The Official Publication of The North American Association of State & Provincial Lotteries

October 2009 / Issue 10 / Vol. 10

Welcome to Oklahoma City!

Letter from the President: Powers Awards John Musgrave Ott Brown Scholarship Welcome to Oklahoma City: Jim Scroggins NASPL ‘09 Exhibiting Vendors Lottery Insights - October 2009 - Issue 10 - Vol. 10

From The President

A Letter From The NASPL President: John Musgrave 3

Association News

Hoosier Lottery Achieves NSI Verification 4

Industry News

First Lottery Tickets Reach Arkansas Scholarship Lottery 6

Kansas, Iowa Lotteries Begin Third Edition of Popular ‘Midwest Millions’ Game 8

NASPL Subcommittee Participants Learning Intensified by Landscape 10

A Letter from Jack Boehm, Executive Director, 11

Vendor Community

Trapnell Elementary School Receives New Computer Lab Courtesy Of GTECH Printing Corporation (GPC) And GTECH Corporation 12 NASPL Staff 13 Intralot Awarded For Its International Investments David B. Gale Executive Director Scientific Games Adding New Press in Montréal Servo-Drive 14 Technology Means Faster Turnaround for Customers Thomas C. Tulloch

Director of Administration Feature Andrew White (NSI) Project Managers Need to Seek to Understand – And Have Answers

to Build Strategy Tamika Ligon Jan Kessinger, Henderson Kessinger Consulting (HKC, INC.) 16 Conference Coordinator Lottery Sales During a Recession and Beyond Margaret Mueller Ph.D., Independent Lottery Research 18 John Koenig Graphic Designer

Research Paul Corey Database Administrator Projecting Annual Sales for Jackpot Games? Practical Quantitative Methods for Lottery Game Management Janine Hutzell By Dr. Stephen Wade 24 Accounting

NASPL ‘09 - The Spirit of Adventure

Welcome to Oklahoma City! 28 Lottery Insights ISSN 1528-123X, October 2009, Volume No. Ten, Issue Ten. Published monthly by NASPL ‘09 Awards 29 NASPL (North American Association of State and Provincial Lotteries), 6 North Broadway, Geneva, The Powers Awards and Ott Brown Scholarship 30 OH 44041.

NASPL ‘09 - Exhibiting Vendors 38 © 2009 All rights reserved.

NASPL Member Lotteries 41

Upcoming Events 46 NASPL Email: [email protected] Web Site: www.naspl.org Phone - 440.466.5630 / Fax - 440.466.5649

2 Lottery Insights - October 2009 >>>>>>>>>> ach year the outgoing industry into future growth and success. While this will NASPL President has the not be an easy task, I am confi dent that current and future privilegeE of passing along a NASPL members will have both the talent and diligence to new set of challenges that the move our industry forward. incoming President is faced with turning into opportunities. In closing, I would like to thank David Gale and the NASPL Like other NASPL Presidents, Staff for the time, effort and resources they have used to I too have had the honor of support our membership this past year. I would also like to leading NASPL through this thank every member of NASPL for entrusting me with the year’s challenges, which I opportunity to serve as your President. believe have led to continued improvement for our Association.

In a diffi cult year, NASPL has worked hard to maintain our progress in several areas. With continued work on the NASPL Standards Initiative (NSI), even more lotteries and vendors are now certifi ed through the verifi cation process which will bring us closer to a standardized way of conducting business. This year, NASPL has also worked hard to adapt to a digital world by converting the Lottery Insights publication into electronic format. This new way of transferring information to our readers will hopefully provide a faster, more cost effi cient way of keeping our membership informed.

As the economic situation continues to place pressure on our John Musgrave revenue streams, our Association must evolve into a more Director, West strategic body with innovative thinking that will lead our NASPL President

Lottery Insights - October 2009 Publisher: NASPL Headquarters Editor: John Musgrave NASPL Executive Committee Members

President Treasurer Region I Director John Musgrave, Director Jeff Anderson, Director Buddy Roogow, Executive Director Maryland State Lottery

First Vice President President, Interprovincial Lotteries Region II Director Margaret R. DeFrancisco, President & CEO Jim Lightbody, VP, Lottery Gaming Tom Shaheen, Executive Director Corporation British Columbia Lottery Corporation North Carolina Education Lottery

Second Vice President Immediate Past President Region III Director Rick Wisler, Executive Director Ernie Passailaigue, Executive Director Jodie Winnett, Acting Superintendent Commission Arkansas Scholarship Lottery Illinois Lottery

Secretary Region IV Director Ed Trees, Executive Director Christopher Liu, Director Washington’s Lottery The Indiana Achieves NSI Verification

Sixth NASPL Member to Achieve Q/A Verification

he Indiana Hoosier Lottery has recently achieved the status ofT “Verified” within the NASPL Standards Initiative (NSI) under the Best Practice Quality Assurance of Product Development in the Lottery Industry: Requirements Definition.

The Quality Assurance best practice is intended to provide both lotteries and vendors with simple, documented, and approved methods for building quality into the product development and testing processes. In the long run, these practices result in greater efficiencies while reducing cost and risk. This verification provides an acknowledged set of quality “Indiana continues to benefit Indiana Fund, which is primarily assurance processes and procedures from the hard work of its Lottery used to lower motor vehicle that will permit the Indiana Hoosier employees,” said NASPL Executive excise taxes. The Indiana General Lottery and its gaming system Director David Gale. “This Assembly determines where vendor(s) to follow an approved accomplishment is a very good Hoosier Lottery net income goes and repeatable method when example of their commitment and which fund will benefit from defining, developing, and accepting to efficiency through quality Hoosier Lottery profits. software products for installation at assurance. The biggest winner the Lottery. continues to be the Hoosier www.hoosierlottery.com Lottery’s beneficiaries.”

The Hoosier Lottery began with a $6 million investment from the state in 1989, after approval of a voter referendum the previous year. That seed money was repaid with interest in less than a year. Net proceeds of the Hoosier Lottery are transferred annually to the Indiana State Treasurer, who deposits a set amount into the Indiana State Teachers’ Retirement Fund and the Police Officers’ and Firefighters’ Pension and Disability Fund. The remaining balance goes to the Build

4 Lottery Insights - October 2009 >>>>>>>>>> We see opportunity.

Today’s global economic pressures have generated incredible business challenges. In this climate, we see opportunity. Opportunity to accept, seize and manage change—to be more competitive in the entertainment industry…and to grow lottery sales from retail expansion, to implementing best practices, to new media games, to exciting new business models. We see opportunity everywhere…but more importantly, we see it for our customers. Partnering with lotteries…for good causes.

GTECH® is an advocate of socially responsible gaming. Our business solutions empower customers to develop parameters and practices, appropriate to their needs, that become the foundation of their responsible gaming programs.

RDW11774_LFLIPG.indd 1 Date: Oper: Job #: Round: 4/23/09 11:05:35 AM 4.23.09 JA RDW11774 1 Notes: GTECH-21810 VisionAd_LFLIPG First Lottery Tickets Reach Arkansas Scholarship Lottery

he ‘Arkan- sas News Bureau’T reported recently that the fi rst shipment of Arkansas Lottery tickets arrived in the state on, Ernie September 14th Passailaigue lottery offi cials announced.

A truckload of tickets arriveed at Scientifi c Games’ distribution center in Little Rock, Arkansas. Members of the state Lottery Commission broke the seal on the truck’s rear doors in a ceremony, used for scholarships for Arkansas proved using $200,000 of its startup offi cials said. college students. funds to train addiction counselors and set up a treatment network for The tickets were distributed to Lottery offi cials have also unveiled problem gamblers. 1,500 retailers across the state and the Lottery logo as the countdown went on sale just after midnight on got underway The nine-member panel approved Sept. 28, 2009. giving the money to the Depart- In other news, the Arkansas Lot- ment of Human Services to start a Net proceeds of ticket sales will be tery Commission recently ap- program to help gambling addicts. The program will refer callers to a national gambling hotline and calls for offering startup grants for ser- vices treating gambling addiction. The agency also plans to set up Gamblers Anonymous programs in cities around the state that need them.

State law requires the lottery games to fund a gambling problem program using unclaimed prizes, but lottery offi cials said they wanted to speed up the process.

6 Lottery Insights - October 2009 >>>>>>>>>>

Kansas, Iowa Lotteries Begin Third Edition of Popular ‘Midwest Millions’ Game

Joint Instant-Scratch Game Has Successful Record, Begins 2009 Sales

he popularity of the nation’s fi rst instant-scratch game soldT jointly in two states has led the Kansas and Iowa lotteries to release a third version of “Midwest Millions.”

Tickets in this year’s version of Midwest Millions have a retro- postcard design and feature dif- ferent scenes of outdoor activities and attractions in both Iowa and Kansas. Players in both states will again buy tickets in this year’s would have been able to achieve successful track game and com- on their own. record that lot- pete for prizes as teries outside part of one big Tickets in Midwest Millions cost the United States pool. $10 and the game offers instant have built by prizes ranging from $10 to $50,000. joining together “Lottery players There also will be two second- to offer scratch Terry Rich have shown they chance drawings that each will Ed Van Petten games with mil- appreciate this offer a top prize of $500,000 along lions of dollars in new generation with fi ve prizes of $10,000. The prizes. of lottery product,” overall odds of winning in the CEO Terry Rich said as Midwest game are some of the best the lot- “Midwest Millions has joined the Millions began sales recently. “By teries have offered: 1 in 2.84. list of multi-jurisdictional games working together, we’ve been able that have achieved success by to produce a game that offers a The two states are tied after Mid- offering players better chances to high percentage of prizes overall west Millions’ fi rst two years: Iowa win and larger top prizes by pool- and a signifi cant $500,000 top prize Lottery players won both $500,000 ing resources,” Van Petten said. in its second-chance drawings.” prizes in the 2007 version of the “We look forward to improving game, while play- upon our earlier successes with The idea behind the game is to ers won the $500,000 prizes in the this year’s game.” apply to another product line game’s second round. the “ concept” that has Instant-scratch games are a staple enabled states to join together in Kansas Lottery Executive Direc- of the modern lottery industry, lotto games and offer bigger prizes tor Ed Van Petten found inspira- with multiple games for sale at one and more chances to win than they tion for Midwest Millions in the time and players annually buying

8 Lottery Insights - October 2009 >>>>>>>>>> billions of dollars worth of latex-covered tickets that they scratch off to determine whether they’ve won a prize. But until Midwest Millions, instant-scratch games had been an individual product for each U.S. lottery.

Statewide sales in this year’s version of Midwest Millions began re- cently in both states. The game’s fi rst drawing will be Jan. 15, 2010 in Kansas, with the second drawing April 16, 2010 in Iowa. Entries in the second-chance drawings will be determined as a percentage of sales (e.g. if one state sells 60 percent of the tickets in the game, it will get 60 percent of the entries in the second-chance drawing).

Rich said he’s looking forward to the latest results.

