
The press clip report was distributed.
A question was raised as to whether or not the Raffle game could be included in the Holiday Promotion as one of the games eligible to win a prize or offering a Raffle ticket as a prize. Moe Pepin will look into the possibility of running such a promotion on the Raffle game and get back to the committee within a week or so.
OPERATIONS COMMITTEE - Rich Sperlazzi
The committee held a teleconference committee meeting October 16th and met with the Development Committee yesterday. Darrell Frecker has incorporated all the changes in the SRS template except for some changes from New Hampshire since they were New Hampshire specific. To accommodate the state specific changes, Darrell will develop a separate list for these requests. Darrell will make the changes and distribute the SRS template.
The idea of a Fact Sheet which could be printed off the terminal was discussed. This would be good way to introduce new products. An SRS will be developed for this idea.
SCIENTIFIC GAMES - Liz Dimmick
SG is working to get Winner Green out for November 19th for Vermont and New Hampshire and December for the Maine Lottery.
ACCEPTANCE OF COMMITTEE REPORTS
A motion was made by Commissioner McPherson to accept the reports as presented. Motion was seconded and voted in the affirmative.
OTHER BUSINESS
The next commission meeting is scheduled for Friday, December 7, 2007, at 10:30 a.m. at the New Hampshire Lottery Commission.
A motion to adjourn was made at 12:25 p.m.