Tri-State Commission Teleconference Meeting
January 14, 2008
Meeting Minutes:
TRI-STATE LOTTO COMMISSION
TELECONFERENCE CALL
JANUARY 14, 2008
Present: Richard Campbell, New Hampshire Lottery Commission
Thomas Scala, Vermont Lottery
Orland McPherson, Maine State Lottery
Rick Wisler, New Hampshire Lottery Commission
Alan Yandow, Vermont Lottery Commission
Dan Gwadosky, Maine State Lottery
Maura McCann, New Hampshire Lottery Commission
George Roy, New Hampshire Lottery Commission
Robert Preston, New Hampshire Lottery Commission
Mary Cassani, Vermont Lottery Commission
Rich Sperlazzi, Maine State Lottery
Lisa Rodrigue, Maine State Lottery
Karl Fortman, Scientific Games
Liz Dimmick, Scientific Games
Rose Longo-White, Griffin, York and Krause
Chris Nichols, NL Partners
John Ripley, NL Partners
Jennifer Cartmell, NL Partners
Carole Lacasse, Vermont Lottery Commission
ACCEPTANCE OF THE DECEMBER 7 AND 28, 2007 MINUTES
A motion was made by Commissioner Scala to accept the minutes as distributed. Motion was seconded and voted in the affirmative.
FINANCE COMMITTEE REPORT – Mary Cassani
Gross revenues for Tri-State through November 2007 have increased $1,816,985, or 6.73% compared to last year. Of this increase, Megabucks sales are up $783,122, or 5.96%; Daily Numbers sales are down $675,512, or 6.83%; Paycheck sales are up over Triple Play sales from last year $1,351,142, or 59.45%; the promotional Fast Play games are down $209,557, or 12.50%; and the New Year Millionaire Raffle game sold $567,800.
Total Expenses so far for FY08 are up over last year $1,162,963. This represents an increase in cost of sales of $1,015,301 and an increase in operating expenses of $147,662.
Net Profit through November 2007 increased from last year $649,199, or 6.78%.
All contingency funds are in the positive and expired unclaimed prizes are over $1.6 million as of November 30, 2007.
Discussion followed on an engagement letter with Berry, Dunn, McNeil and Parker for the FY08 audit. The price for the audit is unchanged from last year and, given the excellent working relationship with BDMP, the Finance Committee recommends the Commission approve the last available extension for audit services with Berry, Dunn, McNeil and Parker.
MOTION
A motion was made by Commissioner Scala to approve the last available one-year extension for audit services at a cost of $42,000 with Berry, Dunn, McNeil. Motion was seconded and voted in the affirmative.
The committee reviewed 13 proposals for Legal Services. The Finance Committee requested the Commission to negotiate a contract with Zalinger, Cameron and Lambek of Montpelier for legal services for Tri-State.
MOTION
A motion was made by Commissioner McPherson authorizing the Finance Committee to negotiate a contract with Zalinger, Cameron and Lambek of Montpelier for legal services for the Tri-State Lotto Commission. Motion was seconded and voted in the affirmative.
MARKETING COMMITTEE – Maura McCann
The press clip report will be distributed at next month’s meeting; however, Maura did review the packet.
DEVELOPMENT COMMITTEE – Maura McCann
The committee has conducted several teleconference meetings. Last week’s meeting discussed the Raffle game. Vermont sold 77% of their tickets, New Hampshire 65% and Maine 66%. At the committee’s last meeting they discussed what went right with the Raffle game, and what could have been done better. This will be discussed in more detail at the committee’s next meeting. The committee has discussed the possibilities of a future Raffle, but this will be discussed at the next committee meeting.
Maura reported on the Raffle drawing which was conducted at the New Hampshire Lottery January 4, 2008. The $1 million winning ticket was purchased in New Hampshire. The claim has been made and the paperwork is in the Business Office at the Vermont Lottery. The winning funds will be forwarded to the prize winner’s account. The $250,000 prizes in Maine and Vermont have been claimed.
The committee continues to work on the Fast Play product. The next game to be released is Break the Bank and is scheduled for Monday, February 18th. Also, included in that release will be the games Double Header and Fish for Cash. The committee is also looking into offering multiple games and price points for the Fast Play product. The Operations Committee is working on an SRS for multiple games. They are also looking into the ability to have a game palm card or brochure-type piece printed directly from the lottery terminal. An SRS is being worked for this as well.
Plans are to meet January 31st, the day before the next Tri-State meeting, to review the Raffle game, the Fast Play product, review information on hand for the Paycheck game and any possible changes to improve that product.
Plans are also to meet with Batelle to kick off the on-line RFP project.
DRAW COMMITTEE – Maura McCann
Maura mentioned that there are some concerns on the compressor for the Criterion Megabucks draw machine. She has called Smartplay and is awaiting word back from them. There is a backup for this machine if there really is something wrong with the Criterion. Smartplay is trying to make arrangements to get someone here before Wednesday.
It was pointed out that we do have an agreement with MUSL to conduct emergency drawings. Director Wisler suggested the Commission take a look at that agreement in light of the Commission now having its own random number generator. We have the capability to now conduct all our drawings using the RNG we now have. This would be much less time consuming than using the MUSL RNG.
OPERATIONS COMMITTEE – Rich Sperlazzi
There are two SRSs being developed: One for multiple games for Fast Play and one for the palm card with game instructions. The committee was very busy this past month dealing with the Raffle game and promoting sales.
SCIENTIFIC GAMES - Liz Dimmick
Liz would just like to reiterate that Scientific Games will continue to support Tri-State in whatever the Commission would like to do.
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
The Maine State Lottery requested a copy of the document describing compensation for Lockdown personnel. Director Wisler will forward a copy of the evaluation and pay scale.
The next Commission meeting is scheduled for February 1st at 10:30 a.m. at the New Hampshire Lottery Commission in Concord, NH.
A motion was made to adjourn at 11:30 a.m.
Richard Campbell, Chair