“Midwest Millions has given us the opportunity to present a new twist on lottery games,” he said. “Our players have defi nitely found it intriguing and fun to play.” NASPL Subcommittee Participants Learning Intensified by Landscape

olorado Springs, the proud of the Legal, Audit, Warehouse, to all of the volunteers who made home of the U.S. Olympic I.T., Accounting, Security, PR/ this meeting possible. And a special CommitteeC and the location of the Communications, and Sales/ acknowledgement to Tara, Terri, most recent NASPL Subcommittee Marketing (Product Manager) Jay, Ken, Alysia, Audra, Deepa Meeting; where more than 250 subcommittees had a great and Jordan; your hard work was individuals from 31 lottery opportunity to hear a variety of appreciated by all! jurisdictions came together to presentations. As a part of the discuss all of the major disciplines agenda, participants from both the of a lottery organization. Sitting at lottery and vendor communities the foot of one of America’s most provided invaluable information famous landmarks, Pikes Peak, that later served as great discussion and serving as the inspiration topics within the smaller groups. for Katharine Lee Bates, author of “America the Beautiful,” Hosted by Jack Boehm, and the participants were also inspired by Colorado Lottery, every detail was the majestic landscape. planned and executed flawlessly and participants were beneficiaries Filled with a combination of of the great hospitality and small work-group meetings, to professionalism provided by Jack larger general sessions, members and his team. And a huge thanks Dear Lottery Colleagues: A Letter from Jack Boehm, Director, Colorado Lottery

Dear Lottery Colleagues, helped to make each session meaningful to attendees. I am continually amazed I want to extend a big “Thank You” to at how quickly things change in our all of you who attended the Colorado business and how passionately you all Springs NASPL Sub-committee meetings feel about your Lottery Organization this week. We had record attendance and bringing it more opportunities for and a wealth of information was shared. change. We all know that each year Much of our success was due to the things change, sometimes for the better volunteers with their attention to detail, and sometimes not to where we want to hours of planning, thoughtful gifts and go. Your support to this organization, desire to welcome you to Colorado. as demonstrated by your willingness to I received wonderful compliments share your successes and your concepts from many of you about our Lottery with us all, illustrates just how strong “concierge” staff and support for the such an organization can be for the good entire conference and wanted to share of all lotteries. some of them. I also want to thank the many attendees “You and your staff did a great and presenters from the vendor side of job with this conference, it was the aisle. They presented many new meaningful and I got a lot concepts and ideas that were fresh and forward thinking, especially in the area of new ideas out of it.” of expanding the use of the Internet and related services to reach a new “I especially want to thank generation of Lottery players. you for bringing in Tim Gard on Wednesday and his presentation The exchange of ideas, business was outstanding.” processes, game concepts, and operating procedures that were expressed has created a myriad of new ideas to many “I have not been to a better NASPL of the Lottery attendees. The Colorado subcommittee meeting in all the Lottery is extremely thankful to all of years I have been going to these you for helping us make this conference meetings.” one you can remember. I hope you had a little time left to see some of the wonderful sights around Colorado “This is a great meeting and Springs. Or, if you were just too busy conference. My congratulations to at the conference sessions, I hope that you and your staff.” you will visit us again and be inspired by the sights and sounds of Colorado. “I love how well your staff got this “America The Beautiful” is an inspiring all coordinated and how smoothly song and it was born in Colorado. things went.” See you in Oklahoma City at the Annual NASPL conference or at the next “Great idea on the neck badges and Subcommittee meeting. the folding program.” Sincerely, Each of you in attendance helped to make this conference a success. Your Jack A. Boehm, insightful questions and comments Director, Colorado Lottery Trapnell Elementary School Receives New Computer Lab Courtesy Of GTECH Printing Corporation (GPC) And GTECH Corporation

GPC, and Parent Company GTECH, Donate $15,000 in Educational Technology to Local School through the Company’s After School Advantage Program

TECH Printing Corporation, The state-of-the-art computer lab, in collaboration with its par- which was built by GPC and GTECH entG company GTECH Corporation, employees, is fully equipped with 10 unveiled a new $15,000 computer Dell flat-panel computers, a digital learning lab through the Company’s printer, and suite of educational After School Advantage program at software, accompanied by renova- Trapnell Elementary School, during tions to the room, which included an official ribbon-cutting ceremony new desks and chairs, a fresh coat of For each After School Advantage held in Plant City, Florida. The event paint, and inspirational posters. In program, GTECH donates an aver- is part of a nationwide program addition, the lab is equipped with age of $15,000 in state-of-the-art GTECH has implemented to serve Internet access, word processing computers, online technology, soft- at-risk youth in communities where capabilities, and standardized test ware, and volunteer hours. the Company has offices nationwide. practice software. Since GTECH launched the After Representatives from GTECH joined “As many have heard the words, ‘It School Advantage Program on April Florida State Representative Richard takes a village to raise a child,’ we 14, 1999, the Company has installed Glorioso, as well as representatives have been so fortunate to have busi- 130 computer centers in 23 states of the and Trapnell nesses such as GTECH as part of our and Canada: Florida, Tennessee, Elementary School, in commemorat- extended family contributing to the Texas, Oregon, Georgia, California, ing the new lab which will benefit educational success of our students,” , Ohio, Arizona, New Jer- children enrolled in the Hillsborough said Trapnell Elementary School sey, Michigan, Washington, Kansas, County school district, grades K - 5. Principal, Rhonda Pulling. Wisconsin, New York, Colorado, Missouri, Louisiana, Illinois, New “GTECH’s After School Advantage “The Florida Lottery is proud to Mexico, Virginia, Idaho, Rhode Is- program is designed to help close partner with GTECH in making land, Washington, DC, and Moncton the digital divide and open the door yet another computer lab a reality (Canada). of opportunity with the latest tech- through the After School Advantage nology for children who otherwise program,” said Florida Lottery Sec- GTECH Printing Corporation, with may not have access to computers. retary, Leo DiBenigno. “GTECH’s facilities in Lakeland and Plant City, After School Advantage aims to commitment to education initiatives is the fastest-growing, instant-game increase children’s interest and pro- in our state supports the Lottery’s manufacturing company in the ficiency in computers in a safe, fun mission of enhancing public educa- industry and is currently servicing learning environment, while provid- tion by improving learning opportu- more than 35 customers world- ing them with the necessary tools to nities for students in our schools.” wide, including the Florida Lottery. help them become more competitive GTECH Corporation is the online in school and in the future job mar- The After School Advantage pro- lottery technology and services pro- ket,” said GTECH Printing Corpora- gram allows GTECH to apply its vider to the Florida Lottery. tion President, Ross Dalton. “We technological experience, as the are thrilled to have reached so many world’s leading online lottery tech- children through this program.” nology services provider, to assist in the education of our nation’s youth.

12 Lottery Insights - October 2009 >>>>>>>>>> Intralot Awarded For Its International Investments

NTRALOT was distinguished as one of the “Trade and Investment Lead- ers”,I receiving the “Investment Lead- ers-Greek International Investments” award during an official ceremony organized by Helexpo (the biggest International Fair held in South-East Europe) and StatBank (a database for Statistics, Economy and Business) in Thessaloniki, Greece.

The award ceremony was held during the 5th Business Forum that was part of the 74th Thessaloniki International Fair on the theme: “Foreign Direct Investments. Seize the Opportunity in About INTRALOT Times of Recession”. (www.intralot.com)

The event drew the attention of the INTRALOT, a public listed company, Greek business community, as well is the leading supplier of integrated as that of South Eastern Europe and gaming and transaction processing focused on the major issue of invest- systems, innovative game content and ments. Its main objective was to ex- sports betting management, to state- change ideas and experiences on topics licensed gaming organizations world- such as World Investment Situation, wide. Its broad portfolio of products Foreign Direct Investment, Investment & services, its know-how of Lottery, for Development and Opportunities in Betting & Video Lottery operations the wider region of South-East Europe. and its leading-edge technology, give INTRALOT a competitive advantage Commenting on the award, Mr. which contributes directly to custom- Constantinos Antonopoulos, CEO of ers’ efficiency, profitability and growth. INTRALOT, stated: “INTRALOT’s With presence in more than 50 coun- distinction as one of the leading inter- tries, with 5,000 people and revenues national investors is a fitting reward of €1.1 billion for 2008, INTRALOT for our commitment to continuously has established its presence on all five expand the company’s footprint and continents. establish a long lasting presence in regions where business opportunities For more information please CON- arise. Currently, we are proud of our TACT: Ms. Persa Kartsoli, Head of presence in 50 countries all over the Corporate Affairs, Phone: +30-210 world, and of our 5,000 professionals 6156000, Fax: +30-210 6106800, email: who are working hard to guarantee [email protected]. INTRALOT’s global success”. Scientific Games Adding New Press in Montréal Servo-Drive Technology Means Faster Turnaround for Customers

t no time in history has there been a printing press in CanadaA capable of manufacturing instant lottery tickets in-line utilizing servo-drive technology.

That’s about to change.

In September, Scientific Games Products (SGP), a subsidiary of Scientific Games Corporation (Nasdaq: SGMS), commissioned a state-of-the-art Servo flexographic in-line press for installation at its facility in Montréal, Canada. Once operational, the highly advanced, integrated press technology will have the capacity to produce eight billion equivalent 2” x 4” standard unit tickets per year.

“This press can print six 4” tickets across the web and operate at a sleeve and then slots the the multiple individual sleeves along production speeds of up to 1,000 sleeve onto the cylinder, the press line can be accomplished feet per minute,” said Raymond repeating this process in minutes. By streamlining a task Goudreault, Senior Vice President, at the various stations that previously took hours as part Canadian Operations, Scientific along the press line. This of the make-ready process, faster Games Products (Canada) Inc. repeatable task has the production turnaround times can be “Running non-stop production, it net effect of varying the (and are) achieved. The benefit to has the capacity to print 52 million circumference of each customers: they receive their ticket standard ticket units a day, which cylinder, thus enabling orders quicker, and speed-to-market is nearly four times the current Scientific Games to is enhanced. maximum daily output for our accommodate virtually any Montréal facility.” size ticket a customer may Each station on the Servo press is request. modular, independently driven and The new technology has the electronically controlled by a central sophistication to manufacture an On legacy lottery printing presses, unit. Each station also registers almost infinite variety of ticket the size of the cylinder determines itself independently. Registration sizes – flexibility made possible the size of the ticket. The application is therefore constant throughout. through something called Sleeve of Sleeve Technology means ticket This unprecedented ability to hold Technology. Simple yet powerful, sizes are no longer predetermined by registration from crawl to production the technology works this way: the size of the cylinder. speed significantly reduces waste and further accelerates the make- The press operator mounts Sleeves are lightweight and thus ready process. a flexography plate onto easy to add or remove. Changing out

14 Lottery Insights - October 2009 >>>>>>>>>> The Servo’s modularity also maximizes production A mere 156 days later (May 25, 2009), a second in-line uptime because shutdown of the entire press is no press and two more sophisticated packaging lines longer required during maintenance. Press operators went live, bringing Scientific Games’ annual combined simply remove and repair the station in question, production volume in China to eight billion 2” x 4” before returning it to operation. Targeted maintenance tickets. of this nature can be done without affecting the performance of the remaining stations. Adding new Even before installation of the first press was complete, stations is also much easier to accomplish in a modular the company was busy establishing a national instant environment. lottery ticket sales system for the China Sports Lottery (CSL) to track the distribution and validation of instant Scientific Games anticipates a go-live date for its new tickets throughout the People’s Republic of China. As 20-station press before year’s end. Local production, of early September, there were approximately 160,000 manufacturing, marketing and customer service retailers in the CSL network, with additional locations support will be maintained in Quebec. being recruited every week.

Integral to the new press installation, the company is Over the past decade, Scientific Games has added also advancing two complementary initiatives at its seven new presses, including the one in Montréal. Montréal facility as part of Scientific Games’ corporate New presses came on line in 2000, 2005, 2007, 2008, sustainability program: and, again, this year. The company’s custom-built P- 6 press, dedicated in Alpharetta, Georgia, in October • The facility will now use water-based inks 2007, is one of the highest capacity lottery presses in the only, which will eliminate solvents, chemicals world. Scientific Games is also the only major producer and hazardous waste treatment and removal. of instant tickets with in-line printing capacity in Europe, a continent on which scratch-off ticket volume • A new shredder, already installed and growth potential in the decade ahead is projected to be operational, will allow for significant. the recycling of waste, instead of having to send it to a landfill for disposal. In 2008, Scientific Games produced more than 38 billion secure, high-quality instant tickets for lottery customers Says Goudreault, “Our goal going forward is to around the world. That’s a nearly 90-percent substantially reduce our waste material and, in fact, increase in output from 2005, in which the Company recycle 100-percent of all waste material we generate.” manufactured 20.3 billion.

This latest in-line printing press represents a $20 million capital investment for Scientific Games, which, in addition to Canada, now has state-of-the- art production and operations facilities in the United States, South America, Europe, Asia and Australia.

“Each location has been carefully chosen and strategically positioned to optimize service and support of our growing global base of customers,” said Jim Trask, SG Senior Vice President Printed Products Worldwide.

The Scientific Games Printed Products Group has been at the center of a whirlwind of high-profile lottery industry activity in the last year. In 2008, through a joint venture with a China-based business partner, the company established a secure state-of- the-art instant ticket manufacturing facility in Beijing. A new in-line web press, including two modern packaging lines, went live on December 20, 2008.

<<<<<<<<<< Lottery Insights - October 2009 15 Managers Need to Seek to Understand – And Have Answers to Build Strategy

Jan Kessinger, Henderson Kessinger Consulting (HKC, INC.)

he role of today’s sales manager goal” will be set a few percentage (Recognize that higher price games is not to report on reality, but to points above the forecast. generally take a bite out of profit changeT it. In fact, one lottery sales percentages, so some revenue director has embraced the theme To be truly effective, a sales increases are offset by higher “Change Reality” as the mantra goal must be set on potential payouts.) for the fiscal year. That takes sales, tempered by constraints an understanding of the current on resources and abilities. Sales Sales management must keep in situation and a strategy to change management needs to step away mind where sales increases are it. from the forecast and take an going to come from in order to hit objective look at the sales potential true sales goals. Every sales manager, whether and what it would take to achieve a director of sales, or a frontline that potential. Are your sales reps fishing where manager in the field, needs to be the fish are? an investigator, asking questions Is there potential to increase the It’s a good axiom that holds much and being a source for answers. number of people playing lottery? truth; the best chance for catching Sure, most managers know which If so, how many, and what would it fish is to fish where the fish are. sales representatives are the top cost in marketing or game changes The best chance for increasing sales performers, and which ones aren’t. to achieve the potential? If a is to put sales efforts into where They also can tell you which strategy of expanding the player sales potential is. That sounds customers are performing well, base is targeted as a way to grow simple, but it is easy to fall into the and which ones aren’t. Strategic sales, then tactics must be put into realm of the comfortable, making managers also need to understand place to attract those new players. calls instead of making sales. the “why” behind the information they receive. Is there potential to get current I believe the single greatest business players more frequently? How segment potential is with chain The effective manager in today’s much more often? If a strategy to or corporate accounts. I often see competitive business environment build sales by increasing frequency that field sales reps hold chains spends a good portion of time every is embraced, tactics and marketing at a certain distance and say they week examining sales results and support must be put in place can’t do anything because of chain investigating the cause and effect of toward that end. policy. I hear that any changes have sales efforts by the sales team. to be made at headquarters level Another strategy to increase sales and that is the responsibility of the Here are some of the areas where might be to increase the average chain rep. This is a false reality and managers need to investigate, find price per game sold. That strategy needs to be changed. answers and develop strategies in has fueled much growth for order to change reality: lotteries as the ticket price grows A field sales rep can facilitate thanks to $10, $20 and $50 games. many changes within chain Where will growth come from? Sometimes the trade off is the stores, especially by working in Too often, sales forecasts become purchase of fewer, higher priced partnership with the lottery chain/ sales goals. There is a difference. games. More often, the player is corporate sales representative. I Budgets are set on forecasts and just moved up to a higher price was working with a chain sales need to be conservative in order to level without a fall off of purchases. rep team and we were putting be able to pay budgeted expenses. If the strategy for growth is to together business reviews and sales Often, an organization will adopt grow the average price per game presentations for headquarters. the forecast/budgeted revenue sold, tactics have to be laid out and Part of that process is to look at as the sales goal. Or, an “internal put in place to make it happen. each store within the chain and

16 Lottery Insights - October 2009 >>>>>>>>>> identify the opportunities for Another store may have potential of every lottery retailer in America increasing sales performance at increasing sales $12,000 by moving today can do a better job of each one. tickets. The rep figures there is merchandising and selling lottery. a 50/50 chance of being able to (That is not to say they are doing There are two ways to get that convince that retailer to move a bad job – just to say they can do information. One is for the chain them. The value of the second store better.) The role of the lottery sales rep to visit every store in the as a sales growth prospect is 50 representative is to sell the retailer chain. A much more efficient and percent of $12,000, or $6,000. The to do more and better things to sell effective way is for each field rep rep should spend more time going and merchandise lottery. to communicate with the chain after the store with the $12,000 reps about opportunities at stores. potential rather than the store How does a manager know if The chain rep can then make a with $18,000 potential because the selling is being done on store visits? comprehensive presentation at value is greater (probability times By getting out into the field and headquarters and make changes at potential). riding with reps to observe, and by tens of stores with one call. The key visiting stores independently to see to it all, though, is hard work and What is stopping the lottery from if best merchandising practices are good communication from the field getting more business at retail? being put into place. sales team. That is fishing where Managers know what drives the fish are. sales, but lotteries often overlook Where are sales reps stalling in competition that keeps retailers the sales process? Is my sales team spending its from maximizing lottery sales. Every sales representative is energy where it gets results? A Competition is not just the different and has a different set of sales manager needs to be aware competition for the gaming dollar. selling skills. Sometimes marketing of where sales time is being spent. It is more likely the competition initiatives are met with a thud in Most lotteries work on a route for the discretionary dollar inside the field. Was it a sales problem, or system where accounts are called the store. Consider that more than a problem with the initiative? Get upon either weekly, or bi-weekly. half of instant game purchases are out and find out. Confident sales However, not all accounts hold unplanned. What stops lottery people sell more. Provide feature the same value as sales prospects. from capturing more sales? It is the and benefit information, help in Value is different from potential, battle for the impulse purchase. It overcoming objections and any help too. It is not possible to give 100 is putting the tickets in danger of to overcome whatever is stalling percent full sales efforts to every being sold. the sales process. As a manager, account on every route. There just remove obstacles to the success of is not enough time. Strategic time In several states, we use standards the sales people. management means spending time of excellence check lists of best and energy where the results will practices. Managers need to be in Understand – Provide come from. stores and assess what is stopping retailers from doing the best Strategy It is easy to be blinded by potential. practices in order to maximize the WalMart and Costco have high dollar per square foot from As I said earlier, the role of the tremendous potential. However, lottery. Then, let the selling begin! sales manager is not to report on time might be better spent working reality, but to change it. By finding on smaller accounts with a higher Is selling being done by the sales answers to the questions above, a likelihood of becoming lottery people on store visits? manager is prepared to respond, retailers. Or, on a territory level, a Lotteries invest a lot of money into lead and change reality. sales rep may have an account who having teams of people making would have a $18,000 sales increase calls on stores. To deliver value, Analyze not just sales data and if the store moved tickets onto the reps must always be changing report those results. Find out front counter. However, the rep reality at retail. One of the the “why” and create plans to figures there is about a 25 percent reasons we rolled out standards take advantage of the positives chance of convincing the store to of excellence was to provide a and lessen the impact of the make that move. The value of the blueprint for selling opportunities negatives. Reality can be changed. store as a sales growth prospect is for lottery representatives. It is a Understand the situation. Set the 25 percent of $18,000, or $4,500. clear checklist of ways that retailers course. Develop your people. can sell more lottery. Virtually Change reality.

<<<<<<<<<< Lottery Insights - October 2009 17 Lottery Sales During a Recession and Beyond

By Margaret Mueller, Ph.D., Independent Lottery Research

ur monthly National Poll has been tracking consumer confidence and buying plans for decades. We overlay specific lottery questions on the national economic data to understand the effects of the economic downturn onO Joes and Jacks. Unlike previous Lottery Insights articles, which explored the effects of increased gasoline prices on lottery spending, this month we examine what has been happening in the market when most economic indices show negative growth. For example, the chart below shows that the proportion of consumers who feel that their finances worsened during the past year rose from one in three to more than half during the past two years.

Although many lottery players have cut back during the current recession, surprisingly, most have continued playing and some have even increased their buying of lottery tickets. Understanding the consumers who have maintained or increased their play during the recession is one of the keys to lottery success today and in the future. ILR surveys conducted during June- August 2009 obtained data from more than 1,800 lottery players and 1,200 non-players. This information helps us to better understand the lottery marketplace during this time.

Among all lottery players (ever played), 8% say they

18 Lottery Insights - October 2009 >>>>>>>>>> are playing more than they did a year ago, while 31% say less and 61% say the same amount as a year ago. Those playing less outnumber those playing more four-to-one. Understanding what motivates 8% to play more provides insight into how to move more consumers into the “playing more” category.

Surprisingly, consumers playing the lottery more and those playing less have a great deal in common. Both have been hit harder than average by the recession. Seven in ten are having a harder time paying bills than last year, three-fourths are cutting back on their standard of living, and over half say they have less money than they need to live comfortably. Both groups – playing more and playing less – are 12 to 18 percentage points higher on these measures than consumers playing the lottery the same amount as a year ago.

Clearly, though, consumers playing the lottery more and those playing less have responded to economic pressure in different ways. Why? The main difference is that consumers playing more have more positive expectations about the future than those playing less. Among consumers playing the lottery more, those who believe the U.S. economy is improving exceed those who believe it is worsening by 12 percentage points (47% vs. 35%). By contrast, among consumers playing the lottery less, those who believe the U.S. economy is improving fall short of those who believe it is worsening by 9 percentage points (39% vs. 48%). There is a similar pattern in their expectations about personal finances. Those playing the lottery more are far more likely than those playing less to believe their personal finances will improve in the coming year.

Lottery marketing needs to reflect a positive, upbeat view of the economy (e.g., positive signs today, better prospects for the future) as well as reflecting the optimism that many lottery players have despite the ongoing downturn.

<<<<<<<<<< Lottery Insights - October 2009 19 What makes consumers optimistic enough to increase their lottery spending, in spite of continuing economic hardship? Largely, it is because they are younger – at a stage in life when they are likely to believe their best years are ahead. Consumers playing the lottery more than a year ago are much more likely to be under the age of 35, while consumers playing the lottery the same or less than a year ago are much more likely to be age 55 or older.

The fact that consumers increasing their lottery play tend to be younger is a reminder that lotteries need to develop the next generation of players for the long-term health of the industry. The age groups with the highest percentages of Joes (regular players) and Jacks (occasional players) are 35-49 and 50-64 years old. Consumers age 25-34 are close to those age groups in percentage of Joes (14%), but lag well behind in percentage of Jacks (46%). Consumers age 18-24 have much lower percentages of Joes (7%) and Jacks (39%).

The younger the lottery player, the more likely he or she is to be playing the lottery more than a year ago. Those playing more are 21% of ages 18-24, 14% of ages 25-34, 10% of ages 35-49, 6% of ages 50-64, and 3% of ages 65+. The percentage playing the lottery less than a year ago is relatively equal across age groups, ranging between 30% and 33%.

20 Lottery Insights - October 2009 >>>>>>>>>> For lottery marketing and game development, it is important to bear in mind how the younger generation entering the ranks of Joes and Jacks differs from older generations. The major purchases they are considering are clues to potentially attractive lottery prizes. Younger consumers are more likely to be in the market for automobiles, household appliances, furniture, and computers. Many young consumers need to obtain a vehicle and feel they cannot afford a new one. As they establish households of their own, they need to obtain major appliances and furniture.

For lottery marketing, it is vital to understand how involved the younger generation is with new media, particularly social networking websites. (This is a key part of our recent Research Camp presentations. See below for details on obtaining the presentations.) Our surveys indicate that over half of consumers ages 18-24 and 25-34 are active members of social networking sites, compared to 37% of ages 35-49, 22% of ages 50-64, and 16% of ages 65+. The differences by age group are even more pronounced for MySpace than Facebook.

<<<<<<<<<< Lottery Insights - October 2009 21 Of course, age groups also differ on demographic characteristics other than age. For example, younger consumers often have children or plan to have children, which could make paying for college an attractive lottery marketing theme for young parents as well as young adults in college today.

Another way lotteries can reach younger consumers is through gift giving by older lottery players. Most older Joes have grown children – specifically, over half of ages 50-64 and three-fourths of ages 65+.

IMPLICATIONS & RECOMMENDATIONS

One of the oldest clichés in the book is that every problem creates an opportunity. A drastic recession, affecting all lottery states and leading to downturns in lottery sales, is also attracting younger adults to play the lottery. While older players, affected by a multitude of economic worries are cutting back, optimists of all ages are surging forward in lottery buying decisions. Our repeated mantra of continuing to satisfy Joes while marketing more aggressively to Jacks is even truer during a recession than in good economic times. Aligning prizes to what younger people are buying seems an obvious way to maintain and increase sales.

22 Lottery Insights - October 2009 >>>>>>>>>> It is important to realize that as the industry’s core audience ages – much like the horse racing industry over the last forty years – our core sales are threatened. This realization should be a key factor in game and marketing planning. Understanding that the recession is affecting a major percentage of existing playership, while at the same time causing a new consumer group to evaluate our games and maybe even play them for the fi rst time, must be immediately refl ected in all we do.

ILR will be in Oklahoma City for NASPL 09. We hope you get a chance to attend our presentation, Lottery Player Perceptions and Buying Habits, on Thursday, October 8 at 2 p.m. and meet our staff during the conference. Please give us feedback on our columns and newsletters and especially your ideas for questions on our National Poll. To obtain a copy of Research Camp 2009 presentations, please visit our website at www.ilresearch.com/camp or call Jessica Ellington at 312-321-8117.

Besides being younger, consumers playing the lottery more include a relatively large percentage of immigrants. One in six (17%) were born outside of the U.S., more than double the rate seen among other lottery players. The high incidence of immigrants among consumers increasingly playing the lottery presents both marketing challenges and opportunities.

<<<<<<<<<< Lottery Insights - October 2009 23 Projecting Annual Sales for Jackpot Games?

Practical Quantitative Methods for Lottery Game Management

By Dr. Stephen Wade

Summary: This article explains how some statistical methods developed for science and engineering can be applied to projecting future sales and profi t from a jackpot draw game. As an illustration, I discuss how an accurate model of the daily sales of a jackpot game can be combined with a draw game coverage function to project annual rates of sales and profi 1t .

e all know that big drawW games like Lotto have years when they produce more in the way of Dr. Stephen sales, profi ts, and Wade excitement, and years when they produce less. We may understand individual years as departures from a typical or average year. To a large degree these departures are due to the “luck of the draw” and are outside our control. For purposes of setting next year’s budget, we engineering) to draw game sales and profi ts of jackpot might prefer to use a sales number management. Applying these draw games. that represents a typical year. methods has: Earlier articles (Lottery Insights We might be able to use the average • enhanced our ability to ref1 and ref2 ) used the example of of several past years’ results for this recognize changes in Washington Lottery’s Hit 5 game (a purpose, but this backward-looking draw game sales due to cash Lotto) in illustrating the use of approach is not very helpful in advertising, promotions, a quantitative model for automating times of change. We may know cannibalization by new the jackpot setting process and for that players are playing differently games, and the like, recognizing changes in sales due now than they did fi ve years ago. If to advertising and introduction of so, we would prefer to project next • allowed us to automate new games. This article completes year’s results based on how players the projection of the “roll” the series by showing how the same are behaving now. amount in draw games quantitative model that provides an whose roll depends on accurate daily forecast of sales can Washington’s Lottery has benefi ted sales, and be combined with a coverage model by applying particular statistical to yield a projection of the game’s methods (originally developed • increased our confi dence sales and profi t over a typical year. for applications in science and in projecting year-to-year

24 Lottery Insights - October 2009 >>>>>>>>>> Key concepts are: of draws, the lower is we define the increase in cashpot the likelihood that the above its starting level as the • Analysis of game sales in corresponding event will difference between the starting a past period allows us actually occur in a typical cashpot and the last cashpot. This to develop a quantitative year. is the definition that works best model of sales during for the purpose of projecting the that period. Typically, the • Summing the projected next jackpot roll, as discussed day of the week and the sales and likely prize in an earlier article (LI ref2 ). size of the jackpot are key cost of a year’s worth of Although other ways of defining factors in this model. When events, starting with the the model might work equally that model is applied to a most likely and proceeding well, we simplify our draw game current or future period, to less likely, yields the management by having a single it produces a projection of expected sales and prize quantitative model that serves all sales on a day-by-day basis. cost for the game in a purposes. The days can be rolled up “typical” year. into draws. Once we have a “day model” for each day of the week, we can • The likelihood that a The Sales Model predict sales on any day for which Lottery drawing will select we know the values of the relevant a number combination After some preliminary study, we independent variables (last cashpot that corresponds to a sold settled on a Hit 5 model that uses size and so forth). Sales for the ticket can be calculated seven distinct “day models”. Each draw accumulate until the draw by a coverage function. day model is a linear equation that day. Coverage is determined by predicts Hit 5 sales on a particular the odds of winning the top day of the week. On each day, prize and the number of there is an expected level of sales Coverage and Jackpot tickets that have been sold. when the Hit 5 cashpot is at its Development starting value ($100 thousand). Any • By using a sales model increase of the Hit 5 cashpot above On each draw day, there are two to project the number its starting value increases sales. possible outcomes. If there is of tickets sold in a We find that the response of sales no top prize winner, lower-tier draw, then feeding that to increases in the cashpot is not winners are paid and the jackpot number of tickets into the the same each day of the week. We to be won at the next draw is coverage function, we can also find that the size of the jackpot announced. The amount of the estimate the likelihood in other games (, for next jackpot is determined by a that this draw will select instance) can influence Hit 5 sales. calculation that takes into account a winner. A likely prize the sales expected in the next few cost, representing both We use multiple regression analysis days. Since in Washington we have lower-tier prizes and a to define both the expected level automated this calculation, we can probability-weighted of sales on a given day of the week easily include it in our forecast of jackpot cost, can be when the cashpot is at its starting jackpot growth over any number calculated at each step. value, and the precise way sales of draws. On the other hand if the change in response to increasing jackpot is won, the cash required to • The draw-by-draw cashpot and any other measurable pay it is set aside, lower-tier prizes development of sales, influences. Multiple regression are paid, and the jackpot reverts to jackpot, and likely prize analysis is conceptually somewhat its starting value. cost can be calculated in a complex, and defining it is beyond stepwise way, representing the scope of this outline. Applying In our model, we are concerned not unbroken jackpot growth it is simpler: it is available in any only with the likely sales in each from the first draw to one of several specialized statistical draw but also with the cost of each any number of draws. software packages for personal draw. The likely cost of the draw The larger the number computers2. In building the model, is the sum of just two terms: the

<<<<<<<<<< Lottery Insights - October 2009 25 cost of paying only lower-tier prizes weighted by the account for 156 draws in a year. likelihood of that happening, plus the cost of paying both the jackpot and the lower-tier prize weighted by The number of wins expected over a year’s time at the likelihood of that happening. The likelihood of each stage of drawing is just the number of drawings paying the top prize, of course, is given by the coverage occurring in a year at each stage, multiplied by the function. The true cost of a draw will sometimes be coverage at that stage. In Hit 5, the top prize is won on low and sometimes high, but over the long run it will the first draw about 19% of the time. be close to the calculated likely cost. This excerpt provides a detailed picture of the expected These calculations are implemented in a spreadsheet frequency of jackpot wins of different sizes, and the in which each successive draw is represented by a row. total number of jackpots. Further calculations (not The following excerpt shows the most relevant items. represented here) calculate annual sales and annual The coverage function shows the likelihood of a top prize expanse from the number of draws at each level. prize winner on the particular draw. The “likelihood of getting this far” is the probability that each draw up As the following table shows, this model developed in to this one will find no winner. As this excerpt shows, FY2007 predicted actual results in FY2008 with a useful a Hit 5 jackpot has only an 11% chance of growing for level of accuracy. (SEE CHART 2 ON NEXT PAGE) more than 7 draws, and only a 1% chance of growing for more than 12 draws. (SEE CHART 1 BELOW) In an earlier article (LI ref1), I described how

Draw Estimated Jackpot Coverage Likelihood Draw Draw Yearly Wins / 52 number sales in (get this Distribution Proportion Total wk Draw far) draws @ level 1 $ 127,330 $ 100,000 19.64% 100.000% 100.000 0.25800 40.247 7.905 2 $ 146,586 $ 140,000 22.25% 80.357% 80.358 0.20732 32.342 7.197 3 $ 221,015 $ 200,000 31.56% 62.476% 62.476 0.16119 25.145 7.936 4 $ 148,092 $ 240,000 22.45% 42.759% 42.759 0.11032 17.210 3.864 5 $ 183,708 $ 290,000 27.04% 33.158% 33.159 0.08555 13.345 3.609 6 $ 266,628 $ 360,000 36.70% 24.191% 24.191 0.06241 9.736 3.573 7 $ 181,312 $ 400,000 26.74% 15.314% 15.314 0.03951 6.163 1.648 8 $ 226,132 $ 450,000 32.16% 11.218% 11.218 0.02894 4.515 1.452 9 $ 315,282 $ 510,000 41.74% 7.611% 7.611 0.01964 3.063 1.279 10 $ 212,456 $ 550,000 30.55% 4.433% 4.434 0.01144 1.784 0.545 11 $ 265,906 $ 600,000 36.62% 3.079% 3.079 0.00794 1.239 0.454 12 $ 360,896 $ 670,000 46.11% 1.951% 1.952 0.00504 0.786 0.362 13 $ 245,676 $ 720,000 34.39% 1.051% 1.052 0.00271 0.423 0.423

387.604 1.00000 156.000 40.247

The “draw distribution” column simply restates these advertising during March 2008 apparently caused likelihoods as a count of events. The next columns actual sales to exceed the model prediction by about expresses the proportion of all draws that would be $0.72 million. This leaves less than $2 million of actual expected to occur at each level, and further the number sales performance in FY2008 unaccounted for. of draws (out of 156 draws per year) that would be expected at each level. The typical behavior of the game Of course, this close correspondence may be partly in a year is described by just the rows necessary to fortuitous. The model described here does not provide

26 Lottery Insights - October 2009 >>>>>>>>>> Sales Prize Expense Number of Prizes Percent Hit 5 ($ million) ($ million) Wins of Sales

Model (typical year) $27.22 $15.79 40 58%

FY ‘08 Actual $29.80 $16.68 41 56%

any information about expected year-to-year variability development of jackpots, to project sales, prize expense, in results. Models that estimate year-to-year variability and the number and size of top-prize wins for a are a topic beyond the scope of this article. “typical” year.

Anticipating Effects of Change

In building our Excel application, we foresaw that FOOTNOTES there would be a need for making adjustments to the 1. This illustration draws on the work of many people. model. Consequently, we provided a way of adjusting Although it uses examples from WA Lottery, several each element in the reference table that represents the lotteries may use similar methods. Thanks to my day models with a “forcing coefficient”. The forcing predecessors at WA Lottery, including Todd Baumann, coefficients were all initially set equal to one. We and to Eric Swenson of the WA Economic and Revenue can model the effects of increases and decreases in Forecast Council for significant elements of the model sales (even on particular days) by setting the forcing used in WA for forecasting typical yearly results. coefficients to values greater than or less than one. 2. We use SPSS (www.spss.com). Another suitable We modeled the effects of introducing a new draw platform is SAS (www.sas.com). game that would cannibalize sales of Hit 5. Research led us to expect that introduction of Match 4, a game unique to Washington, would cannibalize Hit 5 sales by up to 20%. We also felt that Match 4 would provide a strategic diversification of our draw game portfolio. We decided to introduce Match 4 partly because modeling allowed us to project the effects on Hit 5 wins per year, average jackpot size, and gross profit. With this information, we were better able to judge whether the strategic diversification justified the adverse impact to Hit 5.

In fact when Washington introduced its Match 4 game on August 3, 2008, we recognized cannibalization of Hit 5 sales immediately. Over several months this has amounted to about 15% of Hit 5 sales. We have implemented adjustments to our Hit 5 model to maintain the game at target profitability, as described in Lottery Insights (ref2). The model instantly produced corresponding estimates for sales, profits, and number of wins per year.

In summary, Washington’s Lottery has applied quantitative modeling techniques in several places to better manage its in-state Lotto games. We use a model that accurately forecasts day-to-day sales, in combination with a coverage model to project the

<<<<<<<<<< Lottery Insights - October 2009 27 Welcome to Oklahoma City!

n behalf of the Oklahoma Education Lottery Board of Trustees and the entire Lottery staff, Oplease let me be the fi rst to welcome you to Oklahoma City and the NASPL 2009 Conference and Trade Show.

We are particularly proud of the educational program for this year’s conference. We have some great keynote speakers and breakout sessions that will provide every attendee a valuable educational experience. We are sure that each of you will leave the conference with several new ideas and concepts that you can apply to your individual lottery.

The NASPL staff, our committee chairs and volunteers have done an excellent job in preparing for the conference and we know that you will be pleased with their efforts all the way from your arrival in Oklahoma City through and including the Friday night banquet. We have spared no effort in making your visit a fun and exciting one.

While you are here in Oklahoma City be sure to check out some of our local attractions. The Memorial to those that lost their life during the Oklahoma City bombing is just a few short blocks from your hotel and something that every visitor should make a point to visit. In addition we have the Art Institute, Myriad Gardens and of course historic Bricktown with its beautiful canal walk all an equally short walk from your hotel.

Friday night’s banquet as usual will be a special event and I know you will not want to miss it. This is the 25th Anniversary of the Batchy Awards and you won’t want to miss this year’s additions to the previous great winners.

We look forward to seeing you in Oklahoma City. Jim Scroggins Executive Director Commission

The Oklahoma Lottery Commission Staff

28 Lottery Insights - October 2009 >>>>>>>>>> NASPL 09 Awards Rick Wisler, NASPL Awards Committee Chair, Executive Director, New Hampshire Lottery Corp.

very year at the NASPL An- Powers Awards The Hickey Awards are named in nual Conference, a portion of honor of the late Owen Hickey, an conferenceE time is designated for he Powers industry leader who served as the presenting the Powers Awards, Awards are director of the Colorado Lottery, Batchy Awards, Hickey Awards and presentedT in deputy in Arizona and marketing di- Delegates Awards. Below are brief recognition of rector for the Pennsylvania Lottery. descriptions of these awards. lottery and ven- Although Hickey was responsible dor employees for many endeavors, he probably is Batchy Awards who have made most remembered for the creative signifi cant contri- development of promotion and he Batchy Ed Powers butions to their public relations techniques for the Awards are lotteries by vir- lottery industry. presentedT to tue of exceptional job performance. NASPL members These Awards are named in honor Delegates Awards for outstand- of the late Edward J. Powers, the ing advertising “Father of U.S. Lotteries.” This year, Finally, the Delegate Awards are achievements. the Powers Awards winners will be presented for the best point-of-sale Batchy entrants presented at the Opening Ceremony materials specifi cally designed for Ralph Batch are judged in Awards on Wednesday, October 7. limited use as a product promotion, several different a special promotion or educational areas, including radio, television, Ed Powers was appointed to head program, and promotional-premium print and special categories, such as the New Hampshire Sweepstakes item. These awards will also be pre- retailer and player newsletters and Commission, the fi rst modern-era sented at the Awards Banquet Friday web site home page. The Batchy U.S. lottery, in 1963 and spent more evening, October 9th. Print and Radio Awards will be than 25 years in the lottery industry, presented on Wednesday, October helping to set the standards that The Delegate Awards are named for 7th, during the Opening Ceremo- have become a trademark for today’s the manner in which winners are nies. The Batchy Television Awards lotteries. He proved to government selected. The selection process is ac- will be presented at the fi nal Awards offi cials, the media and the public complished by a majority vote by all Banquet on Friday evening, October that a lottery can be operated suc- registered delegates in attendance at 9th. cessfully with integrity. He was one the NASPL ‘09 Conference. of the three co-founders of NASPL The Batchy Awards are named in and in the early 1970s served as its Presently serving with me on the honor of the late NASPL Charter president. NASPL Awards Committee for the Member Ralph Batch. In 1970, Batch 2008-2009 term is David Loeb, Presi- was named the fi rst director of the Hickey Awards dent of the Western Canada Lottery . He also served Corporation, Tom Shaheen, Execu- as director of the Illinois and Dela- he Hickey tive Director of the North Carolina ware Lotteries. Batch became the Awards are Education Lottery, and Rose Hud- fi rst president of our organization in theT traditional son, President of the Louisiana Lot- 1971. During the implementation of NASPL awards tery Corporation. the New Jersey Lottery, Batch was for excellence charged to explore known sources in promotional On behalf of the Awards Committee, for lottery data that might assist in events. These I would like to thank member lot- lottery operations. It was through awards also will teries for submitting entries for the his efforts that the advantages of the Owen Hickey be presented Powers, Batchy, Hickey and Delegate exchange of information and joint at the Opening Awards. It promises to be an exciting ventures between lotteries were fi rst Ceremony Awards on Wednesday, and successful awards program, and recognized. October 7. I look forward to seeing you all in Oklahoma City.

<<<<<<<<<< Lottery Insights - October 2009 29 The Powers Awards and Ott Brown Scholarship

t’s the time of year again when NASPL and its member lottery organizations honor individual achievement with the presentation of the prestigious Powers Awards and Ott Brown Scholarship. The award winners will be pre- sentedI during the NASPL ‘09 Opening Ceremony Awards in Oklahoma City, OK on Wednesday, October 7th.

Powers Award Nominations were accepted for lottery employees, as well as on- and off-line vendor employees, in the areas of sales, marketing, operations, administration and public relations/communications.

Ott Brown NASPL Scholarship applicants must be from the lottery industry and have served in a formal, profes- sional capacity for at least two years. In order to be considered, individuals had to apply to the NASPL Scholar- ship Review Committee.

Each individual nominated for the awards deserves our congratulations and recognition for his/her outstanding commitment and dedication to the lottery industry.

And this year’s nominees are...

negotiates licensing opportunities scored at the ten minute mark of the that keep our products in front of second period. The fans went wild existing and potential players. and so did the media. The lottery received over a million dollars in Arnell doesn’t see the barriers he “free” publicity throughout the state faces in his position as obstacles, and across the nation. but rather opportunities. He is, in the truest sense of the word, a Arnell played a key role in recruit- communicator. His versatility and ing the Lottery’s designated expe- Paul Arnell ability to see what’s coming next - riential marketing fi rm, which has Director of Promotions while maintaining focus on present widely expanded potential-player Illinois Lottery objectives - have placed him at the audiences. Through development forefront of his profession. of emerging-market campaigns - such as the incredibly popular ver the past fi ve years, Paul As one of the Lottery’s stron- Rock Paper Scissors Tournament - Arnell has been dedicated to ger negotiators (nicknamed “the Arnell has made the Illinois Lottery enhancingO numerous areas of the grinder”), Arnell continues to secure relevant to new players by bringing Illinois Lottery’s marketing division extremely favorable sponsorship our products to them where they with strategic insight, precise execu- rates, including ongoing partner- work and play. And the payoff has tion and charming wit. ships with the Chicago Cubs, been huge. We don’t typically judge White Sox, Bulls and Blackhawks. the sole success of an experiential As the director of promotions, he No one would have ever guessed marketing campaign by the sales continues to dazzle his colleagues that the “Million Dollar Minute” it generates, but we have over $5.4 with exciting promotional/expe- promotion Arnell created with the Million worth of reasons to cheer riential campaign opportunities Chicago Blackhawks would have about this program. and marketing sponsorships that worked so well. During only the generate Lottery buzz around the third home game of the 2009 season, By negotiating key sponsorships state. He also oversees new media a randomly selected Hawks fan and securing licensing, Arnell has endeavors, manages cross-promo- won $1,000,000 compliments of the made tremendous efforts to ensure tional corporate partnerships and Illinois Lottery, when a goal was the Lottery’s continued success. In

30 Lottery Insights - October 2009 >>>>>>>>>> addition to his big vision, Arnell how an increase in media exposure Barden recognized the demand and has a gift for expertly addressing was negotiated without increasing opportunity to provide an addition- details. Well loved and respected the advertising budget for fi scal al revenue stream by offering the by all who he works with, Arnell year 2008-2009. use of transmission services through has kept the lottery top of mind a dedicated fi ber connection located with partners and consumers alike. • Increased the number of weekly at the South Carolina Education Arnell has the ability to see projects radio traffi c reads by 400 annu- Lottery’s draw studio. One major through from concept to reality. ally, saving $30,000. network has used the studio for na- Through the evolution of each tional broadcasting purposes. Fees game, event and program Arnell • Increased the total Target Rating for using the studio offset SCEL’s oversees, he adds tremendous value Points (TRPs) in TV by 15,600 to operating expenses, thus increasing to organization. 54,266. net profi ts.

• Added one TV station and two cable systems to the annual buy.

• Increased weekly cable frequen- cy by 20 percent, while at the same time reducing the cost by 20 percent.

• Spent the exact same amount as last year for TV/Cable com- Charles “Chuck” Conzo David Barden bined, yet added TRPs and Regional Sales Manager fl ight weeks in all broadcast Director, Marketing and Product Illinois Lottery Development markets. South Carolina Education Lottery • Increased fl ight weeks to 52 harles Conzo brings a wealth weeks, doubling viewership for of knowledge to the lottery. He avid Barden, Director of SCEL’s TV/Cable advertising. readilyC shares his experience across Marketing and Product De- departments. He has been through velopmentD has been nominated • Converted spot lengths from with the Lottery during boom times for his hard work, dedication and 30’s to 15’s to double the num- and also when sales have cooled. He continuous efforts in successfully ber of games advertised. understands sales cycles and knows seeking added value opportunities what works and what does not. to market the Lottery products. His • Increased online presence initiatives have allowed the Lottery through banner advertising Conzo also brings management to maximize dollars turned over to with television stations, provid- experience to the Lottery sales team. the state. ing SCEL with added-value He is in one of the centrally located exposure. areas of the state, and he helps other In the period from May 1, 2008 Regional managers understand their through April 30, 2009, the Market- • Saved $20,271 over last year roles and how to get the best out of ing and Product Development De- with In-Venue Sports Media, their sales teams. partment operated under a budget providing $784,625 in media that had not changed since June value for a $416,029 actual fund of 2005. However, under Barden’s commitment. leadership, SCEL received hundreds of thousands of dollars in “extra • Received $75,125 in additional value” due to a series of “smart” de- media value through event cisions and initiatives. These extra marketing. value benefi ts can be clearly docu- mented. Despite the Commission’s • Negotiated additional media very conservative approach to weight mid-year due to the budgeting marketing dollars, economic downturn, ultimately Sarah Cummins Barden increased lottery exposure giving SCEL a 25 percent Director of Marketing on TV, radio and other media, both increase in frequency, totaling Illinois Lottery traditional and non-traditional. Ev- $1,666,119 in added value. ery “smart” dollar spent translated ne of the reasons why the into more dollars for education. The In addition to increasing advertis- Illinois Lottery continues to following are just a few examples of ing exposure with a limited budget, flO ourish is due to the leadership of

<<<<<<<<<< Lottery Insights - October 2009 31 Sarah Cummins. When our former drive results. Since joining the businesses and organizations. She Superintendent passed away, Sarah KLC team 11 years ago, she has is very well respected and seen as a had to wear many different hats in shown instinctual skill and ability proactive, cohesive, engaging and order to keep the agency moving in designing promotions and strategic partner to folks like the strong. events that are meaningful for University of Kentucky, University an increasingly discriminating of Louisville, the She maneuvers between depart- player base. Letting players spin a (AAA) team, the Lexington ments lending her expertise when- wheel for a chance to win a T-shirt Thoroughbreds (AA) baseball team, ever needed. She has continually was once considered a successful and the Kentucky Derby Festival. shown a keen ability to understand promotion – nowadays it takes The most recent new sponsorship market segments and how to reach a coordinated effort of extreme relationship Frakes forged was a range of players - and those who creativity, direct mail and online with the have not previously played the lot- resources, ad support and exciting Team, the Bowling Green Hot Rods tery. event execution to bring home a who opened a new stadium in promotion that keeps our players 2009 in which Frakes negotiated Cummins also has a direct affect on excited about our products and is an extensive sponsorship program the Lottery’s creative output. Her cost-effective at the same time. including prominent signage within keen awareness of our market al- the stadium. lows her to understand what works Frakes is the primary driver best for attracting new customers of consumer relationships and Frakes has also worked hard while also making sure our tradi- outreach activities throughout to develop a grassroots events tional players are kept excited about the Commonwealth. In many schedule which not only maintains our games. She makes this happen respects, she is the key factor in player awareness throughout the in a very diverse state - one with a building ongoing relationships state but also builds relationships strong urban center that responds with KLC players through positive with our players in their home to a certain type of marketing and experiences and is often the voice of environment. The amazing thing advertising and a very rural in the the KLC on a one-on-one basis with is how Frakes has done this in a rest of the state which responds to a them. She accomplishes this through highly effi cient and cost-effective completely different pitch. tools such as loyalty programs manner. Even though during supported by direct mail and online the FY’08 Event Season (April Cummins also goes above and be- resources, grassroots marketing – October) gas prices were high and yond what is expected. She extends during events and fairs, community the outlook on the economy was herself beyond her responsibilities and lifestyle involvement through dismal, sales were up an incredible in order to fi ll the needs of the Lot- carefully chosen sponsorships, and 36 percent ($226,600) under Frakes tery while maintaining an extremely promotional experiences which help leadership. These numbers don’t positive attitude. She also continues add value to our products. include our key event of the year, to work with staff members on their the Kentucky State Fair. This individual development. Given the broad reach of these event, which draws an audience of programs and the multi-faceted 650,000 over an eleven-day run and nature of these parameters, Frakes generates sales close to $400,000. excels at each level. Her efforts to Due to her leadership, the state fair develop and execute programs provides a great opportunity to affects virtually every other KLC renew friendships with our regular department and requires seamless players as many count a visit to our cooperation for effi cient execution. promotional area as a highlight of She has overseen signifi cant growth their yearly pilgrimage to this event. in acceptance of our direct mail program which reaches more Frakes is one of the most dedicated than 90,000 loyal players. Frake’s and committed members of work in making these efforts more our team. As a result, she has Edie Frakes appealing to players has led to an successfully assumed increasing Manager, Promotions & Consumer average redemption rate in FY ’09 of roles of responsibility throughout Relationship Marketing 15.6 percent for the six direct mail her career here to her current Corporation programs executed, a phenomenal position as Promotions and representation of the perceived Consumer Relationship Marketing die Frakes is a tremendous added value to our players. Manager. Frakes is also the rare mix asset to the Sales and Marketing of a creative thinker and proactive Team.E She is a team player who She has been a great champion leader who is rarely seen without a can be counted on to get things for the KLC by developing strong smile on her face and a kind word done, think out of the box and relationships with Kentucky for our other employees.

3226 LotteryLottery Insights - October 2009 >>>>>>>>>> The most sweeping change from a player standpoint was the introduction of free tickets as prizes for Kentucky’s scratch-off tickets which she led. This had never been done in Kentucky, or by any North American lottery several years after the introduction of instant tickets. Obviously, doing so carried huge Rhonda Goodwin risks as scratch-offs had consistently Mike Helppie led sales growth for several years. Scratch-Off Product Manager Deputy Director, Sales Kentucky Lottery Corporation Scratch-Off sales for FY’08 were $486.4 million which was 6.2 Idaho Lottery percent over the prior year. ince joining Kentucky Lottery Corporation (KLC) shortly The challenge was formidable, ike Helppie has been one of afterS start-up 20 years ago Rhonda as the legislative mandate was the most resilient members Goodwin has proven herself as issued just weeks before the start ofM the Idaho Lottery management a valuable leader and signifi cant of the fi scal year. It required a team for many years. He started contributor to the organization. She complete, extensive and exhaustive out as a fi eld rep with the start-up can be counted on to deliver sales re-working of our instant ticket of the Idaho Lottery, was promoted with a sound, aligned strategy and program. Goodwin was at the to Deputy Director of Sales in 1997, innovative games year after year. forefront of this challenge, working and assumed responsibility for with us as dozens of scratch-off marketing and advertising in 2001 Goodwin is seen as a industry game working papers had to be in addition to his duties for sales leader and has delivered amazing changed, as game styles and prize management. In 2008, he resumed results since becoming the scratch- pools were dramatically altered, and full-time sales management when off product line manager in 2000. as press times for printing tickets the Director hired a full-time She has nearly doubled scratch-off had to be constantly switched and Deputy Director of Marketing. sales in those nine years from $261.5 juggled. The KLC ended up making million in sales in FY’00 to nearly a $50 million reduction in cash Helppie has participated in as a $506 million in FY’09. prizes with the free tickets resulting leader, participant, and presenter in a 3.5 percent reduction in prize at numerous industry events for Goodwin was faced with her payouts (from 69 percent to 65.5 NASPL, and the Northwest Quad biggest challenge in FY’09 percent.) State Sales Conferences, of which he when a legislative mandate was instrumental in establishing. In from Kentucky’s General Thanks to her outstanding efforts, addition, he has been an effective Assembly required the KLC to the KLC not only weathered the presenter representing Idaho return 28 percent of sales to the storm but thrived in spite of it. Lottery issues before the State’s Commonwealth in the form of Even in light of the signifi cant Legislature. profi ts in FY09 and FY10. This was challenges placed on us – and with set to be no small feat as the KLC the economic downturn in full His leadership in product returned 24.4 percent in FY08 and swing – the KLC was able to realize development and sales has led to 26.4 percent in FY07. instant ticket sales of $506 million in nine straight years of records sales FY ’09 (as of June 12th), which was and dividends in Idaho. To reach this percentage return 8 percent more than the previous mandate, KLC management was fi scal year and 4.6 percent more Helppie is an invaluable resource forced to perform a top-to-bottom than quota, and which based on the and member of the Idaho Lottery review of all operations and actions. fi rst three quarters’ reports for FY09 leadership team. Numerous steps were taken, ranked in the top fi ve performing including a reduction in force U.S. lotteries. (approximately 15 percent of the KLC’s workforce was let go), the Goodwin is extremely well-liked closing of a regional offi ce, and a cut by her team and co-workers, and in retailer incentives. Add to this has clearly demonstrated all the the worst economic climate in the makings of a leader within the corporation’s history, and you can scratch-off product line, and the see the challenges we faced. lottery industry.

<<<<<<<<<<<<<<<<<<<< Lotter Lotteryy Insights Insights - Se - ptemberOctober 2009 2733 force for needed technological and business solutions. Under transformation at the Lottery Jones forward-thinking leadership, since joining the team in 2005 as the Lottery launched a new the Program Manager for System Intranet Portal and incorporated Architecture and Development. an interactive business intelligence His exceptional performance, dashboard into the Home Page in vision, and sustained achievements December 2008. This brought the resulted in his being promoted power of BI to the desktop of every to the position of IT Director. Lottery staff member, achieving Julie Johnson Jones never rested on his laurels; Jones goal of democratization of Instant Product Manager under his leadership, the D.C. information.” Illinois Lottery Lottery made an investment in advanced decision support and His dedication and commitment analysis tools. In the summer of are evidenced by the success of ulie Johnson has an eye for detail. 2008, he created and managed a the Lottery’s business intelligence Much of her experience prior to cross-departmental project team, initiatives. His project successes joiningJ the promotions department called the DC Lottery Business have inspired him to reach higher. was spent in Internal Audits and Intelligence – Center of Excellence He is already developing aggressive Data Input, two areas where detail (BI-COE). Through the BI-COE, project plans for FY 2010. Jones is key. She carries that experience the Lottery’s business intelligence motivates his staff and inspires with her to the promotions depart- initiatives are aligned with strategic other lottery staff and industry ment and the results of her efforts objectives, which provided the colleagues. In April 2009, he are apparent. She also is a wealth capacity for data mining and presented on the topic of business of information and you often hear analysis. Utilizing the Center of intelligence at an annual lottery people in the offi ce saying, “ask Excellence model, Jones gained industry symposium. His superior Julie, I’ll bet she knows.” valuable insight into the critical technical skills gleaned from business needs of the Marketing twenty-nine years of experience in Johnson’s formal appointment as and Sales Departments. The information systems is indeed an Instant Product Manager for the Marketing and Sales Departments asset to the D.C. Lottery and the Illinois Lottery in 2008 is a testa- have directly benefi ted from the BI- industry as he willingly shares and ment to her hard work and dedica- COE. Moving beyond spreadsheets, assists whenever and wherever tion. Throughout her tenure with the Lottery’s Marketing Research requested. Instant Products she has not only Analyst uses advanced BI tools performed her assigned duties in for sales forecasting and analysis, admirable fashion, but has also game sale summary and product gone beyond what’s required in or- profi tability, and market and der to improve inventory manage- what-if analysis. The Lottery’s ment and billing practices, develop Strategic Development Specialist appealing ticket graphics and play uses advanced BI tools for in-depth styles, and help grow Illinois sales analysis of the Scratcher Lottery instant ticket sales to more game portfolio. BI execution than $1.1 billion. reduced costs by 15 percent and time-to-market by 25 percent, as Mike Lang well as increased sales and $5 Public Information Offi cer Scratcher profi tability by 25 percent Illinois Lottery -- outstanding accomplishments during an economic downturn! ike Lang is a great team player Not satisfi ed with just the small and provides a tremendous cadre of BI enthusiasts within amountM of experience to the Public the BI-COE, Jones continually Information Offi ce (PIO). He always promotes the culture of evidence- “jumps right in” to help when the Bruce L. Jones based decision making with workload for PIO operators gets Director, Information Technology business intelligence throughout the heavy. In addition to his “always D.C. Lottery & Charitable Games Lottery. His vast knowledge and helpful” attitude, Lang also pro- Control Board understanding of the operational vides great counsel on our daily and transactional databases allows messaging. ruce Jones, Director of him to garner broader staff support Information Technology at the and utility of BI through the Lang writes the messages that are D.C.B Lottery, has been a driving provision of accelerated analysis seen on our ITDM machines and

3428 LotteryLottery Insights Insights - -October October 2009 2009 >>>>>>>>>> >>>>>>>>>> also what is read during the morn- review of all operations and actions. swing – the KLC was able to realize ing drive announcements. He is Numerous steps were taken, instant ticket sales of $506 million in very clever with his wording and including a reduction in force FY ’09 (as of June 12th), which was always fi nds a way to get all of our (approximately 15 percent of the 8 percent more than the previous points out even when there is a KLC’s workforce was let go), the fi scal year and 4.6 percent more crunch for space. closing of a regional offi ce, and a cut than quota, leading to a 14 percent in the retailer incentive plan. increase in sales since she came on- Lang is a vital part of the Lottery’s board. operations in many ways, none Add to this the worst economic more important than being able to climate in the corporation’s history, The work of Pam Lee in helping successfully work on many projects and you can see the challenges that the Kentucky Lottery achieve at once. Even though Lang shows were faced. record sales in light of what could this fl exibility and initiative, he have been a disastrous mandate never compromises on quality. In The most sweeping change from was invaluable. Lee’s work has fact, his duties include management a player standpoint was the directly helped young people in our of the quarterly retailer newsletter, introduction of free tickets as prizes state realize the dream of higher Retailer Focus. He also contributes for our scratch-off tickets. This had education, as our proceeds go to articles to other parts of the Depart- never been done in Kentucky, or any college scholarships and grants. ment of Revenue. Though he solicits U.S. lottery several years after the These young people were counting stories, arranges them in a workable introduction of instant tickets, and on the KLC – and in turn Lee – to go layout and incorporates the neces- carried with it huge risks as scratch- to college, and we succeeded. sary graphics, he never forgets the offs had consistently led sales other aspects of his job. He always growth for several years. Scratch- comes through. Off sales for FY’08 were $486.4 million which was 6.2 percent over prior year.

Lee successfully led the KLC and Scientifi c Games teams through the challenging time when legislative mandate was issued just weeks before the start of the fi scal year which meant that dozens of game Bob Little working papers and prize structures Vice President, Sales Pam Lee had to be changed. She steered the Kentucky Lottery Corporation team through the re-work process to Regional Director change 25 games over a very short Scientifi c Games time period without deviating from ob Little came to The Kentucky the strategic guidelines, losing press Lottery and the lottery industry 14 year industry veteran, Pam time or missing delivery dates. 14B years ago after extensive work Lee began her work with The with the Brown & Williamson KentuckyA Lottery (KLC) two years Keep in mind that as Lee was doing Tobacco Corporation as Regional ago. She couldn’t have come to the yeoman’s work, Kentucky wasn’t Vice President of Sales. organization in a more tumultuous the only client she serviced. In time. addition to her efforts in Kentucky, For many years into Little’s tenure, she was simultaneously working the KLC rolled along, posting Less than a year into her for two of the world’s top instant modest annual sales growth tenure, a legislative mandate ticket selling lotteries: Ranked # 2 and increasing profi ts due to from Kentucky’s General in North American sales volume, consistently looking for ways to Assembly required the KLC to Massachusetts ($3.06 billion in do business in a more effi cient return 28 percent of sales to the instant sales) and ranked #3 in manner. All of that changed last Commonwealth in the form of North American sales volume Texas year, starting one morning with a profi ts in FY09 and FY10. This was ($2.8 billion in instant sales). phone call coming from a concerned set to be no small feat as the KLC legislative staffer at the state capital. returned 24.4 percent in FY08 and Thanks to Lee’s outstanding efforts, 26.4 percent in FY07. the KLC not only weathered the Unbeknownst to anyone at the KLC, storm but thrived in spite of it. a legislative mandate concerning To reach this percentage return Even in light of the signifi cant lottery proceeds had been placed mandate, KLC management was challenges placed on us – and with into the state budget by Kentucky’s forced to perform a top-to-bottom the economic downturn in full General Assembly. After several

<<<<<<<<<< Lottery Insights - October 2009 35 versions of the budget were 8 percent increase over the previous wealth of experience with others debated, the fi nal draft required the fi scal year and 4.6 percent more across the Lottery. KLC to return 28 percent of sales to than quota for FY09. the Commonwealth in the form of Though Masterhan works in the profi ts in FY09 and FY10. This was Many at the Lottery simply refer Sales Division, her work affects set to be no small feat as the KLC to him as “Smilin’ Bob”, and he every person in Lottery. When returned 24.4 percent in FY08 and called this by everyone from the reports are accurate and on time, 26.4 percent in FY07. warehouse staff to the retailers not only does the Sales Division to the chairman of the board of work smoothly, but so does the To reach this percentage return directors. other administrative areas. She mandate, KLC management was deserves to be recognized for not forced to perform a top-to-bottom In light of amazing challenges only the above mentioned qualities, review of all operations and actions. – some of which could have but also because she loves what she As is typically the case when a proven disastrous – Little never does. business in any sector is forced to stopped smiling. His encouraging do more with less, the sales and demeanor, his consistently positive marketing department was included outlook, and his willingness to in the focus of our cost-savings never give up helped the Kentucky efforts. The news across the board Lottery turn in yet another year of was not good, in a single afternoon record sales. Additionally, Little approximately 15 percent of the was also recovering from diffi cult KLC’s workforce was let go. back surgery with signifi cant complications from the earlier As a result of the changes Little spring (2008). was asked to implement were some of the most sweeping of them all. His work has directly helped young John Melton He lost 10 of the 25 staff members people in our state realize the dream Managing General Council through layoffs. One regional of higher education, as our proceeds West Virginia Lottery sales offi ce was closed and the go to college scholarships and staffi ng of the remaining four was grants. These young people were reduced, as was the central offi ces counting on the KLC – and in turn ohn Melton has been nominated sales department. A program to Bob Little– to go to college, and we for his Legislative drafting that substitute free tickets for low-tier succeeded. savedJ jobs and increased revenue, instant ticket prizes was established rulemaking ability that avoided for the fi rst time in Kentucky litigation, and legal prowess and Lottery history, resulting in a $50 problem solving that benefi ted million reduction in cash prizes many. and a 3.5 percent (from 69 percent to 65.5 percent) reduction in prize In the past year, Melton, like in the payouts. Also, Little had the not-so- past, has been the foundation of the enviable task of getting our retailer West Virginia Lottery, providing partners on board with a plan that daily counsel relating to each and would cut the maximum additional every aspect of this unprecedented incentive plan compensation by lottery. Melton coordinates all approximately 40 percent from 2 Lorie Masterhan commission meetings and each percent to 1.25 percent. Add to this Executive Secretary II agenda, presents issues before the the worst economic climate in the Illinois Lottery Commission, and advises it on corporation’s history, and you can the most appropriate course of see the challenges were faced. action. He represents the Lottery in ost people see the end result administrative hearings, works with Thanks in large part to Little’s and of all the hard work that goes the Attorney General’s Offi ce when the Sales Department’s outstanding towardM making the Lottery fun and a case is appealed, and assists in efforts, the KLC not only weathered exciting for out players. As we all the defense of the Lottery Director the storm but thrived in spite of know, quite a bit of work goes into and Commissioners in federal court it. Even in light of the signifi cant the “back of the house” operations. regarding the Lottery’s ability to challenges placed on us – and Lorie Masterhan is one of the people deny licenses on certain grounds. with the economic downturn in that stands out and makes everyone Additionally, he provides an full swing – the KLC was able to else look good in the process. She incredible range of legal advice to realize instant ticket sales of $506 makes sure that reports are timely all Lottery employees on a day-to- million through June 12, which was and accurate and readily shares her day basis.

36 Lottery Insights - October 2009 >>>>>>>>>> Melton is the “institutional Lottery unit. Porto brought energy, mission to raise revenue for the ser- memory” of the West Virginia enthusiasm and dedication to her vices and programs supported by Lottery and in some respects the role as a Field Representative. the General Fund with its promise State of West Virginia. He can cite Earning recognition for her efforts to support responsible play initia- most laws from memory and then to problem-solve and attention to tives is a challenge Porto faces and eloquently explain the reasoning detail, Porto quickly became a “go- embraces. As a part of the Connecti- behind each aspect of why and how to” person for many of the Lottery’s cut Lottery Corporation Speaker’s it was written. His knowledge of managers. Bureau, Porto is proud to share the his craft and his ability to resolve Lottery’s vision and action plan diffi cult issues has been relied upon Her strong leadership and op- with citizens across not only by the Lottery, but also by erational skills have allowed her the state. the Department of Revenue and the to pursue opportunities in the Governor of West Virginia. Sales, Retailer Services, Marketing, Porto’s goal has always been to Administration, and most notably, create a lottery for which the state Unequivocally, John R. Melton has the Operations area of the busi- and its stakeholders can be proud. been not only amassed a litany of ness. Within each of these areas, her She brings projects from concept to admirable accomplishments in the contributions have been integral reality with diligence, professional- past year, but he has also continued to the success and advancement of ism, and with a high level of respect to exhibit that he is, in fact, a the agency mission to maximize for those persons with whom she priceless asset to the West Virginia revenues for the state. interacts. Lottery, the State of West Virginia, and to the lottery industry as a Tapped to lead the corporation’s whole. RFP process for the implementa- tion of a new technology system, Barbara became immersed in every facet of the $40 million initiative. Working tirelessly, she dedicated immeasurable amounts of personal time to ensure that due diligence had been done. Seeking solutions to every possible problem and its solu- tion, she challenged herself, her staff and the vendors to excellence. For more than a year prior to the release of the RFP, she coordinated a Barbara A. Porto program of diligence, working with Vice President, Operations consultants, legal, sales, fi nance, and Administration warehousing, DOSR, marketing and Corporation resources offi cials to ensure that the RFP was detailed, defendable and arbara Porto’s tenure with the comprehensive. Lottery has spanned 37 years, duringB which time her dedication The meticulous planning and at- to excellence has never waivered. tention to detail shown by Porto Though her career has included ensured a review and successful se- many signifi cant achievements, she lection process that excelled. Porto’s has been nominated for the hard knowledge of Lottery Operations work and commitment exhibited gained from a lifetime of service during the development, awarding has served both she and the Lottery and implementation of an RFP that well. Today, the Connecticut resulted in this organization’s most Lottery Corporation has a state-of- comprehensive and challenging the-industry system, designed to system conversion ever in 2008. allow the organization the op- portunity to grow as needed and Porto has been a valued and re- required. In 1999, she committed spected member of Connecticut’s herself to issues of responsible play, Lottery business since 1972, when and was a part of the founding team she joined Division of Special for the Connecticut Partnership for Revenue (DOSR) as one of the fi rst Responsible Gambling. Working to employees of the newly created ensure the balance of the Lottery’s

<<<<<<<<<< Lottery Insights - October 2009 37 This Years Exhibiting Vendors

38 Lottery Insights - October 2009 >>>>>>>>>> AdMart Gambling Compliance 213 W. Main Street 91 Waterloo Road Danville, KY 40422 London, UK 5E1 8RT 800-354-2102 44 207 921 9980 Booth #129 Booth #123 Alchemy3 Go Plastics LLC 1725 Windward Concourse, Ste. 150 515 Brown Industrial Pkwy Alpharetta, GA 30005 Canton, GA 30114 770-442-6993 770-345-0535 Booth #107 Booth #174 Bally Technologies GTECH Corporation 6601 S Bermuda Rd. 10 Memorial Blvd. Las Vegas, NV 89119 Providence, RI 02903 702-584-7744 401-392-7489 Booth #127 Booth #133

Betware IGT Holtasmari 1 6355 S. Buffalo Dr. Kopavogur, Iceland 201 Las Vegas, NV 89113 48226375761 702-896-8795 Booth #172 Booth #131 Bruce Lawrence Promotions, Inc. IMAGENation Promotional Group 2970 Maria Ave., #212 2720 N. May Avenue Northbrook, IL 60062 Oklahoma City, OK 73107 847-564-8669 405-917-5766 Booth #105 Booth #160 Carmanah Signs InfoTek Research Group #4 203 Harbour Rd. 2010 West Lincoln Ave., Suite #2 Victoria British Columbia Yakima, WA 98902 Canada V9A 3S2 504-249-9182 250-412-8321 Booth #121 Booth #171 International Gamco Diamond Game 9335 North 48th St. 9340 Penfi eld Ave. Omaha, NE 68152 Chatsworth, CA 91311 800-524-2626 818-727-1690 Booth #170 Booth #159 INTRALOT SA Elsym Consulting, Inc. 64 Kifi ssias Ave. & 3 Premetis St. Two Barrett Lakes Ctr, Athens , Greece 1825 Barrett Lakes Blvd, Ste. 260 151 25 Kennesaw, GA 30144 011-30210-6156000 770-590-7400 Booth #145 Booth #164 Ipsos FillBoard Media 600, 635 8th Ave. SW 6669 Peachtree Industrial Blvd., Unit F Calgary, Alberta Canada T2P 3M3 Norcross, GA 30092 250-541-0755 770-441-0778 Booth #169 Booth #115 J & S Gaming Foster & Freeman USA 12 May Hill Lane 46030 Manekin Plaza #170 Dix Hills, NY 11746 Sterling, VA 20166 516-655-6926 888-445-5048 Booth #177 Booth #175

<<<<<<<<<< Lottery Insights - October 2009 39 Lapis Software Assoc. Pollard Banknote 601 Jefferson Rd., Suite 101 1499 Buffalo Place Parsippany, NJ 07054 Winnipeg, Manitoba 973-884-4006 Canada R3T 1L7 Booth #168 204-474-2323 Booth #151 Media 5 900 Lilibridge St. Schafer Systems Peckville, PA 18452 1000 Flag Road 570-489-6400 Adair, IA 50002 Booth #158 800-222-4489 Booth #119 MGT Lottery, LLC 212 W. Kinzie, 4th Floor Scientifi c Games Chicago, IL 60654 1500 Bluegrass Lakes Parkway 877-785-2483 Alpharetta, GA 30004 Booth #152 770-663-6816 Booth #139 Millionaire Greetings 11063 Haystack Drive Szrek2Solutions Whitmore Lake, MI 48189 60 Spencer Ave. 248-842-8400 East Greenwich, RI 02818 Booth #165 401-398-0395 Booth #167 NASPL ’10 Host Michigan Bureau of State Lottery Take-A-Ticket, Inc. P.O. Box 30023 130 NE Montgomery Street 101 East Hillsdale Albany, OR 97321 Lansing, MI 48909 800-253-4295 Booth 157 Booth #111 Mobilotto Systems The Research Intelligence Group 20 Toronto St., Suite 460 275 Commerce Drive, Suite 110 Toronto, Ontario Canada M5C 2B8 Fort Washington, PA 19034 866-318-2888 215-643-8744 Booth #163 Booth #104

National Council on Problem Gambling TNS 730 11th St, NW, Suite 601 500 W. Monroe, Suite 2710 Washington, DC 20001 Chicago, IL 60657 Tel: 202.547.9204 312-575-2140 Booth #176 Booth #173 NASPL ’09 Host Tournament One Oklahoma Education Lottery 700 Canal St. 3817 North Santa Fe Stamford, CT 06902 Oklahoma City, OK 73118 203-504-8832 Booth #153 & 155 Booth #162 OrderPad Software, Inc 174 Hudson St., 4th Floor New York, NY 10013 212-625-6642 Booth #113

40 Lottery Insights - October 2009 >>>>>>>>>> NASPL Member Lotteries

ARIZONA LOTTERY COLORADO LOTTERY Jeff Hatch-Miller, Executive Director Jack Boehm, Director 4740 E.UNIVERSITY 212 WEST 3RD ST, SUITE 210 PHOENIX, ARIZONA 85034 PUEBLO, COLORADO 81003 TEL: (480) 921-4400 TEL: (719) 546-5200 (Pueblo) FAX: (480) 921-4488 TEL: (303)759-3552 (Denver) www.arizonalottery.com FAX: (719) 546-6847 (Pueblo) www.coloradolottery.com

ARKANSAS LOTTERY CONNECTICUT LOTTERY CORP. Ernie Passailaigue, Executive Director Anne M. Noble, President & CEO PO BOX 3238 777 BROOK STREET LITTLE ROCK, AR 72203-3238 ROCKY HILL, CT 06067 TEL: (501) 683-2000 TEL: (860) 713-2800 FAX: FAX: (860) 713-2805 www.ctlottery.org

ATLANTIC LOTTERY CORPORATION Michelle Carinci, President/CEO Wayne Lemons, Director P.O. BOX 5500 1575 MCKEE ROAD, SUITE 102 922 MAIN STREET DOVER, DELAWARE 19904 MONCTON, NEW BRUNSWICK TEL: (302) 739-5291 E1C 8W6 CANADA FAX: (302) 739-6706 TEL: (506) 867-5800 www.delottery.com FAX: (506) 867-5881 www.alc.ca

D.C. LOTTERY & CHARITABLE BRITISH COLUMBIA LOTTERY GAMES CONTROL BOARD CORPORATION Jeffrey Young, Executive Director Michael Graydon, President & CEO 2101 MARTIN LUTHER KING JR. Jim Lightbody, Vice President Lottery Gaming AVE. S.E. 74 WEST SEYMOUR STREET WASHINGTON, DC 20020 KAMLOOPS, BRITISH COLUMBIA TEL: (202) 645-8000 V2C 1E2 CANADA FAX: (202) 645-3683 TEL: (250) 828-5508 www.dclottery.com FAX: (250) 828-5637 www.bclc.com

FLORIDA LOTTERY CALIFORNIA LOTTERY Leo DiBenigno, Secretary Joan, Borucki, Director 250 MARRIOTT DRIVE 600 NORTH TENTH STREET TALLAHASSEE, FLORIDA 32301- SACRAMENTO, CALIFORNIA 95814 4002 TEL: (916) 323-7095 TEL: (850) 487-7777 FAX: (916) 323-7087 FAX: (850) 487-7709 www.calottery.com www.fl alottery.com

<<<<<<<<<< Lottery Insights - October 2009 41 GEORGIA LOTTERY KENTUCKY LOTTERY CORPORATION CORPORATION Margaret R. DeFrancisco, President & Arch Gleason, President & CEO CEO 1011 WEST MAIN STREET INFORUM, SUITE 3000 LOUISVILLE, KENTUCKY 40202- 250 WILLIAMS STREET 2623 ATLANTA, GEORGIA 30303-1042 TEL: (502) 560-1500 TEL: (404) 215-5000 FAX: (502) 560-1532 FAX: (404) 215-8871 www.kylottery.com www.galottery.com

LOTERIA ELECTRONICA IDAHO LOTTERY Jose Lopez Rivera, Deputy Secretary Jeff Anderson, Director Director 1199 SHORELINE LANE, SUITE 100 FUNDACION ANGEL RAMOS BLDG, P.O. BOX 6537 SUITE 107 BOISE, IDAHO 83707-6537 383 AVE. ROOSEVELT TEL: (208) 334-2600 SAN JUAN, PUERTO RICO 00918- FAX: (208) 334-2610 2131 www.idaholottery.com TEL: (787) 764-9129 FAX:( 787) 767-1678 www.loteriaelectronicapr.com ILLINOIS LOTTERY Jodie Winnett, Acting Superintendent 100 WEST RANDOLPH, SUITE 7-274 LOTERIA NACIONAL PARA LA CHICAGO, ILLINOIS 60601 ASISTENCIA PUBLICA TEL: (312) 793-3026 PLAZA DE LA REFORMA 1 FAX: (312) 793-5514 06037 MEXICO DF www.illinoislottery.com TEL: 011-52 55 51 40 7010 FAX: 011-52 55 51 40 7026 www.lotenal.gob.mx

INDIANA (HOOSIER) LOTTERY Kathryn Densborn, Executive Director PAN AM PLAZA 201 SOUTH CAPITOL AVE., SUITE LOTO-QUÉBEC 1100 Alain Cousineau, Chairman & Chief INDIANAPOLIS, INDIANA 46225 Executive Offi cer TEL: (317) 264-4800 Robert Ayotte, President, Operations FAX: (317) 264-4908 Lottery www.hoosierlottery.com P.O. BOX 2000 500 SHERBROOKE STREET WEST MONTREAL, QUEBEC IOWA LOTTERY AUTHORITY H3A 3G6 CANADA Terry Rich, President & CEO TEL: (514) 282-8000 2323 GRAND AVENUE FAX: (514) 873 -8999 DES MOINES, IOWA 50312 www.loto-quebec.com TEL: (515) 725-7900 FAX: (515) 725-7882 www.ialottery.com LOUISIANA LOTTERY CORPORATION Rose Hudson, President & CEO KANSAS LOTTERY 555 LAUREL STREET Ed Van Petten, Executive Director BATON ROUGE., LOUISIANA 70801 128 NORTH KANSAS AVENUE TEL: (225) 297-2000 TOPEKA, KANSAS 66603 FAX: (225) 297-2005 TEL: (785) 296-5700 www.louisianalottery.com FAX: (785) 296-5712 www.kslottery.com

42 Lottery Insights - October 2009 >>>>>>>>>> MAINE STATE LOTTERY Dan A. Gwadosky, Director Larry Jansen, Executive Director 10 WATER STREET MAIL: P.O. BOX 1603 HALLOWELL, ME 04347 JEFFERSON CITY, MO 65102-1603 MAILING: #8 STATE HOUSE 1823 SOUTHRIDGE DRIVE STATION JEFFERSON CITY, MISSOURI 65109 AUGUSTA, ME 04333-0008 TEL: (573) 751-4050 TEL: (207) 287-3721 FAX: (573) 522-1630 FAX: (207) 287-6769 www.molottery.com www.mainelottery.com

MONTANA LOTTERY MARYLAND STATE LOTTERY George Parisot, Director Buddy Roogow, Executive Director 2525 NORTH MONTANA MONTGOMERY PARK BUSINESS HELENA, MONTANA 59601-0542 CENTER TEL: (406) 444-5825 1800 WASHINGTON BLVD. , FAX. (406) 444-5830 SUITE 330 www.montanalottery.com BALTIMORE, MARYLAND 21230 TEL: (410) 230-8800 FAX: (410) 230-8728 www.mdlottery.com Jim Haynes, Director P.O. BOX 98901 MASSACHUSETTS STATE LOTTERY 1800 “O” Street, Suite 101 COMMISSION LINCOLN, NEBRASKA 68509-8901 Mark Cavanagh, Executive Director TEL: (402) 471-6100 60 COLUMBIAN STREET FAX: (402) 471-6108 BRAINTREE, MASSACHUSETTS www.nelottery.com 02184 TEL: (781) 849-5555 FAX: (781) 849-5546 NEW HAMPSHIRE LOTTERY www.masslottery.com COMMISSION Rick Wisler, Executive Director P.O. BOX 1208 MICHIGAN BUREAU OF STATE CONCORD, NEW HAMPSHIRE LOTTERY 03302-1208 Scott Bowen, Commissioner 14 INTEGRA DRIVE P.O. BOX 30023 CONCORD, NEW HAMPSHIRE 101 EAST HILLSDALE 03301 LANSING, MICHIGAN 48909 TEL: (603) 271-3391 TEL: (517) 335-5600 FAX: (603) 271-1160 FAX:(517) 335-5651 www.nhlottery.org www.michigan.gov/lottery

NEW JERSEY LOTTERY William Jourdain, Acting Director MAILING: P.O. BOX 041 Clint Harris, Exec. Director TRENTON, NEW JERSEY 08625-0041 2645 LONG LAKE ROAD ONE LAWRENCE PARK COMPLEX ROSEVILLE, MINNESOTA 55113-2533 BRUNSWICK CIRCLE TEL: (651) 635-8100 LAWRENCEVILLE, NEW JERSEY FAX: (651) 297-7496 08648 www.mnlottery.com TEL: (609) 599-5800 FAX: (609) 599-5935 www.njlottery.net

<<<<<<<<<< Lottery Insights - October 2009 43 NEW MEXICO LOTTERY ONTARIO LOTTERY AND Tom Romero, Chief Executive Offi cer GAMING P.O. BOX 93130 Greg McKenzie, Sr. VP Lottery ALBUQUERQUE, NEW MEXICO 4120 YONGE STREET, SUITE 420 87199-3130 TORONTO, ONTARIO 4511 OSUNA ROAD N.E. M2P 2B8 CANADA ALBUQUERQUE, NEW MEXICO TEL:(416) 224-1772/FAX:(416) 224-7106 87109 www.olgc.ca TEL: (505) 342-7600 FAX: (505) 342-7512 www.nmlottery.com Dale Penn, Director P.O. BOX 12649 SALEM, OREGON 97309 Gordon Medenica, Director 500 AIRPORT ROAD S.E. 1 BROADWAY CENTER SALEM, OREGON 97301 P.O. BOX 7500 TEL: (503) 540-1000 SCHENECTADY, NEW YORK 12301- FAX: (503) 540-1001 7500 www.oregonlottery.org TEL: (518) 388-3300 FAX: (518) 388-3403 www.nylottery.org PENNSYLVANIA LOTTERY Ed Trees, Executive Director NORTH CAROLINA LOTTERY 1200 FULLING MILL ROAD Thomas Shaheen, Executive Director MIDDLETOWN, PENNSYLVANIA 2100 YONKERS RD. 17057 RALEIGH, NC 27604-2255 TEL: (717) 702-8000 TEL: (919) 301-3300 FAX: (717) 702-8024 FAX: (919) 715-8833 www.palottery.com www.nc-educationlottery.org

RHODE ISLAND LOTTERY Gerald S. Aubin, Executive Director 1425 PONTIAC AVENUE Randall Miller, Director CRANSTON, RHODE ISLAND 02920 600 EAST BOULEVARD AVE - DEPT TEL: (401) 463-6500 125 FAX: (401) 463-5669 BISMARCK, NORTH DAKOTA 58505- www.rilot.com 0040 TEL: (701) 328-1574 FAX: (701) 328-1580 SOUTH CAROLINA EDUCATION www.ndlottery.org LOTTERY Paula Harper-Bethea, Acting Executive THE Director Kathleen Burke, Executive Director 1333 MAIN STREET, SUITE 400 615 WEST SUPERIOR AVENUE COLUMBIA, SOUTH CAROLINA CLEVELAND, OHIO 44113-9885 29201 TEL: (216) 787-3200 TEL: (803) 737-2002 FAX: (216) 787-3313 FAX: (803) 737-2005 www.ohiolottery.com www.sceducationlottery.com

OKLAHOMA EDUCATION LOTTERY Norman Lingle, Director Jim Scroggins, Executive Director MAILING: P.O. BOX 7107 3817 NORTH SANTE FE PIERRE, SOUTH DAKOTA OKLAHOMA CITY, OK 73118 57501-7107 Tel: 405-521-0520 207 EAST CAPITOL, SUITE 200 Fax: 405-521-0528 PIERRE, SOUTH DAKOTA 57501 www.lottery.ok.gov TEL: (605) 773-5770 FAX: (605) 773-5786 www.sdlottery.org 44 Lottery Insights - October 2009 >>>>>>>>>> TENNESSEE EDUCATION LOTTERY WASHINGTON’S LOTTERY CORP. Christopher Liu. Director Rebecca P.Hargrove, President & CEO 814 E. 4TH AVENUE PLAZA TOWER, METROCENTER OLYMPIA, WASHINGTON 98506 200 ATHENS WAY, SUITE 200 P.O. BOX 43000 NASHVILLE, TN 37228 OLYMPIA, WASHINGTON 98504- TEL:(615) 324-6500 3000 FAX:(615) 324-8002 TEL: (360) 664-4800 www.tnlottery.com FAX: (360) 586-1039 www.walottery.com

TEXAS LOTTERY COMMISSION WEST VIRGINIA LOTTERY Gary Grief, Deputy Executive Director John C. Musgrave, Director 611 EAST SIXTH STREET 312 MACCORKLE AVENUE S.E. AUSTIN, TEXAS 78701 CHARLESTON, WEST VIRGINIA MAILING: P.O. BOX 16630 25314 AUSTIN, TEXAS 78761-6630 MAILING: P.O. BOX 2067 TEL: (512) 344-5000 CHARLESTON, WEST VIRGINIA FAX: (512) 478-3682 25327 www.txlottery.org TEL: (304) 558-0500 FAX: (304) 558-3321 www.wvlottery.com

VERMONT LOTTERY COMMISSION Alan R. Yandow, Executive Director WESTERN CANADA LOTTERY 1311 US RTE. 302 - SUITE 100 CORP. BARRE, VERMONT 05641 David Loeb, President TEL: (802) 476-0100 10TH FLOOR, 125 GARRY STREET FAX: (802) 479-4294 WINNIPEG, MANITOBA www.vtlottery.com R3C 4J1 CANADA TEL: (204) 942-8217 FAX: (204) 946-1442 www.wclc.com VIRGINIA LOTTERY Paula I Otto, Executive Director 900 E. MAIN STREET RICHMOND, VIRGINIA 23219 TEL: (804) 692-7000 Michael J. Edmonds, Director FAX: 804) 692-7102 2135 RIMROCK ROAD, SUITE #231 www.valottery.com MADISON, WISCONSIN 53713 MAIL: P.O. BOX 8941 MADISON, WISCONSIN 53708-8941 TEL: (608) 261-8800 VIRGIN ISLANDS LOTTERY FAX: (608) 264-6644 Conrad Francois, Acting Exec. Dir. www.wilottery.com 8A ROSS ESTATE BARBEL PLAZA ST. THOMAS, U.S.V.I. 00802 TEL: (340) 774-2502 FAX: (340) 776-4730 www.vilottery.org

<<<<<<<<<< Lottery Insights - October 2009 45 October 6 - 9, 2009 NASPL ’09 Annual Conference. Oklahoma City, Oklahoma.

NASPL EVENTS La Fleur’s NACS SHOW

May 17 - 22, 2010 November 9 - 12, 2009 October 20 - 23, 2009 Lottery Leadership La Fleur’s 2009 Conclave Las Vegas Convention Center Hosted by NASPL Loew’s Portofino Bay Hotel Las Vegas, Nevada Registration Fee @ $750 Orlando, Florida www.nacsonline.com

March 27 - 31, 2010 June 21 - 24, 2010 La Fleur’s 2010 Symposium NASPL Spring Directors Meeting Renaissance Mayflower Hotel Coeur d’ Alene, Idaho Washington, D.C. Hosted by the Idaho Lottery Coeur d’ Alene Golf & Spa Resort WLA

July 19 - 22, 2010 October 26-28, 2009 NASPL Legal, Warehouse, PR, World Meet 2009 Audit, Accounting, Security, CIBELAE / WLA Cooperation I.T. & Sales/Marketing Santiago de Chile Subcommittee Meeting Hosted by Polla Chilena de Madison, Wisconsin Beneficencia Hosted by Wisconsin Lottery Madison Concourse Hotel

September 22 - 24, 2010 OTHER EVENTS NASPL ’10 Annual Conference Grand Rapids, Michigan Global Gaming Expo (G2E) Hosted by the Michigan Bureau (www.globalgamingexpo.com) of State Lottery has reached an agreement with Amway Grand Plaza Hotel Las Vegas Convention Center J.W. Marriott Hotel officials that shifts dates for the show to November for the remainder of the decade. The change began in 2006.

Confirmed G2E dates through 2010 are:

• 2009 - November 17-19 • 2010 - November 16-18

46 Lottery Insights - October 2009 >>>>>>>>>> ��������� �����������